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Carbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2016 I, Josh Frydenberg, Minister for the Environment and Energy, make the following determination. Dated [Date] EXPOSURE DRAFT v 2.1 08 August 2016 Josh Frydenberg [DRAFT ONLY—NOT FOR SIGNATURE] Minister for the Environment and Energy

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Page 1: Carbon Credits (Carbon Farming Initiative—Land … · Web viewCarbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2016 I, Josh Frydenberg,

Carbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2016

I, Josh Frydenberg, Minister for the Environment and Energy, make the following determination.

Dated [Date]

EXPOSURE DRAFT v 2.1 08 August 2016

Josh Frydenberg [DRAFT ONLY—NOT FOR SIGNATURE]Minister for the Environment and Energy

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ContentsPart 1 —Preliminary

1 Name2 Commencement3 Authority4 Duration5 Definitions6 Meaning of eligible freight7 Meaning of eligible route and catchment area8 Meaning of eligible transport of eligible freight9 References to factors and parameters from external sources

Part 2 —Land and sea transport projects10 Land and sea transport projects

Part 3 —Project requirementsDivision 1 —General requirements

11 Operation of this Part12 Information to be included in application for declaration13 Data from domestic activities only14 Information from previous years15 Meaning of baseline years16 Meaning of default baseline years and requested baseline years

Division 2 —Requirements for group of vehicles activities17 Group of vehicles18 Information to be included in application for declaration19 Service units

Division 3 —Requirements for aggregated individual vehicles activities20 Aggregated individual vehicles21 Information to be included in application for declaration22 Service units

Division 4 —Requirements for transport mode shift activities23 Transport mode shift24 Information to be included in application for declaration

Part 4 —Net abatement amountsDivision 1 —Operation of this Part

25 Operation of this Part26 Overview of gases accounted for in abatement calculations27 Requirement to report on baseline years consistently

Division 2 —Calculation of net abatement amount28 Operation of this Division29 Overview—the net abatement amount30 Net abatement amount—land and sea transport project

Division 3 —Group of vehicles activities31 Operation of this Division

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32 Activity summary—group of vehicles33 Net abatement amount—group of vehicles

Division 4 —Aggregated individual vehicles activities34 Operation of this Division35 Activity summary—aggregated individual vehicles36 Net abatement amount—aggregated individual vehicles

Division 5 —Calculating emissions intensity (I)37 Calculating emissions intensity (I)

Division 6 —Transport mode shift activities38 Operation of this Division39 Activity summary—transport mode shift40 Data to be used for this Division41 Net abatement amount—transport mode shift

Part 5 —Reporting, record-keeping and monitoring requirementsDivision 1 —Offsets report requirements

42 Operation of this Part43 Determination of certain factors and parameters44 Use of Green Vehicle Guide45 Additional requirements for transport mode shift activity46 Division of project into smaller projects

Division 2 —Record-keeping requirements47 Operation of this Division48 Record-keeping requirements—group of vehicles and aggregated individual

vehicles activities49 Record-keeping requirements—transport mode shift activity

Division 3 —Monitoring requirements50 Operation of this Division51 Requirements to monitor certain parameters52 Consequences of not meeting requirement to monitor certain parameters

Schedule 1 —Group of vehicles and aggregated individual vehicles activities—service units

1 Service units

Schedule 2 —Group of vehicles activity—decline rates1 Decline rates for group of vehicles activities

Schedule 3 —Transport mode shift activity—eligible routes and related information

1 Table 1—Eligible routes2 Table 2—intermodal terminals for cities

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Part 1—Preliminary

1 Name

This is the Carbon Credits (Carbon Farming Initiative—Land and Sea Transport) Methodology Determination 2016.

2 Commencement

This determination commences on the day after it is registered.

3 Authority

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

4 Duration

This determination remains in force for the period that:(a) begins when this instrument commences; and(b) ends on the day before this instrument would otherwise be repealed under

subsection 50(1) of the Legislation Act 2003.

5 Definitions

In this determination:

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

aggregated individual vehicles activity means an activity that meets the requirements of section 20.

application, for a project, means the application, made under section 22 of the Act, for declaration of the project as an eligible offsets project.

appropriate measuring requirements has the meaning given by subsection 51(4).

articulated trucks, as a vehicle category, means vehicles:(a) built primarily for transporting goods; and(b) that consist of:

(i) a prime mover with no significant carrying area; and(ii) at times, one or more trailers, where the lead trailer is linked to the

prime mover by a turntable device.

associate has the same meaning as in section 318 of the Income Tax Assessment Act 1936.

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Australia, when used in a geographical sense, includes the external Territories and the exclusive economic zone.

baseline year—see section 15.

buses, as a vehicle category, means passenger vehicles with 10 or more seats, including the driver’s seat.

business unit means a part of a transport operation that is, to some extent, administered separately.

coastal shipping, as a vehicle category, means:(a) vessels for transporting goods; and (b) vessels for transporting goods and passengers, in which goods carriage

predominates by weight; and (c) tugboats that provide a service moving other vessels.

Note: The service units measure freight moved.

For a vessel transporting goods and passengers, subsections 19(3) and 22(3) provide for conversion of passengers carried into the appropriate service units.

For a tugboat, the service unit measures the gross tonnage of the vessels moved by the tugboat.

common control, in relation to groups of vehicles, means the groups of vehicles are:

(a) owned by the same person; or(b) dealt with as if they were owned by the same person.

data unit means a data unit referred to in section 14.

declaration, in relation to a project, means the declaration of the project as an eligible offsets project.

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

decline rate, for a service unit for a vehicle category, means the rate set out in the table in clause 1 of Schedule 2.

diesel passenger rail, as a vehicle category means rolling stock that uses diesel fuel to transport passengers on a heavy rail system.

duty cycle, for a vehicle, means the kind of work done by the vehicle, as expressed in terms of factors that materially affect emissions intensity, including, where relevant:

(a) the purposes or tasks for which the vehicle is used; and(b) types of goods carried; and(c) areas or routes of operation.

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electric passenger rail, as a vehicle category, means rolling stock that uses electricity to transport passengers on a heavy rail system.

eligible freight—see section 6.

eligible freight descriptors, for a particular unit of eligible freight, means the following:

(a) the consignor;(b) the consignee;(c) the container or consignment serial number;(d) the TMS entity that is transporting the freight.

eligible renewable electricity:(a) means renewable electricity generated from equipment installed as part of

the project; but(b) does not include renewable energy generated by equipment that under the

legislative rules (if any) made for subparagraph 27(4A)(c)(ii) of the Act, must not be included in an eligible offsets project.

eligible route—see subsection 7(1).

eligible transport—see section 8.

emissions intensity means emissions produced compared with service output (or work done).

entity means an entity within the meaning of the A New Tax System (Goods and Services Tax) Act 1999 that is registered on the Australian Business Register under the A New Tax System (Australian Business Number) Act 1999.Note: Under the A New Tax System (Goods and Services Tax) Act 1999, the term ‘entity’

includes an individual, a body corporate, a corporation sole, a body politic, a partnership, as well as any other unincorporated association or body of persons. Some of these terms are further defined in that Act.

ferries, as a vehicle category, means:(a) vessels for transporting passengers; and

Examples: River and harbour ferries; passenger transports to islands, ships and sea installations; cruise ships that use only Australian ports.

(b) vessels that provide patrol boat, lifesaving, rescue or similar services that are appropriately measured by vkt.

Green Vehicle Guide means the information published on the Green Vehicle Guide website (http://www.greenvehicleguide.gov.au) from time to time.

group of vehicles activity means an activity that meets the requirements of section 17.

heavy rail system means a rail network with the following features:(a) exclusive rights-of-way;

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(b) sophisticated signalling;(c) high platform loading;(d) capacity for the following:

(i) high volumes of traffic;(ii) multi-car units;

(iii) high speeds;(iv) rapid acceleration.

land and sea transport project has the meaning given by subsection 10(4).

light passenger rail, as a vehicle category, means rolling stock:(a) in the nature of street-cars (such as trams and monorails); and(b) for transporting passengers over short distances; and(c) with semi-exclusive or exclusive rights of way; and(d) of a kind that is often operated by line-of-sight.

light vehicles, as a vehicle category:(a) means vehicles with:

(i) fewer than 10 seats (including the driver’s seat); and(ii) a gross vehicle mass of less than 3.5 tonnes; and

(b) includes two-wheeled machines, cars, station wagons, four-wheel drive vehicles, utes, vans, mini buses and campervans.

m3km means cubic metre kilometres and is used to measure a service that can be characterised as the provision of a vehicle with a carrying capacity of a specified volume for a particular purpose.Example: A waste collection service.

mobile equipment means off-road self-propelled machinery that is not covered by another vehicle category.

modification, in relation to a vehicle, includes:(a) the removal or addition of vehicle components; and(b) changes to the structure of the vehicle.

monitoring requirements means the requirements set out in section 51.

net abatement amount, for an eligible offsets project in a reporting period, means the carbon dioxide equivalent net abatement amount for the project in the reporting period for the purposes of paragraph 106(1)(c) of the Act (see also section 25).

