EXPOSURE DRAFT
EXPOSURE DRAFT
Carbon Credits (Carbon Farming Initiative—Community Buildings) Methodology Determination2016
I, Greg Hunt, Minister for the Environment, make the following determination.
Dated
Greg Hunt
Minister for the Environment
Contents
Part 1 —Preliminary
1 Name
2 Commencement
3 Authority
4 Duration
5 Definitions
6 References to factors and parameters from external sources
7 Assessing level at which a function was performed during a period
Part 2 —Community building projects
8 Community building projects
Part 3 —Project requirements
Division 1 —Operation of this Part
9 Operation of this Part
Division 2 —General requirements
10 Information to be included in application for declaration
11 Requirements for lighting upgrades
12 Disposal of equipment
Division 3 —Making choices for the project
13 The baseline period
14 Excluded functions for a site
Part 4 —Net abatement amount
Division 1 —Preliminary
15 Operation of this Part
16 Overview of gases accounted for in abatement calculations
Division 2 —Sites, data and attributions to be used in calculations
17 When a site may be included in calculations
18 Data sources
19 Using supplier data to determine energy consumption for the baseline period or a measurement period
20 Assessment of energy consumption of a function
21 Use of grid data for energy returned to the grid
22 Dealing with excluded functions—baseline emissions
23 Dealing with excluded functions—project emissions
Division 3 —Method for calculating net abatement amount
24 Summary
25 Net abatement amount for the project (A)
26 Abatement for a site of the project in a measurement period (Am,n)
Division 4 —Calculations relating to baseline emissions
27 Summary
28 Baseline emissions of a site in a measurement period (EB,m)
Division 5 —Calculations relating to project emissions
29 Summary
30 Project emissions of a site for a measurement period (EP,m)
Part 5 —Reporting, notification record-keeping and monitoring requirements
Division 1 —Offsets report requirements
31 Operation of this Division
32 Information that must be included in an offsets report
Division 2 —Notification requirements
33 Operation of this Division
34 Notification requirements
Division 3 —Record-keeping requirements
35 Operation of this Division
36 Recordkeeping requirements
Division 4 —Monitoring requirements
37 Operation of this Division
38 Requirement to monitor subsidised renewable electricity at a site
Part 6 —Dividing a community building project
39 Operation of this Part
40 Requirements for division of project
Schedule 1 —Eligibility requirements for a site
Schedule 2 —Functions that may be specified as excluded
1 Interpretation
2 Table 1: functions that may be specified as excluded for each type of site
3 Table 2: measures for functions listed in Table 1
Schedule 3 —Information about sites
Schedule 4 —Production levels
Part 1—Preliminary
1 Name
This is the Carbon Credits (Carbon Farming Initiative—Community Buildings) Methodology Determination 2016.
2 Commencement
This determination commences on the day after it is registered.
3 Authority
This determination is made under subsection106(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.
4 Duration
This determination remains in force for the period that:
(a)begins when this determination commences; and
(b)ends on the day before this determination would otherwise be repealed under subsection50(1) of the Legislative Instruments Act 2003.
5 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.
communitybuilding 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.
GreenPowermeans 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 RenewableEnergy (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 paragraphs76(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 inNational 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) Determination2008, 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 subsection8(4).
public facility—see subsection8(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 subparagraph27(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 subparagraph27(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 8(2).
6 References to factors and parameters from external sources
(1)If a calculation in this determination includes a factor or parameter that is defined or calculated by reference to another instrument or writing, the factor or parameter to be used for a reporting period is the factor or parameter referred to in, or calculated by reference to, the instrument or writing as in force at the end of the reporting period.
(2)Subsection(1) does not apply if the determination specifies otherwise.
7 Assessing level at which a function was performed during a period
(1)This section applies in relation to functions listed in Table 1 ofSchedule 2.
When a function is performed at a material level
(2)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 periodthat is more than minor or trivial.
Note:A function not performed at a material level is taken to have zero energy consumption—see subsection 20(1).
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 17(1)(g).
See also paragraph 36(1)(a) (Record-keeping requirements).
Comparing the levels at which a function is performed during the baseline period and a measurement period
(3)To compare the levels at which a function was performed at a site duringa measurement period and the baseline measurement period for the purposes of paragraph 17(1)(g), the level must be assessed using the measure for the function listed in Table 2 of Schedule 2.
(4)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.
(5)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.
