National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Production Variables Update) Rules 2023

I, Chris Bowen, Minister for Climate Change and Energy, make the following rules.

Dated 29 September 2023   

Chris Bowen

Minister for Climate Change and Energy

Contents

1  Name

2  Commencement

3  Authority

4  Schedules

Schedule 1—Amendments

1  Name

  This instrument is the National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Production Variables Update) Rules 2023.

2  Commencement

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

Note: This table relates only to the provisions of this instrument as originally made.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

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

3  Authority

  This instrument is made under section 22XS of the National Greenhouse and Energy Reporting Act 2007.

4  Schedules

  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1—Amendments

National Greenhouse and Energy Reporting (Safeguard Mechanism) Rule 2015

1  Section 4 (definition of Safeguard Mechanism document)

Repeal the definition, substitute:

Safeguard Mechanism document means the document of that name published on the Department’s website, as in force from time to time.

2  At the end of subsection 20(6)

Add:

Note: Subsection 91(2) modifies the operation of this provision where the transitional production variable for the facility is run-of-mine coal, reservoir carbon dioxide from existing gas fields, or natural gas throughput.

3  At the end of Part 6

Add:

Note: The number applies regardless of whether the production variable was applicable to the facility at any time during a historical financial year, or otherwise.

4  Subsection 7(3) of Schedule 1

Omit “1.85”, substitute “1.94”:

5  Section 12 of Schedule 1

Repeal the section, substitute:

12  Monoammonium phosphate

 (1) Tonnes of monoammonium phosphate ((NH4)H2PO4) products that:

 (a) have a concentration of monoammonium phosphate equal to or greater than 70%; and

 (b) are produced as part of carrying on the monoammonium phosphate production activity at the facility; and

 (c) have a free moisture content less than 2.5%; and

 (d) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing monoammonium phosphate through:

 (a) the chemical transformation of phosphate rock to phosphoric acid (H3PO4); and

 (b) the chemical transformation of that phosphoric acid and anhydrous ammonia (NH3) to produce monoammonium phosphate.

 (3) The activity in subsection (2) is the monoammonium phosphate production activity.

 (4) The default emissions intensity is 0.088 t CO2-e per tonne of monoammonium phosphate products.

12A  Diammonium phosphate

 (1) Tonnes of diammonium phosphate ((NH4)2HPO4) products that:

 (a) have a concentration of diammonium phosphate equal to or greater than 70%; and

 (b) are produced as part of carrying on the diammonium phosphate production activity at the facility; and

 (c) have a free moisture content less than 2.5%; and

 (d) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing diammonium phosphate through:

 (a) the chemical transformation of phosphate rock to phosphoric acid (H3PO4); and

 (b) the chemical transformation of that phosphoric acid and anhydrous ammonia (NH3) to produce diammonium phosphate.

 (3) The activity in subsection (2) is the diammonium phosphate production activity.

 (4) The default emissions intensity is 0.078 t CO2-e per tonne of diammonium phosphate products.

6  Subsection 16(2) of Schedule 1

Repeal the subsection, substitute:

 (a) coal production;

 (b) active mine ventilation, including the operation of ventilation fans at the mine.

7  Subsection 17(2) of Schedule 1

Repeal the subsection, substitute:

8  Subsection 17(3) of Schedule 1

Repeal the subsection, substitute:

9  Division 3 of Part 13 of Schedule 1

Repeal the Division.

10  Division 4 of Part 13 of Schedule 1

Renumber as Division 3.

11  Subsection 20(1) of Schedule 1

Omit “Tonnes of iron ore”, substitute “Tonnes of run-of-mine iron ore”.

12  Subsection 20(4) of Schedule 1

Omit “tonne of iron ore”, substitute “tonne of run-of-mine iron ore”.

13  Subsection 35(3) of Schedule 1

Repeal the subsection, substitute:

 (3) The default emissions intensity is 0.928 t CO2-e per tonne of reservoir carbon dioxide.

14  Paragraph 35A(3)(a) of Schedule 1

Omit “other a field”, substitute “other than a field”.

