National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Production Variables Update) Rules 2024

Dated  22 April 2024  

Chris Bowen

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 2024.

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Note: This table relates only to the provisions of this instrument as originally made.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  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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  Subsection 11(1) (definition of EIB)

Repeal the definition, substitute:

 EIB, in relation to a production variable for the facility for the financial year, is:

 (a) if there is a best practice emissions intensity number for the production variable for the financial year—that number; or

 (b) if there is no best practice emissions intensity number for the production variable for the financial year, and the production variable is a historical production variable for the facility—zero; or

 (c) otherwise—the default emissions intensity number for the production variable for the financial year.

Note: The best practice emissions intensity number of tonnes of reservoir carbon dioxide from new gas fields is zero (see section 35A of Schedule 1).

2  Subsection 12(2)(b)

Omit “a historical financial year”, substitute “the historical financial year”.

3  After section 14

Insert:

14A  Application specifying primary steel as production variable may specify steelmaking production variables as historical production variables

 (1) An application under section 14 for an emissions intensity determination that specifies primary steel as a production variable may also specify the following production variables (the steelmaking production variables) as historical production variables for the facility:

 (a) the primary iron (steelmaking) production variable; and

 (b) the ferrous feed (steelmaking) production variable.

Note: Section 19A applies to an application which specifies the steelmaking production variables as historical production variables.

 (2) Despite paragraph 12(2)(b), the steelmaking production variables may be specified as historical production variables for a facility even if one or both of them was a non-commercial production variable for the facility for a historical financial year.

 (3) Despite paragraph 16(2)(b), covered emissions of greenhouse gases from the operation of a facility during a particular historical financial year that are of a particular kind may be attributed to both a steelmaking production variable and to the primary steel production variable.

 (4) Despite paragraph 16(3)(d), covered emissions of greenhouse gases from the operation of a facility during a particular historical financial year may be attributed to both a steelmaking production variable and to the primary steel production variable.

Note: Emissions associated with the production of primary iron and continuously cast carbon steel products and ingots of carbon steel would also be relevantly associated with primary steel.

 (5) In this Part:

   continuously cast carbon steel products and ingots of carbon steel (manufacture of carbon steel from cold ferrous feed) production variable means the production variable in section 44 of Schedule 1.

  ferrous feed (steelmaking) production variable means the production variable in section 44A of Schedule 1.

  primary iron (steelmaking) production variable means the production variable in section 39A of Schedule 1.

  primary iron production variable means the production variable in section 39 of Schedule 1.

  primary steel production variable means the production variable in section 41 of Schedule 1.

  steelmaking production variables has the meaning given by subsection (1).

4  After subsection 16(2)

Insert:

 (2A) To avoid doubt, the Safeguard Mechanism document may specify that a particular kind of covered emissions is relevant to the default emissions intensity of a production variable notwithstanding that the specified kind of covered emissions was not taken into account when the default emissions intensity was calculated.

5  After section 19

Insert:

19A  Emissions intensity determination in relation to application specifying steelmaking production variables as historical production variables

 (1) This section applies if an application under section 14 for an emissions intensity determination specifies the steelmaking production variables as historical production variables, and the Regulator decides under subsection 19(1) to make the determination.

 (2) The following production variables are taken to be historical production variables for the facility:

 (a) the primary iron production variable; and

 (b) the continuously cast carbon steel products and ingots of carbon steel (manufacture of carbon steel from cold ferrous feed) production variable.

 (3) Subparagraph 19(3)(a)(i) applies to the production variables mentioned in subsection (2) instead of the steelmaking production variables.

Note: Subparagraph 19(3)(a)(i) requires a determination to specify the facility-specific emissions intensity number of any historical production variable for the facility.

 (4) For the purpose of subsection 19(3)(a)(i), the Regulator must consider the designated historical information included in the application:

 (a) in relation to the primary iron (steelmaking) production variable—as if that information was instead in relation to the primary iron production variable; and

 (b) in relation to the ferrous feed (steelmaking) production variable—as if that information was instead in relation to the continuously cast carbon steel products and ingots of carbon steel (manufacture of carbon steel from cold ferrous feed) production variable.

6  Subsection 20(6) (Note)

Repeal the note, substitute:

Note: Subsections 91(2) and 92(2) modify 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, natural gas throughput, or lithium hydroxide.

7  Section 23

 Repeal the section, substitute:

23  Requirements for statement about related production variable

 (1) A particular production variable for a facility and another production variable for the facility meet the requirements of this section if any of subsections (2), (3) or (4) apply.

 (2) This subsection applies if:

 (a) the particular production variable:

 (i) is not a historical production variable for the facility; or

 (ii) is a historical production variable for the facility but it was not reasonably practicable for the application for the determination to include the designated historical information about that production variable; and

 (b) the particular production variable is substantially similar to the other production variable; and

 (c) the particular production variable and the other production variable are measured using the same units or mutually convertible units; and

 (d) the facility’s production of the particular production variable does not involve the installation of new equipment that is likely to increase the facility’s capacity to increase the total quantity of the particular production variable and the other production variable by more than 20% (relative to that quantity in the last financial year before the equipment is installed) in any of the years to which the determination is to apply.