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

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

non-freight-carrying trucks, as a vehicle category:(a) means specialist motor vehicles or motor vehicles fitted with special

purpose equipment with little or no goods carrying capacity; and(b) includes waste collection vehicles, ambulances, cherry pickers, fire trucks

and tow trucks.

operational practices include, but are not limited to, the following:(a) driver training;(b) route scheduling;(c) vehicle maintenance scheduling.

original duty cycle, for a vehicle, means the duty cycle for the vehicle in the year used to determine historical emissions intensity for the vehicle (see subsection 36(1)).

pkm means passenger kilometres, and is used to measure a service consisting of transporting passengers, whether by land or by sea.

pnmi means passenger nautical miles, and is used to measure a service consisting of transporting passengers by sea.

project activities:(a) for a group of vehicles activity or an aggregated individual vehicles activity

—see subsection 10(2); and(b) for a transport mode shift activity—see subsection 10(3).

rail freight, as a vehicle category, means rolling stock for transporting goods.

reference group, for a vehicle v in relation to a year, means all other vehicles that:

(a) were in the same transport operation or business unit as vehicle v in the year; and

(b) were of the same vehicle category or vehicle sub-category as vehicle v; and(c) had duty cycles comparable with the duty cycle of vehicle v.

related groups, of vehicles, has the meaning given by subsection 17(6).

replacement vehicle means a vehicle that:(a) replaced a vehicle (the replaced vehicle) in a project during the reporting

period concerned; and(b) was not, before the replacement, subject to the operational control of the

person who controlled the replaced vehicle.

rigid trucks, as a vehicle category:(a) means motor vehicles:

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(i) built primarily for transporting goods; and(ii) exceeding 3.5 tonnes gross vehicle mass; and

(b) includes trucks covered by paragraph (a) with tow bars, draw bars or other non-turntable coupling device at the rear of the vehicle.

service unit, for a vehicle category, means a service unit listed for the vehicle category in the table in clause 1 of Schedule 1.

sub-group has the meaning given by subsection 17(3).

taxable fuel:(a) has the same meaning as in the Fuel Tax Act 2006; but(b) does not include fuel for which fuel tax credits or a refund of excise or

customs duty (however described) is given because the fuel is used for an international voyage.

tkm means tonne kilometres, and is used to measure the quantity of freight that is moved for a service consisting of:

(a) the transportation of:(i) goods, whether by land or by sea; or

(ii) goods and passengers by sea; or(c) the movement of other vessels by sea.

Note: Vessels in the vehicle category coastal shipping transport goods or goods and passengers, or move other vessels. See subsections 19(3) and 22(2) for conversion of passenger numbers to the equivalent mass of freight.

TMS entity (short for transport mode shift entity) means:(a) an entity that undertakes the eligible transport of eligible freight over

eligible routes; or(b) an entity that is not itself so engaged, but that engages other entities to

undertake that function.

tnmi means tonne nautical miles, and is used to measure the quantity of freight that is moved for a service consisting of the movement of freight by sea.

transport mode shift activity means an activity that meets the requirements of section 23.

transport operation means transport services operated by:(a) a business, whether or not as the primary activity of the business; or(b) a State or Territory.

truck means a vehicle in the category articulated trucks or rigid trucks.

under a sub-contract—see subsection 23(3).

vehicle includes the following:(a) rolling stock;

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(b) vessels;(c) mobile equipment.

vehicle category means a category set out in the table in clause 1 of Schedule 1 in the column headed “Vehicle category”.

vehicle sub-category means vehicles within a vehicle category that can be identified as a sub-category of the vehicle category, for the purposes of a land and sea transport project, on the basis of one or more of the following:

(a) type of vehicle;(b) gross vehicle mass;(c) passenger or freight capacity.

vhr means vehicle operating hours, and is used to measure a service that is undertaken by a vehicle in the vehicle category mobile equipment [and that cannot be measured in tkm or vkt ].

vkt means vehicle kilometres travelled and is used to measure a service that can be characterised as the provision of a vehicle for a particular purpose.Examples: A taxi service, a bus service, a delivery service, or the provision of safety or rescue

services.

6 Meaning of eligible freight

(1) For this determination, eligible freight is any freight that:(a) is packaged or containerised when transported; or(b) is not packaged or containerised when transported, and consists of:

(i) one or more vehicles of any of the following vehicle categories:(A) articulated trucks;(B) light vehicles;(C) mobile equipment;(D) non-freight carrying trucks;(E) rigid trucks; or

(ii) one or more tractors; or(iii) livestock; or(iv) manufactured metal products; or(v) machinery; or

(vi) equipment.Example: Eligible freight includes freight such as grain, wood chips and cement that is

transported in containers. However, loose, unpackaged and non-containerised freight such as grain, wood chips and cement, would not be eligible freight.

Note: Units of eligible freight include individual boxes, pallets, and shipping containers.

(2) For paragraph (1)(a), the eligible freight includes the package or container.

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7 Meaning of eligible route and catchment area

Meaning of eligible route

(1) A route listed in table 1 of Schedule 3 is an eligible route, with the terminals indicated in the table.

Catchment area of terminal of eligible route

(2) For this section, the catchment area of a terminal of an eligible route is the area bounded by a circle that:

(a) has its centre at the terminal; and(b) has a radius equal to whichever of the following is smaller:

(i) 5% of the length of the route by rail given in Schedule 3;(ii) 100 km.

8 Meaning of eligible transport of eligible freight

(1) For this determination, transport of a unit of eligible freight is eligible transport on a particular eligible route if the unit is:

(a) transported entirely by rail over the route, being:(i) loaded onto the railway rolling stock at a terminal at one end of the

route; and(ii) unloaded at a terminal at the other end; or

(b) transported entirely by truck between:(i) a point within the catchment area of a terminal at one end of the route;

and(ii) a point within the catchment area of a terminal at the other end.

(2) For subsection (1), the transport is eligible transport even if:(a) in the case of paragraph (1)(a)—the unit might be moved between rolling

stock during the transport other than by rolling stock; and(b) in the case of paragraph (1)(b):

(i) the unit might be moved between trucks during the transport; or(ii) the unit might not be loaded onto a truck, or unloaded, within either

catchment area (so long as the unit was on the truck while it was within each catchment area); or

(iii) the freight might not have been transported along the particular road or set of roads listed for the eligible route in Schedule 3.

9 References to factors and parameters from external sources

(1) If a calculation in this determination includes a factor or parameter that is defined or calculated by reference to another instrument or writing, the factor or parameter to be used for a reporting period is the factor or parameter referred to

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in, or calculated by reference to, the instrument or writing as in force at the end of the reporting period.Note: This means that calculations using historical data for a reporting period may not be

correct for later reporting periods because reference instruments have changed. Baseline calculations, for example, will have to be re-worked from one reporting period to another, as necessary.

(2) Subsection (1) does not apply if:(a) the determination specifies otherwise; or(b) it is not possible to define or calculate the factor or parameter by reference

to the instrument or writing as in force at the end of the reporting period.

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Part 2—Land and sea transport projects

10 Land and sea transport projects

(1) For paragraph 106(1)(a) of the Act, this determination applies to an offsets project that:

(a) can reasonably be expected to result in eligible carbon abatement; and(b) involves undertaking one of the following:

(i) a group of vehicles activity;(ii) an aggregated individual vehicles activity;

(iii) a transport mode shift activity;(iv) the activities referred to in subparagraphs (i) and (iii); or(v) the activities referred to in subparagraphs (ii) and (iii).

Note: It is not possible to undertake the activities referred to in subparagraphs (i) and (ii) in the same project.

(2) For a group of vehicles activity or an aggregated individual vehicles activity:(a) the project activities are the following:

(i) replacing vehicles;(ii) modifying existing vehicles;

(iii) changing energy sources (fuels and electricity) or the mix of energy sources for vehicles;

(iv) changing operational practices; and(b) the vehicles used may be land vehicles, marine vessels or a combination of

both.

(3) For a transport mode shift activity:(a) the project activity in relation to an eligible route is increasing the

proportion of freight that is carried on the route by rail rather than by road; and

(b) the vehicles used may be land vehicles only.

(4) A project covered by subsection (1) is a land and sea transport project.

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Part 3—Project requirements

Division 1—General requirements

11 Operation of this Part

For paragraph 106(1)(b) of the Act, this Part sets out requirements that must be met for a land and sea transport project to be an eligible offsets project.Note: General requirements for land and sea transport projects are set out in this Division,

and additional requirements are set out:(a) for a group of vehicles activity—in Division 2; and(b) for an aggregated individual vehicles activity—in Division 3; and(c) for a transport mode shift activity—in Division 4.

12 Information to be included in application for declaration

The project proponent must indicate to the Regulator which of the activities listed in paragraph 10(1)(b) the project will involve.

13 Data from domestic activities only

The project must not use data from activities that use fuel that is not taxable fuel.Note: This prevents abatement that is not eligible carbon abatement from being included in

carbon dioxide equivalent net abatement amounts for projects.

14 Information from previous years

(1) A land and sea transport project that involves an activity listed in the following table is an eligible offsets project only if, for each data unit relating to the activity, for each of the 3 baseline years for the data unit:

(a) the project proponent has the required information; and(b) the activity requirement is satisfied.

Required information from previous yearsActivity Data unit Required information Activity

requirement

Group of vehicles activity

A sub-group Subject to subsection (2), the following information:(a) the quantity of fuel type i used to power or

operate vehicles in the sub-group (QF,i);(b) the quantity of electricity used to power or

operate vehicles in the sub-group (QEC);(c) the quantity of eligible renewable

electricity used to power or operate vehicles in the sub-group (QRen);

The quantity of service in paragraph (d) is greater than zero

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Required information from previous yearsActivity Data unit Required information Activity

requirement(d) the quantity of service provided by

vehicles in the sub-group (QS)Aggregated individual vehicles activity

An individual vehicle

The following information:(a) the quantity of fuel type i used to power or

operate the vehicle (QF,i);(b) the quantity of electricity used to power or

operate the vehicle (QEC);(c) the quantity of eligible renewable

electricity used to power or operate the vehicle (QRen);

(d) the quantity of service provided by the vehicle (QS)

The quantity of service in paragraph (d) is greater than zero

Transport mode shift activity

A TMS entity and eligible route on which the entity transported eligible freight

The following information:(a) the total amount of eligible freight

transported by that entity on that route by rail;

(b) the total amount of eligible freight transported by that entity on that route by road

The amount transported in paragraph (b) is greater than zero

Note: For each activity, the contribution to the net abatement amount is based on a single year’s data for the data unit. See Part 4.

