This instrument is the Carbon Credits (Carbon Farming Initiative—Electricity Generation from Landfill Gas) Methodology Determination Variation 2022.

This instrument commences on the day after it is registered.

3 Authority

This instrument is made under subsection 114(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

4 Schedules

The Carbon Credits (Carbon Farming Initiative—Electricity Generation from Landfill Gas) Methodology Determination 2021 is amended as set out in Schedule 1.

Schedule 1—Amendments

Carbon Credits (Carbon Farming Initiative—Electricity Generation from Landfill Gas) Methodology Determination 2021

[1] Section 5

Repeal the section, substitute:

5 Definitions

In this determination:

2015 LFG determination means the Carbon Credits (Carbon Farming Initiative—Landfill Gas) Methodology Determination 2015.

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

anaerobic digestion means a biological process in which organic matter is broken down by microorganisms in the absence of oxygen.

biogas means a mixture of gases including methane that is generated as a result of anaerobic digestion and includes landfill gas.

biogas source facility, in relation to a project, means a facility that supplies biogas to be treated as part of the project so as to produce biomethane and includes:

(a) a facility producing biogas for a project biomethane facility; and

(b) in cases where the biogas is produced at a project biomethane facility—that project biomethane facility.

Note: A biomethane facility can be its own biogas source facility if the biomethane facility also produces biogas to be treated by carrying out biomethane production.

biogas upgrading means the process by which biogas is refined and stripped of impurities to produce biomethane, which may include (but is not limited to):

(a) pre-treatment processing of biogas; or

(b) the drying or scrubbing of biogas; or

biogas upgrading system means a system of equipment that is capable of undertaking biogas upgrading.

biogas waste means putrescible organic waste material that can be treated through anaerobic digestion to produce biogas.

biomethane means a high-methane content gas that is:

(a) produced by biogas upgrading; and

(b) suitable for use as a natural gas substitute.

biomethane conversion and displacement project has the meaning given by section 12B.

biomethane displacement-only project has the meaning given by section 12C.

biomethane facility means a facility:

(a) at which biomethane production is undertaken or intended to be undertaken; and

(b) from which the resulting biomethane is sent, or is proposed to be sent, to an end use where it can reasonably be expected to be combusted within Australia as a natural gas substitute.

Note 1: If biogas upgrading occurs at the project landfill, the project landfill may also be a biomethane facility.

Note 2: Biomethane facilities that are used in a landfill gas (electricity generation) project that involve landfill gas capture for biomethane become known as project biomethane facilities.

Note 3: The section 22 application or section 128 application for a biomethane conversion and displacement project or a biomethane displacement-only project, and the section 22 application for a restarting biomethane conversion and displacement project or a restarting biomethane displacement-only project, must include details of at least one project biomethane facility (see paragraphs 13B(2)(d)).

biomethane production has the meaning given by subsection 8A(3).

carbon tax waste, in relation to a landfill, means waste that was deposited in the landfill between 1 July 2012 and 30 June 2014.

collection efficiency, of a landfill gas collection system at a landfill, means the proportion of landfill gas generated by the landfill that is collected and combusted by the landfill gas collection system, expressed as a percentage.

combustion device means:

(a) a flare, boiler or internal combustion engine that is operated in accordance with the manufacturer’s instructions; or

(b) a device:

(i) that combusts landfill gas with a destruction efficiency of at least 98%; and

(ii) that is operated in accordance with the manufacturer’s instructions; and

(iii) the combustion process of which is controlled using a monitoring and control system.

complete, in relation to the combustion of landfill gas or biomethane, is combustion with a destruction efficiency of 98% or more of the methane.

conversion abatement, in relation to a project, means the carbon dioxide equivalent net abatement amount for a reporting period (worked out in accordance with Division 2 of Part 4) attributable to the conversion of methane (CH4) to carbon dioxide (CO2) by carrying out:

(a) landfill gas capture for biomethane; or

(b) emissions destruction.

Note : Landfill gas capture for biomethane involves sending landfill gas to a biogas upgrading system to be turned into biomethane. This landfill gas is considered to have its methane component converted to carbon dioxide, as if it had been sent to a combustion device, because subsequent usage of the biomethane results in its combustion.

daily/operational cover, in relation to a landfill, means the area of the landfill normally covered by material used to cover a day’s deposition of waste in active landfill waste disposal areas of the landfill.

displacement abatement, in relation to a project, means the carbon dioxide equivalent net abatement amount for a reporting period (worked out in accordance with Division 3 of Part 4) attributable to biomethane production.

eligible biogas means:

(a) biogas produced from eligible biogas waste; or

(b) landfill gas.

eligible biogas waste means biogas waste that is:

(a) eligible animal effluent biogas waste within the meaning of the Carbon Credits (Carbon Farming Initiative—Animal Effluent Management) Methodology Determination 2019; or

(b) mixed solid waste within the meaning of the Carbon Credits (Carbon Farming Initiative—Alternative Waste Treatment) Methodology Determination 2015; or

(c) eligible organic material within the meaning of the Carbon Credits (Carbon Farming Initiative—Source Separated Organic Waste) Methodology Determination 2016; or

(d) domestic or commercial wastewater, or industrial wastewater, within the meaning of the Carbon Credits (Carbon Farming Initiative—Domestic, Commercial and Industrial Wastewater) Methodology Determination 2015.

Note : The proportion of eligible waste used to generate biogas to be treated by biomethane production within the project must be able to be determined.

emissions destruction has the meaning given by subsection 8A(4).

final cover, in relation to a landfill, means the area of the landfill normally covered by material used to cover previously active landfill waste disposal areas of the landfill that have reached final height and are unlikely to be used for waste disposal again.

forerunner project:

(a) in relation to a restarting biomethane conversion and displacement project—has the meaning given by paragraph 12D(1)(a); or

(b) in relation to a restarting biomethane displacement-only project—has the meaning given by paragraph 12E(a).

intermediate cover¸ in relation to a landfill, means the area of the landfill normally covered by material used to cover previously active landfill working areas that will not be used for waste disposal for an extended period of time (typically a few weeks to a few months).

landfill means a site where waste is or was buried under a permission (however described) given under the law of a State or Territory.

landfill gas means gas generated from anaerobic decomposition of biological material at a landfill.

landfill gas capture for biomethane has the meaning given by subsection 8A(2).

landfill gas collection system means a system to collect and combust landfill gas.

landfill gas (electricity generation) project has the meaning given by subsection 7(3).

monitoring and control system has the meaning given by section 5A.

monitoring requirements means the requirements set out in section 36.

National Inventory Report means the report of that name produced by Australia in fulfilment of its obligations under the Climate Change Convention and the Kyoto Protocol, as in force from time to time.

Note: In 2019, the National Inventory Report could be accessed from http://www.environment.gov.au.

natural gas means a substance that:

(a) is in a gaseous state at standard temperature and pressure; and

(b) consists of naturally occurring hydrocarbons, or a naturally occurring mixture of hydrocarbons and non-hydrocarbons, the principal constituent of which is methane; and

new project has the meaning given by section 9.

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

Note: In December 2021, the NGA Factors document could be viewed on the Department’s website (http://www.industry.gov.au).

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

non-biomethane project has the meaning given by section 12A.

non‑monitored period has the meaning given by subsection 37(1).

project activity means an activity of the type listed in subsection 8A(1).

project biomethane facility, in relation to a project that involves biomethane production, means a biomethane facility that is used in carrying out the project.

Note: The section 22 application or section 128 application for a biomethane conversion and displacement project or a biomethane displacement-only project, and the section 22 application for a restarting biomethane conversion and displacement project or a restarting biomethane displacement-only project, must include details of at least one project biomethane facility (see paragraph 13B(2)(d)).

project emissions means project emissions for the purposes of sections 32B and 32P.

project landfill, in relation to a project that involves emissions destruction or landfill gas capture for biomethane, means the landfill at which the project is carried out.

project sub-type means a project of the sub-type listed in subsection 8B(2).

project type means a project of the type listed in subsection 8B(1).

recommencing project has the meaning given by section 10.

regulatory guidelines for landfill means guidelines that:

(a) establish policy and regulatory requirements for sustainable waste management and landfill performance; and

(b) are applied by environment agencies and environmental protection agencies (including such agencies in States and Territories).

Note: These guidelines typically cover the topics of siting, design, management or operation of landfills.

relevant transitioning (upgrade) project means a transitioning (upgrade) project that applied the 2015 LFG determination before the commencement of the Carbon Credits (Carbon Farming Initiative—Landfill Gas) Methodology Determination Variation 2021.

restarting biomethane conversion and displacement project has the meaning given by section 12D.

restarting biomethane displacement-only project has the meaning given by section 12E.

section 22 application, in relation to an offsets project, means an application under section 22 of the Act to declare the project as an eligible offsets project under this determination.

section 128 application, in relation to an eligible offsets project, means an application under section 128 of the Act to apply this determination to the project.

sub‑facility zone has the same meaning as in section 5.22A of the NGER (Measurement) Determination.

transitioning project has the meaning given by section 12.

transitioning (continued) project has the meaning given by subsection 8B(3).

transitioning (new) project has the meaning given by subsection 8B(4).

transitioning (recommencing) project has the meaning given by subsection 8B(5).

transitioning (upgrade) project has the meaning given by subsection 8B(6).

upgrade project has the meaning given by subsection 11(1).

Note: Other words and expressions used in this determination have the meaning given by the Act. These terms include:

carbon abatement

carbon dioxide equivalent

crediting period

eligible carbon abatement

eligible offsets project

emission

greenhouse gas

offsets project

offsets report

project

project proponent

Regulator

reporting period.

[2] After section 5

Insert:

5A Meaning of monitoring and control system

(1) For this determination, a monitoring and control system for a flare, means a system that consists of:

(a) a monitoring system that detects the flame of a flare and monitors if the flare is operating at the manufacturer’s specifications for the complete combustion of methane; and

(b) an associated control system that shuts down landfill gas flow to the flare either when no flame is detected or when the flare is not operating at the manufacturer’s specifications for the complete combustion of methane.

Note: An example of a monitoring and control system for a flare is a flare management system that incorporates a UV detection sensor.

(2) For this determination, a monitoring and control system for a biogas upgrading system is a system that:

(a) monitors the flow rate of landfill gas and biomethane; and

(b) monitors the operation and output of biogas upgrading systems; and

(c) is capable of automatically stopping biogas flow to the biogas upgrading system if it is not operating at the manufacturer’s specification to enable biogas upgrading.

[3] Subsection 7(1)

Repeal the subsection, substitute:

(1) For paragraph 106(1)(a) of the Act, this determination applies to an offsets project in which either or both of the following occur, in a way that can be reasonably expected to result in eligible carbon abatement:

(a) landfill gas is collected and treated in a way that destroys methane; or

(b) landfill gas, with or without biogas produced from other biogas waste, is treated by biogas upgrading at a biomethane facility to produce biomethane which is then sent to an end use where it can reasonably be expected to be combusted within Australia as a natural gas substitute.