 (3) This subsection applies if:

 (a) the particular production variable:

 (i) is not a historical production variable for the facility; or

 (ii) is a historical production variable for the facility but it was not reasonably practicable for the application for the determination to include the designated historical information about that production variable; and

 (b) the particular production variable is the hot-rolled long products (cold ferrous feed) production variable and the other production variable is the hot-rolled long products produced at primary steel manufacturing facilities production variable.

 (4) This subsection applies if:

 (a) the particular production variable:

 (i) is not a historical production variable for the facility; or

 (ii) is a historical production variable for the facility but it was not reasonably practicable for the application for the determination to include the designated historical information about that production variable; and

 (b) the particular production variable is the hot-rolled flat products (cold ferrous feed) production variable and the other production variable is the hot-rolled flat products produced at primary steel manufacturing facilities production variable.

 (5) In this section:

  hot-rolled flat products (cold ferrous feed) production variable means the production variable in section 46 of Schedule 1.

  hot-rolled flat products produced at primary steel manufacturing facilities production variable means the production variable in section 43 of Schedule 1.

  hot-rolled long products (cold ferrous feed) production variable means the production variable in section 45 of Schedule 1.

  hot-rolled long products produced at primary steel manufacturing facilities production variable means the production variable in section 42 of Schedule 1.

8  Subsection 30(1) (definition of NLCH4)

 Omit “scope 1 greenhouse gases”, substitute “covered emissions of greenhouse gases”.

9  Subsection 34(1) (definition of ERCy)

 Repeal the definition, substitute:

  ERCy is:

 (a) if the table in section 31 does not specify a default emissions reduction contribution for the previous financial year—1;

 (b) otherwise—the emissions reduction contribution for the facility for the previous financial year.

10  Subsection 36(1) (definition of PE)

 Repeal the definition, substitute:

 PE is the number equal to the difference between:

 (a) the amount of covered emissions of greenhouse gases (in t CO2‑e) from the operation of the facility during the first adjusted financial year for the facility; and

 (b) the hypothetical baseline of the facility for the first adjusted financial year for the facility.

11  Subsection 36(4) (definition of PE)

 Repeal the definition, substitute:

 PE is the number equal to the difference between:

 (a) the amount of covered emissions of greenhouse gases (in t CO2‑e) from the operation of the facility during the first adjusted financial year for the facility; and

 (b) the hypothetical baseline of the facility for the first adjusted financial year for the facility.

12  Paragraph 58B(3)(b)

Repeal the paragraph, substitute:

 (b) no Australian carbon credit units attributable to the avoidance of covered emissions of greenhouse gases from the operation of the facility were issued under the Carbon Credits (Carbon Farming Initiative) Act 2011 in the current financial year or the previous financial year, in respect of an eligible offsets project that reduced covered emissions of greenhouse gases from the operation of the facility.

13  At the end of section 58B

Add:

 (4) A facility is also an eligible facility, for the current financial year, if:

 (a) the facility was a designated large facility for another financial year (the last covered financial year); and

 (b) the facility has not been a designated large facility for any of the financial years beginning after the last covered financial year; and

 (c) the current financial year is one of the 10 financial years following the earlier of:

 (i) the last year for which safeguard mechanism credits were not issued to a person in relation to the facility; and

 (ii) the financial year 3 years after the last covered financial year; and

 (d) the facility was a designated large facility in at least:

 (i) 3 historical financial years; or

 (ii) 2 of the financial years in the period of 4 financial years immediately preceding the last covered financial year; and

 (e) subsection (3) applies to the facility for the current financial year; and

 (f) no safeguard mechanism credits have been issued to a person in relation to the facility for the financial year after the last covered financial year.

14  Paragraph 67(4)(b)

Omit “65(1)”, substitute “66(1).

15  Paragraph 71(3)(d)

Renumber as paragraph 71(3)(c).

16  Subsection 71(4)

Omit “a baseline”, substitute “an emissions intensity”.

17  Subsection 91(1)

Repeal the subsection.

18  After Division 6 of Part 6

Add:

 (1) If a default emissions intensity is being used in relation to a baseline emissions number for the financial year beginning on 1 July 2023, the default emissions intensity is to be determined as the value in force immediately after the commencement of Schedule 1 to the National Greenhouse and Energy Reporting (Safeguard Mechanism) Amendment (Production Variables Update) Rules 2024.

 (2) For subsection 20(6), if the transitional production variable for the facility is lithium hydroxide, the facility‑specific emissions intensity number is taken to be 3.26 CO2-e per tonne of lithium hydroxide monohydrate.

