RENEWABLE ENERGY (ELECTRICITY) REGULATIONS 2001 - SCHEDULE 6 Emissions-intensive trade-exposed activities

Commonwealth Consolidated Regulations

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RENEWABLE ENERGY (ELECTRICITY) REGULATIONS 2001 - SCHEDULE 6

Emissions-intensive trade-exposed activities

601 Preliminary

(1) In this Schedule:

(a) Division 1 of a Part (other than this Part) specifies activities that are emissions-intensive trade-exposed activities; and

(b) Division 2 of the Part sets out whether the activity is:

(i) highly emissions-intensive; or

(ii) moderately emissions-intensive; and

(c) Division 3 of the Part sets out the electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the activity.

Note The matters mentioned in paragraphs (b) and (c) are required for the purpose of calculating the amount of a liable entity's partial exemption for a year in relation to an emissions-intensive trade-exposed activity and site -- see paragraph 46B (1) (a) of the Act. The method for calculating the relevant amount is set out in regulations 22Z to 22ZH.

(2) In this Schedule, unless the contrary intention appears:

(a) a concentration of a substance that is expressed as a percentage is a percentage with respect to mass; and

(b) a reference to the moisture content of a substance expressed as a percentage is a percentage with respect to mass.

Part 2 Production of glass containers

Division 1 Production of glass containers

602 Production of glass containers

(1) The production of glass containers is the physical and chemical transformation of silica (silicon dioxide (SiO ₂)) and other raw and recycled materials (such as cullet) to produce blown or pressed glass containers, by controlled melting and forming in a contiguous process.

(2) The production of glass containers is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

603 Classification of activity

The production of glass containers is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

604 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of glass containers is 0.308 MWh per tonne of blown and pressed glass containers that are:

(a) produced by carrying on the emissions-intensive trade-exposed activity; and

(b) of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 3 Production of bulk flat glass

Division 1 Production of bulk flat glass

605 Production of bulk flat glass

(1) The production of bulk flat glass is the physical and chemical transformation of silica (silicon dioxide (SiO ₂)) and other raw and recycled materials (such as cullet) to produce bulk flat glass products, including wired glass and patterned glass, by controlled melting and forming in a contiguous process.

(2) The production of bulk flat glass is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

606 Classification of activity

The production of bulk flat glass is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

607 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of bulk flat glass is 0.276 MWh per tonne of bulk flat glass that is:

(a) produced by carrying on the emissions-intensive trade-exposed activity; and

(b) of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 4 Production of methanol

Division 1 Production of methanol

608 Production of methanol

(1) The production of methanol is the chemical transformation of 1 or more of the following:

(a) hydrocarbons;

(b) hydrogen feedstocks;

(d) oxygen feedstocks;

to produce liquid methanol (CH ₃OH) in which the concentration of methanol is equal to or greater than 98%.

(2) The production of methanol is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

609 Classification of activity

The production of methanol is specified as a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

610 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of methanol is 0.490 MWh per tonne of 100% equivalent methanol (CH ₃OH) that is produced by carrying on the emissions-intensive trade-exposed activity.

Part 5 Production of carbon black

Division 1 Production of carbon black

611 Production of carbon black

(1) The production of carbon black is the chemical transformation of gaseous or liquid hydrocarbons to produce a colloidal carbon material (known as 'carbon black') in the form of spheres or of fused aggregates of the spheres.

(2) The particle size of the colloidal carbon must be below 1 000nm in at least 1 dimension.

(3) The production of carbon black is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

612 Classification of activity

The production of carbon black is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

613 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of carbon black is 0.514 MWh per tonne, on a dry weight basis, of pelletised carbon black that is:

(a) produced by carrying on the emissions-intensive trade- exposed activity; and

(b) of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 6 Production of white titanium dioxide (TiO ₂) pigment

Division 1 Production of white titanium dioxide (TiO ₂) pigment

614 Production of white titanium dioxide (TiO ₂) pigment

(1) The production of white titanium dioxide (TiO ₂) pigment is the chemical transformation of 1 or more of the following:

(a) rutile (TiO ₂);

(b) synthetic rutile (TiO ₂);

(d) leucoxene;

(e) titanium slag that has an iron (Fe) concentration of greater than or equal to 7%;

to produce white titanium dioxide (TiO ₂) pigment.

(2) The white titanium dioxide (TiO ₂) pigment must:

(a) conform with ASTM classification D476-00; and

(b) have an iron (Fe) concentration of less than or equal to 0.5%.

