EXPOSURE DRAFT

EXPOSURE DRAFT

Carbon Credits (Carbon Farming Initiative—Landfill Biofilters) Methodology Determination 2015

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

Dated[Date]

Greg Hunt [DRAFT ONLY—NOT FOR SIGNATURE]

Minister for the Environment

Contents

Part 1 —Preliminary4

1 Name4

2 Commencement4

3 Authority4

4 Duration4

5 Definitions4

6 References to factors and parameters from external sources5

Part 2 —Landfill biofilter projects6

7 Landfill biofilter projects6

Part 3 —Project requirements7

8 Operation of this Part7

9 Requirements for a landfill biofilter project7

10 Additionality requirements7

Part 4 —Net abatement amount8

Division 1 —Operation of this Part8

11 Operation of this Part8

12 Overview of gases accounted for in abatement calculations8

Division 2 —Calculating the net abatement amount8

13 Summary8

14 Net abatement amount (A)8

15 Landfill abatement amount (Al)9

Division 3 —Calculating the gross abatement (AG,l)9

16 Summary9

17 Gross abatement (AG,l)9

18 Methane oxidised by landfill biofilters that was not generated from carbon tax waste (MBio,NCT,l)9

19 Proportion of methane oxidised by landfill biofilters that was not generated from carbon tax waste (WNCT,l) 10

20 Methane generated in year y (MGen,l,y)10

21 Methane oxidised by landfill biofilters (MBio,l)11

22 Methane oxidised by each landfill biofilter (MBio,b,l)11

23 Methane sent to landfill biofilter (MSent,b,h)11

24 Oxidation factor for landfill biofilter (OFb,h)12

25 Oxidation factor determined from methane loading flux (OFMLF,b,h)12

26 Methane loading flux for landfill biofilter (MLFb,h)12

27 Oxidation factor determined from the concentration of methane above landfill biofilter (OFWS,b,h)13

28 Methane oxidised by landfill biofilters that would have been oxidised near the surface (MBio,Ox,l)13

Division 4 —Calculating the baseline abatement14

29 Summary14

30 Baseline abatement (AB,l)14

31 Proportion of methane that would have been destroyed without the project (WB,l)14

Part 5 —Reporting and monitoring requirements15

Division 1 —Offsets report requirements15

32 Operation of this Division15

33 Information that must be included in an offsets report15

34 Determination of certain factors and parameters16

Division 2 —Monitoring requirements16

35 Operation of this Division16

36 Requirements to monitor certain parameters16

37 Consequences of not meeting requirement to monitor certain parameters19

Part 6 —Dividing a landfill biofilter project21

38 Partial reporting21

Schedule 1 —Determining regulatory proportion22

Part 1 —Operation of this Schedule22

1 Operation of this Schedule22

Part 2 —Regulatory proportion determined using regulatory guidelines for landfill23

2 Regulatory proportion determined using regulatory guidelines for landfill23

3 Regulatory proportion of methane oxidised23

4 Annual amount of methane permitted to be emitted23

5 Annual amount of methane permitted to be emitted from final and intermediate cover area (MReg,FI,l) 23

6 Annual amount of methane permitted to be emitted from daily/operational cover24

Part 3 —Regulatory proportion determined by asking environmental regulator 26

7 Regulatory proportion determined by asking environmental regulator26

Part 4 —Regulatory proportion determined by independent expert29

8 Regulatory proportion determined by independent expert29

Part 1—Preliminary

1 Name

This is the Carbon Credits (Carbon Farming Initiative—Landfill Biofilters) Methodology Determination 2015.

2 Commencement

This determination commences on the day after it is registered.

3 Authority

This determination is made under subsection106(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.

4 Duration

This determination remains in force for the period that:

(a)begins when this instrument commences; and

(b)ends on the day before this instrument would otherwise be repealed under subsection50(1) of the Legislative Instruments Act 2003.

This determination ceases to be in force at the end of the day before this instrument would otherwise be repealed under subsection50(1) of the Legislative Instruments Act 2003.

