Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and Energy Efficiency)

EXPOSURE DRAFT

Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and Energy Efficiency) Determination 2014

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

Dated 2014

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

Contents

2 Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and Energy Efficiency) Determination 2014

Reporting, record-keeping and monitoring requirements Part 5 Monitoring requirements Division 3

Section 63

Part 1—Preliminary

1 Name This determination is the Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and Energy Efficiency) Determination 2014.

2 Commencement This determination commences on the day after it is registered.

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

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(a) begins when this determination commences; and (b) ends on the day before this determination would otherwise be repealed under subsection 50(1) of the Legislative Instruments Act 2003.

5 Definitions In this determination: accuracy factor has the meaning given by section 26. Act means the Carbon Credits (Carbon Farming Initiative) Act 2011. baseline emissions model means a baseline emissions model used for the purposes of Part 4. baseline measurement period has the meaning given by subsection 22(1). completed: an implementation is completed when the equipment relating to the implementation has begun operating under normal conditions. decay coefficient has the meaning given by subsection 27(2). decay coefficient year has the meaning given by subsection 27(2). decay factor has the meaning given by subsection 27(1). dependent variable, for an implementation, means the total measured emissions from the consumption of relevant energy for the implementation.

Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and Energy Efficiency) Determination 2014 3

Part 5 Reporting, record-keeping and monitoring requirements Division 3 Monitoring requirements Section 65

Note: Total measured emissions from the consumption of relevant energy for an implementation is worked out using equation 35. direct emission of greenhouse gas, in relation to a site, means the release of greenhouse gas into the atmosphere as a direct result of fuel combustion at the site. effective range, for an emissions model, has the meaning given by subsection 17(7). emissions model means a baseline emissions model or an operating emissions model. IFEE implementation descriptions document means the document entitled “IFEE implementation descriptions”, published by the Regulator and as in force from time to time. implementation has the meaning given by section 6. independent variable has the meaning given by section 23. indirect emission of greenhouse gas, in relation to a site, means the release of greenhouse gas into the atmosphere as a direct result of fuel combustion at another site to generate electricity for consumption at the site. industrial fuel and energy efficiency project has the meaning given by section 8. interactive effects has the meaning given by section 25. measurement time interval has the meaning given by subsection 17(6). monitoring requirements means the requirements set out in Division 3 of Part 5. National Energy Retail Rules means the National Energy Retail Rules, as in force from time to time, made under the National Energy Retail Law set out in the Schedule to the National Energy Retail Law (South Australia) Act 2011 (SA). NGA Factors document means the document entitled “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. NMI document M6 means the document entitled “NMI M 61 Electricity Meters”, published by the National Measurement Institute and as in force from time to time. NMI document R137 means the document entitled “NMI R 137 Gas Meters”, published by the National Measurement Institute and as in force from time to time. normal value, for a site constant, has the meaning given by subsection 24(2).

Section 63 operating emissions model means an operating emissions model used for the purposes of Part 4. operating measurement period has the meaning given by subsection 22(2). population in a project means a group of implementations in the project consisting of the same type of activity or group of related activities. random selection method means a selection method under which each implementation in a population has the same chance as any other implementation in the population of being selected for the sample of the population, and includes a restricted random selection method. Note: An example of a restricted random selection method is a method where the population is first stratified according to a variable that influences energy consumption. relative precision: (a) of the emissions level predicted by an emissions model—has the meaning given by subsection 19(2); or (b) of the emissions abated by an implementation—has the meaning given by subsection 26(2). relevant energy has the meaning given by section 7. site means: (a) a physical location; or (b) a series of physical locations in close proximity to one another that are under common control. site constants has the meaning given by section 24. submethod means one of the submethods set out in Part 4.

6 Meaning of implementation (1) An activity or group of activities undertaken at a site is an implementation for an industrial fuel and energy efficiency project if the activities consist of the following: (a) modifying existing equipment; (b) changing the way existing equipment is used; (c) replacing existing equipment; (d) installing equipment as part of replacing, modifying or augmenting existing equipment; (e) removing existing equipment; (f) changing the energy sources used by existing equipment; (g) changing the mix of energy sources used by existing equipment. (2) However, the following activities are not an implementation or part of an implementation:

(a) the installation of equipment other than in circumstances referred to in paragraph (1)(d); (b) the installation of a type of equipment in relation to which a renewable energy certificate can be created under the Renewable Energy (Electricity) Act 2000.

7 Meaning of relevant energy (1) Relevant energy for an implementation in a time period means fuel or electricity consumed by the following equipment in the time period: (a) existing equipment to which the implementation relates; (b) equipment installed as part of the implementation; (c) if the consumption of fuel or electricity by other equipment at the site changes as a result of the implementation in the time period—the other equipment; (d) if the consumption of fuel or electricity by equipment referred to in paragraphs (a) to (c) is not measured separately to the consumption of fuel or electricity by other equipment (the cometered equipment) in the time period—the cometered equipment. (2) However, fuel or electricity consumed in the time period is only relevant energy for an implementation to the extent that: (a) the change is likely to be material; and (b) the equipment is at the same site as the equipment to which the implementation relates; and (c) the project proponent has not treated the change in consumption in the time period as an interactive effect for the implementation in the time period. (3) A change in the consumption of energy is material in relation to an implementation in a reporting period if the change in emissions related to that consumption is 5% or greater of the emissions abated by the implementation. Note: The emissions abated by an implementation is calculated using the submethods in Part 4.

Section 63

Part 2—Industrial fuel and energy efficiency project

8 Industrial fuel and energy efficiency project (1) For paragraph 106(1)(a) of the Act, this determination applies to an offsets project that aims to reduce the following in relation to one or more sites: (a) direct emissions of greenhouse gas from equipment used to generate: (i) electricity; or (ii) useful physical work; or (iii) cooling, heat or steam for use at the site or another site; (b) indirect emissions of greenhouse gas from equipment that consumes electricity. Note: Examples of useful physical work are the following: (a) running a diesel engine to create shaft power; (b) storing energy chemically; (c) pumping water to a higher location; (d) compressing gasses. (2) A project covered by subsection (1) is an industrial fuel and energy efficiency project.

Part 3—Project requirements

9 Operation of this Part For paragraph 106(1)(b) of the Act, this Part sets out requirements that must be met for an industrial fuel and energy efficiency project to be an eligible offsets project.

10 Declaration requirements (1) For an industrial fuel and energy efficiency project to be an eligible offsets project at the time the project is declared to be an eligible offsets project: (a) the project must involve undertaking one or more implementations at one or more sites that are in the project; and (b) each implementation must aim to reduce direct or indirect emissions (or both) in relation to the site of the implementation; and (c) the reduction in emissions as a result of an implementation must be capable of being calculated under Part 4; and (d) the application made under section 22 of the Act in relation to the project must include a description of: (i) the implementations, or type of implementations, in the project; and (ii) the sites, or type of sites, for those implementations; and (iii) the submethods to be used for those implementations. (2) If an implementation or type of implementation is covered by a description in the IFEE implementation descriptions document, then the project proponent must use the description in that document to satisfy subparagraph (1)(d)(i) for the implementation or type of implementation.

