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EXPOSURE DRAFT EXPOSURE DRAFT Carbon Credits (Sequestration of Carbon in Soil Using Modelled Abatement Estimates) Methodology Determination 2014 I, Greg Hunt, Minister for the Environment, make the following legislative instrument. Dated Greg Hunt [DRAFT ONLYNOT FOR SIGNATURE] Minister for the Environment

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Page 1: Carbon Credits (Sequestration of Carbon in Soil Using ...Abatement Estimates) Methodology Determination 2014 EXPOSURE DRAFT soil carbon sequestration eligibility map means the map

EXPOSURE DRAFT

EXPOSURE DRAFT

Carbon Credits (Sequestration of Carbon in Soil Using Modelled Abatement Estimates) Methodology Determination 2014

I, Greg Hunt, Minister for the Environment, make the following legislative instrument.

Dated

Greg Hunt [DRAFT ONLY—NOT FOR SIGNATURE]

Minister for the Environment

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Contents Contents

Part 1 Preliminary

1.1 Name of determination 7 1.2 Commencement 7 1.3 Authority 7 1.4 Duration 7 1.5 Definitions 7 1.6 Meaning of appropriate testing 9 1.7 Meaning of nutrient 10 1.8 Meaning of qualified person 10

Part 2 Type of project to which this determination applies

2.1 Type of project—general 11 2.2 Types of modelled soil carbon projects 11

Part 3 Eligibility requirements

Division 3.1 Eligible projects

3.1 General 12

Division 3.2 Requirements for declaration as eligible project

Subdivision 3.2.1 General 3.2 General 12

Subdivision 3.2.2 Land on which the project is carried out 3.3 Location 12 3.4 Eligible land 12 3.5 Eligible land—determination by Regulator 13 3.6 Identification of project area 13

Subdivision 3.2.3 Carbon estimation areas 3.7 General 13 3.8 Carbon estimation areas—general requirements 13 3.9 Carbon estimation areas—boundaries and mapping 13

Subdivision 3.2.4 Additionality requirement 3.10 Requirements in lieu of newness requirement 14

Division 3.3 Requirements for eligible projects

Subdivision 3.3.1 Requirements for eligible projects—general 3.11 Requirements for eligible projects—general 14

Subdivision 3.3.2 Sustainable intensification project—general requirements 3.12 Sustainable intensification project—general 15

Subdivision 3.3.3 Sustainable intensification project—nutrient management 3.13 Nutrient management—general 15 3.14 Nutrient management—written advice 15 3.15 Nutrient management—preliminary actions 16 3.16 Nutrient management strategy 16 3.17 Nutrient management—activity 17

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Subdivision 3.3.4 Sustainable intensification project—soil acidity management 3.18 Soil acidity management—general 17 3.19 Soil acidity management—written advice 18 3.20 Soil acidity management—strategy 18 3.21 Soil acidity management—activity 18

Subdivision 3.3.5 Sustainable intensification project—introducing irrigation 3.22 Sustainable intensification project—introducing irrigation 18 3.23 Irrigation—evidence 19 3.24 Irrigation—ineligible activities 19

Subdivision 3.3.6 Sustainable intensification project—pasture renovation 3.25 Sustainable intensification project—pasture renovation 20

Subdivision 3.3.7 Stubble retention project 3.26 Stubble retention project—requirements 20

Subdivision 3.3.8 Conversion to pasture project 3.27 Conversion to pasture project—requirements 21

Subdivision 3.3.9 Maintenance of activities 3.28 Maintenance of project management activities 21 3.29 Change of project management activities 21 3.30 Change of carbon estimation areas 22

Subdivision 3.3.10 Ineligible activities 3.31 Clearing woody vegetation 22 3.32 Bare soil 23 3.33 Ineligible activities—reversal events 23

Subdivision 3.3.11 Reversal events 3.34 Reversal events—requirements 23

Part 4 The net abatement amount

Division 4.1 The net abatement amount—general

4.1 The net abatement amount 24 4.2 References to factors and parameters from external sources 24 4.3 Greenhouse gas assessment boundary 24

Division 4.2 Calculations—general

Subdivision 4.2.1 Calculations—general 4.4 Calculating the net abatement amount—process 25

Subdivision 4.2.2 Calculating soil carbon sequestration 4.5 Sequestration amount in each carbon estimation area 26

Subdivision 4.2.3 Calculating project emissions—general 4.6 Livestock emissions 27 4.7 Synthetic fertiliser emissions 27 4.8 Lime emissions 27 4.9 Residue emissions 27 4.10 Emissions from irrigation energy use 28

Division 4.3 Calculating baseline emissions

Subdivision 4.3.1 Calculating baseline emissions—livestock 4.11 Livestock emissions during baseline emissions period 28 4.12 Livestock baseline A 28 4.13 Livestock baseline B—general 30

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4.14 Livestock baseline B—requirements 30

Subdivision 4.3.2 Calculating baseline emissions—synthetic fertiliser 4.15 Synthetic fertiliser baseline emissions 32 4.16 Synthetic fertiliser baseline B 32

Subdivision 4.3.3 Calculating baseline emissions—lime 4.17 Lime baseline emissions 33

Subdivision 4.3.4 Calculating baseline emissions—residues 4.18 Residue baseline emissions—general 34 4.19 Residue baseline A 34 4.20 Residue baseline B 34 4.21 Residue baseline C 34

Subdivision 4.3.5 Calculating baseline emissions—irrigation energy use 4.22 Irrigation energy use baseline emissions 37

Division 4.4 Calculating project emissions

4.23 Project emissions—livestock 37 4.24 Project emissions—synthetic fertiliser 38 4.25 Project emissions—lime 40 4.26 Project emissions—residues 41 4.27 Project emissions—irrigation energy use 44

Division 4.5 Calculating net change in emissions

Subdivision 4.5.1 Calculating net change in emissions—livestock 4.28 Calculating net change in livestock emissions—general 45 4.29 Net change in livestock emissions—reporting emissions greater than

baseline emissions 46 4.30 Net change in livestock emissions—reporting emissions less than baseline

emissions 46 4.31 Calculating total change in livestock emissions 47

Subdivision 4.5.2 Calculating net change in emissions—synthetic fertiliser, lime, residues and fuel 4.32 Calculating net change in synthetic fertiliser emissions 47 4.33 Calculating net change in lime emissions 48 4.34 Calculating net change in residues emissions 48 4.35 Calculating net change in fuel emissions 49

Division 4.6 Calculation of the carbon dioxide equivalent net abatement amount

4.36 Calculation of net abatement amount—general 50 4.37 Calculation of net abatement amount—net change in emissions for the

carbon estimation area 50 4.38 Calculation of net abatement amount—net change in emissions for the

project area 51 4.39 Calculation of net abatement amount—sequestration for project area 51 4.40 Calculation of net abatement amount—net abatement for project 52

Part 5 Record-keeping and reporting requirements

Division 5.1 General

5.1 Application 53

Division 5.2 Record-keeping requirements

5.2 Records that must be created and kept—nutrient management and managing soil acidity projects 53

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5.3 Records that must be created and kept—irrigation 54 5.4 Records that must be created and kept—pasture renovation 55 5.5 Records that must be created and kept—projects carried out on pasture 55 5.6 Records that must be created and kept—net abatement 55 5.7 Records that must be created and kept—maintenance of project

management activities 56

Division 5.3 Notification requirements

5.8 Notification of Regulator 56

Division 5.4 Offsets report requirements

5.9 Information in each offsets report 56

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Part 1 Preliminary

1.1 Name of determination

This determination is the Carbon Credits (Sequestration of Carbon in Soil Using Modelled Abatement Estimates) Methodology Determination 2014.

1.2 Commencement

This determination commences on the day after it is registered on the Federal Register of Legislative Instruments.

1.3 Authority

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

1.4 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.

1.5 Definitions

In this determination:

Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.

baseline emissions period means the 5 years immediately before an application for the project to be declared an eligible offsets project is made.

Note Under section 22 of the Act, a person may apply to the Regulator for the declaration of an offsets project as an eligible offsets project.

carbon estimation area means an area of land that is within the project area and on which a specific project type and project management activity or activities are carried out under this determination.

Note Carbon estimation areas are the basic unit within which project management activities are carried out and for which sequestration and project emissions are estimated under this determination. A carbon estimation area may be comprised of a single area of land with an unbroken perimeter or of several adjacent or non-adjacent, discrete areas of land of differing sizes and shape—see section 3.9.

CFI Mapping Guidelines means the guidelines of that name, as published and made available on the Department’s website and as updated from time to time.

CO2-e means carbon dioxide equivalent.

Department means the department administered by the Minister that administers the Act.

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eligible land has the meaning given by section 3.4.

forest land means land with a tree height of at least 2 metres and crown canopy cover of 20% or more, and covering at least 0.2 of a hectare.

material deficiency means the concentration of one or more nutrients in the soil, where the concentration limits plant growth to 70% or less of the water limited yield potential, or of the water limited potential annual pasture growth, which could have been achieved. A material deficiency is assessed by a qualified person in accordance with industry best practice nutrient management.

modelled soil carbon project has the meaning given in section 2.1.

National Inventory means the report of that name, as published and made available on the Department’s website, and as updated from time to time.

native forest cover—land has native forest cover if the land covers at least 0.2 of a hectare and is dominated by trees that:

(a) are located within their natural range;

(b) have attained a crown cover of at least 20% of the area of land; and

(c) have reached a height of at least 2 metres.

NGER Act means the National Greenhouse and Energy Reporting Act 2007 as in force from time to time.

NGER Measurement Determination means the applicable determination made under subsection 10(3) of the National Greenhouse and Energy Reporting Act 2007, as in force from time to time.