[4] Paragraph 7(2)(a)

Before “first determination”, insert “the”.

[5] Subsection 7(4)

Repeal the subsection.

[6] Section 8

Repeal the subsection, substitute:

Division 1—Operation of this Part

8 Operation of this Part

(1) For paragraph 106(1)(b) of the Act, Division 2 sets out the eligibility and project-specific requirements that must be met for each different type of landfill gas (electricity generation) project mentioned in section 7 to be an eligible offsets project.

(2) Division 3 specifies the information that is required to be included in a section 22 or section 128 application relating to a landfill gas (electricity generation) project.

(3) Division 4 sets out:

(a) for subparagraph 27(4A)(a)(ii) of the Act, requirements in lieu of the newness requirement for certain projects; and

(b) for subparagraph 27(4A)(b)(ii) of the Act, a requirement in lieu of the regulatory additionality requirement.

(4) For paragraph 69(3)(b) and subparagraph 70(3)(d)(ii) of the Act, Division 5 specifies the crediting period for a landfill gas (electricity generation) project.

Division 2—Project specific requirements

8A Project activities

(1) A landfill gas (electricity generation) project must include one or more of the following types of activities (which are called project activities in this determination):

(a) landfill gas capture for biomethane;

(b) biomethane production;

(2) Landfill gas capture for biomethane involves:

(a) collecting landfill gas; and

(b) sending that landfill gas to a biogas upgrading system that is part of a project biomethane facility.

Note: Conversion abatement from landfill gas capture for biomethane only occurs when biomethane produced from landfill gas as part of the project can reasonably be expected to be combusted within Australia as a natural gas substitute.

(3) Biomethane production involves:

(a) treating biogas, which includes landfill gas, by biogas upgrading to produce biomethane at a project biomethane facility, with or without biogas produced from other biogas waste; and

(b) sending the biomethane to an end use where it can reasonably be expected to be combusted within Australia as a natural gas substitute.

Note 1: Acceptable end uses may include sale and transport to a gas retailer or gas consumer, or on-site combustion for heat or power.

Note 2: Combustion of biomethane may occur on-site at the biomethane facility, or off-site if the biomethane is transported from the biomethane facility to an end user. This may be through injection into a gas distribution or transmission network, transport via road, or another gas transport mechanism.

(4) Emissions destruction involves:

(a) collecting landfill gas; and

(b) destroying the proportion of the biogas that is methane using a combustion device.

8B Project types and sub-types

(1) A landfill gas (electricity generation) project that is an eligible offsets project may be of one of the following types (which are called project types in this determination):

(a) a non-biomethane project;

(b) a biomethane conversion and displacement project;

(d) a restarting biomethane conversion and displacement project;

(e) a restarting biomethane displacement-only project.

(2) A non-biomethane project or a biomethane conversion and displacement project must be of one of the following types (which are called project sub-types in this determination):

(a) a new project;

(b) a recommencing project;

(d) a transitioning project;

(e) a transitioning (continued) project;

(f) a transitioning (new) project;

(g) a transitioning (recommencing) project;

(h) a transitioning (upgrade) project.

Note 1: Section 12D sets out which project sub-type a restarting biomethane conversion and displacement project is to be credited as, based on its forerunner project.

Note 2: The project sub-type is relevant for working out the baseline conversion abatement in accordance with Subdivision 4 of Division 2 of Part 4.

Note 3: Biomethane displacement-only projects and restarting biomethane displacement-only projects do not have project sub-types as the net abatement for these project types does not involve conversion abatement.

(3) If the Regulator approves a section 128 application for an eligible offsets project that was a transitioning project (within the meaning of the 2015 LFG determination) when the application was made, that project is a transitioning (continued) project (with effect from the start of the reporting period in which the application was made).

(4) If the Regulator approves a section 128 application for an eligible offsets project that was a new project (within the meaning of the 2015 LFG determination) when the application was made, that project is a transitioning (new) project (with effect from the start of the reporting period in which the application was made).

(5) If the Regulator approves a section 128 application for an eligible offsets project that was a recommencing project (within the meaning of the 2015 LFG determination) when the application was made, that project is a transitioning (recommencing) project (with effect from the start of the reporting period in which the application was made).

(6) If the Regulator approves a section 128 application for an eligible offsets project that was an upgrade project (within the meaning of the 2015 LFG determination) when the application was made, that project is a transitioning (upgrade) project (with effect from the start of the reporting period in which the application was made).

Note: Crediting for relevant transitioning (upgrade) projects would consider 2 years or, if data is available to the project proponent for that period, 3 years of previous data under section 32, if the project proponent does not have 4 years of previous data available.

8C Requirement for projects involving landfill gas capture for biomethane

A landfill gas (electricity generation) project that involves landfill gas capture for biomethane or emissions destruction may involve only one project landfill.

[7] Section 9 (heading)

Omit “a new project”, substitute “new projects”:

[8] Paragraph 9(b)

Repeal the paragraph, substitute:

(b) treat collected gas by emissions destruction or landfill gas capture for biomethane.

[9] Section 10 (heading)

Omit “a recommencing project”, substitute “recommencing projects”.

[10] Paragraph 10(b)

Repeal the paragraph, substitute:

(b) treat collected gas by emissions destruction or landfill gas capture for biomethane.

[11] Section 11 (heading)

Omit “an upgrade project”, substitute “upgrade projects”

[12] Paragraph 11(1)(c)

Repeal the paragraph, substitute:

[13] Section 12 (heading)

Omit “a transitioning project”, substitute “transitioning projects”.

[14] Paragraph 12(1)(b)

Repel the paragraph, substitute:

(b) treat collected gas by emissions destruction or landfill gas capture for biomethane.

[15] After section 12

Insert:

12A Requirements for non-biomethane projects

A non-biomethane project must involve the carrying out of emissions destruction.

Note: A non-biomethane project will only earn credits for the conversion abatement attributable to emissions destruction (see paragraph 17A(a)).

12B Requirements for biomethane conversion and displacement projects

A biomethane conversion and displacement project must:

(a) involve the installation of one or more biogas upgrading systems at a project biomethane facility; and

(b) if it involves landfill gas capture for biomethane, also involve biomethane production; and

Note: A biomethane conversion and displacement project will only earn credits for the conversion abatement attributable to landfill gas capture for biomethane and emissions destruction, and displacement abatement attributable to biomethane production (see paragraph 17A(b)).

12C Requirements for biomethane displacement-only projects

A biomethane displacement-only project must:

(a) involve the installation of one or more biogas upgrading systems at a project biomethane facility; and

(b) involve biomethane production; and

Note: A biomethane displacement-only project will only earn credits for the displacement abatement attributable to biomethane production (see paragraph 17A(c)). Such a project may also involve landfill gas capture for biomethane or emissions destruction, but no credits will be issued in relation to those project activities.

12D Requirements for restarting biomethane conversion and displacement projects

(1) A restarting biomethane conversion and displacement project:

(a) must occur at a project landfill that was part of an eligible offsets project (the forerunner project):

(i) that did not involve landfill gas capture for biomethane during its crediting period or periods; and

(ii) for which the applicable methodology determination was:

(A) this determination; or

(B) the Carbon Farming (Capture and Combustion of Methane in Landfill Gas from Legacy Waste) Methodology Determination 2012; or

(C) the Carbon Credits (Carbon Farming Initiative) (Capture and Combustion of Methane in Landfill Gas from Legacy Waste: Upgrade Projects) Methodology Determination 2012; or

(D) the 2015 LFG determination; or

(E) an earlier version of a determination referred to in sub-subparagraph (A) to (D) applicable in accordance with section 125, 126, 127 or 130 of the Act; and

(iii) the only or last crediting period for which has expired; and

(b) must involve the installation of one or more biogas upgrading systems at a project biomethane facility; and

(d) must have a crediting period greater than zero under section 16A.

Note: A restarting biomethane conversion and displacement project will only earn credits for conversion abatement attributable to landfill gas capture for biomethane and the displacement abatement attributable to biomethane production (see paragraph 17A(d)). Such a project may also involve emissions destruction, but no credits will be issued in relation to those project activities.

(2) If:

(a) a project is a restarting biomethane conversion and displacement project; and

(b) at the expiry of its forerunner project’s crediting period, the applicable methodology determination for the forerunner project was:

(i) this determination; or

(ii) the 2015 LFG determination;

the project is credited under this determination as a new project, a recommencing project, an upgrade project, a transitioning project, a transitioning (continued) project, a transitioning (new) project, a transitioning (recommencing) project and a transitioning (upgrade) project as it was previously credited as the forerunner project.

(3) If:

(a) a project is a restarting biomethane conversion and displacement project; and

(b) at the expiry of its forerunner project’s crediting period the applicable methodology determination for the forerunner project was:

(i) the Carbon Farming (Capture and Combustion of Methane in Landfill Gas from Legacy Waste) Methodology Determination 2012; or

(ii) the Carbon Credits (Carbon Farming Initiative) (Capture and Combustion of Methane in Landfill Gas from Legacy Waste: Upgrade Projects) Methodology Determination 2012;

the project is credited under this determination as a transitioning project.

Note: Section 31 specifies how the proportion of methane that would have been combusted without the project is worked out for transitioning projects.

12E Requirements for restarting biomethane displacement-only projects

A restarting biomethane displacement-only project must:

(a) occur at a biomethane facility that was part of an eligible offsets project (the forerunner project):

(i) that involved the carrying out of biomethane production; and

(ii) for which the applicable methodology determination was:

(A) this determination; or

(B) an earlier version of this determination applicable in accordance with section 125, 126, 127 or 130 of the Act; and

(iii) the crediting period for which has expired; and

(b) involve biomethane production; and

Note: A restarting biomethane displacement-only project will only earn credits for the displacement abatement attributable to biomethane production (see paragraph 17A(e)). Such a project may also involve landfill gas capture for biomethane or emissions destruction, but no credits will be issued in relation to those project activities.

12F Changing project type

A project of a particular type may change to a project of a different type if it satisfies the requirements for that type immediately before the change.

Note: See Division 1 of Part 5 for the documentation of the change required in the offsets report for the project.

[16] Section 13

Repeal the section, substitute:

Division 3—Information required for a section 22 or a section 128 application

13 Applications for landfill gas (electricity generation) projects

The section 22 application or section 128 application for a landfill gas (electricity generation) project must provide written evidence of the intention of the project proponent to:

(a) combust landfill gas to generate electricity for use on-site, for supply to the grid or both; or

(b) treat landfill gas, with or without biogas produced from other biogas waste, by biogas upgrading at a biomethane facility to produce biomethane which is then sent to an end use where it can reasonably be expected to be combusted within Australia as a natural gas substitute.

13A Applications about non-biomethane projects

(1) This section applies to the section 22 application or section 128 application for a non-biomethane project.

(2) An application to which this section applies must include the following information:

(a) which project type and project sub-type the project will be;

(b) which project activities will be carried out as part of the project;

(d) a description as to how the project can reasonably be expected to result in eligible carbon abatement.

