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

EXPOSURE DRAFT

EXPOSURE DRAFT

EXPOSURE DRAFT

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

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

Dated

Greg Hunt

Minister for the Environment

Contents

Part 1 —Preliminary 4

1 Name 4

2 Commencement 4

3 Authority 4

4 Duration 4

5 Definitions 4

6 References to factors and parameters from external sources 6

7 Assessing level at which a function was performed during a period 6

Part 2 —Community building projects 8

8 Community building projects 8

Part 3 —Project requirements 10

Division 1 —Operation of this Part 10

9 Operation of this Part 10

Division 2 —General requirements 10

10 Information to be included in application for declaration 10

11 Requirements for lighting upgrades 10

12 Disposal of equipment 12

Division 3 —Making choices for the project 12

13 The baseline period 12

14 Excluded functions for a site 12

Part 4 —Net abatement amount 14

Division 1 —Preliminary 14

15 Operation of this Part 14

16 Overview of gases accounted for in abatement calculations 14

Division 2 —Sites, data and attributions to be used in calculations 14

17 When a site may be included in calculations 14

18 Data sources 15

19 Using supplier data to determine energy consumption for the baseline period or a measurement period 16

20 Assessment of energy consumption of a function 18

21 Use of grid data for energy returned to the grid 18

22 Dealing with excluded functions—baseline emissions 18

23 Dealing with excluded functions—project emissions 18

Division 3 —Method for calculating net abatement amount 18

24 Summary 18

25 Net abatement amount for the project (A) 19

26 Abatement for a site of the project in a measurement period (Am,n) 19

Division 4 —Calculations relating to baseline emissions 20

27 Summary 20

28 Baseline emissions of a site in a measurement period (EB,m) 20

Division 5 —Calculations relating to project emissions 22

29 Summary 22

30 Project emissions of a site for a measurement period (EP,m) 22

Part 5 —Reporting, notification record-keeping and monitoring requirements 25

Division 1 —Offsets report requirements 25

31 Operation of this Division 25

32 Information that must be included in an offsets report 25

Division 2 —Notification requirements 26

33 Operation of this Division 26

34 Notification requirements 26

Division 3 —Record-keeping requirements 26

35 Operation of this Division 26

36 Recordkeeping requirements 27

Division 4 —Monitoring requirements 27

37 Operation of this Division 27

38 Requirement to monitor subsidised renewable electricity at a site 27

Part 6 —Dividing a community building project 28

39 Operation of this Part 28

40 Requirements for division of project 28

Schedule 1 —Eligibility requirements for a site 29

Schedule 2 —Functions that may be specified as excluded 32

1 Interpretation 32

2 Table 1: functions that may be specified as excluded for each type of site 32

3 Table 2: measures for functions listed in Table 1 33

Schedule 3 —Information about sites 34

Schedule 4 —Production levels 35

—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 13.

Note: The energy use during the baseline period is used to set the baseline emissions for abatement calculations.

community building project—see subsection 8(5).

computing centre, for a site—see Schedule 2.

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.

energyconsuming 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 14.

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

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 25). 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 13.

monitoring requirements means the requirements set out in Division 4 of Part 5.

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 15).

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 8(4).

public facility—see subsection 8(3).

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 8(2).

site details—see paragraph 10(a).

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

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,