Document ID: chunk:federal_register_of_legislation:F2018L00562:clause:2_1:p1
Version: federal_register_of_legislation:F2018L00562
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 1/2)
Character Range: 89987–92853

1  Simplified outline of this Schedule

      If the project proponent elects to calculate the adjusted contribution to the net abatement amount for the project area from sequestration of carbon in dead organic matter for calendar year y of the reporting period, ASeq,adj­,y in equation 1, without using SavBAT 3, the amount is calculated as follows.
      First, the contribution to the net abatement amount from sequestration in dead organic matter in the project area for the calendar year, ASeq, is calculated. The amount of carbon sequestered in dead organic matter will generally reach a reasonably stable equilibrium level over time. During the baseline period, the equilibrium level will be relatively low. As a result of undertaking the project, a higher equilibrium level is expected to be reached over time. The determination calculates the equilibrium baseline level, and uses an averaging process to arrive at a value for the project equilibrium level. The amount ASeq is based on the difference between these equilibrium levels, spreading the credits across the years of the crediting period (25 years unless it is reduced for a transferring project under section 28 of this determination).
      The equilibrium levels themselves are calculated on the basis of the vegetation fuel type map, factors taken from the National Inventory Report, and various mean fire frequencies for the project area (which were calculated in Schedule 1). When calculating the amount ASeq, only the fuel size classes 'coarse fuel' and 'heavy fuel' are taken into account.
      Then, from the amount ASeq, the adjusted contribution to the net abatement amount, ASeq,adj, is calculated. This calculation involves decreasing ASeq by any negative abatement that was carried over from the previous calendar year. The amount so calculated is further decreased by an amount that is applied in lieu of the risk of reversal buffer number and the permanence period discount number that ordinarily apply when the unit entitlement for a sequestration offsets project is calculated under section 16 of the Act. For projects that are covered by this determination, these numbers are equal to zero as a result of the CFI Rule. To compensate for this, the contribution to the net abatement amount from sequestration is adjusted using a sequestration buffer that corresponds to the risk of reversal buffer and the permanence period discount number that ordinarily apply to sequestration offsets projects under the Act. (The contribution to the net abatement amount from emissions avoidance is not adjusted.)
      Values relating to the baseline period are re‑calculated each year, and will potentially change from year to year. Changes to these values will arise, for example, if documents that are referred to as in force from time to time are modified, if the vegetation fuel type map