EXPOSURE DRAFT
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
EXPOSURE DRAFT
EXPOSURE DRAFT
Contents
Part 1—Preliminary
1
2
3
4
5
6
7
1
Name ........................................................................................................................... 1
Commencement .......................................................................................................... 1
Authority ..................................................................................................................... 1
Duration ...................................................................................................................... 1
Definitions .................................................................................................................. 1
Meaning of implementation ........................................................................................ 3
Meaning of relevant energy ........................................................................................ 4
Part 2—Industrial fuel and energy efficiency project
8
5
Industrial fuel and energy efficiency project ............................................................... 5
Part 3—Project requirements
9
10
11
12
6
Operation of this Part .................................................................................................. 6
Declaration requirements ............................................................................................ 6
Implementations must be as described in application ................................................. 6
No limiting output or services provided by equipment ............................................... 6
Part 4—Net abatement amount
7
Division 1—Preliminary
13
14
15
7
Operation of this Part .................................................................................................. 7
Overview of gases accounted for in abatement calculations ....................................... 7
References to factors and parameters from external sources ....................................... 7
Division 2—Method for calculating net abatement amount
16
17
8
Carbon dioxide equivalent net abatement amount ...................................................... 8
Using a sub-method .................................................................................................... 8
Division 3—Requirements for emissions models
18
19
20
21
22
23
24
25
26
27
10
General requirements .................................................................................................10
Minimum statistical requirements ..............................................................................10
Requirements for baseline emissions models .............................................................11
Requirements for operating emissions models ...........................................................12
Baseline measurement period and operating measurement period .............................13
Independent variables ................................................................................................13
Site constants .............................................................................................................14
Interactive effects .......................................................................................................14
Accuracy factor ..........................................................................................................15
Decay factor ...............................................................................................................18
Division 4—Implementation using measured emissions—sub-method 1
28
29
30
31
32
20
Emissions abated........................................................................................................20
Interactive effects .......................................................................................................21
Modelled baseline emissions .....................................................................................21
Baseline emissions model ..........................................................................................22
Measured emissions ...................................................................................................22
Division 5—Implementation using operating emissions model—sub-method 2
33
34
35
36
23
Emissions abated........................................................................................................23
Interactive effects .......................................................................................................24
Modelled baseline emissions .....................................................................................24
Baseline emissions model ..........................................................................................25
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
i
EXPOSURE DRAFT
37
38
Modelled operating emissions....................................................................................25
Operating emissions model ........................................................................................25
Division 6—Sample using measured emissions—sub-method 3
39
40
41
42
43
44
45
27
Emissions abated by population .................................................................................27
Emissions abated by sample ......................................................................................27
Emissions abated by implementation .........................................................................27
Interactive effects .......................................................................................................29
Modelled baseline emissions .....................................................................................29
Baseline emissions model ..........................................................................................30
Measured emissions ...................................................................................................30
Division 7—Sample using operating emissions model—sub-method 4
46
47
48
49
50
51
52
53
31
Emissions abated by population .................................................................................31
Emissions abated by sample ......................................................................................31
Emissions abated by implementation .........................................................................31
Interactive effects .......................................................................................................33
Modelled baseline emissions .....................................................................................33
Baseline emissions model ..........................................................................................34
Modelled operating emissions....................................................................................34
Operating emissions model ........................................................................................34
Division 8—Measured emissions
54
36
Measured emissions ...................................................................................................36
Part 5—Reporting, record-keeping and monitoring requirements
38
Division 1—Offsets report requirements
55
56
38
Operation of this Division ..........................................................................................38
Offsets report requirements ........................................................................................38
Division 2—Record-keeping requirements
57
58
39
Operation of this Division ..........................................................................................39
Record-keeping requirements ....................................................................................39
Division 3—Monitoring requirements
59
60
61
62
63
64
65
40
Operation of this Division ..........................................................................................40
Monitoring requirements—general ............................................................................40
Monitoring requirements—sub-method 1 ..................................................................40
Monitoring requirements—sub-method 2 ..................................................................40
Monitoring requirements—sub-method 3 ..................................................................41
Monitoring requirements—sub-method 4 ..................................................................41
Monitoring requirements—independent variables and site constants ........................42
Schedule 1—Monitored parameters
1
ii
43
Monitored parameters ................................................................................................43