(2) For a group of vehicles activity, to the extent that paragraph 37(2)(b) is used to calculate the historical emissions intensity (IH,c) for the purposes of subsection 33(5), the project proponent need not comply with this section.Note: Paragraph 37(2)(b) is applicable in the case of a group of vehicles activity that involves

light vehicles where fuel consumption cannot be measured. For such vehicles, the emissions intensity is calculated on the basis of parameters sourced from various documents referred to in that paragraph, and there is no requirement for a project proponent to have access to any other historical data in relation to such vehicles.

Further requirements relating to information

(3) The information must be in the applicable units, and comply with any applicable measurement procedure, as set out in the monitoring requirements for that information.

(4) The project proponent must have the information required by this section before the end of the reporting period for which the information is required in order to calculate the net abatement amount.

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15 Meaning of baseline years

Meaning of baseline years

For this determination, the baseline years for a particular data unit are:(a) the default baseline years for the data unit (see subsection 16(1)); or(b) if the project proponent so elects:

(i) each calendar year in which a default baseline year began; or(ii) each financial year in which a default baseline year began; or

(c) the requested baseline years (if any) for the data unit that have been approved in accordance with subsections 16(2) and (3).

Note 1: For a group of vehicles activity, a single set of baseline years will apply to the whole activity (that is, different sub-groups in the activity cannot have different baseline years).

In contrast, for an aggregated individual vehicles activity, a different set of baseline years could apply to each vehicle. Similarly, for a transport mode shift activity, a different set of baseline years could apply to each combination of TMS entity and eligible route.

Note 2: When different sets of baseline years may be selected, the proponent may select, for example, calendar years for some vehicles, and financial years for others.

Note 3: If subsection 14(2) is relevant to all sub-groups in a group of vehicles activity, there are no baseline years in relation to the activity.

16 Meaning of default baseline years and requested baseline years

Meaning of default baseline years

(1) For section 15 and this section, the default baseline years for a particular data unit are:

(a) for a sub-group in a group of vehicles activity:(i) the year ending on the day before the application under section 22 of

the Act; and(ii) each of the 2 years immediately preceding that year; and

(b) for a vehicle that is part of an aggregated individual vehicles activity:(i) the year ending on the day before the start of the first reporting period

during which that vehicle is reported; and(ii) each of the 2 years immediately preceding that year; and

(c) for a combination of TMS entity and eligible route that is part of a transport mode shift activity:

(i) the year ending on:(A) for an entity and route that were reported on in the first

reporting period—the day before the application under section 22 of the Act; and

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(B) for an entity and route that were first reported on in a subsequent reporting period—the day before the start of that reporting period; and

(ii) each of the 2 years immediately preceding that year.

Approval by the Regulator of different baseline years

(2) The proponent may request the Regulator, in the form approved by the Regulator, to approve 3 other consecutive years (the requested baseline years) for a particular data unit for the purposes of paragraph 15(c).

(3) The Regulator must approve the requested baseline years if:(a) the proponent provides any evidence in support of the request that is

required by the Regulator within the period required by the Regulator; and(b) the Regulator is satisfied that:

(i) the proponent:(A) without the approval, is not, or will not be, otherwise readily

able to access the information required by section 14; but(B) with the approval, is, or will be, readily able to access that

information; and(ii) those years correspond to a reporting cycle for the relevant business;

and(c) a default baseline year for the data unit begins in each requested baseline

year; and(d) in the case of a group of vehicles activity—a single set of baseline years

has been requested for the entire activity.Note: The project proponent may choose to rely on this subsection if, for example, it records

information on the basis of years other than calendar or financial years.

This subsection permits the proponent to rely on different baseline years only in the circumstance referred to in subsection (3). It does not permit the proponent to rely on different baseline years simply because those other years would produce a more favourable net abatement amount. Nor does it permit the proponent to rely on different baseline years in order to ensure that the activity requirements of section 14 are satisfied.

Division 2—Requirements for group of vehicles activities

17 Group of vehicles

(1) A group of vehicles activity must be used in relation to a group of vehicles.

(2) The group of vehicles must be made up of one or more sub-groups.

(3) Each sub-group must include all the vehicles of the same vehicle category used from time to time by:

(a) a transport operation; or

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(b) a business unit.

(4) In relation to light vehicles, the following must be in different sub-groups:(a) light vehicles for which fuel consumption can be measured;(b) light vehicles for which fuel consumption cannot be measured.

(5) A vehicle must not be moved to or from a related group of vehicles for the dominant purpose of producing carbon abatement for the project.

(6) Vehicles are in related groups if they are subject to common control.Note: This rule is to prevent vehicles being replaced vehicles by no more than moving them

within an organisation or between related organisations.

(7) The activity must not be used for mobile equipment.

(8) A vehicle must be excluded from the activity if:(a) it is a light vehicle for which fuel consumption cannot be measured; and(b) there is no emissions intensity for the vehicle set out in the column headed

“CO2 g/km Comb” in the Green Vehicle Guide.

18 Information to be included in application for declaration

(1) The application for a project that involves a group of vehicles activity must include descriptions of the following:

(a) the sub-groups to be covered by the activity, including the vehicle categories and an estimate of the number of vehicles in each sub-group;

(b) the transport operations or business units concerned;(c) the duty cycles of the vehicles to be covered by the activity;(d) the project activities for each sub-group.

Note: For project activities for a group of vehicles activity, see subsection 10(2).

(2) The application must also set out:(a) the service unit to be used for each sub-group; and(b) any intended use of the Green Vehicle Guide (including a statement about

why fuel consumption cannot be measured).

(3) The descriptions required by paragraphs (1)(c) and (d) may be done by class, where appropriate, including by reference to vehicle categories, transport operations or business units.

19 Service units

(1) The activity may be undertaken only in relation to vehicles that provide a service that can be appropriately measured in a service unit.

(2) If the project proponent uses a service unit for a vehicle category for a group of vehicles activity for one reporting period, the proponent must use the same service unit for the vehicle category for every other reporting period.

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(3) For a vehicle that carries both freight and passengers, passengers may be converted to weight at the rate of 78kg per passenger if the conversion is used consistently in working out the net abatement amount for all reporting periods for the project.

Division 3—Requirements for aggregated individual vehicles activities

20 Aggregated individual vehicles

(1) An aggregated individual vehicles activity must be used in relation to one or more individual vehicles.

(2) The activity must not be used for light vehicles.

21 Information to be included in application for declaration

(1) The application for a project that involves an aggregated individual vehicles activity must include descriptions of the following:

(a) the duty cycles of the vehicles;(b) the project activities involved.

Note: For project activities for an aggregated individual vehicles activity, see subsection 10(2).

(2) The application must also set out:(a) an estimate of the number and categories of vehicles to be included in the

activity; and (b) the type of service and the service unit to be used for each vehicle.

(3) The descriptions required by paragraphs (1)(a) and (b) may be done by class, where appropriate, including by reference to vehicle categories.

22 Service units

(1) The activity may be undertaken only in relation to vehicles that provide a service that can appropriately be measured in a service unit.

(2) If the project proponent uses a service unit for a vehicle for an aggregated individual vehicles activity for one reporting period, the proponent must use the same service unit for the vehicle for every other reporting period.

(3) For a vehicle that carries both freight and passengers, passengers may be converted to weight at the rate of 78kg per passenger if the conversion is used consistently in working out the net abatement amount for all reporting periods for the project.

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Division 4—Requirements for transport mode shift activities

23 Transport mode shift

(1) A transport mode shift activity must consist of undertaking the project activity in relation to one or more TMS entities, each of which:

(a) provides eligible transport of eligible freight over a particular eligible route; and

(b) provided eligible transport of eligible freight over the route during each of the relevant baseline years (whether intermittently or regularly).

Eligible freight moved under sub-contract not to be counted towards activity

(2) The project proponent must not attribute eligible transport of eligible freight on a particular eligible route by a particular TMS entity to a transport mode shift activity of that entity if the entity transported the freight under a sub-contract.

(3) For this determination, an entity is taken to transport eligible freight under a sub-contract if:

(a) the entity transports the freight:(i) in order to fulfil a contractual or other obligation with another entity;

or(ii) otherwise for or on behalf of another entity; and

(b) the other entity is engaged in the business of transporting eligible freight for customers.

Note: So long as the other entity was not also transporting the freight under a sub-contract, subsection (2) would not prevent it from attributing the transport to a transport mode shift activity.

Rule against double counting

(4) The eligible transport of a particular unit of eligible freight on a particular eligible route may be attributed to:

(a) one TMS entity only; and(b) the transport mode shift activity of one land and sea transport project only.

24 Information to be included in application for declaration

(1) The application for a project that involves a transport mode shift activity must identify, in the form approved by the Regulator, one or more TMS entities, in relation to which the project is expected to be undertaken.

(2) The application must also:(a) identify each eligible route on which, at the time of the application, the

project proponent expects eligible transport of eligible freight to be undertaken for the purposes of the project; and

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(b) identify which TMS entity is expected to transport eligible freight on each eligible route; and

(c) for eligible freight that the project proponent expects, at the time of the application, to be transported on eligible routes for the purposes of the project—include, to the extent possible at the time of the application:

(i) a description of the freight; and(ii) the relevant eligible freight descriptors; and

(d) describe how each TMS entity intends to implement the activity.Note 1: For paragraph (c), although it might not be possible to identify the eligible freight at the

time of application with any particularity, the project proponent might be able to indicate, for example, the businesses with which a TMS entity has contractual arrangements under which it will be transporting eligible freight on eligible routes, and the sort of freight that is usually transported for such businesses.

Note 2: For paragraph (d), this might include descriptions of contract negotiations, optimisation studies or management decisions that will lead to the changes in operations that are to be implemented as part of the project.

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Part 4—Net abatement amounts

Division 1—Operation of this Part

25 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 land and sea transport project that is an eligible offsets project.

26 Overview of gases accounted for in 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 land and sea transport project.

