EXPLANATORY STATEMENT
Issued by the Authority of the Minister for the Environment, the Honourable Greg Hunt MP
National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2014 (No. 1)
The National Greenhouse and Energy Reporting Act 2007 (Cwlth) established the National Greenhouse and Energy Reporting (NGER) scheme, which is a national system for reporting greenhouse gas emissions, energy consumption and energy production by Australian corporations.
The National Greenhouse and Energy Reporting (Measurement) Determination 2008 was made under sections 7B and 10 of the Act, which provides for the Minister to determine methods, or criteria for methods, for the measurement of (a) greenhouse gas emissions; (b) the production of energy; and (c) the consumption of energy.
The National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2014 (No.1) (the Instrument) will amend the National Greenhouse and Energy Reporting (Measurement) Determination 2008 and aims to achieve the following:
provide clarification of methodologies to simplify, streamline and improve the accuracy of emission estimation methods;
respond to feedback from stakeholders; and
update scope 2 emissions factors for the consumption of electricity, which require annual adjustment in line with dispatch decisions within the electricity market made throughout the last financial year.
Schedule 1 of the instrument will commence on 1 July 2014 and apply to the 2014-15 financial year. It will affect NGER reports submitted by corporations in October 2015. Amendments that will not commence until 1 July 2015 are set out at Schedule 2.
Details of the amendments to the NGER (Measurement) Determination 2008 and a Statement of Compatibility with Human Rights are included in the Attachments.
This Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Overview of the National Greenhouse and Energy Reporting (Measurement) Determination 2008
The NGER (Measurement) Determination 2008 provides the methods for the estimation of greenhouse gas emissions and for the production and consumption of energy.
The scope of the Determination follows international classification systems and includes emissions from:
- the combustion of fuel for energy;
- the extraction, production, flaring, processing and distribution of fossil fuels and carbon capture and storage;
- industrial processes where a mineral, chemical or metal product is formed using a chemical reaction that generates greenhouse gases as a by-product as well as emissions of hydrofluorocarbons and sulphur hexafluoride resulting from their use by certain industries; and
- waste disposal – either in landfill, as management of wastewater or from waste incineration .
The most significant source of emissions in Australia is from fuel combustion, which accounts for over 60 per cent of the emissions reported in the national greenhouse gas inventory.
The scope of the Determination does not include land based emissions covered by the IPCC categories ‘Agriculture’ and ‘Land Use, Land Use Change and Forestry’. Emissions from fuel combustion by land based industries are, nonetheless, covered by this Determination.
Methods of measurement
The framework supporting the emissions estimation methods specified in the Determination reflects the approaches of the Intergovernmental Panel on Climate Change (IPCC) guidelines governing the estimation of national greenhouse gas inventories.
The Determination provides four different classes of methods for the estimation of emissions for most emissions sources.
NGER Method 1: is the National Greenhouse Accounts default method and specifies the use of default emission factors in the estimation of emissions. This is the simplest method available and, in general, emissions may be estimated by reference to activity data such as fossil fuel consumption, evidenced by invoices, and the use of specified emission factors provided in the Determination.
NGER Method 2: Method 2 is a facility-specific method using industry sampling and Australian or international standards to provide more accurate estimates of emissions at facility level. Method 2 enables corporations to undertake additional measurements – for example, the qualities of fuels consumed at a particular facility – in order to gain more accurate estimates for emissions for that particular facility.
NGER Method 3: Method 3 is a facility-specific method using Australian or international standards for both sampling and analysis of fuels and raw materials. Method 3 is very similar to Method 2, except that reporters must use Australian or equivalent documentary standards for sampling (of fuels or raw materials) as well as for the analysis of fuels.
NGER Method 4: direct monitoring of emission systems, either on a continuous or periodic basis. Rather than providing for the analysis of the chemical properties of inputs (or in some case, products), Method 4 aims to directly monitor greenhouse emissions arising from an activity. This approach can provide a higher level of accuracy in certain circumstances, depending on the type of emissions process; however, it is more likely to be more data intensive than other approaches.
As for Methods 2 and 3, there is a substantial body of documented procedures on monitoring practices and state and territory government regulatory experience that provide the principal sources of guidance for the establishment of such systems.
More generally, the NGER (Measurement) Determination draws on existing estimation practices wherever possible, including the use of data collected for commercial, taxation or other regulatory purposes, with the aim of maximising the use of readily validated data and minimising administrative burdens on reporters.
Consultation
A consultation draft of this Instrument was released for public comment on 16 May 2014. The Department received 6 submissions from stakeholders on a range of issues, which resulted in a small number of minor clarifications to the Instrument.