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Preliminary Part 1
Section 1
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.
Note:
Total measured emissions from the consumption of relevant energy for an
implementation is worked out using equation 35.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
1
EXPOSURE DRAFT
Part 1 Preliminary
Section 5
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 6-1 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).
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).
2
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Preliminary Part 1
Section 6
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.
sub-method means one of the sub-methods 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.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
3
EXPOSURE DRAFT
Part 1 Preliminary
Section 7
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 co-metered equipment) in the time
period—the co-metered 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:
4
The emissions abated by an implementation is calculated using the sub-methods in
Part 4.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Industrial fuel and energy efficiency project Part 2
Section 8
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.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
5
EXPOSURE DRAFT
Part 3 Project requirements
Section 9
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 sub-methods 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:
6
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.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Preliminary Division 1
Section 13
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
calculation
Emissions source
Greenhouse gas
1
Baseline emissions for an
implementation or sample of
a population
Direct emissions
Carbon dioxide (CO2)
Baseline emissions for an
implementation or sample of
a population
Indirect emissions
Operating emissions or
measured emissions for an
implementation or sample of
a population
Direct emissions
Operating emissions or
measured emissions for an
implementation or sample of
a population
Indirect emissions
2
3
4
Methane (CH4)
Nitrous oxide (N2O)
Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
Carbon dioxide (CO2)
Methane (CH4)
Nitrous oxide (N2O)
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.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
7
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 2 Method for calculating net abatement amount
Section 16
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 CO2-e, is worked out using the formula (equation 1):
A net =
A
+
h
h
A
p
p
where:
Anet means the carbon dioxide equivalent net abatement amount for the reporting
period, in tonnes CO2-e.
Ah means the emissions abated by implementation (h) in the project for the
reporting period, in tonnes CO2-e, worked out using sub-methods 1 and 2.
Ap means the emissions abated by population (p) in the project for the reporting
period, in tonnes CO2-e, worked out using sub-methods 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 sub-method
(1) For each implementation that is in the project the project proponent must choose
one sub-method to work out the emissions abated by the implementation.
(2) Subject to subsection (3), the sub-method 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 sub-method 2 has been used to work out the emissions abated by the
implementation in a reporting period, the project proponent may use sub-method
1 for all subsequent reporting periods.
Sample and population
(4) If the project proponent chooses sub-method 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:
8
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Method for calculating net abatement amount Division 2
Section 17
(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 sub-method 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 sub-method.
(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
sub-method; and
(b) if a parameter is measured or observed in a measurement time interval that
is shorter than the measurement time interval for the sub-method—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 sub-method.
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 sub-method.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
9
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 3 Requirements for emissions models
Section 18
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 t-statistic that is greater
than the value for the t-distribution at the 97.5% single-sided confidence
level for the number of degrees of freedom in the regression (equivalent to
95% confidence in a two-sided 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%.
10
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Requirements for emissions models Division 3
Section 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):
RPE,h,mod =
t  SE E,h
Eh
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 sub-method 1—the emissions level for implementation (h) predicted by
the emissions model for the baseline measurement period; and
(b) for sub-method 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 sub-method 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 sub-method 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.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
11
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 3 Requirements for emissions models
Section 21
(2) If a site constant is an independent variable for a baseline emissions model used
for the purposes of sub-method 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 sub-method 1 or 2; and
(b) the sample of each population covered by sub-method 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 sub-method 2; and
(b) the sample of each population covered by sub-method 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:
12
The updated model will be based on a new operating measurement period.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Requirements for emissions models Division 3
Section 22
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 sub-method 1 or
2—the date the implementation commences; and
(b) for a baseline emissions model used for the purposes of sub-method 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 sub-method 1 or
2—the date the implementation commences; and
(b) for a baseline emissions model used for the purposes of sub-method 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 sub-method 2—
a day after the implementation has been completed; and
(b) for an operating emissions model used for the purposes of sub-method 4—
a day after all the implementations in the sample of the population have
been completed.
23 Independent variables
(1) A parameter is an independent variable for an implementation if it:
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
13
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 3 Requirements for emissions models
Section 24
(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 non-linear function of itself
or another independent variable.
(4) A site constant may be an independent variable for the purposes of sub-methods
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
14
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Requirements for emissions models Division 3
Section 26
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 sub-methods 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
emissions abated by
implementation (h) in the
reporting period at 95%
confidence level
Accuracy factor
1
less than 25%
2
25% to 50%
0.9
3
50% to 75%
0.8
4
75% to 100%
0.6
5
100% to 150%
0.4
6
150% to 200%
0.2
7
greater than 200%
1
0
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
15
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 3 Requirements for emissions models
Section 26
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):
RPA,h =
t  SE A,h
Ah
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 sub-methods 1 and 3—using equation 4; and
(b) for sub-methods 2 and 4—using equation 5.
Ah means the emissions abated by the implementation (h) for the reporting
period worked out:
(a) for sub-methods 1 and 3—using equation 6; and
(b) for sub-methods 2 and 4—using equation 7.
Standard error for sub-methods 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):
SE A,h =
SE b,h 2 +
u 2h,i
n
i
h,i
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 sub-methods 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):
16
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Requirements for emissions models Division 3
Section 26
SE A,h =
SE b,h 2 + SE p,h 2
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—sub-methods 1 and 3
(5) The emissions abated by the implementation (h) for the reporting period (Ah) is
worked out using the formula (equation 6):