Greenhouse gas abatement and emissionsItem Relevant

calculationEmissions source Greenhouse gas

1 Baseline emissions

Fuel combustion Carbon dioxide (CO2)Methane (CH4)Nitrous oxide (N2O)

2 Baseline emissions

Electricity consumption (as transport fuel)

Carbon dioxide (CO2)Methane (CH4)Nitrous oxide (N2O)

3 Project emissions

Fuel combustion Carbon dioxide (CO2)Methane (CH4)Nitrous oxide (N2O)

4 Project emissions

Electricity consumption (as transport fuel)

Carbon dioxide (CO2)Methane (CH4)Nitrous oxide (N2O)

27 Requirement to report on baseline years consistently

When ascertaining the net abatement amount in accordance with this Part in relation to a reporting period, the project proponent must use the same set of baseline years throughout the crediting period for:

(a) for a group of vehicles activity—the activity; and(b) for an aggregated individual vehicles activity—each vehicle; and(c) for a transport mode shift activity—each entity and route.

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Division 2—Calculation of net abatement amount

28 Operation of this Division

This Division specifies the method for working out the carbon dioxide equivalent net abatement amount for a reporting period for a land and sea transport project.

29 Overview—the net abatement amount

The net abatement amount for a land and sea transport project that is an eligible offsets project is calculated by summing whichever of the following are applicable:

• if the project involves a group of vehicles activity—the contribution to the net abatement amount from that activity (AGoV);

• if the project involves an aggregated individual vehicles activity—the contribution to the net abatement amount from that activity (AAIV);

• if the project involves a transport mode shift activity—the contribution to the net abatement amount from that activity (ATMS).

These amounts are calculated in accordance with Division 3, Division 4 and Division 6 of this Part, respectively.

30 Net abatement amount—land and sea transport project

(1) The net abatement amount for a land and sea transport project for a reporting period, in tonnes CO2-e, is worked out using the equation (equation #1A):

A=AGoV + AAIV + ATMS

where:

AGoV means the contribution to the net abatement amount for the reporting period from undertaking a group of vehicles activity, and is:

(a) if the project involved such an activity—equal to the amount AGoV calculated in accordance with Division 3; and

(b) otherwise—equal to zero.

AAIV means the contribution to the net abatement amount for the reporting period from undertaking an aggregated individual vehicles activity, and is:

(a) if the project involved such an activity—equal to the amount AAIV calculated in accordance with Division 4

(b) otherwise—equal to zero.

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ATMS means the contribution to the net abatement amount for the reporting period from undertaking a transport mode shift activity, and is:

(a) if the project involved such an activity—equal to the amount ATMS calculated in accordance with Division 6; and

(b) otherwise—equal to zero.

Division 3—Group of vehicles activities

31 Operation of this Division

This Division specifies the method for working out the contribution to the net abatement amount for a reporting period for a land and sea transport project from a group of vehicles activity.

32 Activity summary—group of vehicles

Proponents undertaking this activity treat all vehicles of the same vehicle category in a transport operation or business unit as a sub-group. Monitoring and treatment is conducted at the sub-group level.

The baseline scenario is that emissions intensity will either improve or stay constant within a sub-group, depending on the vehicle category. To set the baseline for each sub-group, a decline rate based on the vehicle category and service unit is applied to the historical emissions intensity of the sub-group, to account for business-as-usual improvements.

Some proponents may not be able to monitor fuel use (for example, hire car and fleet car companies). In this instance, and for the vehicle category of light vehicles only, the baseline emissions intensity can be set using the Green Vehicle Guide. The result of not being able to monitor fuel data is that the only project activity able to be credited is vehicle replacement. The emissions intensity in a particular period for the sub-group is set as the average emissions intensity of the vehicles within the sub-group, based on their make, model and year.

The baseline emissions for a vehicle sub-group are calculated as the baseline emissions intensity multiplied by project quantity of service. The net abatement amount is the baseline emissions minus the project emissions. Where this calculation results in negative abatement, it is set to zero for that sub-group. The contribution to the net abatement amount from the group of vehicles activity is the aggregation of the contribution from all vehicle sub-groups.

33 Net abatement amount—group of vehicles

(1) The contribution to the net abatement amount from the group of vehicles activity for the reporting period, in tonnes CO2-e, is worked out using the equation (equation #1):

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AGoV =∑c

A c

where:

AGoV means the contribution to the net abatement amount from the group of vehicles activity for the reporting period, in tonnes CO2-e.

Ac means the contribution to the net abatement amount from vehicle sub-group c for the reporting period, in tonnes CO2-e, worked out using equation #2.

(2) The contribution to the net abatement amount for vehicle sub-group c for the reporting period, in tonnes CO2-e, is worked out using the equation (equation #2):

Ac=max❑

(0 , ( EB,c−EP, c ))

where:

Ac means the contribution to the net abatement amount from vehicle sub-group c for the reporting period, in tonnes CO2-e.

EB,c means baseline emissions for vehicle sub-group c for the reporting period, in tonnes CO2-e, worked out using equation #3.

EP,c means project emissions for vehicle sub-group c for the reporting period, in tonnes CO2-e, worked out using equation #16.

(3) The baseline emissions for vehicle sub-group c for the reporting period, in tonnes CO2-e, is worked out using the equation (equation #3):

EB,c=I B ,c × QS , c

where:

EB,c means baseline emissions for vehicle sub-group c for the reporting period, in tonnes CO2-e.

IB,c means the baseline emissions intensity, in tonnes CO2-e per service unit, for the vehicles in vehicle sub-group c for the reporting period worked out using equation #4.

QS,c means the quantity of service, QS, for the vehicles in vehicle sub-group c for the reporting period, in service units, determined in accordance with the monitoring requirements.

(4) The baseline emissions intensity, in tonnes CO2-e per service unit, for the vehicles in vehicle sub-group c for the reporting period is worked out using the equation (equation #4):

I B, c=I H ,c × Dcy

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where:

IB,c means the baseline emissions intensity, in tonnes CO2-e per service unit, for the vehicles in vehicle sub-group c for the reporting period.

IH,c means the historical emissions intensity, in tonnes CO2-e per service unit, for vehicles in vehicle sub-group c worked out using:

(a) unless paragraph (b) applies—equation #5; and(b) if sub-group c consists of vehicles where fuel consumption cannot be

measured—equation #15.

Dc means the decline rate for the service unit for the vehicle category of vehicles in vehicle sub-group c given by the table in clause 1 of Schedule 2.

y means the year of the project in which the reporting period ends (where the first year after the declaration of the project is 1, the second year after the declaration of the project is 2, and so on).

(5) For paragraph (a) of the definition of IH,c, the historical emissions intensity, in tonnes CO2-e per service unit, for the vehicles in vehicle sub-group c is worked out using the equation (equation #5):

I H , c=min❑

( Ic , y )

y∈ {0 ,−1,−2 }

where:

IH,c means the historical emissions intensity, in tonnes CO2-e per service unit, for the vehicles in vehicle sub-group c.

Ic,y means emissions intensity, in tonnes CO2-e per service unit, for the vehicles in vehicle sub-group c in year y where:

(a) 0, –1 and –2 are the baseline years for the activity; andNote: See section 15 for the baseline years.

(b) Ic,y is given by I as worked out for the vehicles in the vehicle sub-group using equation #14.

Division 4—Aggregated individual vehicles activities

34 Operation of this Division

This Division specifies the method for working out the contribution to the net abatement amount for a reporting period for a land and sea transport project from an aggregated individual vehicles activity.

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35 Activity summary—aggregated individual vehicles

Proponents undertaking this activity monitor and treat vehicles individually. The resulting abatement from the individual vehicles is then aggregated. The baseline scenario for an individual vehicle is dependent on project activity, vehicle category and data availability.

For an individual vehicle, the baseline scenario is that its emissions intensity will not improve without treatment. The baseline is therefore set as the historical emissions intensity of the vehicle prior to the abatement activity being undertaken.

If the vehicle is replaced, then the baseline scenario is that the vehicle would be replaced with one that is similar to it or other comparable vehicles in the operation or business unit. The baseline is therefore set at the lower of the following:

(a) the historical emissions intensity of the vehicle being replaced;(b) the emissions intensity of a reference group comprised of vehicles in

the same category or sub-category within the same transport operation or business unit.

If the vehicle is a ship that must comply with Annex VI of the International Convention for the Prevention of Pollution from Ships, then the baseline emissions intensity is set as whichever is the smaller of the required Energy Efficiency Design Index (which effectively acts as a regulatory baseline) and the historical emissions intensity for the vehicle.

Vehicle baseline emissions are calculated as the baseline emissions intensity multiplied by the quantity of service. The vehicle net abatement amount is the vehicle baseline emissions minus the vehicle project emissions. Where this results in negative abatement, the abatement is set at zero for that vehicle.

The contributions to the net abatement amount from each vehicle are then aggregated across all vehicles in the activity to derive the contribution to the net abatement amount from the aggregated individual vehicles activity.

36 Net abatement amount—aggregated individual vehicles

(1) The contribution to the net abatement amount from the vehicles in the project for the reporting period, in tonnes CO2-e, is worked out using the equation (equation #6):

AAIV =∑v

Av

where:

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AAIV means the contribution to the net abatement amount from the vehicles in the project for the reporting period, in tonnes CO2-e.

Av means the contribution to the net abatement amount for vehicle v for the reporting period, in tonnes CO2-e, worked out as follows:

(a) if either:(i) vehicle v retained its original duty cycle for 80% or more of the

reporting period; or(ii) vehicle v is a replacement vehicle that has the same duty cycle as the

vehicle it replaced, and the replaced vehicle is sold or disposed of within 90 days before or after the replacement vehicle is first used in the project;

using the equation (equation #6A):Av=max

❑(0 , ( EB , v−EP, v) )

(b) if either:(i) vehicle v has changed its original duty cycle for more than 20% of the

reporting period; or(ii) vehicle v is a replacement vehicle but subparagraph (a)(ii) does not

apply;using the equation (equation #6B):

Av=0

where:

EB,v means the baseline emissions for vehicle v, in tonnes CO2-e, worked out using equation #7.