11 Implementations must be as described in application The implementations undertaken in the project must be as described in the application, or as otherwise approved by the Regulator.

12 No limiting output or services provided by equipment The project must not involve undertaking an activity that limits the output of, or reduces the service levels provided by, equipment at a site for the purposes of reducing electricity or fuel consumption at the site unless: (a) the activity reduces the emissions intensity of equipment at the site; or (b) the activity reduces the emissions intensity of the site overall. Note: An example of an activity that must not be included in the project is removing lighting equipment from a site to the extent that lighting levels at the site are reduced to below Australian standards.

Section 63

Part 4—Net abatement amount

Division 1—Preliminary

13 Operation of this Part For paragraph 106(1)(c) of the Act, this Part specifies the method for working out the carbon dioxide equivalent net abatement amount for a reporting period for an industrial fuel and energy efficiency project that is an eligible offsets project.

14 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 carbon dioxide equivalent net abatement amount for an industrial fuel and energy efficiency project.

Greenhouse gases and emissions sources Item Relevant emissions Emissions source Greenhouse gas calculation

1 Baseline emissions for an Direct emissions Carbon dioxide (CO2) implementation or sample of Methane (CH4) a population Nitrous oxide (N2O)

2 Baseline emissions for an Indirect emissions Carbon dioxide (CO2) implementation or sample of Methane (CH4) a population Nitrous oxide (N2O)

3 Operating emissions or Direct emissions Carbon dioxide (CO2) measured emissions for an Methane (CH4) implementation or sample of Nitrous oxide (N O) a population 2

4 Operating emissions or Indirect emissions Carbon dioxide (CO2) measured emissions for an Methane (CH4) implementation or sample of Nitrous oxide (N O) a population 2

15 References to factors and parameters from external sources (1) If a calculation in this Part includes a factor or parameter that is defined 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 the instrument or writing as in force on the earlier of the following days: (a) the day the offsets report for the reporting period is given to the Regulator; (b) the day that report is required to be given to the Regulator.

(2) Subsection (1) does not apply to a parameter that is required to be worked out in accordance with the monitoring requirements.

Section 63

Division 2—Method for calculating net abatement amount

16 Carbon dioxide equivalent net abatement amount The carbon dioxide equivalent net abatement amount for a reporting period

(Anet), in tonnes CO2e, is worked out using the formula (equation 1):

where:

Anet means the carbon dioxide equivalent net abatement amount for the reporting

period, in tonnes CO2e.

Ah means the emissions abated by implementation (h) in the project for the

reporting period, in tonnes CO2e, worked out using submethods 1 and 2.

Ap means the emissions abated by population (p) in the project for the reporting period, in tonnes CO2e, worked out using submethods 3 and 4. Note: The project proponent may choose to work out the carbon dioxide equivalent net abatement amount through working out emissions abated for an individual implementation or for a population by calculating emissions abated from a sample of the population. If the project proponent chooses to work out emissions abated by individual implementations only or by samples of populations only, then respectively, Ap or Ah will have a value of zero.

17 Using a submethod (1) For each implementation that is in the project the project proponent must choose one submethod to work out the emissions abated by the implementation. (2) Subject to subsection (3), the submethod chosen to work out the emissions abated by the implementation in the first reporting period for the project must be used for all subsequent reporting periods. (3) If submethod 2 has been used to work out the emissions abated by the implementation in a reporting period, the project proponent may use submethod 1 for all subsequent reporting periods.

Sample and population (4) If the project proponent chooses submethod 3 or 4 to work out the emissions abated by a population in the project, the project proponent must choose a sample of implementations within that population. (5) The sample must be representative of the population and chosen by a random selection method.

Measurement time intervals (6) A measurement time interval for an implementation, or sample of a population, means a time period during: (a) a baseline measurement period or operating measurement period for the implementation or sample of the population; or (b) a reporting period for the project; in which: (c) site constants are at their normal values; and (d) measured values for all independent variables: (i) fall within the effective range of the independent variable; or (ii) fall outside the effective range of the independent variable by an amount which is equal to or less than 5% of the minimum value of the effective range; or (iii) fall outside the effective range of the independent variable by an amount which is equal to or less than 5% of the maximum value of the effective range. (7) The effective range of an independent variable for an emissions model is the range of measured values for the independent variable on which the emissions model was based. (8) In using a submethod to work out the emissions abated by an implementation, or sample of a population, the same measurement time interval must be used for every parameter throughout the baseline measurement period, operating measurement period and reporting period for the submethod. (9) For the purposes of using the same measurement time interval to work out the emissions abated by the implementation, or the sample of the population: (a) the longest measurement time interval that a parameter is measured or observed in must be the same as the measurement time interval for the submethod; and (b) if a parameter is measured or observed in a measurement time interval that is shorter than the measurement time interval for the submethod—those shorter measurement time intervals must be aggregated to form a measurement time interval for the parameter that is the same as the measurement time interval for the submethod. Note: This means that a measurement time interval for a parameter cannot be divided into 2 or more smaller measurement time intervals. However, smaller measurement time intervals may be aggregated so that they are the same as the measurement time interval for the submethod.

Section 63

Division 3—Requirements for emissions models

18 General requirements (1) This section sets out the requirements for using a baseline emissions model or an operating emissions model for the purposes of this Part. (2) An emissions model for an implementation must be developed using regression analysis to relate independent variables to the dependent variable for the implementation. (3) An emissions model for a sample of a population must be developed using regression analysis to relate independent variables to the dependent variables for the implementations in the sample. (4) An emissions model for an implementation, or a sample of a population, must include the following as independent variables or site constants: (a) the output of equipment at the site of the implementation or sites of the implementations in the sample; (b) the service levels provided by equipment at the site of the implementation or sites of the implementations in the sample. (5) An emissions model for an implementation, or a sample of a population, must include the effects of variable input or output quality as independent variables or site constants unless the emissions associated with changes in input or output quality are interactive effects for the implementation or an implementation in the sample.

19 Minimum statistical requirements

Minimum statistical requirements (1) An emissions model for an implementation or a sample of a population must, at a minimum, meet the following statistical requirements: (a) each independent variable coefficient must have a tstatistic that is greater than the value for the tdistribution at the 97.5% singlesided confidence level for the number of degrees of freedom in the regression (equivalent to 95% confidence in a twosided distribution); (b) the lesser of the coefficient of determination (R2) and the adjusted coefficient of determination (adjusted R2) is greater than 0.75; (c) the relative precision of the emissions level predicted by the emissions model for the baseline measurement period or the operating measurement period (as the case may be) for the model calculated at the 95% confidence level is within 100%; (d) the percentage of time intervals in the measurement period, that would otherwise be measurement time intervals if the value of site constants in the time intervals were at their normal value, is less than 20%.