NGER Regulations means the National Greenhouse and Energy Reporting Regulations 2008.

non-synthetic fertiliser means any biologically-derived solid or liquid product that:

(a) is created using waste products of other industries or processes;

(b) may be applied to the surface of, or incorporated into, agricultural soils in accordance with the laws and regulations of the relevant state, territory or local government; and

(c) does not include polymers and non-biodegradable substances such as plastics, rubber or coatings.

organic (peat) soil means organosols as defined by the National Inventory.

pasture means agricultural land that is continuously under any combination of perennials, annual grasses, and/or legumes.

project declaration date means the date on which the declaration of a modelled soil carbon project as an eligible offsets project under section 27 of the Act takes effect.

production livestock means livestock managed for production purposes and from which commercial products or services are derived.

project management activity means the management activity or activities that a project proponent must undertake as part of a modelled soil carbon project.

Regulations means the Carbon Credits (Carbon Farming Initiative) Regulations 2011.

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soil carbon sequestration eligibility map means the map of that name depicting areas in Australia that are considered to be eligible land, as published and maintained by the Department and as updated from time to time.

Sequestration Values Table means the Sequestration Values Table for the ‘Carbon Credits (Sequestration of Carbon in Soil Using Modelled Abatement Estimates) Methodology Determination 2014’, as published and made available on the Department’s website and as updated from time to time.

Standard Parameters and Emissions Factors means the Standard Parameters and Emissions Factors for the ‘Carbon Credits (Sequestration of Carbon in Soil Using Modelled Abatement Estimates) Methodology Determination 2014’, as published and made available on the Department’s website and as updated from time to time.

stubble means post-harvest crop residue.

synthetic fertiliser means any synthetic substance that supplies nutrients to plants and soils to enhance plant growth and the fertility of soils.

tillage means any form of mechanical preparation of the soil.

water access entitlement means an entitlement to water held in accordance with the relevant law in the jurisdiction in which the project area is located.

wetland includes lakes, rivers, natural wetlands, and human-made dams.

Note Other words and expressions used in this determination have the meaning given by the Act. These include:

carbon dioxide equivalent

crediting period

eligible carbon abatement

eligible offsets project

emission

greenhouse gas

offsets project

offsets report

permanence period

project

project area

project proponent

Regulator

reporting period.

1.6 Meaning of appropriate testing

(1) In this determination:

appropriate testing means soil and/or plant tissue testing that:

(a) is undertaken to inform soil nutrient requirements and/or management of soil acidity for a carbon estimation area; and

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(b) meets industry best practice standards for the measurement or estimation of relevant nutrients in the soil or plant tissue and/or soil pH.

(2) Analysis of the soil and/or plant tissue samples for nutrients must be undertaken by a laboratory that is certified for the relevant test by the Australasian Soil and Plant Analysis Council.

1.7 Meaning of nutrient

In this determination, nutrient means one or more of the following elements:

(a) Nitrogen;

(b) Phosphorous;

(c) Potassium;

(d) Sulfur.

1.8 Meaning of qualified person

A qualified person is a person who:

(a) has successfully completed the following national units of competency or their equivalent:

(i) AHCWRK301A—Collect samples for a rural production and horticulture monitoring program;

(ii) AHCPCM402A—Develop a soil health and plant nutrition program;

(iii) AHCPCM505A—Conduct environmental and food safety risk assessment of plant nutrition and soil fertility programs; and

(b) provides soil nutrient management advice and/or soil acidity management advice based on the skills specified in the national units specified in paragraph (a).

Note The units of competency in paragraph (a) are available on the website www.training.gov.au.

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Part 2 Type of project to which this determination applies

2.1 Type of project—general

(1) For paragraph 106(1)(a) of the Act, this determination applies to sequestration offsets projects that:

(a) are a type of project specified in section 2.2;

(b) meet the eligibility requirements in Part 3; and

(c) result in eligible carbon abatement.

(2) A project covered by subsection (1) is a modelled soil carbon project.

2.2 Types of modelled soil carbon projects

For the purposes of paragraph 2.1(1)(a), a modelled soil carbon project must consist of one of the following project types:

(a) sustainable intensification project—see Subdivisions 3.3.2–3.3.6;

(b) stubble retention project—see Subdivision 3.3.7; or

(c) conversion to pasture project—see Subdivision 3.3.8.

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Part 3 Eligibility requirements

Division 3.1 Eligible projects

3.1 General

For paragraph 106(1)(b) of the Act, to be an eligible offsets project, a modelled soil carbon project must meet the requirements in this Part.

Division 3.2 Requirements for declaration as eligible project

Subdivision 3.2.1 General

3.2 General

For subsection 27(4) of the Act, this Division sets out requirements that must be met for a project to which this determination applies to be declared an eligible offsets project.

Note In addition, a project must meet the requirements in section 27 of the Act and in the Regulations, including a requirement to provide, in an application for a declaration of an eligible offsets project, a geospatial map of the project area that meets the requirements of the CFI Mapping Guidelines (regulation 3.1), and that the project is not an excluded offsets project (regulations 3.36 and 3.37).

Subdivision 3.2.2 Land on which the project is carried out

3.3 Location

The project must be located within Australia, excluding external territories.

3.4 Eligible land

(1) The project must take place on land that is determined to be eligible land under either this section or section 3.5.

(2) Eligible land is land:

(a) that, subject to this section, is shown on the soil carbon sequestration eligibility map; and

(b) on which crops were grown and/or production livestock was grazed at least once during the baseline emissions period.

(3) The following land is not eligible land:

(a) forest land;

(b) areas with organic (peat) soils; or

(c) settlements including dwellings or other structures; and

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(d) land that has been subject to:

(i) clearing of native forest cover; or

(ii) drainage of a wetland;

within the baseline emissions period.

3.5 Eligible land—determination by Regulator

Despite paragraph 3.4(2)(a), the Regulator may determine that land is or is not eligible land for the purposes of this determination.

Note Examples of when the Regulator may determine under section 3.5 that land is eligible land include if:

(a) the resolution of the soil carbon sequestration eligibility map is unclear;

(b) a carbon estimation area overlaps the boundary between eligible and ineligible land; or

(c) a project proponent provides evidence of a different land use from the land use depicted on the soil carbon sequestration eligibility map.

3.6 Identification of project area

The project proponent must delineate the boundaries of the project area in accordance with the CFI Mapping Guidelines.

Subdivision 3.2.3 Carbon estimation areas

3.7 General

(1) A project proponent must stratify the land on which the project is carried out into:

(a) one or more carbon estimation areas; and

(b) if relevant, one or more exclusion areas.

(2) Each carbon estimation area must meet the requirements of this Subdivision.

3.8 Carbon estimation areas—general requirements

A project proponent must nominate one of the following 3 project types for each carbon estimation area:

(a) sustainable intensification project;

(b) stubble retention project; or

(c) conversion to pasture project.

3.9 Carbon estimation areas—boundaries and mapping

(1) A carbon estimation area may comprise:

(a) a single area of land with an unbroken perimeter; or

(b) separate areas of land.

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(2) The geographic boundaries of each carbon estimation area must be defined:

(a) in accordance with the CFI Mapping Guidelines; and

(b) using at least one of the following:

(i) field surveys;

(ii) soil, vegetation or landform maps;

(iii) aerial photography;

(iv) remotely-sensed imagery; or

(v) deposited title plans from state land title registry.

(3) Any photography or imagery must be:

(a) date-stamped; and

(b) geo-referenced.

(4) The project proponent must provide the Regulator with a map showing each carbon estimation area in the project area.

Note The project area and any carbon estimation areas may be modified after the project declaration date only in accordance with section 3.30.

Subdivision 3.2.4 Additionality requirement

3.10 Requirements in lieu of newness requirement

(1) For subparagraph 27(4A)(a)(ii) of the Act, a requirement in lieu of the newness requirement for a modelled soil carbon project is that any project management activity undertaken as part of a particular project type must only be:

(a) undertaken after the project declaration date; and

(b) meet the requirements for the relevant project type and project management activity as set out in Division 3.3.

(2) To avoid doubt, the requirements for each project type as set out in Division 3.3 ensure additionality.

Division 3.3 Requirements for eligible projects

Subdivision 3.3.1 Requirements for eligible projects—general

3.11 Requirements for eligible projects—general

(1) Project management activities must be carried out in a carbon estimation area in accordance with this Division.

(2) To avoid doubt, and subject to this determination, land management activities that are not project management activities may be carried out in a carbon estimation area at the same time as project management activities are carried out.

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Subdivision 3.3.2 Sustainable intensification project—general requirements

3.12 Sustainable intensification project—general

(1) To be a sustainable intensification project, 2 of the following project management activities must be carried out as part of the project:

(a) nutrient management;

(b) managing soil acidity;

(c) introducing irrigation;

(d) pasture renovation.

(2) To be a sustainable intensification project on a carbon estimation area that is under crops, a project proponent must also implement the requirements for stubble retention in accordance with subsections 3.26(3)–(5) for that carbon estimation area.

Subdivision 3.3.3 Sustainable intensification project—nutrient management

3.13 Nutrient management—general

For nutrient management to be a project management activity in a sustainable intensification project, the requirements in this Subdivision must be met.

3.14 Nutrient management—written advice

(1) A project proponent must obtain written advice from a qualified person stating that:

(a) at the time that an application for the project to be declared an eligible offsets project is made, the entire carbon estimation area has a material deficiency of one or more nutrients; and

(b) in at least 4 of the 5 years in the baseline emissions period, the entire carbon estimation area was likely to have had a material deficiency of one or more nutrients.

(2) If:

(a) the carbon estimation area is materially deficient in the nutrient nitrogen; and

(b) pasture renovation will be used to address this material deficiency;

then the carbon estimation area must also be materially deficient in another nutrient.