ATTACHMENT A
Details of the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2014 (No.1)
Item 1 – Name of Determination
This item provides that the title of the Instrument is the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2014 (No. 1).
Item 2 – Commencement
This item provides that the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2014 (No. 1) Schedule 1 commences on 1 July 2014.
The National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2014 (No. 1) Schedule 2 commences on 1 July 2015.
Item 3 – Authority
This item outlines that the National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the Determination) is made under sections 7B and 10 of the National Greenhouse and Energy Reporting Act 2007.
Item 4 – Schedules
Schedule 1—Amendments commencing 1 July 2014
The explanations of amendments provided below are grouped by part and division within the Instrument. Individual amendment items are referenced to the amendment number as stated in the Instrument.
Chapter 1: General
Part 1.1 Overview
Part 1.1 provides updates to definitions to support new or revised methods and associated additional guidance in relation to natural gas, wastewater, landfills and composting.
Item | NGER (Measurement) Determination Reference | Commentary |
[1] | 1.8 | Clarifies that the meaning of coal seam methane is the same as in the National Greenhouse and Energy Reporting Regulations 2008. |
[2] | 1.8 | Elaborates definition for enclosed composting activities. |
[3] | 1.8 | Removes note from definition of Global Warming Potential. |
[4] [5] | 1.8 | Clarifies definition of sludge lagoon for wastewater treatment plants. Introduces definitions of shale gas and tight gas. |
[6] – [7] | 1.9(4) 1.10JK(2)(a) | Minor clarifications. |
Part 1.2 General, Division 1.2.2 Methods
Part 1.2 broadens application of the provisions relating to the temporary unavailability of a method.
Item | NGER (Measurement) Determination Reference | Commentary |
[8] | 1.19(1) | Improves flexibility for reporters by broadening the use of this provision from equipment failure to include any cause of the unavailability of a measurement system (for example, because of abnormal or unexpected events such as natural disasters). |
[9] | 1.19G(3)(b) | Clarifies the use of international standards governing tolerance parameters, mirroring the amendment to 2.31(3) (a)(ii). |
Chapter 2: Fuel Combustion
Part 2.2 Emissions released from the combustion of solid fuels, Division 2.2.4 Method 3 – Solid Fuels
Part 2.2 provides routine updates to Australian Standards made by Standards Australia to accommodate changes in industry practice and methods.
Item | NGER (Measurement) Determination Reference | Commentary |
[10] | 2.12(3) | Update references to Australian Standards for coal measurements. |
Part 2.3 Emissions released from the combustion of gaseous fuels, Division 2.3.6
Item | NGER (Measurement) Determination Reference | Commentary |
[11] | 2.31(3)(a)(ii) | Clarifies the use of international standards governing tolerance parameters. |
[12] | 2.32(2)(a) | Minor correction to terminology. |
[13] | 2.32(4)(b) | Provides flexibility for reporters to apply a wider range of international standards. |
[14] | 2.38(2)(a) | Improved alignment of landfill gas combustion emissions estimation guidance with legislative instruments for the Carbon Farming Initiative. |
Part 3.3 Oil and natural gas – fugitive emissions, Division 3.3.2 oil or gas exploration
Part 3.3 provides amendments that expand the availability of the existing voluntary method 4 for estimating vented fugitive emissions from well completions and workovers from coal seam gas to all natural gas processes.
Item | NGER (Measurement) Determination Reference | Commentary |
[15] | 3.40A | Expands the definition of natural gas which applies for Part 3.3 (Oil and natural gas – fugitive emissions) of the Determination to include coal seam methane, tight gas and shale gas. |
[16] | 3.46A(2)(b)(i) | Changes reference from coal seam gas to natural gas. This extends the availability of the existing voluntary method 4 for vented fugitive emissions from well completions and workovers from coal seam gas to all sources of natural gas. |
Chapter 4: Industrial Processes Emissions
Part 4.3 Ammonia production
Part 4.3 provides clarification for the measurement of emissions released from ammonia production in situations involving the use of multiple fuels.