Relative precision (2) The relative precision of the emissions level predicted by the emissions model for the baseline measurement period or the operating measurement period (as the case may be) for the model (RPE,h,mod) is worked out using the formula (equation 2):

where:

RPE,h,mod means the relative precision of the emissions level predicted by the emissions model for the baseline measurement period or the operating measurement period (as the case may be) for the model. t means the critical tabulated Student’s T value for the appropriate number of degrees of freedom at the 95% confidence level.

SEE,h means the standard error of the emissions model for the baseline measurement period or the operating measurement period (as the case may be) for the model.

Eh means: (a) for submethod 1—the emissions level for implementation (h) predicted by the emissions model for the baseline measurement period; and (b) for submethod 2—the emissions level for implementation (h) predicted by the emissions model: (i) for a baseline emissions model—for the baseline measurement period; and (ii) for an operating emissions model—for the operating measurement period; and (c) for submethod 3—the average emissions level for the implementations in the sample of the population predicted by the emissions model for the baseline measurement period; and (d) for submethod 4—the average emissions level for the implementations in the sample of the population predicted by the emissions model: (i) for a baseline emissions model—for the baseline measurement period; and (ii) for an operating emissions model—for the operating measurement period.

20 Requirements for baseline emissions models (1) A baseline emissions model for an implementation or a sample of a population must be based on measurements of the consumption of relevant energy and independent variables: (a) taken over the baseline measurement period for the model; and (b) made in accordance with the monitoring requirements.

Section 63 (2) If a site constant is an independent variable for a baseline emissions model used for the purposes of submethod 3 or 4, the baseline emissions model must be also be based on measurements of the site constant: (a) taken over the baseline measurement period for the model; and (b) made in accordance with the monitoring requirements. (3) The value of the dependent variable for an implementation for a measurement time interval that a baseline emissions model is based on must equal the value of the total measured emissions from the consumption of relevant energy for the implementation for the measurement time interval. Note: Total measured emissions from the consumption of relevant energy for an implementation is worked out using equation 35. (4) Estimates of baseline emissions for an implementation worked out using a baseline emissions model must reasonably reflect emissions that would have occurred if the implementation had not been undertaken. (5) A baseline emissions model must be worked out for: (a) each implementation covered by submethod 1 or 2; and (b) the sample of each population covered by submethod 3 or 4.

21 Requirements for operating emissions models (1) An operating emissions model for an implementation or a sample of a population must be based on measurements of the consumption of relevant energy and independent variables: (a) taken over the operating measurement period for the model; and (b) made in accordance with the monitoring requirements. (2) The value of the dependent variable for an implementation for a measurement time interval that an operating emissions model is based on must equal the value of the total measured emissions from the consumption of relevant energy for the implementation for the measurement time interval. Note: Total measured emissions from the consumption of relevant energy for an implementation is worked out using equation 35. (3) Estimates of operating emissions for an implementation worked out using an operating emissions model must reasonably reflect actual emissions from undertaking the implementation. (4) An operating emissions model must be worked out for: (a) each implementation covered by submethod 2; and (b) the sample of each population covered by submethod 4. (5) The operating emissions model for an implementation or a sample of a population used for the purposes of a reporting period may be updated for the purposes of any subsequent reporting period. Note: The updated model will be based on a new operating measurement period.

22 Baseline measurement period and operating measurement period (1) A baseline emissions model for an implementation or a sample of a population must be based on a measurement period (the baseline measurement period) that: (a) covers at least one full operating cycle for the equipment that relates to the implementation or implementations in the sample; and (b) covers the full range of operating conditions for the equipment likely to exist during the crediting period; and (c) reasonably weights different operating conditions; and (d) accounts for cycles in energy consumption; and (e) is in accordance with the monitoring requirements. (2) An operating emissions model for an implementation or a sample of a population must be based on a measurement period (the operating measurement period) that: (a) covers at least one full operating cycle for the equipment that relates to the implementation or implementations in the sample; and (b) covers the full range of operating conditions for the equipment likely to exist during the crediting period; and (c) reasonably weights different operating conditions; and (d) accounts for cycles in energy consumption; and (e) is in accordance with the monitoring requirements. (3) The project proponent must choose a start date and time and an end date and time for the baseline measurement period and the operating measurement period. (4) The start date for the baseline measurement period must be no earlier than 24 months before: (a) for a baseline emissions model used for the purposes of submethod 1 or 2 —the date the implementation commences; and (b) for a baseline emissions model used for the purposes of submethod 3 or 4 —the first date on which an implementation in the sample commences. (5) The end date for the baseline measurement period must be before: (a) for a baseline emissions model used for the purposes of submethod 1 or 2 —the date the implementation commences; and (b) for a baseline emissions model used for the purposes of submethod 3 or 4 —the first date on which an implementation in the sample commences. (6) The start date for the operating measurement period must be: (a) for an operating emissions model used for the purposes of submethod 2—a day after the implementation has been completed; and (b) for an operating emissions model used for the purposes of submethod 4—a day after all the implementations in the sample of the population have been completed.

Section 63 23 Independent variables (1) A parameter is an independent variable for an implementation if it: (a) varies over time or, if the implementation is included in a sample of a population, varies between implementations in the sample; and (b) can be measured or derived from one or more measurements using a mathematical formula without material loss of precision; and (c) causes or explains changes in emissions from the consumption of relevant energy. (2) An independent variable must be independent from any other independent variable used in the emissions model. (3) However, an independent variable may be a linear or nonlinear function of itself or another independent variable. (4) A site constant may be an independent variable for the purposes of submethods 3 and 4.

24 Site constants (1) A parameter is a site constant for an implementation or sample of a population if: (a) varying the parameter would materially change the consumption of relevant energy for the implementation or an implementation in the sample; and (b) under normal operating conditions at the site of the implementation, or sites of the implementations in the sample, the parameter does not vary. (2) A site constant is at its normal value in a measurement time interval if: (a) for a baseline emissions model—the site constant is within the range observed during the baseline measurement period; and (b) for an operating emissions model—the site constant is within the range observed during the operating measurement period.

25 Interactive effects (1) A material change in the consumption of fuel or electricity at a site is an interactive effect for an implementation in a reporting period if: (a) the consumption of fuel or electricity is not relevant energy for the implementation in the reporting period; and (b) the change in consumption of fuel or electricity in the reporting period occurs as a result of the implementation. Note: The change in consumption may occur at the site of the implementation or a different site.

(2) Interactive effects for the implementation must be calculated using an approach for estimating the change in the consumption of fuel or electricity at the site of the implementation that: (a) uses data from the records of the site; and (b) is consistent with an estimation approach that applies to the change in consumption under another methodology determination or, if there is no methodology determination that deals with that change, is consistent with one of the following approaches: (i) an estimation approach that applies to changes of that kind under another emissions reduction scheme; (ii) a generally accepted energy efficiency measurement and verification practice that applies to changes of that kind; (iii) a generally accepted engineering methodology, model or formula that applies to changes of that kind; and (c) is consistent with relevant measuring and estimation requirements that apply to changes in consumption of fuel or electricity under the NGER (Measurement) Determination; and (d) results in an estimate that is measurable, capable of being verified and conservative; and (e) is credible and robust. Note 1: An approach applying to a change in consumption for the purposes of paragraph (2)(b) may involve the calculation of baseline and operating energy consumption, the direct calculation of a change in consumption, or a combination of both. Note 2: Energy consumed at a site may come within the definitions of relevant energy and interactive effects for an implementation. For the purposes of calculating emissions abated by the implementation under Part 4, the project proponent may choose to treat energy consumed at the site as relevant energy because the submethods in the Part limit the amount of energy that can be included as interactive effects.