Ah =  E b_mod,h - E meas,h + E IN,h 


where:
Ah means the emissions abated by implementation (h) for the reporting period, in
tonnes CO2-e.
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out:
(a) for sub-method 1—using equation 11; and
(b) for sub-method 3—using equation 24.
Note:
Eb_mod,h is Eb_mod,p,s,h in sub-method 3.
Emeas,h means the total measured emissions from the consumption of relevant
energy for implementation (h) for the reporting period, in tonnes CO2-e, worked
out:
(a) for sub-method 1—using equation 13; and
(b) for sub-method 3—using equation 26.
Note:
Emeas,h is Emeas,p,s,h in sub-method 3.
EIN,h means the net interactive effects for implementation (h) for the reporting
period, in tonnes CO2-e, worked out:
(a) for sub-method 1—using equation 10; and
(b) for sub-method 3—using equation 23.
Note:
EIN,h is EIN,p,s,h in sub-method 3.
Emissions abated—sub-methods 2 and 4
(6) The emissions abated by the implementation (h) for the reporting period (Ah) is
worked out using the formula (equation 7):


Ah =  E b_mod,h - E p_mod,h + E IN,h 


Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
17
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 3 Requirements for emissions models
Section 27
where:
Ah means the emissions abated by implementation (h) for the reporting period, in
tonnes CO2-e.
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out:
(a) for sub-method 2—using equation 16; and
(b) for sub-method 4—using equation 31.
Note:
Eb_mod,h is Eb_mod,p,s,h in sub-method 4.
Ep_mod,h means the total modelled operating emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out:
(a) for sub-method 2—using equation 18; and
(b) for sub-method 4—using equation 33.
Note:
Ep_mod,h is Ep_mod,p,s,h in sub-method 4.
EIN,h means the net interactive effects for implementation (h) for the reporting
period, in tonnes CO2-e, worked out:
(a) for sub-method 2—using equation 15; and
(b) for sub-method 4—using equation 30.
Note:
EIN,h is EIN,p,s,h in sub-method 4.
27 Decay factor
(1) The decay factor for a reporting period (DF) is worked out using the formula
(equation 8):


  DC y  n MI,h,y 
y

DF = 
n MI,h
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).
18
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Requirements for emissions models Division 3
Section 27
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
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
19
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 4 Implementation using measured emissions—sub-method 1
Section 28
Division 4—Implementation using measured emissions—sub-method
1
28 Emissions abated
(1) The emissions abated by implementation (h) in the project for the reporting
period (Ah), in tonnes CO2-e, is worked out using subsections (2) and (3).
(2) If:


E IA,h  0.1 ×  E b_mod,h - E meas,h 


then:


Ah =  E b_mod,h - E meas,h + E IN,h  × AF


where:
EIA,h means the sum of the absolute values of the interactive effects for
implementation (h) in the reporting period, in tonnes CO2-e, worked out using
equation 9.
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e, 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 CO2-e, worked
out using equation 13.
Ah means the emissions abated by implementation (h) for the reporting period, in
tonnes CO2-e.
EIN,h means the net interactive effects for implementation (h) for the reporting
period, in tonnes CO2-e, 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:


E IA,h  0.1 ×  E b_mod,h - E meas,h 


then:
Ah = 0
EIA,h means the sum of the absolute values of the interactive effects for
implementation (h) in the reporting period, in tonnes CO2-e, worked out using
equation 9.
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out using equation 11.
20
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Implementation using measured emissions—sub-method 1 Division 4
Section 29
Emeas,h means the total measured emissions from the consumption of relevant
energy for implementation (h) for the reporting period, in tonnes CO2-e, worked
out using equation 13.
Ah means the emissions abated by implementation (h) for the reporting period, in
tonnes CO2-e.
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 CO2-e, is worked out using the formula
(equation 9):
E IA,h 
E
I,h,u
u
where:
EIA,h means the sum of the absolute values of the interactive effects for
implementation (h) in the reporting period, in tonnes CO2-e.
|EI,h,u| means the absolute value of interactive effect (u) for implementation (h)
in the reporting period, in tonnes CO2-e, worked out in accordance with
section 25.
(2) The net interactive effects for implementation (h) for the reporting period (EIN,h),
in tonnes CO2-e, is worked out using the formula (equation 10):
E IN,h 
E
I,h,u
u
where:
EIN,h means the net interactive effects for implementation (h) for the reporting
period, in tonnes CO2-e.
EI,h,u means interactive effect (u) for implementation (h) in the reporting period,
in tonnes CO2-e, 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 CO2-e, is worked out using the formula (equation 11):
E b_mod,h 
E
b_mod,h,m
m
where:
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e.
Eb_mod,h,m means the total baseline emissions for implementation (h) for
measurement time interval (m) in the reporting period, in tonnes CO2-e,
modelled under section 31.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
21
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 4 Implementation using measured emissions—sub-method 1
Section 31
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 CO2-e, is modelled by
entering the values of the independent variables (x1,b, x2,b,…,xk,b) measured in the
measurement time interval into the baseline emissions model for the
implementation (equation 12):


E b_mod,h,m = f  x1,b ,x 2,b ,...,x k,b  h,m =  b + β1,b x1,b + β 2,b x 2,b +  + β k,b x k,b  h,m


where:
Eb_mod,h,m means the total baseline emissions for implementation (h) for
measurement time interval (m) in the reporting period, in tonnes CO2-e.
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.
∝b means the regression constant from the baseline emissions model.
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 CO2-e, is worked
out using the formula (equation 13):
E meas,h 
E
meas,h,m
m
where:
Emeas,h means the total measured emissions from the consumption of relevant
energy for implementation (h) for the reporting period, in tonnes CO2-e.
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 CO2-e, worked out using equation 35.
22
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Implementation using operating emissions model—sub-method 2 Division 5
Section 33
Division 5—Implementation using operating emissions model—
sub-method 2
33 Emissions abated
(1) The emissions abated by implementation (h) in the project for the reporting
period (Ah), in tonnes CO2-e, is worked out using subsections (2) and (3).
(2) If:


E IA,h  0.1 ×  E b_mod,h - E p_mod,h 


then:


Ah =  E b_mod,h - E p_mod,h + E IN,h  × AF × DF


where:
EIA,h means the sum of the absolute values of the interactive effects for
implementation (h) in the reporting period, in tonnes CO2-e, worked out using
equation 14.
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out using equation 16.
Ep_mod,h means the total modelled operating emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out using equation 18.
Ah means the emissions abated by implementation (h) for the reporting period, in
tonnes CO2-e.
EIN,h means the net interactive effects for implementation (h) for the reporting
period, in tonnes CO2-e, 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:


E IA,h  0.1 ×  E b_mod,h - E p_mod,h 


then:
Ah = 0
where:
EIA,h means the sum of the absolute values of the interactive effects for
implementation (h) in the reporting period, in tonnes CO2-e, worked out using
equation 14.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
23
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 5 Implementation using operating emissions model—sub-method 2
Section 34
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out using equation 16.
Ep_mod,h means the total modelled operating emissions for implementation (h) for
the reporting period, in tonnes CO2-e, worked out using equation 18.
Ah means the emissions abated by implementation (h) for the reporting period, in
tonnes CO2-e.
34 Interactive effects
(1) The sum of the absolute values of the interactive effects for implementation (h)
in the reporting period (EIA,h), in tonnes CO2-e, is worked out using the formula
(equation 14):
E IA,h 
E
I,h,u
u
where:
EIA,h means the sum of the absolute values of the interactive effects for
implementation (h) in the reporting period, in tonnes CO2-e.
|EI,h,u| means the absolute value of interactive effect (u) for implementation (h)
in the reporting period, in tonnes CO2-e, worked out in accordance with
section 25.
(2) The net interactive effects for implementation (h) for the reporting period (EIN,h),
in tonnes CO2-e, is worked out using the formula (equation 15):
E IN,h 
E
I,h,u
u
where:
EIN,h means the net interactive effects for implementation (h) for the reporting
period, in tonnes CO2-e.
EI,h,u means interactive effect (u) for implementation (h) in the reporting period,
in tonnes CO2-e, 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 CO2-e, is worked out using the formula (equation 16):
E b_mod,h 
E
b_mod,h,m
m
where:
Eb_mod,h means the total modelled baseline emissions for implementation (h) for
the reporting period, in tonnes CO2-e.
24
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Implementation using operating emissions model—sub-method 2 Division 5
Section 36
Eb_mod,h,m means the total baseline emissions for implementation (h) for
measurement time interval (m) in the reporting period, in tonnes CO2-e,
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 CO2-e, is modelled by
entering the values of the independent variables (x1,b, x2,b,…,xk,b) measured in the
measurement time interval into the baseline emissions model for the
implementation (equation 17):


