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Carbon Credits (Carbon Farming Initiative) (Quantifying Carbon Sequestration by Permanent Mallee Plantings using the Reforestation Modelling Tool) Methodology Determination 2013

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Carbon Credits (Carbon Farming Initiative) (Quantifying Carbon Sequestration by Permanent Mallee Plantings using the Reforestation Modelling Tool) Methodology Determination 20131
Carbon Credits (Carbon Farming Initiative) Act 2011
I, Yvette D’Ath, Parliamentary Secretary for Climate Change, Industry and Innovation, make this Methodology Determination under subsection 106(1) of the Carbon Credits (Carbon Farming Initiative) Act 2011.
Dated          2/4/13
YVETTE D’ATH
Parliamentary Secretary for Climate Change, Industry and Innovation
 
Contents
Part 1                           Preliminary
                      1.1      Name of Determination                                                                       4
                      1.2      Commencement                                                                                  4
                      1.3      Definitions                                                                                          4
                      1.4      Kind of project to which this Determination applies                               7
Part 2                           Requirements for declaration as eligible project
                      2.1      Eligible projects                                                                                  9
                      2.2      Location                                                                                             9
                      2.3      Project land characteristics                                                                  9
                      2.4      Project mechanism                                                                            10
                      2.5      Identification of project area                                                              10
Part 3                           Requirements for operation of eligible projects
Division 3.1                 Operation of eligible projects
                      3.1      Operation of eligible projects                                                             11
Division 3.2                 Carbon estimation areas
                      3.2      Stratification of project area                                                              11
                      3.3      Requirements for a carbon estimation area                                         11
                      3.4      Re-stratification or re-classification of a carbon estimation area           12
                      3.5      Requirements for an exclusion area                                                    13
                      3.6      Carbon estimation area boundaries                                                    13
Division 3.3                 Project operation
                      3.7      Stocking density                                                                               14
                      3.8      Biomass harvesting exclusion                                                            14
                      3.9      Limited grazing                                                                                 14
Part 4                           The net abatement amount
Division 4.1                 The net abatement amount
                      4.1      The net abatement amount                                                                 15
Division 4.2                 Calculations—Preliminary
                      4.2      General                                                                                             15
                      4.3      Greenhouse gas assessment boundary                                              15
                      4.4      Baseline for the project                                                                     16
                      4.5      Potential to achieve forest cover required for calculations                   16
                      4.6      Changes in carbon estimation areas                                                   16
                      4.7      Use of Reforestation Modelling Tool (RMT)                                        17
Division 4.3                 Calculation of carbon stock change
                      4.8      Step 1—Calculate the initial carbon stock of the project area               17
                      4.9      Step 2—Calculate the carbon stock of the project area at the end of a reporting period         18
                    4.10      Step 3—Calculate the carbon stock change for the project area          19
                    4.11      Step 4—Convert the carbon stock change to CO2‑equivalent (CO2-e)   20
Division 4.4                 Calculation of project emissions
                    4.12      Step 1—Calculate methane and nitrous oxide emissions                     20
                    4.13      Step 2—Calculate emissions from fuel use                                         22
                    4.14      Step 3—Calculate total project emissions                                           24
Division 4.5                 Calculating the carbon dioxide equivalent net abatement amount
                    4.15      Calculating the carbon dioxide equivalent net abatement amount         24
Part 5                           Monitoring, record-keeping and reporting requirements
Division 5.1                 General
                      5.1      Application                                                                                       25
                      5.2      Geospatial information requirements                                                  25
Division 5.2                 Monitoring requirements
                      5.3      Project monitoring                                                                             25
Division 5.3                 Record-keeping requirements
                      5.4      Records that must be kept                                                                25
                      5.5      Forest management information                                                         26
                      5.6      Project area information                                                                    27
Division 5.4                 Offsets report requirements
                      5.7      Information that must be included in first offsets report                      27
                      5.8      Subsequent reporting periods                                                            28
 
