57Issuing safeguard mechanism credit units for a declared multi‑year period

57 Issuing safeguard mechanism credit units for a declared multi‑year period

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 declared multi‑year period for the facility. 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 a financial year included in the declared multi‑year period, or the covered emissions of greenhouse gases from the operation of the facility in the declared multi‑year period, have been inaccurately reported to the Regulator; the Regulator must: (c) determine, in accordance with subsection (4), 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 declared multi‑year period 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 each financial year included in the declared multi‑year period; and (ii) the number of Australian carbon credit units (if any) by which the net emissions number for the facility for the declared multi‑year period 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 each of the financial years included in the declared multi‑year period; (d) no borrowing adjustment determination specifies a borrowing adjustment number for the facility for a financial year included in the declared multi‑year period. 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 sigma above subscript t BEN subscript t minus E subscript t minus Increase subscript t end formula where:

t is a financial year included in the declared multi‑year period.

BEN, in relation to a financial year included in the declared multi‑year period, 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.