5 Definitions

In this determination:

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

appropriate measuring requirements has the meaning given by subsection36(4).

biofiltration system, in relation to a landfill, means a system consisting of pipes that collect landfill gas and conveys it to one or more landfill biofilters.

biofilter media, in relation to a landfill biofilter, is a soil, sand or aged compost like material that has properties designed to harbour an active methanotrophic mircroorganism community.

carbon tax waste, in relation to a landfill, means waste that was deposited in the landfill between 1July 2012 and 30June 2014.

daily cover/operational area, in relation to a landfill, means the area of the landfill normally covered by material used to cover a day’s deposition of waste in active landfill waste disposal areas of the landfill.

final cover area, in relation to a landfill, means the area of the landfill normally covered by material used to cover previously active landfill waste disposal areas of the landfill that have reached final height and are unlikely to be used for waste disposal again.

intermediate cover area¸ of a landfill, means an area of the landfill that:

(a)will not be used for waste disposal for an extended period of time (typically a few weeks to a few months); and

(b)is covered by material normally used to cover previously active landfill working areas.

landfill means a site where waste is or was buried under a permission (however described) given under the law of a State or Territory.

landfill biofilter, in relation to a biofiltration system, means a purpose built section of a landfill that consists of biofilter media.

landfill biofilter project—see section 7.

landfill gas means gas generated from anaerobic decomposition of biological material at a landfill.

landfill gas collection system means a system to collect and combust landfill gas.

methanotrophic microorganisms means single-cell organisms, that use methane and oxygen as their energy source, producing carbon dioxide as a by-product of this methane oxidation process.

monitoring requirements means the requirements set out in section36.

net abatement amount, of a landfill biofilter project for a reporting period, means the carbon dioxide equivalent net abatement amount for the project in the reporting period for the purposes of paragraph 106(1)(c) of the Act (see also section11).

NGER (Measurement) Determination means the National Greenhouse and Energy Reporting (Measurement) Determination2008.

NGER Regulations means the National Greenhouse and Energy Reporting Regulations2008.

non-monitored period has the meaning given by subsection37(1).

6 References to factors and parameters from external sources

(1)If a calculation in this determination includes a factor or parameter that is defined or calculated by reference to another instrument or writing, the factor or parameter to be used for a reporting period is the factor or parameter referred to in, or calculated by reference to, the instrument or writing as in force at the end of the reporting period.

(2)Subsection(1) does not apply if:

(a)this determination specifies otherwise; or

(b)it is not possible to define or calculate the factor or parameter by reference to the instrument or writing as in force at the end of the reporting period.

Part 2—Landfill biofilter projects

7 Landfill biofilter projects

(1)For paragraph106(1)(a) of the Act, this determination applies to an offsets project if:

(a)it involves the use of one or more biofiltration systems on landfills to collect and oxidise landfill gas; and

(b)eachbiofiltration system can be reasonably expected to result in eligible carbon abatement.

(2)A project covered by subsection(1) is a landfill biofilter project.

Part 3—Project requirements

8 Operation of this Part

For paragraph 106(1)(b) of the Act, this Part sets out requirements that must be met for a landfill biofilter project to be an eligible offsets project.

9 Requirements for a landfill biofilter project

(1)A landfill biofilter project may relate to one or more landfills.

(2)The project must cover the whole of each landfill to which it relates.

Note:This subsection prevents a proponent from operating a project only in relation to a selected portion of a landfill where, for example, gas might be easier to extract.

(3)The project must involve the installation of a biofiltration system at a landfill for the purpose of collecting and oxidising methane in landfill gas.

(4)There must have been no action to deliberately destroy methane in landfill gas at the landfill since the landfill project cut-off date.

(5)For subsection (4), the landfill project cut-off date means the earlier of the following:

(a)24April 2014;

(b)3 years before the application for the declaration of the project as an eligible offsets project is made.

(6)For subsection (4), an action to deliberately destroy methane in landfill gas includes using a landfill biofilter, a landfill phytocap or a landfill gas collection system at the landfill.

10 Additionality requirements

For subparagraph27(4A)(b)(ii) of the Act, a requirement in lieu of the regulatory additionality requirement is that the project is a landfill biofilter project.

Part 4—Net abatement amount

Division 1—Operation of this Part

11 Operation of this Part

For paragraph106(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 landfill biofilter project that is an eligible offsets project.

NoteThis is called the net abatement amount in this determination (see section5).

12 Overview of gases accounted for in abatement calculations

The following table provides an overview of the greenhouse gas abatement and emissions that are relevant to working out the net abatement amount for a landfill biofilter project.

Greenhouse gas abatement and emissions
Item / Relevant calculation / Emissions source / Greenhouse gas
1 / Baseline abatement / Destruction of methane in landfill gas to meet a regulatory requirement / Methane (CH4)
2 / Baseline abatement / Destruction of methane in landfill gas by oxidation in the near surface of the landfill / Methane (CH4)
3 / Project abatement / Destruction of methane in landfill gas by oxidation using a biofilter / Methane (CH4)

Division 2—Calculating the net abatement amount

13 Summary

The net abatement amount is calculated as the sum of landfill abatement amount for all landfills of the project.