Part 1              Preliminary
1.1           Name of Determination
                     This Determination is the Carbon Credits (Carbon Farming Initiative) (Quantifying Carbon Sequestration by Permanent Mallee Plantings using the Reforestation Modelling Tool) Methodology Determination 2013.
1.2           Commencement
                     This Determination is taken to have come into force on 1 July 2010.
1.3           Definitions
                     In this Determination:
Act means the Carbon Credits (Carbon Farming Initiative) Act 2011.
belt means the spatial configuration of a mallee planting:
(a) that is either:
(i)                  a narrow linear planting of 2 rows or less; or
(ii)                a wide linear planting of 3 or 4 rows; and
                            (b)    where the minimum distance between the last row of the planting and the first row of another planting is at least 10 metres.
                         Note    The treatment of the space between belts is set out in the CFI Mapping Guidelines.  Under the Guidelines:
·         features greater than 5 metres in width; or
·         areas less than 5 metres in width that total more than 5% of the project area;
                                      must be defined as exclusion areas and therefore not counted as part of the carbon estimation area.
block means the spatial configuration of a planting that is not a belt planting.
carbon dioxide equivalent means the carbon dioxide mass equivalent of biomass or greenhouse gas.
carbon estimation area has the meaning given by section 3.3.
carbon pools means a biomass category included in the greenhouse gas assessment boundary specified in section 4.3.                                                                                                                                                                                                                                                                                                                                                                                                                 
carbon stock, of an area of land, at a specified time, means the quantity of carbon held within the area at that time as:
                            (a)    above ground tree biomass;
                            (b)    below ground tree biomass;
                             (c)    tree debris;
                            (d)    tree litter.            
CFI Mapping Guidelines means the guidelines of that name, published by the Department from time to time, and with which the mapping of project, carbon estimation and exclusion areas must comply. Available at:
www.climatechange.gov.au/government/initiatives/carbon-farming-initiative/methodology-development/spatial-mapping-guidelines.aspx
CFI Mapping Tool means the online mapping tool of that name, published by the Department from time to time, that is used to define the boundaries of a project area or of a carbon estimation or exclusion area in a project area. Available at: www.ncat.climatechange.gov.au/cfirefor/.
declaration date for a project, means the date on which the declaration of the project as an eligible offsets project under section 27 of the Act takes effect.
disturbance event means an event, whether natural or caused by humans, that damages trees or slows their growth, including fire, pest, disease and storm events.
exclusion area has the meaning given by section 3.5.
fallen timber means dead biomass on the ground, other than: 
                            (a)    a log with hollows;
                            (b)    a log with growing moss and fungi; or
                             (c)    timber that has fallen as a result of cutting, breaking off or harming standing living or dead trees or shrubs.
forest has the meaning given in the Regulations.
forest cover—land has forest cover if the vegetation on the land includes trees that:
                            (a)    are 2 metres or more in height; and
                            (b)    provide crown cover of at least 20% of the land.
Greenhouse FriendlyTM initiative has the meaning given in the Regulations.
initial carbon stock means the carbon stock of the project area as determined in accordance with section 4.8.
mallee means a form of various Australian species of Eucalyptus that have a number of almost unbranched stems arising from a large underground lignotuber.
                         Note    Eucalyptus species recognised as having the form of a mallee include:
·         E. horistes
·         E. calycogona
·         E. cneorifolia [Kangaroo Island CS20275]
·         E. cyanophylla [Loxton cult.]
·         E. dumosa
·         E. gracilis [Loxton cult.]
·         E. incrassata
·         E. kochii
·         E. kochii ssp. borealis
·         E. kochii ssp. plenissima
·         E. leptophylla
·         E. loxophleba ssp. lissophloia
·         E. oleosa
·         E. plenissima
·         E. polybractea
·         E. porosa
·         E. socialis
mallee planting means a planting of one or more mallee species.
                         Note    Under subsection 2.3(3) of this Determination, a mallee planting must occur on land that receives less than 600 millimetres annual rainfall as defined by the long term average rainfall layer in the CFI Mapping Tool.
modelling commencement means the date from which modelling of forest growth within a carbon estimation area begins using the Reforestation Modelling Tool.
                         Note    The date cannot be earlier than the date on which the planting of the carbon estimation area was completed. 
model point location means the location of a model point, identified by latitude and longitude, for use by the Reforestation Modelling Tool.             
NGER Measurement Determination means the applicable determination made under subsection 10(3) of the National Greenhouse and Energy Reporting Act 2007.
NGER Regulations means the regulations made under the National Greenhouse and Energy Reporting Act 2007.
permanent planting has the meaning given in the Regulations.           
planting means the planting of seedlings or the sowing of seed.
planting density means the number of trees planted during the establishment of a carbon estimation area calculated in stems per hectare.
pre-existing project means a project:
                            (a)    for which the project commencement is 1 July 2010 or earlier; and
                            (b)    the declaration date of which is 1 July 2010.  
project commencement means the earliest date for which there is documentary evidence that demonstrates, to the satisfaction of the Regulator, that planting has occurred.
                         Note    Under the Act a project declaration date cannot be earlier than 1 July 2010. Projects that commence before 1 July 2010 will have a project declaration date of 1 July 2010.
 