15  Subsection 36(1) of Schedule 1

Repeal the subsection, substitute:

 (1) In this Part, the activity of integrated iron and steel manufacturing is the chemical and physical transformation of iron ore into crude iron, crude carbon steel products and hot‑rolled carbon steel products involving all of the following processes:

 (a) the chemical and physical transformation of iron ore into iron ore sinter or iron ore pellets;

 (b) the chemical and physical transformation of iron ore feed, including iron ore sinter and iron ore pellets, into molten or metallic iron that includes the reduction of oxides of iron;

 (c) either, or both of, the chemical or physical transformation of molten or metallic iron (with or without cold ferrous feed such as pig iron, flat iron and ferrous scrap), into 1 or more of the following:

 (i) continuously cast carbon steel products;

 (ii) ingots of carbon steel;

 (iii) hot‑rolled carbon steel products, which commenced hot‑rolling at a temperature above 800 °C;

 (iv) hot briquetted iron.

16  Subsection 36(2) of Schedule 1

Omit “(such as ferrous scrap, pig iron and flat iron)”, substitute “(such as ferrous scrap, hot briquetted iron, pig iron and flat iron)”.

17  Section 56 of Schedule 1

Repeal the section, substitute:

56  COD removed from wastewater (domestic and commercial)

 (1) Tonnes of COD removed, calculated in accordance with subsection (4).

 (2) The metric in subsection (1) is applicable to a facility whose primary activity is the handling of either or both of domestic or commercial wastewater and which reports emissions under Division 5.3 of the NGER (Measurement) Determination.

 (3) The default emissions intensity is 0.513 t CO2-e per tonne of COD removed.

 (4) For paragraph (1), COD removed is given by the following equation:

  COD removed = CODmeasured entering – (CODin effluent leaving site + CODin sludge leaving site)

where:

CODmeasured entering is the COD entering the site measured consistently with the requirements in Division 5.3 of the NGER (Measurement) Determination.

CODin effluent leaving site is the COD leaving the site measured consistently with the requirements in Division 5.3 of the NGER (Measurement) Determination.

CODin sludge leaving site is COD in sludge leaving the site measured consistently with the requirements in Division 5.3 of the NGER (Measurement) Determination.

 (5) In this section:

COD or chemical oxygen demand means the total material available for chemical oxidation (both biodegradable and non‑biodegradable) measured in tonnes.

56A  Nitrogen removed from wastewater (domestic and commercial)

 (1) Tonnes of nitrogen removed, calculated in accordance with subsection (4).

 (2) The metric in subsection (1) is applicable to a facility whose primary activity is the handling of either or both of domestic or commercial wastewater and which reports emissions under Division 5.3 of the NGER (Measurement) Determination.

 (3) The default emissions intensity is 4.48 t CO2-e per tonne of nitrogen removed.

 (4) For paragraph (1), nitrogen removed is given by the following equation:

  nitrogen removed = Nmeasured entering – (Nin effluent leaving site + Nin sludge leaving site)

where:

Nmeasured entering is the nitrogen entering the site measured consistently with the requirements in Division 5.3 of the NGER (Measurement) Determination.

Nin effluent leaving site is the nitrogen leaving the site measured consistently with the requirements in Division 5.3 of the NGER (Measurement) Determination.

Nin sludge leaving site is the nitrogen in sludge leaving the site measured consistently with the requirements in Division 5.3 of the NGER (Measurement) Determination.

18  Section 61 of Schedule 1

Repeal the section, substitute:

61  Natural gas throughput

 (1) Gigajoules of natural gas that are received by the facility as part of carrying on the natural gas transmission activity at the facility.

 (2) The metric in subsection (1) is applicable to a facility that conducts the natural gas transmission activity and reports emissions under Division 3.3.7 of the NGER (Measurement) Determination.

 (3) The default emissions intensity is 0.000518 t CO2-e per gigajoule of natural gas.

19  Subsection 62(1) of Schedule 1

Insert in the appropriate alphabetical position:

supplementary cementitious material means any mineral additive to cement which meets the minimum requirements for such additives set out in any of Australian Standards AS 3582.1:2016, AS 3582.2:2016, AS 3582.3:2016 or AS 3582.4:2022, or any other specific contract and export specifications.

Note: In 2023, each of the Australian Standards was available from http://www.standards.org.au.

