national greenhouse and energy reporting (measurement

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1 EXPLANATORY STATEMENT Issued by the Authority of the Minister for Climate Change and Energy Efficiency, the Honourable Greg Combet AM MP National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2011 (No. 1) The National Greenhouse and Energy Reporting Act 2007 (the Act) established the National Greenhouse and Energy Reporting (NGER) system which is a national system for reporting greenhouse gas emissions, energy consumption and energy production by Australian corporations. The National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the Determination) was made under subsection 10(3) of the Act, which provides for the Minister to determine methods, or criteria for methods, for the measurement of (a) greenhouse gas emissions; (b) the production of energy; and (c) the consumption of energy. This Instrument will amend the National Greenhouse and Energy Reporting (Measurement) Determination 2008. The National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2011 (No.1) (the Instrument) aims to achieve the following: update scope 2 emissions factors for the consumption of electricity which require annual adjustment in line with dispatch decisions within the National Electricity Market made throughout the last financial year; respond to feedback from stakeholders and industry groups; and provide clarification of methodologies to improve the consistency and accuracy of emission estimates. The Instrument will commence on registration and apply to the 2011-2012 financial year. It will affect NGER reports submitted by corporations in October 2012. Details of the amendments to the Instrument are set out in the Attachment. The Instrument is a legislative instrument for the purposes of the Legislative Instruments Act 2003. Consultation In drafting these amendments NGER reporting entities and other interested stakeholders have been consulted. With the release of the initial Determination, a commitment was made to review the methods and factors provided within 5 years. To meet that commitment, the Department of Climate Explanatory Statement to F2011L01315

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Page 1: National Greenhouse and Energy Reporting (Measurement

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EXPLANATORY STATEMENT

Issued by the Authority of the Minister for Climate Change and Energy Efficiency, the

Honourable Greg Combet AM MP

National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2011

(No. 1)

The National Greenhouse and Energy Reporting Act 2007 (the Act) established the National

Greenhouse and Energy Reporting (NGER) system which is a national system for reporting

greenhouse gas emissions, energy consumption and energy production by Australian

corporations.

The National Greenhouse and Energy Reporting (Measurement) Determination 2008 (the

Determination) was made under subsection 10(3) of the Act, which provides for the Minister

to determine methods, or criteria for methods, for the measurement of (a) greenhouse gas

emissions; (b) the production of energy; and (c) the consumption of energy.

This Instrument will amend the National Greenhouse and Energy Reporting (Measurement)

Determination 2008.

The National Greenhouse and Energy Reporting (Measurement) Amendment Determination

2011 (No.1) (the Instrument) aims to achieve the following:

update scope 2 emissions factors for the consumption of electricity which require annual

adjustment in line with dispatch decisions within the National Electricity Market made

throughout the last financial year;

respond to feedback from stakeholders and industry groups; and

provide clarification of methodologies to improve the consistency and accuracy of emission

estimates.

The Instrument will commence on registration and apply to the 2011-2012 financial year. It

will affect NGER reports submitted by corporations in October 2012.

Details of the amendments to the Instrument are set out in the Attachment.

The Instrument is a legislative instrument for the purposes of the Legislative Instruments Act

2003.

Consultation

In drafting these amendments NGER reporting entities and other interested stakeholders have

been consulted.

With the release of the initial Determination, a commitment was made to review the methods

and factors provided within 5 years. To meet that commitment, the Department of Climate

Explanatory Statement to F2011L01315

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Change and Energy Efficiency (the Department) released the National Greenhouse and

Energy Reporting (Measurement) Determination Discussion Paper in August 2010. Thirty-

eight (38) submissions were received, covering the range of issues identified in the paper.

After reviewing the submissions and the outcomes of consultation with industry groups, the

government released the NGER (Measurement) Amendment Determination Consultation

Draft in May 2011 for further consultation. At the same time, the Department released a

detailed response paper of issues addressed in the discussion paper. The Department received

a further 12 submissions from industry and the public on the consultation draft. After

consideration of the submissions final refinements were made to the Instrument, consistent

with the results of consultation.

Background

The initial Determination was the result of comprehensive consultation with business and

other stakeholders between May 2005 and June 2008 in relation to the Act, the National

Greenhouse and Energy Reporting Regulations 2008 (the Regulations) and the Instrument.