26 Accuracy factor

Accuracy factor (1) The accuracy factor for implementation (h) for a reporting period (AF) is worked out using the following table.

Accuracy factors Item Relative precision of the Accuracy factor emissions abated by implementation (h) in the reporting period at 95% confidence level 1 less than 25% 1 2 25% to 50% 0.9 3 50% to 75% 0.8

Section 63

Accuracy factors Item Relative precision of the Accuracy factor emissions abated by implementation (h) in the reporting period at 95% confidence level 4 75% to 100% 0.6 5 100% to 150% 0.4 6 150% to 200% 0.2 7 greater than 200% 0

Relative precision (2) The relative precision of the emissions abated by implementation (h) in the reporting period (RPA,h) is worked out using the formula (equation 3):

where:

RPA,h means the emissions abated by implementation (h) in the reporting period. t means the critical tabulated Student’s T value for the appropriate number of degrees of freedom (the number of measurement intervals in the reporting period) at the 95% confidence level.

SEA,h means the standard error of the emissions abated by implementation (h) for the reporting period, worked out: (a) for submethods 1 and 3—using equation 4; and (b) for submethods 2 and 4—using equation 5.

Ah means the emissions abated by the implementation (h) for the reporting period worked out: (a) for submethods 1 and 3—using equation 6; and (b) for submethods 2 and 4—using equation 7.

Standard error for submethods 1 and 3 (3) The standard error of the emissions abated by implementation (h) for the reporting period (SEA,h) is worked out using the formula (equation 4):

where:

SEA,h means the standard error of the emissions abated by implementation (h) for the reporting period.

SEb,h means the standard error of the baseline emissions model for implementation (h).

uh,i means the instrument tolerance or uncertainty for measurements of energy type (i) for implementation (h).

nh,i means the number of measurements of energy type (i) in the reporting period. Note: Energy type (i) may be electricity or a fuel.

Standard error for submethods 2 and 4 (4) The standard error of the emissions abated by implementation (h) for the reporting period (SEA,h) is worked out using the formula (equation 5):

where:

SEA,h means the standard error of the emissions abated by implementation (h) for the reporting period.

SEb,h means the standard error of the baseline emissions model for implementation (h).

SEp,h means the standard error of the operating emissions model for the implementation (h) for the reporting period.

Emissions abated—submethods 1 and 3

(5) The emissions abated by the implementation (h) for the reporting period (Ah) is worked out using the formula (equation 6):

where:

Ah means the emissions abated by implementation (h) for the reporting period, in

tonnes CO2e.

Eb_mod,h means the total modelled baseline emissions for implementation (h) for

the reporting period, in tonnes CO2e, worked out: (a) for submethod 1—using equation 11; and (b) for submethod 3—using equation 24.

Note: Eb_mod,h is Eb_mod,p,s,h in submethod 3.

Emeas,h means the total measured emissions from the consumption of relevant energy for implementation (h) for the reporting period, in tonnes CO2e, worked out: (a) for submethod 1—using equation 13; and (b) for submethod 3—using equation 26.

Note: Emeas,h is Emeas,p,s,h in submethod 3.

EIN,h means the net interactive effects for implementation (h) for the reporting period, in tonnes CO2e, worked out: (a) for submethod 1—using equation 10; and

Section 63 (b) for submethod 3—using equation 23.

Note: EIN,h is EIN,p,s,h in submethod 3.

Emissions abated—submethods 2 and 4

(6) The emissions abated by the implementation (h) for the reporting period (Ah) is worked out using the formula (equation 7):

where:

Ah means the emissions abated by implementation (h) for the reporting period, in tonnes CO2e.

Eb_mod,h means the total modelled baseline emissions for implementation (h) for the reporting period, in tonnes CO2e, worked out: (a) for submethod 2—using equation 16; and (b) for submethod 4—using equation 31.

Note: Eb_mod,h is Eb_mod,p,s,h in submethod 4.

Ep_mod,h means the total modelled operating emissions for implementation (h) for

the reporting period, in tonnes CO2e, worked out: (a) for submethod 2—using equation 18; and (b) for submethod 4—using equation 33.

Note: Ep_mod,h is Ep_mod,p,s,h in submethod 4.

EIN,h means the net interactive effects for implementation (h) for the reporting period, in tonnes CO2e, worked out: (a) for submethod 2—using equation 15; and (b) for submethod 4—using equation 30.

Note: EIN,h is EIN,p,s,h in submethod 4.

27 Decay factor (1) The decay factor for a reporting period (DF) is worked out using the formula (equation 8):

where:

DF means the decay factor for a reporting period.

DCy means the decay coefficient for decay coefficient year (y).

nMI,h,y means the number of measurement time intervals for implementation (h) that occur in year (y).

nMI,h means the total number of measurement time intervals in the reporting period.

(2) The decay coefficient for a year of operation of an operating emissions model (decay coefficient year) is worked out using the following table (where year 1 begins on the start date of the operating measurement period for the operating emissions model).

Decay coefficients Item Year Decay coefficient 1 1 1.00 2 2 0.80 3 3 0.64 4 4 0.51 5 5 0.41 6 6 0.33 7 7 0.26

Section 63

Division 4—Implementation using measured emissions—submethod 1

28 Emissions abated (1) The emissions abated by implementation (h) in the project for the reporting

period (Ah), in tonnes CO2e, is worked out using subsections (2) and (3). (2) If:

where:

EIA,h means the sum of the absolute values of the interactive effects for implementation (h) in the reporting period, in tonnes CO2e, worked out using equation 9.

the reporting period, in tonnes CO2e, worked out using equation 11.

Emeas,h means the total measured emissions from the consumption of relevant

energy for implementation (h) for the reporting period, in tonnes CO2e, worked out using equation 13.

EIN,h means the net interactive effects for implementation (h) for the reporting period, in tonnes CO2e, worked out using equation 10. AF means the accuracy factor for implementation (h) for the reporting period worked out in accordance with section 26. (3) If:

Emeas,h means the total measured emissions from the consumption of relevant

energy for implementation (h) for the reporting period, in tonnes CO2e, worked out using equation 13.

29 Interactive effects (1) The sum of the absolute values of the interactive effects for implementation (h)

in the reporting period (EIA,h), in tonnes CO2e, is worked out using the formula (equation 9):

where:

EIA,h means the sum of the absolute values of the interactive effects for

implementation (h) in the reporting period, in tonnes CO2e.

|EI,h,u| means the absolute value of interactive effect (u) for implementation (h) in

the reporting period, in tonnes CO2e, worked out in accordance with section 25.