13B Applications about other projects

(1) This section applies to the following:

(a) the section 22 application or section 128 application for a biomethane conversion and displacement project or biomethane displacement-only project;

(b) the section 22 application for a restarting biomethane conversion and displacement project or restarting biomethane displacement-only project.

(2) An application to which this section applies must include the following information:

(a) which project type and project sub-type the project will be;

(b) which project activities will be carried out as part of the project;

(c) if the application relates to a biomethane conversion and displacement project or a restarting biomethane conversion and displacement project—a description of the project landfill that will be used in the project;

(d) a description of at least one of the project biomethane facility that will be used in the project and the following details about each project biomethane facility that will be used in the project:

(i) a brief description of the facility;

(ii) the location of the facility;

(iii) the capacity of the facility, in m3 of biomethane produced by the facility per year;

(iv) any known proposal for the expansion of the facility over the course of the project;

(v) the intended recipients of biomethane produced by the facility;

(vi) the basis upon which the facility is expected to comply with the requirements of this Part and section 7;

Note: Project biomethane facilities may also be adopted later, provided that they are documented in accordance with Part 5.

(e) a description of at least one biogas upgrading system that will be used in the project and the following details of each biogas upgrading system that will be used in the project:

(i) a brief description of the system;

(ii) the location of the system;

(f) a declaration from the project proponent that biomethane produced by project biomethane facilities can reasonably be expected to be combusted within Australia as a natural gas substitute;

(g) a description as to how the project can reasonably be expected to result in eligible carbon abatement.

[17] Section 14

Repeal the section.

[18] Section 15

Repeal the section, substitute:

Division 4—Additionality and in lieu of newness requirements for certain projects

15 Additionality requirements

For subparagraph 27(4A)(b)(ii) of the Act, a requirement in lieu of the regulatory additionality requirement is that the project is a non-biomethane project, biomethane conversion and displacement project or restarting biomethane conversion and displacement project.

15A Requirements in lieu of newness requirement—recommencing project

For subparagraph 27(4A)(a)(ii) of the Act, a requirement in lieu of the newness requirement for a recommencing project that is not a restarting biomethane conversion and displacement project is that the project complies with subparagraph 27(4A)(a)(i) of the Act, disregarding any operation of the landfill gas collection system before the earliest of the following:

(a) the beginning of the period of 3 years before the application for the declaration of the project as an eligible offsets project was made;

(b) the end of the day that is 24 April 2014.

15B Requirement in lieu of newness requirement—restarting biomethane conversion and displacement project

(1) For subparagraph 27(4A)(a)(ii) of the Act, the requirement in subsection (2) is in lieu of the newness requirement for a restarting biomethane conversion and displacement project.

(2) The project must be a restarting biomethane conversion and displacement project.

15C Requirement in lieu of newness requirement—restarting biomethane displacement-only project

(1) For subparagraph 27(4A)(a)(ii) of the Act, the requirement in subsection (2) is in lieu of the newness requirement for a restarting biomethane displacement-only project.

(2) The project must be a restarting biomethane displacement-only project.

[19] Section 16

Repeal the section, substitute:

Division 5—Crediting period

16 Crediting period for project other than restarting biomethane conversion and displacement project or restarting biomethane displacement-only project

For paragraph 69(3)(b) and subsection 70(3)(d) of the Act, if a landfill gas (electricity generation) project during its crediting period or periods is not:

(a) a restarting biomethane conversion and displacement project; or

(b) a restarting biomethane displacement-only project;

the period of 12 years is specified.

16A Crediting period for restarting biomethane conversion and displacement project

For paragraph 69(3)(b) and subsection 70(3)(d) of the Act, if a landfill gas (electricity generation) project is a restarting biomethane conversion and displacement project, the period of 12 years minus the length of the last or only crediting period for the project’s forerunner project is specified.

Note: For this section, forerunner project has the meaning given by paragraph 12D(1)(a).

16B Crediting period for restarting biomethane displacement-only project

For paragraph 69(3)(b) and subsection 70(3)(d) of the Act, if a landfill gas (electricity generation) project is a restarting biomethane displacement-only project, the period specified is 12 years minus the length of time between:

(a) the start date of the first reporting period in which the project’s forerunner project first treated biogas by biogas upgrading to produce biomethane; and

(b) the end date of the crediting period of that forerunner project.

Note: For this section, forerunner project has the meaning given by paragraph 12E(a).

[20] Part 4

Repeal the Part, substitute:

Part 4—Net abatement amounts

Division 1—Operation of this Part

17 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 landfill gas (electricity generation) project that is an eligible offsets project.

17A What can be included in calculating net abatement

For the purposes of working out the total carbon dioxide equivalent net abatement amount for a reporting period for a landfill gas (electricity generation) project Atot (in tonnes CO2-e):

(a) the calculations for a non-biomethane project must include only the conversion abatement attributable to emissions destruction worked out using the method set out in Division 2; and

(b) the calculation for a biomethane conversion and displacement project must include only:

(i) the conversion abatement attributable to landfill gas capture for biomethane, worked out using the method set out in Division 2; and

(ii) if the project also involves emissions destruction—the conversion abatement attributable to that emissions destruction, worked out using the method set out in Division 2; and

(iii) the displacement abatement attributable to biomethane production, worked out using the method set out in Division 3; and

(c) the calculation for a biomethane displacement-only project must include only the displacement abatement attributable to biomethane production, worked out using the method set out in Division 3; and

(d) the calculation for a restarting biomethane conversion and displacement project must include only:

(i) the conversion abatement attributable to landfill gas capture for biomethane, worked out using the method set out in Division 2; and

(ii) the displacement abatement attributable to biomethane production, worked out using the method set out in Division 3; and

(e) the calculation for a restarting biomethane displacement-only project must include only the displacement abatement attributable to biomethane production, worked out using the method set out in Division 3.

17B Working out net abatement

Subject to section 17A, the total carbon dioxide equivalent net abatement amount for a reporting period for landfill gas (electricity generation) project Atot (in tonnes CO2-e), is worked out using the formula (equation 1):

where:

Aconversion is the carbon dioxide equivalent net abatement amount attributable to the treatment of landfill gas from the project landfill by emissions destruction or landfill gas capture for biomethane for the reporting period, in tonnes CO2-e, worked out using equation 2 or equation 2A (section 21).

Adisplacement is the carbon dioxide equivalent net abatement amount attributable to biogas upgrading at project biomethane facilities for the reporting period, in tonnes CO2-e, worked out using equation 24 (section 32G).

Division 2—Working out conversion abatement

Subdivision 1—Overview

18 Overview of gases accounted for in conversion abatement calculations

The following table provides an overview of the greenhouse gas abatement and emissions that are relevant to working out the carbon dioxide equivalent net abatement amount for a landfill gas (electricity generation) project that involves landfill gas capture for biomethane or emissions destruction.

Greenhouse gas abatement and emissions
Item	Relevant calculation	Emissions source	Greenhouse gas
1	Baseline abatement	Destruction of methane in landfill gas by combustion	Methane (CH4)
2	Baseline abatement	Destruction of methane in landfill gas by oxidation in the near surface conditions of the landfill	Methane (CH4)
3	Project abatement	Destruction of methane in landfill gas by combustion, or destruction of methane in landfill gas from the sending of landfill gas to a biogas upgrading system	Methane (CH4)
4	Project emissions	Combustion of landfill gas	Methane (CH4)
5	Project emissions	Fuel consumption attributable to project landfill gas capture for biomethane activities	Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O)
6	Project emissions	Consumption of purchased electricity attributable to project landfill gas capture for biomethane activities	Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O)

Subdivision 2—Method for calculating net conversion abatement amount

20 Summary

Net conversion abatement is calculated as project abatement minus baseline abatement.

If a project is a biomethane conversion and displacement project or restarting biomethane conversion and displacement project and involves upgrading biogas that is solely sourced from the project landfill, an alternative net abatement calculation approach may be used that determines methane destroyed after being sent to a biomethane facility for biogas upgrading based on the quantity and composition of biomethane produced.

From this is deducted any emissions generated by operation of the project landfill from undertaking landfill gas capture for biomethane activities (eg fuel use).

21 Net conversion abatement amount

(1) The carbon dioxide equivalent net abatement amount attributable to the treatment of landfill gas from the project landfill by emissions destruction or landfill gas capture for biomethane for a reporting period, in tonnes CO2‑e, is worked out:

(a) for a biomethane conversion and displacement project or restarting biomethane conversion and displacement project that only undertakes biogas upgrading of landfill gas from the project landfill—using either Method 1 (set out in subsections (2) to (3)) or Method 2 (set out in subsections (4) to (6)); and

(b) otherwise—using Method 1 (set out in subsections (2) to (3)).

Method 1—project landfill-only calculation

(2) The carbon dioxide equivalent net abatement amount attributable to the treatment of landfill gas from the project landfill by emissions destruction or landfill gas capture for biomethane at the project landfill for a reporting period, Aconversion, in tonnes CO2‑e, is worked out using the formula (equation 2):

where:

Aconversion means the carbon dioxide equivalent net abatement amount for the project landfill in the reporting period, in tonnes CO2‑e.

AP means the project conversion abatement for the project landfill in the reporting period, in tonnes CO2‑e, worked out using equation 3.

AB means the baseline conversion abatement for the project landfill in the reporting period, in tonnes CO2‑e, worked out using equation 15.

PELFG-BM means the emissions from landfill gas capture for biomethane activities for the reporting period for the project landfill in the reporting period, in tonnes CO2‑e, worked out using equation 23A.

(3) If, during a reporting period, the project landfill:

(a) sends landfill gas to a biogas upgrading system; and

(b) either:

(i) the landfill gas is used for a purpose other than biogas upgrading to produce biomethane that can reasonably be expected to be combusted within Australia as a natural gas substitute; or

(ii) the biomethane produced from biogas upgrading cannot be reasonably expected to be combusted within Australia as a natural gas substitute;

Aconversion for the project landfill is taken to be zero.

Method 2—project landfill and project biomethane facility calculation

(4) The carbon dioxide equivalent net abatement amount attributable to the treatment of landfill gas from the project landfill by emissions destruction or landfill gas capture for biomethane for a reporting period, Aconversion, in tonnes CO2‑e, is worked out using the formula (equation 2A):

where:

Aconversion means the carbon dioxide equivalent net abatement amount for the project landfill in the reporting period, in tonnes CO2‑e.

AP, ED means the project conversion abatement from emissions destruction activities for the project landfill in the reporting period, in tonnes CO2‑e, worked out using equation 4.

Note: AP, ED excludes the abatement associated with methane sent to biogas upgrading systems during the reporting period.

AB means the baseline conversion abatement for the project landfill in the reporting period, in tonnes CO2‑e, worked out using equation 15.

γ is the factor, used in Part 5.3 of the NGER (Measurement) Determination, that converts cubic metres of methane to tonnes CO2‑e at standard conditions.

Note: In 2021, γ was 6.784 x 10-4 x 28.

f is a project biomethane facility.