The initial Instrument was the subject of specific consultations, including the release of two

documents for public comment: National Greenhouse and Energy Reporting System,

Technical Guidelines for the Estimation of Greenhouse Emissions and Energy at Facility-

Level; and Energy, Industrial Process and Waste Sectors in Australia - Discussion Paper and

a related overview paper. Over 70 formal submissions were received from interested

organisations and individuals.

A range of the issues identified in the Discussion Paper and raised during the consultation

process have been addressed in this amendment to the Instrument. A number of issues are

also being addressed through amendments to the Regulations, which will be implemented in

2011.

Overview of the National Greenhouse and Energy Reporting (Measurement)

Determination 2008

The Act established the legislative framework for the NGER system. The Act provides for an

integrated reporting system with the objectives of:

informing government policy formulation and the Australian public;

meeting Australia’s international reporting obligations;

assisting Commonwealth, State and Territory government programs and activities;

underpinning the introduction of an emissions trading scheme in the future; and

avoiding duplication of similar reporting requirements in the States and Territories.

The Act makes reporting mandatory for corporations whose energy production, energy use,

or greenhouse gas emissions meet certain specified thresholds.

Explanatory Statement to F2011L01315

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The Determination, made under subsection 10(3) of the Act, provides the criteria for

establishing methodologies and methods for estimating and measuring the following items

from the operation of facilities:

greenhouse gas emissions;

the production of energy; and

the consumption or energy.

The structure of the Determination is designed to facilitate the integration of corporate and

facility level data provided under the Act with international data standards on greenhouse gas

emissions.

The scope of the Determination is given by the following categories of emission sources:

fuel combustion – emissions from the combustion of fuel for energy (see chapter 2);

fugitive emissions from the extraction, production, flaring, processing and distribution

of fossil fuels (see chapter 3);

industrial process emissions where a mineral, chemical or metal product is formed

using a chemical reaction that generates greenhouse gases as a by-product (see chapter

4); and

waste emissions from waste disposal – either in landfill, as management of

wastewater or from waste incineration (see chapter 5).

The most important source is fuel combustion, which accounts for over 60 per cent of the

emissions reported in the national greenhouse gas inventory.

The scope of the Determination does not include land based emissions covered by the IPCC

categories ‘Agriculture’ and ‘Land Use, Land Use Change and Forestry’. Emissions from

fuel combustion by land based industries are, nonetheless, covered by this Determination.

Methods of measurement

The Determination provides methods that allow for both direct emissions monitoring and the

estimation of emissions through the tracking of observable, closely-related variables. This

framework reflects the approaches of the international guidelines governing the estimation of

national greenhouse gas inventories and international practice such as for the EU Guidelines

for the Monitoring and Reporting of Greenhouse Gas Emissions and the US Environment

Protection Agency Greenhouse Gas Mandatory Reporting Rule.

At its simplest, emissions may be estimated by reference to reportable data such as fossil fuel

consumption, evidenced by invoices, and the use of specified emission factors provided in the

Determination. For emissions from fuel combustion, for example, data on fuel consumption

would be multiplied by a specific emission factor for that fuel to generate an emissions

estimate. A similar approach was used for over a decade prior to the commencement of the

Explanatory Statement to F2011L01315

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NGER system in the voluntary reporting program Greenhouse Challenge Plus and, before

that, Greenhouse Challenge.

More complex measurement processes may produce more accurate estimates at a facility

level through sampling and analysis of the carbon content within fuel consumed and other

qualities that affect actual emissions generated by its combustion at a facility. This approach

to emissions estimation has been used for some time, especially in the electricity sector under

the Generator Efficiency Standards program.

Direct monitoring, while not common, is an important approach to emissions estimation and

is mandatory for the measurement of emissions associated with underground coal mining

activities. State legislation requires methane levels to be monitored directly for occupational

health and safety reasons.

By drawing on existing emissions estimation practices, where possible, the Amendment

Determination aims to minimise reporting burdens on corporations and encourage reporters

to balance the costs of using higher order methods with the benefits of potentially more

accurate emissions estimates.

The Determination provides four different methods of estimating emissions for most

emissions sources. A summary of each method used in the Determination is provided below.