(2) The net interactive effects for implementation (h) for the reporting period (EIN,h),

in tonnes CO2e, is worked out using the formula (equation 10):

where:

EIN,h means the net interactive effects for implementation (h) for the reporting

EI,h,u means interactive effect (u) for implementation (h) in the reporting period,

in tonnes CO2e, worked out in accordance with section 25.

30 Modelled baseline emissions The total modelled baseline emissions for implementation (h) for the reporting

period (Eb_mod,h), in tonnes CO2e, is worked out using the formula (equation 11):

where:

the reporting period, in tonnes CO2e.

Eb_mod,h,m means the total baseline emissions for implementation (h) for

measurement time interval (m) in the reporting period, in tonnes CO2e, modelled under section 31.

Section 63 31 Baseline emissions model The total baseline emissions for implementation (h) for measurement time

interval (m) in the reporting period (Eb_mod,h,m), in tonnes CO2e, is modelled by entering the values of the independent variables (x x x ) measured in the 1,b, 2,b,…, k,b measurement time interval into the baseline emissions model for the implementation (equation 12):

where:

Eb_mod,h,m means the total baseline emissions for implementation (h) for measurement time interval (m) in the reporting period, in tonnes CO2e.

x1,b means the measured value of the independent variable x1 for measurement time interval (m). k means the number of independent variables in the baseline emissions model.

∝ means the regression constant from the baseline emissions model. b

β1,b means the regression coefficient for independent variable x1 from the baseline emissions model.

32 Measured emissions The total measured emissions from the consumption of relevant energy for

implementation (h) for the reporting period (Emeas,h), in tonnes CO2e, is worked out using the formula (equation 13):

where:

Emeas,h means the total measured emissions from the consumption of relevant energy for implementation (h) for the reporting period, in tonnes CO2e.

Emeas,h,m means the total measured emissions from the consumption of relevant energy for implementation (h) for measurement time interval (m) in the reporting

period, in tonnes CO2e, worked out using equation 35.

Division 5—Implementation using operating emissions model— submethod 2

33 Emissions abated (1) The emissions abated by implementation (h) in the project for the reporting

period (Ah), in tonnes CO2e, is worked out using subsections (2) and (3). (2) If:

where:

tonnes CO2e.

EIN,h means the net interactive effects for implementation (h) for the reporting

period, in tonnes CO2e, worked out using equation 15. AF means the accuracy factor for implementation (h) for the reporting period worked out in accordance with section 26.

DF means the decay factor for the reporting period worked out using equation 8. (3) If:

where:

EIA,h means the sum of the absolute values of the interactive effects for

implementation (h) in the reporting period, in tonnes CO2e, worked out using equation 14.

Eb_mod,h means the total modelled baseline emissions for implementation (h) for the reporting period, in tonnes CO2e, worked out using equation 16.

Section 63

tonnes CO2e.

in the reporting period (EIA,h), in tonnes CO2e, is worked out using the formula (equation 14):

where:

EIA,h means the sum of the absolute values of the interactive effects for implementation (h) in the reporting period, in tonnes CO2e.

|EI,h,u| means the absolute value of interactive effect (u) for implementation (h) in the reporting period, in tonnes CO2e, worked out in accordance with section 25.

(2) The net interactive effects for implementation (h) for the reporting period (EIN,h), in tonnes CO2e, is worked out using the formula (equation 15):

where:

EIN,h means the net interactive effects for implementation (h) for the reporting period, in tonnes CO2e.

EI,h,u means interactive effect (u) for implementation (h) in the reporting period, in tonnes CO2e, worked out in accordance with section 25.

35 Modelled baseline emissions The total modelled baseline emissions for implementation (h) for the reporting

period (Eb_mod,h), in tonnes CO2e, is worked out using the formula (equation 16):

where:

Eb_mod,h means the total modelled baseline emissions for implementation (h) for the reporting period, in tonnes CO2e.

Eb_mod,h,m means the total baseline emissions for implementation (h) for measurement time interval (m) in the reporting period, in tonnes CO2e, modelled under section 36.

36 Baseline emissions model The total baseline emissions for implementation (h) for measurement time

interval (m) in the reporting period (Eb_mod,h,m), in tonnes CO2e, is modelled by

entering the values of the independent variables (x x x ) measured in the 1,b, 2,b,…, k,b measurement time interval into the baseline emissions model for the implementation (equation 17):

where:

Eb_mod,h,m means the total baseline emissions for implementation (h) for measurement time interval (m) in the reporting period, in tonnes CO2e.

∝b means the regression constant from the baseline emissions model.

37 Modelled operating emissions The total modelled operating emissions for implementation (h) for the reporting

period (Ep_mod,h), in tonnes CO2e, is worked out using the formula (equation 18):

where:

Ep_mod,h means the total modelled operating emissions for implementation (h) for the reporting period, in tonnes CO2e.

Ep_mod,h,m means the total operating emissions for implementation (h) for measurement time interval (m) in the reporting period, in tonnes CO2e, modelled under section 38.

38 Operating emissions model The total operating emissions for implementation (h) for measurement time

interval (m) in the reporting period (Ep_mod,h,m), in tonnes CO2e, is modelled by entering the values of the independent variables (x x x ) measured in the 1,p, 2,p,…, k,p measurement time interval into the operating emissions model for the implementation for the measurement time interval (equation 19):

where:

Ep_mod,h,m means the total operating emissions for implementation (h) for measurement time interval (m) for the measurement time interval, in tonnes

Section 63

x1,p means the measured value of the independent variable x1 in measurement time interval (m). means the number of independent variables in the operating emissions model. k

∝p means the constant or fixed coefficient from the operating emissions model.

β1,p means the regression coefficient for independent variable x1 from the operating emissions model.

Division 6—Sample using measured emissions—submethod 3

39 Emissions abated by population The emissions abated by population (p) in the project for the reporting period

(Ap), in tonnes CO2e, is worked out using the formula (equation 20):

where:

Ap means the emissions abated by population (p) in the project for the reporting period, in tonnes CO2e.

Ap,s means the emissions abated by sample (s) of population (p) for the reporting

Np means the number of implementations in population (p) that were completed before the start of the reporting period.

np,s means the number of implementations in sample (s) of population (p) that were completed before the start of the reporting period.

40 Emissions abated by sample The emissions abated by sample (s) of population (p) for the reporting period

(Ap,s), in tonnes CO2e, is worked out using the formula (equation 21):

where:

Ap,s,h means the emissions abated by implementation (h) in sample (s) of

population (p) for the reporting period, in tonnes CO2e, worked out under section 41.

41 Emissions abated by implementation (1) The emissions abated by implementation (h) in sample (s) of population (p) for

the reporting period (Ap,s,h), in tonnes CO2e, is worked out using subsections (2) and (3). (2) If:

where:

Section 63

EIA,p,s,h means the sum of the absolute values of the interactive effects for implementation (h) in sample (s) of population (p) in the reporting period, in

tonnes CO2e, worked out using equation 21.