project mechanism has the meaning given by section 2.4.
Reforestation Modelling Tool or RMT means the online tool of that name, published by the Department from time to time, that estimates the carbon stock in an area.  Available at www.ncat.climatechange.gov.au/cfirefor/
Regulations means the Carbon Credits (Carbon Farming Initiative) Regulations 2011.
stocking density means the number of live trees in the planting, calculated in stems per hectare.
thinning means the selective removal of plants, primarily undertaken to improve the health of the remaining vegetation.
tree has the meaning given in the Regulations.
woody plants means trees and shrubs.
                         Note    Other words and expressions used in this Determination have the meaning given by the Act.  These include:
·         baseline
·         eligible offsets project
·         emission
·         greenhouse gas
·         methodology determination
·         offsets project
·         offsets report
·         project
·         project area
·         project proponent
·         Regulator
·         reporting period
1.4           Kind of project to which this Determination applies
       Note:    See paragraph 106(1)(a) of the Act.
                      This Determination applies to the following kinds of project:
                            (a)    the establishment of a permanent planting on or after 1 July 2007; or
                            (b)    a forestry project accredited under the Commonwealth Government’s Greenhouse FriendlyTM initiative; or
                             (c)    a permanent planting accredited under:
                                             (i)     the New South Wales Government’s Greenhouse Gas Reduction Scheme; or
                                            (ii)     the Australian Capital Territory Government’s Greenhouse Gas Abatement Scheme; or
                            (d)    a permanent planting established before 1 July 2007 for which there is documentary evidence of a kind mentioned in subregulation 3.28(3) of the Regulations that demonstrates, to the satisfaction of the Regulator, that the primary purpose of the planting was generation of carbon offsets.
                                                                        