19  Subsection 6(3) of Schedule 1

Omit “0.521”, substitute “0.593”.

20  Subsection 13(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 sodium cyanide through:

 (a) the chemical transformation of methane, anhydrous ammonia (NH3) and air to produce hydrogen isocyanine (HCN); and

 (b) the chemical transformation of that hydrogen isocyanine and caustic soda to produce sodium cyanide (NaCN).

21  Subsection 17(3) of Schedule 1

Omit “of coal”, substitute “of run-of-mine coal”.

22  At the end of section 17 of Schedule 1

Add:

 (4) The best practice emissions intensity is 0.00592 t CO2‑e per tonne of run‑of‑mine coal.

23  At the end of section 20 of Schedule 1

Add:

 (5) The best practice emissions intensity is 0.00188 t CO2-e per tonne of run‑of‑mine iron ore.

24  Section 23 of Schedule 1 (note)

Omit “prescribed”.

25  At the end of Part 17 of Schedule 1

Add:

23A  Lithium ore

 (1) Tonnes of lithium ore that:

 (a) are produced as part of carrying on the lithium ore mining activity at the facility; and

 (b) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that undertakes lithium ore mining activity through the physical extraction of lithium bearing minerals.

 (3) The activity in subsection (2) is the lithium ore mining activity.

 (4) The default emissions intensity is 0.0151 t CO2-e per tonne of lithium ore.

26  Paragraph 24(1)(e)

Repeal the paragraph, substitute:

 (e) is not eligible to be the bauxite, manganese ore, iron ore or lithium ore production variable.

27  At the end of section 24 of Schedule 1

Add:

 (5) The best practice emissions intensity is 0.00247 t CO2-e per tonne of run‑of‑mine metal ore.

28  At the end of section 26 of Schedule 1

Add:

 (6) The best practice emissions intensity is 0.0000360 t CO2-e per gigajoule of products covered by subsection (1) and (2).

29  At the end of section 27 of Schedule 1

Insert:

 (5) The best practice emissions intensity is 0.000320 t CO2‑e per gigajoule of crude oil and condensate.

30  At the end of section 28 of Schedule 1

Insert:

 (6) The best practice emissions intensity is 0.000356 t CO2‑e per gigajoule of crude oil.

31  At the end of section 32 of Schedule 1

Add:

 (6) The best practice emissions intensity is 0.000633 t CO2‑e per gigajoule of liquefied natural gas.

32  Section 33 of Schedule 1

Repeal the section, substitute:

 (1) Gigajoules of ethane that:

 (a) have an ethane content by mass of 95% or more; and

 (b) are in a gaseous state; and

 (c) are produced as part of carrying on the ethane production activity at the facility; and

 (d) are not consumed in carrying on the ethane production activity; and

 (e) are not produced in carrying on the petroleum refining activity in section 97 of this Schedule; and

 (f) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of ethane production through the separation of ethane from a mixture of hydrocarbons to produce ethane that:

 (a) has an ethane content by mass of 95% or more; and

 (b) is in a gaseous state.

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

 (4) The default emissions intensity is 0.00767 t CO2‑e per gigajoule of ethane.

 (5) The best practice emissions intensity is 0.00321 t CO2‑e per gigajoule of ethane.

33  Subsection 34(1) of Schedule 1

Repeal the subsection, substitute:

 (1) Gigajoules of liquefied petroleum gas that:

 (a) are in a liquid state; and

 (b) are produced as part of carrying on the liquefied petroleum gas production activity at the facility; and

 (c) are not consumed in carrying on the liquefied petroleum gas production activity; and

 (d) are not produced in carrying on the petroleum refining activity in section 97 of this Schedule; and

 (e) are of saleable quality.

34  At the end of section 34 of Schedule 1

Add:

 (5) The best practice emissions intensity is 0.000420 t CO2‑e per gigajoule of liquefied petroleum gas.

35  At the end of section 35 of Schedule 1

Add:

 (4) The best practice emissions intensity is 0.0200 t CO2‑e per tonne of reservoir carbon dioxide.

36  Section 36 of Schedule 1

Repeal the section, substitute:

36  Definitions

 (1) In this Part, the activity of manufacture of carbon steel from cold ferrous feed is the physical and chemical transformation of cold ferrous feed (such as ferrous scrap, hot briquetted iron, pig iron and flat iron) by heating and melting into liquid steel and the subsequent casting of the liquid steel:

 (a) to produce 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; and

 (b) where the carbon steel products or ingots are not produced as part of carrying on the primary steel manufacturing activity at the facility.

Example: The use of an electric arc furnace to produce carbon steel from cold ferrous feed.

 (2) In this Part, the activity of hot‑rolled long products is the hot‑rolling of continuously cast carbon steel products (originally produced from a primary steel manufacturing activity or manufacture of carbon steel from cold ferrous feed activity) into carbon steel long products that:

 (a) are in coils or straight lengths; and

 (b) are generally produced in rod, bar and structural (section) mills; and

 (c) generally have a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile.