BCf (biomethane combusted) is the volume of methane sent out from project biomethane facility f during the reporting period, calculated using equation 14 (section 28A).

(5) If, during a reporting period, the project landfill:

(a) sends landfill gas to a biogas upgrading system; and

(b) either:

(i) the landfill gas is used for a purpose other than biogas upgrading to produce biomethane that can reasonably be expected to be combusted within Australia as a natural gas substitute; or

(ii) the biomethane produced from biogas upgrading cannot be reasonably expected to be combusted within Australia as a natural gas substitute;

Aconversion for the project landfill is taken to be zero.

(6) If, during a reporting period, a project biomethane facility produces biomethane that cannot be reasonably expected to be combusted within Australia as a natural gas substitute, BCf for the project biomethane facility is taken to be zero.

21A Inputs and parameters

(1) For the purposes of calculating the net conversion abatement amount, inputs for this method must cover the whole of the project landfill.

Note: This subsection prevents a proponent from operating a project only in relation to a selected portion of the project landfill where, for example, gas might be easier to extract.

(2) If a parameter in an equation is worked out, or determined, in a particular way for a reporting period, then, it must be worked out, or determined, in the same way for all other equations in which it is used for the reporting period.

Subdivision 3—Method for calculating project conversion abatement

22 Summary

Project conversion abatement is calculated as the amount of methane combusted by the project that was not generated by carbon tax waste minus the amount that would have been oxidised in the near surface conditions of the project landfill had it not been collected during the project.

23 Project conversion abatement

(1) The project conversion abatement for the project landfill in a reporting period, in tonnes CO2‑e, is worked out using the formula (equation 3):

where:

AP means the project conversion abatement for the project landfill in the reporting period, in tonnes CO2‑e.

MCom, NCT means the methane combusted or taken to be combusted for the project landfill during the reporting period that was not generated from carbon tax waste, in tonnes CO2‑e, worked out using equation 5.

MCom, Ox means the methane combusted or taken to be combusted for the project landfill during the reporting period that was not generated from carbon tax waste and that, without the project, would have been oxidised in near surface conditions of landfill, in tonnes CO2‑e, worked out using equation 13.

(2) The project conversion abatement from emissions destruction activities for the project landfill in a reporting period, in tonnes CO2‑e, is worked out using the formula (equation 4):

Note: This equation is used for projects that work out net conversion abatement using Method 2 in section 21.

where:

AP, ED means the project conversion abatement from emissions destruction activities for the project landfill in the reporting period, in tonnes CO2‑e.

MCom, NCT, ED means the methane combusted through emissions destruction activities for the project landfill during the reporting period that was not generated from carbon tax waste, in tonnes CO2‑e, worked out using equation 6.

24 Methane combusted or taken to be combusted that was not generated from carbon tax waste

(1) The methane combusted or taken to be combusted for the project landfill during a reporting period that was not generated from carbon tax waste, in tonnes CO2‑e, is worked out using the formula (equation 5):

where:

MCom, NCT means the methane combusted or taken to be combusted for the project landfill during the reporting period that was not generated from carbon tax waste, in tonnes CO2‑e.

γ means the factor to convert cubic metres of methane at standard conditions to tonnes of CO2‑e worked out using subsection 5.4(1) of the NGER (Measurement) Determination.

Note: In 2021, γ was 6.784 x 10-4 x 28.

WNCT means the proportion of the methane combusted or taken to be combusted for the project landfill during the reporting period that was not generated from carbon tax waste worked out using equation 7.

MCom means the methane that was combusted or taken to be combusted for the project landfill during the reporting period, in cubic metres, worked out using equation 8.

(2) The methane combusted through emissions destruction activities for the project landfill during a reporting period that was not generated from carbon tax waste, in tonnes CO2‑e, is worked out using the formula (equation 6):

Note: This equation is used for projects that work out net conversion abatement using Method 2 in section 21.

where:

γ means the factor to convert cubic metres of methane at standard conditions to tonnes of CO2‑e worked out using subsection 5.4(1) of the NGER (Measurement) Determination.

Note: In 2021, γ was 6.784 x 10-4 x 28.

MCom means the methane that was combusted for the project landfill during the reporting period, in cubic metres, worked out using equation 8 subject to section 26(1A).

25 Proportion of methane combusted or taken to be combusted that was not generated from carbon tax waste

(1) The proportion of the methane combusted or taken to be combusted for the project landfill during a reporting period that was not generated from carbon tax waste, in cubic metres, is worked out using the formula (equation 7):

where:

WNCT means the proportion of the methane combusted or taken to be combusted for the project landfill during the reporting period that was not generated from carbon tax waste.

MCom, y means the methane combusted or taken to be combusted in financial year y for the project landfill, in cubic metres, worked out using equation 8 as if a reporting period were a financial year.

MCom means the methane combusted or taken to be combusted for the project landfill during the reporting period, in cubic metres, worked out using equation 8.

MCTW, y means the methane generated in the project landfill from carbon tax waste in financial year y for the project landfill in tonnes of CO2‑e calculated in accordance with subsection (2).

MGen, y means the methane generated in the project landfill in financial year y, in tonnes CO2‑e, calculated in accordance with subsection (3).

y means a financial year covered (either partly or fully) by the reporting period.

Note: The summation of this equation over financial years is to cover circumstances where reporting periods span financial years.

Methane generated from carbon tax waste in financial year y

(2) The methane generated by the project landfill from carbon tax waste in financial year y, in tonnes of CO2‑e, is equivalent to parameter CH4gen calculated:

(a) under Part 5.2 of the NGER (Measurement) Determination; and

(b) in accordance with the following:

(i) the year y for working out MCTW,y is a financial year that the reporting period partially or fully covers;

(ii) the calculation is based only on carbon tax waste.

Note: See section 6 for the version of NGER (Measurement) Determination that must be used.

Methane generated in year y

(3) The methane generated by the project landfill in year y, in tonnes CO2‑e, is equivalent to parameter CH4gen calculated:

(a) under Part 5.2 of the NGER (Measurement) Determination; and

(b) with methane generation determined for the whole project landfill as if it were a single sub‑facility zone; and

(4) For working out MGen, y for equation 7, financial year y is a financial year covered (either partly or fully) by the reporting period.

(5) For working out MGen, y for equation 21, year y is the 12-month period immediately after the upgrade undertaken in the project is completed.

(6) For working out MGen, y for equation 32 and clause 5 of Schedule 1, year y is the 12-month period immediately before the project begins.

(7) For working out MGen, y for clause 2 of Schedule 1 (for the purposes of items 1 and 2 of the table in subclause 6(2) of Schedule 1) and items 5 and 6 of the table in subclause 6(2) of Schedule 1, year y is the 12-month period immediately before the advice is given by the environmental regulator.

(8) For subsections (5), (6) and (7), if the 12-month period covers 2 financial years, CH4gen is calculated by:

(a) calculating CH4gen for each financial year covered by the 12-month period; and

(b) multiplying the amount of CH4gen for each financial year by the proportion of days in the financial year covered by the 12-month period; and

26 Methane combusted or taken to be combusted

(1) The methane combusted or taken to be combusted during a reporting period, in cubic metres, is worked out using the formula (equation 8):

where:

MCom means the methane combusted or taken to be combusted during the reporting period, in cubic metres.

h means, subject to subsection (1A):

(a) a combustion device; or

(b) a biogas upgrading system of a project biomethane facility.

MCom, h means, subject to subsection (1A), the methane combusted by combustion device h, or taken to be combusted by biogas upgrading system h, during the reporting period, in cubic metres, worked out using:

(a) for a biogas upgrading system, combustion device that is a boiler, a flare with monitoring and control system, or an internal combustion engine system—using equation 9; and

(b) for a combustion device that is not a boiler, a flare with monitoring and control system or an internal combustion engine—equation 9A.

(1A) If MCom is being worked out for the purposes of calculating MCom, NCT, ED (section 24(2)), h means a combustion device when determining MCom for the reporting period.

Note: This prevents landfill gas sent from the project landfill to biogas upgrading systems from being included when working out methane combusted through emissions destruction activities under equation 6. This in turn prevents double counting of conversion abatement from biomethane, which under Method 2 is already accounted for in equation 2A.

Methane combusted by combustion device h or taken to be combusted by biogas upgrading system h—boiler or flare with monitoring and control system or internal combustion engine or biogas upgrading system.

(2) Subject to subsection (1), the methane combusted by combustion device h or taken to be combusted by biogas upgrading system h during a reporting period, in cubic metres, is worked out using the formula (equation 9):

where:

MCom, h means the methane combusted by combustion device h or taken to be combusted by biogas upgrading system h during the reporting period, in cubic metres.

MSent, h means the methane sent to combustion device or biogas upgrading system h during the reporting period, in cubic metres, worked out using equation 10, 11 or 12.

PLh means the biomethane production loss factor for landfill gas sent to combustion device or biogas upgrading system h, expressed as a fraction, worked out in accordance with section 28B.

Note: PLh accounts for methane lost during biogas upgrading. It does not affect methane that is sent to combustion devices.

TLh means the transport loss factor for biogas sent to combustion device or biogas upgrading system h, expressed as a fraction, which is:

(a) if h is a combustion device—zero;

(b) if h is a biogas upgrading system that sends landfill gas to a biogas upgrading system at a project biomethane facility and all biomethane produced by the biogas upgrading system during the reporting period is consumed at the project land fill or a project biomethane facility—zero;

Note: TLh accounts for methane that is not combusted due to gas lost in transport. It is only relevant when a project undertakes biomethane production and sends the gas off-site for use and combustion.

DE means the default methane destruction efficiency for a combustion device or biogas upgrading system, expressed as a fraction, which is:

(a) if h is an internal combustion engine—1;

(b) otherwise—0.98.

Methane combusted by combustion device h—other combustion devices

(3) Subject to subsection (1), the methane combusted by combustion device h during a reporting period, in cubic metres, is worked out using the formula (equation 9A):

where:

MCom, h means the methane combusted during the reporting period by combustion device h, in cubic metres.

DE means the default methane destruction efficiency for a combustion, expressed as a fraction, which is:

(a) if h is an internal combustion engine—1;

(b) otherwise—0.98.

Oh, a means the operation of combustion device h in hour a, which is either 0 or 1, worked out in accordance with the monitoring requirements.

MSent, h, a means the methane sent to combustion device h in hour a, in cubic metres, worked out using equation 10 or equation 11.

27 Methane sent to combustion device or biogas upgrading system

(1) Methane sent to a combustion device h or biogas upgrading system h during a particular period may be worked out using:

(a) for a combustion device or biogas upgrading system—equation 10; or

(b) for a combustion device—equation 11; or

Option 1—using landfill gas sent to combustion device or biogas upgrading system

(2) Using the volume of the landfill gas sent to the combustion device or biogas upgrading system (QLFG,h), the methane sent to the combustion device or biogas upgrading system during the period is worked out using the formula (equation 10):

where:

MSent, h means the methane sent to the combustion device or biogas upgrading system h during the period, in cubic metres.