The landfill abatement amount is the gross abatement minus baseline abatement for each landfill.

14 Net abatement amount (A)

The net abatement amount for the landfill biofilter project for the reporting period is worked out using the equation (equation 1):

where:

A is the net abatement amount for the reporting period in tonnes CO2-e.

nis the number of landfills in the landfill biofilter project over which abatement is measured for the reporting period.

Al is the landfill abatement amount, in tonnes CO2-e, for landfill l of the landfill biofilter project, given by equation 2.

15 Landfill abatement amount (Al)

For equation 1, Al is worked out using the equation (equation 2):

where:

AG,l is the gross abatement for landfilll, for the reporting period, in tonnes CO2e, given by equation 3.

AB,l is the baseline abatement for landfill l, for the reporting period, in tonnes CO2e, given by equation 13.

Division 3—Calculating the gross abatement (AG,l)

16 Summary

Gross abatement is the amount of methane oxidised by the biofilters minus the amount of methane that would have been oxidised in the surface of the landfill.

17 Gross abatement (AG,l)

For equation 1, AG,l is worked out using the equation (equation3):

where:

MBio,NCT,l is the methane oxidised by the landfill biofilters of landfill l during the reporting period that was not generated from carbon tax waste, in tonnes CO2e, given by equation 4.

MBio,Ox,l is the methane oxidised by the landfill biofilters of landfill l during the reporting period that was not generated from carbon tax waste and that, without the project, would have been oxidised in the near surface of the landfill, in tonnes CO2e, given by equation 12.

18 Methane oxidised by landfill biofilters that was not generated from carbon tax waste (MBio,NCT,l)

For equations 3, 12 and 13, MBio,NCT,l is worked out using the equation (equation 4):

where:

γ is the factor used to convert cubic metres of methane at standard conditions to tonnes of CO2e worked out using Part5.2 of the NGER (Measurement) Determination.

WNCT,l is the proportion of the methane oxidised by the landfill biofilters of landfill l during the reporting period that was not generated from carbon tax waste, given by equation 5.

MBio,l is the methane that was oxidised by the landfill biofilters of landfill l during the reporting period, in cubic metres, given by equation 6.

19 Proportion of methane oxidised by landfill biofilters that was not generated from carbon tax waste (WNCT,l)

(1)For equation 4, WNCT,l is worked out using the equation (equation5):

where:

n is the number of financial years covered (either full or partial) by the reporting period.

Note:The summation of this equation over financial years is to cover circumstances where reporting periods span financial years.

MBio,l,y is the methane oxidised by all landfill biofilters of landfill l in that part of the reporting period that is in financial year y, in cubic metres, worked out using equation 6 as if it were the whole of the reporting period.

MBio,l is the methane oxidised by all the landfill biofilters of landfill l during the reporting period, in cubic metres, given by equation 6.

MCTW,l,y is the methane generated by landfill l from carbon tax waste in financial year y, in tonnes of CO2e, given by subsection(2).

MGen,l,y is the methane generated by landfill l in financial year y, in tonnes CO2e, given by section 20.

Methane generated from carbon tax waste in financial year y (MCTW,l,y)

(2)For subsection (1), MCTW,l,y is equivalent to parameter CH4gen calculated:

(a)under Part5.2 of the NGER (Measurement) Determination; and

(b)in accordance with the following:

(i)the year y is a financial year that the reporting period partially or fully covers;

(ii)the calculation is based only on carbon tax waste.

Note:See section 6 for the version of NGER (Measurement) Determination that must be used.

20 Methane generated in year y (MGen,l,y)

(1)This section sets out how to calculate MGen,l,y, the methane generated by landfill l in a 12 month period y, in tonnes CO2e, for the following provisions:

(a)equation 5;

(b)equation 15 (clause 3 of Schedule 1);

(c)clause 6 of Schedule 1;

(d)items 5 and 6 of the table in subclause 7(2) of Schedule 1.

(2)MGen,l,y is equivalent to parameter CH4gen calculated:

(a)under Part5.2 of the NGER (Measurement) Determination; and

(b)withmethane generation determined for the whole landfill as if it were a single subfacility zone.

(3)If the 12 month period covers 2 financial years, CH4gen is calculated by:

(a)calculatingCH4gen for each financial year covered by the 12 month period; and

(b)multiplying the amount of CH4gen for each financial year by the proportion of days in the financial year covered by the 12 month period; and

(c)summing the results.

Note:For equation 5, the 12 month period will always be a single financial year..