(3) The production of white titanium dioxide (TiO ₂) pigment is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

615 Classification of activity

The production of white titanium dioxide (TiO ₂) pigment is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

616 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of white titanium dioxide (TiO ₂) pigment is 0.986 MWh per tonne of white titanium dioxide pigment that:

(a) is produced by carrying on the emissions-intensive trade-exposed activity; and

(b) conforms with ASTM classification D476-00; and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 7 Production of silicon

Division 1 Production of silicon

617 Production of silicon

(1) The production of silicon is the chemical transformation of silica (silicon dioxide (SiO ₂)) to produce silicon (Si) with a concentration of silicon equal to or greater than 98.0%, conducted in accordance with the overall chemical equation:

(2) The production of silicon is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

618 Classification of activity

The production of silicon is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

619 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of silicon is 11.7 MWh per tonne of silicon that:

(a) has a concentration of silicon equal to or greater than 98.0%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

Note Saleable quality is defined in regulation 22C.

Part 8 Smelting zinc

Division 1 Smelting zinc

620 Smelting zinc

(1) Smelting zinc is the chemical transformation of either or both of:

(a) concentrated mineralised zinc compounds; and

(b) zinc-bearing secondary materials;

to produce zinc metal (Zn) with a concentration of zinc equal to or greater than 99.95%.

(2) Smelting zinc is specified as an emissions-intensive trade- exposed activity.

Division 2 Classification of activity

621 Classification of activity

Smelting zinc is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

622 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of smelting zinc is 4.25 MWh per tonne of zinc that:

(a) has a concentration of zinc equal to or greater than 99.95%; and

(b) is produced by carrying on the emissions-intensive trade-exposed activity; and

Note Saleable quality is defined in regulation 22C.

Part 9 Integrated production of lead and zinc

Division 1 Integrated production of lead and zinc

623 Integrated production of lead and zinc

(1) The integrated production of lead and zinc is the chemical transformation of either or both of:

(a) concentrated mineralised lead compounds, with or without additional lead-bearing secondary materials; and

(b) concentrated mineralised zinc compounds, with or without additional zinc-bearing secondary materials;

to produce:

(d) zinc in fume (Zn) with a concentration of zinc equal to or greater than 60%.

(2) The integrated production of lead and zinc is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

624 Classification of activity

The integrated production of lead and zinc is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

625 Electricity baseline for product

(1) For the production of lead metal (Pb), the basis for calculating the amount of a liable entity's partial exemption is 0.355 MWh per tonne of lead metal that:

(a) has a concentration of lead equal to or greater than 99.97%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

Note Saleable quality is defined in regulation 22C.

(2) For the production of zinc in fume (Zn), the basis for calculating the amount of a liable entity's partial exemption
is 0.820 MWh per tonne of 100% equivalent zinc contained within zinc in fume that:

(a) has a concentration of zinc equal to or greater than 60%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity.

Part 10 Aluminium smelting

Division 1 Aluminium smelting

626 Aluminium smelting

(1) Aluminium smelting is the physical and chemical transformation of alumina (aluminium oxide (Al2O3)) into saleable aluminium metal (Al).

(2) Aluminium smelting is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

627 Classification of activity

Aluminium smelting is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

628 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of aluminium smelting is 15.0 MWh per tonne of primary aluminium (Al) that:

(a) has a concentration of aluminium equal to or greater than 98%; and

(b) is produced as part of carrying on the emissions-intensive trade-exposed activity; and

Part 11 Production of high purity ethanol

Division 1 Production of high purity ethanol

629 Production of high purity ethanol

(1) The production of high purity ethanol is the chemical transformation of fermentable sugars (such as C ₆H ₁₂O ₆, C ₅H ₁₀O ₅, C ₁₂H ₂₂O ₁₁ or C ₁₈H ₃₂O ₁₆) to ethanol (C ₂H ₅OH) and subsequent purification process to obtain a solution of high purity ethanol where the concentration of ethanol is equal to or greater than 95% with respect to volume.

(2) The production of high purity ethanol is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

630 Classification of activity

The production of high purity ethanol is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

631 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of high purity ethanol is 0.168 MWh per kilolitre of 100% equivalent ethanol (C ₂H ₅OH) at 20 °C that is produced by carrying on the emissions-intensive trade-exposed activity, assuming a density of ethanol of 789.24 kg/m ³ at 20 °C.