QLFG, h means the landfill gas sent to the combustion device or biogas upgrading system h during the period, in cubic metres, worked out in accordance with the monitoring requirements.

W LFG, CH4, h means the proportion of the landfill gas sent to combustion device or biogas upgrading system h that is methane, which is, subject to subsection (2A), at the election of the project proponent:

(a) 0.42; or

(b) worked out in accordance with the monitoring requirements; or

(c) if the project is a landfill gas (electricity generation) project whose application under section 22 of the Act was made before 1 September 2020—set out in section 5.14C of the NGER (Measurement) Determination.

(2A) If h is a biogas upgrading system, WLFG, CH4, h must be worked out in accordance with the monitoring requirements.

(3) If, at any time during which this determination is, or the 2015 LFG determination was, the applicable methodology for the project, the monitoring requirements are or, as the case may be, were used to work out WLFG, CH4, h, then, the monitoring requirements must be used for that purpose for the remainder of the project.

(4) Subsection (3) has effect subject to section 36.

Option 2—using energy content of landfill gas sent to combustion device

(5) Using the energy content of the landfill gas sent to the combustion device (QEn,h), the methane sent to the combustion device during the period is worked out using the formula (equation 11):

where:

MSent, h means the methane sent to the combustion device h during the period in cubic metres.

QEn, h means the energy content of the landfill gas sent to the combustion device h during the period, in gigajoules, worked out in accordance with the monitoring requirements.

ECLFG means the energy content factor for landfill gas that is collected for combustion (methane only), in gigajoules per cubic metre, set out in Part 2 of Schedule 1 to the NGER (Measurement) Determination.

Option 3—using electricity produced by internal combustion engine

(6) If the combustion device is an internal combustion engine, using the electricity produced by the device (QEG,h), the methane sent to the combustion device during the period is worked out using the formula (equation 12):

where:

MSent, h means the methane sent to the combustion device h during the period, in cubic metres.

QEG, h means the electricity (supplied to the grid or used on‑site) produced by internal combustion engine h during the period, in megawatt hours, worked out in accordance with the monitoring requirements.

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

Effh means:

(a) the factor for the electrical efficiency of internal combustion engine h determined in accordance with:

(i) the manufacturer’s specifications for the combustion of landfill gas; and

(ii) if the specifications set out a range of such efficiencies—the highest of those efficiencies; or

(b) if no such factor can be determined in accordance with the manufacturer’s specifications—the amount set out in subparagraph 2.38(2)(a)(ii) of the NGER (Measurement) Determination.

ECLFG means the energy content factor for landfill gas that is captured for combustion (methane only), in gigajoules per cubic metre, set out in Part 2 of Schedule 1 to the NGER (Measurement) Determination.

28 Methane combusted that was not generated from carbon tax waste and that would have been oxidised in near surface conditions

The methane combusted or taken to be combusted during a reporting period that was not generated from carbon tax waste and that, without the project, would have been oxidised in near surface conditions of landfill, in tonnes CO2‑e, is worked out using the formula (equation 13):

where:

MCom, Ox means the methane combusted or taken to be combusted during the reporting period that was not generated from carbon tax waste and that, without the project, would have been oxidised in near surface conditions of landfill, in tonnes CO2‑e.

OF means the oxidation factor for near surface methane in landfill set out in the definition of OF in subsection 5.4(1) of the NGER (Measurement) Determination.

WB means the proportion of the methane combusted or taken to be combusted in the reporting period that would have been combusted without the project worked out using whichever of equation 16 to equation 19 applies.

28A Methane destroyed in biomethane produced by project biomethane facilities

The volume of methane sent out from project biomethane facility f during a reporting period, BCf, in cubic metres, is worked out using the formula (equation 14):

where:

k is a biogas upgrading system that is part of project biomethane facility f.

QBM, k is the total volume of biomethane sent out by biogas upgrading system k during the reporting period, in cubic metres, determined in accordance with the monitoring requirements.

WBM, CH4, k is the proportion of QBM, k that is methane, expressed as a fraction, determined in accordance with the monitoring requirements.

TLBM, f is the transport loss factor for biomethane produced by project biomethane facility f, expressed as a fraction, which is:

(a) if all biomethane produced by the biogas upgrading system f during the reporting period is consumed at the project landfill or project biomethane facility—zero; or

(b) otherwise—0.02.

Note: TLBM accounts for methane that is not combusted due to gas lost in transport of biomethane.

DEBM is the methane destruction efficiency for biomethane produced by a biogas upgrading system, expressed as a fraction, which is 0.98.

28B Biomethane production loss factor

(1) For the purposes of section 26, the biomethane production loss factor for landfill gas sent to combustion device or biogas upgrading system h (PLh), expressed as a fraction, is:

(a) if h is a combustion device—zero; or

(b) if h is a biogas upgrading system—the fraction determined in accordance with subsection (2).

(2) For paragraph (1)(b), the biomethane production loss factor for biogas upgrading system h (PLh), expressed as a fraction, must be:

(a) determined as a fraction, in accordance with the manufacturer’s listed specifications for the biogas upgrading system; or

(b) measured as a fraction, in accordance with the manufacturer’s specification in the technical manual for the biogas upgrading system.

(3) For paragraph (2)(a), if the manufacturer’s listed specifications for the biomethane production loss factor sets out a range of values, the highest of those values must be selected.

Subdivision 4—Method for calculating baseline conversion abatement

29 Summary

Baseline conversion abatement is calculated as the amount of methane combusted or taken to be combusted by the project that was not generated by carbon tax waste, multiplied by the proportion representing the amount of methane combusted or taken to be combusted during the project that would have been combusted without the project.

The determination of this proportion depends on the project sub-type of a project.

30 Baseline conversion abatement

The baseline abatement for a reporting period, in tonnes CO2‑e, is worked out using the formula (equation 15):

where:

AB means the baseline conversion abatement for the reporting period, in tonnes CO2‑e.

31 Proportion of methane that would have been combusted without the project

New, recommencing, transitioning (new) or transitioning (recommencing) project

(1) If the project is a new project, a recommencing project, a transitioning (new) project or a transitioning (recommencing) project, the proportion of the methane combusted or taken to be combusted during a reporting period that would have been combusted without the project is worked out using the formula (equation 16):

where:

WB means the proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project.

WB, Reg means the regulatory proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project as determined using Schedule 1 to this determination.

WB, Def means the default proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project, which is as follows:

(a) 0% if the project proponent can demonstrate that, since 24 March 2011, the landfill concerned has not been subject to:

(i) legislation or regulatory guidelines for landfill; or

(ii) a licence condition or development approval that includes any form of general or specific qualitative requirement to collect, control, manage or limit landfill gas, methane odour or greenhouse gases;

(b) otherwise—30%.

Upgrade or transitioning (upgrade) project

(2) If the project is an upgrade project or a transitioning (upgrade) project, the proportion of the methane combusted or taken to be combusted during a reporting period that would have been combusted without the project is worked out using the formula (equation 17):

where:

WB means the proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project.

WB, Reg means the regulatory proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project determined using Schedule 1 to this determination.

WB, Def has the same meaning as in subsection (1).

WB, Ex means the proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project worked out using equation 20.

Transitioning project or transitioning (continued) project

(3) If the project is:

(a) a transitioning project that was operating under the Carbon Credits (Carbon Farming Initiative) (Capture and Combustion of Methane in Landfill Gas from Legacy Waste) Methodology Determination 2012 (the legacy determination); or

(b) a transitioning (continued) project that was operating under the legacy determination and subsequently under the 2015 LFG determination; or

(c) a restarting biomethane conversion and displacement project whose forerunner project was, at the expiry of its crediting period, operating under the legacy determination;

the proportion of the methane combusted or taken to be combusted during a reporting period that would have been combusted without the project is worked out using the formula (equation 18):

where:

WB means the proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project.

RP means RP as worked out under the legacy determination.

(4) If the project is:

(a) a transitioning project that was operating under the Carbon Credits (Carbon Farming Initiative) (Capture and Combustion of Methane in Landfill Gas from Legacy Waste: Upgrade Projects) Methodology Determination 2012 (the legacy upgrade determination); or

(b) a transitioning (continued) project that was operating under the legacy upgrade determination and subsequently under the 2015 LFG determination; or

(c) a restarting biomethane conversion and displacement project whose forerunner project was, at the expiry of its crediting period, operating under the legacy upgrade determination;

the proportion of the methane combusted or taken to be combusted during a reporting period that would have been combusted without the project is worked out using the formula (equation 19):

where:

WB means the proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project.

BP means Bp as worked out under the legacy upgrade determination.

(5) The value given to WB in subsection (1), (2), (3) or (4) must be the same throughout the crediting period.

32 Proportion of methane that would have been combusted without upgrade

(1) For an upgrade project or a transitioning (upgrade) project, the proportion of the methane combusted or taken to be combusted during a reporting period that would have been combusted without the project is worked out using the formula (equation 20):

where:

WB, Ex means the proportion of the methane combusted or taken to be combusted during the reporting period that would have been combusted without the project.

WCom, Bef means:

(a) if equation 20 is calculated on the basis of data only for 2 years in accordance with subsection (8)—the average proportion of the methane from the project landfill that is collected and destroyed during the 2 years before the upgrade is started, worked out using equation 21; or

(b) otherwise—the higher of:

(i) the average proportion of the methane from the project landfill that is collected and destroyed during the 2 years before the upgrade is started, worked out using equation 22; and

(ii) the average proportion of the methane from the project landfill that is collected and destroyed during the 4 years before the upgrade is started, worked out using equation 23.

WCom, Aft means the average proportion of the methane from the project landfill that is collected and destroyed during the 12 months immediately after the upgrade is completed, worked out using equation 18.

Methane collected and destroyed during 12 months after upgrade

(2) The average proportion of the methane from the project landfill that is collected and destroyed during the 12 months immediately after the upgrade is completed is worked out using the formula (equation 21):

where:

WCom, Aft means the average proportion of the methane from the project landfill that is collected and destroyed during the 12 months immediately after the upgrade is completed.

 means the factor to convert cubic metres of methane at standard conditions to tonnes of CO2‑e set out in subsection 5.4(1) of the NGER (Measurement) Determination.

Note: In 2021, γ was 6.784 x 10-4 x 28.

MSent, h means the methane sent to the combustion device or biogas upgrading system h during the reporting period, in cubic metres, worked out using equation 10, 11 or 12.

MGen, y means the methane generated by the project landfill in year y, in tonnes CO2‑e, worked out using subsection 25(3).

y means the 12 months immediately after the upgrade is completed.

Methane collected and destroyed during 2 years before upgrade

(3) The average proportion of the methane from the project landfill that is collected and destroyed during the 2 years before the upgrade is started is worked out using the formula (equation 22):

where:

WCom, Bef means the average proportion of the methane from the project landfill that is collected and destroyed during the 2 years:

(a) immediately before the upgrade is started; or

(b) if elected by the project proponent—immediately before the application for declaration of the upgrade project as an eligible offsets project.

 means the factor to convert cubic metres of methane at standard conditions to tonnes of CO2‑e set out in subsection 5.4(1) of the NGER (Measurement) Determination.