Eb_mod,p,s,h means the total modelled baseline emissions for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e, worked out using equation 24.

Emeas,p,s,h means the total measured emissions from the consumption of relevant energy for implementation (h) in sample (s) of population (p) for the reporting

Ap,s,h means the emissions abated by implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e.

EIN,p,s,h means the net interactive effects for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e, worked out using equation 23. AF means the accuracy factor for implementation (h) in sample (s) of population (p) for the reporting period, worked out in accordance with section 26. (3) If:

where:

Eb_mod,p,s,h means the total modelled baseline emissions for implementation (h) in

sample (s) of population (p) for the reporting period, in tonnes CO2e, worked out using equation 24.

population (p) for the reporting period, in tonnes CO2e.

in sample (s) of population (p) in the reporting period (EIA,p,s,h), in tonnes CO2e, is worked out using the formula (equation 22):

where:

tonnes CO2e.

|EIA,p,s,h,u| means the absolute value of interactive effect (u) for implementation (h) in sample (s) of population (p) in the reporting period, in tonnes CO2e, worked out in accordance with section 25. (2) The net interactive effects for implementation (h) in sample (s) of population (p)

for the reporting period (EIN,p,s,h), in tonnes CO2e, is worked out using the formula (equation 23):

where:

EIN,p,s,h means the net interactive effects for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e.

EI,p,s,h,u means interactive effect (u) for implementation (h) in sample (s) of population (p) in the reporting period, in tonnes CO2e, worked out in accordance with section 25.

43 Modelled baseline emissions The total modelled baseline emissions for implementation (h) in sample (s) of

population (p) for the reporting period (Eb_mod,p,s,h), in tonnes CO2e, is worked out using the formula (equation 24):

where:

Eb_mod,p,s,h means the total modelled baseline emissions for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e.

Eb_mod,p,s,h,m means the total baseline emissions for implementation (h) in sample (s) of population (p) for measurement time interval (m) in the reporting period, in

tonnes CO2e, modelled under section 44.

44 Baseline emissions model The total baseline emissions for implementation (h) in sample (s) of population (p) for measurement time interval (m) in the reporting period (Eb_mod,p,s,h,m), in tonnes CO2e, is modelled by entering the values of the independent variables (x x x ) measured in the measurement time interval into the baseline 1,b, 2,b,…, k,b emissions model for the sample (equation 25): where:

Eb_mod,p,s,h,m means the total baseline emissions for implementation (h) in sample

(s) of population (p) for measurement time interval (m), in tonnes CO2e.

Section 63

∝ means the regression constant from the baseline emissions model. b

45 Measured emissions The total measured emissions from the consumption of relevant energy for implementation (h) in sample (s) of population (p) for the reporting period

(Emeas,p,s,h), in tonnes CO2e, is worked out using the formula (equation 26):

where:

Emeas,p,s,h,m means the total measured emissions from the consumption of relevant energy for implementation (h) in sample (s) of population (p) for measurement

time interval (m) in the reporting period, in tonnes CO2e, worked out using equation 35.

Division 7—Sample using operating emissions model—submethod 4

46 Emissions abated by population The emissions abated by population (p) in the project for the reporting period

(Ap), in tonnes CO2e, is worked out using the formula (equation 27):

where:

Ap means the emissions abated by population (p) in the project for the reporting period, in tonnes CO2e.

Np means the number of implementations in population (p) that were completed before the start of the reporting period.

np,s means the number of implementations in sample (s) of population (p) that were completed before the start of the reporting period.

47 Emissions abated by sample The emissions abated by sample (s) of population (p) for the reporting period

(Ap,s), in tonnes CO2e, is worked out using the formula (equation 28):

where:

population (p) for the reporting period, in tonnes CO2e, worked out under section 48.

48 Emissions abated by implementation (1) The emissions abated by implementation (h) in sample (s) of population (p) for

the reporting period (Ap,s,h), in tonnes CO2e, is worked out using subsections (2) and (3). (2) If:

where:

Section 63

Ep_mod,p,s,h means the total modelled operating emissions for implementation (h) in

EIN,p,s,h means the net interactive effects for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e, worked out using equation 30. AF means the accuracy factor implementation (h) in sample (s) of population (p) for the reporting period worked out in accordance with section 26.

DF means the decay factor for the reporting period worked out using equation 8. (3) If:

where:

Ep_mod,p,s,h means the total modelled operating emissions for implementation (h) in

in sample (s) of population (p) in the reporting period (EIA,p,s,h), in tonnes CO2e, is worked out using the formula (equation 29):

where:

tonnes CO2e.

|EIA,p,s,h,u| means the absolute value of interactive effect (u) for implementation (h) in sample (s) of population (p) in the reporting period, in tonnes CO2e, worked out in accordance with section 25. (2) The net interactive effects for implementation (h) in sample (s) of population (p)

for the reporting period (EIN,p,s,h), in tonnes CO2e, is worked out using the formula (equation 30):

where:

EIN,p,s,h means the net interactive effects for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e.

EI,p,s,h,u means interactive effect (u) for implementation (h) in sample (s) of population (p) in the reporting period, in tonnes CO2e, worked out in accordance with section 25.

50 Modelled baseline emissions The total modelled baseline emissions for implementation (h) in sample (s) of

population (p) for the reporting period (Eb_mod,p,s,h), in tonnes CO2e, is worked out using the formula (equation 31):

where:

Eb_mod,p,s,h means the total modelled baseline emissions for implementation (h) in sample (s) of population (p) for the reporting period, in tonnes CO2e.

51 Baseline emissions model The total baseline emissions for implementation (h) in sample (s) of population (p) for measurement time interval (m) in the reporting period (Eb_mod,p,s,h,m), in tonnes CO2e, is modelled by entering the values of the independent variables (x x x ) measured in the measurement time interval into the baseline 1,b, 2,b,…, k,b emissions model for the sample (equation 32): where:

Section 63

tonnes CO2e.

∝b means the regression constant from the baseline emissions model.

52 Modelled operating emissions The total modelled operating emissions for implementation (h) for the reporting

period (Ep_mod,p,s,h), in tonnes CO2e, is worked out using the formula (equation 33):

where:

Ep_mod,p,s,h means the total modelled operating emissions for implementation (h)

for the reporting period, in tonnes CO2e.

Ep_mod,p,s,h,m means the total operating emissions for implementation (h) in sample (s) of population (p) for measurement time interval (m) in the reporting period, in

53 Operating emissions model The total operating emissions for implementation (h) in sample (s) of population (p) for measurement time interval (m) in the reporting period (Ep_mod,p,s,h,m), in

tonnes CO2e, is modelled by entering the values of the independent variables (x x x ) measured in the measurement time interval into the operating 1,p, 2,p,…, k,p emissions model for the sample for the measurement time interval (equation 34):

where:

Ep_mod,p,s,h,m means the total operating emissions for implementation (h) in sample (s) of population (p) for measurement time interval (m) in the reporting period, in

tonnes CO2e.

x1,p means the measured value of the independent variable x1 for measurement time interval (m). means the number of independent variables in the operating emissions model. k

∝p means the constant or fixed coefficient from the operating emissions model.

