(1) For the purposes of this Act, a covered emission from the operation of a facility is a scope 1 emission of greenhouse gas, where:
(a) the greenhouse gas is released into the atmosphere as a direct result of the operation of the facility; and
(b) the greenhouse gas is released in Australia; and
(c) the Minister has, under subsection 10(3) of the National Greenhouse and Energy Reporting Act 2007 , determined:
(i) methods by which the amounts of the scope 1 emission are to be measured; or
(ii) criteria for methods by which the amounts of the scope 1 emission are to be measured.
Exclusion of emissions from the combustion of certain fuels
(2) For the purposes of this Act, a covered emission from the operation of a facility does not include emissions attributable to the combustion of:
(a) liquid petroleum fuel; or
(b) liquid petroleum gas; or
(c) liquefied natural gas; or
(d) compressed natural gas;
that has been subject to:
(e) any duty under the Customs Tariff Act 1995 ; or
(f) any duty under the Excise Tariff Act 1921 .
(3) For the purposes of this Act, a covered emission from the operation of a facility does not include emissions attributable to the combustion of:
(a) biomass; or
(b) biofuel; or
(c) biogas.
Exclusion of agricultural emissions
(4) For the purposes of this Act, a covered emission from the operation of a facility does not include any of the following emissions:
(a) an emission of methane from the digestive tract of livestock;
(b) an emission of:
(i) methane; or
(ii) nitrous oxide;
from the decomposition of:
(iii) livestock urine; or
(iv) livestock dung;
(c) an emission of methane from:
(i) rice fields; or
(ii) rice plants;
(d) an emission of:
(i) methane; or
(ii) nitrous oxide;
from the burning of:
(iii) savannas; or
(iv) grasslands;
(e) an emission of:
(i) methane; or
(ii) nitrous oxide;
from the burning of:
(iii) crop stubble in fields; or
(iv) crop residues in fields; or
(v) sugar cane before harvest;
(f) an emission of:
(i) carbon dioxide; or
(ii) methane; or
(iii) nitrous oxide;
from soil.
(5) Paragraph (4)(f) does not apply to an emission that is attributable to the operation of a landfill facility.
Exclusion of other emissions from land
(6) For the purposes of this Act, a covered emission from the operation of a facility does not include emissions:
(a) that are attributable to changes in the levels of carbon sequestered in:
(i) living biomass; or
(ii) dead organic matter; or
(iii) soil; and
(b) that are also attributable to:
(i) land use; or
(ii) changes in land use (including land clearing); or
(iii) forestry activities; and
(c) that are not emissions to which subsection (4) applies.
(7) Subsection (6) does not apply to an emission that is attributable to the operation of a landfill facility.
Exclusion of fugitive emissions from decommissioned underground mines
(8) For the purposes of this Act, a covered emission from the operation of a facility does not include fugitive emissions from a decommissioned underground mine.
Exclusion of legacy emissions from landfill facilities
(9) For the purposes of this Act, a covered emission from the operation of a landfill facility does not include legacy emissions from the operation of the facility.
Exclusion of exempt landfill emissions from landfill facilities
(9A) For the purposes of this Act, a covered emission from the operation of a landfill facility does not include exempt landfill emissions from the operation of the facility.
Exclusion of emissions from closed landfill facilities
(10) If:
(a) a landfill facility has not accepted any waste since the start of 1 July 2012; and
(b) an amount of greenhouse gas is emitted from the operation of the facility;
the amount mentioned in paragraph (b), to the extent to which it is attributable to solid waste, is not a covered emission from the operation of the landfill facility.
Exclusion of emissions of certain synthetic greenhouse gases
(11) For the purposes of this Act, a covered emission from the operation of a facility does not include any of the following emissions:
(a) an emission of a hydrofluorocarbon;
(b) an emission of sulfur hexafluoride;
(c) an emission of a perfluorocarbon.
(12) Paragraph (11)(c) does not apply to an emission that is attributable to aluminium production.