Method 1: The National Greenhouse Accounts default method

Method 1 provides a class of estimation procedures derived directly from the methodologies

used by the Department for the preparation of the National Greenhouse Accounts. This also

ties Method 1 to the international guidelines adopted by the UN Framework Convention on

Climate Change for the estimation of greenhouse gas emissions.

Method 1 specifies the use of a designated emissions factor in the estimation of emissions.

These emissions factors are national average factors determined by the Department using the

Australian Greenhouse Emissions Information System (AGEIS). Method 1 is most useful

and appropriate for emission sources of a homogenous nature, such as emissions from the

combustion of a liquid fuels, where the emissions per unit of fuel combusted across all

reporting facilities will be similar.

Method 2: Facility specific methods using Australian or international standards provided in

the Determination or equivalent.

Method 2 enables corporations to undertake additional measurements, for example, of fuel

inputs, in order to gain more accurate estimates of emissions for that facility. Australian and

International standards provide the benchmark for procedures used for the analysis of fuel

inputs.

Method 2 is most likely to be useful for fuels which exhibit variability in key qualities such

as carbon content from facility to facility. This method is based on technical guidelines that

Explanatory Statement to F2011L01315

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existed under the Generator Efficiency Standards program. The possibility to report using

this higher order method is encouraged by the Department for all major consumers of fossil

fuels.

Method 3: Facility specific sampling and analysis in line with Australian and international

standards provided in the Determination.

Method 3 builds upon Method 2 and requires reporters to comply with Australian or

equivalent standards for sampling (of fuels or raw materials) as well as standards for the

analysis of fuels.

Method 4: Direct monitoring of emissions systems, either on a continuous or periodic basis.

Method 4 aims to directly monitor emissions arising out of a particular activity and can

provide high level accuracy in certain circumstances. This method differs from lower order

methods in its focus on the direct outputs of the activity rather than the inputs. Direct

monitoring occurs in the area of underground coal mining reflecting the existing need to

closely and accurately monitor emissions for health and safety reasons.

As for Methods 2 and 3, there is a substantial body of documented procedures on monitoring

practices and State and Territory government regulatory experience that provide the principal

sources of guidance for the establishment of such systems.

Options: Different methods for different sources

Reporters may select different methods for each source. The Reporter may elect to use a

different method based on the nature and content of the operation and emissions, subject to

certain restrictions. In part, these differences reflect method availability. For example, for

solid fuels, only Method 1 has been provided for methane and nitrous oxide, reflecting the

minor nature of the emission sources, whereas four methods are available for carbon dioxide.

Explanatory Statement to F2011L01315

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ATTACHMENT A

Details of the National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2011 (No.1)

Item 1 – Name of Determination

This item provides that the title of the Instrument is the National Greenhouse and Energy

Reporting (Measurement) Amendment Determination 2011 (No. 1).

Item 2 – Commencement

This item provides for the amendments in Schedule 1 to commence on 1 July 2011. The

amendments in Schedule 2 commence on 1 July 2012

Item 3 – Amendment of National Greenhouse and Energy Reporting

(Measurement) Determination 2008

This item outlines that Schedule 1 and 2 amend the National Greenhouse and Energy

Reporting (Measurement) Determination 2008 (the Determination).

Item 4 – Application

This item clarifies that the amendments made in Schedule 1 will apply to the 2011-2012

financial year and subsequent financial years. Schedule 2 will apply to the 2012-2013

financial year and subsequent financial years.

SCHEDULE 1 AMENDMENTS

The explanations of amendments provided below are grouped by division within the NGER

Determination. Individual amendment items are referenced to the amendment number as

stated in the NGER Amendment Determination 2011.

CHAPTER 1 GENERAL

The proposed amendments to Chapter 1 of the Determination add additional definitions

required to complement changes to the manufacture of solid fuels.

Part 1.1 Overview, Division 1.1.2 Definitions and Interpretations

Item Commentary

[1]-[3] Adds definitions for coal briquettes, pyrolysis of coal and corrects the title

of the GHG Uncertainty Protocol.

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Part 1.2 General, Division 1.2.1 Measurement and Standards

The amendment changes the definition of completeness to provide more certainty for

industry. The completeness principle is clarified to only include emissions sources that are

explicitly identified within Determination section 1.10.

Item Commentary

[4] Amends the definition of completeness.