E b_mod,h,m = f  x1,b ,x 2,b ,...,x k,b  h,m =  b + β1,b x1,b + β 2,b x 2,b +  + β k,b x k,b  h,m


where:
Eb_mod,h,m means the total baseline emissions for implementation (h) for
measurement time interval (m) in the reporting period, in tonnes CO2-e.
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.
∝b means the regression constant from the baseline emissions model.
β1,b means the regression coefficient for independent variable x1 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 CO2-e, is worked out using the formula (equation 18):
E p_mod,h 
E
p_mod,h,m
m
where:
Ep_mod,h means the total modelled operating emissions for implementation (h) for
the reporting period, in tonnes CO2-e.
Ep_mod,h,m means the total operating emissions for implementation (h) for
measurement time interval (m) in the reporting period, in tonnes CO2-e,
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 CO2-e, is modelled by
entering the values of the independent variables (x1,p, x2,p,…,xk,p ) measured in the
measurement time interval into the operating emissions model for the
implementation for the measurement time interval (equation 19):
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
25
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 5 Implementation using operating emissions model—sub-method 2
Section 38


E p_mod,h,m = f  x1,p ,x 2,p ,...,x k,p  h,m =  p + β1,p x1,p + β 2,p x 2,p +  + β k,p x k,p  h,m


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
CO2-e.
x1,p means the measured value of the independent variable x1 in measurement
time interval (m).
k means the number of independent variables in the operating emissions model.
∝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.
26
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Sample using measured emissions—sub-method 3 Division 6
Section 39
Division 6—Sample using measured emissions—sub-method 3
39 Emissions abated by population
The emissions abated by population (p) in the project for the reporting period
(Ap), in tonnes CO2-e, is worked out using the formula (equation 20):
A p = A p,s ×
Np
n p,s
where:
Ap means the emissions abated by population (p) in the project for the reporting
period, in tonnes CO2-e.
Ap,s means the emissions abated by sample (s) of population (p) for the reporting
period, in tonnes CO2-e, worked out using equation 21.
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 CO2-e, is worked out using the formula (equation 21):
A p,s 
A
p,s,h
h
where:
Ap,s means the emissions abated by sample (s) of population (p) for the reporting
period, in tonnes CO2-e.
Ap,s,h means the emissions abated by implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e, 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 CO2-e, is worked out using subsections (2)
and (3).
(2) If:


E IA,p,s,h  0.1 ×  E b_mod,p,s,h - E meas,p,s,h 


then:
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
27
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 6 Sample using measured emissions—sub-method 3
Section 41


Ap,s,h =  E b_mod,p,s,h - E meas,p,s,h + E IN,p,s,h  × AF


where:
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 CO2-e, 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 CO2-e, 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
period, in tonnes CO2-e, worked out using equation 26.
Ap,s,h means the emissions abated by implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e.
EIN,p,s,h means the net interactive effects for implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e, 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:


E IA,p,s,h  0.1 ×  E b_mod,p,s,h - E meas,p,s,h 


then:
A p,s,h = 0
where:
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 CO2-e, 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 CO2-e, 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
period, in tonnes CO2-e, worked out using equation 26.
Ap,s,h means the emissions abated by implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e.
28
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Sample using measured emissions—sub-method 3 Division 6
Section 42
42 Interactive effects
(1) The sum of the absolute values of the interactive effects for implementation (h)
in sample (s) of population (p) in the reporting period (EIA,p,s,h), in tonnes CO2-e,
is worked out using the formula (equation 22):
E IA,p,s,h 
E
IA,p,s,h,u
u
where:
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 CO2-e.
|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 CO2-e,
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 CO2-e, is worked out using the
formula (equation 23):
E IN,p,s,h 
E
I,p,s,h,u
u
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 CO2-e.
EI,p,s,h,u means interactive effect (u) for implementation (h) in sample (s) of
population (p) in the reporting period, in tonnes CO2-e, 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 CO2-e, is worked
out using the formula (equation 24):
E b_mod,p,s,h 
E
b_mod,p,s,h,m
m
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 CO2-e.
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 CO2-e, modelled under section 44.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
29
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 6 Sample using measured emissions—sub-method 3
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 CO2-e, is modelled by entering the values of the independent variables
(x1,b, x2,b,…,xk,b) measured in the measurement time interval into the baseline
emissions model for the sample (equation 25):


E b_mod,p,s,h,m = f  x1,b ,x 2,b ,...,x k,b  p,s,h,m =  b + β1,b x1,b + β 2,b x 2,b +  + β k,b x k,b  p,s,h,m