(3) The written advice must be based on evidence which may include one or more of the following:

(a) historic fertiliser application;

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(b) crop yield, pasture production or stocking rates; and

(c) appropriate testing that was undertaken no earlier than 3 years before the application for the project to be declared an eligible offsets project was made.

3.15 Nutrient management—preliminary actions

(1) A project proponent must undertake the following activities before applying nutrients as part of a project management activity:

(a) undertake appropriate testing for each nutrient;

Note ‘appropriate testing’ is defined in section 1.6.

(b) obtain a nutrient management strategy as specified in section 3.16 and provide a copy of the strategy to the Regulator; and

(c) use the strategy to determine the rate, source, timing and placement of nutrients to be applied to the carbon estimation area.

(2) Testing for a specific nutrient may be omitted if:

(a) it is known that the nutrient is not deficient in the carbon estimation area; and

(b) the proponent provides the Regulator with written advice from a qualified person that states why the carbon estimation area is known not to be deficient in the relevant nutrient or nutrients.

3.16 Nutrient management strategy

(1) A nutrient management strategy is a written document:

(a) prepared in accordance with advice from a qualified person;

(b) specifying the nutrients that need to be applied to one or more carbon estimation areas to address the material deficiency demonstrated by the appropriate testing; and

(c) designed to optimise plant growth.

(2) A nutrient management strategy must:

(a) demonstrate that it is based on the results of the most recent round of appropriate testing;

(b) demonstrate that it is consistent with industry best practice;

(c) demonstrate that it is based on the advice of a qualified person which was obtained no earlier than 3 years before the date of the strategy;

(d) specify, as a minimum, the rate, source, timing and placement of nutrient applications.

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3.17 Nutrient management—activity

(1) Nutrient management must commence as a project management activity with the application of nutrients in accordance with this section and the nutrient management strategy in order to correct the identified material deficiency of all relevant nutrients.

(2) Subject to subsection (3), the nutrients must be applied as one or both of:

(a) synthetic fertiliser;

(b) non-synthetic fertiliser.

(3) If the carbon estimation area is materially deficient in the nutrient nitrogen, then the project proponent may undertake pasture renovation to sow legumes in order to correct the material deficiency of that nutrient.

(4) Non-synthetic fertiliser that includes crop residue, hay or straw, may be used in a sustainable intensification project only if the crop residue, hay or straw formed part of a waste-stream from an intensive animal production, food processing, manufacturing or municipal waste collection process before becoming part of the non-synthetic fertiliser.

(5) Nutrient application must at least provide the nutrients which will be removed from the soil by pasture or crops before the next nutrient application.

(6) Nutrients must not be applied in excess of industry best practice.

(7) Nutrients must be reapplied annually or as otherwise specified in the nutrient management strategy.

(8) Every 3 years after the initial application of nutrients, the following must occur:

(a) the nutrient management strategy for the relevant carbon estimation area must be reviewed in consultation with a qualified person and, if necessary, revised;

(b) written advice on any changes required to the nutrient management strategy must be obtained from a qualified person; and

(c) appropriate testing of each carbon estimation area must be undertaken.

Note Appropriate testing may be undertaken at least every 3 years during the project.

Subdivision 3.3.4 Sustainable intensification project—soil acidity management

3.18 Soil acidity management—general

For soil acidity management to be a project management activity in a sustainable intensification project, the requirements in this Subdivision must be met.

3.19 Soil acidity management—written advice

(1) A project proponent must obtain written advice from a qualified person that within the relevant carbon estimation area the average soil pH as measured in calcium chloride (CaCl2) is less than either or both of the following:

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(a) 5.5 in the surface soil (0–10 centimetre depth);

(b) 4.8 in the subsoil (below 10 centimetre depth).

(2) The written advice must be based on evidence that includes the following:

(a) appropriate testing of soil pH as measured in calcium chloride, undertaken no more than 3 years before implementing the project activity and specifying the type of test and results; and

(b) industry best practice for establishing and managing critical levels of soil acidity considering the production use of the carbon estimation area.

3.20 Soil acidity management—strategy

(1) A project proponent must develop and implement a soil acidity management strategy.

(2) A soil acidity management strategy is a written document that:

(a) is based on the advice and evidence specified in section 3.19;

(b) specifies the rate, source, timing and placement of lime to be applied in order to bring soils to a pH range of 5.5–6.0 no later than 5 years from the first application of lime; and

(c) is revised at least once every 5 years.

3.21 Soil acidity management—activity

(1) Subject to subsection (2), soil acidity management must commence as a project management activity with the application of lime in accordance with the soil acidity management strategy.

(2) The initial application of lime must be at a rate of not less than 1 tonne per hectare for the entire carbon estimation.

(3) Subject to subsection (4), lime must be reapplied in accordance with a soil acidity management strategy at least every 5 years.

(4) A project proponent does not need to reapply lime to the carbon estimation area if soil testing indicates that the average soil acidity for that carbon estimation area is between pH 5.5 and 6.0 for both surface soils and subsoils.

Subdivision 3.3.5 Sustainable intensification project—introducing irrigation

3.22 Sustainable intensification project—introducing irrigation

(1) For introducing irrigation to be a project management activity in a sustainable intensification project, the irrigation must involve the application of additional water across the carbon estimation area.

(2) Additional water is water that comes from:

(a) improving the efficiency of on-farm:

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(i) irrigation infrastructure; or

(ii) management practices; or

(b) acquiring additional in-stream water access entitlements.

(3) If the additional water used to carry out the project management activity on a given carbon estimation area comes from efficiency savings made in accordance with either subparagraph (2)(a)(i) or (ii), then:

(a) the amount of water saved through increasing irrigation efficiency must at least equal the amount of irrigation water applied to the relevant carbon estimation areas; and

(b) the irrigation efficiency improvements must not be carried out using funding from any Commonwealth, state, territory, or local government program.

(4) If the additional water used to carry out the project management activity on a given carbon estimation area comes from sources specified in paragraph (2)(b), then the amount of water associated with the new water access entitlement must at least equal the amount of irrigation water applied to the relevant carbon estimation area.

(5) The additional water must be applied across the carbon estimation area in every year that the project activity is being undertaken.

(6) If no additional water is applied to the carbon estimation area in any year within the nominated permanence period, then:

(a) the project management activity will be taken to have ceased; and

(b) the project proponent must notify the Regulator.

(7) The project management activity of introducing irrigation must be undertaken consistent with any relevant industry best practice standards for managing adverse environmental impacts due to irrigation.

3.23 Irrigation—evidence

For irrigation to be a project management activity in a sustainable intensification project, a project proponent must provide evidence to the Regulator to demonstrate that the area for which irrigation is being introduced was not under irrigation during the baseline emissions period.

3.24 Irrigation—ineligible activities

Project management activities may not involve the following:

(a) installing, and/or using water derived from, new groundwater bores;

(b) increasing the amount of groundwater extracted from, and/or using water derived from, existing bores;

(c) constructing, and/or using water derived from, in-stream diversion works or overland flow interception or storage structures; or

(d) modifying existing in-stream diversion works or overland flow interception or storage structures to increase their capacity and/or using water derived from these existing structures.

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Subdivision 3.3.6 Sustainable intensification project—pasture renovation

3.25 Sustainable intensification project—pasture renovation

(1) For pasture renovation to be a project management activity in a sustainable intensification project, it must be carried out:

(a) in a carbon estimation area that was under pasture for at least 24 months before the pasture renovation is implemented; and

(b) by either re-seeding or re-establishing existing pasture.

(2) The renovated pasture must achieve at least 70% vegetation ground-cover within 6 months of establishment.

(3) The renovated pasture may include any combination of annual, perennial, and/or legume species.

(4) At least once every 5 years a project proponent must seek advice from a qualified person regarding activities required to maintain optimal production of the pasture and must implement these activities.

Subdivision 3.3.7 Stubble retention project

3.26 Stubble retention project—requirements

(1) Subject to subsection (2), a stubble retention project must be carried out on a carbon estimation area:

(a) that is under crops; and

(b) on which at least 30% of stubble was removed from the carbon estimation area by burning, baling or grazing in each of the 5 most recent years in which crops were grown before an application for the project to be declared an eligible offsets project is made.

(2) Where burning baling or grazing did not occur for any one year of the baseline emissions period, the Regulator may determine that, for that year, at least 30% of stubble is taken to have been removed from the carbon estimation area by burning, baling or grazing if the proponent demonstrates, to the satisfaction of the Regulator, that insufficient crop stubble was produced in that year to warrant burning, baling or grazing.

(3) Subject to subsection (4), a stubble retention project must involve the project management activity of ceasing burning, baling and grazing within a carbon estimation area so that crop stubble remains within the area.

(4) A burning, baling or grazing event that removes stubble may occur within the carbon estimation area no more frequently than once every 5 years after the project management activity referred to in subsection (2) has commenced.

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(5) Where an event specified under subsection (4) occurs more frequently than once every 5 years after the project management activity referred to in subsection (2) has commenced, then the project management activity will be taken to have ceased within the carbon estimation area.

Subdivision 3.3.8 Conversion to pasture project

3.27 Conversion to pasture project—requirements

(1) A conversion to pasture project must be carried out on land that was:

(a) not under pasture at any point during the baseline emissions period; and

(b) on which crops were grown at least once in each year of the baseline emissions period.

(2) To be a project management activity in a conversion to pasture project, land under crops must be converted to pasture.

(3) The new pasture must achieve at least 70% ground cover within 6 months of establishment.

(4) Once converted to pasture, the carbon estimation area must remain as pasture until the end of the nominated permanence period.

(5) If the carbon estimation area ceases to be under pasture during the nominated permanence period, then the project management activity will be taken to have ceased within the carbon estimation area.