20  Section 64 of Schedule 1

Repeal the section, substitute:

64  Cement produced from clinker and supplementary cementitious material

 (1) Combined:

 (a) tonnes of cement on a dry weight basis that is:

(i) produced as part of carrying on the cement production activity at the facility; and

(ii) attributable to Portland cement clinker produced as part of carrying on the clinker production activity at the facility in accordance with subsection (5); and

(iii) of saleable quality; and

 (b) tonnes of supplementary cementitious material (other than supplementary cementitious material added as part of carrying on the cement production activity at the facility) that is:

(i) supplied by a related entity; and

(ii) added to any amount of cement covered by paragraph (a).

 (2) In this section, related entity means any of the following:

 (a) the responsible emitter for the facility;

 (b) an entity within the same corporate group as the responsible emitter;

 (c) an entity:

(i) for which the chief executive officer is also the chief executive officer of the responsible emitter; and

(ii) which has substantially the same operating, health and safety, and environmental policies as the responsible emitter.

 (d) a joint venture entity of which the responsible emitter or a member of the responsible emitter’s corporate group has at least 50% ownership.

 (3) The metric in subsection (1) is applicable to a facility that:

 (a) conducts the clinker production activity at the facility; and

 (b) conducts the activity of producing cement through the physical transformation of Portland cement clinker into cement through a process of comminution or blending with gypsum or other additives (the cement production activity); and

 (c) if the metric in section 63 of this Schedule is applicable to the facility—also uses that prescribed production variable.

 (4) The default emissions intensity is 0.708 t CO2-e per tonne of cement and supplementary cementitious material.

 (5) For paragraph (1)(a), cement is attributable to Portland cement clinker produced as part of carrying on the clinker production activity at the facility in accordance with the following equation:

  where:

  Cea is the cement attributable to Portland cement clinker produced as part of carrying on the clinker production activity at the facility, in tonnes.

  Cef is the total amount of cement produced at the facility (f) in the reporting year, in tonnes, that is of saleable quality.

  Clf is the amount of Portland cement clinker, in tonnes, produced as part of carrying on the clinker production activity at the facility (f) in the reporting year and used, or intended to be used, to produce cement at the facility, not including any tonnes of Portland cement clinker counted for the metric in section 63 of this Schedule.

  Cli is the amount of Portland cement clinker, in tonnes, not covered by Clf and imported in the reporting year to produce cement at the facility (whether or not the Portland cement clinker was produced in or outside of Australia).

 (6) For paragraph 4.23C(2)(b) of the NGER Regulations, the following information must be included in a report under the Act in calculating the amount of the production variable for a reporting year:

 (a) the total amount of Portland cement clinker produced at a facility in the reporting year (whether or not it is used, exported from the facility or stockpiled);

 (b) the value of each variable in the equation in subsection (5);

 (c) the total amount of supplementary cementitious material in a reporting year which satisfies paragraph 64(1)(b) of this Schedule;

 (d) evidence demonstrating the amount in paragraph (c) was added to cement covered by paragraph 64(1)(a) of this Schedule;

 (e) if the supplementary cementitious material was provided by an entity other than the responsible emitter for the facility, evidence to show the entity was a related entity.

21  Paragraph 72(1)(a) of Schedule 1

Omit “mass;”, substitute “mass on an annual average basis;”.

22  Subsection 72(2) of Schedule 1

Repeal the subsection, substitute:

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing copper anode through the physical and chemical transformation of copper sulphide concentrates in a smelter, with or without secondary inputs such as copper scrap, to produce copper anodes (the copper anode production activity).

Note: Copper anode is often an input into the production of copper cathode at the same facility.

23  At the end of Schedule 1

Add:

Part 47—Lithium hydroxide

98  Lithium hydroxide

 (1) Tonnes of lithium hydroxide monohydrate (LiOH.H2O) that:

 (a) has a concentration of lithium hydroxide monohydrate equal to or greater than 98.9% by weight; and 

 (b) is produced as part of carrying on the lithium hydroxide refining production activity at the facility; and

 (c) is of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing lithium hydroxide monohydrate that has a concentration of lithium hydroxide monohydrate equal to or greater than 98.9% by weight (the lithium hydroxide refining production activity).

Note: The default emissions intensity for this prescribed production variable is yet to be calculated and specified in the Schedule.

24  Section 1 of Schedule 2 (table)

Repeal the table, substitute: