Carbon Credits (Carbon Farming … · Web viewIn calculating the energy consumption of a function or group of functions listed in Table 1 of Schedule 2, the project proponent need

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Carbon Credits (Carbon Farming Initiative—Community Buildings) Methodology Determination 2016

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

Dated

Greg HuntMinister for the Environment

ContentsPart 1 —Preliminary 4

1 Name 42 Commencement 43 Authority 44 Duration 45 Definitions 46 References to factors and parameters from external sources 67 Assessing level at which a function was performed during a period 6

Part 2 —Community building projects 88 Community building projects 8

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Part 3 —Project requirements 10Division 1 —Operation of this Part 10

9 Operation of this Part 10

Division 2 —General requirements 1010 Information to be included in application for declaration 1011 Requirements for lighting upgrades 1012 Disposal of equipment 12

Division 3 —Making choices for the project 1213 The baseline period 1214 Excluded functions for a site 12

Part 4 —Net abatement amount 14Division 1 —Preliminary 14

15 Operation of this Part 1416 Overview of gases accounted for in abatement calculations 14

Division 2 —Sites, data and attributions to be used in calculations 1417 When a site may be included in calculations 1418 Data sources 1519 Using supplier data to determine energy consumption for the baseline period or a

measurement period 1620 Assessment of energy consumption of a function 1821 Use of grid data for energy returned to the grid 1822 Dealing with excluded functions—baseline emissions 1823 Dealing with excluded functions—project emissions 18

Division 3 —Method for calculating net abatement amount 1824 Summary 1825 Net abatement amount for the project (A) 1926 Abatement for a site of the project in a measurement period (Am,n) 19

Division 4 —Calculations relating to baseline emissions 2027 Summary 2028 Baseline emissions of a site in a measurement period (EB,m) 20

Division 5 —Calculations relating to project emissions 2229 Summary 2230 Project emissions of a site for a measurement period (EP,m) 22

Part 5 —Reporting, notification record-keeping and monitoring requirements 25Division 1 —Offsets report requirements 25

31 Operation of this Division 2532 Information that must be included in an offsets report 25

Division 2 —Notification requirements 2633 Operation of this Division 2634 Notification requirements 26

Division 3 —Record-keeping requirements 2635 Operation of this Division 2636 Record-keeping requirements 27

Division 4 —Monitoring requirements 2737 Operation of this Division 2738 Requirement to monitor subsidised renewable electricity at a site 27

2Carbon Credits (Carbon Farming Initiative—Community Buildings)

Methodology Determination 2016

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Part 6 —Dividing a community building project 2839 Operation of this Part 2840 Requirements for division of project 28

Schedule 1 —Eligibility requirements for a site 29Schedule 2 —Functions that may be specified as excluded 32

1 Interpretation 322 Table 1: functions that may be specified as excluded for each type of site 323 Table 2: measures for functions listed in Table 1 33

Schedule 3 —Information about sites 34Schedule 4 —Production levels 35



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—Preliminary

Name

This is the Carbon Credits (Carbon Farming Initiative—Community Buildings) Methodology Determination 2016.

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:(a) begins when this determination commences; and(b) ends 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.

baseline period, in relation to a site in a project—see section .Note: The energy use during the baseline period is used to set the baseline emissions for abatement

calculations.

community building project—see subsection .

computing centre, for a site—see .

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

eligible community building project means a community building project that has been declared an eligible offsets project under section 27 of the Act.

energy-consuming equipment, in relation to a site, means equipment that consumes energy that is taken into account in the total amount of energy consumption at the site.

excluded function, in relation to a site in a project means an excluded function specified under section .

GreenPower means renewable energy purchased by an energy provider on behalf of an energy consumer under the program known as the GreenPower program.



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installed: the time at which a solar water heater is taken to have been installed is to be determined in accordance with regulation 19 of the Renewable Energy (Electricity) Regulations 2001.Note: Regulation 19 specifies, for the purposes of section 21(3) of the Renewable Energy (Electricity) Act

2000, the time at which a solar water heater is taken to have been installed for that Act.

measurement period:(a) the first measurement period for an eligible community building project is the period

of 12 months that begins at the start of the crediting period; and(b) each subsequent 12 month period within the crediting period is also a measurement

period. Note: There will be 7 measurement periods for the project during the crediting period.

The start of the crediting period may be selected by the project proponent under subsection 69(4) of the Act. The default start is the time the declaration of eligibility takes effect.

For abatement to be claimed in respect of a measurement period, it must be entirely within a reporting period (see section ). For most practical purposes, therefore, reporting periods for the project will need to each consist of 1or 2 whole years (see paragraphs 76(1)(b) and (e) and 76(2)(b) and (e) of the Act).

For a particular site, the baseline period for the site must be completed by the start of the first measurement period in which the site is included in the abatement calculations (the start date for the site)—see section .

monitoring requirements means the requirements set out in of .

natural gas has the same meaning as in National Greenhouse and Energy Reporting Act 2007.

net abatement amount, for an eligible community building 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 ).

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

NGER (Measurement) Determination means the National Greenhouse and Energy Reporting (Measurement) Determination 2008, as in force from time to time.

non-metered fuel means a fuel other than reticulated gas.

project activity, in relation to a site—see subsection .

public facility—see subsection .

reticulated gas, in relation to a site, means natural gas that is supplied by pipes, and metered by the supplier.

section 22 application, in relation to an eligible community building project, means the application in relation to the project under section 22 of the Act.

site—see subsection .

site details—see paragraph .

small-scale technology certificate has the same meaning as in the Renewable Energy (Electricity) Act 2000.



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solar water heater has the same meaning as in the Renewable Energy (Electricity) Act 2000.

start date, for a site, means the start of the first measurement period in which the site is included in the abatement calculations.

subsidised renewable electricity for a site during a period, means electricity used by the site (other than electricity used solely for an excluded function) that was generated at the site from renewable sources, using equipment that:

(a) was installed at the site after the start of the baseline period; and(b) 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.Note: That subparagraph relates to the government program requirement, one of the additionality

requirements under the Act. The rules identify energy production that receives a subsidy under another government program.

subsidised solar water heater: a solar water heater is a subsidised solar water heater if:(a) the solar water heater is installed at a site after the start of the baseline period; (b) under the Renewable Energy (Electricity) Act 2000, small-scale technology

certificates may be created for the installation of the solar water heater; (c) under the legislative rules (if any) made for subparagraph 27(4A)(c)(ii) of the Act,

the installation of the solar water heater must not be included in an eligible offsets project; and

(d) the solar water heater is not used solely for an excluded function.Note: That subparagraph relates to the government program requirement, one of the additionality

requirements under the Act. The rules identify installation of water heaters that receive a subsidy under another government program.

type of a site—see subsection .

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 does not apply if the determination specifies otherwise.

Assessing level at which a function was performed during a period

This section applies in relation to functions listed in Table 1 of .

When a function is performed at a material level

A function is taken to have be performed at a material level at a site during a period if the performance of the function has an effect on the emissions for the site for that period that is more than minor or trivial. Note: A function not performed at a material level is taken to have zero energy consumption—see

subsection .

Whether a function is performed at a material level at a site during the baseline period is also relevant in determining whether the site may be included in calculating emissions for the measurement period—see paragraph .



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See also paragraph (Record-keeping requirements).

Comparing the levels at which a function is performed during the baseline period and a measurement period

To compare the levels at which a function was performed at a site during a measurement period and the baseline measurement period for the purposes of paragraph , the level must be assessed using the measure for the function listed in Table 2 of .

If the level during the measurement period is at least 90% of the level during the baseline period, it is taken to be no less than the level during the baseline period.

If the level during a measurement period is less than 90% of the level during the baseline period, but the effect of the difference on abatement for the site is minor or trivial, the level during the measurement period is also taken to be no less than the level during the baseline period.



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—Community building projects

Community building projects

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

it involves project activities being undertaken at one or more sites;each project activity could reasonably be expected to result in eligible carbon abatement;at each site, the project activities could together be reasonably expected to result in a reduction of at least 10 per cent of the baseline emissions for the site.

A facility or institution, or a geographically separated part of a facility or institution, is a site if:

it is of one of the following types (the type of the site):a public facility;a private gallery or museum;a school;a hospital;an aged care facility;the common area in a residential apartment complex;a serviced apartment complex; and

any of its buildings, parts of buildings or other areas that are used for functions that are not related to or ancillary to the primary purpose of its type have only a minor or trivial effect on its total emissions.

Note: To be included in abatement calculations, a site of a particular type will have to satisfy the requirements for that type set out in Schedule 1.

A public facility is a facility or institution that:is operated for civic, cultural, social or sporting purposes; andis operated by or on behalf of, or by or on behalf of an agency of, the Commonwealth, a State or Territory government or a local government; andconsists of buildings that were designed or have been adapted for those purposes, together with buildings for related or ancillary functions, including administration or storage.

Examples: Court; library; theatre; museum; public archive; public hall; community centre; information centre; sports facility.

Each of the following is a project activity if it is undertaken at a site for the purposes of the project:

modifying, installing, removing or replacing:energy-consuming equipment; orequipment that generates electricity for consumption at the site; ora building component or other equipment not mentioned in subparagraph (i) or (ii);

changing how energy-consuming equipment is controlled or operated;



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changing the energy sources used by energy-consuming equipment;promoting behaviours by occupants of the site that affect energy consumption by energy-consuming equipment at the site.

A project covered by subsection (1) is a community building project.



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—Project requirements

—Operation of this Part

Operation of this Part

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

—General requirements

Information to be included in application for declaration

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

if there are, or will be, sites of the project that are identified at the time of making the application, the following information for each identified site (the site details):

the address, in the form approved by the Regulator; the type of site;a brief description of the buildings and parts of buildings that constitute the site, including the uses to which each is put (eg display areas, auditorium, administration areas, retail shop, computing centre);a detailed description of the project activities that are proposed to be performed at the site; for a project activity that includes modifying, installing, removing or replacing equipment (whether or not energy-consuming equipment) or other building components—a detailed description of the types of equipment or building components involved; and

if there will be sites of the project that are not identified at the time of making the application:

the types of sites; andfor each type of site, a detailed description of any project activity that is proposed to be performed at 1 or more sites of that type; andfor a project activity that includes modifying, installing, removing or replacing equipment (whether or not energy-consuming equipment) or other building components—a detailed description of the types of equipment or building components involved.

Note: For the relevant types of sites that may be included in an eligible offsets project (subparagraphs and ), see the definition of site in subsection .

Requirements for lighting upgrades

This section applies in relation to a project activity that includes modifying, replacing or removing lights or luminaires in the lighting system that services a particular area, where the effect of the change on the abatement for the site is not minor or trivial.

If the project proponent requires agreement from a third party to modify the lighting system, the proponent must not proceed unless it has:



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provided the third party with:a report about the lighting levels and quality of the lighting system after the proposed upgrade that satisfies subsection (3); and in that report or another document—a comparison of the lighting levels and quality against the relevant standards set out in:

for public lighting—AS/NZS 1158; andfor other lighting—AS/NZS 1680; and

received notice in writing that the third party accepts the proposed lighting levels and quality.

A report satisfies this subsection if it is:a lighting level and quality modelling report that:

for public lighting—is based on modelling conducted in accordance with AS 1158 and signed off by a qualified person; andfor lighting other than public lighting—is based on modelling conducted using modelling software AGi32, DIALux, RELUX or equivalent commercial lighting planning program that uses IES files for photometric data, and signed off by a qualified person; or

Note: IES is a data file format that uses the standard file format for photometric data developed by the Illuminating Engineering Society.

a report of estimated lighting levels and quality of the project lighting system prepared by:

a Registered Lighting Practitioner of the Illuminating Engineering Society of Australia and New Zealand; ora Certified Lighting Designer of the International Association of Lighting Designers.

An activity mentioned in subsection in relation to a lighting system must be undertaken or supervised:

if the activity is covered by laws or regulatory arrangements of a State or Territory that require a suitably qualified or authorised person to undertake or supervise it (eg a lineworker)—in accordance with the requirement; andotherwise—by a licensed electrician.

The person mentioned in paragraph or , or his or her supervisor, must provide a signed statement that the activity was conducted in accordance with subsection .

In this section:

AGi32 means the lighting planning program of that name developed by Lighting Analysts Inc., USA, or updated versions of the program.

DIALux means the lighting planning program of that name developed by DIAL GmbH, Germany, or updated versions of the program.

qualified person means a lighting practitioner who is:(a) a Member, Fellow or Registered Lighting Practitioner of the Illuminating

Engineering Society of Australia and New Zealand; or(b) a Professional Member, Fellow or Certified Lighting Designer of the International

Association of Lighting Designers.



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RELUX means the lighting planning program of that name developed by Relux Informatik AG, Switzerland, or updated versions of the program.

Disposal of equipment

This section applies to:energy-consuming equipment; orequipment that generates electricity for consumption at a site;

that is removed or replaced as part of a project activity.

The equipment must be disposed of, and must not be refurbished or re-used.

Subsection does not prevent the equipment from being broken down into components and those components being recycled, other than for use in a lighting system.Note: The project proponent may comply with this section by, for example, rendering the equipment not

usable or refurbishable before disposing of it.

—Making choices for the project

The baseline period

When submitting the first offsets report that relates to a site of the project, the project proponent must specify a period to be the baseline period for the site.Note: The abatement of a site during a measurement period is calculated by comparing emissions during

the measurement period with emissions during the baseline period.

The first offsets report for the project that reports on the site must report the baseline period.

The baseline period for a site must be 12 months.

The baseline period must have ended:not earlier than 18 months before the start date for the site; andnot earlier than 18 months after the most recent certificate of occupancy for a building that is part of the site; andnot later that the start date for the site.

Excluded functions for a siteNote: A choice under this section will enable electricity or fuel consumption attributed to certain functions to be excluded

from the abatement calculations for a particular site. These are either non-core functions, or core functions that may sometimes be outsourced. Matters that the project proponent will need to take into account in deciding whether to make the choice include the following (see subsection and section ):

(a) whether electricity and gas supplies for the function are separately metered for any period in which the function is provided, including the baseline period;

(b) whether the separate metering during the baseline period covers the whole of that function; and(c) whether the separate metering during each measurement period covers anything beyond the function.

For the non-core functions, the choice must be made by the first offsets report, and applies for the whole of the crediting period. For an outsourceable core function, the choice can be made for each measurement period.

Excluding non-core functions for the crediting period

When submitting the first offsets report that relates to a site of the project, the project proponent may specify a non-core function listed in Table 1 of , or a combination of such



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functions (the relevant function), as an excluded function for the site for the whole of the crediting period.

Excluding outsourceable core functions for a measurement period

When submitting an offsets report that relates to a site of the project, the project proponent may specify an outsourceable core function listed in Table 1 of , or a combination of such functions (the relevant function), as an excluded function for the site for one or more measurement periods during the reporting period.



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—Net abatement amount

—Preliminary


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 community building project that is an eligible offsets project.Note: This is called the net abatement amount in this determination (see section ).

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 net abatement amount for a community building 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)

2 Baseline emissionsProject emissions

Fossil fuel combustion Carbon dioxide (CO2)Methane (CH4)Nitrous oxide (N2O)

—Sites, data and attributions to be used in calculations

When a site may be included in calculations

A site of the project may be included in the abatement calculations for a measurement period in the reporting period only if the following apply:

the relevant site details (including details of all project activities undertaken in the measurement period) were given to the Regulator either in the section 22 application or in accordance with section ;the site remained of the same type from the beginning of the baseline period to the end of the measurement period;in relation to the baseline period—it complied with requirements for that type of site set out in for the baseline period;in relation to the measurement period—it complied with the requirements for that type of site set out in for a measurement period;the energy consumption of site during the baseline period and the measurement period is capable of being assessed in accordance with the method in this Part;



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from the beginning of the baseline period to the end of the measurement period, the project proponent did not undertake any activity (whether or not a project activity) at the site that;

under legislative rules made for subparagraph 27(4A)(c)(ii) of the Act, must not be included in an eligible offsets project; andcould reasonably be expected to have an effect, that is not minor or trivial, on the abatement that would be calculated for the site in the measurement period;

if a function listed in was performed at a site at a material level during the baseline period—either:

the function was also performed at the site during the measurement period at a level that is either the same as or greater than the level at which it was performed during the baseline period; or the function was an excluded function, or was one of a combination of functions that was an excluded function, for the site during the measurement period.

Notes: Changes to the buildings or the site, or to the use of buildings, may need to be reported under section . If the changes mean that the site no longer complies with Schedule 1, paragraphs (c) and (d) mean that the site will no longer be able to be included in the abatement calculations.

See section for provisions on assessing the level at which a function was performed.

See sections and for provisions on dealing with excluded functions.

Paragraph will require appropriate metering of electricity and gas used by the site as a whole, and by any functions that the project proponent intends to exclude under section , and appropriate arrangements for recording the use of non-metered fuels. See in particular of .

To avoid doubt, the project proponent may choose not to include a site in the abatement calculations for the measurement period even if it satisfies subsection .

Data sources

Data that may be used

When data about energy consumption at a site is to be used to work out the net abatement amount, the project proponent for the project may use only the following data:

for subsidised renewable electricity—data produced by monitoring in accordance with section ; anddata from a supplier of electricity that relates to renewable energy generated by the site and exported to the electricity grid, including data given in bills or invoices;

for other electricity and reticulated gas—data from the supplier, including data given in bills or invoices; anddata from electricity meters (including sub-meters not controlled by the supplier) used in accordance with the relevant requirements of the National Measurement Institute for electricity metering, set out in the document titled NMI M 6 Electricity Meters as in force from time to time; anddata from gas meters (including sub-meters not controlled by the supplier) used in accordance with the relevant requirements of the National Measurement Institute for gas metering, set out in the document titled NMI R 137 Gas meters as in force from time to time;

for a non-metered fuel—data from the supplier, including data given in bills or invoices; and



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data about the amount of the non-metered fuel that is stockpiled at the site, measured in accordance with industry practice; anddata from direct measurement of the consumption of the non-metered fuel, taken at the point of consumption, in accordance with industry practice.

Attribution of energy consumption to site or function

Where a quantity of energy is documented by data in accordance with subsection , the project proponent:

may not attribute parts of the quantity to different functions or groups of functions; andmay not attribute part of the quantity to the site and part to other uses.

Examples: If a site occupies only part of a building, the project proponent will need to be able to document the electricity used by the site in accordance with subsection , for example by:

(a) using data from sub-meters that cover the part of the building used by the site; or

(b) using billing data from the supplier of electricity to the whole building, together with data from submeters that cover the part of the building not used by the site.

If the project proponent wishes to exclude a function, such as meal preparation, the function will need to be separately metered.

Attribution of energy consumption to different periods

Where a quantity of energy is documented by data in accordance with subsection , the project proponent may not attribute parts of the quantity to different periods except in accordance with section .

Using supplier data to determine energy consumption for the baseline period or a measurement period

This section applies where a project proponent uses data from a supplier to work out energy consumption by a site during a period (the calculation period) that is:

the baseline period for the site; ora measurement period for the site.

Note 1: The effect of subsection (1) is that this section applies when data from a supplier is used to work out:

(a) the amount represented by QF,B,i and QEN,B for equation 3.1 (subsection ) or equation 3.2 (subsection ); and

(b) the amount represented by QF,P,m,i, QEN,P,m and QER,m for equation 4 (subsection ).

Note 2: For subsidised renewable electricity, consumption for the calculation period can also be worked out using monitoring in accordance with section : see paragraph .

For other electricity and reticulated gas, consumption for the calculation period can also be worked out using metering data: see paragraph .

For a non-metered fuel, consumption for the calculation period can also be worked out using direct measurement of consumption: see paragraph .

The consumption of electricity or reticulated gas for a calculation period is to be worked out by adding together the following amounts:

the total amount of electricity or reticulated gas shown on each bill or invoice where the period covered by the bill or invoice occurs entirely within the calculation period;



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the relevant amount of electricity or reticulated gas, calculated in accordance with subsection , for each supplier bill or invoice where only part of the period covered by the bill or invoice occurs within the calculation period.

Subject to subsection , the consumption of a non-metered fuel for a calculation period may be worked out by:

adding together the following amounts:the total amount of the non-metered fuel in each supply for which the supply period occurs entirely within the calculation period;the relevant amount of non-metered fuel, calculated in accordance with subsection , for each supply of the non-metered fuel for which only part of the supply period occurs within the calculation period; or

calculating the total amount of the non-metered fuel in each supply for which the supply period occurs entirely within the calculation period, and adjusting that amount to take account of the difference between the following amounts, measured in accordance with industry practice:

the amount of that non-metered fuel that is stockpiled at the site at the beginning of the calculation period; the amount of that non-metered fuel that is stockpiled at the site at the end of the calculation period.

Consumption of a non-metered fuel for a calculation period may only be worked out under paragraph if:

the calculation period is a measurement period; orboth:

the calculation period is the baseline period; andthe emissions associated with the consumption of the non-metered fuel at the site during the baseline period, worked out in accordance with paragraph , are no more than 5% of the total emissions for the site for that period.

Note: To calculate the consumption for the baseline period of a non-metered fuel that does not meet this requirement, the project proponent will need to either adopt the adjustment method based on the stockpile of the non-metered fuel (see paragraph ) or use direct measurement of consumption (see paragraph ).

For a supplier bill or invoice for electricity or reticulated gas where only part of the period covered by the bill or invoice (the billing period) falls within a particular calculation period, the relevant amount of electricity or natural gas for the bill or invoice is determined by applying the consumption for the whole of that billing period pro-rata to the part within that calculation period.

For a supply of non-metered fuel where only part of the supply period falls within a particular calculation period, the relevant amount of non-metered fuel for the supply is determined by applying the total amount of non-metered fuel in the supply pro-rata to the part of the supply period within that calculation period.

In this section, the supply period for a supply of non-metered fuel is the period beginning immediately before the supply and ending immediately before the next supply or (if earlier) the end of the crediting period.



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Assessment of energy consumption of a function

Energy consumption when a function is not performed at a material level

If a function or group of functions listed in Table 1 of is not performed at the site at a material level during a period, the energy consumption is taken to be zero.

Energy used for general building services need not be attributed to excluded function

In calculating the energy consumption of a function or group of functions listed in Table 1 of , the project proponent need not include any electricity, gas and other fuel used for general building services that are provided centrally to the entire site, such as lighting, heating or cooling.

Use of grid data for energy returned to the grid

For subsidised renewable electricity, if the data to be used in relation to a particular period is not entirely data produced by monitoring in accordance with section , the amount of subsidised renewable electricity consumed by the site during the period must be calculated as the difference between:

the total amount of renewable electricity generated by the relevant equipment during the period; andthe amount of that electricity that was exported to the electricity grid during the period.

