Overview of National Greenhouse and Energy Reporting ...

Overview of National Greenhouse and Energy Reporting ...

Emissions and Energy Reporting System (EERS) workshops 201617 Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) Program > Context/overview > Corporate structure > User management and the Client Portal > Facility types > Activities and sources > Data entry > Uncertainty > Streamlining > Report generation and submission

Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 2 Overview Who we are > The Clean Energy Regulator (CER) was established on 2 April 2012 as an independent statutory authority. > We operate as part of the Department of the Environment and Energy portfolio. > Our role is determined by climate change law. > We administer schemes set by law; we do not make the law or develop policy.

> We work closely with our portfolio agencies, for example, the Department of the Environment and Energy, who are responsible for developing the policies relating to the schemes that we administer. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 4 What we do The Clean Energy Regulator administers a number of schemes which work together to reduce emissions while encouraging business competiveness. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 5 Our responsibilities

> Our responsibilities include: > providing education and information on the schemes that we administer > monitoring, facilitating and enforcing compliance with each scheme > collecting, analysing, assessing, providing and publishing information and data > ensuring the integrity of the carbon and renewables economic markets > accrediting auditors for the schemes we administer, and > working with other law enforcement and regulatory bodies. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 6 National Greenhouse and Energy Reporting Act 2007

The National Greenhouse and Energy Reporting Act 2007 (NGER Act) sets up a national framework for the reporting and dissemination of greenhouse gas emissions, and energy production and consumption data. Reported data is disclosed to relevant Commonwealth, State and Territory governments to assist in policy development and administration of existing laws. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 7

NGER reporting obligations By 31 October each year, all > registered controlling corporations > reporting transfer certificate (RTC) holders, and > responsible members (parties to a 22X agreement) must provide the CER with a report under the NGER Act. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 8 NGER reporting obligations

In relation to a controlling corporation, the report (section 19 emissions and energy report) contains data relating to: > scope 1 emissions > scope 2 emissions > energy production, and > energy consumption. This data is from the facilities under its operational control and under the operational control of members of its corporate group. The amount of information required will differ, depending on which threshold(s) the controlling corporation has met. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 9

Controlling corporation section 19 reporting obligations Corporate group threshold met: report contains data relating to the activities of all facilities, regardless of whether the individual facilities meet the facility thresholds. Facility thresholds met: report will only contain data in relation to those facilities that meet a facility threshold. No thresholds met: below threshold report must still be supplied. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 10

NGER thresholds The facility thresholds are: 25kt or more of greenhouse gases (CO2-e) production of 100 TJ or more of energy, or consumption of 100 TJ or more of energy. From 2010-11 onwards, the corporate group thresholds are: 50 kt or more of greenhouse gases (CO2-e) production of 200 TJ or more of energy, or consumption of 200 TJ or more of energy. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 11

Corporate structure Controlling corporations A controlling corporation is a constitutional corporation that does not have an Australian-incorporated holding company. > Generally, it is the corporation at the top of its corporate group in Australia. > It can also be a foreign company (e.g. one that is incorporated overseas), that does business directly in Australia (and not through an Australian-incorporated subsidiary).

Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 13 Group members A group member is defined as: > the controlling corporation, and, with some exceptions, > a controlling corporations subsidiaries. Subsidiary is defined in the Corporations Act 2001. A controlling corporation can be the only member of its corporate group. A foreign controlling corporations subsidiaries arent included in its group.

Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 14 Types of structural entities in EERS > If your organisation is newly registered, the controlling will be set up. You can then add group members and facilities. > If your organisation had previously reported, its structure from the previous year will be brought across to the new reporting year.

Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 15 Facility types Facilities A facility is an activity, or a series of activities (including ancillary activities) that: > involve the production of greenhouse gas emissions, the production of energy or the consumption of energy, and

> form a single undertaking or enterprise and meet the requirements of the regulations. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 17 Facilities The NGER Regulations state that an activity or series of activities will form part of a single undertaking or enterprise where they: > occur at a single site (regulation 2.16)

> are listed activities (regulation 2.17 or 2.18) that can be attributed to the activities that occur at the main site > are transport sector activities (regulation 2.19), or > are electricity, gas, water, sewerage or telecommunications activities (regulation 2.20). Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 18 NGER facility types in EERS > Facility > single site facilities

> transport facilities > FacilityNetworkPipeline > only used if facility crosses state/territory border Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 19 Operational control > A controlling corporation registers and reports in relation to facilities under its operational control and under the operational control of its group member > An entity will have operational control over

a facility if it has the authority to introduce and implement any or all of the following for the facility: > health and safety policies, and > environmental policies. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 20 Operational control > Where more than one entity meets the first test, the entity that has the greatest authority to introduce and implement the > operating, and

> environmental policies. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 21 Operational control > Where more than one entity meets the first test, and no one has the greatest authority to introduce and implement the: > operating, and > environmental policies. Then, all entities that meet the first test will be taken to have operational control. In these circumstances, affected parties can nominate one of them to have operational control.

The CER may declare that a person has operational control. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 22 Getting started in Emissions and Energy Reporting System (EERS) Reporting structure All reports are prepared in the Emissions and Energy Reporting System (EERS). > Your organisations EERS account is created at the time of registration.

> Access is given to the NGER contact person and executive officer on the application. > Login via the Client Portal on the Clean Energy Regulators website. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 24 Reporting structure When preparing a section 19 report, controlling corporations should review and update their reporting structures by: > adding any new group members,

> removing group members that are no longer part of their corporate group or no longer affected group members, and > ensuring that facilities are correctly set up as being under the operational control of the correct group member. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 25 Example reviewing corporate structure Controlling Corporation

Group Member (subsidiary) Group Member (subsidiary) Facility Facility

Group Member (subsidiary) Facility Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) Group Member (subsidiary) Facility

26 Reporting structurepart year reporting Reporters should be aware when part year reporting applies. Part year reporting is only relevant where operational control of a facility has changed. If ownership of a group member changes, but operational control of a facility does not, the controlling corporation of the group member, as at 30 June, reports on the facility for the full year. > If a change in ownership (e.g. as a result of a corporate restructure) occurs after 30 June, the controlling corporation as at 30 June will report on the facility for the previous year. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act)

27 Examplecorporate restructure with no part year reporting Apply for deregistrationno longer a CC. Submit a below threshold report if not deregistered by 31 October New Controlling Corporation

S19 report All facilities full year Controlling Corporation S19 report below threshold (unless deregistered) Group Member Group

Member Facility Facility Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 28 Examplepart year reporting applies Controlling Corporation A Group

Member A1 Facility 1 S19 report Facility 1 full year Facility 2 part year Controlling Corporation B Group Member A2

Group Member B1 Facility 2 1 July 31 Dec Facility 2 1 Jan 30 June Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) S19 report

Facility 2 part year 29 Activities/sources Facility level data entry For each facility, a section 19 report must contain data about the facilitys, for the period of time it was under the operational control of a member of the corporate group: > scope 1 emissions

> scope 2 emissions > energy production, and > energy consumption. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 31 What data is reported for facilities? Only emissions and energy production and consumption from particular items are included in a section 19 report. For example: > Fuels and other energy commodities listed in Schedule 1 of the NGER Regulations. An item is only reportable where the NGER

Measurement Determination specifies a method or a criteria for a method to measure the amount of emission or energy production or consumption from that item. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 32 Scope 1 emissions A scope 1 emission of greenhouse gas, in relation to a facility, means the release of a greenhouse gas into the atmosphere as a direct result of an activity or series of

activities (including ancillary activities) that constitute the facility. For example: > Emissions produced when coal is burned at a power station are scope 1 emissions. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 33 Scope 1 emissions The NGER Regulations divide reporting on scope 1 emissions into categories, for example:

> Fuel combustion > Coal mining > Oil or gas > Metal products, and > Waste. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 34 Scope 1 emissions The information you will have to report depends on the category your activity falls into. Examples of information generally required include:

> the source of the emission > the methods in the NGER Measurement Determination used to estimate the emissions > the total amount of greenhouse gas emitted from the source, and > any other matters to be identified. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 35 Scope 1 emissions example coal mining The matters to be identified will vary depending on: > the source your scope 1

emissions come from, and > the method you have used. Requirements about what information should be provided are set out in the NGER Regulations. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 36 Scope 2 emissions In relation to a facility, scope 2 emissions means the release of a greenhouse gas into the atmosphere as a direct result of one or more activities that generate electricity, heating, cooling or steam that is

consumed by the facility but that do not form part of the facility. The NGER Measurement Determination sets out methods for measuring scope 2 emissions from the consumption of purchased electricity. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 37 Scope 2 emissions Scope 2 emissions are reportable if electricity consumed at a facility is purchased: > from the main electricity grid, or > from a grid other than the main grid.

Under NGERs, electricity produced and consumed at the same facility does not give rise to reportable scope 2 emissions. The emissions from the production of electricity at facility are reported as scope 1 emissions. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 38 Energy production Production of energy, in relation to a facility, means: Either: > the extraction or capture of energy from natural sources for final consumption by or from the operation of the facility or for use other than in the operation of the facility, or

> the manufacture of energy by the conversion of energy from one form into another form for final consumption by or from the operation of the facility or for use other than in the operation of the facility. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 39 Energy production Examples of energy production through the extraction or capture of energy from natural sources include: > mining of brown coal at a coal mine

> capturing unprocessed natural gas at a gas field, or > extracting crude oil from using an offshore oil rig. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 40 Energy production Examples of energy production as a result of the conversion of energy from one form into another, include: > the combustion of brown coal to produce electricity, and > the treatment of unprocessed natural

gas to produce natural gas. Each time you produce a fuel or energy commodity listed in Schedule 1 of the NGER Regulations, you must report that fuel or energy commodity as energy produced. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 41 Energy consumption Consumption of energy, in relation to a facility, means the use or disposal of energy from the operation of the facility, including own-use and losses in extraction, production and

transmission. In other words, each time a fuel or energy commodity listed in Schedule 1 of the NGER Regulations is consumed at your facility, the consumption of that fuel or energy commodity must be reported. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 42 Transformation: energy production and consumption Electricity 70,000GJ Unprocessed natural

gas 200,000 GJ Treatment Natural gas 180,000 GJ To the grid Power generation Electricity 5,000GJ Other gaseous fossil fuels

15,000 GJ Facility 2 Facility 1 Energy production Energy consumption 200,000 GJ 15,000 GJ 200,000 GJ 180,000 GJ

75,000 GJ 180,000 GJ Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 5,000 GJ 43 Uncertainty Reporting uncertainty In certain circumstances, reports must include the amount of uncertainty associated with scope 1 emissions.

Fuel combustion: > Uncertainty only reported if scope 1 emissions, for the facility, from the fuel type (e.g. diesel) have a CO2-e of 25 kilotonnes or more. Sources other than fuel combustion: > Uncertainty is only reportable where scope 1 emissions, for the facility, have a CO2-e of 25 kilotonnes or more. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 45 Streamlining Reporting on small facilities

Controlling corporations that meet any of the corporate group thresholds must report on all facilities. This is regardless of whether the facilities individually meet any of the facility thresholds. To reduce the reporting burden, a controlling corporation may choose to report below facility threshold facilities: > as a facility aggregate, or > as a percentage of the groups total emissions, energy production and energy consumption. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 47

Reporting incidental amounts at a facility Reporters are able to report incidental amounts of emissions and energy as an estimate (as opposed to a measured amount). When preparing the estimate, reporters should apply the principles in section 1.13 of the NGER Measurement Determination: > Transparency, comparability, accuracy and completeness. To be classified as incidental, the emission or energy must be below the amounts specified in NGER Regulation 4.27. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 48

Reporting on immaterial amounts at a facility Reporting fuel combustion and the associated energy consumption related to a separate instance of a source: > optional if the amount combusted is less than specified reporting thresholds Reporting of electricity consumption at a facility: > optional if the amount consumed is less than 20,000 kilowatt hours. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 49

Report generation and submission Report submission Report submission must be performed electronically, within EERS. Only Executive Officers will have the ability to submit a report in EERS. Alternatively, an Executive Officer may authorise a person (a Nominated Report Submitter), to submit a report on their behalf.

Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 51 Assistance with reporting If you require further assistance with reporting you can > email [email protected] > call 1300 553 542. Reporting under the National Greenhouse and Energy Reporting Act 2007 (NGER Act) 52

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