Part 2              Requirements for declaration as eligible project
         Note    See paragraphs 27(4)(c) and 106(1)(b) of the Act.
2.1           Eligible projects
                     To be declared an eligible offsets project, a project to which this Determination applies must meet the requirements in this Part.
                         Note    In addition, a project must meet the requirements in subsection 27(4) of the Act and in the Regulations, including the requirement that the project is not an excluded offsets project (see regulations 3.36 and 3.37).
2.2           Location
                     The project area must be within Australia, excluding external territories.
2.3           Project land characteristics
         Note    See paragraph 3.36(f) of the Regulations, which specifies that a project may be an excluded offsets project if it involves the establishment of vegetation on land that has been lawfully cleared of native forest within 5 to 7 years of the eligible offsets project application.
            (1)    The project area must include land with the characteristics set out in this section.
            (2)    For at least 5 years before project commencement the land:
                            (a)    did not have forest cover; and
                            (b)    either:
                                             (i)     was used for grazing, pasture management, cropping, nature conservation, settlement; or
                                            (ii)     was not used for any purpose; and
                             (c)    has not had woody biomass cleared prior to planting, other than known weed species required or authorised by law to be cleared.
Mallee plantings
            (3)    Land in the project area on which a mallee planting occurs must receive 600 millimetres annual rainfall or less, as defined by the long term average rainfall layer in the CFI Mapping Tool.
Grazing
            (4)    Subject to subsection (5), livestock must not have grazed on land where a mallee planting has occurred, for 12 months from the date the planting commenced.
            (5)    Where the project is a pre-existing project, grazing may have occurred within a mallee planting provided there is evidence that demonstrates, to the satisfaction of the Regulator, that the grazing has not affected the potential of the planting to achieve forest cover.
2.4           Project mechanism
                     The project must establish by planting and maintain a permanent planting which is:
                            (a)    a mallee planting; and
                            (b)    planted with sufficient planting density so that the trees have the potential to achieve forest cover.
                         Note    The spatial configuration of a mallee planting may be in belts or blocks provided the planting density has the potential to achieve forest cover.
2.5           Identification of project area                  
                     The project proponent must delineate the boundaries of the project area in accordance with the CFI Mapping Guidelines.
         Note    Regulation 3.1 of the Regulations includes a requirement to provide, in an application for a declaration of an eligible offsets project, a geospatial map of the project area that meets the requirements of the CFI Mapping Guidelines.
 
Part 3              Requirements for operation of eligible projects
         Note    See paragraphs 27(4)(c), 35(2)(a) and 106(1)(b) of the Act and regulations 1.12 and 3.26 of the Regulations.
Division 3.1           Operation of eligible projects
3.1           Operation of eligible projects
                     An eligible offsets project to which this Determination applies must be operated in accordance with this Part.
Division 3.2           Carbon estimation areas
3.2           Stratification of project area
            (1)    Before submitting the first offsets report for the project, the project area must be stratified by dividing it into carbon estimation areas or exclusion areas, according to:
                            (a)    where the project activity occurs;
                            (b)    site characteristics; and
                             (c)    the land management regime.
            (2)    The project area, or a part of it, is to be stratified only as provided in this Division.
            (3)    In this Division:
land management regime means the combination of site characteristics and establishment and management methods specified in paragraphs 3.3(1)(c) and (e).
3.3           Requirements for a carbon estimation area
            (1)    A carbon estimation area must:
                            (a)    be mapped in accordance with the CFI Mapping Guidelines;
                            (b)    be within the project area;
                             (c)    be a single area with an unbroken perimeter;
                            (d)    have uniform site characteristics, including one or more of the following:
                                             (i)     soil type;
                                            (ii)     aspect;
                                           (iii)     slope position;
                            (e)    be planted with the same combination of plant species across the area; and
                             (f)    be established and managed using the same methods, including in relation to:
                                             (i)     preparation prior to planting;
                                            (ii)     planting;
                                           (iii)     thinning;
                                          (iv)     weed control treatment; and
                                           (v)     the application of fertiliser.
                     Timing of planting
            (2)    The planting within a carbon estimation area must be completed within 120 consecutive days.
                         Note    If planting within a carbon estimation area exceeds 120 days, the project proponent may re-stratify the carbon estimation area into multiple carbon estimation areas to accommodate the timing of planting.
            (3)    The boundary of a carbon estimation area must be defined in accordance with section 3.6.
            (4)    A carbon estimation area must contain a model point location which must be located at the approximate centre of the carbon estimation area.
            (5)    The model point location within a carbon estimation area must not change unless the carbon estimation area is re-stratified in accordance with section 3.4.
            (6)    The project proponent may define a new carbon estimation area that complies with this section at any time.
3.4           Re-stratification or re-classification of a carbon estimation area
            (1)    This section applies to a carbon estimation area if:
                            (a)    the site characteristics in the area are found not to be uniform;
                            (b)    the land management regime ceases to be uniform across the area;
                             (c)    the establishment of the planting is not successful to the extent that the area does not have the potential to achieve forest cover; or
                            (d)    there is a significant disturbance event that kills trees.
            (2)    Any parts of the area that are not able to be used to undertake the project mechanism must be defined as an exclusion area in accordance with section 3.5.
            (3)    The remainder of the area that does not fall within subsection (2) must be re‑stratified into one or more carbon estimation areas in accordance with section 3.3.
            (4)    If a carbon estimation area is re-stratified, the new boundaries must be identified in the next offsets report that is submitted to the Regulator.
 