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 CO2-e.
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.
∝b means the regression constant from the baseline emissions model.
β1,b means the regression coefficient for independent variable x1 from the
baseline emissions model.
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 CO2-e, is worked out using the formula (equation 26):
E meas,p,s,h 
E
meas,p,s,h,m
m
where:
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
period, in tonnes CO2-e.
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 CO2-e, worked out using
equation 35.
30
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Sample using operating emissions model—sub-method 4 Division 7
Section 46
Division 7—Sample using operating emissions model—sub-method 4
46 Emissions abated by population
The emissions abated by population (p) in the project for the reporting period
(Ap), in tonnes CO2-e, is worked out using the formula (equation 27):
A p = A p,s ×
Np
n p,s
where:
Ap means the emissions abated by population (p) in the project for the reporting
period, in tonnes CO2-e.
Ap,s means the emissions abated by sample (s) of population (p) for the reporting
period, in tonnes CO2-e, worked out using equation 28.
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 CO2-e, is worked out using the formula (equation 28):
A p,s 
A
p,s,h
h
where:
Ap,s means the emissions abated by sample (s) of population (p) for the reporting
period, in tonnes CO2-e.
Ap,s,h means the emissions abated by implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e, 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 CO2-e, is worked out using subsections (2)
and (3).
(2) If:


E IA,p,s,h  0.1 ×  E b_mod,p,s,h - E p_mod,p,s,h 


then:
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
31
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 7 Sample using operating emissions model—sub-method 4
Section 48


Ap,s,h =  Eb_mod,p,s,h - Ep_mod,p,s,h + EIN,p,s,h  × AF × DF


where:
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 CO2-e, worked out using equation 29.
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 CO2-e, worked
out using equation 31.
Ep_mod,p,s,h means the total modelled operating emissions for implementation (h)
in sample (s) of population (p) for the reporting period, in tonnes CO2-e, worked
out using equation 33.
Ap,s,h means the emissions abated by implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e.
EIN,p,s,h means the net interactive effects for implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e, 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:


E IA,p,s,h  0.1 ×  E b_mod,p,s,h - E p_mod,p,s,h 


then:
A p,s,h = 0
where:
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 CO2-e, worked out using equation 29.
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 CO2-e, worked
out using equation 31.
Ep_mod,p,s,h means the total modelled operating emissions for implementation (h)
in sample (s) of population (p) for the reporting period, in tonnes CO2-e, worked
out using equation 33.
Ap,s,h means the emissions abated by implementation (h) in sample (s) of
population (p) for the reporting period, in tonnes CO2-e.
32
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Sample using operating emissions model—sub-method 4 Division 7
Section 49
49 Interactive effects
(1) The sum of the absolute values of the interactive effects for implementation (h)
in sample (s) of population (p) in the reporting period (EIA,p,s,h), in tonnes CO2-e,
is worked out using the formula (equation 29):
E IA,p,s,h 
E
IA,p,s,h,u
u
where:
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 CO2-e.
|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 CO2-e,
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 CO2-e, is worked out using the
formula (equation 30):
E IN,p,s,h 
E
I,p,s,h,u
u
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 CO2-e.
EI,p,s,h,u means interactive effect (u) for implementation (h) in sample (s) of
population (p) in the reporting period, in tonnes CO2-e, 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 CO2-e, is worked
out using the formula (equation 31):
E b_mod,p,s,h 
E
b_mod,p,s,h,m
m
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 CO2-e.
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 CO2-e, modelled under section 51.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
33
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 7 Sample using operating emissions model—sub-method 4
Section 51
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 CO2-e, is modelled by entering the values of the independent variables
(x1,b, x2,b,…,xk,b ) measured in the measurement time interval into the baseline
emissions model for the sample (equation 32):


E b_mod,p,s,h,m = f  x1,b ,x 2,b ,...,x k,b  p,s,h,m =  b + β1,b x1,b + β 2,b x 2,b +  + β k,b x k,b  p,s,h,m


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 the reporting period, in
tonnes CO2-e.
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.
∝b means the regression constant from the baseline emissions model.
β1,b means the regression coefficient for independent variable x1 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 CO2-e, is worked out using the formula (equation
33):
E p_mod,p,s,h 
E
p_mod,p,s,h,m
m
where:
Ep_mod,p,s,h means the total modelled operating emissions for implementation (h)
for the reporting period, in tonnes CO2-e.
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 CO2-e, modelled under section 53.
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 CO2-e, is modelled by entering the values of the independent variables
(x1,p, x2,p,…,xk,p ) measured in the measurement time interval into the operating
emissions model for the sample for the measurement time interval (equation 34):
34
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Sample using operating emissions model—sub-method 4 Division 7
Section 53


E p_mod,p,s,h,m = f  x1,p ,x 2,p ,...,x k,p  =  p + β1,p x1,p + β 2,p x 2,p +  + β k,p x k,p  p,s,h,m