Part 1.3 Direct measurement of emissions, Division 1.3.2 Operation of method

4 (CEM)1, Division 1.3.3 Operation of method 4 (PEM)2

The amendment clarifies that for sources where there is no Method 1 available in the

Determination, the Method 4 estimations using continuous or periodic emissions monitoring

are not required to be reconciled.

Item Commentary

[5] Includes an exclusion where there is no Method 1 available for the source.

CHAPTER 2 FUEL COMBUSTION

Part 2.2 Emissions released from the combustion of solid fuels, Division 2.2.1

Preliminary

The amendment addresses concerns of small electricity generators in relation to the use of

higher order methods to estimate emissions from the combustion of their primary solid fuels

where these requirements do not exist for other industries. The amendment establishes a

threshold excluding small generators from the requirement to use higher order methods based

on thresholds used in the Generator Efficiency Standards program.

Item Commentary

[6] Grammatical correction.

1 Continuous Emissions Monitoring

2 Periodic Emissions Monitoring

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[7] Method 2 or higher must be used when the principle activity of the facility

is electricity generation, and the generating unit has the capacity to

produce 30 megawatt or more of electricity, and generates more than

50,000,000 kilowatt hours of electricity in a reporting year.

Part 2.2 Emissions released from the combustion of solid fuels, Division 2.2.3

Method 2 – emissions from solid fuels

The furnace ash and fly ash sampling requirements to identify key characteristics of ash,

including carbon content, are set out in the Determination. The amendment allows alternate

collection methods to be used when the those methods are not feasible.

The existing approach of sampling fly ash as a function of load has a significant cost

imposition and evidence has shown that the variation in carbon in relation to load to be

relatively narrow for large base load electricity generators. Exceptions occur in cases where

load profiles vary significantly throughout the operation of the facility, or at times when

operating conditions change.

Item Commentary

[8] Grammatical correction.

[9] Allow the use of alternate furnace ash collection methods that provide

representative sampling, where technical and safety concern make clauses

(a) and (b) not feasible.

[10] Allows the use of alternate fly ash collection procedures that provides

representative samples, where technical and safety concerns make the

procedures outlined in the table in section 2.11 not feasible.

The sampling frequencies for fly ash in the table in section 2.11 are

amended to include additional sampling obligations when there are

significant changes in operating conditions. If there are no changes to

operating conditions the existing sampling frequencies are maintained.

Part 2.3 Emissions released from the combustion of gaseous fuels, Division

2.3.1 Preliminary

Similarly to the amendment to Part 2.2, this amendment addresses concerns of small

electricity generators in relation to the use of higher order methods to estimate emissions

from the combustion of their primary gaseous fuels, where these requirements do not exist for

other industries. The amendment establishes a threshold excluding small generators from the

requirement to use higher order methods based on thresholds used in the Generator

Efficiency Standards program.

Explanatory Statement to F2011L01315

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Item Commentary

[11] Method 2 or higher must be used when the principle activity of the facility

is electricity generation, and the generating unit has the capacity to

produce 30 megawatt or more of electricity, and generates more than

50,000,000 kilowatt hours of electricity in a reporting year.

Part 2.4 Emissions released from the combustion of liquid fuels, Division

2.4.5A Methods for estimating emissions from carbon dioxide using an

estimated oxidation factor

Petroleum based oils and greases are regularly consumed for transport purposes, particularly

within combustion engines. This amendment clarifies the application of the method to

include the consumption of petroleum based oils and greases for transport purposes. Minor

clarifications have also been included to make the Determination consistent.

Item Commentary

[12] Removes the restriction ‘for stationary energy’ purposes and clarifies the

means by which the quantity is to be measured through reference to 2.4.6.

[13] References to the quantity of petroleum based oils and greases are aligned

throughout the section by replacing Cpog with Qpog. In addition, the term

‘waste oil’ is replaced with ‘transferred offsite’ to avoid confusion. Some

oils transferred offsite are not considered waste.

Part 2.5, Emissions released from fuel use by particular industries, Division

2.5.2 Energy – manufacture of solid fuels

The manufacture of solid fuels is undertaken using a range of materials and techniques. The

current Determination restricts the estimation of emissions to fuels manufactured within coke

ovens. Char production, for example, had been identified as another source of emissions. In

order to accommodate this, Division 2.5.2 will apply to the manufacture of all solid fuels and

use a carbon mass balance approach. The division is also split to distinguish those production

plants that form part of an integrated metalwork, which are referred to Part 4.4, and those

manufactured separately, that will use the carbon mass balance approach outlined in

Subsection 2.58.