21 Methaneoxidised by landfill biofilters (MBio,l)

For equation 5, MBio,l is worked out using the equation (equation 6):

where:

pis the number of biofilters in landfill l of the landfill biofilter project.

MBio,b,l is the methane oxidised by landfill biofilterb of landfill l during the reporting period, in cubic metres, given by equation7.

22 Methane oxidised by each landfill biofilter (MBio,b,l)

For equation 6, MBio,b,l is worked out using the equation (equation7):

where:

q is the number of hours in the reporting period.

MSent,b,h is the methane sent to landfill biofilterb in hourh, in cubic metres, given by equation 8.

OFb,h is the oxidation factor for landfill biofilterb for hour h, given by equation 9.

23 Methane sent to landfill biofilter (MSent,b,h)

(1)For equations 7 and 11, MSent,b,h is worked out using the equation (equation 8):

where:

QLFG,b,his the landfill gas sent to landfill biofilterb in hourh, in cubic metres, worked out in accordance with the monitoring requirements.

WLFG,CH4 is the proportion of the volume of the landfill gas that is methane, which is:

(a)set out in section5.14C of the NGER (Measurement) Determination; or

(b)worked out in accordance with the monitoring requirements.

(2)If the monitoring requirements are used to work out WLFG,CH4, then, the monitoring requirements must be used for that purpose for the remainder of the project.

(3)Subsection(2) has effect subject to section37.

24 Oxidation factor for landfill biofilter (OFb,h)

For equation 7, OFb,h is worked out using the equation (equation 9):

where:

OFMLF,b,h is the oxidation factor for landfill biofilterb determined from the methane loading flux for hour h, given by equation10.

OFWS,b,h is the oxidation factor determined from the concentration of methane above biofilterb for hour h, given by section27.

25 Oxidation factor determined from methane loading flux (OFMLF,b,h)

(1)For equation 9, OFMLF,b,h is worked out using the equation (equation10):

where:

MLFb,h is the methane loading flux for landfill biofilterb in hourh, in grams of methane per square metre per hour, given by equation10.

(2)Despite subsection (1), if MLFb,h is less than 2.8 grams of methane per square meter per hour, OFMLF,b,h is taken to be1.

26 Methane loading flux for landfill biofilter (MLFb,h)

For equation 9, MLFb,h is worked out using the equation (equation11):

where:

is the factor to convert cubic metres of methane to grams of methane, and is678.4.

MSent,b,his the methane sent to biofilterb in hourh, in cubic metres, given by equation 8.

Sb is the surface area of biofilterb, in square metres, worked out in accordance with the monitoring requirements.

27 Oxidation factor determined from the concentration of methane above landfill biofilter (OFWS,b,h)

(1)For equation 8, OFWS,b,h is:

(a)if the conditions in subsection (2) are satisfied—1;

(b)if a condition in subsection (3) is satisfied—0;

(c)if a condition in neither subsection (2) or (3) is satsified—0.6.

(2)For paragraph (1)(a), the conditions are that CAv,b,h and CMax,b,h are 0 parts per million.

(3)For paragraph (1)(b), the conditions are:

(a)CAv,b,h is greater than 50 parts per million; or

(b)CMax,b,h is greater than 500 parts per million.

(4)For subsections (2) and (3):

CAv,b,h is the average concentration of methane near the surface of landfill biofilterb for hourh, and is taken to be:

(a)the most recent value of CAv,b,h that is determined in accordance with the monitoring requirements; or

(b)if the value of CAv,b,h is yet to be determined—the first value of CAv,b,h that is determined in accordance with the monitoring requirements after hourh.

CMax,b,h is the maximum concentration of methane near the surface of landfill biofilterb for hourh, and is taken to be:

(a)the most recent value of CMax,b,h that is determined in accordance with the monitoring requirements; or

(b)if the value of CMax,b,h is yet to be determined—the value of CMax,b,h that is determined in accordance with the monitoring requirements after hourh.

28 Methane oxidised by landfill biofilters that would have been oxidised near the surface (MBio,Ox,l)

For equation 3, MBio,Ox,lis worked out using the equation (equation 12):

where:

MBio,NCT,l is the methane oxidised by the landfill biofilters of landfill l during the reporting period that was not generated from carbon tax waste, in tonnes CO2e, given by equation 4.

OF is the oxidation factor for methane near the surface of the landfill set out in the definition of OF in subsection5.4(1) of the NGER (Measurement) Determination.

WB,l is the proportion of the methane oxidised by the landfill biofilters of landfill l in the reporting period that would have been destroyed without the project, given by equation 14.