Subdivision 3.3.9 Maintenance of activities

3.28 Maintenance of project management activities

(1) Subject to section 3.29, a project proponent must carry out the project management activities that comprise the project until the end of the nominated permanence period.

(2) If, before the end of the nominated permanence period, the proponent ceases to carry out a project management activity associated with the project, the proponent must provide written notification to the Regulator that the project management activity has ceased.

(3) If one or more project management activities within a carbon estimation area cease, it will be taken that a reversal event has commenced 6 months from the date that the project management activity was last required to be carried out, unless the Regulator determines a different date from which the reversal event is taken to have commenced.

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3.29 Change of project management activities

(1) If, during the nominated permanence period, a project proponent wishes to change one or more project management activities or to change project type then, before the proposed changes may be implemented, the proponent must:

(a) advise the Regulator, in writing, of the proposed change; and

(b) receive the written agreement of the Regulator.

(2) If the proponent changes one or more project management activities or project types without receiving the written agreement of the Regulator, it will be taken that the project management activity or activities have ceased.

3.30 Change of carbon estimation areas

(1) Changes to the number of carbon estimation areas or to the boundaries of one or more carbon estimation areas may be made only as provided in this section.

(2) Before changing the number or boundaries of carbon estimation areas within a project, the proponent must:

(a) advise the Regulator, in writing, of the proposed change; and

(b) receive the written agreement of the Regulator.

(3) The proponent must implement any conditions regarding project design, project type, project management activities and calculation of net abatement specified by the Regulator in its written agreement.

(4) If changes are made to the number or boundaries of carbon estimation areas within a project:

(a) each new carbon estimation area must meet the requirements in Subdivision 3.2.3; and

(b) the new carbon estimation area boundaries must be identified in the next offsets report that is submitted to the Regulator.

(5) If the proponent changes the number of carbon estimation areas or the boundaries of one or more carbon estimation areas, within a project without receiving the written agreement of the Regulator, a reversal event is taken to have occurred.

Subdivision 3.3.10 Ineligible activities

3.31 Clearing woody vegetation

Woody vegetation may not be cleared from within a carbon estimation area during the nominated permanence period, other than:

(a) in accordance with a right or approval from the relevant government body (such as a valid clearing permit) that was already in force when the project commenced; or

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(b) to manage growth of invasive woody weeds that have grown since the project declaration date, provided the clearing is undertaken in accordance with any applicable regional natural resource management plan and Commonwealth, state, territory or local government environmental and planning laws.

3.32 Bare soil

(1) During the nominated permanence period, a carbon estimation area must not be without vegetation ground cover on at least 70% of the total area of the carbon estimation area for a period of more than 6 months.

(2) The vegetation ground cover referred to in subsection (1) includes standing vegetation that is alive or dead.

(3) A project proponent must report any carbon estimation area that fails to comply with subsection (1) to the Regulator.

3.33 Ineligible activities—reversal events

If an ineligible activity occurs in a carbon estimation area before the end of the nominated permanence period, a reversal event is taken to have occurred.

Subdivision 3.3.11 Reversal events

3.34 Reversal events—requirements

(1) If a reversal event occurs under this determination, the Regulator must advise the proponent in writing of the date from which the Regulator considers that the reversal event commenced.

(2) From the time that the reversal is considered by the Regulator to have commenced soil organic carbon stocks are taken to reverse at an annual rate of one-fifth of the total sequestration achieved for the relevant carbon estimation area in the period between the declaration of the eligible offsets project and the day before the reversal event commenced.

(3) No further sequestration will be recorded for a carbon estimation area affected by a reversal event until the reversal event has stopped.

(4) A reversal event on a carbon estimation area is taken to have stopped when either:

(a) the Regulator writes to the proponent stating that it is satisfied that either:

(i) the original project type or project management activities have recommenced in accordance with Part 3 of the determination; or

(ii) an alternative project type and project management activity or activities, agreed in advance with the Regulator, have been implemented in accordance with Part 3 of the determination; or

(b) the carbon stocks for the carbon estimation area reach zero.

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Part 4 The net abatement amount

Division 4.1 The net abatement amount—general

4.1 The net abatement amount

(1) 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 a project to which this determination applies.

(2) The carbon dioxide equivalent net abatement amount in relation to a reporting period for the project is taken to be the increase in soil carbon sequestration associated with the relevant project management activities for the project area, minus the project emissions.

4.2 References to factors and parameters from external sources

If a calculation in this determination includes a factor or parameter that is defined by reference to another instrument or written document, the factor or parameter to be used for a reporting period is the factor or parameter referred to in the instrument or document as in force on the final day of the relevant reporting period.

4.3 Greenhouse gas assessment boundary

When making calculations under this Part:

(a) the carbon pools and emission sources and the corresponding greenhouse gases in Table 1 must be taken into account; and

(b) no other gases, carbon pools or emission sources may be taken into account.

Table 1: Carbon pools and emission sources accounted for in the abatement calculations

Baseline carbon pool or emission

source

Greenhouse gas

Soil Organic Carbon Carbon dioxide (CO2)

Livestock Nitrous oxide (N2O)

Methane (CH4)

Synthetic fertiliser Nitrous oxide (N2O)

Carbon dioxide (CO2)

Lime Carbon dioxide (CO2)

Residues Nitrous oxide (N2O)

Irrigation energy Nitrous oxide (N2O)

Carbon dioxide (CO2)

Methane (CH4)

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Project carbon pool or emission

source

Greenhouse gas

Soil Organic Carbon Carbon dioxide (CO2)

Livestock Nitrous oxide (N2O)

Methane (CH4)

Synthetic fertiliser Nitrous oxide (N2O)

Carbon dioxide (CO2)

Lime Carbon dioxide (CO2)

Residues Nitrous oxide (N2O)

Irrigation energy Nitrous oxide (N2O)

Carbon dioxide (CO2)

Methane (CH4)

Note Emissions from energy use for irrigation include fuel and electricity emissions.

Division 4.2 Calculations—general

Subdivision 4.2.1 Calculations—general

4.4 Calculating the net abatement amount—process

(1) The net abatement for a modelled soil carbon project must be determined in accordance with the process set out in this section.

(2) The annual sequestration value for each project management activity carried out in a carbon estimation area must be identified.

Note This value is located in the Sequestration Values Table.

(3) All annual sequestration values for each carbon estimation area must be multiplied by the number of years in the reporting period in which the relevant project management activity occurred and then summed.

(4) All sequestration values for the reporting period from each carbon estimation area must be summed to derive project sequestration.

(5) The relevant emissions sources, and the baseline approaches which must be taken into account for each carbon estimation area, must be identified.

Note This information is described in Subdivision 4.2.3 and is set out in the Sequestration Values Table.

(6) The baseline emissions from each relevant source for each carbon estimation area must be calculated.

(7) Reporting period emissions from each relevant source for each carbon estimation area must be calculated.

(8) Changes in emissions from each relevant source for each carbon estimation area must be calculated by determining the difference between baseline and project emissions.

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(9) The change in emissions from all emissions sources within each carbon estimation area must be summed to derive net change in project emissions for the carbon estimation area.

(10) The net change in project emissions for each carbon estimation area must be summed to derive net change in project emission for the project area.

(11) Net change in project emissions for the project area must be subtracted from total sequestration for the project area to derive net abatement for the project area.

Subdivision 4.2.2 Calculating soil carbon sequestration

4.5 Sequestration amount in each carbon estimation area

(1) The amount of sequestration that has occurred in each carbon estimation area must be determined using the Sequestration Values Table.

(2) For each carbon estimation area, the sequestration value for the relevant project management activity must be obtained from Table A in the Sequestration value table, in accordance with the following formula:

Sequestration value = Equation SC1

Where:

= sequestration value for project management activity x; t CO2-e / ha / y.

(3) The sequestration value must be multiplied by the number of years that the activity was carried out in the reporting period using the following formula:

Equation SC2

Where:

= total sequestration for project management activity x for reporting

period Rc in carbon estimation area A; t CO2-e.

= sequestration value for project management activity x; t CO2-e / ha / y.

= number of years that the activity was undertaken in reporting period Rc

for carbon estimation area A; y.

= number of hectares in carbon estimation area A; ha.

= current reporting period.

(4) The sequestration for all project management activities within the reporting period must be calculated using the following formula:

Equation SC3

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Where:

= total sequestration for all project management activities for reporting

period Rc in carbon estimation area A; t CO2-e.

= total sequestration for project management activity x for reporting

period Rc in carbon estimation area A; t CO2-e.

= number of project management activities undertaken in carbon

estimation area A during reporting period Rc; y.

Subdivision 4.2.3 Calculating project emissions—general

4.6 Livestock emissions

(1) If one or more carbon estimation areas are under pasture during the project, then changes in emissions from livestock must be calculated in accordance with this Part.

(2) A livestock group must be defined by species (g), state/region (i), livestock class (j) and season (k) (where appropriate).

4.7 Synthetic fertiliser emissions

(1) Emissions from the use of synthetic fertiliser must be calculated in accordance with this Part if either or both of the following apply to a modelled soil carbon project:

(a) nutrient management is a project management activity;

(b) the project is a conversion to pasture type of project.

(2) A synthetic fertiliser group must be defined by the fertiliser type (f), state (i) and production system (j).

4.8 Lime emissions

Emissions from the use of lime must be calculated in accordance with this Part if soil acidity management is a project management activity in a sustainable intensification project.

4.9 Residue emissions

Emissions from residues must be calculated in accordance with this Part if any of the following apply to a modelled soil carbon project:

(a) the project is a stubble retention type of project;

(b) pasture renovation is a project management activity in a sustainable intensification type of project;

(c) the project is a sustainable intensification type of project carried out on carbon estimation areas under crops;

(d) the project is a conversion to pasture type of project.