Item Commentary

[14] Replacement of the source name to remove coke ovens restriction.

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[15] Specifies the scope of fuel manufacturing covered within the source to

those produced through the pyrolysis of coal or coal briquette process.

Further definitions have been added in Section 1.08. Other solid fuels that

can be reported within this source include: coke oven coke, coke breeze,

foundry coke and retort coke; coal char and coal briquettes.

[16] Establishes a carbon mass balance approach to measuring emissions for

the manufacture of solid fuels. Where the fuel is manufactured as part of

an integrated metal production process, the emissions are to be estimated

using Part 4.4. For all other circumstances the method outlined in

subsection (3) must be used.

[17] Details the estimation approach and parameters for calculating emissions

from the manufacture of solid fuels using a carbon mass balance approach.

CHAPTER 3 FUGITIVE EMISSIONS

Part 3.2 Coal Mining – Fugitive emissions, Division 3.2.2 Underground mines

Coal mine waste gases that mainly consist of methane (CH4) may include a component of

carbon dioxide (CO2) gas that is not combusted during flaring. The amendment allows the

CO2 component to be accounted for separately from the majority methane component that is

flared. This results in a more accurate emissions estimate.

Item Commentary

[18] Corrects a missing reference.

[19] Refines the formula for estimating CO2 emissions from coal mine waste

gas, by allowing reporters to sample and account for the CO2 within the

waste gas separately from the flared methane component. This applies

only to Method 2 and higher.

Part 3.3 Oil and natural gas – fugitive emissions, Division 3.3.2 Oil or gas

exploration

The fugitive flaring emissions from oil or gas exploration may include a component of carbon

dioxide (CO2) gas that is not combusted during flaring. The amendment allows the CO2

component to be accounted for separately from the flared methane (CH4) component. This

results in a more accurate emissions estimate. The existing Method 2 for methane emissions

has been withdrawn as throughput based emission factors are inappropriate for Method 2.

Explanatory Statement to F2011L01315

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Item Commentary

[20] Withdrawal of Method 2 for estimating methane emissions.

[21] Refines the formula for estimating CO2 emissions from oil or gas

exploration, by allowing reporters to sample and account for the CO2

separately from the flared methane component. This applies only to

Method 2 for gaseous fuels and higher.

Part 3.3 Oil and natural gas – fugitive emissions, Division 3.3.3 Crude oil

production

The fugitive flaring emissions from crude oil production may include a component of carbon

dioxide (CO2) gas that is not combusted during flaring. The amendment allows the CO2

component to be accounted for separately from the flared hydrocarbon component. This

results in a more accurate emissions estimate. The existing Method 2 for methane emissions

has been withdrawn as throughput based emission factors are inappropriate for Method 2.

Item Commentary

[22] Withdraws the availability of Method 2 for estimating methane emissions.

[23] Clarifies the removal of Method 2 for methane estimation.

[24] Refines the formula for estimating CO2 emissions from crude oil

production, by allowing reporters to sample and account for the CO2

within the gas separately from the flared methane component. This applies

only to Method 2 for gaseous fuels and higher.

[25] Grammatical correction.

[26] Withdraws Method 2 for estimating methane emissions for crude oil

production (flared).

Part 3.3 Oil and natural gas – fugitive emissions, Division 3.3.5 Crude oil

refining

The fugitive flared emissions from crude oil refining may include a component of carbon

dioxide (CO2) gas that is not combusted during flaring. The amendment allows the CO2

component to be accounted for separately from the flared hydrocarbon component. This

results in a more accurate emissions estimate. The existing Method 2 for methane emissions

has been withdrawn as throughput based emission factors are inappropriate for Method 2.

Explanatory Statement to F2011L01315

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Item Commentary

[27] Withdraws the availability of Method 2 for estimating methane emissions.

[28] Clarifies the withdrawal of Method 2 for methane estimation.

[29] Subscript correction.

[30] Refines the formula for estimating CO2 emissions from crude oil refining,

by allowing reporters to sample and account for the CO2 within the gas

separately from the flared methane component. This applies only to

Method 2 and higher.

[31] Amends the Method 3 to be based on Method 2 instead of Method 1.