EP,v means project emissions for vehicle v for the reporting period, in tonnes CO2-e, worked out using equation #16.

(2) The baseline emissions for vehicle v, in tonnes CO2-e, is worked out using the equation (equation #7):

EB, v=IB , v ×QS , v

where:

EB,v means the baseline emissions for vehicle v, in tonnes CO2-e.

IB,v means the baseline emissions intensity, in tonnes CO2-e per service unit, for vehicle v for the reporting period worked out using equation #8, #9 or #10, as required.

QS,v means quantity of service, QS, provided by vehicle v during the reporting period, in service units, determined in accordance with the monitoring requirements.

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(3) The baseline emissions intensity, in tonnes CO2-e per service unit, for vehicle v for the reporting period is worked out as follows:

(a) if vehicle v is a ship that must comply with the Energy Efficiency Design Index (EEDI) under the Navigation Act 2012, the Protection of the Sea (Prevention of Pollution from Ships) Act 1983 and Marine Order 97—using the equation (equation #8);

I B , v=min❑

( I Reg , v , I H , v )(b) if vehicle v is not a replacement vehicle and not covered by paragraph (a)

—using the equation (equation #9);I B, v=IH , v

(c) if vehicle v is a replacement vehicle not covered by paragraph (a)—using the equation (equation #10);

I B, v=min❑

( IR ,v , I H ,Rep )

where:

IB,v means the baseline emissions intensity, in tonnes CO2-e per service unit, for vehicle v for the reporting period.

IH,v means the historical emissions intensity, in tonnes CO2-e per service unit, for vehicle v worked out using equation #11.

IH,Rep means the historical emissions intensity, in tonnes CO2-e per service unit, of the vehicle replaced by vehicle v worked out using equation #12.

IR,v means the emissions intensity, in tonnes CO2-e per service unit, for the reference group for vehicle v worked out using equation #13.

IReg,v is worked out using the equation (equation #10A):

I Reg , v=I EEDI ×10−6

Fnmi×∑

i∑

j

EF i , j

EF i ,CO2

where:

IReg,v means the regulatory baseline emissions intensity, in tonnes CO2-e per service unit, for replacement ship v.

IEEDI means the emissions intensity, in grams CO2 per tonne-nautical mile, of the EEDI target for vehicle v when it becomes a replacement ship set as set out in Regulation 21 of Annex VI of the International Convention for the Prevention of Pollution from Ships.

EFi,CO2 means the emissions factor in kilograms of CO2-e per gigajoule for CO2 for fuel type i that is used to power or operate ship v, determined in accordance with the monitoring requirements.

Fnmi means:29

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(a) if service units are in nautical miles—1; or(b) if service units are in kilometres—1.852.

EFi,j means the emissions factor in kilograms of CO2-e per gigajoule for gas type j for fuel type i that is used to power or operate ship v, determined in accordance with the monitoring requirements.

(4) The historical emissions intensity, in tonnes CO2-e per service unit, for vehicle v is worked out using the equation (equation #11):

I H , v=min❑

( I v , y )

y∈ {0 ,−1,−2 }

where:

IH,v means the historical emissions intensity, in tonnes CO2-e per service unit, for vehicle v.

Iv,y means the emissions intensity, in tonnes CO2-e per service unit, for vehicle v in year y where:

(a) 0, –1 and –2 are the baseline years for vehicle v; andNote: See section 15 for the baseline years.

(b) I is worked out for vehicle v using equation #14.

(5) The historical emissions intensity, in tonnes CO2-e per service unit, of the vehicle replaced by vehicle v is worked out using the equation (equation #12):

I H , Rep=min❑

( I Rep, y )

y∈ {0 ,−1,−2 }

where:

IH,Rep means the historical emissions intensity, in tonnes CO2-e per service unit, of the vehicle replaced by vehicle v.

IRep,y means the emissions intensity, in tonnes CO2-e per service unit, for the vehicle replaced by vehicle v in year y where:

(a) 0, –1 and –2 are the baseline years for vehicle v; andNote: See section 15 for the baseline years.

(b) I is worked out for the vehicle replaced by vehicle v using equation #14.

(6) The emissions intensity, in tonnes CO2-e per service unit, for the reference group for vehicle v, is worked out using the equation (equation #13):

I R, v=miny

(average ( I r , y ))

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y∈ {0 ,−1,−2 }

where:

IR,v means the emissions intensity, in tonnes CO2-e per service unit, for the reference group for vehicle v.

Ir,y means the emissions intensity, in tonnes CO2-e per service unit, for vehicle r in the reference group in year y where:

(a) 0, –1 and –2 are the baseline years for vehicle v; andNote: See section 15 for the baseline years.

(b) I is worked out for vehicle r using equation #14.

Division 5—Calculating emissions intensity (I)

37 Calculating emissions intensity (I)

(1) In this section:

relevant vehicles means:(a) in relation to Division 3—the vehicles in the sub-group of vehicles; and(b) in relation to Division 4—the individual vehicle;

the emissions intensity of which is being calculated.

(2) The emissions intensity, in tonnes CO2-e per service unit, for the relevant vehicles for a particular period is worked out as follows:

(a) unless paragraph (b) applies—using the equation (equation #14):

I= EQs

(b) for a sub-group that consists of light vehicles where fuel consumption cannot be measured (see paragraph (b) of the definition of IH,c in subsection 33(4))—using the equation (equation #15):

I= 1n ×106 ×∑

v (I GVGElec , v × EFEC+∑i∑

j (I GVGComb ,v ×EFi , j , v

EFi ,CO2 , v ))where:

I means the emissions intensity, in tonnes CO2-e per service unit, for the relevant vehicles for the period.

E means the total emissions for the relevant vehicles for the period, in tonnes CO2-e, worked out using equation #16.

QS means quantity of service provided by the relevant vehicles during the period, in service units, determined in accordance with section 14 or the monitoring requirements, as appropriate.

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n means the number of light vehicles in the sub-group.

v is a vehicle in vehicle sub-group c.

IGVGElec,v means:(a) the energy consumption for vehicle v, in watt hours per kilometre, as set

out for the vehicle in the Green Vehicle Guide in the column headed “Energy Consumption (Wh/km)”; or

(b) there is no energy consumption for vehicle v set out as mentioned in paragraph (a)—0.

Note: The use of the Green Vehicle Guide to determine emissions intensity prevents crediting of any activity other than vehicle replacement.

EFEC means:(a) for electricity obtained from an electricity grid that is a grid in relation to

which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms 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 and is applicable on the declaration day—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 in force on the declaration day.

IGVGComb,v means the emissions intensity, in grams CO2 per kilometre, as set out for the vehicle in the Green Vehicle Guide in the column headed “CO2 g/km Comb” for vehicle v for the period.Note: Where vehicles in the group do not have corresponding IGVGComb,v data, then the vehicles

must be excluded from the calculations. See subsection 17(8).

EFi,j,v means the emissions factor EFi,j in kilograms of CO2-e per gigajoule for each gas type j for fuel type i that is used to power or operate vehicle v, determined in accordance with the monitoring requirements.

EFi , CO2 , v means the emissions factor in kilograms of CO2-e per gigajoule for carbon dioxide for fuel type i that is used to power or operate vehicle v, determined in accordance with the monitoring requirements.

(3) The total emissions for the relevant vehicles for a particular period, in tonnes CO2-e, is worked out using the equation (equation #16):

E=EF +EEC

where:

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E means the emissions for the relevant vehicles for the period in tonnes CO2-e.

EF means the emissions for the period from transport fuel use used to power or operate the relevant vehicles, in tonnes CO2-e, worked out using equation #17.

EEC means the emissions for the period from consumed electricity used to power or operate the relevant vehicles, in tonnes CO2-e, worked out using equation #18.

(4) The emissions for a particular period from transport fuel used to power or operate the relevant vehicles, in tonnes CO2-e, is worked out using the equation (equation #17):EF=∑

i∑

jEF ,i , j

where:

EF means the emissions for the period from transport fuel used to power or operate the relevant vehicles, in tonnes CO2-e.

EF,i,j means emissions for the relevant vehicles from fuel type i of greenhouse gas j, in tonnes CO2-e, worked out using the equation (equation #17A):

EF, i , j=QF , i× EC i× EFi , j

1,000

where:

QF,i means the quantity of fuel type i used to power or operate the vehicle or vehicles during the period in cubic metres, kilolitres or gigajoules determined in accordance with section 14 or the monitoring requirements, as appropriate.

ECi means the energy content factor in gigajoules per kilolitre or other appropriate units for fuel type i determined in accordance with the monitoring requirements.

Note: If QF,i is measured in gigajoules, then ECi = 1.

EFi,j means the emissions factor in kilograms of CO2-e per gigajoule for each gas type j for fuel type i determined in accordance with the monitoring requirements.

(5) The emissions for a vehicle or vehicles for a particular period from consumed electricity used to power or operate the vehicles, in tonnes CO2-e, is worked out using the equation (equation #18):

EEC=max❑

(0 , ( QEC−QRen ))×EFEC

1,000where:

EEC means the emissions for the period from consumed electricity used to power or operate the relevant vehicles, in tonnes CO2-e.

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QEC means the quantity of electricity used to power or operate the relevant vehicles during the period in kilowatt hours, determined in accordance with section 14 or the monitoring requirements, as appropriate.

QRen means the quantity of eligible renewable electricity used to power or operate the relevant vehicles during the period in kilowatt hours, determined in accordance with section 14 or the monitoring requirements, as appropriate.

EFEC means:(a) for electricity obtained from an electricity grid that is a grid in relation to

which the NGA Factors document in force on the declaration day includes an emissions factor—that factor, in kilograms 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 and is applicable on the declaration day—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 in force on the declaration day.

(6) For subparagraph (b)(i) of the definition of EFEC in subsections (2) and (5), 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 6—Transport mode shift activities

38 Operation of this Division

This Division specifies the method for working out the contribution to the net abatement amount for a reporting period for a land and sea transport project from a transport mode shift activity.

