Document ID: chunk:federal_register_of_legislation:F2018L01206:reg:12:p1
Version: federal_register_of_legislation:F2018L01206
Segment Type: reg
Provision Reference: reg 12 (pt 1/2)
Character Range: 29066–31760

12  Partly independent sub-system of an IE unit

Note: If an IE unit has a partly independent sub-system that draws fuel or electricity and provides steam, heat, cooling or compressed air partly to other parts of the IE unit and partly to external equipment, the project proponent will be able to deduct the fuel or electricity attributable to services provided to the external equipment from the abatement calculations.

Example:

  The project site generates steam from a large central plant that is used for a number of processes.  Some of these processes are already efficient, but others are not.  The project upgrade will replace machinery used in the less efficient processes.

 Section 11 (in particular subsection 11(6)) requires the boundary of the  IE unit to include the steam generation plant.  However, much of the steam output is used in ways that do not interact with the equipment subject to the upgrade.  If the project proponent is able to specify the plant as a partly independent sub-system under this section, the proportion of the fuel input that is attributable to the steam that is used in the processes that are not affected by the upgrade can be deducted, so that the abatement calculations focus on those processes that are affected.
When a sub-system may be partly independent
 (1) A system of equipment that is a sub-system of an IE unit may be specified as partly independent if:
 (a) the sub-system does not consume useful energy from outside the sub-system other than:
 (i) fuel or electricity from outside the unit (which must satisfy paragraph 11(6)(a)); or
 (ii) lower grade energy returned to the subsystem in the circumstances prescribed by paragraph (3)(b).
 (b) the sub-system does not supply useful energy to the rest of the IE unit apart from its output; and
 (c) the output of the sub-system consists of the delivery of:
 (i) steam; or
 (ii) heated fluid; or
 (iii) cooled fluid; or
 (iv) compressed air;
 (d) the efficiency of the sub-system is not affected by the IE upgrade; and
 (e) part of the steam, heat or cooling output is used by other equipment in the IE unit and part is not (the internal output and the external output of the sub-system respectively); and
 (f) the energy content of the internal and external outputs can be monitored in accordance with section 38, (in particular subsection 38(9)).
Effect of specifying a partly independent sub-system
 (2) If a sub-system is specified as partly independent:
 (a) the external output of the sub-system is not treated as an output of the IE unit for section 14 (and so is not represented by an output indicator); and
 (b) the fuel or electricity consumed by the sub-system and attributable