Part 3.3 Oil and natural gas – fugitive emissions, Division 3.3.8 Natural gas

distribution

Clarification of the boundaries of existing variables within the estimation method used to

calculate emissions from natural gas distribution. Changes include minor textual and

subscript updates.

Item Commentary

[32] Corrects subscript references in the formula.

[33] Matches subscript references to the formula.

[34] Matches subscript references to the formula.

[35] Matches subscript references to the formula.

Part 3.3 Oil and natural gas – fugitive emissions, Division 3.3.9 Natural gas

production or processing (emissions that are vented or flared

The fugitive flared emissions from natural gas production or processing may include a

component of carbon dioxide (CO2) gas that is not combusted during flaring. The amendment

allows the CO2 component to be accounted for separately from the flared hydrocarbon

component. This results in more accurate emissions estimates. The existing Method 2 for

methane emissions has been withdrawn as throughput based emission factors are

inappropriate for Method 2.

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Item Commentary

[36] Withdraws the availability of Method 2 for estimating methane emissions.

[37] Clarifies the withdrawal of Method 2 for methane estimation.

[38] Refines the formula for estimating CO2 emissions from natural gas

production and processing, by allowing reporters to sample and account

for the CO2 within the gas separately from the flared methane component.

This applies only to Method 2 and higher.

[39] Amends Method 3 as an extension of Method 2 instead of Method 1

CHAPTER 4 INDUSTRIAL PROCESSES

Part 4.2 Industrial processes – mineral products, Division 4.2.2 Lime

production

The emission estimates from lime production are affected by the quantity of lime kiln dust

produced. The amendments update the method for estimating emissions to include those

related to the production of lime kiln dust, a by-product of lime production. Additional

standards are referenced to assist reporters.

Additional default factors relating to production of dolomitic and magnesian lime are added

to Method 1, reflecting the different emissions profiles.

Item Commentary

[40] Updates Method 1 to include emissions from the calcinations of lime kiln

dust in the production process.

Addition of default factors and definitions for magnesian and dolomitic

lime to reflect emissions generated from higher magnesium carbonate

content in the limestone.

Includes, in Method 2, analysis of Calcium Oxide (CaO) and Magnesium

Oxide (MgO) contained within the carbonate source used for producing

lime.

[41] Adds additional standards for reporters to reference when sampling and

analysing the composition of lime.

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Part 4.2 Industrial processes – mineral products, Division 4.2.3 Use of

carbonates for production of a product other than cement clinker, lime or soda

ash

Specifies that phosphoric acid is to be reported within this source. Other amendments reflect

stylistic updates.

Item Commentary

[42] Amendment adds emissions from phosphoric acid production to the

positive list of activities that are to be reported within this source.

[43] Amendment italicizes the title of the referenced standard.

Part 4.3 Industrial processes – chemical industry, Division 4.3.5 Chemical or

mineral production, other than carbide production, using a carbon reductant

or carbon anode

The method for estimating emissions is updated to a carbon mass balance method. This

refinement takes account of carbon embedded within products and waste by-products which

do not occur as an emission. Modifications are made to the source name and source

application to clarify the scope of emissions included in the source.

Item Commentary

[44] Changes the source heading to include emissions from chemical and

mineral production using a carbon anode.

[45] Adds emissions from fused alumina, magnesia and zirconia to the positive

list of activities to be reported within this source.

[46] Details the estimation approach and parameters for calculating the

emissions from chemical or mineral production using a carbon mass

balance approach.

Part 4.4 Industrial processes – metal industry, Division 4.4.1 Iron, steel or other

metal production using an integrated metalworks

Clarifies the scope of emissions within the source to include iron and steel production that

uses an electric arc furnace, or consumes coke produced offsite. Other metals such as lead

and silicon can continue to use this method if it is part of an integrated metalworks.

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Item Commentary

[47] Expands the method for the estimation of emissions from iron and steel to

include all production techniques; and other metals that form an integrated

metal works, i.e. manufacture of a metal and coke in an integrated

production process.

CHAPTER 5 WASTE

Part 5.2 Solid waste disposal on land, Division 5.2.2 Method 1 – emissions of

methane released from landfill

Currently the Determination uses a default value, obtained from the Intergovernmental Panel

on Climate Change (IPCC) guidelines, of 0.5 for the fraction of degradable organic carbon

dissimilated (DOCf). Drawing on changes to the method used in the National Greenhouse

Gas Inventory the amendment identifies the DOCf values based on specific waste mix types,

improving the accuracy of waste emissions estimates.

