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EXPOSURE DRAFT EXPOSURE DRAFT Carbon Credits (Carbon Farming Initiative—High Efficiency Commercial Appliances) Methodology Determination 2015 I, Greg Hunt, Minister for the Environment, make the following determination. Dated [date] Greg Hunt [DRAFT ONLY—NOT FOR SIGNATURE] Minister for the Environment EXPOSURE DRAFT

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Page 1: Carbon Credits (Carbon Farming Initiative—High … · Web viewCarbon Credits (Carbon Farming Initiative—High Efficiency Commercial Appliances) Methodology Determination 2015 I,

EXPOSURE DRAFT

EXPOSURE DRAFT

Carbon Credits (Carbon Farming Initiative—High Efficiency Commercial Appliances) Methodology Determination 2015

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

Dated [date]

Greg Hunt [DRAFT ONLY—NOT FOR SIGNATURE] Minister for the Environment

EXPOSURE DRAFT

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ContentsPart 1 —Preliminary 4

1 Name .......................................................................................................................................42 Commencement........................................................................................................................43 Authority...................................................................................................................................44 Duration....................................................................................................................................45 Definitions................................................................................................................................46 References to factors and parameters from external sources...................................................5

Part 2 —High efficiency commercial appliances project 57 High efficiency commercial appliances project.......................................................................5

Part 3 —Project requirements 58 Operation of this Part...............................................................................................................59 Information to be included in application for declaration........................................................610 Equipment unit requirements.................................................................................................611 Disposal of equipment unit.....................................................................................................6

Part 4 —Project abatement amount 7Division 1 —Preliminary 7

12 Operation of this Part.............................................................................................................713 Overview of gases accounted for in abatement calculations..................................................714 Equipment units to be used in calculations............................................................................715 Data to be used in calculations...............................................................................................8

Division 2 —Calculating project abatement amount 816 Summary................................................................................................................................817 Equation 1—project abatement amount (A)..........................................................................818 Equation 2—net abatement amount for a liquid-chilling package or close control air

conditioner (Ai).............................................................................................................919 Equation 3—baseline energy consumption for a liquid-chilling package (EB,i).....................920 Equation 4—project energy consumption for a liquid-chilling package (EP,i).....................1021 Equation 5—baseline energy consumption for a close control air conditioner (EB,i)...........1022 Equation 6—project energy consumption for a close control air conditioner (EP,i).............1123 Equation 7—net abatement amount of a refrigerated display cabinet (Ai)...........................11

Part 5 —Reporting, notification and record-keeping requirements 12Division 1 —Offsets report requirements 12

24 Operation of this Division....................................................................................................1225 Information that must be included in an offsets report.........................................................12

Division 2 —Notification requirements 1226 Operation of this Division....................................................................................................1227 Notification requirements.....................................................................................................13

Division 3 —Record-keeping requirements 1328 Operation of this Division....................................................................................................1329 Record-keeping requirements...............................................................................................13

Part 6 —Dividing a high efficiency commercial appliances project 1330 Division of project for reporting purposes...........................................................................13

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Schedule 1 —Liquid-chilling package default factors 14Schedule 2 —Close control air conditioner default factors 15Schedule 3 —Refrigerated display cabinet default factors 16

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—Preliminary

Name

This is the Carbon Credits (Carbon Farming Initiative—High Efficiency Commercial Appliances) Methodology Determination 2015.

Commencement

This determination commences on the day after it is registered.

Authority

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

Duration

This determination remains in force for the period that:begins when this determination commences; andends on the day before this determination would otherwise be repealed under subsection 50(1) of the Legislative Instruments Act 2003.

Definitions

In this determination:

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

CO2-e means carbon dioxide equivalent.

close control air conditioner has the same meaning as in the Greenhouse and Energy Minimum Standards (Close Control Air Conditioners) Determination 2012.

declaration day, in relation to a high efficiency commercial appliances project, means the day the project is declared to be an eligible offsets project.

equipment unit means a unit of one of the following categories of equipment:(a) a refrigerated display cabinet;(b) a liquid-chilling package; or(c) a close control air conditioner.

GEMS determination has the same meaning as in the Greenhouse and Energy Minimum Standards Act 2012.

GEMS Register has the same meaning as in the Greenhouse and Energy Minimum Standards Act 2012.

high efficiency commercial appliances project—see section 7.