39 Activity summary—transport mode shift

For the activity, the baseline scenario is that, on each eligible route, the proportion of eligible freight that is transported by rail will either remain static or will increase by a certain amount each year. The activity credits eligible carbon abatement that results from a TMS entity transporting eligible freight on eligible routes by rail, but only to the extent that the proportion of rail usage exceeds what would have been expected under the baseline scenario. This ensures that abatement is credited only for an increase in usage of rail that would be unlikely to have occurred in the ordinary course of events.

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If the activity involves more than one TMS entity, the contribution to the net abatement amount for the land and sea transport project resulting from the activity is calculated by summing the contribution from each participating TMS entity.

The project proponent is able to select which TMS entities and eligible routes to include in the project, and may add or remove TMS entities and eligible routes throughout the crediting period. However:

– each TMS entity must have transported eligible freight by eligible transport over all relevant eligible routes during each of the baseline years for the entity and route; and

– once a particular eligible route has been reported on for a particular TMS entity, the route must ordinarily be reported on whenever that entity is reported on, for the remainder of the crediting period.

It is possible that, for a particular TMS entity, the sum of the contributions to the net abatement amount from all of the eligible routes on which it transports eligible freight by eligible transport might be a negative number for a particular reporting period. If this is the case, the contribution to the net abatement amount from that entity is instead taken to be zero for the purposes of the project. Negative contributions to the net abatement amount from particular entities are not offset against positive contributions from other entities, nor are they carried forward into future reporting periods.

40 Data to be used for this Division

Requirement to report on all eligible routes

(1) If:(a) when calculating the amount ATMS for a particular reporting period, the

project proponent calculates the contribution from:(i) a particular TMS entity; and

(ii) a particular set of eligible routes over which it undertook eligible transport of eligible freight in that reporting period; and

(b) when calculating the amount ATMS for a later reporting period, the proponent calculates the contribution from that entity;

the proponent must calculate the contribution to ATMS from all eligible routes that were taken into account for that entity in any previous offsets reports.Note: See section 46 for a restriction on dividing, for the purposes of section 77A of the Act,

a project that involves a transport mode shift activity.

(2) However, if, for the whole of a reporting period:(a) a route is not an eligible route—it must be excluded from the offsets report

for that reporting period; or(b) a TMS entity:

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(i) did not undertake eligible transport of eligible freight over a particular eligible route, either by road or by rail; or

(ii) undertook eligible transport of eligible freight, but the monitoring requirement in items 7 and 8 of the table to subsection 51(1) were not complied with;

the route must be excluded for that TMS entity for that reporting period.Note: If either of paragraphs (2)(a) or (b) is applicable for a particular reporting period, this

must be stated in the offsets report for that reporting period—see subsection 45(3).

Requirement to account for all eligible freight transported on eligible routes

(3) When calculating the amounts TP,e,r,rail, TP,e,r,road, Ty,e,r,rail and Ty,e,r,road for a particular TMS entity e and a particular eligible route r, the proponent must take into account:

(a) the total amount of eligible transport, both by road and by rail, of eligible freight over that route over the relevant period by:

(i) the entity; or(ii) any associate of the entity; and

(b) if another entity transported eligible freight under a sub-contract with one of those entities during the relevant period—the total amount of eligible freight that is transported under a sub-contract with that entity over that period.

(4) For subsection (3), the relevant period is: (a) for TP,e,r,rail and TP,e,r,road—the reporting period in relation to which the net

abatement amount is being calculated; and(b) for Ty,e,r,rail and Ty,e,r,road—baseline year y.

41 Net abatement amount—transport mode shift

(1) The contribution to the net abatement amount from the transport mode shift activity for the reporting period, in tonnes CO2-e, is worked out using the equation (equation #19):

ATMS=∑e

A e

where:

ATMS means the contribution to the net abatement amount from transport mode shift activities that were undertaken as part of the project for the reporting period, in tonnes CO2-e.

Ae means the contribution to the net abatement amount from TMS entity e for the reporting period, in tonnes CO2-e, and is worked out using equation #19A.

(2) For subsection (1), Ae is worked out using the equation (equation #19A):

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Ae=max❑

( 0 , A e ,interim )where:

Ae means the contribution to the net abatement amount from TMS entity e for the reporting period, in tonnes CO2-e.

Ae,interim means the interim contribution to the net abatement amount from TMS entity e for the reporting period, in tonnes CO2-e, and is worked out using equation #19B.

(3) For subsection (2), Ae,interim is worked out using the equation (equation #19B):

Ae ,interim=∑r

A e ,r

where:

Ae,interim means the interim contribution to the net abatement amount from TMS entity e for the reporting period, in tonnes CO2-e.

Ae,r means the contribution to the net abatement amount for TMS entity e from the eligible transport of eligible freight on eligible route r as part of the project, for the reporting period, in tonnes CO2-e, worked out using equation #20.Note: Both the amount Ae,r for a particular entity e on a particular route r and the amount

Ae,interim for the entity could be negative numbers, depending on the proportion of eligible transport of eligible freight on route r by the entity in the reporting period by rail and by road. However, as a result of equation #19A, the overall contribution to the net abatement amount from any TMS entity e, Ae, cannot be a negative number, and will always be zero or positive.

(4) For subsection (3), Ae,r is worked out using the equation (equation #20):

Ae ,r=∆ Pe ,r × ( I road ,r × Lroad ,r−I rail , r × Lrail , r ) × (T P, e ,r , rail+T P, e, r ,road )

1,000,000

where:

Pe,r means the change in the proportion of eligible freight moved by eligible transport along eligible route r by eligible entity e by rail in the reporting period, and is worked out using equation #20AA.

Iroad,r means the emissions intensity of road transport for eligible route r, in grams CO2-e per tonne kilometre, as given by Schedule 3.

Lroad,r means the length of eligible route r by road, in kilometres, as given by Schedule 3.

Irail,r means the emissions intensity of rail transport for eligible route r, in grams CO2-e per tonne kilometre, as given by Schedule 3.

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Lrail,r means the length of eligible route r by rail, in kilometres, as given by Schedule 3.

TP,e,r,rail means the total amount of eligible freight that was transported by eligible transport on route r by entity e in accordance with paragraph 8(1)(a) (that is, by rail) during the reporting period for which the net abatement amount is being ascertained, in tonnes, determined in accordance with the monitoring requirements.Note: See subsection 40(3) for the data to be used to calculate TP,e,r,rail.

TP,e,r,road means the total amount of eligible freight that was transported by eligible transport on route r by entity e in accordance with paragraph 8(1)(b) (that is, by road) during the reporting period for which the net abatement amount is being ascertained, in tonnes, determined in accordance with the monitoring requirements.Note: See subsection 40(3) for the data to be used to calculate TP,e,r,road.

(5) For subsection (4), Pe,r for the reporting period and for entity e and route r is worked out using the equation (equation #20AA):

∆ Pe , r=PP,e ,r−PB ,e ,r− y× Pinc ,r

where:

PP,e,r means the proportion of eligible freight that was transported, by eligible transport, on eligible route r by entity e in accordance with paragraph 8(1)(a) (that is, by rail) as part of the project during the reporting period, and is worked out using equation #20A.

PB ,e ,r means the baseline proportion of eligible freight that was transported, by eligible transport, by entity e on route r in accordance with paragraph 8(1)(a) (that is, by rail) for that entity and that route, and is worked out using equation #20B.

y: if the year in which the reporting period ends is in the nth year of the crediting period, y is equal to n. (For example, if the reporting period ends during the first year of the crediting period, y is equal to 1. If the reporting period ends during the second year of the crediting period, y is equal to 2.)

Pinc,r means the expected annual change in the proportion of eligible freight transported by rail for eligible route r, as given by Schedule 3.

(6) For subsection (5), PP,e,r for the reporting period for entity e and route r is worked out using the equation (equation #20A):

PP,e ,r=T P, e, r ,rail

T P,e ,r ,rail+T P, e, r , road

where:

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TP,e,r,rail has the same value as in subsection (4).

TP,r,road has the same value as in subsection (4).

(7) For subsection (5), PB ,e ,r for entity e and route r is worked out using the equation (equation #20B):

PB ,e ,r=maxy

( PH ,e ,r , y )

y∈ {0 ,−1,−2 }

where:

PH,e,r,y is the historical proportion of eligible freight that was transported, by eligible transport, by entity e on route r in accordance with paragraph 8(1)(a) (that is, by rail) for that entity and that route in baseline year y, and is worked out using equation #20C.

0, –1 and –2 are the baseline years for the entity e and route r.Note: See section 15 for the baseline years.

(8) For subsection (7), PH,e,r,y for entity e and route r, and for baseline year y, is worked out using the equation (equation #20C):

PH ,e ,r , y=T y ,e ,r , rail

T y, e ,r , rail+T y, e ,r , road

Ty,e,r,rail means the total amount of eligible freight that was transported by eligible transport by entity e on route r in accordance with paragraph 8(1)(a) (that is, by rail) during baseline year y for route r and entity e, in tonnes.Note: See subsection 40(3) for the data to be used to calculate Ty,e,r,rail. This amount is

calculated on the basis of the total amount of eligible freight transported, by eligible transport, by rail over the route by the entity during baseline year y.

Ty,e,r,road means the total amount of eligible freight that was transported by eligible transport by entity e on route r in accordance with paragraph 8(1)(b) (that is, by road) during baseline year y for route r and entity e, in tonnes.Note: See subsection 40(3) for the data to be used to calculate Ty,e,r,road. This amount is

calculated on the basis of the total amount of eligible freight transported, by eligible transport, by road over the route by the entity during baseline year y.

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Part 5—Reporting, record-keeping and monitoring requirements

Division 1—Offsets report requirements

42 Operation of this Part

For paragraph 106(3)(a) of the Act, this Division sets out information that must be included in an offsets project report about a land and sea transport project that is an eligible offsets project.Note: The offsets report requirements in this determination are in addition to any offsets

report requirements set out in the Act, or in regulations or rules made under the Act.