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4.10 Emissions from irrigation energy use

Emissions from irrigation energy use must be calculated in accordance with this Part if introducing irrigation is a project management activity in a sustainable intensification project.

Division 4.3 Calculating baseline emissions

Subdivision 4.3.1 Calculating baseline emissions—livestock

4.11 Livestock emissions during baseline emissions period

(1) Subject to subsection (2), historic stock rate data must be used to determine livestock emissions during the baseline emissions period (livestock baseline A).

(2) If it can be demonstrated to the Regulator that the historic stock rate data cannot be accessed, then livestock emissions may be calculated using assessed carrying capacity (livestock baseline B).

Livestock baseline A

(3) If accounting for livestock emissions using livestock baseline A, annual stocking rates over the baseline emissions period must be used to calculate the average annual emissions from livestock for the relevant carbon estimation area.

(4) Emissions above one standard deviation from the average annual baseline emissions are taken to be materially different and must be accounted for in calculating net abatement.

Livestock baseline B

(5) If accounting for livestock emissions using livestock baseline B, assessed carrying capacity must be used to calculate the average annual emissions from livestock for the relevant carbon estimation area under pasture.

(6) A tolerance margin of 10% must be used in the calculation of livestock baseline B.

4.12 Livestock baseline A

(1) If accounting for livestock emissions using livestock baseline A, the total emissions from livestock during each year of the baseline emissions period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS1

Where:

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= total emissions from livestock during year B of the baseline emissions

period in carbon estimation area A; t CO2-e / y.

= number of animals in livestock group gijk that were within carbon

estimation area A in year B of the baseline emissions period; livestock

head.

= fraction of year B of the baseline emissions period that livestock

group gijk was within carbon estimation area A; y.

= default emission factor for livestock group gijk; kg CO2-e / livestock

head / y.

n = number of livestock groups.

B = year of the baseline emissions period, being 1, 2, 3, 4 or 5.

Note The values of EFLSgijk are set out in Tables 1–4 of the Standard Parameters and Emissions Factors.

(2) The mean annual emissions from livestock during the baseline emissions period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS2

Where:

= mean annual emissions from livestock during the baseline emissions

period in carbon estimation area A; t CO2-e / y.

= total emissions from livestock during year B of the baseline emissions

period in carbon estimation area A; t CO2-e / y.

B = year of the baseline emissions period being 1, 2, 3, 4 or 5.

(3) The standard deviation of the annual livestock emissions for the baseline emissions period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS3

Where:

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= standard deviation of the annual livestock emissions for the baseline

emissions period for carbon estimation area A; t CO2-e / y.

= total emissions from livestock during year B of the baseline emissions

period in carbon estimation area A; t CO2-e / y.

= mean annual emissions from livestock during the baseline emissions

period in carbon estimation area A; t CO2-e / y.

B = year of the baseline emissions period being year 1, 2, 3, 4 or 5.

4.13 Livestock baseline B—general

(1) If accounting for livestock emissions using livestock baseline B, an assessment of carrying capacity for the relevant carbon estimation area must be obtained from the relevant government body.

(2) The carrying capacity must be expressed as a total number of animal units.

Note For example, the carrying capacity may be expressed as Dry Sheep Equivalent or Animal Equivalent.

(3) An auditable description of the process that was used to calculate the carrying capacity of the relevant carbon estimation area must be obtained from the relevant government body.

(4) In determining carrying capacity the relevant government body must have regard to any available property-specific data and must base its assessment on:

(a) the recommended pasture utilisation rate for the relevant district;

(b) the assessed carrying capacity being sustainable over a minimum of 10 years; and

(c) the assumption that annual rainfall will be at the 10 year average for that district.

(5) For the purpose of calculating livestoke emissions using livestock baseline B:

= assessed annual carrying capacity of carbon estimation area ; animal units.

4.14 Livestock baseline B—requirements

(1) The emissions from livestock for the first year of the project for each relevant carbon estimation area must be calculated using the following formula:

Equation LS4

Where:

= total emissions from livestock during the first year Y of the project in

carbon estimation area A; t CO2-e / y.

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= number of animals in livestock group gijk that were within carbon

estimation area A in the first year Y of the project; livestock head.

= fraction of the first year of the project Y that livestock group gijk was

within carbon estimation area A; y.

= default emission factor for livestock group gijk; kg CO2-e / livestock

head / y.

n = number of livestock groups.

Note The values of EFLSgijk are set out in Tables 1–4 of the Standard Parameters and Emissions Factors.

(2) The stocking rate for the first year of the project for each relevant carbon estimation area must be calculated in accordance with the process for establishing carrying capacity specified in subsection 4.13(3) and using the following formula:

= stocking rate of the carbon estimation area A for the first year Y of the

project; animal units.

(3) The annual baseline emissions from livestock for each relevant carbon estimation area must be calculated using the following formula:

Equation LS5

Where:

= mean (assumed) annual livestock emissions for the baseline emissions

period for carbon estimation area A; t CO2-e / y.

= assessed annual carrying capacity of carbon estimation area A; animal

units.

= stocking rate of carbon estimation area A for the first year Y of the

project; animal units.

= total emissions from livestock during the first year of the project in

carbon estimation area A; t CO2-e / y.

(4) The tolerance margin for the annual livestock emissions during the baseline emissions period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS6

Where:

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= tolerance margin for the baseline emissions period for carbon

estimation area A; t CO2-e / y.

= mean (assumed) annual livestock emissions for the baseline emissions

period for carbon estimation area A; t CO2-e / y.

0.1 = tolerance margin of 10% (expressed as a decimal).

Subdivision 4.3.2 Calculating baseline emissions—synthetic fertiliser

4.15 Synthetic fertiliser baseline emissions

(1) Subject to subsection (3), a default zero baseline (synthetic fertiliser baseline A) must be used to determine synthetic fertiliser emissions during the baseline emissions period.

(2) If accounting for synthetic fertiliser emissions using synthetic fertiliser baseline A:

(a) synthetic fertiliser baseline emissions are taken to be zero; and

(b) all emissions associated with synthetic fertiliser application in the relevant carbon estimation area must be accounted for in calculating net abatement.

(3) If it can be demonstrated to the Regulator that synthetic fertiliser was applied to the relevant carbon estimation area in at least 3 out of the 5 years of the baseline emissions period, baseline emissions may be calculated using synthetic fertiliser baseline B.

4.16 Synthetic fertiliser baseline B

(1) If accounting for synthetic fertiliser emissions using synthetic fertiliser baseline B, the nitrous oxide emissions from fertiliser applied to a carbon estimation area during each year of the baseline emissions period must be calculated using the following formula:

Equation SF1

Where:

= total nitrous oxide emissions from synthetic fertiliser applied to carbon

estimation area A during year B of the baseline emissions period;

t CO2-e / y.

= quantity of each synthetic fertiliser group applied to carbon estimation

area A during year B of the baseline emissions period; t.

= percentage nitrogen content of fertiliser type f; decimal.

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= default emission factor for synthetic fertiliser; t CO2-e / t N / y.

Note The values of are set out in Table 5 of the Standard Parameters and Emissions Factors.

(2) The total emissions from fertiliser applied to each relevant carbon estimation area during each year of the baseline emissions period must be calculated using the following formula:

Equation SF2

Where:

= total emissions from synthetic fertiliser applied to carbon estimation

area A during year B of the baseline emissions period; t CO2-e / y.

= total nitrous oxide emissions from synthetic fertiliser applied to carbon

estimation area A during year B of the baseline emissions period;

t CO2-e / y.

= quantity of urea applied to carbon estimation area A during year B of

the baseline emissions period; t.

= National Inventory emission factor for carbon dioxide emissions from

urea as updated from time to time; t CO2-e / t urea.

(3) The total emissions from fertiliser applied to each relevant carbon estimation area during the baseline emissions period must be calculated using the following formula:

Equation SF3

Where:

= mean annual emissions from synthetic fertiliser applied to carbon

estimation area A during the baseline emissions period; t CO2-e / y.

= total emissions from synthetic fertiliser applied to carbon estimation

area A during year B of the baseline emissions period; t CO2-e / y.

B = year of the baseline emissions period being year 1, 2, 3, 4 or 5.

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Subdivision 4.3.3 Calculating baseline emissions—lime

4.17 Lime baseline emissions

If a project proponent is managing soil acidity as part of a sustainable intensification project, lime baseline emissions must be taken to be zero.

Subdivision 4.3.4 Calculating baseline emissions—residues

4.18 Residue baseline emissions—general

To determine residue emissions during the baseline emissions period, a project proponent may use one of the following baseline methods:

(a) residue baseline A—see section 4.19;

(b) residue baseline B—see section 4.20; or

(c) residue baseline C—see section 4.21.

4.19 Residue baseline A

If any of the following applies to a modelled soil carbon project:

(a) the project is a stubble retention type of project;

(b) pasture renovation is a project management activity in a sustainable intensification type of project;

then:

(c) residue baseline A must be used to calculate baseline residue emissions; and

(d) baseline residue emissions are taken to be zero.

4.20 Residue baseline B

If a modelled soil carbon project is a sustainable intensification type of project carried out on one or more carbon estimation areas under crops, then:

(a) baseline residue emissions are taken to have increased by 30% to equal project residue emissions; and

(b) the change in emissions from residues under residue baseline B must be calculated in the project emissions equations.

Note Baseline emissions are calculated with reference to project emissions under Equation R13.

4.21 Residue baseline C

(1) If a modelled soil carbon project is a conversion to pasture type of project, the emissions from residues from each crop grown in a carbon estimation area for each year of the baseline emissions period must be calculated in acordance with this section.

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(2) The emissions from crop residues during the baseline emissions period must be calculated even if there are no emissions from residues during the project.