 (3) In this Part, the activity of hot‑rolled flat products is the hot‑rolling of continuously cast carbon steel products (originally produced from a primary steel manufacturing activity or manufacture of carbon steel from cold ferrous feed activity) into carbon steel flat products that:

 (a) are flat in profile, such as plate and hot-rolled coil; and

 (b) are generally produced in hot strip mills and plate mills; and

 (c) are generally greater than 600 mm in width; and

 (d) are generally less than 150 mm in thickness.

 (4) In this Part:

 carbon steel means material that:

 (a) contains by mass more iron (Fe) than any other single element; and

 (b) has a carbon (C) concentration less than 2%.

 coke oven coke means the solid product obtained from the carbonisation of coal (principally coking coal) at a high temperature and includes coke breeze and foundry coke.

37  Division 2 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 2—Coke oven coke

37  Coke oven coke

 (1) Tonnes of coke oven coke on a dry weight basis that:

 (a) are produced as part of the coke oven coke manufacturing activity at the facility; and

 (b) are of saleable quality; and

 (c) are exported from the facility.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of carbonisation of coal (principally coking coal) through the coke oven coke manufacturing process.

 (3) The activity in subsection (2) is the coke oven coke manufacturing activity.

 (4) The default emissions intensity is 0.465 t CO2‑e per tonne of coke oven coke.

38  Division 3 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 3—Lime manufacturing

38  Lime (steel manufacturing)

 (1) Tonnes of lime on a dry weight basis that:

 (a) are produced as part of the lime manufacturing activity at the facility;

 (b) are of saleable quality; and

 (c) are exported from the facility.

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

 (a) either:

(i) the primary iron production activity; or

(ii) the primary steel manufacturing activity; and

 (b) the physical and chemical transformation of either or both limestone or dolomite into lime (including burnt lime, burnt dolomite, or both).

39  Division 4 of Part 20 of Schedule 1

Repeal the Division, substitute:

Example:  The facility produces 100,000 tonnes of metallic iron products that meet the requirements of this subsection. 10% of the metallic iron products consists of gangue, in the form of non-ferrous impurities such as silica (SiO2) and aluminium oxide (Al2O3), corresponding to 10,000 tonnes of gangue in total. No coke oven coke is used in the production process, so subsection (4) does not apply. As such, the metric is 90,000 tonnes.

Examples:  Pig iron, hot briquetted iron, direct reduced iron and cast iron are each a crude iron product that may be suitable for export from a facility.

Example:   The production of crude iron products from iron ore pellets using direct reduction. 

where:

Note 1: Qp may or may not have been produced with coke oven coke.

Note 2: Qp and Qi do not need to be directly measured; they can be calculated from the consumed ratio of coke oven coke imported into the facility to coke oven coke used to produce metallic iron products that meet the requirements in subsection (1), multiplied by the quantity of iron produced using coke oven coke.

Example:  Assume that a facility produces 10,000 tonnes of metallic iron products that are exported from the facility and of saleable quality, using coke oven coke, as part of carrying on the primary iron production activity at the facility. Assume that all the metallic iron products are 2% gangue and that 10% of the metallic iron products are made using imported coke.

Because the metallic iron products are 2% gangue, the facility therefore produces 9,800 tonnes of metallic iron products that meet the requirements of subsection (1) and, as such, Qp = 90% × 9,800 = 8,820; and Qi = 10% × 9,800 = 980. The metric, in tonnes, is therefore equal to 8,820 + 0.892 × 980, or 9,694.16.

40  After Division 4 of Part 20 of Schedule 1

Insert:

where:

Note 1: Qp may or may not have been produced with coke oven coke.

Note 2: Qp and Qi do not need to be directly measured; they can be calculated from the consumed ratio of coke oven coke imported into the facility to coke oven coke used to produce metallic iron products that meet the requirements in subsection (2), multiplied by the quantity of iron produced using coke oven coke.

Example 1: The facility produces 100,000 tonnes of metallic iron products that meet the requirements in subsection (2), all of which are produced using coke oven coke. The metallic iron products do not include any gangue. The facility uses 7,000 tonnes of imported coke oven coke and 63,000 tonnes of coke oven coke produced at the facility to make the metallic iron products, so that 70,000 tonnes of coke oven coke is used to make the metallic iron products in total. As such, the amount of coke oven coke imported into the facility to produce the metallic iron products is 10% of the total amount of coke oven coke, so this subsection applies. The amount of coke oven coke produced by the facility is 90% of the total amount of coke oven coke consumed in carrying on the primary iron (steelmaking) production activity.

Qp and Qi are calculated by multiplying these proportions by the total amount of metallic iron products produced using coke oven coke. As such, Qp = 90% × 100,000 = 90,000; and Qi = 10% × 100,000 = 10,000. The metric, in tonnes, is therefore equal to 90,000 + 0.892 × 10,000, or 98,920.