Note: In 2021, γ was 6.784 x 10-4 x 28.

Qcap, y means the quantity of methane in landfill gas collected for combustion from the project landfill during year y, in cubic metres, measured as prescribed in Part 5.2 of the NGER (Measurement) Determination.

Note: The term collected for combustion in the NGER (Measurement) Determination is intended to mean landfill methane collected for combustion for electricity generation.

Qflared, y means the quantity of methane in landfill gas from the project landfill that is flared or otherwise combusted for purposes other than electricity generation during year y, in cubic metres, measured as prescribed in Part 5.2 of the NGER (Measurement) Determination.

Qtr, y means the quantity of methane in landfill gas transferred out of the project landfill during year y, in cubic metres, measured as prescribed in Part 5.2 of the NGER (Measurement) Determination.

CH4*, y means the estimated quantity of methane in landfill gas generated by the project landfill during year y, in tonnes CO2‑e, measured and determined in accordance with subsection (5).

y means a year in the 2 years:

(a) immediately before the upgrade is started; or

(b) if elected by the project proponent—immediately before the application for declaration of the upgrade project or the transitioning (upgrade) project as an eligible offsets project.

Methane collected and destroyed during 4 years before upgrade

(4) The average proportion of the methane from the project landfill that is collected and destroyed during the 4 years before the upgrade is started is worked out using the formula (equation 23):

where:

WCom, Bef means the average proportion of the methane from the project landfill that is collected and destroyed during the 4 years:

(a) immediately before the upgrade is started; or

(b) if elected by the project proponent—immediately before the application for declaration of the upgrade project or the transitioning (upgrade) project as an eligible offsets project.

 means the factor to convert cubic metres of methane at standard conditions to tonnes of CO2‑e set out in subsection 5.4(1) of the NGER (Measurement) Determination.

Note: The term collected for combustion in the NGER (Measurement) Determination is intended to mean landfill methane collected for combustion for electricity generation.

CH4*+, y means the estimated quantity of methane in landfill gas generated by the project landfill during year y, in tonnes CO2‑e, measured and determined in accordance with subsection (6).

y means a year in the 4 years:

(a) immediately before the upgrade is started; or

(b) if elected by the project proponent—immediately before the application for declaration of the upgrade project or the transitioning (upgrade) project as an eligible offsets project.

x means:

(a) if pursuant to subsection (8) WCom, Bef is calculated for the purposes of this subsection based on data for a 4-year period—4;

(b) if pursuant to subsection (8) WCom, Bef is calculated for the purposes of this subsection based on data for a 3-year period—3;

(c) if pursuant to subsection (8) WCom, Bef is calculated for the purposes of this subsection based on data for a 2-year period—2.

(5) CH4*, y is equivalent to CH4* calculated:

(a) under Part 5.2 of the NGER (Measurement) Determination; and

(b) in accordance with the following:

(i) the reporting year is year y, where y means a year in the 2 years immediately before the upgrade;

(ii) methane generation must be determined for the whole project landfill as if it were a single sub‑facility zone.

(6) CH4*+, y is equivalent to CH4* calculated:

(a) under Part 5.2 of the NGER (Measurement) Determination; and

(b) in accordance with the following:

(i) the reporting year is year y, where y means a year in the 4 years immediately before the upgrade;

(ii) methane generation must be determined for the whole project landfill as if it were a single sub‑facility zone.

(7) For subsections (5) and (6), if year y covers 2 financial years, use the method set out in subsection 25(8) (as if CH4gen were CH4*).

(8) In subsections (1), (4) and (6), references to “4 years” are taken to mean “2 years or, if data is available to the project proponent for that period, 3 years” for a relevant transitioning (upgrade) project that does not have 4 years of previous data.

Subdivision 5—Project emissions from landfill gas capture for biomethane

32A Summary

The project emissions for a reporting period are the emissions that must be subtracted from the gross project conversion abatement during the reporting period. They are the emissions that are attributable to the use of equipment for landfill gas capture for biomethane activities. They include emissions from fuel (including transport) and purchased electricity.

32B Project emissions from landfill gas capture for biomethane

(1) The project emissions from landfill gas capture for biomethane activities for the project landfill for a reporting period, PELFG-BM, in tonnes CO2‑e, is worked out using the formula (equation 23A):

where:

PELFG-BM means the project emissions from landfill gas capture for biomethane activities for the project landfill for the reporting period.

EF, LFG-BM means the emissions from fuel that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane, during the reporting period (including transport), in tonnes CO2‑e, worked out using equation 23B (section 32C).

EPE, LFG-BM means the emissions from purchased electricity that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane, the during the reporting period, in tonnes CO2‑e, worked out using equation 23C (section 32D).

(2) In determining EF, LFG-BM and EPE, LFG-BM, emissions associated with biomethane production should be disregarded, including emissions from the operation of project biomethane facilities and any downstream transport emissions, during the reporting period, in tonnes CO2-e, worked out using equation 29 (section 32P).

Note: This ensures that double counting of project emissions does not occur. Project emissions from fuel and electricity used in biogas upgrading systems is accounted for when working out net displacement abatement in Division 3 of this Part.

32C Emissions from fuel use for landfill gas capture for biomethane

(1) The emissions from fuel used that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane during a reporting period (including transport), EF, LFG-BM, in tonnes CO2‑e, is worked out using the formula (equation 23B):

where:

EF, LFG-BM means the emissions from fuel used that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane during the reporting period.

i is a fuel type.

j is a greenhouse gas type.

QF, LFG-BM, i means the amount of fuel type i used that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane during the reporting period, in tonnes, kilolitres, cubic metres, or gigajoules, determined in accordance with the monitoring requirements.

ECi means the energy content factor for fuel type i, in gigajoules per tonne, gigajoules per kilolitre or gigajoules per cubic metre, set out in the NGER (Measurement) Determination.

Note: If QF, LFG-BM, i is measured in gigajoules, then ECi is not required (ECi=1).

EFij means the emission factor for greenhouse gas type j and fuel type i, in kilograms CO2‑e per gigajoule, set out in the NGER (Measurement) Determination.

(2) In determining QF, LFG-BM, i, if fuel is used by the project landfill in performing a function that was also performed before the implementation of the project, it is attributable to the operation of the project landfill only to the extent that the project has caused an increase in fuel use.

32D Emissions from purchased electricity use: conversion abatement

(1) The emissions from purchased electricity that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane during a reporting period, EPE, LFG-BM, in tonnes CO2‑e, is worked out using the formula (equation 23C):

where:

QPE, LFG-BM is the amount of purchased electricity that is specifically attributable to the operation of the project landfill for the treatment of landfill gas by landfill gas capture for biomethane during the reporting period, in kilowatt hours, determined in accordance with the monitoring requirements.

EFPE, LFG-BM is:

(a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document includes an emissions factor—that factor, in kilograms CO2‑e 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—that factor, in kilograms CO2‑e per kilowatt hour; or

(ii) otherwise—the emissions factor, in kilograms CO2‑e per kilowatt hour, for off‑grid electricity included in the NGA Factors document.

(2) For subparagraph (b)(i) of the definition of EFPE, LFG-BM in subsection (1), the emissions factor must be worked out:

(a) on a sent‑out basis; and

(b) using a measurement or estimation approach that is consistent with the NGER (Measurement) Determination.

Division 3—Working out displacement abatement

Subdivision 1—Overview of gases

32E Overview of gases accounted for in displacement abatement calculations

Greenhouse gases and emissions sources
Item	Relevant calculation	Emissions source	Greenhouse gas
1	Gross abatement amounts	The carbon dioxide emissions avoided by displacement of natural gas combustion by biomethane produced by the project.	Carbon dioxide (CO2)
2	Project emissions	Fuel consumption attributable to biogas upgrading at project biomethane facilities.	Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O)
3	Project emissions	Consumption of purchased electricity attributable to biogas upgrading at project biomethane facilities.	Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O)

Subdivision 2—Method for calculating net displacement abatement amount

32F Summary

The carbon dioxide equivalent net displacement abatement amount for a reporting period is worked out separately for each biomethane facility in the project. These amounts are then added together to give the total amount for the project.

For each project biomethane facility, the gross abatement amount is calculated as the natural gas combustion emissions displaced by the quantity of biomethane produced from biogas upgrading as part of the project. As biomethane and natural gas are identical from a fuel combustion standpoint, it is assumed that displacement occurs on a one-to-one basis.

The gross abatement amount is multiplied by the proportion of biogas that is eligible biogas, to prevent crediting of biomethane created from ineligible waste sources. The fraction of eligible biogas is worked out for each biogas source facility that supplies biogas during a reporting period. If a biogas source facility supplies a mixture of eligible and non-eligible biogas to a project during a reporting period, the fraction of eligible biogas from the biogas must be worked out in accordance with section 32M.

From this is deducted any emissions generated by operation of the project biomethane facility or associated with production of biomethane (for example, fuel and electricity use at a project biomethane facility, or fuel used in transporting biomethane).

32G Net displacement abatement amount

(1) The carbon dioxide equivalent net abatement amount attributable to the treatment of biogas by biomethane production for a reporting period, Adisplacement, in tonnes CO2-e, is worked out using the formula (equation 24):

where:

f is a project biomethane facility.

Adisplacement, f is:

(a) if the project biomethane facility net abatement amount for project biomethane facility f calculated using equation 25 (section 32H) is greater than or equal to zero—that amount; and

(b) if that amount is less than zero—zero.

(2) If, during the reporting period, the biomethane produced by a project biomethane facility cannot be reasonably expected to be combusted within Australia as a natural gas substitute, Adisplacement, f is taken to be zero.

32H Project biomethane facility net abatement amount

The project biomethane facility net abatement amount for a reporting period for project biomethane facility f, Adisplacement, f, in tonnes CO2-e, is worked out using the formula (equation 25):

where:

GAdisplacement, f is the gross abatement amount for a reporting period for project biomethane facility f, in tonnes CO2‑e, calculated using equation 26 (section 32K).

EAf is the eligible abatement fraction for the reporting period for project biomethane facility f, as a fraction, calculated using equation 27 (section 32M).

PEdisplacement, f is the project emissions for the reporting period for project biomethane facility f, in tonnes CO2‑e, calculated using equation 29 (section 32P).

32I Certain abatement must not be included in calculating net abatement amount

(1) For the purposes of working out the carbon dioxide equivalent net abatement amount attributable to biogas upgrading at project biomethane facilities for a reporting period Adisplacement, in tonnes CO2-e, using equation 24 (section 32G), the project proponent must not calculate displacement abatement attributable to biomethane production at a project biomethane facility during the reporting period if that biomethane is subsequently used as an energy source in a fuel switching emissions reduction activity at an emissions avoidance offsets project.