Part 2—Community building projects
8 Community building projects
(1)For paragraph106(1)(a) of the Act, this determination applies to an offsets project that satisfies the following:
(a)it involves project activities being undertaken at one or more sites;
(b)each project activity could reasonably be expected to result in eligible carbon abatement;
(c)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.
(2)A facility or institution, or a geographically separated part of a facility or institution, is a site if:
(a)it is of one of the following types (the type of the site):
(i)a public facility;
(ii)a private gallery or museum;
(iii)a school;
(iv)a hospital;
(v)an aged care facility;
(vi)the common area in a residential apartment complex;
(vii)a serviced apartment complex; and
(b)anyof 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.
(3)A public facility is a facility or institution that:
(a)is operated for civic, cultural,social or sporting purposes; and
(b)is 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; and
(c)consists of buildings that were designed or have been adapted for thosepurposes, 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.
(4)Each of the following is a project activity if it is undertaken at a site for the purposes of the project:
(a)modifying, installing, removing or replacing:
(i)energyconsuming equipment; or
(ii)equipment that generates electricity for consumption at the site; or
(iii)a building component or other equipment not mentioned in subparagraph(i) or (ii);
(b)changing how energyconsuming equipment is controlled or operated;
(c)changing the energy sources used by energyconsuming equipment;
(d)promoting behaviours by occupants of the site that affect energy consumption by energyconsuming equipment at the site.
(5)A project covered by subsection(1) is a community building project.
Part 3—Project requirements
Division 1—Operation of this Part
9 Operation of this Part
For paragraph106(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.
Division 2—General requirements
10 Information to be included in application for declaration
The application under section22 of the Act in relation to the project must include the following:
(a)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):
(i)the address, in the form approved by the Regulator;
(ii)the type of site;
(iii)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);
(iv)a detailed description of the project activities that are proposed to be performed at the site;
(v)for a project activity that includes modifying, installing, removing or replacing equipment (whether or not energyconsuming equipment) or other building components—a detailed description of the types of equipment or building components involved; and
(b)if there will be sites of the project that are not identified at the time of making the application:
(i)the types of sites; and
(ii)for each type of site, a detailed description of any project activity that is proposed to be performed at1 or more sites of that type;and
(iii)for a project activity that includes modifying, installing, removing or replacing equipment (whether or not energyconsuming 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(a)(ii) and (b)(i)), see the definition of site in subsection 8(2).
11 Requirements for lighting upgrades
(1)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.
(2)If the project proponent requires agreement from a third party to modify the lighting system, the proponent must not proceed unless it has:
(a)provided the third party with:
(i)a report about the lighting levels and quality of the lighting system after the proposed upgrade that satisfies subsection (3); and
(ii)in that report or another document—a comparison of the lighting levels and quality against the relevant standards set out in:
(A)for public lighting—AS/NZS 1158; and
(B)for other lighting—AS/NZS 1680; and
(b)received notice in writing that the third party accepts the proposed lighting levels and quality.
(3)A report satisfies this subsection if it is:
(a)a lighting level and quality modelling report that:
(i)for public lighting—is based on modelling conducted in accordance with AS 1158 and signed off by a qualified person; and
(ii)for 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.
(b)a report of estimated lighting levels and quality of the project lighting system prepared by:
(i)a Registered Lighting Practitioner of the Illuminating Engineering Society of Australia and New Zealand; or
(ii)a Certified Lighting Designer of the International Association of Lighting Designers.
(4)An activity mentioned in subsection (1) in relation to a lighting system must be undertaken or supervised:
(a)if the activity is covered by laws or regulatory arrangements of a State or Territorythat require a suitably qualified or authorised person to undertake or supervise it (eg a lineworker)—in accordance with the requirement; and
(b)otherwise—by a licensed electrician.
(5)The person mentioned in paragraph(4)(a) or (b), or his or her supervisor, must provide a signed statement that the activity was conducted in accordance with subsection (4).
(6)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.
qualifiedperson 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.
RELUX means the lighting planning program of that name developed by ReluxInformatik AG, Switzerland, or updated versions of the program.
12 Disposal of equipment
(1)This section applies to:
(a)energyconsuming equipment; or
(b)equipment that generates electricity for consumption at a site;
that is removed or replaced as part of a project activity.
(2)The equipment must be disposed of, and must not be refurbished or reused.
(3)Subsection (2) 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.
Division 3—Making choices for the project
13 The baseline period