Part 12 Production of magnesia

Division 1 Production of magnesia

632 Production of magnesia

(1) The production of magnesia is the chemical and physical transformation of magnesite (magnesium carbonate (MgCO ₃)) into 1 or more of the following magnesia products:

(a) caustic calcined magnesia that:

(i) has a concentration of magnesium oxide (MgO) equal to or greater than 75%; and

(ii) is burned between 650 °C and 1 200 °C;

(b) deadburned magnesia that:

(i) has a concentration of magnesium oxide equal to or greater than 85%; and

(ii) has grain density of 2.85 g/cm ³ to 3.45 g/cm ³; and

(iii) is burned between 1 300 °C and 2 200 °C;

(i) has a concentration of magnesium oxide equal to or greater than 90%; and

(ii) has grain density of greater than 3.45 g/cm ³; and

(iii) is fused at temperatures in excess of 2 750 °C.

(2) The production of magnesia is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

633 Classification of activity

The production of magnesia is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

634 Electricity baseline for product

(1) For the production of caustic calcined magnesia, the basis for calculating the amount of a liable entity's partial exemption is 0.0757 MWh per tonne of caustic calcined magnesia on a dry weight basis that:

(a) has a concentration of magnesium oxide (MgO) equal to or greater than 75%; and

(b) is produced by, or as part of, carrying on the emissions-intensive trade-exposed activity; and

whether or not it is later transformed into deadburned magnesia or electrofused magnesia.

Note Saleable quality is defined in section 22C.

(2) For the production of deadburned magnesia, the basis for calculating the amount of a liable entity's partial exemption is 0.202 MWh per tonne of deadburned magnesia on a dry weight basis that:

(a) has a concentration of magnesium oxide equal to or greater than 85%; and

(b) has grain density of 2.85 g/cm ³to 3.45 g/cm ³; and

(d) is of saleable quality.

Note Saleable quality is defined in section 22C.

(3) For the production of electrofused magnesia, the basis for calculating the amount of a liable entity's partial exemption is 2.45 MWh per tonne of electrofused magnesia on a dry weight basis that:

(a) has a concentration of magnesium oxide equal to or greater than 90%; and

(b) has grain density of greater than 3.45 g/cm ³; and

(d) is of saleable quality.

Note Saleable quality is defined in section 22C.

Part 13 Manufacture of newsprint

Division 1 Manufacture of newsprint

635 Manufacture of newsprint

(1) The manufacture of newsprint is the physical or chemical transformation of any or all of woodchips, sawdust, wood pulp and recovered paper into rolls of uncoated newsprint that:

(a) has a grammage range of 30 g/m ² to 80 g/m ²; and

(b) has a moisture content in the range of 6% to 11%; and

through an integrated process.

(2) The manufacture of newsprint is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

636 Classification of activity

The manufacture of newsprint is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

637 Electricity baseline for product

(1) For the manufacture of uncoated newsprint that:

(a) has a grammage range of 30 g/m ² to 80 g/m ²; and

(b) has a moisture content in the range of 6% to 11%; and

the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.697 MWh per air dried tonne of rolls of uncoated newsprint of saleable quality produced by carrying on the emissions-intensive trade-exposed activity.

Note saleable quality is defined in regulation 22C.

(2) For the production of pulp from either or both of woodchips and sawdust, the basis for calculating the amount of a liable entity's partial exemption is 2.48 MWh per tonne of bone dried equivalent pulp that is:

(a) used in the integrated process of manufacturing newsprint; and

(b) produced as part of carrying on the emissions-intensive trade-exposed activity.

(3) For the production of pulp from recovered paper, the basis for calculating the amount of a liable entity's partial exemption is 0.431 MWh per tonne of bone dried equivalent pulp that is:

(a) used in the integrated process of manufacturing newsprint; and

(b) produced as part of carrying on the emissions-intensive trade-exposed activity.

(4) For this Part, an amount of pulp or paper that is used as
a basis for calculating the amount of a liable entity's partial exemption for 1 of the following emissions-intensive trade-exposed activities:

(a) the manufacture of newsprint;

(b) dry pulp manufacturing;

(d) packaging and industrial paper manufacturing;

(e) printing and writing paper manufacturing;

(f) tissue paper manufacturing;

does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.