Item Commentary

[48] Grammatical correction.

[49] Replaces the default DOCf value used for Method 1 estimation listed in the

IPCC guidelines with values, specified by waste mix type, listed in section

5.14A.

[50] Inserts a list of DOCf values separated by waste mix types for use in

Method 1 estimation.

Part 5.2 Solid waste disposal on land, Division 5.2.3 Method 2 – emissions of

methane released from landfill

Currently the Determination uses a default value, obtained from the Intergovernmental Panel

on Climate Change (IPCC) guidelines, of 0.5 for the fraction degradable organic carbon

dissimilated (DOCf). Drawing on changes to the methods used in the National Greenhouse

Accounts the amendment identifies the DOCf values based on waste mix types, improving the

accuracy of waste emissions estimates.

Item Commentary

[51] Replaces the default DOCf definition used for Method 2 estimation with

specified values based on waste mix types listed in section 5.14A.

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Part 5.3 Wastewater handling, Division 5.3.2 Method 1 – methane released from

wastewater handling (domestic and commercial)

The symbol ‘F’ used in the Determination to refer to the fraction of COD (chemical oxygen

demand) anaerobically treated is inconsistent with the IPCC guidelines. The amendment

updates the ‘F’ with ‘MCF’ (methane correction factor) to make it consistent. This is an

update to terminology and has no impact on the estimation method.

Item Commentary

[52] Replaces Fwan and Fslan with MCFww and MCFsl in the formula in line with

the IPCC guidelines.

[53] Replaces the definition of Fwan, with MCFww to make it consistent with the

formula.

[54] Replaces the definition of Fslan with MCFsl to make it consistent with the

formula.

[55] Inserts the definition for Methane Correction Factor (MCF).

Part 5.3 Wastewater handling (domestic and commercial), Division 5.3.3

Method 1 –emissions of nitrous oxide released from wastewater handling

(domestic and commercial)

The amendment updates the estimation method for nitrous oxide emissions to clarify the

methods for obtaining Nin, Ntrl, and Ntro values and differentiating the estimation of nitrogen

leaving the plant by aquatic environment.

Item Commentary

[56] Substitution of 5.31 (1) to include additional estimation guidance for Nin,

Ntrl, and Ntro by providing formulas and definitions.

Re-orders and includes definitions and emissions factors for nitrogen

leaving the plant by discharge environment.

Part 5.4 Wastewater handling (industrial), Division 5.4.1 Preliminary

Restates the application of the part to remove nitrification and denitrification processes that

are not part of the method.

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Item Commentary

[57] Amends the statement outlining the application of the part to remove

nitrification and denitrification processes that do not apply to the source.

Part 5.4 Wastewater handling (industrial), Division 5.4.2 Method 1 – methane

released from wastewater handling (industrial)

The amendment includes COD (chemical oxygen demand) leaving the plant as effluent

(CODeff) in the estimation method for wastewater to allow for its subtraction from emissions

estimates. This makes the estimation method consistent with domestic and commercial

wastewater handling.

In addition, the symbol ‘F’ used in the Determination to refer to the fraction of COD

anaerobically treated is inconsistent with the IPCC guidelines. The amendment updates the

‘F’ with ‘MCF’ (methane correction factor) to make it consistent. This is a change in

terminology and has no impact on the estimation method.

Item Commentary

[58] Replaces Fwan and Fslan with MCFww and MCFsl in the formula for

CH4gen.

Inclusion of CODeff that was omitted into the formula for CH4gen.

[59] Defines the CODeff values added to the formula for CH4gen.

[60] Replaces the definition of Fwan, with MCFww to make it consistent with the

formula.

[61] Replaces the definition of Fslan with MCFsl to make it consistent with the

formula.

[62] Replaces an occurrence of Fwan with MCFww for consistency.

[63] Replaces an occurrence of Fwan with MCFww for consistency.

[64] Inserts the definition of methane correction factor (MCF).

Part 5.5 Waste incineration

Amendment adds Method 4 to the available methods for waste incineration to improve the

consistency of available with methods available for fuel combustion.

