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Carbon Credits (Carbon Farming Initiative) Rule 2015
9Issue of certificate of entitlement—eligibility requirements
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#### 9 Issue of certificate of entitlement—eligibility requirements
(1) For paragraph 15(2)(h) of the Act, this section specifies eligibility requirements that must be met in order for a certificate of entitlement to be issued in respect of an eligible offsets project for a reporting period.
Requirement relating to audit reports
(2) It is an eligibility requirement that an audit report accompanying the application for the certificate of entitlement must set out, for each of the matters audited, one of the following results:
(a) a reasonable assurance conclusion;
(b) a qualified reasonable assurance conclusion.
Requirement relating to regulatory approvals
(3) It is an eligibility requirement that, if:
(a) a regulatory approval is required for the project because of a change in the way the project is being operated; and
(b) neither of the following apply:
(i) the application for a section 27 declaration in relation to the project was, in accordance with paragraph 13(1)(j), accompanied by information about the approval;
(ii) the section 27 declaration in relation to the project was, under subsection 28(2) of the Act, subject to the condition that the approval be obtained;
the approval must be obtained for the project.
Requirement relating to requirements in lieu of government program requirement
(4) It is an eligibility requirement that, throughout the reporting period, the project met the requirements set out in section 21.
Requirement relating to consent
(5) It is an eligibility requirement that, if:
(a) an offsets project involves carbon abatement at a facility that is, or is likely to be, a designated large facility for the current financial year; and
(b) the project proponent, or (if there are multiple project proponents) one of the project proponents, does not have operational control of the facility;
the project proponent, or (if there are multiple project proponents) one of the project proponents, must have consent to carry out the project from the person who has operational control of the facility immediately before the Regulator issues the certificate of entitlement under subsection 15(2) of the Act.
> Note: The consent required by this subsection may already have been obtained at the declaration of the eligible offset project to comply with section 20.
Requirement relating to compliance with bushfire legislation
(6) If an offsets project is a savanna emissions avoidance project or savanna sequestration project—it is an eligibility requirement that, throughout the reporting period, any burning of the project area that:
(a) was carried out as part of the project; and
(b) required a permit under the applicable bushfire legislation;
was carried out:
(c) during the time allowed under a relevant permit; or
(d) outside the time allowed under a relevant permit in circumstances where:
(i) the Regulator is satisfied that there was a reasonable excuse why activities were carried out without a relevant permit; and
(ii) no one was found by a court to have breached the applicable bushfire legislation because of the failure to obtain a permit; and
(iii) there is not a history of failure to obtain permits required by the applicable bushfire legislation in relation to the project area since the declaration of the project as an eligible offsets project.
(7) Subsection (6) does not apply to any part of a reporting period that occurs before 1 May 2018.
Requirement relating to activities to reduce covered emissions of greenhouse gases at designated large facilities
(8) It is an eligibility requirement that, if the project involved an activity that the project proponent began to undertake after the commencement of this subsection (the new activity), the new activity must not have resulted in carbon abatement of covered emissions of greenhouse gases from the operation of a designated large facility, unless the requirements in subsection (9) have been met.
(9) The requirements are:
(a) the new activity was described in the application under section 22 of the Act for the declaration of the project as an eligible offsets project; or
(b) the project involved another activity (the old activity) that was undertaken and resulted in carbon abatement of covered emissions of greenhouse gases from the operation of the same designated large facility, and the old activity was described in the application under section 22 of the Act for the declaration of the project as an eligible offsets project; or
(c) all of the following apply:
(i) the new activity also resulted in carbon abatement of emissions other than covered emissions of greenhouse gases from the operation of the designated large facility;
(ii) the methodology determination that covers the project provides a method for working out the carbon dioxide equivalent net abatement amount for the project in relation to the reporting period that does not include carbon abatement of covered emissions from the operation of the designated large facility;
(iii) that method was used when the carbon dioxide equivalent net abatement amount for the project was worked out in relation to the reporting period.
(10) In subsection (8), operation has the same meaning as in the NGER Act.