Part 14 Dry pulp manufacturing

Division 1 Dry pulp manufacturing

638 Dry pulp manufacturing

(1) Dry pulp manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into either or both of rolls and bales of dry pulp that:

(a) has a moisture content in the range of 4% to 14%; and

(b) is generally useable in either or both of:

(i) paper manufacturing; and

(ii) the production of sanitary products (such as a fluff pulp layer in sanitary products).

(2) Dry pulp manufacturing is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

639 Classification of activity

Dry pulp manufacturing is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

640 Electricity baseline for product

(1) For dry pulp manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.404 MWh per tonne of either or both of rolls and bales of dry pulp that:

(a) has a moisture content in the range of 4% to 14%; and

(b) is generally useable in either or both of:

(i) paper manufacturing; and

(ii) the production of sanitary products (such as a fluff pulp layer in sanitary products); and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(2) For the production of pulp from either or both of woodchips and sawdust as part of dry pulp manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.448 MWh per total air dried tonne (applying a 10% moisture content) of equivalent pulp that is:

(a) produced from either or both of woodchips and sawdust;

(b) used in the process of manufacturing dry pulp; and

(3) For this Part, an amount of pulp or paper that is used as a basis for calculating the amount of a liable entity's partial exemption for 1 of the following emissions-intensive trade-exposed activities:

(a) the manufacture of newsprint;

(b) dry pulp manufacturing;

(d) packaging and industrial paper manufacturing;

(e) printing and writing paper manufacturing;

(f) tissue paper manufacturing;

does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.

Part 15 Cartonboard manufacturing

Division 1 Cartonboard manufacturing

641 Cartonboard manufacturing

(1) Cartonboard manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of cartonboard that:

(a) has a grammage range of 150 g/m ² to 500 g/m ²; and

(b) has a moisture content in the range of 4% to 11%, and

(d) is generally useable as cartonboard product such as coated kraft liner, coated multiply and other coated paperboard.

(2) Cartonboard manufacturing is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

642 Classification of activity

Cartonboard manufacturing is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

643 Electricity baseline for product

(1) For cartonboard manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.775 MWh per total tonne of rolls of cartonboard that:

(a) has a grammage range of 150 g/m ² to 500 g/m ²; and

(b) has a moisture content in the range of 4% to 11%; and

(d) is generally useable as cartonboard product such as coated kraft liner, coated multiply and other coated paperboard; and

(e) is produced by carrying on the emissions-intensive trade-exposed activity; and

(f) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(2) For the production of pulp from either or both of woodchips and sawdust as part of cartonboard manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.448 MWh per total air dried tonne (applying a 10% moisture content) of equivalent pulp that is:

(a) produced from either or both of woodchips and sawdust; and

(b) used in the process of cartonboard manufacturing; and

(a) the manufacture of newsprint;

(b) dry pulp manufacturing;

(d) packaging and industrial paper manufacturing;

(e) printing and writing paper manufacturing;

(f) tissue paper manufacturing;

does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.

Part 16 Packaging and industrial paper manufacturing

Division 1 Packaging and industrial paper manufacturing

644 Packaging and industrial paper manufacturing

(1) Packaging and industrial paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of packaging and industrial paper that

(a) is produced from wholly or partially unbleached input fibre; and

(b) has a grammage range of 30 g/m ²to 500 g/m ²; and

(d) is uncoated; and

(e) is generally useable as a packaging or industrial paper, including products such as kraft liner, recycled or multiply liner, medium, sack and bag paper, wrapping paper, plasterboard liner, horticultural paper and building paper.

(2) Packaging and industrial paper manufacturing is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

645 Classification of activity

Packaging and industrial paper manufacturing is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

646 Electricity baseline for product

(1) For packaging and industrial paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.554 MWh per total tonne of rolls of packaging and industrial paper that:

(a) is produced from wholly or partially unbleached input fibre; and

(b) has a grammage range of 30 g/m ²to 500 g/m ²; and

(d) is uncoated; and

(e) is generally useable as a packaging or industrial paper product, including products such as kraft liner, recycled or multiply liner, medium, sack and bag paper, wrapping paper, plasterboard liner, horticultural paper and building paper.