Explanatory Statement to F2011L01315

Page 18: National Greenhouse and Energy Reporting (Measurement

18

Item Commentary

[65] Adds Method 4 reporting for waste incineration.

CHAPTER 6 ENERGY

No changes

CHAPTER 7 SCOPE 2 EMISSIONS

No changes

CHAPTER 8 UNCERTAINTY

Part 8.3 How to assess uncertainty when using method 1

Clarification to the estimation of uncertainty for energy content factors to allow the use of

specific uncertainty levels estimated in accordance with section 7 of the GHG Protocol

guidance on uncertainty assessment in GHG inventories and calculating statistical parameter

uncertainty. Also includes minor scope adjustments and the inclusion of uncertainty levels for

Aluminium production.

Item Commentary

[66] Allows for uncertainty levels for energy content factors to be estimated

using the GHG Protocol Guidance on Uncertainty Assessment in GHG

Inventories and Calculating Statistical Parameter Uncertainty.

[67] Removal of ‘vented’ under item 8 to allow vented emissions to use the

uncertainty value of 50.

[68] Inclusion of emission factors and activity uncertainty levels for emission

estimates from aluminium production.

SCHEDULE 1

Inclusion of additional fuel types and update of the Scope 2 emission factors that are updated

annually in line with dispatch decisions within the National Electricity Market made

throughout the last financial year. Minor amendment removing a black coal definition that

has been superceded.

Item Commentary

[69] Removal of supplementary black coal definition that has been superceded.

Explanatory Statement to F2011L01315

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19

[70] Inclusion of additional fuel types used in the transport industry with

associated energy content and emissions factors.

[71] Annual update of scope 2 emission factors reflecting changes within the

National Electricity Market in the last financial year.

Further Amendments

Item Commentary

[72] Minor amendments including:

• correction of incorrect or obsolete references;

• update of standards to latest versions;

• changes to terms for consistency; and

• clarification of two fuel type names in Schedules 1, 2 and 3.

Explanatory Statement to F2011L01315

Page 20: National Greenhouse and Energy Reporting (Measurement

20

SCHEDULE 2 AMENDMENTS

These amendments commence on 1 July 2012.

Part 4.4 Industrial processes – metal industry, Division 4.4.1 Ferroalloys

production

The method for estimating emissions is updated to a carbon mass balance method to align

available methods with those used in iron and steel. This refinement takes account of carbon

embedded within products and waste by-products which do not occur as an emission.

Item Commentary

[73] Details the estimation approach and parameters for calculating the

emissions from ferroalloys production using a carbon mass balance

approach.

Part 4.4 Industrial processes – metal industry, Division 4.4.1 Other metals

production

The method for estimating emissions is updated to a carbon mass balance method to align

available methods with those used in iron and steel. This refinement takes account of carbon

embedded within products and waste by-products which do not occur as an emission.

Item Commentary

[74] Details the estimation approach and parameters for calculating the

emissions from other metals production using a carbon mass balance

approach.

Explanatory Statement to F2011L01315

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21

ATTACHMENT B

DOCUMENTS INCORPORATED BY REFERENCE

Chapter 1 General

The following standard can be obtained at: http://www.ghgprotocol.org/calculation-tools/all-

tools

GHG Uncertainty protocol guidance on uncertainty assessment in GHG

inventories and calculating statistical parameter uncertainty (September 2003)

v1.0

Chapter 4 Industrial processes emissions

Section 4.15

The following standard can be obtained at: http://www.saiglobal.com/shop/Script/search.asp

ASTM C25-06 Standard Test Methods for Chemical Analysis of Limestone,

Quicklime, and Hydrated Lime.

Section 4.15

The following standard can be obtained at: http://www.saiglobal.com/shop/Script/search.asp

ASTM C50-00 (2006) Standard Practice for Sampling, Sample Preparation,

Packaging, and Marking of Lime and Limestone Products.

Section 4.15

The following standard can be obtained at: http://www.saiglobal.com/shop/Script/search.asp

AS 4489.0–1997 Test methods for limes and limestones — General introduction

and list of methods.

Section 4.33

The following standard can be obtained at: http://www.saiglobal.com/shop/Script/search.asp

ASTM C25-06 Standard Test Methods for Chemical Analysis of Limestone,

Quicklime, and Hydrated Lime.

Explanatory Statement to F2011L01315