56Issuing safeguard mechanism credit units for a financial year

56 Issuing safeguard mechanism credit units for a financial year

Application for safeguard mechanism credit units (1) The responsible emitter for a facility may apply to the Regulator to issue safeguard mechanism credit units to the responsible emitter in relation to the facility for a particular financial year. Issue of safeguard mechanism credit units (2) The Regulator must consider the application as soon as reasonably practicable after receiving it, and if the Regulator: (a) is satisfied of the matters specified in subsection (3); and (b) has no evidence to suggest that the quantity of a production variable for the facility for the financial year, or the covered emissions of greenhouse gases from the operation of the facility in the financial year, have been inaccurately reported to the Regulator; the Regulator must: (c) determine, in accordance with: (i) subsection (4); or (ii) if the responsible emitter was the responsible emitter for the facility on a number of days in the financial year that is less than 365—subsections (4) and (5); the number of units to be issued; and (d) decide to issue that number of units to the responsible emitter.

Note: See also section 58A (identifying safeguard mechanism credit units with a financial year etc.).

Matters of which the Regulator must be satisfied (3) The following matters are specified: (a) the baseline emissions number for the facility for the financial year is greater than the sum of: (i) the number of tonnes of carbon dioxide equivalence of covered emissions of greenhouse gases from the operation of the facility during the financial year; and (ii) the number of Australian carbon credit units (if any) by which the net emissions number for the facility for the financial year is increased under subsection 22XK(4) of the Act; (b) the facility is not a landfill facility; (c) the facility is a designated large facility, or an eligible facility, for the financial year; (d) no borrowing adjustment determination specifies a borrowing adjustment number for the facility for the financial year; (e) the financial year is not included in a declared multi‑year period for the facility. Number of safeguard mechanism credit units to be issued (4) The number of units to be issued is worked out using the following formula: Start formula BEN minus E minus Increase end formula where:

BEN is the baseline emissions number for the facility for the financial year that would be ascertained in accordance with Part 3 if subsection 10(1) had not been enacted.

Note: Subsection 10(1) provides for a minimum baseline emissions number of 100,000.

E is the number of tonnes of carbon dioxide equivalence of covered emissions of greenhouse gases from the operation of the facility during the financial year.