(3) The quantity of emissions released from the residues of each crop that:

(a) follows a tillage event; and

(b) is grown in each year of the baseline emissions period;

must be calculated for each year of the baseline emissions period for each relevant carbon estimation area using the following formula:

Equation

R1

Where:

= emissions released from residues of crop type v in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= quantity of harvested crop by crop type v in year B of the baseline emissions period in carbon estimation area A; t.

= residue to crop ratio as set out in the Standard Parameters and Emissions Factors; t residue / t crop.

= fraction of crop residue from crop type v that was removed in year B of the baseline emissions period in carbon estimation area A.

= dry matter content of crop residue from crop type v as set out in the Standard Parameters and Emissions Factors; dry weight / t crop residue.

= carbon mass fraction in dry matter of crop residue from crop type v as set out in the Standard Parameters and Emissions Factors.

= nitrogen to carbon ratio in crop residue from crop type v as set out in the Standard Parameters and Emissions Factors; t N / t C.

= National Inventory emission factor for residues; t CO2-e / t N.

= crop type.

B = year of the baseline emissions period, being year 1, 2, 3, 4, or 5.

(4) The total emissions from residues of all crop types grown in the relevant carbon estimation area for each year of the baseline emissions period must be calculated using the following formula:

Equation R2

Where:

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= emissions released from residues of all crop types for year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= emissions released from residues of crop type v in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= total number of crops grown.

= crop type.

(5) Emissions from fuel used for tillage events must be calculated using the following formula:

Equation R3

Where:

= emissions from diesel fuel used for tillage events in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= number of gas and fuel types.

= tilled area in year B of the baseline emissions period in carbon estimation area A; ha.

= energy content factor for diesel fuel as set out in the NGER Measurement Determination; GJ / kL.

= emission factor for each gas type g for diesel fuel as set out in the NGER Measurement Determination; kg CO2-e / GJ.

= default fuel use per hectare; kL / ha.

= conversion factor from kg to t CO2-e.

Note Values for ECF and EFFg are specified in Part 4 of Schedule 1 to the NGER Measurement Determination.

Note A default fuel use quantity of 0.0012 kL of diesel fuel has been developed considering a range of different tillage types.

(6) Total emissions from residues and tillage events for each year of the baseline emissions period for each relevant carbon estimation area must be calculated using the following formula:

Equation R4

Where:

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= total emissions from residues and tillage events in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= emissions from diesel fuel used for tillage events in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= emissions from all crop types in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

(7) Mean annual emissions from residues and tillage for the baseline emissions period for each relevant carbon estimation area must be calculated using the following formula:

Equation R5

Where:

= mean annual emissions from all tillage events in the baseline emissions period in carbon estimation area A; t CO2-e / y.

= total emissions from residues and tillage in year B of the baseline emissions period in carbon estimation area A; t CO2-e / y.

= year of the baseline emissions period, being year 1, 2, 3, 4, or 5.

Subdivision 4.3.5 Calculating baseline emissions—irrigation energy use

4.22 Irrigation energy use baseline emissions

If introducing irrigation is a project management activity for a sustainable intensification project on pasture, energy baseline emissions from energy use for irrigation are taken to be zero.

Division 4.4 Calculating project emissions

4.23 Project emissions—livestock

(1) The emissions for each livestock group must be calculated for each year of the reporting period using the following formula:

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Equation LS7

Where:

= emissions for each livestock group for year Y of the reporting period

in carbon estimation area A; t CO2-e / y.

= number of animals in each livestock group that were within carbon

estimation area A in year Y of the reporting period; livestock head.

= fraction of year Y of the reporting period that each livestock group

was within carbon estimation area A; year.

= default emission factor for the livestock group; kg CO2-e / livestock

head / y.

= conversion factor from kg to t CO2-e.

Note The values of EFLSgijk are set out in Tables 1–4 of the Standard Parameters and Emissions

Factors.

(2) The total livestock emissions for each year of the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS8

Where:

= total livestock emissions for year Y of the reporting period for carbon

estimation area A; t CO2-e / y.

= emissions for each livestock group for year Y of the reporting period

in carbon estimation area A; t CO2-e / y.

n = the number of livestock groups.

(3) The mean annual livestock emissions for the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS9

Where:

= mean annual livestock emissions in the reporting period for carbon

estimation area A; t CO2-e / y.

= total livestock emissions for year Y of the reporting period for carbon

estimation area A; t CO2-e / y.

Y = year in the reporting period.

= number of years in the reporting period for carbon estimation area A.

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4.24 Project emissions—synthetic fertiliser

(1) The nitrous oxide emissions from fertiliser applied to a carbon estimation area during each year of the reporting period must be calculated using the following formula:

Equation SF4

Where:

= total nitrous oxide emissions from synthetic fertiliser applied to carbon

estimation area A during year Y of the reporting period;

t CO2-e / y.

= quantity of each synthetic fertiliser group applied to carbon estimation

area A during year Y of the reporting period; t.

= percentage nitrogen content of fertiliser type f; decimal.

= default emission factor for synthetic fertiliser; t CO2-e / t N / y.

Note The values of EFSFfij are set out in Table 5 of the Standard Parameters and Emissions Factors.

(2) The total emissions from fertiliser applied to each relevant carbon estimation area during each year of the reporting period must be calculated using the following formula:

Equation SF5

Where:

= total emissions from synthetic fertiliser applied to carbon estimation

area A during year Y of the reporting period; t CO2-e / y.

= total nitrous oxide emissions from synthetic fertiliser applied to carbon

estimation area A during year Y of the reporting period;

t CO2-e / y.

= quantity of urea applied to carbon estimation area A during year Y of

the reporting period; t.

= National Inventory emission factor for carbon dioxide emissions from

urea as updated from time to time; t CO2-e / t urea.

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(3) The total emissions from synthetic fertiliser applied to each relevant carbon estimation area during the reporting period must be calculated using the following formula:

Equation SF6

Where:

= total emissions from synthetic fertiliser applied to carbon estimation area

A during the reporting period; t CO2-e / y.

= total emissions from synthetic fertiliser for year Y of the reporting period

for carbon estimation area A; t CO2-e / y.

Y = year in the reporting period.

= number of years in the reporting period for carbon estimation area A; y.

(4) The mean annual emissions from synthetic fertiliser applied to each relevant carbon estimation area during the reporting period must be calculated using the following formula:

Equation SF7

Where:

= mean annual emissions from synthetic fertiliser applied to carbon

estimation area A during the reporting period; t CO2-e / y.

= total emissions from synthetic fertiliser applied to carbon estimation area

A during the reporting period; t CO2-e / y.

= number of years in the reporting period for carbon estimation area A; y.

4.25 Project emissions—lime

(1) For each year of the reporting period the total quantity of carbonates (CaCO3 or CaMg(CO3)2) applied to each relevant carbon estimation area must be calculated using the following formula:

Equation L1

Where:

= total carbonates applied during year Y of the reporting period in carbon

estimation area A; t.

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= quantity of lime type l applied in year Y of the reporting period in carbon

estimation area A; t.

= percentage carbonate content of lime type l; decimal.

Note The percentage carbonate content of lime is described as its neutralising value.

l = type of lime as defined by the percent carbonate content.

n = number of types of lime applied in year Y of the reporting period.

(2) The quantity of carbon dioxide emissions released from applications of lime applied to each relevant carbon estimation area must be calculated using the following formula:

Equation L2

Where:

= total carbon dioxide emissions from lime applied in year Y of the

reporting period to carbon estimation area A; t CO2-e.

= total carbonates applied during year Y of the reporting period in carbon

estimation area A; t.

= National Inventory emission factor for carbonates as updated from time

to time; t CO2-e / t carbonate. Note The parameter is the National Inventory emission factor for carbonates, as updated

from time to time, and is currently 0.13.

(3) The total emissions released from applications of lime applied to each relevant carbon estimation area must be calculated using the following formula:

Equation L3

Where:

= total emissions from lime for carbon estimation area A in the reporting

period; t CO2-e / y.

= total carbon dioxide emissions from lime applied in year Y of the

reporting period to carbon estimation area A; t CO2-e.

Y = year in the reporting period.

= number of years in the reporting period for carbon estimation area A.

4.26 Project emissions—residues

(1) The quantity of emissions released from the residues of each crop grown in each year of the reporting period for each relevant carbon estimation area must be calculated using the following formula:

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Equation

R6

Where:

= emissions from residues of crop type v in year Y of the reporting

period for carbon estimation area A; t CO2-e / y.

= quantity of harvested crop by crop type v in year Y of the reporting

period for carbon estimation area A; t residue / t crop.

= residue to crop ratio as set out in the Standard Parameters and

Emissions Factors.

fraction of crop residue of crop type v removed in year Y of the

reporting period for carbon estimation area A.

dry matter content of crop type v as set out in the Standard

Parameters and Emissions Factors; t dry weight / t residue.

carbon mass fraction in crop residue in dry matter of crop type v as

set out in the Standard Parameters and Emissions Factors.

nitrogen to carbon ratio in crop residue of crop type v as set out in

the Standard Parameters and Emissions Factors; t N / t C.

emission factor for residues as updated from time to time;

t CO2-e / t N / y.

= crop type.

= year of the reporting period.

(2) The total quantity of emissions released from residues for each relevant carbon estimation area for each year of the reporting period must be calculated using the following formula:

Equation R7

Where:

= emissions released from residues of all crop types for year Y of the

reporting period for carbon estimation area A; t CO2-e.

= emissions released from residues of crop type v in year Y of the reporting

period for carbon estimation area A; t CO2-e.

n = total number of crops grown.

v = crop type.

(3) The quantity of emissions released from each pasture renewal or renovation event for each year of the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation R8

Where:

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= emissions from pasture renewal or renovation events in year Y of the

reporting period for carbon estimation area A; t CO2-e / y.