(e) is produced by carrying on the emissions-intensive trade-exposed activity; and

(f) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(2) For the production of pulp from either or both of woodchips and sawdust as part of packaging and industrial paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:

(a) produced from either or both of woodchips and sawdust; and

(b) used in the process of manufacturing packaging and industrial paper; and

(3) For this Part, an amount of pulp or paper that is used as
a basis for calculating the amount of a liable entity's partial exemption for 1 of the following emissions-intensive trade-exposed activities:

(a) the manufacture of newsprint;

(b) dry pulp manufacturing;

(d) packaging and industrial paper manufacturing;

(e) printing and writing paper manufacturing;

(f) tissue paper manufacturing;

does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.

Part 17 Printing and writing paper manufacturing

Division 1 Printing and writing paper manufacturing

647 Printing and writing paper manufacturing

(1) Printing and writing paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of coated or uncoated printing and writing paper that:

(a) is produced from 100% bleached or brightened input fibre; and

(b) has a grammage range of 42 g/m ²to 350 g/m ²; and

(d) is generally useable as a printing and writing paper product, including products such as offset paper, copy paper, laser printing paper, magazine paper, filing card paper, manilla, book printing paper, envelope paper, forms paper, scholastic paper, cheque paper and security paper.

(2) Printing and writing paper manufacturing is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

648 Classification of activity

Printing and writing paper manufacturing is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

649 Electricity baseline for product

(1) For printing and writing paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.880 MWh per total tonne of rolls of coated or uncoated printing and writing paper that:

(a) is produced from 100% bleached or brightened input fibre; and

(b) has a grammage range of 42 g/m ²to 350 g/m ²; and

(e) is produced by carrying on the emissions-intensive trade- exposed activity; and

(f) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(2) For the production of pulp from either or both of woodchips and sawdust as part of printing and writing paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:

(a) produced from either or both of woodchips and sawdust; and

(b) used in the process of manufacturing printing and writing paper; and

(3) For this Part, an amount of pulp or paper that is used as
a basis for calculating the amount of a liable entity's partial exemption for 1 of the following emissions-intensive trade-exposed activities:

(a) the manufacture of newsprint;

(b) dry pulp manufacturing;

(d) packaging and industrial paper manufacturing;

(e) printing and writing paper manufacturing;

(f) tissue paper manufacturing;

does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.

Part 18 Alumina refining

Division 1 Alumina refining

650 Alumina refining

(1) Alumina refining is the physical and chemical transformation of bauxite (which is an ore containing mineralised aluminium compounds) into alumina (aluminium oxide (Al ₂O ₃)) with a concentration of aluminium oxide equal to or greater than 95%.

(2) Alumina refining is specified as an emissions-intensive trade- exposed activity.

Division 2 Classification of activity

651 Classification of activity

Alumina refining is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

652 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in relation to alumina refining is 0.228 MWh per tonne of alumina (aluminium oxide (Al ₂O ₃)) that:

(a) has a concentration of aluminium oxide equal to or greater than 95%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

Note Saleable quality is defined in regulation 22C .

Part 19 Tissue paper manufacturing

Division 1 Tissue paper manufacturing

653 Tissue paper manufacturing

(1) Tissue paper manufacturing is the physical or chemical transformation of any or all of wood chips, sawdust, wood pulp and recovered paper into rolls of uncoated tissue paper that:

(a) has a grammage range of 13 g/m ² to 75 g/m ²; and

(b) has a moisture content in the range of 4% to 11%; and

(2) Tissue paper manufacturing is specified as an emissions- intensive trade-exposed activity.

Division 2 Classification of activity

654 Classification of activity

Tissue paper manufacturing is a moderately emissions- intensive activity.

Division 3 Electricity baseline for calculating partial exemption

655 Electricity baseline for product

(1) Subject to subclause (3), for tissue paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 1.67 MWh per total tonne of rolls of uncoated tissue paper that:

(a) has a grammage range of 13 g/m ² to 75 g/m ²; and

(b) has a moisture content in the range of 4% to 11%; and

(d) is produced by carrying on the emissions-intensive trade-exposed activity; and

(e) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(2) For the production of pulp from either or both of woodchips and sawdust as part of the tissue paper manufacturing, the basis for calculating the amount of a liable entity's partial exemption is 0.448 MWh per total air dried tonne (assuming a 10% moisture content) of equivalent pulp that is:

(a) produced from either or both of woodchips and sawdust; and

(b) used in the process of manufacturing tissue paper; and

(a) the manufacture of newsprint;

(b) dry pulp manufacturing;

(d) packaging and industrial paper manufacturing;

(e) printing and writing paper manufacturing;

(f) tissue paper manufacturing;

does not count for the purpose of the basis for allocation of another of those emissions-intensive trade-exposed activities.