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 CO2-e.
x1,p means the measured value of the independent variable x1 for measurement
time interval (m).
k means the number of independent variables in the operating emissions model.
∝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.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
35
EXPOSURE DRAFT
Part 4 Net abatement amount
Division 8 Measured emissions
Section 54
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 CO2-e,
is worked out using the formula (equation 35):
E meas,h,m = E DIR,h,m + E IND,h,m
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
CO2-e.
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 CO2-e, worked out using equation 36.
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 CO2-e, 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
CO2-e, is worked out using the formula (equation 36):
E DIR,h,m =
 E
i
h.m.i,j
j
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 CO2-e.
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 CO2-e, 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 CO2-e, is worked out using the formula (equation 37):
E h,m,i,j =
Qh,m,i × ECi × EFi,j
1000
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 CO2-e.
36
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Net abatement amount Part 4
Measured emissions Division 8
Section 54
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
CO2-e (EIND,h,m), is worked out using the formula (equation 38):
E IND,h,m = Qelec,h,m ×
EFelec
1000
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 CO2-e.
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 CO2-e per kilowatt hour (or its equivalent of tonnes
CO2-e 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 CO2-e per kilowatt hour (or its equivalent of
tonnes CO2-e per megawatt hours); or
(ii) otherwise—the emissions factor, in kilograms CO2-e per kilowatt
hour (or its equivalent of tonnes CO2-e per megawatt hours), for
off-grid electricity included in the NGA Factors document in force on
the day the project is declared to be an eligible offsets project.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
37
EXPOSURE DRAFT
Part 5 Reporting, record-keeping and monitoring requirements
Division 1 Offsets report requirements
Section 55
Part 5—Reporting, record-keeping 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 sub-method 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 sub-method 1, or an implementation in a
sample of a population covered by sub-method 3;
(f) the total modelled operating emissions and the operating emissions model
for an implementation covered by sub-method 2, or a sample of a
population covered by sub-method 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 sub-method 2, or a
sample of a population covered by sub-method 4, for the operating
measurement period for the model;
(i) the interactive effects for an implementation covered by sub-method 1 or 2,
or an implementation in a sample of a population covered by sub-method 3
or 4.
38
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Reporting, record-keeping and monitoring requirements Part 5
Record-keeping requirements Division 2
Section 57
Division 2—Record-keeping requirements
57 Operation of this Division
For paragraph 106(3)(c) of the Act, this Division sets out record-keeping
requirements for an industrial fuel and energy efficiency project that is an
eligible offsets project.
58 Record-keeping 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).
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
39
EXPOSURE DRAFT
Part 5 Reporting, record-keeping and monitoring requirements
Division 3 Monitoring requirements
Section 59
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 sub-methods 1 and 3—the baseline measurement period and the
reporting period; and
(b) for sub-methods 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—sub-method 1
If the emissions abated by an implementation is worked out under sub-method 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—sub-method 2
(1) This section applies if the emissions abated by an implementation is worked out
under sub-method 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;
(b) independent variables for the implementation for the baseline emissions
model;
(c) site constants for the implementation for the baseline emissions model;
40
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
Reporting, record-keeping and monitoring requirements Part 5
Monitoring requirements Division 3
Section 63
(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—sub-method 3
(1) This section applies if the emissions abated by a population in a project is
worked out under sub-method 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—sub-method 4
(1) This section applies if the emissions abated by a population in a project is
worked out under sub-method 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;
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
41
EXPOSURE DRAFT
Part 5 Reporting, record-keeping and monitoring requirements
Division 3 Monitoring requirements
Section 65
(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:
42
An example of a proxy method is measuring the temperature and pressure of steam
flow to calculate energy flow.
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
EXPOSURE DRAFT
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
Manner of
monitoring
Accuracy
requirements
Measurement
frequency
Determination of
parameter from
measurements
1
Qelec,h,m
The quantity of
purchased
electricity that is
relevant energy
for
implementation
(h) for
measurement time
interval (m)
KWh
Measured using a
commercial grade
electricity meter
The meter must:
(a) comply with NMI
document M6; and
(b) be calibrated in
accordance with the
NGER
(Measurement)
Determination
Throughout each