3.5           Requirements for an exclusion area
            (1)    Any land in the project area that:
                            (a)    had forest cover during the 5 years before project commencement; or
                            (b)    will not be used to undertake the project mechanism; or    
                             (c)    in the 5 years before project commencement has had woody plants removed, other than known weed species required or authorised to be cleared by law;
                     must be defined as an exclusion area.
                         Note    An exclusion area might include:
·         areas of land with forest or forest cover in the project area at project commencement;
·         areas that are not capable of sustaining forest or forest cover (eg saline or rocky ground);
·         an area of planting where grazing of livestock occurred within 12 months of planting;
·         areas that are intended to be maintained for uses other than the project activity.
See the CFI Mapping Guidelines for further information.
            (2)    An exclusion area must not contain a model point location.   
3.6           Carbon estimation area boundaries
            (1)    The geographic boundaries of each carbon estimation area within the project area must be identified on a geospatial map in accordance with the CFI Mapping Guidelines.
            (2)    The boundaries must be identified before submitting the first offsets report to the Regulator.
            (3)    The boundary of a carbon estimation area must be no more than:
                            (a)    2 metres from the stems of the planting; or
                            (b)    the edge of the crown cover of the mature planting.
            (4)    If the proposed boundary of a carbon estimation area would overlap with the boundary of another carbon estimation area—then the boundary of each carbon estimation area must be located equidistant between the areas along the length of the area where the overlap would otherwise have occurred.
            (5)    For the avoidance of doubt, if any of the proposed boundary of a carbon estimation area would result in the boundary being outside the project area—then the boundary of the carbon estimation area must align with the boundary of the project area.
            (6)    For the avoidance of doubt, if any of the proposed boundary of a carbon estimation area would result in the boundary overlapping the boundary of an exclusion area—then the boundary of the carbon estimation area must align with the boundary of the exclusion area.
Division 3.3           Project operation
3.7           Stocking density
                     Twelve months after the planting of a carbon estimation area, the stocking density of the planting must have the potential to achieve a minimum crown cover of 20% of the carbon estimation area.
                         Note    The potential to achieve crown cover can be demonstrated by multiplying the stocking density (trees per hectare) by the mature crown area (in hectares). 
3.8           Biomass harvesting exclusion
            (1)    Biomass must not be removed from carbon estimation areas except in accordance with this section.
            (2)    Subject to subsection (3), the biomass from plants in the carbon estimation area must not be removed other than:
                            (a)    to remove debris for fire management; or
                            (b)    to remove firewood, fruits, nuts, seeds, or material used for fencing or as craft materials, if those things are not removed for sale; or
                             (c)    in accordance with traditional indigenous practices or native title rights.
            (3)    The removal of firewood must also be limited to:
                            (a)    fallen timber; and,
                            (b)    not more than 10% of the debris pool per year.
            (4)    Trees in a carbon estimation area may be thinned for ecological purposes provided the biomass resulting from thinning remains in the carbon estimation area.
3.9           Limited grazing
                     After the time specified in subsection 2.3(4), grazing of livestock may occur in a carbon estimation area only if:
                            (a)    the grazing does not prevent or inhibit the potential to achieve forest cover, or the growth or maintenance of forest cover; and
                            (b)    there is evidence that demonstrates, to the satisfaction of the Regulator, that the grazing has not affected the forest cover.
                         Note    Evidence may include date-stamped, geo-referenced remotely-sensed imagery. 
 
