9AAIssue of certificate of entitlement—eligibility requirements for regeneration projects

#### 9AA Issue of certificate of entitlement—eligibility requirements for regeneration projects (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 that is a regeneration project for a reporting period. Note: The fact that these requirements are not met in relation to a reporting period does not mean that they cannot be met in relation to a subsequent reporting period within the crediting period; for example, if at the end of that subsequent reporting period forest cover has been attained. (2) If the offsets report for the reporting period was required to include information in accordance with paragraph 70(3A)(a)—it is an eligibility requirement that the information provided in the report, and any documents included in accordance with paragraph 71(c) to support such information, are sufficient to enable the Regulator to determine if the forest potential requirement of the applicable methodology determination for the reporting period is satisfied in relation to all carbon estimation areas that are included in the offsets report. (3) It is an eligibility requirement that all carbon estimation areas that: (a) are included in the offsets report for the reporting period; and (b) are past their forest cover assessment date; have attained forest cover by or before the end of the reporting period. Note 1: Under the applicable methodology determination for the regeneration project a project proponent may choose to re‑stratify the carbon estimation areas to ensure that this requirement is met in relation to a reporting period. Under section 77A of the Act a project proponent may also choose to report on all carbon estimation areas that meet this requirement in advance of any carbon estimation areas which do not meet this requirement. Note 2: It is intended that audit reports provided under section 79A or otherwise provided to the Regulator will be used to assist the Regulator to verify this requirement. Under subsection 9(2) if an audit report does not set out a reasonable assurance conclusion or qualified reasonable assurance conclusion a certificate of entitlement may not be issued. (4) For the purpose of subsection (3), a carbon estimation area has attained forest cover if: (a) both of the following apply: (i) over 90% of the area of the carbon estimation area is identified as having forest cover in accordance with the most recent version of the maps that form the basis of the National Inventory Report; (ii) that version of the maps does not identify any pre‑existing forest cover in the carbon estimation area, taking into account any guidelines published by the Regulator on its website for the purpose of this subparagraph, as in force from time to time; or Note: In 2019, the Regulator’s website was http://www.cleanenergyregulator.gov.au. Under the applicable methodology determination for the regeneration project a project proponent may choose to re‑stratify the carbon estimation areas to exclude areas shown as pre‑existing forest cover, or areas that have not attained forest cover, to enable this requirement to be met in relation to a reporting period. (b) when assessed in 0.2 hectare portions, over 90% of those portions have attained forest cover such that the land in each portion has trees that: (i) are 2 metres or more in height; and (ii) provide crown cover of at least 20% of the land. Note: The fact that a carbon estimation area is considered to have attained forest cover under this subsection does not mean that any requirements relating to forest cover or forest potential under the applicable methodology determination for the project are satisfied. (5) The assessment of 0.2 hectare portions for a carbon estimation area under paragraph (4)(b) must: (a) comply with any requirements set out in the CFI Mapping Guidelines for the purpose of this paragraph; and (aa) use data sources and data processing approaches that: (i) the Regulator is satisfied are either: (A) the same as, or equivalent to, those relied upon to demonstrate that the carbon estimation area did not have any pre‑existing forest cover; or (B) if it is no longer possible or appropriate to use the data sources and data processing approaches in sub‑subparagraph (A)—are consistent with, or comparable to, those data sources and data processing approaches; and (ii) are approved by the Regulator on a list published on its website or are otherwise approved by the Regulator in writing, having regard to the requirements of subparagraph (i); and (b) take into account any guidelines published by the Regulator on its website for the purpose of this paragraph, as in force from time to time. Note: In 2018, the Regulator’s website was http://www.cleanenergyregulator.gov.au. (5A) For subparagraph (5)(aa)(ii), if: (a) a project proponent has relied upon an approval under subparagraph (5)(aa)(ii) in an offsets report covering the relevant carbon estimation area (the first approval); and (b) the project proponent has not relied on another approval under subparagraph (5)(aa)(ii) in a subsequent offsets report covering the relevant carbon estimation area; the first approval remains relevant to the carbon estimation area despite any subsequent revocation or variation of that approval by the Regulator. Note: While this subsection may facilitate the satisfaction of subparagraph (5)(aa)(ii), the other requirements of subsection (5) also need to be satisfied. This may not be possible if the relevant data sources or approaches are no longer available to apply to the carbon estimation area. (6) A carbon estimation area has passed its forest cover assessment date, when paragraph (a) and either paragraph (b) or (c) are satisfied: (a) either: (i) the carbon estimation area contains more than 5 tonnes of carbon per hectare under the modelling undertaken in accordance with the applicable methodology determination for the reporting period for the purpose of preparing the offsets report; or (ii) the carbon estimation area is part of an eligible offsets project with less than 5 years of its crediting period remaining; (b) if the carbon estimation area is an existing CEA—the date is after the later of: (i) the date that is 15 years since the day the eligible offsets project first including the area was declared under section 27 of the Act disregarding any eligible growth disruption period; and (ii) the date that is 15 years since the modelling of forest regeneration commenced for the carbon estimation area disregarding any eligible growth disruption period; (c) if the carbon estimation area is not an existing CEA—the date more than 15 years since the modelling of forest regeneration commenced for the carbon estimation area disregarding any eligible growth disruption period. Note: The modelling of when forest regeneration commences is often described as a regeneration event in the model where carbon stocks begin to increase in the carbon estimation area. (7) In this section: carbon estimation area, for an eligible offsets projects, has the meaning given by the applicable methodology determination for the reporting period. eligible growth disruption period, means the total period of time meeting the following criteria: (a) occurs after carbon stocks have begun to increase following the modelling of regeneration; (b) during which carbon stocks are modelled not to increase under the applicable methodology determination for the reporting period; (c) if subparagraph (6)(b)(i) applies—does not include a period before the day the project was declared under section 27 of the Act; and (d) if so much of the total period that occurs after the start of the project’s last or only crediting period exceeds 5 years, that period is taken to be 5 years. Example: If a project to which paragraph (6)(c) applies had 2 years of its eligible growth disruption period before the start of its crediting period and 6 years of eligible growth disruption after the start of its crediting period, its eligible growth disruption period would be 2+5=7 years. existing CEA means a carbon estimation area consisting only of an area that was part of the project area for a regeneration project on 15 August 2018. forest potential requirement means a requirement for an area of land to have forest potential, within the meaning of the applicable methodology determination for the reporting period, for the land to be included in a carbon estimation area for the project. National Inventory Report means the report of that name produced by Australia in fulfilment of its obligations under the Climate Change Convention and the Kyoto Protocol, as in force from time to time. Note: In 2018, the National Inventory Report could be accessed from http://www.environment.gov.au. pre‑existing forest cover, for a carbon estimation area, means forest cover that existed: (a) if the applicable methodology determination for the reporting period is the Carbon Credits (Carbon Farming Initiative) (Native Forest from Managed Regrowth) Methodology Determination 2013 or an earlier version of that methodology determination applicable to the project in accordance with sections 125, 126, 127 or 130 of the Act—at the time of the decision to implement the project mechanism (within the meaning of that determination) in the carbon estimation area; (b) if the applicable methodology determination for the reporting period is the Carbon Credits (Carbon Farming Initiative) (Human‑Induced Regeneration of a Permanent Even‑Aged Forest—1.1) Methodology Determination 2013 as in force at any time until 21 March 2016—immediately before project commencement (within the meaning of that determination) for the carbon estimation area; (c) if the applicable methodology determination for the reporting period is the Carbon Credits (Carbon Farming Initiative) (Human‑Induced Regeneration of a Permanent Even‑Aged Forest—1.1) Methodology Determination 2013 as in force at any time after 21 March 2016—at any time during the baseline period (within the meaning of that determination) for the carbon estimation area. tree means a perennial plant that has primary supporting structures consisting of secondary xylem.