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high efficiency level has the same meaning as in the Greenhouse and Energy Minimum Standards Act 2012.

liquid-chilling package has the same meaning as in the Greenhouse and Energy Minimum Standards (Liquid-chilling Packages Using the Vapour Compression Cycle) Determination 2012.

model identifier has the same meaning as in the Greenhouse and Energy Minimum Standards Act 2012.

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

project abatement amount, of a high efficiency commercial appliances project for 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 12).

refrigerated display cabinet has the same meaning as in the Greenhouse and Energy Minimum Standards (Refrigerated Display Cabinets) Determination 2012.

second-hand has the same meaning as in the Greenhouse and Energy Minimum Standards Act 2012.

sensible energy efficiency ratio, for a close control air conditioner, has the meaning given by Australian/New Zealand Standard 4965.1:2008 Performance of close control air conditioners. Part 1: Testing for rating.

References to factors and parameters from external sources

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

Subsection (1) does not apply if:this determination specifies otherwise; orit 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.

—High efficiency commercial appliances project

High efficiency commercial appliances project

For paragraph 106(1)(a) of the Act, this determination applies to an offsets project that involves the activity of installing one or more equipment units each of which satisfies the requirements of section 10 (a high efficiency commercial appliances project).

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—Project requirements

Operation of this Part

For paragraph 106(1)(b) of the Act, this Part sets out requirements that must be met for a high efficiency commercial appliances project to be an eligible offsets project.

Information to be included in application for declaration

The application under section 22 of the Act in relation to the project must include a description of the project, including the following:

for each premises at which an identified equipment unit is to be installed:the category and model identifier of the equipment units to be installed; andthe location of the premises in the form approved by the Regulator; andthe type of premises (for example, a supermarket, office or warehouse);

for each class of potential installations:a description of the class; andany available information about the location of premises where the equipment unit may be installed in the form approved by the Regulator; andthe potential type of premises where the equipment unit may be installed;

how any equipment units that are removed as part of the project, or in association with it, will be disposed of.

In this section:

potential installation means one of a class of installations of the same or similar equipment units that have not yet been identified.

Equipment unit requirements

Each equipment unit installed as part of the project must comply with the requirements in this section on the date the equipment unit is verified as meeting its design specifications, following testing undertaken after installation.

The equipment unit must not be second-hand.

The model of the equipment unit must be on the GEMS Register.

A refrigerated display cabinet must be of a model that has achieved a high efficiency level under the Greenhouse and Energy Minimum Standards (Refrigerated Display Cabinets) Determination 2012.

A liquid-chilling package must be of a model whose integrated part load value on the GEMS Register is equal to or greater than the high efficiency threshold specified for such a model in column 5 of Schedule 1.

A close control air conditioner must be of a model whose sensible energy efficiency ratio is equal to or greater than the high efficiency threshold specified for such a model in column 4 of Schedule 2.

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Disposal of equipment unit

If the high efficiency commercial appliances project will involve or require the replacement of an equipment unit, it must ensure that the replaced equipment unit is disposed of but not re-used or refurbished.

Subsection (1) does not prevent the equipment unit from being broken down into components and those components being recycled, other than for use in an equipment unit.Note: The project proponent may comply with this section by, for example:

rendering the unit not usable or refurbishable before disposing of it; or selling the unit to a reputable scrap dealer or recycling business with an

assurance that it will not be refurbished or re-used.

—Project abatement amount

—Preliminary

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 high efficiency commercial appliances project that is an eligible offsets project.Note This is called the project abatement amount in this determination (see section 5).

Overview of gases accounted for in abatement calculations

The following table provides an overview of the greenhouse gases and emissions sources that are relevant to working out the project abatement amount for a high efficiency commercial appliances project.

Greenhouse gases and emissions sourcesItem Relevant emissions

calculationEmissions source Greenhouse gas

1 Baseline emissionsProject emissions

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

Equipment units to be used in calculations

For the purposes of working out the project abatement amount for a reporting period, the project proponent must only include equipment units that are in commission before the end of the reporting period.

The proponent may choose not to include a particular equipment unit in the calculations for the period.