43 Determination of certain factors and parameters

(1) If, in the circumstances described in paragraph 9(2)(b), a factor or parameter is defined or calculated for a reporting period by reference to an instrument or writing as in force from time to time, the offsets report about the project for the reporting period must include the following information for the factor or parameter:

(a) the versions of the instrument or writing used;(b) the start and end dates of each use;(c) the reasons why it was not possible to define or calculate the factor or

parameter by reference to the instrument or writing as in force at the end of the reporting period.

(2) If a parameter is determined under section 52 for the purpose of working out the carbon dioxide equivalent net abatement amount for a land and sea transport project for a reporting period, the offsets report about the project for the reporting period must include the following information for the parameter:

(a) the name of the parameter;(b) the start and end dates of the non-monitored period for which the parameter

was determined;(c) the value of the parameter and how that value was calculated;(d) the reasons why the project proponent failed to monitor the parameter as

required by the monitoring requirements.

44 Use of Green Vehicle Guide

If the Green Vehicle Guide is used in relation to a vehicle for working out the carbon dioxide equivalent net abatement amount for the reporting period, the offsets report must:

(a) include the details (make, model and fuel type) of the vehicle; and

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(b) if the vehicle is replaced during the reporting period—show that the vehicle was replaced and include the details (make, model and fuel type) of the replacement vehicle; and

(c) if the vehicle replaced another vehicle during the reporting period—show that the vehicle replaced another vehicle and include the details (make, model and fuel type) of the vehicle that was replaced.

45 Additional requirements for transport mode shift activity

(1) This section applies if the project involves a transport mode shift activity.

(2) For all eligible transportation of eligible freight that was included in a calculation undertaken in accordance with Part 4 for the reporting period, the offsets report must identify:

(a) the TMS entity; and(b) the eligible route; and(c) the freight, using the eligible freight descriptors;

in the form approved by the Regulator.

(3) If, for a reporting period, an eligible route was excluded because of subsection 40(2), the offsets report must state:

(a) if the route was excluded because of paragraph 40(2)(a)—that fact; and(b) if the route was excluded for a particular TMS entity because of

paragraph 40(2)(b):(i) the relevant TMS entity or entities; and

(ii) whether the exclusion was because of subparagraph 40(2)(b)(i) or (ii).

46 Division of project into smaller projects

For subsection 77A(2) of the Act, the smallest part into which a land and sea transport project may be divided for the purposes of giving the Regulator an offsets report in relation to the part is:

(a) for a group of vehicles activity—a sub-group; or(b) for an aggregated individual vehicles activity—a part made up of a single

vehicle; or(c) for a transport mode shift activity—a part made up of all TMS entities and

all eligible routes that form part of the project.

Division 2—Record-keeping requirements

47 Operation of this Division

For paragraph 106(3)(c) of the Act, this Division sets out record-keeping requirements for a land and sea transport project that is an eligible offsets project.

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Note: The record-keeping requirements in this determination are in addition to any record-keeping requirements set out in the Act, or in regulations or rules made under the Act.

48 Record-keeping requirements—group of vehicles and aggregated individual vehicles activities

(1) This section applies if the project involves either of the following:(a) a group of vehicles activity;(b) an aggregated individual vehicles activity.

(2) The project proponent must keep the following records for each reporting period for each vehicle in the project during the reporting period:

(a) the registration number or equivalent unique identification code, vehicle category, fuel type, passenger or freight capacity and duty cycle for the vehicle;

(b) any period for which the vehicle was not operational (including because the vehicle was sold or otherwise disposed of);

(c) if the vehicle was sold or otherwise disposed of:(i) the date of the sale or disposal; and

(ii) the reasons for the sale or disposal;(d) the project activities (if any) performed on the vehicle; and(e) if the proponent converted any unit of measure into a service unit—records

of what conversions were performed and how the conversions were undertaken.

(3) If the project involves changing operational practices, the project proponent must keep the records for each reporting period that detail the changes to operational practices.

(4) If the project is a group of vehicles activity, the project proponent must keep records:

(a) about the composition of the group and sub-groups in terms of vehicle categories in sufficient detail to support the decline rates used for the project; and

(b) if a vehicle moved into or from the project during the period—about:(i) when the movement occurred; and

(ii) whether the movement was to or from a related group; and(iii) the reasons for the movement.

(5) If the project involves an aggregated individual vehicles activity and a vehicle in the project is replaced, the project proponent must keep records about the replacement, including records about:

(a) vehicles associated with the replacement; and(b) when the replacement occurred; and(c) the reasons for the replacement; and

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(d) the sale or disposal of the vehicle that was replaced; and(e) the reference group for the vehicle.

Note: Records kept for the purposes of paragraph (c) could include records of executive decisions.

(6) If a vehicle (the first vehicle) or piece of equipment other than a vehicle is used to power, operate or assist in powering or operating a vehicle in the project, the project proponent must keep records that show whether or not the first vehicle or piece of equipment was installed as part of the project.

49 Record-keeping requirements—transport mode shift activity

(1) This section applies if the activity involves a transport mode shift activity.

(2) For all eligible transportation of eligible freight that was included in a calculation undertaken in accordance with Part 4 for the reporting period, the project proponent must keep records that include a description of the freight.Note: This supplements the information that is included in the offsets report as a result of

subsection 45(2).

Division 3—Monitoring requirements

50 Operation of this Division

For paragraph 106(3)(d) of the Act, this Division sets out requirements to monitor a land and sea transport project that is an eligible offsets project.Note: The monitoring requirements in this determination are in addition to any monitoring

requirements set out in the Act, or in regulations or rules made under the Act.

51 Requirements to monitor certain parameters

(1) The project proponent for a land and sea transport project must monitor a parameter set out in an item of the following table in accordance with the instructions in the item, to the extent needed in order to ascertain the net abatement amount in accordance with this determination.

Monitored parameters

Item Para-

meterDescription Unit Measurement procedure (including

frequency as required)

1 QS Quantity of service

In accordance with Schedule 1

Monitored in accordance with industry practice for the service unit.Frequency—continuously

2 QF The quantity of fuel

Kilolitres, cubic metres or gigajoules

Measured using:(a) a commercial grade meter; or(b) relevant purchase records.

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Monitored parametersIt

em Para-meter

Description Unit Measurement procedure (including frequency as required)

Frequency—continuously3 QEC The quantity of

electricity used to power or operate a vehicle or vehicles

Kilowatt hours.If QEC 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

Measured using:(a) a commercial grade meter; or(b) relevant purchase records.Frequency—continuously

4 QRen The quantity of eligible renewable electricity used to power or operate a vehicle or vehicles

Kilowatt hours.If QRen 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

Measured using one or more of the following, or derived from measurements from one or more of the following using a mathematical formula with no observable loss of precision:(a) a commercial grade meter;(b) relevant generation records, such as

records from an energy retailer or network operator;

(c) an inverter that:(i) satisfies the requirements of

Australian Standard AS 4777 as in force from time to time; or

(ii) is on the list of approved inverters maintained by the Clean Energy Council, as it exists from time to time.

(The list of approved inverters could in 2015 be viewed on the Clean Energy Council’s website (http://www.solaraccreditation.com.au)).Frequency—continuously

5 EFi,j Emission factor for gas type j released from the combustion of fuel type i

kg CO2-e/GJ Worked out:(a) where j is methane—using the

emission factor for methane released from the combustion of fuel type i set out in Part 3 or 4 of Schedule 1 to the NGER (Measurement) Determination; or

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Monitored parametersIt

em Para-meter

Description Unit Measurement procedure (including frequency as required)

(b) where j is nitrous oxide—using the emission factor for nitrous oxide released from the combustion of fuel type i in Part 3 or 4 of Schedule 1 to the NGER (Measurement) Determination; or

(c) where j is carbon dioxide—using one of the following options:

(i) using the emission factor for carbon dioxide released from the combustion of fuel type i set out in Part 3 or 4 of Schedule 1 to the NGER (Measurement) Determination;

(ii) in accordance with Division 2.4.3 of the NGER (Measurement) Determination;

(iii) in accordance with Division 2.4.4 of the NGER (Measurement) Determination.

However, the option used to work out EFi,j, where j is carbon dioxide, must be used for all vehicles in the project, and:(a) if the option in subparagraph (c)(ii) is

used for a reporting period, then only an option in subparagraph (c)(ii) or (c)(iii) may be used for subsequent reporting periods; or

(b) if the option in subparagraph (c)(iii) is used for a reporting period, then that option must be used for subsequent reporting periods.

Frequency—in accordance with the NGER (Measurement) Determination

6 ECi Energy content factor for fuel type i

GJ/kL One of the following:(a) using the energy content factor of

fuel type i in Part 3 or 4 of Schedule 1 to the NGER (Measurement) Determination;

(b) estimated by analysis in accordance with Subdivision 2.4.3.2 of the

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Monitored parametersIt

em Para-meter

Description Unit Measurement procedure (including frequency as required)

NGER (Measurement) Determination;

(c) estimated by analysis in accordance with Division 2.4.4 of the NGER (Measurement) Determination.

However, the option used to work out ECi must be used for all vehicles that are part of the project, and:(a) if the option in paragraph (b) (above)

is used for a reporting period, then only the option in paragraph (b) (above) or (c) may be used for subsequent reporting periods; or

(b) if the option in paragraph (c) is used for a reporting period, then that option must be used for subsequent reporting periods.

Frequency—in accordance with the NGER (Measurement) Determination

7 TP,e,r,road Total amount of eligible freight that was transported by eligible transport by eligible entity e on eligible route r by road during the reporting period

t Monitored in accordance with industry practice, and in accordance with subsection 40(3) Frequency—continuously

8 TP,e,r,rail Total amount of eligible freight that was transported by eligible transport by eligible entity e on eligible route r by rail during the reporting period

T Monitored in accordance with industry practice, and in accordance with subsection 40(3)Frequency—continuously

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

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Note: If subsection (1) requires a parameter to be monitored continuously, it must be monitored at intervals that are appropriate for substantiating the parameter.