Part 20 Integrated iron and steel manufacturing

Division 1 Integrated iron and steel manufacturing

656 Integrated iron and steel manufacturing

(1) Integrated iron and steel manufacturing is the chemical and physical transformation of iron ore into crude carbon steel products and hot-rolled carbon steel products involving all of the following processes:

(a) the chemical and physical transformation of iron ore into agglomerated iron ore, such as iron ore sinter or iron ore pellets;

(b) the carbonisation of coal (principally coking coal) into coke oven coke;

(c) the chemical and physical transformation of either or both of limestone or dolomite, into lime (including burnt lime and burnt dolomite);

(d) the chemical and physical transformation of iron ore feed, including agglomerated iron ore, into molten iron which includes the reduction of oxides of iron using carbon as the predominant reducing agent;

(e) subject to subclause (3), the chemical and physical transformation of molten iron and cold ferrous feed, such as pig iron, flat iron and ferrous scrap, into 1 or more of the following:

(i) continuously cast carbon steel products;

(ii) ingots of carbon steel;

(iii) hot-rolled carbon steel products, which commenced hot-rolling at a temperature above 800 °C.

Note Carbon steel and coke oven coke are defined in regulation 22A.

(2) Integrated iron and steel manufacturing may also include the physical transformation of continuously cast carbon steel products into hot-rolled carbon steel products which commence hot-rolling at a temperature above 800 °C if the continuously cast carbon steel products are produced:

(a) at a site that:

(i) conducts the activity of integrated iron and steel manufacturing; and

(ii) is not a site that is part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or

(b) from the activity of manufacture of carbon steel from cold ferrous feed.

Note Activity group is defined in regulation 22A.

(3) For paragraph (1) (e), the maximum percentage of cold
ferrous feed transformed into 1 or more of the items in subparagraphs (1) (e) (i) to (iii) as a proportion of molten iron and cold ferrous feed, must not:

(a) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and that is not part of an activity group -- be greater than 30% over the relevant financial year for the site; or

(b) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and that is part of an activity group -- be greater than 30% over the relevant financial year for the sites that are part of the activity group; or

(c) for a site that does meet the criteria specified in subregulation 22ZD (3) for a new entrant site -- be likely to be greater than 30% over the relevant financial year for the site.

Note Activity group and relevant financial year are defined in regulation 22A.

(4) Integrated iron and steel manufacturing is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

657 Classification of activity

Integrated iron and steel manufacturing is a highly emissions- intensive activity.

Division 3 Electricity baseline for calculating partial exemption

658 Electricity baseline for product

(1) For the production of iron ore sinter, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0397 MWh per tonne of iron ore sinter on a dry weight basis that:

(a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and

(b) is produced as part of carrying on the emissions-intensive trade-exposed activity.

(2) For the production of iron ore pellets, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0742 MWh per tonne of iron ore pellets on a dry weight basis that:

(a) meet the necessary requirements for use in the integrated iron and steel manufacturing process; and

(b) are produced as part of carrying on the emissions-intensive trade-exposed activity.

(3) For the production of coke oven coke, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0397 MWh per tonne of coke oven coke on a dry weight basis that is produced as part of carrying on the emissions- intensive trade-exposed activity.

(4) For the production of lime, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0405 MWh per tonne of lime on a dry weight basis that:

(a) meets the necessary requirements for use in the integrated iron and steel manufacturing process; and

(b) is produced as part of carrying on the emissions-intensive trade-exposed activity.

(5) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.145 MWh per tonne of either or both of continuously cast carbon steel products and ingots of carbon steel that:

(a) are produced as part of carrying on the emissions-intensive trade-exposed activity; and

(b) are not a relevant product for the emissions-intensive trade-exposed activity of the manufacture of carbon steel from cold ferrous feed; and

Note 1 Carbon steel and relevant product are defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

(6) For the production of hot-rolled carbon steel products that are long products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.133 MWh per tonne of long products of hot-rolled carbon steel that:

(a) is in coils or straight lengths; and

(b) is generally produced in rod, bar and structural (section) mills; and

(c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and

(d) is produced by carrying on the emissions-intensive trade- exposed activity; and

(e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and

(f) is not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and

(g) is not a relevant product for the emissions-intensive trade-exposed activity of the manufacture of carbon steel from cold ferrous feed; and

(h) is of saleable quality.