(2) In this section:

fuel switching emissions reduction activity means changing the energy sources or mix of energy sources in a way that gives rise to eligible carbon abatement and includes the following:

(a) changing the energy sources or mix of energy sources used by existing emissions-producing equipment as part of an industrial electricity and fuel efficiency project covered by the Carbon Credits (Carbon Farming Initiative—Industrial Electricity and Fuel Efficiency) Methodology Determination 2015;

(b) changing the energy sources or mix of energy sources used by existing emissions-producing equipment as part of an industrial and commercial emissions reduction project covered by the Carbon Credits (Carbon Farming Initiative—Industrial and Commercial Emissions Reduction) Methodology Determination 2021;

(c) changing energy sources (fuels and electricity) or the mix of energy sources for vehicles and land and sea transport project covered by the Carbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2015;

(d) changing the energy sources or mix of energy sources used at a facility as part of a facilities project covered by the Carbon Credits (Carbon Farming Initiative—Facilities) Methodology Determination 2015.

Subdivision 3—Gross abatement amount

32J Summary

The gross abatement for a project biomethane facility for a reporting period is the emissions avoided as the result of carrying out biomethane production during the reporting period.

32K Gross abatement amount for a project biomethane facility

The gross abatement amount for project biomethane facility f for a reporting period, GAdisplacement, f, in tonnes CO2-e, is worked out using the formula (equation 26):

where:

k is a biogas upgrading system at project biomethane facility f used during the reporting period.

QBM, k is the total volume of biomethane sent out by biogas upgrading system k during the reporting period, in cubic metres, determined in accordance with the monitoring requirements.

ECNG is the energy content factor for natural gas distributed in a pipeline, in gigajoules per cubic metre, set out in Part 2 of Schedule 1 to the NGER (Measurement) Determination.

EFNG, CO2 is the carbon dioxide (CO2) combustion emissions factor for natural gas distributed in a pipeline, in kilograms CO2-e per gigajoule, set out in Part 2 of Schedule 1 to the NGER (Measurement) Determination.

Note: Methane (CH4) and nitrous oxide (N2O) emissions are constant regardless of whether biomethane or natural gas is combusted, and hence do not result in displacement abatement.

Subdivision 4—Eligible abatement fraction

32L Summary

The eligible abatement fraction for a reporting period is the proportion of gross abatement associated with biomethane produced from eligible biogas during a reporting period. This excludes abatement created from biogas upgrading of ineligible biogas. Only the eligible abatement fraction of gross abatement is counted towards the net abatement to ensure biomethane produced from ineligible sources is not credited.

The eligible abatement fraction is expressed as a fraction, representing the proportion of biogas sent to a biogas upgrading system in the project that is eligible biogas. If 100% of biogas that undergoes biogas upgrading is eligible biogas, there is no deduction for ineligible abatement.

The eligible abatement fraction is worked out as the fraction of the quantity of eligible biogas supplied by all biogas source facilities during a reporting period to the total quantity of biogas treated during a reporting period. The quantity of eligible biogas sent from each biogas source facility is worked out by:

(i) direct measurement of the quantity of eligible biogas sent for biogas upgrading; or
(ii) estimation of the proportion of biogas sent for biogas upgrading that is eligible biogas.

32M Eligible abatement fraction for a project biomethane facility

The eligible abatement fraction for project biomethane facility f during a reporting period, EAf, as a fraction, is worked out using the formula (equation 27):

where:

g is a biogas source facility that sends biogas to project biomethane facility f during the reporting period.

QBG, El, g is the volume of eligible biogas sent to project biomethane facility f from biogas source facility g during the reporting period, in cubic metres, determined in accordance with section 32N.

QBG, g is the volume of biogas sent to project biomethane facility f from biogas source facility g during the reporting period, in cubic metres, determined in accordance with the monitoring requirements.

32N Determining the quantity of eligible biogas from a biogas source (QBG, El, g)

(1) The volume of eligible biogas sent to project biomethane facility f from biogas source facility g during a reporting period, QBG, El, g, in cubic metres, is worked out:

(a) if it is possible to measure QBG, El, g in accordance with the monitoring requirements—in accordance with the monitoring requirements; or

(b) if it is not possible to measure QBG, El, g in accordance with the monitoring requirements—in accordance with subsection (2).

Note: Measurement of QBG, El, g is possible if all biogas from a biogas source facility is eligible, or if eligible biogas is physically apportioned in such a way that permits direct measurement in accordance with the monitoring requirements.

(2) For paragraph (1)(b), the volume of eligible biogas sent to project biomethane facility f from biogas source facility g during a reporting period, QBG, El, g, in cubic metres, is worked out using the formula (equation 28):

where:

EBg is the proportion of biogas sent to project biomethane facility f from biogas source facility g during a reporting period that is eligible biogas, expressed as a fraction, determined in accordance with subsection (3).

(3) For subsection (2), the proportion of biogas sent to project biomethane facility f from biogas source facility g during a reporting period that is eligible biogas, EBg, expressed as a fraction, must be:

(a) determined using:

(i) the proportion of eligible biogas waste to biogas waste treated to produce biogas from biogas source facility g for a reporting period, by methane-producing capacity; or

(ii) the proportion of eligible biogas waste to biogas waste treated to produce biogas from biogas source facility g for a reporting period, by mass; or

(iii) another approach that can reasonably be expected to provide a fraction that accurately reflects the proportion of eligible biogas for biogas source facility g in a reporting period; and

(b) determined using an approach that can reasonably be expected to provide an accurate and conservative value for EBg; and

(4) If it is not possible to work out the volume of eligible biogas sent to project biomethane facility f from biogas source facility g during a reporting period, QBG, El, g (in cubic metres), in accordance with subsection (1), QBG, El, g is taken to be zero for a reporting period.

Subdivision 5—Displacement abatement project emissions

32O Summary

The displacement abatement project emissions for a reporting period are the emissions that result from a project biomethane facility undertaking biomethane production during the reporting period.

32P Project emissions: displacement abatement

(1) The project emissions for project biomethane facility f for a reporting period, PEdisplacement, f , in tonnes CO2-e, is worked out using the formula (equation 29):

where:

EF, displacement, f is the emissions from fuel that is specifically attributable to the operation of project biomethane facility f during the reporting period (including transport), in tonnes CO2-e, worked out using equation 30 (section 32Q).

EPE, displacement, f is the emissions from purchased electricity that is specifically attributable to the operation of project biomethane facility f during the reporting period, in tonnes CO2-e worked out using equation 31 (section 32R).

(2) In determining EF, displacement, f and EPE, displacement, f, fuel and purchased electricity used for landfill gas capture for biomethane and emissions destruction project activities are to be disregarded.

Note: Examples of fuel and purchased electricity uses to be disregarded include fuel and electricity used in the collection of landfill gas or transport of landfill gas to a biogas upgrading system. This ensures that double counting of project emissions does not occur. Project emissions from fuel and electricity used in landfill gas capture for biomethane and emissions destruction are accounted for when working out net displacement abatement in Division 2 of this Part.

32Q Emissions from fuel use: displacement abatement

(1) The emissions from fuel use that is specifically attributable to the operation of project biomethane facility f, or transport of biomethane produced at project biomethane facility f to an end use where it can reasonably be expected to be combusted within Australia as a natural gas substitute. during a reporting period, EF, displacement, f, in tonnes CO2-e, is worked out using the formula (equation 30):

where:

i is a fuel type.

j is a greenhouse gas type.

QF, displacement, f, i is the amount of fuel type i that is specifically attributable to the operation of project biomethane facility f, or transport of biomethane produced at project biomethane facility f to an end use where it can reasonably be expected to be combusted within Australia as a natural gas substitute, during the reporting period, in tonnes, kilolitres, cubic metres, or gigajoules, determined in accordance with the monitoring requirements.

ECi is the energy content factor for fuel type i, in gigajoules per tonne, gigajoules per kilolitre or gigajoules per cubic metre, set out in the NGER (Measurement) Determination.

Note: If QF, displacement, f, i is measured in gigajoules, then ECj is not required (ECj=1).

EFij is the emission factor for greenhouse gas type j and fuel type i, in kilograms CO2-e per gigajoule, set out in the NGER (Measurement) Determination.

(2) In determining QF, displacement, f, i, if fuel is used by the project biomethane facility or equipment used to transport biomethane in performing a function that was also performed before the implementation of the project, it is attributable to the operation of the project biomethane facility only to the extent that the project has caused an increase in fuel use.

32R Emissions from purchased electricity use: displacement abatement

(1) The emissions from purchased electricity that is specifically attributable to the operation of project biomethane facility f during a reporting period, EPE, displacement, f, in tonnes CO2-e, is worked out using the formula (equation 31):

where:

QPE, displacement, f is the amount of purchased electricity that is specifically attributable to the operation of project biomethane facility f during the reporting period, in kilowatt hours, determined in accordance with the monitoring requirements.

EFPE, displacement is

(a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document includes an emissions factor—that factor, in kilograms CO2-e 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—that factor, in kilograms CO2-e per kilowatt hour; or

(ii) otherwise—the emissions factor, in kilograms CO2-e per kilowatt hour, for off-grid electricity included in the NGA Factors document.

(2) For subparagraph (b)(i) of the definition of EFPE, displacement in subsection (1), the emissions factor must be worked out:

(a) on a sent-out basis; and

(b) using a measurement or estimation approach that is consistent with the NGER (Measurement) Determination.

[21] Part 5 heading—note

Omit “regulations and rules”, substitute “the regulations and legislative rules”

[22] After section 33

Insert:

33A General information that must be included in offsets report

An offsets report for a reporting period for a project must include the following information:

(a) if the project type is different from the type nominated in the section 22 application or section 128 application for the project or in a previous offsets report:

(i) the date on which the project type changed; and

(ii) details about how the project meets the requirements of the changed project type, in accordance with sections 12A to 12E;

(b) a list of the project activities that were carried out at the project landfill or each project biomethane facility (as the case may be) involved in the project including:

(i) details of any additional project activity that began to be carried out after the section 22 application or section 128 application was made or since an offsets report was given to the Regulator, and the date on which it commenced; and

(ii) details of any project activity that had previously been carried out, that has stopped being carried out since an offsets report was given to the Regulator, and the date on which it stopped;

(d) if landfill gas capture for biomethane has been carried out as part of the project—evidence that biogas sent to biogas upgrading systems is used to produce biomethane that can reasonably be expected to be combusted within Australia as a natural gas substitute;

Note: Evidence that biomethane produced by the project can reasonably be expected to be combusted within Australia as a natural gas substitute may include invoices or other records of commercial transactions in which biomethane is traded as a substitute for natural gas for a use that results in its combustion.

(e) if biomethane production has been carried out as part of the project:

(i) details of the source of any biogas treated during the reporting period;

(ii) details of the biogas upgrading systems used for the project;

(iii) details about the end use, or anticipated end use, of the biomethane produced during the reporting period;

(iv) details about the measurement of the volume of biomethane sent out by biogas upgrading systems (QBM, k) in accordance with the monitoring requirements, and the point at which biomethane flow is measured;

(v) a declaration from the project proponent that biomethane produced by all project biomethane facilities involved in the project during the reporting period can reasonably be expected to be combusted within Australia as a natural gas substitute.

