10Separate business operation requirement

10 Separate business operation requirement

(1) A herd of the project satisfies the separate business operation requirement for a period if the business operation for the herd satisfies subsection (2) or (3) throughout the period.

Entire entities

(2) A business operation satisfies this subsection if it consists of a registered entity or a group of registered entities.

Discrete operations

(3) A business operation satisfies this subsection at a time if:

(a) its parent entity consists of a registered entity or a group of registered entities; and

(b) it maintains a livestock inventory that is separate from other livestock inventories of its parent entity; and

(c) after the date of the relevant application—the herd is managed as a discrete group of animals over time; and

(d) it is possible to account for all cattle entering or leaving the livestock inventory (including movements to and from other livestock inventories of the parent entity, and including movements that are not sales or purchases).

Examples: A registered entity that owns several properties may maintain them as separate business operations.

Several herds may be maintained on a single property, as long as they are managed as discrete groups—eg animals in each livestock class may be managed as a separate herd, mustered at different times.

Note: The effect of paragraph (c) is that a proponent may decide at the time of the section 22 application that herds that have been managed together during the emissions intensity reference period should be treated separately during the crediting period, for example to allow annual musters with different assessment days. This will be possible only if the proponent has the data relating to the emissions intensity reference period that allows the emissions intensity of each herd to be calculated.