Note 1 Activity group , carbon steel and relevant product are defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

(7) For the production of hot-rolled carbon steel products that are flat products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.116 MWh per tonne of flat products of hot-rolled carbon steel that:

(a) is flat in profile, such as plate and hot rolled coil; and

(b) is generally produced in hot strip mills and plate mills; and

(d) is generally less than 150 mm in thickness; and

(e) is produced by carrying on the emissions-intensive trade- exposed activity; and

(f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (8); and

(g) is not a relevant product for the emissions-intensive trade- exposed activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and

(h) is not a relevant product for the emissions-intensive trade- exposed activity of the manufacture of carbon steel from cold ferrous feed; and

(i) is of saleable quality.

Note 1 Activity group , carbon steel and relevant product are defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

(8) For paragraphs (6) (e) and (7) (f), the continuously cast carbon steel products must:

(a) be produced as part of carrying on the emissions-intensive trade-exposed activity; or

(b) be produced from the activity of integrated iron and steel manufacturing that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or

Note Activity group and relevant product are defined in regulation 22A.

Part 21 Manufacture of carbon steel from cold ferrous feed

Division 1 Manufacture of carbon steel from cold ferrous feed

659 Manufacture of carbon steel from cold ferrous feed

(1) The manufacture of carbon steel from cold ferrous feed is the physical and chemical transformation of cold ferrous feed (such as ferrous scrap, pig iron and flat iron) by heating and melting into liquid steel and the subsequent casting of the liquid steel to produce 1 or more of the following:

(a) continuously cast carbon steel products;

(b) ingots of carbon steel;

(2) The manufacture of carbon steel from cold ferrous feed
may also include the physical transformation of continuously cast carbon steel products into hot-rolled carbon steel
products which commenced hot-rolling at a temperature above 800 °C where the continuously cast carbon steel products are produced:

(a) at a site that:

(i) conducts the activity of manufacture of carbon steel from cold ferrous feed; and

(ii) is not a site that is part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or

(b) from the activity of integrated iron and steel manufacturing.

Note Activity group is defined in regulation 22A.

(3) The manufacture of carbon steel from cold ferrous feed is specified as an emissions-intensive trade-exposed activity.

Note Carbon steel is defined in regulation 22A.

Division 2 Classification of activity

660 Classification of activity

The manufacture of carbon steel from cold ferrous feed is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

661 Electricity baseline for product

(1) For the production of either or both of continuously cast carbon steel products and ingots of carbon steel, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.532 MWh per tonne of either or both continuously cast carbon steel products and ingots of carbon steel that:

(a) are produced as part of carrying on the emissions-intensive trade-exposed activity; and

(b) are not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and

Note 1 Carbon steel and relevant product are defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

(2) For the production of hot-rolled carbon steel products which are long products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.133 MWh per tonne of long products of hot-rolled carbon steel that:

(a) is in coils or straight lengths; and

(b) is generally produced in rod, bar and structural (section) mills; and

(c) generally has a cross sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile or rail profile; and

(d) is produced by carrying on the emissions-intensive trade-exposed activity; and

(e) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (4); and

(f) is not a relevant product for the emissions-intensive trade-exposed activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and

(g) is not a relevant product for the emissions-intensive
trade-exposed activity of integrated iron and steel manufacturing; and

(h) is of saleable quality.

Note 1 Activity group , carbon steel and relevant product are defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

(3) For the production of hot-rolled carbon steel products which are flat products, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.116 MWh per tonne of flat products of hot-rolled carbon steel that:

(a) is flat in profile, such as plate and hot rolled coil; and

(b) is generally produced in hot strip and plate mills; and

(d) is generally less than 150 mm in thickness; and

(e) is produced by carrying on the emissions-intensive trade-exposed activity; and

(f) is produced from continuously cast carbon steel products that satisfy the requirements mentioned in subclause (4); and

(g) is not a relevant product for the emissions-intensive trade-exposed activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; and

(h) is not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and

(i) is of saleable quality.

Note 1 Carbon steel is defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

(4) For paragraphs (2) (e) and (3) (f), the continuously cast carbon steel products must:

(a) be produced as part of carrying on the emissions-intensive trade-exposed activity; or

(b) be produced from the activity of manufacture of carbon steel from cold ferrous feed that is conducted at a site that is not part of the activity group associated with the activity that is the subject of the application made under subsection 46A (1) of the Act; or

Note Activity group and relevant product are defined in regulation 22A.