Dealing with excluded functions—baseline emissions

In calculating the baseline emissions of the site for a measurement period, the project proponent must not include electricity and fuel consumption attributed to a function, or a combination of functions, that is an excluded function for the measurement period.Note: Services such as lighting or heating that are used by the function, but are provided as part of the

general building services for the site and not separately metered, are not attributed to the function—see subsection and section .

Dealing with excluded functions—project emissions

In calculating the project emissions of a site in a measurement period, the project proponent may choose to not include electricity or fuel consumption attributed to a function, or a combination of functions, that is an excluded function for the measurement period.

—Method for calculating net abatement amount

Summary

The net abatement amount for a project for a reporting period is the sum of the abatements for sites of the project for each complete measurement period during the reporting period.

Abatement for a single site of the project for a measurement period is:



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(a) if certain conditions are met for achieving a minimum abatement amount for the site, and the difference between baseline emissions and project emissions of the site is equal to or greater than zero—the amount of that difference; and

(b) otherwise—zero.

Net abatement amount for the project (A)

The net abatement amount (A) for an eligible community building project for a reporting period, in tonnes CO2-e, is worked out using the following equation (equation 1):

A=∑m∑

nAm. n

where:

Am,n means the abatement for site n of the project during measurement period m, where the measurement period is entirely within the reporting period, in tonnes CO2-e, calculated using section .

Abatement for a site of the project in a measurement period (Am,n)

For equation 1 (section ), the abatement amount (Am,n) for site n of the project in measurement period m, in tonnes CO2-e, is:

if the minimum abatement condition is satisfied for the site in measurement period m—the amount worked out using the following equation (equation 2):

Am,n ¿ Max {EB ,m, n−EP ,m, n ,0 }

where:EB,m,n is the baseline emissions of a site for measurement period m (EB,m) for site n, in tonnes CO2-e, which is worked out using equation 3.1 (subsection ) or equation 3.2 (subsection ).EP,m,n is the project emissions of a site for measurement period m (EP,m) for site n, in tonnes CO2-e, which is worked out using equation 4 (section ).otherwise—zero.

The minimum abatement condition is satisfied for a site in measurement period m if, for a measurement period k that is:

measurement period m; ora measurement period before measurement period m; orif measurement period m+1 is in the same reporting period as measurement period m—measurement period m+1;

the following is true:

EB ,k−EP ,k ≥0.1 × EB, k

where:EB,k is the baseline emissions of the site for measurement period k, in tonnes CO2-e, and is worked out using either equation 3.1 (subsection ) or equation 3.2



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(subsection ), depending on the site, as the relevant equation applies to that measurement period.EP,k is the project emissions of the site for measurement period k, in tonnes CO2-e, and is worked out using equation 4 (section ) as it applies to that measurement period.

—Calculations relating to baseline emissions

Summary

Baseline emissions of a site for a measurement period are the emissions that would have been attributable to the site for the measurement period had the project not occurred.

Baseline emissions for a site are worked out using data about electricity and fuel consumption by the site during the baseline period, derived from billing, invoices, and metering data, and are adjusted downward by 1.5% for each measurement period that abatement is calculated for the site.

For sites other than hospitals and schools, the baseline emissions are further adjusted based on the ratio of the production level of the site for the baseline period to the production level of the site for the measurement period.

Baseline emissions of a site in a measurement period (EB,m)

For section , EB,m is worked out using the equation (equation 3.1) in subsection or the equation (equation 3.2) in subsection .

For a project site that is:a hospital; ora school;

EB,m is worked out using the following equation (equation 3.1):

EB ,m={∑i∑

j(QF, B,i ×

EFi , j

1000 )+QEN , B ×EFE

1000 }× (1−0.015 × ( M−L+1 ) )

where:

i means a type of fuel consumed by the site in the baseline period.

j means a type of greenhouse gas emitted at the site in the baseline period due to fuel combustion.

QF,B,i means the relevant amount for measurement period m, and taking into account any excluded functions for that measurement period, of fuel type i consumed by the site during the baseline period, converted to gigajoules.Note: The amount represented by QF,B,i may vary as between measurement periods. The effect of section

is that, for measurement period m, QF,B,i will not include:

(a) consumption of fuel type i attributed to a non-core function that is an excluded function for the site for the whole of the crediting period; and



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(b) consumption of fuel type i attributed to a core function that is an excluded function for measurement period m.

EFi,j means the emissions factor for fuel type i and greenhouse gas type j, in kilograms CO2-e per gigajoule, specified for the fuel type or greenhouse gas type in Schedule 1 to the NGER (Measurement) Determination.

QEN,B means the relevant amount for measurement period m, and taking into account any excluded functions for that measurement period, of electricity, including GreenPower, consumed by the site during the baseline period, in kilowatt hours.Note: The amount represented by QEN,B may vary as between measurement periods. The effect of section

is that, for measurement period m, QEN,B will not include:

(a) electricity consumption attributed to a non-core function that is an excluded function for the site for the whole of the crediting period; and

(b) electricity consumption attributed to a core function that is an excluded function for measurement period m.

EFE means:(a) for electricity obtained from an electricity grid that is a grid for 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.

M means the number of the measurement period m (from 1 to 7).

L means the number of the measurement period (from 1 to 7) that was the first to commence after the end of the baseline period for the site.

For any other site, EB,m is worked out using the following equation (equation 3.2):

EB ,m={∑i∑

j(QF , B ,i ×

EFi , j

1000 )+QEN , B ×EFE

1000 }× (1−0.015 × ( M−L+1 ) ) ×PLm

PLB

where:

i, j, QF,B,i, EFi,j, QEN,B, EFE, M and L have the same meaning as in equation 3.1.

PLm means the production level of the site for measurement period m, determined in accordance with .

PLB means the production level of the site for the baseline period, determined in accordance with .