= National Inventory emission factor for residues; t CO2-e / t N.

= annual dry matter yield for pasture as set out in the Standard

Parameters and Emissions Factors; t / ha.

= fraction of residues of pasture removed in year Y from carbon

estimation area A.

= nitrogen content of pasture residues as set out in the Standard

Parameters and Emissions Factors; t N / t residue.

= tilled area for pasture renewal or renovation in year Y in carbon

estimation area A; ha.

= year of the reporting period.

Note Values of and are specified in Table 7 of the Standard Parameters and Emissions Factors.

(4) Emissions from fuel used for tillage events must be calculated using the following formula:

Equation R9

Where:

= emissions from fuel use associated with tillage in year Y of the reporting period in carbon estimation area A; t CO2-e / y.

= number of gas types.

= area tilled in year Y of the reporting period in carbon estimation area A; ha.

= energy content factor for diesel fuel as set out in the NGER Measurement Determination; GJ / kL.

= emission factor for each gas type g for diesel fuel as set out in the NGER Measurement Determination; kg CO2-e / GJ.

= default fuel use per hectare; kL / ha.

= conversion factor from kg to t CO2-e.

Note A default fuel use quantity of 0.0012 kL of diesel fuel has been developed considering a range of different tillage types.

Note Values for ECF and EFFg are set out in ‘Fuel combustion—fuels for transport energy purposes’ of ‘Schedule 1—Energy content factors and emission factors’ to the NGER Measurement Determination.

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(5) Total emissions from all residues and tillage events for each year of the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation R10

Where:

= total emissions from all residues and tillage events in year Y of the reporting period in carbon estimation area A; t CO2-e / y.

= emissions released from fuel use associated with tillage in year Y of the reporting period in carbon estimation area A; t CO2-e / y.

= emissions released from pasture renewal or renovation events in year Y of the reporting period in in carbon estimation area A; t CO2-e / y.

= emissions released from all crop residues in year Y of the reporting

period in carbon estimation area A; t CO2-e.

(6) The total emissions released from all residues and tillage events in the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation R11

Where:

= total emissions from all residues and tillage events in the reporting

period for carbon estimation area A; t CO2-e.

= emissions from all residues and tillage events in year Y of the reporting

period in carbon estimation area A; t CO2-e / y.

Y = year of the reporting period, 1, 2, 3, 4 or 5.

n = number of years in the reporting period.

4.27 Project emissions—irrigation energy use

(1) Emissions from the use of fuel and/or electricity to irrigate a carbon estimation area must be calculated if irrigation is a project management activity in a sustainable intensification project.

(2) The emissions released from fuel use associated with irrigation for each relevant carbon estimation area for each year of the reporting period must be calculated using the following formula:

Equation I1

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Where:

= emissions from irrigation fuel in year Y of the reporting period in

carbon estimation area A; t CO2-e / y.

n = the number of gas groups.

= area irrigated in year Y of the reporting period in the carbon

estimation area A; ha.

= quantity of fuel used to irrigate carbon estimation area A in year Y of

the reporting period; kL / y.

= NGER energy content factor for diesel fuel; GJ / kL.

= NGER emission factor for gas type g for diesel fuel; kg CO2-e / GJ.

Note The values for ECF and EFFg are set out in ‘Fuel combustion—liquid fuels and certain petroleum-based products for stationary energy purposes’ in ‘Schedule 1—Energy content factors and emission factors’ to the NGER Measurement Determination.

(3) The emissions released from electricity use associated with irrigation for each relevant carbon estimation area for each year of the reporting period must be calculated using the following formula:

Equation I2

Where:

= emissions from irrigation electricity in year Y of the reporting period in

carbon estimation area A; t CO2-e / y.

= quantity of electricity used to irrigate carbon estimation area A in year

Y of the reporting period; kWh / y.

= NGER emission factor for scope 2 electricity use; kg CO2-e / kWh.

(4) For QIP,Y,A, if the electricity purchased is measured in gigajoules, the quantity of kilowatt hours must be calculated by dividing the amount of gigajoules by 0.0036.

Note Values for emission factors for the relevant state/territory/region are set out in ‘Schedule 1—Energy content factors and emission factors’ to the NGER Measurement Determination.

Division 4.5 Calculating net change in emissions

Subdivision 4.5.1 Calculating net change in emissions—livestock

4.28 Calculating net change in livestock emissions—general

(1) The material difference between mean annual livestock emissions for the baseline emissions period and the reporting period for each relevant carbon estimation area must be calculated in accordance with this section.

(2) If the mean annual livestock emissions for the reporting period are greater than the mean annual livestock emissions for the baseline emissions period, Equation LS10 must be used to calculate the material difference.

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(3) If the mean annual livestock emissions for the reporting period are less than the mean annual livestock emissions for the baseline emissions period, Equation LS11 must be used to calculate the material difference.

4.29 Net change in livestock emissions—reporting emissions greater than baseline emissions

(1) If reporting period emissions are greater than baseline period emissions, the material difference between mean annual livestock emissions for the baseline emissions period and the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS10

Where:

= material difference in mean annual livestock emissions between the

baseline emissions period and the reporting period for carbon

estimation area A; t CO2-e / y.

= mean annual livestock emissions in the reporting period for carbon

estimation area A; t CO2-e / y.

= mean annual livestock emissions in the baseline emissions period for

carbon estimation area A; t CO2-e / y.

= standard deviation of the annual livestock emissions for the baseline

emissions period for carbon estimation area A; t CO2-e / y.

(2) For livestock baseline B, the tolerance margin TLS must be substituted for SLS,BEP,A; t CO2-e.

(3) If is less than zero then the material difference is taken to equal zero.

4.30 Net change in livestock emissions—reporting emissions less than baseline emissions

(1) If reporting period emissions are less than baseline period emissions, the material difference between mean annual livestock emissions for the baseline emissions period and the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS11

Where:

= material difference in mean annual livestock emissions between the

baseline emissions period and the reporting period for carbon

estimation area A; t CO2-e / y.

= mean annual livestock emissions in the reporting period for carbon

estimation area A; t CO2-e / y.

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= mean annual livestock emissions in the baseline emissions period for

carbon estimation area A; t CO2-e / y.

= standard deviation of the annual livestock emissions for the baseline

emissions period for carbon estimation area A; t CO2-e / y.

(2) For livestock baseline B, the tolerance margin TLS must be substituted for SLS,BEP,A; t CO2-e.

(3) If is greater than zero then the material difference is taken to equal zero.

4.31 Calculating total change in livestock emissions

The change in livestock emissions for the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation LS12

Where:

= total change in livestock emissions for the reporting period for carbon

estimation area A; t CO2-e.

= material difference in mean annual livestock emissions between the

baseline emissions period and the reporting period for carbon

estimation area A; t CO2-e / y.

= number of years in the reporting period for carbon estimation area A; y.

Subdivision 4.5.2 Calculating net change in emissions—synthetic fertiliser, lime, residues and fuel

4.32 Calculating net change in synthetic fertiliser emissions

(1) This section applies to sustainable intensification project for which nutrient management is a project management activity.

(2) If synthetic fertiliser baseline A was used to determine the baseline emissions for the project, the net emissions from residues for the reporting period must be calculated using the following formula:

Equation SF8

Where:

total change in synthetic fertiliser emissions for the reporting period

in carbon estimation area A; t CO2-e.

= total synthetic fertiliser emissions for the reporting period in carbon

estimation area A; t CO2-e.

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(3) If synthetic fertiliser baseline B was used to determine the baseline emissions for the project, the net emissions from residues for the reporting period must be calculated using the following formula:

Equation SF9

Where:

total change in synthetic fertiliser emissions for the reporting period;

t CO2-e.

= mean annual emissions from synthetic fertiliser applied to carbon

estimation area A during the baseline emissions period; t CO2-e / y.

= mean annual emissions from synthetic fertiliser applied to carbon

estimation area A during the reporting period; t CO2-e / y.

= number of years in the reporting period; y.

4.33 Calculating net change in lime emissions

The change in lime emissions for the reporting period for each relevant carbon estimation area must be calculated using the following formula:

Equation L4

Where:

= change in emissions from baseline to project for lime for carbon

estimation area A; t CO2-e / y.

= total emissions for lime for carbon estimation area A in the reporting

period; t CO2-e / y.

4.34 Calculating net change in residues emissions

(1) If residues baseline A was used to determine the baseline emissions for a modelled soil carbon project, the net emissions from residues for the reporting period must be calculated using the following formula:

Equation R12

Where:

= net emissions from residues and tillage events for the reporting period

for carbon estimation area A; t CO2-e.

= total emissions from all residues and tillage events in the reporting

period for carbon estimation area A; t CO2-e / y.

(2) If residues baseline B was used to determine the baseline emissions for a modelled soil carbon project, the net emissions from residues for the reporting period must be calculated using the following formula:

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Equation R13

Where:

= net emissions from residues and tillage events for the reporting period

for carbon estimation area A; t CO2-e.

= total emissions from residues and tillage events in the reporting

period for carbon estimation area A; t CO2-e / y.

(3) If residues baseline C was used to determine the baseline emissions for a modelled soil carbon project, the net emissions from residues for the reporting period must be calculated using the following formula:

Equation R14

Where:

= net emissions from residues for the reporting period for carbon

estimation area A; t CO2-e.

= total emissions from residues in the reporting period for carbon

estimation area A; t CO2-e / y.

= mean annual emissions from residues and tillage events in the

baseline emissions period in carbon estimation area A; t CO2-e / y.

= number of years in the current reporting period for carbon estimation

area A; years.

4.35 Calculating net change in fuel emissions

(1) This section applies to modelled soil carbon projects for which irrigation is a project management activity.