β1,p means the regression coefficient for independent variable x1 from the operating emissions model.

Section 63

Division 8—Measured emissions

54 Measured emissions (1) The total measured emissions from the consumption of relevant energy for an

implementation for a measurement time interval (m) (Emeas,h,m), in tonnes CO2e, is worked out using the formula (equation 35):

where:

Emeas,h,m means the total measured emissions from the consumption of relevant energy for implementation (h) for measurement time interval (m), in tonnes

EDIR,h,m means the total direct emissions from the combustion of fuel that is relevant energy for implementation (h) for measurement time interval (m), in

EIND,h,m means the total indirect emissions from the consumption of electricity that is relevant energy for implementation (h) for measurement time interval (m),

in tonnes CO2e, worked out using equation 38. (2) The total direct emissions from the combustion of fuel that is relevant energy for

implementation (h) for measurement time interval (m) (EDIR,h,m), in tonnes CO2e, is worked out using the formula (equation 36):

where:

EDIR,h,m means the total direct emissions from the combustion of fuel that is relevant energy for implementation (h) for measurement time interval (m), in

tonnes CO2e.

Eh,m,i,j means the total emissions from the combustion of fuel type (i) of greenhouse gas (j) that is relevant energy for implementation (h) for

measurement time interval (m), in tonnes CO2e, worked out using equation 37. (3) The total emissions from the combustion of fuel type (i) of greenhouse gas (j) that is relevant energy for implementation (h) for measurement time interval (m)

(Eh,m,i,j), in tonnes CO2e, is worked out using the formula (equation 37):

where:

Eh,m,i,j means the total emissions from the combustion of fuel type (i) of greenhouse gas (j) that is relevant energy for implementation (h) for

measurement time interval (m), in tonnes CO2e.

Qh,m,i means the total quantity of fuel type (i) combusted that is relevant energy for implementation (h) for measurement time interval (m), worked out in accordance with the monitoring requirements, in gigajoules (or other appropriate units).

ECi means the energy content factor of fuel type (i) estimated in accordance with Schedule 1 to the NGER (Measurement) Determination.

EFi,j means the emission factor for each greenhouse gas type (j) released due to the combustion of fuel type (i) that is relevant energy for implementation (h) for measurement time interval (m), estimated in accordance with Schedule 1 to the NGER (Measurement) Determination.

(4) However, if Qh,m,i is measured in gigajoules, then the value of ECi is taken to be 1. (5) The total indirect emissions from the consumption of electricity that is relevant energy for implementation (h) for measurement time interval (m), in tonnes

CO2e (EIND,h,m), is worked out using the formula (equation 38):

where:

EIND,h,m means the total indirect emissions from the consumption of electricity that is relevant energy for implementation (h) for measurement time interval (m),

in tonnes CO2e.

Qelec,h,m means the quantity of purchased electricity that is relevant energy for implementation (h) for measurement time interval (m), in kilowatt hours, worked out in accordance with the monitoring requirements.

EFelec means: (a) for electricity obtained from an electricity grid that is a grid in relation to which the NGA Factors document, in force on the day the project is declared to be an eligible offsets project, includes an emissions factor—that

factor, in kilograms CO2e per kilowatt hour (or its equivalent of tonnes CO2e per megawatt hours); or (b) for electricity obtained from an electricity grid not covered by paragraph (a) or obtained 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 day the project is declared to be an eligible offsets project—

that factor, in kilograms CO2e per kilowatt hour (or its equivalent of tonnes CO2e per megawatt hours); or

(ii) otherwise—the emissions factor, in kilograms CO2e per kilowatt hour (or its equivalent of tonnes CO2e per megawatt hours), for offgrid electricity included in the NGA Factors document in force on the day the project is declared to be an eligible offsets project.

Section 63

Part 5—Reporting, recordkeeping and monitoring requirements

Division 1—Offsets report requirements

55 Operation of this Division For paragraph 106(3)(a) of the Act, this Division sets out information that must be included in an offsets project report about an industrial fuel and energy efficiency project that is an eligible offsets project.

56 Offsets report requirements (1) The information referred to in subsection (2) is to be included in an offsets report for the project if the information is: (a) different from what has previously been provided to the Regulator (whether in an application for declaration of the project as an eligible offsets project or a previous offsets report or otherwise); or (b) the information has not been previously provided to the Regulator, (whether in an application for declaration of the project as an eligible offsets project or a previous offsets report or otherwise). (2) The information for the purposes of subsection (1) is the following: (a) details of an implementation undertaken during the reporting period; (b) the address of the site in relation to which an implementation was undertaken during the reporting period; (c) the submethod used for an implementation or a population in the reporting period; (d) the total modelled baseline emissions and baseline emissions model for an implementation, or a sample of a population, for the reporting period; (e) the total measured emissions from the consumption of relevant energy for an implementation covered by submethod 1, or an implementation in a sample of a population covered by submethod 3; (f) the total modelled operating emissions and the operating emissions model for an implementation covered by submethod 2, or a sample of a population covered by submethod 4, for the reporting period; (g) the relative precision of the emissions level predicted by the baseline emissions model for an implementation, or a sample of a population for the baseline measurement period, for the model; (h) the relative precision of the emissions level predicted by the operating emissions model for an implementation covered by submethod 2, or a sample of a population covered by submethod 4, for the operating measurement period for the model;

(i) the interactive effects for an implementation covered by submethod 1 or 2, or an implementation in a sample of a population covered by submethod 3 or 4.

Section 63

Division 2—Recordkeeping requirements

57 Operation of this Division For paragraph 106(3)(c) of the Act, this Division sets out recordkeeping requirements for an industrial fuel and energy efficiency project that is an eligible offsets project.

58 Recordkeeping requirements The project proponent must keep records about: (a) the consumption of fuel and electricity that is relevant energy for an implementation; and (b) the choice of implementations in a population for the sample of the population using a random selection method (including evidence of the day the sample was chosen).

Division 3—Monitoring requirements

59 Operation of this Division For paragraph 106(3)(d) of the Act, this Division sets out requirements to monitor an industrial fuel and energy efficiency project that is an eligible offsets project.

60 Monitoring requirements—general (1) The project proponent for an industrial fuel and energy efficiency project must monitor a parameter mentioned in the table in Schedule 1 in accordance with the requirements in that table. (2) Relevant energy for an implementation at a site must be monitored separately to other energy use at the site during: (a) for submethods 1 and 3—the baseline measurement period and the reporting period; and (b) for submethods 2 and 4—the baseline measurement period and the operating measurement period. (3) Project proponents may exclude any data for a parameter if the data: (a) is not within the typical distribution of measured values; or (b) does not represent the normal operating conditions of the equipment to which the parameter relates.

61 Monitoring requirements—submethod 1 If the emissions abated by an implementation is worked out under submethod 1 for a reporting period, the following must be measured or monitored during the baseline measurement period and the reporting period: (a) the consumption of relevant energy for the implementation; (b) independent variables for the implementation for the baseline emissions model; (c) site constants for the implementation for the baseline emissions model; (d) interactive effects for the implementation.