Part 4              The net abatement amount
Division 4.1           The net abatement amount
4.1           The net abatement amount
         Note    See paragraph 106(1)(c) of the Act.
                     For an eligible offsets project to which this Determination applies, the carbon dioxide equivalent net abatement amount in relation to a reporting period for the project is taken to be the change in carbon stock for the project area less the project emissions—see section 4.15.
Division 4.2           Calculations—Preliminary
4.2           General
                     In this Part:
                            (a)    all calculations are in respect of activities undertaken, or outcomes achieved, during a reporting period for the eligible offsets project; and
                            (b)    if a calculation refers to a factor or parameter prescribed in the NGER Measurement Determination or the NGER Regulations, the person carrying out the calculations must apply, to the whole reporting period, the NGER Measurement Determination or NGER Regulations in force at the time that the offsets report was submitted or was required to be submitted, whichever is earlier.
4.3           Greenhouse gas assessment boundary
                     When making calculations under this Part:
                            (a)    the carbon pools and emission sources and the corresponding greenhouse gases in the following table must be taken into account; and
                            (b)    no other gases, carbon pools or emission sources may be taken into account.
Table of gases accounted for in the abatement calculations.
Carbon pools and emission sources
Greenhouse gas

Live above-ground biomass
Carbon dioxide (CO2)

Live below-ground biomass
Carbon dioxide (CO2)

Dead plant material and debris
Carbon dioxide (CO2)

Fuel use
Methane (CH4)
Nitrous oxide (N2O)
Carbon dioxide (CO2)

Fire
Methane (CH4)
Nitrous oxide (N2O)
Carbon dioxide (CO2)

4.4           Baseline for the project
                     For the purposes of paragraph 106(4)(f) of the Act:
                            (a)    the baseline for a project in relation to a reporting period is the carbon stock that the carbon estimation areas for the project would have had in the absence of the project if the land use and management had continued as they were during the baseline period for the project; and
                            (b)    the baseline amount is taken to be zero.
                         Note    The baseline amount will not normally be precisely zero for land that has the potential to achieve forest cover, but will be small enough to be taken to be zero for the purposes of this Determination.
4.5           Potential to achieve forest cover required for calculations
            (1)    The carbon stock of a carbon estimation area that does not yet have the potential to achieve forest cover must be recorded as zero.
                         Note    Potential to achieve forest cover is demonstrated by having sufficient planting density or stocking density, in stems per hectare, to achieve 20% crown cover at maturity.
            (2)    For the purposes of calculating carbon stock, the modelling commencement date in the RMT must be the date on which the last planting occurred within the carbon estimation area as demonstrated by:
                            (a)    remotely-sensed imagery; or
                            (b)    other documented evidence that demonstrates to the satisfaction of the Regulator the planting of the carbon estimation area.
4.6           Changes in carbon estimation areas
                     All calculations under this Part must be done on the basis of the carbon estimation areas of the project as they stood at the end of the current reporting period.
4.7           Use of Reforestation Modelling Tool (RMT)
            (1)    The RMT must be used to determine:
                            (a)    the initial carbon stock for each carbon estimation area () at the beginning of the reporting period;
                            (b)    the carbon stock for a carbon estimation area at the end of the reporting period ();
                             (c)    the tree layer carbon emitted to the atmosphere for each month of a reporting period ();
                            (d)    the debris layer carbon emitted to the atmosphere for each month of a reporting period (); and
                            (e)    the emissions from fire within a carbon estimation area ().
            (2)    To determine the parameters specified in subsection (1), the project proponent must collect and provide and record input data to the RMT in the format required by the tool including the following information:
                            (a)    the area and modelling point latitude and longitude data for each carbon estimation area; and
                            (b)    forest management information as specified in section 5.5 for each carbon estimation area.
Model settings for RMT
            (3)    The ‘mixed species environmental planting’ species setting in the RMT must be used in conjunction with the information specified in subsection (2) for the purposes of carrying out the calculations in Division 4.3.
            (4)    The regime setting appropriate for the establishment method used in the RMT must be selected and must be one of the following:
                            (a)    ‘Non-harvested regime, planting density : direct seeding’;
                            (b)    ‘Non-harvested regime, planting density : high (>= 1,200 stems/ha)’;
                             (c)    ‘Non-harvested regime, planting density : low (