For equations 3.1 and 3.2:



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if the unit of measurement for fuel type i needs to be converted, the energy content factor for the fuel type specified in Schedule 1 to the NGER (Measurement) Determination must be used; andfor subparagraph (b)(i) of the definition of EFE, the emissions factor must be worked out:

on a sent-out basis; andusing a measurement or estimation approach that is consistent with the NGER (Measurement) Determination.

—Calculations relating to project emissions

Summary

Project emissions of a site for a measurement period are worked out using data about electricity and fuel consumption at the site during the measurement period, derived from billing data (for electricity and reticulated gas) and invoices (for other fuel sources), and multiplying it by the relevant emissions factor. The amount is adjusted for subsidised renewable electricity consumed at the site, and for electricity displaced by solar water heaters at the site, during the measurement period.

Project emissions of a site for a measurement period (EP,m)

For section , EP,m is worked out using the following equation (equation 4):

EP ,m=∑i∑

j(QF , P,m , i×

EFi , j

1000 )+(QEN , P , m+QER , m+QED ,m ) ×EFE

1000

where:

i means a type of fuel consumed by the site during measurement period m.

j means a type of greenhouse gas emitted at the site during measurement period m due to fuel combustion.

QF,P,m,i means the amount of fuel type i consumed by the site during measurement period m, converted to gigajoules.Note: The effect of section 23 is that the following may be omitted from QF,P,m,i:

(a) consumption of fuel type i attributed to a non-core function that is an excluded function for the site for the whole of the crediting period

(b) consumption of fuel type i attributed to a core function that is an excluded function for measurement period m.

EFi,j means the emissions factor for fuel type i and greenhouse gas type j, in kilograms CO2-e per gigajoule, specified for the fuel type or greenhouse gas type in Schedule 1 to the NGER (Measurement) Determination.

QEN,P,m means the amount of electricity, including GreenPower, consumed by the site during measurement period m, in kilowatt hours.Note: The effect of section 23 is that the following may be omitted from QEN,P,m:



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(a) electricity consumption attributed to a non-core function that is an excluded function for the site for the whole of the crediting period; and

(b) electricity consumption attributed to a core function that is an excluded function for measurement period m.

QER,m means subsidised renewable electricity consumed by the site during measurement period m, in kilowatt hours.

QED,m means electricity displaced by using subsidised solar water heaters at the site during measurement period m, in kilowatt hours, worked out using equation 5 (subsection (3)).

EFE means:(a) for electricity obtained from an electricity grid that is a grid for 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 equation 4:if the unit of measurement for fuel type i needs to be converted, the energy content factor for the fuel type specified in Schedule 1 to the NGER (Measurement) Determination must be used; andfor subparagraph (b)(i) of the definition of EFE, the emissions factor must be worked out:

on a sent-out basis; andusing a measurement or estimation approach that is consistent with the NGER (Measurement) Determination.

Electricity displaced by using subsidised solar water heaters at the site

For subsection (1), QED,m is worked out using the following equation (equation 5):

QED,m=∑w

QED ,m, w

where:

QED,m,w means the electricity displaced at the site during measurement period m by using subsidised solar water heater w, in kilowatt hours, worked out using equation 6 (subsection (4)).

For subsection (3), QED,m,w is worked out using the following equation (equation 6):

QED,m, w=STC w× 1000

Y ED ,w

where:



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STCw means the value (in megawatt hours) represented by the number of small-scale technology certificates that could be created for the installation of subsidised solar water heater w under the Renewable Energy (Electricity) Act 2000.Note 1: Each small-scale technology certificate represents 1 megawatt hour.

Note 2: The Renewable Energy (Electricity) Act 2000 provides that the number of certificates that may be created for a particular installation of a solar water heater is to be determined in accordance with the regulations made under that Act: see section 22 of that Act, and the Renewable Energy (Electricity) Regulations 2001.

Note 3: A solar water heater may be a subsidised solar water heater even if no certificates are, or will be, created under the Renewable Energy (Electricity) Act 2000 for the installation of the heater, if the solar water heater receives a subsidy under another government program.

YED,w means the number of years specified in regulation 19BE of the Renewable Energy (Electricity) Regulations 2001 for a solar water heater installed at the time that subsidised solar water heater w is installed.Note: Regulations 19B and 19BA provide for the Regulator to determine the method to be used to

determine the number of certificates that may be created for a particular model of solar water heater, by reference to a number of years specified for that solar water heater. Regulation 19BE specifies the number of years for the solar water heater, depending on when it is installed. Accordingly, for each subsidised solar water heater w, YED,w will depend on when the solar water heater is installed.



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—Reporting, notification record-keeping and monitoring requirements

Note: General reporting, notification, record-keeping and monitoring requirements are set out in the Act and the Rule. This Part includes supplementary reporting, notification and record-keeping requirements specific to this determination. There are no supplementary notification requirements specific to this determination.

—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 community building project that is an eligible offsets project.

Information that must be included in an offsets report

Each offsets report about the project must include the following for each included site in the reporting period;

the address of the site, in the form approved by the Regulator;the type of the site and a reference that identifies when the site details were given to the Regulator (in the section 22 application or in accordance with subsections and ); the baseline period for the site;(where relevant) the production level in the baseline periodany excluded non-core function specified for the crediting period under section ;any excluded core function specified for a measurement period within the reporting period under section ;any information in relation to each function listed in (both outsourceable core functions and non-core functions) required by a form approved by the Regulator;Note: For example, this information may include whether the function was provided on site, and

whether it was separately metered, during the baseline period and the measurement periods covered by the offsets report.

a description of the project activities that:were undertaken at the site during the reporting period; andhad an effect, which is not minor or trivial, on the abatement for the site in at least one measurement period in the reporting period;

(where relevant) the production level for the site for the measurement period, or each of the measurement periods, in the reporting period.

The offsets report must also include, for each site that is not an included site in the reporting period, but was an included site in an earlier reporting period:

the address of the site, in the form approved by the Regulator; andthe reasons why the site is not an included site in the reporting period.