62 Monitoring requirements—submethod 2 (1) This section applies if the emissions abated by an implementation is worked out under submethod 2 for a reporting period. (2) The following must be measured or monitored during the baseline measurement period: (a) the consumption of relevant energy for the implementation;

Section 63 (b) independent variables for the implementation for the baseline emissions model; (c) site constants for the implementation for the baseline emissions model; (d) interactive effects for the implementation. (3) The following must be measured or monitored during the operating measurement period for the operating emissions model for the reporting period: (a) the consumption of relevant energy for the implementation; (b) independent variables for the implementation for the operating emissions model for the reporting period; (c) site constants for the implementation for the operating emissions model for the reporting period; (d) interactive effects for the implementation. (4) The following must be measured or monitored during the reporting period: (a) independent variables for the implementation for the baseline emissions model; (b) site constants for the implementation for the baseline emissions model; (c) independent variables for the implementation for the operating emissions model for the reporting period; (d) site constants for the implementation for the operating emissions model for the reporting period; (e) interactive effects for the implementation.

63 Monitoring requirements—submethod 3 (1) This section applies if the emissions abated by a population in a project is worked out under submethod 3 for a reporting period. (2) The following must be measured or monitored during the baseline measurement period and the reporting period: (a) the consumption of relevant energy for implementations in the sample of the population; (b) independent variables for the sample of the population for the baseline emissions model; (c) site constants for the sample of the population for the baseline emissions model; (d) interactive effects for implementations in the sample of the population.

64 Monitoring requirements—submethod 4 (1) This section applies if the emissions abated by a population in a project is worked out under submethod 4 for a reporting period. (2) The following must be measured or monitored during the baseline measurement period:

(a) the consumption of relevant energy for implementations in the sample of the population; (b) independent variables for the sample of the population for the baseline emissions model; (c) site constants for the sample of the population for the baseline emissions model; (d) interactive effects for implementations in the sample of the population. (3) The following must be measured or monitored during the operating measurement period for the operating emissions model for the population for the reporting period: (a) the consumption of relevant energy for implementations in the sample of the population; (b) independent variables for the sample of the population for the operating emissions model for the reporting period; (c) site constants for the sample of the population for the operating emissions model for the reporting period; (d) interactive effects for implementations in the sample of the population. (4) The following must be measured or monitored during the reporting period: (a) independent variables for the sample of the population for the baseline emissions model; (b) site constants for the sample of the population for the baseline emissions model; (c) independent variables for the sample of the population for the operating emissions model for the reporting period; (d) site constants for the sample of the population for the operating emissions model for the reporting period; (e) interactive effects for implementations in the sample of the population.

65 Monitoring requirements—independent variables and site constants The project proponent may measure the independent variables and site constants for an emissions model used for the purposes of Part 4: (a) directly; or (b) by using a proxy method that enables the value of the parameter to be reliably calculated. Note: An example of a proxy method is measuring the temperature and pressure of steam flow to calculate energy flow.

Monitored parameters Schedule 1

Clause 1 Schedule 1—Monitored parameters Note: See subsection 60(1).

1 Monitored parameters The following table sets out monitoring requirements for parameters.

Monitored Parameters Item Parameter Description Unit of monitoring MAccuracy Measurement Determination of requirements frequency parameter from measurements

1 Qelec,h,m The quantity of KWh MThe meter must: Throughout each Where multiple purchased I (a) comply with NMI measurement time measurements of a variable electricity that is document M6; and interval, at a frequency are taken in a measurement relevant energy (b) be calibrated in such that variance within time interval, the variable for accordance with the the measurement interval is worked out by implementation NGER is less than variance multiplying the average (h) for (Measurement) between intervals value of those measurement time Determination measurements during the interval (m) time interval by the period If measured using data of the time interval from the supplier of the electricity, the data must be calculated in accordance with: (a) the National Energy Retail Rules; or

Schedule 1 Monitored parameters

Clause 1 Monitored Parameters Item Parameter Description Unit of monitoring MAccuracy Measurement Determination of requirements frequency parameter from measurements (b) the law relating to electricity supply of the State or Territory in which the site is located

2 Qh,m,i, where The total quantity GJ (or other appropriate units) MThe measuring Throughout each Where multiple (i) is gaseous of gaseous fuel equipment must: measurement time measurements of a variable fuel combusted that is (a) comply with NMI interval, at: are taken in a measurement relevant energy document R137; (a) a frequency such that time interval, the variable for and variance within the is worked out by implementation (b) be calibrated in measurement interval multiplying the average (h) for accordance with the is less than variance value of those measurement time NGER between intervals; measurements during the interval (m) (Measurement) and time interval by the period Determination (b) a frequency that of the time interval If measured using data meets or exceeds the from the supplier of the requirements in fuel, the data must be Schedule 2 to the calculated in NGER accordance with: (Measurement) Determination (a) the National Energy Retail Rules; or If Qi is measured for a population, the frequency (b) the law relating to must be the same for natural gas supply each site in the sample of of the State or the population Territory in which

Clause 1 Monitored Parameters Item Parameter Description Unit of monitoring MAccuracy Measurement Determination of requirements frequency parameter from measurements the site is located

3 Qh,m,i, where The total quantity GJ (or other appropriate units) MThe measuring Throughout each Where multiple (i) is liquid of liquid fuel equipment must be measurement time measurements of a variable fuel combusted that is calibrated in interval, at a frequency are taken in a measurement relevant energy accordance with the such that variance within time interval, the variable for NGER (Measurement) the measurement interval is worked out by implementation Determination is less than variance multiplying the average (h) for between intervals value of those measurement time measurements during the interval (m) time interval by the period of the time interval

4 Qh,m,i, where The total quantity GJ (or other appropriate units) MThe measuring Throughout each Where multiple (i) is solid of solid fuel (a) equipment must be measurement time measurements of a variable fuel combusted that is (b) calibrated in interval, at a frequency are taken in a measurement relevant energy accordance with the such that variance within time interval, the variable for NGER (Measurement) the measurement interval is worked out by implementation Determination is less than variance multiplying the average (h) for between intervals value of those measurement time measurements during the interval (m) time interval by the period of the time interval 5 Independent See section 23 Appropriate units MThe measuring Throughout each Where multiple variables (a) equipment must be measurement time measurements of a variable (b) calibrated in interval, at a frequency are taken in a measurement accordance with the such that variance within time interval, the variable

Schedule 1 Monitored parameters

Clause 1 Monitored Parameters Item Parameter Description Unit of monitoring MAccuracy Measurement Determination of requirements frequency parameter from measurements NGER (Measurement) the measurement interval is the average value of Determination is less than variance those measurements during between intervals the time interval 6 Site See section 24 Appropriate units MThe measuring Throughout each constants (a) equipment must be measurement time (b) calibrated in interval, at a frequency accordance with the such that variance within NGER (Measurement) the measurement interval Determination is less than variance between intervals

Section 1