Item | NGER (Measurement) Determination Reference | Commentary |
[17] [18] | 4.42 4.43 | Provides additional guidance on the allocation of CO2 emissions to fuel use, when ammonia is produced using multiple fuels and the CO2 is captured for re-use. |
Part 4.5 Industrial processes – emissions of hydroflurocarbons and sulphur hexafluoride
Item | NGER (Measurement) Determination Reference | Commentary |
[19] | 4.100(2) | Amends the meaning of synthetic gas generating activities so that it aligns with the reporting requirements for emissions of sulphur hexafluoride gases set out in NGER Regulation 4.16. |
Chapter 5: Waste
Part 5.2 Solid waste disposal on land
Item | NGER (Measurement) Determination Reference | Commentary |
[20] | 5.4(1) | Minor clarification of referencing for the calculation of CH4 emissions generated. |
[21] [30] | 5.8 5.13(2) | Improves flexibility for reporters through refinements to general and BBB provisions governing the estimation of landfill waste activity data. |
[22] - [26 ] | 5.9(2) 5.10(2) 5.10(3) 5.10A 5.11(1) | Clarifies requirements for the reporting of homogenous and general waste streams |
[27] - [29] | 5.11A 5.11A(c) | Improved flexibility for reporting of waste deducted for operational purposes, recycling or for biological treatment. |
Part 5.3 Wastewater handling (domestic)
Item | NGER (Measurement) Determination Reference | Commentary |
[31] | 5.26 5.26A | Inclusion of an additional Method 2 for the estimation of emissions from sludge lagoons, following a method developed by the Water Services Association of Australia. This new, optional method addresses carbon balance issues associated with de-sludging intervals of more than a year, providing improved accuracy and estimation efficiency. |
Part 5.4 Wastewater handling (industrial)
Item | NGER (Measurement) Determination Reference | Commentary |
[32] - [41] | 5.40(2) 5.42(5) 5.42(8) 5.42(8)(a) 5.42(8)(table) 5.43(2) | Provides clarifications to existing wastewater provisions. Clarifies guidance that the Determination should explicitly state that the Chemical Oxygen Demand (COD) calculated in section 5.43(2) should replace CODw,i in 5.42(5). |
Part 5.5 Waste incineration
Item | NGER (Measurement) Determination Reference | Commentary |
[42] | 5.51 | Clarifies that emissions estimates for the incineration of solid waste are related to waste disposal purposes, and not for the generation of energy. |
Part 6.2 Consumption
Item | NGER (Measurement) Determination Reference | Commentary |
[43] [44] | 6.2(1)(d) 6.2(3) | Clarifies reporting for electricity dispatched for use other than being fed into an electricity transmission or distribution network. |
[45] | 6.4 | Clarifies that reporters may omit from their reports, amounts of energy consumed in relation to a separate instance of a source in accordance with thresholds provided in section 2.2, section 2.18 and section 2.39. |
Chapter 9—Application and transitional provisions
The amendments made by items 1 to 45 and 47 to 54 of Schedule 1 of the Amendment Determination apply in relation to a financial year that commences on or after 1 July 2014.
Item | NGER (Measurement) Determination Reference | Commentary |
[46] | 9.1 | Schedule 1 is applicable from the 2014/15 reporting year, and applies to NGER reporting due 31 October 2015. It is Commonwealth drafting policy to repeal instruments, and provisions of instruments, that have no continuing operation or effect. |
Schedule 1: Energy content factors and emission factors
Part 4 Fuel combustion – fuels for transport energy purposes
Item | Commentary |
[47] [48] | Refinements to definitions of natural gas for use as a transport fuel, aligning terminology with related amendments in previous years. |
Part 6 Indirect (scope 2) emission factors from consumption of purchased electricity from grid
Item | Commentary |
[49] – [54] | Annual update of scope 2 emission factors reflecting changes in dispatch decisions within the electricity market made throughout the last financial year. |
Schedule 2—Amendments commencing 1 July 2015
Schedule 2—Amendments commencing 1 July 2015 provides new provisions for reporting two classes of municipal solid waste. These amendments will apply automatically to the Determination for the 2015/16 reporting year.
Item | NGER (Measurement) Determination Reference | Commentary |
[1]- [10] | 1.8 5.9(3)(a) 5.10(1)(a) 5.10(2) 5.11(2) 5.11(2)(c) 5.11(2)(table) 5.11(3) 5.11(3)(b) 5.11(3)(table) | Amendments to provide for reporting of organic depleted municipal solid waste collected using a three bin system. Amendments will commence 1 July 2015. |
Chapter 9—Application and transitional provisions
The amendments made by items 1 to 10 of Schedule 2 of the Amendment Determination apply in relation to a financial year that commences on or after 1 July 2015.
Item | NGER (Measurement) Determination Reference | Commentary |
[11] | 9.2 | Schedule 2 is applicable from the 2015/16 reporting year, and applies to NGER reporting due 31 October 2016. It is Commonwealth drafting policy to repeal instruments, and provisions of instruments, that have no continuing operation or effect. |
ATTACHMENT B
Documents Incorporated By Reference
Chapter 2: Fuel Combustion
The following standards, published by Standards Australia (SA), can be obtained at:
http://www.standards.org.au/.
- AS 4264.1—2009 Coal and coke - Sampling - Coal - Sampling procedures
ATTACHMENT C
Statement of Compatibility with Human Rights