(3) Monitoring under this section must be done in accordance with the appropriate measuring requirements.

(4) 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.

52 Consequences of not meeting requirement to monitor certain parameters

(1) If, during a particular period (the non-monitored period) in a reporting period, the project proponent for a land and sea project fails to monitor a parameter as required by the monitoring requirements, the value of the parameter for the purpose of working out the activity abatement portions for the reporting period is to be determined for the non-monitored period in accordance with the following table.

Consequence of not meeting requirement to monitor certain parametersItem Parameter Determination of parameter for non-monitored

period

1 Each of the following:(a) QS;(b) QF;(c) QEC.

The project proponent must make a conservative estimate of the parameter having regard to:(a) any relevant measuring 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.2 If either of the following has been

worked out in accordance with Division 2.4.3 or 2.4.4 of NGER (Measurement) Determination (apart from during the non-monitored period):(a) EFi,j;(b) ECi.

The project proponent must use the estimate of the parameter where:(a) for any cumulative period of up to 3 months in any

12 months of a crediting period for the project—the factor for fuel type i and greenhouse gas j in Part 3 or 4 of Schedule 1 to the NGER (Measurement) Determination multiplied by 1.1; and

(b) for any period in excess of that 3 months—the factor for fuel type i and greenhouse gas j in Part 3

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Consequence of not meeting requirement to monitor certain parametersItem Parameter Determination of parameter for non-monitored

periodor 4 of Schedule 1 to the NGER (Measurement) Determination multiplied by 1.5.

3 Each of the following:(a) TP,e,r,road;(b) TP,e,r,rail.

TP,e,r,road and TP,e,r,rail are taken to be equal to zero for the non-monitored period.

Note: For item 3, if the non-monitored period is the entire reporting period, the route must be excluded for that TMS entity for that reporting period. See subparagraph (ii) of paragraph 40(2)(b).

(2) To avoid doubt, this section does not prevent the Regulator from taking action under the Act, or regulations or rules made under the Act, in relation to the project proponent’s failure to monitor a parameter as required by the monitoring requirements.Note: Examples of action that may be taken include the following:

(a) if the failure constitutes a breach of a civil penalty provision in section 194 of the Act (which deals with project monitoring requirements), the Regulator may apply for a civil penalty order in respect of the breach;

(b) if false or misleading information was given to the Regulator in relation to the failure, the Regulator may revoke the project’s section 27 declaration under regulations or rules made for the purposes of section 38 of the Act;

(c) if the giving of false or misleading information in relation to the failure led to the issue of Australian carbon credit units, the Regulator may require all or some of those units to be relinquished under section 88 of the Act.

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Schedule 1—Group of vehicles and aggregated individual vehicles activities—service units

Note: See the definition of service unit in section 5.

1 Service units

The following table sets out service units (m3km, pkm, pnmi, tkm, tnmi, vhr or vkt) for vehicle categories for land and sea transport projects.

Service units for vehicle categories for land and sea transport projectsItem Vehicle category Group of vehicles activity Aggregated individual

vehicles activity

1 Light vehicles vkt n/a2 Rigid trucks vkt or tkm vkt or tkm 3 Articulated trucks vkt or tkm vkt or tkm4 Buses vkt or pkm vkt or pkm 5 Non-freight-carrying trucks vkt or m3km vkt or m3km 6 Rail freight tkm tkm7 Electric passenger rail pkm pkm8 Light passenger rail pkm pkm9 Diesel passenger rail pkm pkm10 Coastal shipping tkm or tnmi tkm or tnmi 11 Ferries vkt or pkm or pnmi vkt or pkm or pnmi12 Mobile equipment (all) n/a vkt or tkm or vhr

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Schedule 2—Group of vehicles activity—decline ratesNote: See the definition of decline rate in section 5.

1 Decline rates for group of vehicles activities

The following table sets out decline rates for vehicles in a group of vehicles activity.

Decline rates for vehicles in a group of vehicles activityItem Vehicle category Service unit Decline rate

1 Light vehicles vkt 0.9922 Rigid trucks vkt 0.9963 Rigid trucks tkm 0.9844 Articulated trucks vkt or tkm 1.0005 Buses vkt or pkm 1.0006 Non-freight-carrying trucks vkt or m3km 0.9857 Rail freight tkm 0.9908 Electric passenger rail pkm 0.9809 Light passenger rail pkm 0.99010 Diesel passenger rail pkm 0.98011 Coastal shipping tkm or tnmi 1.00012 Ferries vkt or pkm or pnmi 0.979

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Schedule 3—Transport mode shift activity—eligible routes and related informationNote: See the definition of eligible route in section 7, and equations #20 and #20AA in subsections 41(4) and (5).

1 Table 1—Eligible routes

For section 7 and subsection 41(4), the following are the eligible routes, where:(a) lengths are given in kilometres; and(b) intensities are given in grams CO2-e per tonne kilometre; and(c) a reference to the terminals of a particular city is a reference to the terminals identified for that city in table 2 (clause 2 of this Schedule).

Table 1—Eligible routes for transport mode shift activity and related information

Item Terminals at each end of the eligible route Pinc

(%) Road and rail connecting route Length Intensity

Road Rail Road Rail Road Rail

1 Sydney terminals Brisbane terminals 0 New England Highway North Coast Line 910 820 75 232 Sydney terminals Melbourne terminals 0 Hume Highway North South Corridor 768 826 75 23

3 Sydney terminals Adelaide terminals 0 Bathurst/Sturt Highway Sydney–Adelaide 1,340 1,530 75 23

4 Sydney terminals Perth terminals 0.09 Barrier Highway Sydney–Adelaide 3,860 3,660 67 19

5 Sydney terminals Darwin terminal 0 Landsborough Highway Sydney Darwin Rail 4,110 4,020 67 21

6 Melbourne terminals Adelaide terminals 0.09 Dukes/Western Highway Melbourne–Adelaide railway 676 720 72 19

7 Melbourne terminals Perth terminals 0.31 Western/Eyre Highway Melbourne Perth Rail 3,280 3,300 65 17

8 Melbourne terminals Brisbane terminals 0 Newell/Gore Highway North South Corridor/North Coast Line 1,687 1,646 73 23

9 Melbourne terminals Darwin terminal 0.18 Stuart/Western Highway Melbourne Darwin Rail 3,520 3,580 65 20

10 Adelaide terminals Brisbane terminals 0 Broken Hill/Newell Highway Adelaide Brisbane Rail 2,009 2,290 73 23

11 Adelaide terminals Perth terminals 0.38 Eyre Highway Perth–Adelaide Rail 2,610 2,540 65 17

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Table 1—Eligible routes for transport mode shift activity and related informationIt

em Terminals at each end of the eligible route Pinc (%)

Road and rail connecting route Length Intensity

Road Rail Road Rail Road Rail

12 Adelaide terminals Darwin terminal 0.20 Stuart Highway Adelaide–Darwin Rail 2,890 2,870 65 20

13 Brisbane terminals Perth terminals 0 New England/Newell/Barrier Brisbane Perth Rail 4,420 4,490 67 20

14 Brisbane terminals Darwin terminal 0 Warrego/Barkly Highway Brisbane Darwin Rail 3,280 4,700 66 21

15 Brisbane terminals Townsville terminal 1.29 Bruce Highway North Coast Line 1,354 1,160 68 8

16 Perth terminals Darwin terminal 0.31 North West Coastal Perth Darwin Rail 3,930 4,040 63 18

17 Cloncurry terminal Townsville terminal 1.29 Flinders Highway Great Northern Line 784 758 67 818 Port Botany Yennora 0 South Western Motorway Bankstown Line 39 37 86 25

19 Port Botany Minto 0 South Western Motorway Airport, Inner West & South Line 51 46 86 25

20 Port Botany Chullora 0 South Western Motorway Bankstown Line 27 23 86 25

21 Port Botany Enfield 0 South Western Motorway Bankstown Line 20 20 86 25

22 Port Botany Cooks River 0 Foreshore Road Bankstown Line 10 10 86 25

23 Port Botany Newcastle (Carrington) 0 Pacific Motorway North Coast Line 179 167 80 25

24 Port Botany Bathurst (Kelso) 0 Great Western Highway Blue Mountains Line 216 241 81 25

25 Port Botany Griffith Train Station 0 Burley Griffin Way Southern NSW Line 566 625 75 25

26 Port Botany Bomen Train Station 0 Sturt Highway Southern NSW Line 454 375 76 25

27 Port Botany Harefield Train Station 0 Hume Highway Southern NSW Line 443 355 76 25

28 Port Botany Wee Waa Train Station 0 New England Highway North Western NSW Line 580 590 76 25

29 Port Botany Dubbo Train Station 0 Great Western Highway North Western NSW Line 409 458 78 25

30 Port Botany Narrabri West 0 New England Highway North Western NSW Line 536 570 76 2531 Port of Melbourne Griffith Train Station 0 Hume Highway Southern NSW Line 508 643 72 22

32 Port of Melbourne Bomen Train Station 0 Olympic Highway Southern NSW Line 464 440 72 21

33 Port of Melbourne Harefield Train Station 0 Olympic Highway Southern NSW Line 481 457 72 21

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2 Table 2—intermodal terminals for cities

The following are the intermodal terminals for the cities mentioned in table 1:

Item City Intermodal terminal

1 Adelaide IslingtonGillmanPenfieldMackenzie

2 Brisbane Brisbane Multimodal TerminalMoolabinAcacia Ridge

3 Cloncurry Cloncurry Station4 Darwin Berrimah Road5 Melbourne Dynon

AltonaSomerton

6 Perth FremantleKwinanaKewdale-WelshpoolForrestfield

7 Sydney Port BotanyEnfieldChulloraYennoraMintoCooks River/Canal Road

8 Townsville Railway Estate

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