Example 2: Assume that a facility produces 100,000 tonnes of metallic iron products that meet the requirements in subsection (2), using coke oven coke. Assume that 10% of the metallic iron products are made using imported coke oven coke (like Example 1). Assume that the metallic iron products are 2% gangue.

The facility therefore produces 98,000 tonnes of metallic iron products that meet the requirements of subsection (2) and, as such, Qp = 90% × 98,000 = 88,200; and Qi = 10% × 98,000 = 9,800. The metric, in tonnes, is therefore equal to 88,200 + 0.892 × 9,800, or 96,941.6.

41  Division 5 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 5—Iron ore pellets

40  Iron ore pellets

 (1) Tonnes of iron ore pellets on a dry weight basis that:

 (a) are produced as part of the iron ore pellets manufacturing activity at the facility; and

 (b) are exported from the facility; and

 (c) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of manufacturing iron ore pellets.

 (3) The activity in subsection (2) is the iron ore pellets manufacturing activity.

 (4) The default emissions intensity is 0.0526 t CO2‑e per tonne of iron ore pellets.

 (5) The best practice emissions intensity is 0.0501 t CO2‑e per tonne of iron ore pellets.

42  Division 6 of Part 20 of Schedule 1 (heading)

Repeal the heading, substitute:

43  Section 41 of Schedule 1

Repeal the section, substitute:

Examples:  Smelting iron ore in a blast furnace to make pig iron, and then making carbon steel from the pig iron and added scrap metal using a basic oxygen furnace.

Making direct reduced iron from iron ore using direct reduction, and then making carbon steel from the iron using an electric arc furnace.

Note:  Cold ferrous feed, such as scrap metal, can be used as a co-input in the primary steel manufacturing activity.

Example:   The facility produces 100,000 tonnes of continuously cast carbon steel products and ingots of carbon steel that meet the requirements in subsection (1). 50,000 tonnes of products were produced using an electric arc furnace process that does not use coke oven coke, 45,000 tonnes were produced using coke oven coke produced at the facility, and 5,000 tonnes were produced using coke oven coke imported to the facility. The amount of coke oven coke imported into the facility to produce the continuously cast carbon steel products and ingots of carbon steel is 10% of the total amount of coke oven coke consumed in carrying on the primary steel manufacturing activity. The metric is equal to 95,000 + 0.900 × 5,000, or 99,500 tonnes.

44  Division 7 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 7—Hot-rolled long products produced at primary steel manufacturing facilities

42  Hot‑rolled long products produced at primary steel manufacturing facilities

 (1) Tonnes of hot‑rolled carbon steel long products that:

 (a) are produced as part of carrying on the hot‑rolled long products activity at the facility; and

 (b) are in coils or straight lengths; and

 (c) are generally produced in rod, bar and structural (section) mills; and

 (d) generally have a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and

 (e) are of saleable quality.

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

 (a) conducts the hot‑rolled long products activity; and

 (b) manufactures the hot-rolled carbon steel long products from continuously cast carbon steel products produced as part of carrying on the primary steel manufacturing activity at the facility.

 (3) The default emissions intensity is 0.101 t CO2‑e per tonne of hot-rolled carbon steel long products.

45  Division 8 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 8—Hot-rolled flat products produced at primary steel manufacturing facilities

43  Hot‑rolled flat products produced at primary steel manufacturing facilities

 (1) Tonnes of hot‑rolled carbon steel flat products that:

 (a) are produced as part of carrying on the hot‑rolled carbon steel flat products activity at the facility; and

 (b) are flat in profile, such as plate and hot-rolled coil; and

 (c) are generally produced in hot strip mills and plate mills; and

 (d) are generally greater than 600 mm in width; and

 (e) are generally less than 150 mm in thickness; and

 (f) are of saleable quality.

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

 (a) conducts the hot‑rolled flat products activity; and

 (b) manufactures the hot-rolled carbon steel flat products from continuously cast carbon steel products produced as part of carrying on the primary steel manufacturing activity at the facility.

 (3) The default emissions intensity is 0.000358 t CO2‑e per tonne of hot-rolled carbon steel flat products.

46  Division 9 of Part 20 of Schedule 1 (heading)

Omit “products”.

47  Section 44 of Schedule 1

Repeal the section, substitute:

44  Continuously cast carbon steel products and ingots of carbon steel (manufacture of carbon steel from cold ferrous feed)

 (1) Tonnes of continuously cast carbon steel products and ingots of carbon steel that:

 (a) are produced as part of carrying on the manufacture of carbon steel from cold ferrous feed at the facility; and

 (b) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of the manufacture of carbon steel from cold ferrous feed.

 (3) The default emissions intensity is 0.0981 t CO2‑e per tonne of continuously cast carbon steel products and ingots of carbon steel.