33B Information about net abatement calculations that must be included in offsets report

An offsets report for a reporting period for a project must include details of the net abatement calculations for the reporting period, including the following:

(a) the output of each equation in this determination used to calculate the net abatement amount for the reporting period;

(b) if landfill gas capture for biomethane is carried out as part of the project, details about the biomethane production loss factor used to calculate net abatement;

(c) if biomethane production is carried out as part of the project, details of the displacement abatement calculations (that is, calculations made under Division 3 of Part 4), including the following:

(i) information on volumes and methane concentrations of biomethane produced during the reporting period;

(ii) details of the volumes and eligible abatement fractions of biogas treated by each project biomethane facility during the reporting period;

(iii) information on the sources and volumes of project emissions from treatment of biogas by biogas upgrading;

(iv) if QBG, El, g is determined in accordance with subsection 32N(2) for a reporting period:

(A) an explanation of how the proportion of biogas that is eligible biogas, EBg, was determined; and

(B) evidence or data supporting how EBg was calculated; and

33C Details of certain changes to a project must be included in offsets report

An offsets report for a reporting period for a project must include details of any of the following changes made to the project since the section 22 application or section 128 application for the project was made or since the last offsets report was given to the Regulator:

(a) the project landfill being changed;

(b) a project biomethane facility being added to the project, or an existing project biomethane facility being changed, in which case, the report must also include:

(i) the intended recipients of biomethane produced by the new or changed project biomethane facilities; and

(ii) a declaration from the project proponent that biomethane produced by the new or changed project biomethane facility can reasonably be expected to be combusted within Australia as a natural gas substitute;

(d) any other change in the information provided in the section 22 application or section 128 application for the project, in accordance with sections 13A to 13B.

[23] Section 36

Repeal the section, substitute:

36 Requirements to monitor certain parameters

(1) The project proponent for a landfill gas (electricity generation) project must monitor and determine a parameter set out in an item of the following table in accordance with the instructions in the item.

Monitored parameters
	Parameter	Description	Unit	Measurement procedure (including frequency as required)	Determination of parameter from measurements
1	QEn, h	Energy content of the landfill gas sent to combustion device h	Gigajoules	Estimated under Division 2.3.6 of the NGER (Measurement) Determination or section 6.5 of that Determination using measurement criteria AAA.	Cumulative value for reporting period.
2	Oh, a	Operation of combustion device h during hour a	1 or 0	If the combustion device is a flare, operation is determined for each minute using temperature measurement. If temperature is measured at 500 degrees Celsius or higher for 40 minutes or more in an hour, then Oh, a = 1. Otherwise Oh, a = 0. For all other combustion devices, operation for each minute is to be determined in accordance with manufacturer’s specifications. If the device operates according to manufacturer’s specifications for the entire hour then Oh, a = 1. Otherwise Oh, a = 0. All measuring equipment must be used in accordance with appropriate measuring requirements.	For the purpose of calculating Mcom, h in equation 9A (above), the value of Oh, a determined for an hour based on the operation of the combustion device must be paired to the cumulative value of Msent, h for the same hour.
3	QLFG, h	Landfill gas sent to combustion device or biogas upgrading system h	Cubic metres	Estimated under Division 2.3.6 of the NGER (Measurement) Determination using measurement criteria AAA. Frequency—continuously.	For equation 9A, cumulative values for a time interval not greater than 1 hour must be paired to measurements of WLFG, CH4 for the time interval. Otherwise, the measurements must be paired to measurements of WLFG, CH4 for the same measurement interval.
4	QEG, h	Electricity (supplied to the grid or used on‑site) generated by internal combustion engine h	Megawatt hour	Estimated under Part 6.1 of the NGER (Measurement) Determination. Measure only the electricity produced from the combustion of landfill gas (not from the combustion of other fuel types).	Cumulative value for the reporting period.
5	QF, LFG-BM, i	Amount of fuel type i used for landfill gas capture for biomethane activities	Tonnes, kilolitres, cubic metres or gigajoules	Project proponent may choose from the following: (a) estimated in accordance with Division 2.2.5, 2.3.6 or 2.4.6 of the NGER (Measurement) Determination (as appropriate to the fuel type); (b) evidenced by invoices, contractual arrangements or industry metering records. Measure only the fuel used to operate the project in relation to landfill gas capture for biomethane activities. Frequency—continuous.	Cumulative value for the reporting period.
6	QEP, LFG-BM	Amount of purchased electricity used for landfill gas capture for biomethane activities	Kilowatt hours	Evidence by invoices, contractual arrangements or industry metering records. If QEP, LFG-BM is measured in gigajoules, the amount of kilowatt hours must be calculated by dividing the amount of gigajoules by the conversion factor of 0.0036. Measure only the electricity used to operate the project in relation to landfill gas capture for biomethane activities. Frequency—continuous.	Cumulative value for the reporting period.
7	WLFG, CH4	Fraction of the volume of landfill gas that is methane	Fraction	Estimated under Division 2.3.6 of the NGER (Measurement) Determination. Frequency—continuously. Measured at the same conditions as QLFG, h.	For the purpose of equation 9A, average values for a time interval not greater than 1 hour must be paired to measurements of QLFG, h for the time interval. Otherwise, the measurements must be paired to measurements of QLFG, h for the same measurement interval.
8	QBM, k	Volume of biomethane sent out by biogas upgrading system k	m3	Estimated under Division 2.3.6 of the NGER (Measurement) Determination using measurement criteria AAA. Frequency—continuously.	Cumulative value for the reporting period. QBM, k is to be measured at a point that is after the biomethane leaves the biogas upgrading system and at which the biomethane is suitable for combustion as a natural gas substitute.
9	WBM, CH4, k	Proportion of the volume of biomethane from biogas upgrading system k, QBM, k, that is methane	Fraction	Measured: (a) using an inline gas analyser that analyses gas composition at a point after biogas upgrading is complete; and (b) to an accuracy of +/ 3% absolute; and (c) in accordance with the instrument manufacturer’s instructions and the relevant Australian and New Zealand standards.	The measurements must be paired to measurements of QBM, k for the same measurement interval.
10	QBG, g	Volume of biogas sent to a project biomethane facility from biogas source facility g	m3	Estimated under Division 2.3.6 of the NGER (Measurement) Determination using measurement criteria AAA. Frequency—continuously.	Cumulative value for the reporting period.
11	QBG, El, g	Volume of eligible biogas sent to a project biomethane facility from biogas source facility g	m3	Estimated under Division 2.3.6 of the NGER (Measurement) Determination using measurement criteria AAA. Frequency—continuously.	QBG, El, g must only be measured in accordance with this item if it is possible to directly measure the volume of eligible biogas sent to a project biomethane facility from biogas source facility g. Cumulative value for the reporting period.
12	QF, displacement, f, i	Quantity of each fuel type i used by project biomethane facility f	Either: (a) t (for solid fuel); or (b) m3(for gas fuel); or (c) kL (for liquid fuel); or (d) GJ	(a) monitored in accordance with section 2.25, 2.36 or Division 2.4.6 of the NGER (Measurement) Determination (as applicable to the fuel type); or (b) evidenced by invoices, contractual arrangements or industry metering records. Frequency—continuous.	Cumulative value for the reporting period.
13	QPE, displacement, f	Quantity of electricity purchased by project biomethane facility f	kWh or GJ	Evidenced by invoices, contractual arrangements or industry metering records. If EPE, displacement, f is measured in gigajoules, the quantity of kilowatt hours must be calculated by dividing the amount of gigajoules by the conversion factor of 0.0036. Frequency—continuous.	Cumulative value for the reporting period.

(2) Any equipment or device used to monitor a parameter must be calibrated by an accredited third-party technician at intervals, and using methods, that are in accordance with the manufacturer’s specifications.

(3) In this section:

appropriate measuring requirements, in relation to a measurement or estimate, means requirements that are consistent with:

(a) requirements that apply in relation to similar measurements or estimates under the NGER (Measurement) Determination; or

(b) relevant standards and other requirements under the National Measurement Act 1960.

i means a fuel type.

[24] Subsection 37(1)—table

Repeal the table, substitute:

Consequence of not meeting requirement to monitor certain parameters
Item	Parameter	Determination of parameter for non‑monitored period
1	WLFG, CH4	The parameter is: (a) for any cumulative period of up to 3 months in any 12 months of a crediting period for the project—the amount set out in section 5.14C of the NGER (Measurement) Determination multiplied by 0.9; and (b) for any period in excess of that 3 months—the amount set out section 5.14C of the NGER (Measurement) Determination multiplied by 0.5.
2	Each of the following: (a) QEn, h; (b) QLFG, h; (c) QEG, h; (d) QBM, k; (e) QBG, g; (f) QBG El, g; (g) QF, displacement, i; (h) QPE displacement.	The project proponent must make a conservative estimate of the parameter 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.

[25] Subsection 37(2)

Omit “or regulations or rules made under the Act,”, substitute “the regulations or the legislative rules,”.

[26] Subsection 37(2)—note

Omit “regulations or rules”, substitute “regulations or legislative rules”.

[27] Schedule 1

(1) Omit “MReg,D” (wherever occurring), substitute “MReg, D”.

(2) Omit “WB,Reg” (wherever occurring), substitute “WB, Reg”.

(3) Omit “MGen,y” (wherever occurring), substitute “MGen, y”.

[28] Subclause 1(1) of Schedule 1

(1) Omit “the reporting”, substitute “a reporting”.

(2) Omit “WB,Reg”, substitute “WB, Reg”.

[29] Subclause 2(2) of Schedule 1

(1) Omit “equation 21”, substitute “equation 32”.

(2) Omit “equation 22”, substitute “equation 33”.

(3) Omit “WB,Reg”, substitute “WB, Reg”.

(4) Omit “MGen,y”, substitute “MGen, y”.

[30] Clause 3 of Schedule 1

(1) Omit “equation 22”, substitute “equation 33”.

(2) Omit “equation 23”, substitute “equation 34”.

(3) Omit “MReg,FI”, substitute “MReg, FI”.

(4) Omit “MReg,FI”, substitute “MReg, FI”.

(5) Omit “MReg,D”, substitute “MReg, D”.

[31] Subclause 4(1) of Schedule 1

(1) Omit “equation 23”, substitute “equation 34”.

(2) Omit “MReg,FI”, substitute “MReg, FI”.

(3) Omit “type x” (wherever occurring), substitute “type x”.

[32] Subclause 6(2) (table items 5 and 6 column titled “Conversion to WB, Reg”)

Omit “year y”, substitute “year y”.

[33] Subclause 7(2) of Schedule 1

(1) Omit “WCom,Bef”, substitute “WCom, Bef”.

(2) Omit “year y”, substitute “year y”.

[34] Subclause 8(4) of Schedule 1

Omit “WB,Re”, substitute “WB, Reg”.