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The project proponent must not include an equipment unit in the calculations for the period if, at any time during the reporting period, any of the following circumstances apply:

the unit was decommissioned or removed from the premises;for a unit that was in commission at the commencement of the reporting period—the unit was out of service due to a technical malfunction within the unit for more than 10% of the period;for a unit that was commissioned during a reporting period—the unit was out of service due to a technical malfunction within the unit for more than 10% of the remainder of the period;Note An equipment unit is not out of service in circumstances, for example, where the equipment

unit is shutdown for normal maintenance, to manage load variations (for example, seasonal temperature variations and peak and trough demand variations) and other external factors (for example, power failures).

the unit was modified in a way that resulted in the unit consuming more energy to provide the same function.

Data to be used in calculations

In calculating the project abatement amount, the project proponent must, for each equipment unit included in the calculation:

record the model identifier of the unit used to identify the product in the GEMS Register; anduse values for rating and performance set for that product in the GEMS Register.Note These values will be consistent with those in the GEMS determination for the product and

Australian Standards.

—Calculating project abatement amount

Summary

The project abatement amount for a project for the reporting period is the sum of the carbon dioxide equivalent net abatement amounts during the reporting period resulting from the installation of each equipment unit.

The carbon dioxide equivalent net abatement amount of an equipment unit is the baseline emissions minus the project emissions in relation to the equipment unit multiplied by the relevant emissions factor for electricity for the unit.

Equation 1—project abatement amount (A)

The project abatement amount for a reporting period is worked out using the formula (equation 1):

A=∑i=1

n

A i

where:

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A is the project abatement amount for the reporting period in tonnes CO2-e.

n is the number of equipment units over which abatement is measured for the reporting period.

Ai is the carbon dioxide equivalent net abatement amount for the reporting period of the ith equipment unit of the high efficiency commercial appliances project, in tonnes CO2-e, calculated using:

for an equipment unit that is a liquid-chilling package or close control air conditioner—equation 2;for an equipment unit that is a refrigerated display cabinet—equation 7.

Equation 2—net abatement amount for a liquid-chilling package or close control air conditioner (Ai)

For section 17, Ai for the ith liquid-chilling package or close control air conditioner is worked out using the formula (equation 2):

Ai= ( EB ,i – EP ,i ) × E F elec ,i

where:

EB,i is, in relation to the ith equipment unit, the baseline energy consumption, in MWh, that is deemed would have occurred during the reporting period had there been no project, calculated using:

if the equipment unit is a liquid-chilling package—equation 3;if the equipment unit is a close control air conditioner—equation 5.

EP,i is the project energy consumption, in MWh, for the ith equipment unit during the reporting period, calculated using:

(a) if the unit is a liquid-chilling package—equation 4;(b) if the unit is a close control air conditioner—equation 6.

EFelec,i is:(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.

For subparagraph (b)(i) of the definition of EFelec,i, the emissions factor must be worked out:

on a sent-out basis; andusing a measurement or estimation.

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Equation 3—baseline energy consumption for a liquid-chilling package (EB,i)

For section 18, EB,i, in relation to the ith liquid-chilling package, is worked out using the formula (equation 3):

EB ,i=PCC ,i

IPL V B, i×24 × ti ×CFi ×10−3

where:

PCC,i, is the cooling capacity power, in kW, that is on the GEMS Register for the model of the ith installed liquid-chilling package.

IPLVB,i is, for the model of the ith liquid-chilling package, the baseline efficiency integrated part load value specified for such a model in column 4 of Schedule 1.

ti is the number of full days in the reporting period that the ith liquid-chilling package was in commission.

CFi is, for the model of the ith liquid-chilling package, the capacity factor specified for such a model in column 6 of Schedule 1.

Equation 4—project energy consumption for a liquid-chilling package (EP,i)

For section 18, EP,i, for the ith liquid-chilling package, is worked out using the formula (equation 4):

EP ,i=PCC,i

IPL V P , i×24 × ti ×CF i×10−3

where:

PCC,i is the cooling capacity power, in kW, that is on the GEMS Register for the model of the ith installed liquid-chilling package.

IPLVP,i is the integrated part load value that is on the GEMS Register for the model of the ith liquid-chilling package.

ti is the number of full days in the reporting period that the ith liquid-chilling package was in commission.

CFi is, for the model of the ith liquid-chilling package, the capacity factor specified for such a model in column 6 of Schedule 1.

