Document ID: chunk:federal_register_of_legislation:C2024C00490:section:91
Version: federal_register_of_legislation:C2024C00490
Segment Type: section
Provision Reference: s 91
Character Range: 189026–191231

91  Requirement to relinquish—reversal of sequestration due to natural disturbance or conduct and no mitigation happens

Scope
 (1) This section applies if:
 (a) an eligible offsets project is a sequestration offsets project to remove carbon dioxide from the atmosphere; and
 (b) a number of Australian carbon credit units have been issued in relation to the project; and
 (c) there has been a reversal of the removal; and
 (d) the reversal is, under the regulations or the legislative rules, taken to be a significant reversal; and
 (e) the reversal is attributable to:
 (i) natural disturbance; or
 (ii) conduct engaged in by a person (other than the project proponent for the project), where the conduct is not within the reasonable control of the project proponent; and
 (f) the Regulator is not satisfied that the project proponent has, within a reasonable period, taken reasonable steps to mitigate the effect of the natural disturbance or conduct, as the case may be, on the project; and
 (g) if the relevant section 27 declaration has never been varied so as to add one or more project areas—the period that has passed since the first occasion on which an Australian carbon credit unit was issued in relation to the project in accordance with Part 2 is shorter than the permanence period for the project; and
 (h) if the relevant section 27 declaration has been varied so as to add one or more project areas—the period that has passed since the last occasion on which the declaration was so varied is shorter than the permanence period for the project.

Relinquishment
 (2) The Regulator may, by written notice given to the project proponent for the project, require the project proponent to relinquish a specified number of Australian carbon credit units.
 (3) The specified number must not exceed the net total number of Australian carbon credit units issued in relation to the project in accordance with Part 2.
 (4) The project proponent must comply with the requirement within 90 days after the notice was given.
Note: An administrative penalty is payable under section 179 for non‑compliance with a relinquishment requirement.

Part 8—Carbon maintenance obligation

Division 1—Introduction