In this section:

included site, in relation to a project and a reporting period, means a site that is included in calculations for the net abatement amount for the project for the reporting period.



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—Notification requirements


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

Notification requirements

Details of sites and project activities

If the project proponent proposes to include in abatement calculations for a project a site that was not identified in the section 22 application, the proponent must give the Regulator the site details at least 14 days before undertaking any project activity at the site.

If a change is made, or is proposed to be made, to a site or to the use of its buildings, with the result that the current site details will no longer be accurate, the project proponent must give the Regulator the changed site details:

if the changes are planned—at least 14 days before the changes are made; andif the changes are unplanned (eg where they are made because of damage to a building)—as soon as practicable.

If a change is proposed to be made to the project activities at a site, with the result that the current site details will no longer be accurate, the project proponent must give the Regulator the changed site details at least 14 days before undertaking any new or changed activity.

Safety and product performance issues

The project proponent must notify the Regulator of any safety issues that have been identified with equipment or building components installed or proposed to be installed in relation to the project as soon as practicable after the proponent becomes aware of that issue.

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

a product recall notice has been issued; orthe issue affects:

more than 10% of the sites of the project; ormore than 5 sites.

—Record-keeping requirements


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



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Record-keeping requirements

The project proponent for the project must keep a record of the following in relation to each site of the project:

if a function specified to be an excluded function was not performed at a material level at the site during the baseline period—evidence of that fact.the information about the site (if any) required by ;for each excluded function for the site—the level at which the function was performed during the baseline period and during each measurement period for which it is an excluded function; if relevant equipment is disposed of—evidence that it is disposed of in accordance with relevant Commonwealth, State or Territory legislative requirements;if section (Requirements for lighting upgrades) applies in relation to a project activity undertaken at that site—

the statement made for the purposes of subsection for that project activity; andif subsection applies to the project activity—the written notice received from the third party in satisfaction of the requirement in paragraph .

For this section, relevant equipment, in relation to a site, is:energy-consuming equipment; orequipment that generates electricity for consumption at the site; ora building component or other equipment not mentioned in paragraph (a) or (b);

that is removed from the site and disposed of as part of a project activity that has an effect, which is not minor or trivial, on the abatement for a site of the project in at least one measurement period.Note: Any equipment mentioned in paragraphs (a) and (b) that is removed from the site must also be

disposed of: see section .

—Monitoring requirements


For paragraph 106(3)(d) of the Act, this Division sets out requirements to monitor a community building project that is an eligible offsets project.

Requirement to monitor subsidised renewable electricity at a site

If a project proponent will, for the purposes of Part 4, use data for subsidised renewable electricity at a site that is monitored in accordance with this section, the subsidised renewable electricity must be monitored in kilowatt hours, annually or more frequently:

(a) using a meter in accordance with the relevant requirements of the National Measurement Institute for electricity metering, set out in the document titled NMI M 6 Electricity Meters as in force from time to time; or

(b) using 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.



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—Dividing a community building project


For subsection 77A(2) of the Act, this Part sets out requirements for dividing a community building project that is an eligible offsets project.

Requirements for division of project

The project may only be divided so that each part is a site of the project, or a group of sites of the project.Note: For most practical purposes, reporting periods for each part of the project will need to be either 1 or

2 measurement periods, which are fixed for the project when the crediting period is set. Abatement cannot be claimed for a measurement period that is not wholly within a reporting period (see section ).



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—Eligibility requirements for a site

Note 1: See paragraph .

Note 2: The production levels for a site in the eligibility requirements in this Schedule are calculated in accordance with for the purposes of equation 3.2 in section . They are the parameters PLm (production level for measurement period m) and PLB (production level for the baseline period).

Type of site Eligibility requirements for both baseline and measurement period

Additional eligibility requirements for measurement period m

(a) Public facility During the period, the average number of hours per week the facility was open to the public for its civic, social, cultural or sporting purposes is no less than 20.The average proportion of the interior floor area of the facility that was open to the public during the period is no less than 25%.Total interior floor area of the public facility that is either:(a) lit, ventilated and suitable for occupancy by the public or by staff of the public facility; or(b) archival space that is actively conditioned for one or more of:

(i) temperature control; and(ii) humidity control;

is at least 1000 square metres.

The production level for measurement period m is no more than 20% above the production level for the baseline period.

(b) Private gallery or museum

The average number of hours per week the private gallery or museum was open to the public during the period is no less than 20.The average proportion of the interior floor area of the private gallery or museum that was open to the public during the period (not counting any area used by a retail shop or café) is no less than 25%.Total interior floor area of the private gallery or museum that is either:(a) lit, ventilated and suitable for occupancy by the public or by staff of the private gallery or museum; or(b) archival space that is actively conditioned for one or more of:

(i) temperature control; and(ii) humidity control;

is at least 1000 square metres.

The production level for measurement period m is no more than 20% above the production level for the baseline period.The average number (by day) of hours per week the private gallery or museum was open to the public during the measurement period is at least 80% of the average number (by day) of hours per week the private gallery or museum was open to the public during the baseline period.

(c) School Throughout the period, the school was located at premises that:

The weighted average number (by day of operation) of students enrolled



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(a) were not a private residence; and(b) were physically attended by the students enrolled at the school for a substantial part of each operating day.The weighted average number (by operating day) of students enrolled at the school during the period is no less than 20.Throughout the period, one or more of the following was provided at the school, to students of the relevant ages:(a) a primary school education program, including any ancillary elements, such as after-school activities or care, or boarding;(b) a secondary school education program, including any ancillary elements, such as after-school activities or care, or boarding.

at the school during the measurement period is at least 80% of the weighted average number (by day of operation) of students enrolled at the school during the baseline period

(d) Hospital Throughout the period, a declaration was in force for the hospital under section 121-5(6) of the Private Health Insurance Act 2007.