measurement time
interval, at a frequency
such that variance within
the measurement interval
is less than variance
between intervals
Where multiple
measurements of a variable
are taken in a measurement
time interval, the variable
is worked out by
multiplying the average
value of those
measurements during the
time interval by the period
of the time interval
If measured in
gigajoules, the quantity
of megawatt hours is
calculated by dividing
the amount in
gigajoules by the
conversion factor of
3.6
If measured using data
from the supplier of the
electricity, the data
must be calculated in
accordance with:
(a) the National Energy
Retail Rules; or
(b) the law relating to
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
43
EXPOSURE DRAFT
EXPOSURE DRAFT
Schedule 1 Monitored parameters
Clause 1
Monitored Parameters
Item
Parameter
Description
Unit of
monitoring
Manner of
monitoring
Accuracy
requirements
Measurement
frequency
Determination of
parameter from
measurements
Throughout each
measurement time
interval, at:
(a) a frequency such that
variance within the
measurement interval
is less than variance
between intervals;
and
(b) a frequency that
meets or exceeds the
requirements in
Schedule 2 to the
NGER
(Measurement)
Determination
Where multiple
measurements of a variable
are taken in a measurement
time interval, the variable
is worked out by
multiplying the average
value of those
measurements during the
time interval by the period
of the time interval
electricity supply of
the State or
Territory in which
the site is located
2
Qh,m,i, where
(i) is gaseous
fuel
The total quantity
of gaseous fuel
combusted that is
relevant energy
for
implementation
(h) for
measurement time
interval (m)
GJ (or other
appropriate
units)
Measured using gas
measuring equipment
(including flow
devices) in accordance
with Part 2.3 of the
NGER (Measurement)
Determination
The measuring
equipment must:
(a) comply with NMI
document R137;
and
(b) be calibrated in
accordance with the
NGER
(Measurement)
Determination
If measured using data
from the supplier of the
fuel, the data must be
calculated in
accordance with:
(a) the National Energy
Retail Rules; or
(b) the law relating to
natural gas supply
of the State or
Territory in which
the site is located
44
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
If Qi is measured for a
population, the frequency
must be the same for
each site in the sample of
the population
EXPOSURE DRAFT
Monitored parameters Schedule 1
Clause 1
Monitored Parameters
Item
Parameter
Description
Unit of
monitoring
Manner of
monitoring
Accuracy
requirements
Measurement
frequency
Determination of
parameter from
measurements
3
Qh,m,i, where
(i) is liquid
fuel
The total quantity
of liquid fuel
combusted that is
relevant energy
for
implementation
(h) for
measurement time
interval (m)
GJ (or other
appropriate
units)
Measured using
measuring equipment
(including fuel flow
meters) in accordance
with Part 2.3 of the
NGER (Measurement)
Determination
The measuring
equipment must be
calibrated in
accordance with the
NGER (Measurement)
Determination
Throughout each
measurement time
interval, at a frequency
such that variance within
the measurement interval
is less than variance
between intervals
Where multiple
measurements of a variable
are taken in a measurement
time interval, the variable
is worked out by
multiplying the average
value of those
measurements during the
time interval by the period
of the time interval
4
Qh,m,i, where
(i) is solid
fuel
The total quantity
of solid fuel
combusted that is
relevant energy
for
implementation
(h) for
measurement time
interval (m)
GJ (or other
appropriate
units)
Measured using
measuring equipment:
(a) estimated based on
mass, volume,
moisture etc.; and
(b) in accordance with
Part 2.2 of the
NGER
(Measurement)
Determination
The measuring
equipment must be
calibrated in
accordance with the
NGER (Measurement)
Determination
Throughout each
measurement time
interval, at a frequency
such that variance within
the measurement interval
is less than variance
between intervals
Where multiple
measurements of a variable
are taken in a measurement
time interval, the variable
is worked out by
multiplying the average
value of those
measurements during the
time interval by the period
of the time interval
5
Independent
variables
See section 23
Appropriate
units
Measured using
measuring equipment
in accordance with:
(a) the NGER
(Measurement)
Determination; or
The measuring
equipment must be
calibrated in
accordance with the
NGER (Measurement)
Determination
Throughout each
measurement time
interval, at a frequency
such that variance within
the measurement interval
is less than variance
Where multiple
measurements of a variable
are taken in a measurement
time interval, the variable
is the average value of
those measurements during
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
45
EXPOSURE DRAFT
EXPOSURE DRAFT
Schedule 1 Monitored parameters
Clause 1
Monitored Parameters
Item
Parameter
Description
Unit of
monitoring
Manner of
monitoring
Accuracy
requirements
between intervals
(b) industry practice
6
46
Site
constants
See section 24
Appropriate
units
Measured using
measuring equipment
in accordance with:
(a) the NGER
(Measurement)
Determination; or
(b) industry practice
Measurement
frequency
The measuring
equipment must be
calibrated in
accordance with the
NGER (Measurement)
Determination
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
EXPOSURE DRAFT
Throughout each
measurement time
interval, at a frequency
such that variance within
the measurement interval
is less than variance
between intervals
Determination of
parameter from
measurements
the time interval
EXPOSURE DRAFT
Monitored parameters Schedule 1
Section 1
Carbon Credits (Carbon Farming Initiative) Methodology (Industrial Fuel and
Energy Efficiency) Determination 2014
47
EXPOSURE DRAFT