48  After Division 9 of Part 20 of Schedule 1

Insert:

Division 9A—ferrous feed (steelmaking)

44A  Ferrous feed (steelmaking)

 (2) Tonnes of continuously cast carbon steel products and ingots of carbon steel that:

 (a) are produced as part of carrying on the primary steel manufacturing activity at the facility; and

 (b) are of saleable quality.

 (3) The metric in subsection (2) is applicable to a facility that conducts the activity of the physical and chemical transformation of ferrous feed (such as ferrous scrap, hot briquetted iron, molten pig iron and flat iron) into liquid carbon steel and the subsequent casting of the liquid carbon steel to produce continuously cast carbon steel products and ingots of carbon steel.

Note: The ferrous feed used to produce the carbon steel products or ingots may or may not be cold ferrous feed.

 (4) The activity in subsection (3) is the activity of manufacture of carbon steel from ferrous feed (steelmaking) production activity.

49  Division 10 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 10—Hot-rolled long products (cold ferrous feed)

45  Hot‑rolled long products (cold ferrous feed)

 (1) Tonnes of hot‑rolled carbon steel long products that:

 (a) are produced as part of carrying on the hot‑rolled long products activity at the facility; and

 (b) are in coils or straight lengths; and

 (c) are generally produced in rod, bar and structural (section) mills; and

 (d) generally have a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and

 (e) are of saleable quality.

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

(i) manufactures the hot-rolled carbon steel long products from continuously cast carbon steel products produced as part of carrying on the manufacture of carbon steel from cold ferrous feed at the facility; or

(ii) is a stand-alone hot-rolling mill.

 (3) The default emissions intensity is 0.0750 t CO2‑e per tonne of hot-rolled carbon steel long products.

50  Division 11 of Part 20 of Schedule 1

Repeal the Division, substitute:

Division 11—Hot-rolled flat products (cold ferrous feed)

46  Hot‑rolled flat products (cold ferrous feed)

 (1) Tonnes of hot‑rolled carbon steel flat products that:

 (a) are produced as part of carrying on the hot‑rolled carbon steel flat products activity at the facility; and

 (b) are flat in profile, such as plate and hot-rolled coil; and

 (c) are generally produced in hot strip mills and plate mills; and

 (d) are generally greater than 600 mm in width; and

 (e) are generally less than 150 mm in thickness; and

 (f) are of saleable quality.

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

(i) manufactures the hot-rolled carbon steel flat products from continuously cast carbon steel products produced as part of carrying on the manufacture of carbon steel from cold ferrous feed at the facility; or

(ii) is a stand-alone hot-rolling mill.

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

51  Division 12 of Part 20 of Schedule 1

Repeal the Division.

52  Subsection 48(1) of Schedule 1

Repeal the subsection, substitute:

 (1) In this Part, the activity of rail transport is the use of technology to power rolling stock to transport passengers or freight on a rail system.

53  Subsections 54D(3) and (4) of Schedule 1

Repeal the subsections, substitute:

 (3) The net‑tonne‑kilometres must be measured consistently with relevant industry practice.

 (4) The default emissions intensity is 0.000078 t CO2‑e per net‑tonne‑kilometre of bulk freight.

 (5) The best practice emissions intensity is 0.0000395 t CO2‑e per net-tonne-kilometre of bulk freight.

54  At the end of section 57 of Schedule 1

Add:

 (5) The best practice emissions intensity is 0.236 t CO2‑e:  

 (a) if paragraph (1)(b) does not apply—per megawatt hour of electricity generated; and

 (b) if paragraph (1)(b) applies—per megawatt hour of electricity exported from the facility.

55  Paragraph 63(2)(b) of Schedule 1

Omit “prescribed”.

56  Paragraph 64(3)(c) of Schedule 1

Omit “prescribed”.

57  Section 69 of Schedule 1

Repeal the section, substitute:

 (1) Tonnes of refined lead that:

 (a) have a concentration of lead (Pb) equal to or greater than 99.97% by mass; and

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

 (c) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing refined lead through the chemical transformation of concentrated mineralised lead compounds, with or without additional lead bearing secondary materials, into refined lead (the refined lead production activity).

Note: The blasting and sintering processes used in the activity may also treat either or both of concentrated mineralised zinc compounds and zinc bearing secondary materials.

 (3) The default emissions intensity is 2.79 t CO2-e per tonne of refined lead.

58  Subsection 70(3) of Schedule 1

Omit “3.34”, substitute “3.82”.

59  Subsection 76(1) of Schedule 1 (paragraph (b) of the definition of intermediate nickel products)

Omit “35%”, substitute “20%”.

60  Subsection 84(4) of Schedule 1

Omit “0.464”, substitute “0.706”.

61  Subsection 86(3) of Schedule 1

Omit “1.96”, substitute “1.79”.

62  Subsection 87(3) of Schedule 1

Omit “0.136”, substitute “0.125”.