Equation 5—baseline energy consumption for a close control air conditioner (EB,i)

For section 18, EB,i, in relation to the ith close control air conditioner, is worked out using the formula (equation 5):

EB ,i=PCC, i

EER SB ,i×24× ti ×C F i× 10−3

where:

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PCC,i is the net sensible cooling capacity power, in kW, that is on the GEMS Register for the model of the ith close control air conditioner.

EERSB,i is, for the model of the ith close control air conditioner, the baseline sensible energy efficiency ratio specified for such a model in column 3 of Schedule 2.

ti is the number of full days in the reporting period that the ith close control air conditioner was in commission.

CFi is, for the model of the ith close control air conditioner, the capacity factor specified for such a model in column 5 of Schedule 2.

Equation 6—project energy consumption for a close control air conditioner (EP,i)

For section 18, EP,i, for the ith close control air conditioner, is worked out using the formula (equation 6):

EP ,i=PCC, i

EER SP , i×24× ti ×C F i× 10−3

where:

PCC,i is the net sensible cooling capacity power, in kW, that is on the GEMS Register for the model of the ith close control air conditioner.

EERSP,i is the sensible energy efficiency ratio that is on the GEMS Register for the model of the ith close control air conditioner.

ti is the number of full days in the reporting period that the ith close control air conditioner was in commission.

CFi is, for the model of the ith close control air conditioner, the capacity factor specified for such a model in column 5 of Schedule 2.

Equation 7—net abatement amount of a refrigerated display cabinet (Ai)

For section 17, Ai for the ith refrigerated display cabinet is worked out using the formula (equation 7):

Ai= (ηB ,i× ATDA ,i−ETEC ,i ) ×t i× EFelec ,i ×10−3

where:

ηB,i is, for the model of the ith refrigerated display cabinet, the baseline efficiency specified for such a model, in kWh/day/m2, in column 4 of Schedule 3.

ATDA,i is the total display area of that cabinet, in m2, on the GEMS Register for the model of the ith refrigerated display cabinet.

ETEC,i is the daily total energy consumption of the cabinet, in kWh/day, on the GEMS Register for the model of the ith refrigerated display cabinet.

ti is the number of full days in the reporting period that the ith refrigerated display cabinet was in commission.

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EFelec,i has the same meaning as in equation 2.

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—Reporting, notification and record-keeping requirementsNote Other reporting, notification, record-keeping and monitoring requirements are set out in

regulations and rules made under the Act.

—Offsets report requirements

Operation of this Division

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

Information that must be included in an offsets report

An offsets report for a reporting period must identify each equipment unit included in a calculation undertaken in accordance with Part 4 for the reporting period in the form approved by the Regulator.

An offsets report for a reporting period must include the following information in relation to each equipment unit:

the location where each equipment unit is installed in the form approved by the Regulator;the model identifier of the equipment unit;the date when the equipment unit was installed;the date when the unit was in commission.

For an equipment unit that was included in calculations for an earlier reporting period, but is not included in calculations for this reporting period, the report must state:

the reason for the exclusion; andwhether the exclusion is expected to be temporary or permanent.

If, in the circumstances described in paragraph 6(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:

the versions of the instrument or writing used;the start and end dates of each use;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.

—Notification requirements

Operation of this Division

For paragraph 106(3)(b) of the Act, this Division sets out requirements to notify the Regulator of certain matters relating to a high efficiency commercial appliances project that is an eligible offsets project.

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Notification requirements

The project proponent must notify the Regulator of any safety or product performance issues that have been identified with an equipment unit installed or proposed to be installed in relation to the project within 30 days after the proponent becomes aware of that issue.

—Record-keeping requirements

Operation of this Division

For paragraph 106(3)(c) of the Act, this Division sets out record-keeping requirements for a high efficiency commercial appliances project that is an eligible offsets project.

Record-keeping requirements

The project proponent must keep the following records in relation to each equipment unit installed:

the location of the place where the unit is installed in the form approved by the Regulator and the location of the unit within that place;the Australian Business Number of the purchaser of the unit;the Australian and New Zealand Standard Industrial Classification code of the purchaser of the unit;the product class for the equipment on the GEMS Register;the model identifier for the unit on the GEMS Register;the brand or trade mark (if any) for the unit on the GEMS Register;the date when the unit was installed;when the unit was in commission;whether the unit has been decommissioned, replaced or maintained by any person;if the unit has been replaced—details of the equipment used to replace the unit;whether the unit has been moved to another location by any person and the location where the unit has been moved in the form approved by the Regulator;the number of days, during a reporting period, that the equipment unit was out of service due to a technical malfunction within the unit.