The weighted average number (by day) of beds at the hospital during the measurement period m is at least 80% of the weighted average number (by day) of beds at the hospital during the baseline period.The number of separations at the hospital during the measurement period is at least 80% of the number of separations at the hospital during the baseline period.The number of bed days at the hospital during the measurement period is at least 80% of the number of bed days at the hospital during the baseline period;

(e) Aged care facility

During the period, the facility was a residential facility in which persons were provided with:(a) accommodation that included:

(i) appropriate staffing to meet the nursing and personal care needs of the person; and(ii) meals and cleaning services; and(iii) furnishings, furniture and equipment for the provision of that care and accommodation;

(b) residential care, within the meaning of that term in the Aged Care Act 1997.The weighted average number (by day) of residents at the aged care facility during

The production level for measurement period m is no more than 20% above the production level for the baseline period.



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the period is no less than 20.

(f) Common area in a residential apartment complex

N/A The production level for measurement period m is no more than 5% above the production level for the baseline period.

(g) Serviced apartment complex

The number of serviced apartments in the complex during the period is no less than 20.If the complex includes hotel rooms as well as serviced apartments—the weighted average number (by day) of serviced apartments in the complex during the period, is greater than the weighted average number (by day) of lettable hotel rooms during the same period.

If the complex includes hotel rooms as well as serviced apartments—the weighted average number (by day) of serviced apartments in the complex during the measurement period, is greater than the weighted average number (by day) of lettable hotel rooms during the same period.



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—Functions that may be specified as excluded Note: See sections and

Interpretation

In this determination:

computing centre, for a site, means a part of the site that:(a) is dedicated to computing equipment; and(b) has dedicated air conditioning; and(c) has a dedicated UPS (uninterrupted power supply) with a UPS load greater than

10kW.

Table 1: functions that may be specified as excluded for each type of site

Type of site Outsourceable core functions Non-core functions

(a) Public facility Computing centre Retail shopCafé/restaurantCarpark


N/A Retail shopCafé/restaurantCarpark

(c) School N/A Boarding houseCommercially-operated canteen

(d) Hospital Laundry of linenLaundry of towelsLaundry of surgical scrubs/medical attirePreparation of meals for patients Sterilisation of reusable surgical and medical equipment itemsComputing centre

Retail shopCafé/restaurantCarpark

(e) Aged care facility Laundry of linenLaundry of towelsPreparation of meals for residents

Café/restaurantCommercially-operated gymnasiumCommercially-operated canteen

(f) Common area in a residential apartment complex

N/A N/A


N/A N/A



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Table 2: measures for functions listed in Table 1

Function Measure

Retail shopCafé/restaurantBoarding houseCommercially-operated canteenCommercially-operated gymnasium

Area in m2

Carpark Number of parking spacesLaundry of linenLaundry of towelsLaundry of surgical scrubs/medical attire

Proportion processed on site, either by weight or by number of items

Sterilisation of reusable surgical and medical equipment items

Proportion processed on site, by number of items

Preparation of meals for patients of a hospital or residents of an aged care facility

Number of meals prepared

Computing centre Number of equipment racks



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—Information about sitesNote: See paragraph .

For a site of a type listed in the table the project proponent must keep records of the information specified in the table in relation to:

(a) the baseline period; and(b) each measurement period after the baseline period.

Type of site In relation to the baseline period In relation to a measurement period

(a) Public facility Average proportion (as a percentage) of the interior floor area of the public facility that was open to the public during the baseline period

Average proportion (as a percentage) of the interior floor area of the public facility that was open to the public during the measurement period


Average number of hours per week the private gallery or museum was open to the public during the baseline period

Average number of hours per week the private gallery or museum was open to the public during the measurement period

(c) School Weighted average number (by day of operation) of students enrolled at the school during the baseline period

Weighted average number (by day of operation) of students enrolled at the school during the measurement period

(d) Hospital Weighted average number (by day) of beds at the hospital during the baseline period

Number of separations during the baseline period

Number of bed days at the hospital during the baseline period

Weighted average number (by day) of beds at the hospital during the measurement period

Number of separations during the measurement period

Number of bed days at the hospital during the measurement period

(e) Aged care facility N/A N/A(f) Common area in a

residential apartment complex

N/A N/A


Weighted average number (by day) of lettable apartments in the complex during the baseline period

If the complex also includes hotel rooms: weighted average number (by day) of hotel rooms in the complex during the baseline period

Weighted average number (by day) of lettable apartments in the complex during the measurement period

If the complex also includes hotel rooms: weighted average number (by day) of hotel rooms in the complex during the measurement period



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—Production levelsNote: See section . The parameters PLm and PLB in equation 3.2 are productions levels calculated in accordance with this

Schedule.

Production level at a time

For a site that is of a type listed in the table, the production level on a day is given by the table.

Production level over a period

The production level for a site over a period of time is the average of the production levels of that site for each day during the period.

Type of site Production level

(a) Public facility Total interior floor area of the public facility (in square metres) that is either:(a) lit, ventilated and suitable for occupancy by the public or by staff of the public facility; or(b) archival space that is actively conditioned for one or more of:

(i) temperature control; and(ii) humidity control


Total interior floor area of the museum (in square metres) that is either:(a) lit, ventilated and suitable for occupancy by the public or by staff of the museum; or(b) archival space that is actively conditioned for one or more of:

(i) temperature control; and(ii) humidity control

(c) School N/A(d) Hospital N/A(e) Aged care facility Number of residents at the facility(f) Common area in a

residential apartment complex

Number of units in the residential apartment complex


Total number of:(a) lettable serviced apartments; and(b) lettable hotel rooms (if any);at the complex



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Documents

Carbon Credits (Carbon Farming … · Web viewIn calculating the energy consumption of a function or group of functions listed in Table 1 of Schedule 2, the project proponent need