63  After section 87 of Schedule 1

Insert:

87A  Exported steam related to the ethene production activity

 (1) Gigajoules of steam that:

 (a) are generated at the facility by heating water; and

 (b) are transferred or exported to another facility:

(i) as part of a commercial arrangement requiring the transfer of steam to the other facility; and

  (ii) for use at the other facility.

 (2) The metric in subsection (1) is applicable to a facility that conducts the ethene production activity.

 (3) The gigajoules of steam in subsection (1) must be:

 (a) measured consistently with the NGER (Measurement) Determination, including the principles in section 1.13 and reporting requirements under the NGER Regulations; and

 (b) calculated as total steam exported for a reporting period; and

 (c) measured at the point of transfer out of the facility.

Note: The amount of gigajoules of a mass of steam at a particular temperature and pressure can be calculated by multiplying the specific steam enthalpy corresponding to that temperature and pressure by the mass of that steam.

 (4) The default emissions intensity is 0.0879 t CO2-e per gigajoule of steam.

 (5) In this section:

  ethene production activity has the same meaning as in subsection 86(2).

64  After subsection 96(3) of Schedule 1

Add:

Note: The amount of gigajoules of a mass of steam at a particular temperature and pressure can be calculated by multiplying the specific steam enthalpy corresponding to that temperature and pressure by the mass of that steam.

65  Subsection 97(1) of Schedule 1

Repeal the subsection, substitute:

 (1) Kilolitres of the following substances that are used in carrying on the activity of petroleum refining at the facility in accordance with subsection (2):

 (a) stabilised crude petroleum oil at 15 °C and 1 atmosphere; and

 (b) condensate at 15 °C and 1 atmosphere; and

 (c) biogenic oils at 15 °C and 1 atmosphere; and

 (d) liquid synthetic hydrocarbons at 15 °C and 1 atmosphere; and

 (e) alcohol feedstocks at 15 °C and 1 atmosphere; and

 (f) waste or recycled material that has undergone pyrolysis; and

 (g) eligible petroleum feedstocks at 15 °C and 1 atmosphere; and

 (h) bio-crude or bio-intermediates produced from thermochemical processes.

66  Subsection 97(2) of Schedule 1

Omit “(1)(a) to (e)”, substitute: “(1)(a) to (h)”.

67  Subsection 97(3) of Schedule 1

Omit “tallow, vegetable oil, eligible petroleum feedstocks or other petroleum feedstocks”, substitute: “biogenic oils, liquid synthetic hydrocarbons, alcohol feedstocks, waste or recycled material that has undergone pyrolysis, eligible petroleum feedstocks or bio-crude or bio-intermediates produced from thermochemical processes”.

68  Paragraph 97(4)(b) of Schedule 1

Omit “stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible feedstocks”, substitute: “stabilised crude petroleum, condensate, biogenic oils, liquid synthetic hydrocarbons, alcohol feedstocks, waste or recycled material that has undergone pyrolysis, eligible petroleum feedstocks and bio-crude or bio-intermediates produced from thermochemical processes”.

69  Subsection 97(6) of Schedule 1 

Repeal the subsection, substitute:

            (6) The default emissions intensity is:

 (a) if the facility is, for the financial year, in compliance with all fuel quality standards requirements that apply to unleaded petrol refined by the facility—0.148 t CO2-e per kilolitre of the substances mentioned in paragraphs (1)(a) to (1)(h);

 (b) otherwise—0.138 t CO2-e per kilolitre of the substances.

Note: A fuel quality standards requirement only applies to unleaded petrol refined by a facility if the requirement has come into force. Paragraph (b) applies if no fuel quality standards requirements apply to unleaded petrol refined by a facility.            

            (7) For subsection (6), a facility is taken to be in compliance with a fuel quality standards requirement for a financial year if:

 (a) the facility complies with the requirement for the duration of the financial year; or

 (b) the facility begins to comply with the requirement at any time during the financial year, and remains in compliance with the requirement for the remainder of the financial year.

70  Subsection 97(7) of Schedule 1

Renumber as subsection 97(8).

71  Subsection 97(7) of Schedule 1

Insert:

          fuel quality standards requirement: each of the following is a fuel quality standards requirement:

 (a) if a determination made under section 21 of the Fuel Quality Standards Act 2000 specifies a requirement in relation to the maximum sulfur content of petrol refined from the substance of not more than 10mg/kg—that requirement;

 (b) if a determination made under section 21 of the Fuel Quality Standards Act 2000 specifies a requirement in relation to the maximum level of aromatics in petrol refined from the substance that applies in relation to a day on or after 1 July 2025—that requirement.

72  Section 98 of Schedule 1

Repeal the section, substitute:

98  Lithium hydroxide

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

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

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

 (c) are 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).

 (3) The default emissions intensity is 3.26 t CO2-e per tonne of lithium hydroxide monohydrate.