The project proponent must keep records in relation to each equipment unit disposed of for the purposes of section 11 that include evidence that the disposal was conducted in accordance with section 11 and any other applicable legislative requirements.

—Dividing a high efficiency commercial appliances project

Division of project for reporting purposes

For subsection 77A(2) of the Act, the project may be divided into parts, each of which would qualify as a high efficiency commercial appliances project.

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—Liquid-chilling package default factors

Default factor for a liquid-chilling package model that appears in the GEMS RegisterItem Condenser type Cooling capacity

(kW)Default factors

Baseline efficiency integrated part load value

High efficiency threshold

Capacity factor

1 Air cooled 350 to 499 4.7 5.1 0.171

2 Air cooled 500 to 699 4.8 5.2 0.171

3 Air cooled 700 to 999 4.7 5.1 0.171

4 Air cooled 1000 to 1499 4.6 5.0 0.171

5 Air cooled ≥ 1500 4.6 5.0 0.171

6 Water cooled 350 to 499 7.5 8.2 0.171

7 Water cooled 500 to 699 9.1 10.0 0.171

8 Water cooled 700 to 999 9.3 10.2 0.171

9 Water cooled 1000 to 1499 9.3 10.2 0.171

10 Water cooled ≥1500 9.8 10.7 0.171

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—Close control air conditioner default factors

Default factor for a close control air conditioner model that appears in the GEMS RegisterItem Net sensible

cooling capacity (kW)

Default factors

Baseline sensible energy efficiency ratio

High efficiency threshold

Capacity factor

1 Less than 19.05 kW

3.3 3.6 0.65

2 From 19.05 kW to less than 39.5 kW

3.2 3.5 0.65

3 From 39.5 kW to less than 70.0 kW

3.3 3.6 0.65

4 Greater than or equal to 70.0 kW

3.3 3.6 0.65

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—Refrigerated display cabinet default factors

Default factor for a refrigerated display cabinet that appears in the GEMS RegisterItem Cabinet type M-package

temperature classDefault factor:Baseline efficiency (kWh/day/m2)

1 RS 1—Unlit shelves All 8.372 RS 1—Lit shelves All 10.663 RS 2—Unlit shelves All 8.494 RS 2—Lit shelves All 11.325 RS 3—Unlit shelves All 10.326 RS 3—Lit shelves All 12.267 RS 4—Glass door All 5.798 RS 6—Gravity coil All 7.629 RS 6—Fan coil All 7.2110 RS 7—Fan coil All 8.2911 RS 8—Gravity coil All 8.5212 RS 8—Fan coil All 6.5013 RS 9—Fan coil All 6.3014 RS 10—Low All 9.7515 RS 11 All 26.5216 RS 12 All 46.1417 RS 13—Solid sided All 12.9918 RS 13—Glass sided All 12.2019 RS14—Solid sided All 11.4520 RS 14—Glass sided All 12.7421 RS 15—Glass door All 19.8322 RS 16—Glass door All 20.2123 RS 18 All 29.9224 RS 19 All 29.5725 HC1 M1 7.5326 HC1 M2 8.5027 HC2 M2 8.9128 HC3 M1 25.5529 HC4 M1 10.8730 HC4 M2 11.4031 HC6 M2 28.3532 VC1 M1 19.9233 VC1 M2 15.2034 VC2 M1 17.6935 VC2 M2 14.6636 VC4 (solid door) M1 7.2737 VC4 (solid door) M2 7.3038 VC4 (glass door) M1 8.8839 VC4 (glass door) M2 9.9340 HF4 L1 19.50

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Default factor for a refrigerated display cabinet that appears in the GEMS RegisterItem Cabinet type M-package

temperature classDefault factor:Baseline efficiency (kWh/day/m2)

41 HF4 L2 19.5042 HF6 L1 5.9043 HF6 L2 5.4644 VF4 (solid door) L1 5.2545 VF4 (solid door) L2 28.7046 VF4 (glass door) L1 24.0447 VF4 (glass door) L2 28.70

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