(2) If fuel is used to supply irrigation water to the relevant carbon estimation area, the net emissions from irrigation fuel for the reporting period must be calculated using the following formula:

Equation I3

Where:

total change in irrigation fuel emissions for the reporting period for

carbon estimation area A; t CO2-e.

= emissions from irrigation fuel use in year Y of the reporting period

in carbon estimation area A; t CO2-e.

= year of the reporting period, 1, 2, 3, 4 or 5.

= number of years in the reporting period.

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(3) If electricity is used to supply irrigation water to the relevant carbon estimation area, the net emissions from irrigation fuel for the reporting period must be calculated using the following formula:

Equation I4

Where:

total change in irrigation electricity emissions for the reporting period

for carbon estimation area A; t CO2-e.

= emissions from irrigation electricity in year Y of the reporting period

in carbon estimation area A; t CO2-e / y.

= year of the reporting period, 1, 2, 3, 4 or 5.

= number of years in the reporting period.

Division 4.6 Calculation of the carbon dioxide equivalent net abatement amount

4.36 Calculation of net abatement amount—general

For the purposes of paragraph 106(1)(c) of the Act, the carbon dioxide equivalent net abatement amount must be calculated in accordance with this Part.

4.37 Calculation of net abatement amount—net change in emissions for the carbon estimation area

(1) The net change in emissions for each carbon estimation area in the project must be calculated using the following formula:

Equation EALL1

Where:

= total change in emissions from all sources for the reporting period

for carbon estimation area A; t CO2-e.

= total change in livestock emissions for the reporting period for

carbon estimation area A (where relevant); t CO2-e.

= total change in synthetic fertiliser emissions for the reporting

period for carbon estimation area A (where relevant); t CO2-e.

= total change in lime emissions for the reporting period for carbon

estimation area A (where relevant); t CO2-e.

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= total change in residue and tillage event emissions for the reporting

period for carbon estimation area A (where relevant); t CO2-e.

= total change in irrigation fuel emissions for the reporting period for

carbon estimation area A (where relevant); t CO2-e.

= total change in irrigation electricity emissions for the reporting

period for carbon estimation area A (where relevant); t CO2-e.

= total change in emissions from all sources for carbon estimation

area A for the reporting period before the current reporting period.

(2) For the first reporting period, the value for must be zero.

(3) For subsequent reporting periods, the value for must be equal to or

less than zero to be included in Equation EALL1.

(4) If is a negative value for the reporting period, then must be

used in calculations of total change in emissions in the subsequent reporting period

as the value for .

4.38 Calculation of net abatement amount—net change in emissions for the project area

The net change in emissions for each carbon estimation area in the project must be calculated using the following formula:

Equation NA1

Where:

= total change in emissions from all sources for the reporting period

for the project area; t CO2-e.

= total change in emissions from all sources for the reporting period

for carbon estimation area A; t CO2-e.

A = carbon estimation area.

n = number of carbon estimation areas in the project area.

4.39 Calculation of net abatement amount—sequestration for project area

The sequestration for each carbon estimation area in the project must be calculated using the following formula:

Equation NA2

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Where:

= total sequestration for the project area for reporting period Rc;

t CO2-e.

= total sequestration for all project management activities for

reporting period Rc in carbon estimation area A; t CO2-e.

A = carbon estimation area.

n = number of carbon estimation areas in the project area.

4.40 Calculation of net abatement amount—net abatement for project

(1) The net abatement for the project area must be calculated using the following formula:

Equation NA3

Where:

= project area net abatement for the reporting period; t CO2-e.

= total sequestration for the project area for reporting period Rc;

t CO2-e.

= total change in emissions from all sources for the reporting period

for the project area; t CO2-e.

= project area net abatement for the reporting period; t CO2-e.

(2) For the first reporting period, the value for must be zero.

(3) For subsequent reporting periods, the value for must be equal to or less

than zero to be included in Equation NA3.

(4) If is a negative value for the reporting period, then must

be taken to be zero for the purpose of Equation NA3.

(5) If is a negative value for the reporting period, then must be

used in calculations of net abatement amount in the subsequent reporting period as

the value for .

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Part 5 Record-keeping and reporting requirements

Division 5.1 General

5.1 Application

For subsection 106(3) of the Act, the project proponent of an eligible offsets project to which this determination applies must comply with the record-keeping and reporting requirements in this Part.

Division 5.2 Record-keeping requirements

5.2 Records that must be created and kept—nutrient management and managing soil acidity projects

(1) For projects that undertake nutrient management as a project management activity, a project proponent must create and keep the following records for actions undertaken during the nominated permanence period:

(a) for all nutrient management projects:

(i) records of the method and results of all soil and/or plant testing;

(ii) copies of the annually updated nutrient management strategy for each relevant carbon estimation area; and

(iii) records of expert advice regarding nutrient management of the carbon estimation area;

(b) for a carbon estimation area that has synthetic fertiliser applied as part of the nutrient management project, records of the:

(i) fertiliser type, including the nutrient composition and percentage content of nutrient;

(ii) quantity of synthetic fertiliser that was applied to each relevant carbon estimation area;

(iii) method of application; and

(iv) timing of application; and

(c) for any carbon estimation area that has non-synthetic fertiliser applied as part of the nutrient management project:

(i) records of the fertiliser type, including a description of the type of manure, compost or other material applied;

(ii) records of the quantity of non-synthetic fertiliser that was applied to each relevant carbon estimation area;

(iii) records of the method of application;

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(iv) records of the timing of application; and

(v) for non-synthetic fertilisers containing straw, hay or crop residue— records demonstrating that the residue formed part of a waste-stream from intensive animal production, processing, manufacturing or municipal waste collection process before becoming part of the organic fertiliser.

(2) For projects that undertake management of soil acidity as a project management activity, a project proponent must create and keep the following records for each relevant carbon estimation area for actions undertaken during the nominated permanence period:

(a) records of the method and results of all soil testing;

(b) copies of the annually updated soil acidity management strategy for each relevant carbon estimation area;

(c) records of expert advice regarding management of soil acidity for the carbon estimation area;

(d) lime type in terms of carbonate composition;

(e) quantity of lime that was applied to each relevant carbon estimation area;

(f) method of application; and

(g) timing of application.

5.3 Records that must be created and kept—irrigation

For projects that involve expanding the area under irrigation, a project proponent must create and keep the following records:

(a) for all irrigation projects, records that demonstrate that:

(i) the newly irrigated area was not previously irrigated during the baseline emissions period; and

(ii) the project:

(A) acquired the additional water through a source specified in subsection 3.22(2); and

(B) did not undertake an ineligible activity specified in section 3.24.

(b) for projects that source additional water through efficiency improvements, records that:

(i) describe the nature of the efficiency improvements;

(ii) estimate the amount of water saved through the improvements and demonstrate how the estimation was arrived at;

(iii) demonstrate that the amount of water available as a result of the efficiency improvements is at least equal to the amount of water used to form the basis of this project management activity; and

(iv) identify any government funding received to undertake the efficiency improvements; and

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(c) for projects that source additional water through acquiring additional entitlements or allocation for in-stream water, records that:

(i) include certified copies of the newly acquired entitlement or allocation; and

(ii) demonstrate that the amount of water available under the newly acquired entitlement or allocation is at least equal to the amount of water used to form the basis of this project management activity.

5.4 Records that must be created and kept—pasture renovation

(1) For projects that undertake pasture renovation as a project management activity, the project proponent must create and keep records that demonstrate that:

(a) the carbon estimation area was under pasture for at least the 12 months immediately before the pasture renovation was implemented;

(b) the new pasture achieved the required ground-cover within the specified time;

(c) advice regarding follow-up management of the newly established pasture was received from a qualified person; and

(d) follow-up management in accordance with the advice of the qualified person was carried out at least every 5 years.

(2) The Regulator may request further evidence that demonstrates that any pasture maintenance activities recommended by the qualified person have been implemented.

5.5 Records that must be created and kept—projects carried out on pasture

(1) If a project proponent is using livestock baseline A, the proponent must create and keep records that identify the average annual livestock emissions over the baseline emissions period.

(2) If a project proponent is using livestock baseline B, the proponent must create and keep records that identify:

(a) the herd composition for the first year of the project;

(b) the assessed annual carrying capacity of the relevant carbon estimation areas at the beginning of the project; and

(c) an auditable description of the process that was used to calculate the carrying capacity of the relevant carbon estimation area from the relevant government body.

(3) For all projects carried out on pasture, the project proponent must maintain records that identify the average annual livestock emissions during each reporting period.

5.6 Records that must be created and kept—net abatement

(1) The proponent must maintain all records necessary to verify that the calculations to derive net abatement were carried out in accordance with this determination.

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(2) The records must be able to verify that all inputs to the calculations were correct and that the parameters in the calculations were accurate.

5.7 Records that must be created and kept—maintenance of project management activities

A project proponent must maintain all records necessary to verify that the project management activities continue to be carried out until the end of the nominated permanence period.

Division 5.3 Notification requirements

5.8 Notification of Regulator

For paragraph 106(3)(b) of the Act, a project proponent must notify the Regulator if:

(a) an eligible project management activity is stopped before the permanence period has ended;

(b) the proponent wishes to vary the management activities that make up the project; or

(c) an ineligible activity specified in Subdivision 3.3.10 has been carried out within a carbon estimation area.

Division 5.4 Offsets report requirements

5.9 Information in each offsets report

The following information must be included in each offsets report for a project to which this determination applies:

(a) net abatement attributable to the project during the reporting period in accordance with this determination;

(b) any changes in emissions from other sources within the greenhouse gas assessment boundary during the reporting period; and

(c) records demonstrating how the net abatement figure was calculated in accordance with Part 4 of this determination.

Note

1. All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See http://www.frli.gov.au.

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