 (4) The best practice emissions intensity for the production variable is 3.15 t CO2-e per tonne of lithium hydroxide monohydrate.

 73  At the end of Schedule 1

Add:

Part 48—Hydrogen

99  Gaseous hydrogen

 (1) Tonnes of gaseous hydrogen (H2(g)) that:

 (a) are in a gaseous state; and

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

 (c) are of saleable quality; and

 (d) are not consumed in carrying on the liquefied hydrogen production activity in section 100 of this Schedule; and

 (e) have not been counted as part of the liquefied hydrogen production variable in section 100 of this Schedule.

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

 (a) the physical and chemical transformation of feedstocks that contain hydrogen to produce gaseous hydrogen; or

 (b) the physical and chemical transformation of water (H2O) to gaseous hydrogen through electrolysis.

 (3) The activity in subsection (2) is the gaseous hydrogen production activity.

 (4) The best practice emissions intensity is 7.13 t CO2-e per tonne of gaseous hydrogen.

100  Liquefied hydrogen

 (1) Tonnes of liquified hydrogen (H2(l)) that:

 (a) are in a liquid state; and

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

 (c) are produced using gaseous hydrogen that was produced by carrying on the gaseous hydrogen production activity at the facility; and

 (d) are of saleable quality; and

 (e) have been loaded onto a pipeline, transport vessel, tanker or other transportation system.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing liquified hydrogen through the physical transformation of gaseous hydrogen (H2(g)) into liquefied hydrogen that is in a liquid state on leaving the facility.

 (3) The activity in subsection (2) is the liquefied hydrogen production activity.

 (4) The best practice emissions intensity is 7.13 t CO2-e per tonne of liquefied hydrogen.

Part 49—Mine rehabilitation

101  Mine rehabilitation

 (1) Total gigajoules of energy input that:

  (a) are used for the purpose of mine rehabilitation; and

 (b) have not been counted for another production variable at the facility.

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

 (a) that undertakes mine rehabilitation within the facility by conducting any of the following activities (the rehabilitation activities):

 (i) haulage of material;

 (ii) shaping and contouring of landforms;

 (iii) revegetation;

 (iv) management of tailings and wastewater;

 (v) associated activities such as dust suppression;

 (b) where the rehabilitation activities:

 (i) are in excess of those required for the mine’s normal operation; and

 (ii) are not associated with on-site electricity generation; and

 (iii) do not fall within the scope of any other production variable in this Schedule.

Examples: Mine rehabilitation of an entire pit.

Mine rehabilitation ramping up as production drops towards mine closure.

Mine rehabilitation at the end of a mine’s life following cessation of production.

 (3) The activity in subsection (2) is the mine rehabilitation activity.

 (4) The default emissions intensity is 0.0702 t CO2-e per gigajoule of energy input to the mine rehabilitation activity.

 (5) The best practice emissions intensity for the production variable is 0.0702 t CO2‑e per gigajoule of energy input to mine rehabilitation activity.

 (6) Without limitation, the quantity of the metric in subsection (1) may be evidenced by:

 (a) third party contracts; or

 (b) fuel purchase receipts; or

 (c) fuel use records from a fuel management system; or

 (d) evidence of an activity scheduled in an approved mining and rehabilitation plan relating to the mine rehabilitation activity.

Part 50—Biofuels

102  Definitions

In this Part:

biofuel has the same meaning as in the NGER Regulations.

biofuel feedstocks means non-fossilised and biodegradable organic material originating from plants, animals or micro-organisms, including:

 (a) products, by-products, residues and waste from industry (such as the agriculture and forestry industries); and

 (b) non-fossilised and biodegradable organic components of commercial, industrial, construction, demolition, and municipal waste.

Examples:  Soybean oil, canola oil, technical corn oil, palm fatty acid distillate, pongamia pinnata, used cooking oil, tall oil, spent bleaching earth oil, brassica carinata, tallow, POME oil and empty fruit bunches.

biofuel production activity means the production of a biofuel through the physical and chemical transformation of biofuel feedstocks.

Examples:  Gasification, Fischer-Tropsch synthesis, hydrothermal conversions and hydroprocessing.

renewable aviation kerosene has the same meaning as in the NGER Regulations.

renewable diesel has the same meaning as in the NGER Regulations.

103  Renewable aviation kerosene

 (1) Kilolitres of renewable aviation kerosene that:

 (a) are produced through the biofuel production activity at the facility; and

 (b) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing renewable aviation kerosene through a biofuel production activity.

 104  Renewable diesel

 (1) Kilolitres of renewable diesel that:

 (a) are produced through the biofuel production activity at the facility; and

 (b) are of saleable quality.

 (2) The metric in subsection (1) is applicable to a facility that conducts the activity of producing renewable diesel through a biofuel production activity.

74  Section 1 of Schedule 2 (table)

Repeal the table, substitute:

Repeal the table, substitute: