Document ID: chunk:federal_register_of_legislation:F2018L01206:reg:10:p1
Version: federal_register_of_legislation:F2018L01206
Segment Type: reg
Provision Reference: reg 10 (pt 1/2)
Character Range: 17511–20194

10  IE units that cannot be included in an eligible offsets project
Limit on energy consumption
 (1) An IE unit cannot be included in an eligible offsets project if the annualised total energy consumption of the IE unit () given by the following equation is greater than 500,000 gigajoules:

  where:
m is a type of fuel consumed by the IE unit in the baseline period.
 is the amount, of fuel type m consumed by the IE unit during the baseline period, converted to gigajoules using an energy content factor that is in accordance with the NGER (Measurement) Determination.
 is the electricity consumption by the IE unit during the baseline period, in kilowatt hours.
 is the number of days in the baseline period for the IE unit.
Upgrade must be more than the normal course of business
 (2) An IE unit cannot be included in an eligible offsets project unless its IE upgrade is recommended in:
 (a) a report that:
 (i) results from a Type 2 or Type 3 energy audit in accordance with whichever of the following standards is applicable:
 (A) AS/NZS3598:2014.2 Energy Audits—Industrial and related activities;
 (B) AS/NZS3598:2014.1 Energy Audits—Commercial buildings; and
 (ii) was made no earlier than 2 years before the application under section 22 of the Act; or
 (b) a report on possible energy savings that could be made by the proponent, being a report that:
 (i) was produced by an independent professional energy services contractor or consultant that is competent to identify and evaluate the opportunities for energy savings; and
 (ii) was made no earlier than 2 years before the application under section 22 of the Act; and
 (iii) was not produced by:
 (A) a MVP who makes a pre-upgrade declaration or post-upgrade declaration for the project; or
 (B) a person with a financial interest in the project or IE unit at the time the report was produced.
Units not operating before the upgrade excluded
 (3) An IE unit cannot be included in an eligible offsets project if it was not in operation before the upgrade.
Note: Under this subsection, a new installation cannot be part of an eligible offsets project.
Irregularly or intermittently operating units excluded
 (4) An IE unit cannot be included in an eligible offsets project if, before its IE upgrade, the unit is operated only as a reserve, back-up or emergency system.
Note: See subsection 19(2) for restrictions after the IE unit is upgraded.
Substantial change to capacity excluded
 (5) An IE unit cannot be included in an eligible offsets project if:
 (a) its IE upgrade involves replacing existing items of equipment with new or used items, or installing new or used items of equipment; and
 (b) the new or used items