Part 22 Petroleum refining

Division 1 Petroleum refining

662 Petroleum refining

(1) Petroleum refining is the chemical and physical transformation of stabilised crude petroleum oil, which may be supplemented with 1 or more of condensate, tallow, vegetable oil, eligible petroleum feedstocks or other petroleum feedstocks, to produce a range of refined petroleum products through the following processes:

(a) the distillation of stabilised crude petroleum oil, condensate, tallow, vegetable oil and other petroleum feedstocks;

(b) the adjustment of the molecular weight and structure
of hydrocarbons (such as that which occurs through
catalytic or hydro-cracking, steam or catalytic reforming, polymerisation, isomerisation or alkylation);

(c) the blending of products from distillation and adjustment of molecular weight and structure to produce Australian and international standard diesel, jet fuel and unleaded petrol;

(d) the production of 2 or more of the following refinery products saleable in Australian or international markets:

(i) hydrogen;

(ii) ethane;

(iii) propane;

(iv) refinery grade propylene;

(v) polymer grade propylene;

(vi) liquefied petroleum gas;

(vii) butane;

(viii) naphtha;

(ix) aviation gasoline;

(x) before oxygenate blend;

(xi) kerosene;

(xii) heating oil;

(xiii) solvents;

(xiv) lubricant base stocks;

(xv) leaded petrol;

(xvi) waxes;

(xvii) bitumen.

Note Condensate , eligible petroleum feedstocks , stabilised crude petroleum oil and unleaded petrol are defined in regulation 22A.

(2) Subject to subclause (3), the activity of petroleum refining will only take place in the application year if both of the following apply:

(a) each of the processes mentioned in paragraphs (1) (a) to (d) are conducted within the relevant financial year for the site;

(b) the combined volume of diesel, jet fuel, unleaded petrol, lubricant base stocks and bitumen at 15°C and 1 atmosphere produced from stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks is:

(i) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and that is not part of an activity group -- equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks used within the relevant financial year for the site; or

(ii) for a site that does not meet the criteria specified in subregulation 22ZD (3) for a new entrant site and that is part of an activity group -- equal to or greater than 75% of the total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks used within the relevant financial year for the sites that are part of the activity group; or

(ii) for a site that does meet the criteria specified in subregulation 22ZD (3) for a new entrant site -- is likely to be equal to or greater than 75% of the
total kilolitres of stabilised crude petroleum oil, condensate, tallow, vegetable oil and eligible petroleum feedstocks likely to be used within the relevant financial year for the site.

Note Activity group and relevant financial year are defined in regulation 22A.

(3) The processes mentioned in paragraphs (1) (a) to (d) are not required to be conducted for every product mentioned in paragraphs (1) (c) and (d) for the activity of petroleum refining to occur in the application year.

(4) Petroleum refining is specified as an emissions-intensive trade-exposed activity.

(5) For this Part:

"application year" , for an application under subsection 46A (1) of the Act, means the year for which the application is made for under subsection 46A (1) of the Act.

Division 2 Classification of activity

663 Classification of activity

Petroleum refining is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

664 Electricity baseline for product

(1) Subject to subclause (2), the electricity baseline for calculating the amount of a liable entity's partial exemption in respect of petroleum refining is 0.0421 MWh per kilolitres of:

(a) stabilised crude petroleum oil at 15 °C and 1 atmosphere; and

(b) condensate at 15 °C and 1 atmosphere; and

(d) vegetable oil at 15 °C and 1 atmosphere; and

(e) eligible petroleum feedstocks at 15 °C and 1 atmosphere.

(2) A substance mentioned in paragraphs (1) (a) to (e) may be used for calculating the amount of a liable entity's partial exemption for subclause (1) if the substance is, or is to be, refined:

(a) by 1 or both of the processes mentioned in paragraphs 662 (1) (a) and (b); and

(b) into either of the following:

(i) 1 or more petroleum products mentioned in paragraphs 662 (1) (c) and (d);

(ii) other by-products which result from carrying on the emissions-intensive trade-exposed activity; and

(i) that applies, for the purpose of subregulation 22ZB (3), to the application made under subsection 46A (1) of the Act; and

(ii) in which the combined volume of diesel, jet
fuel, unleaded petrol, lubricant base stocks and bitumen, at 15 °C and 1 atmosphere, produced from substances mentioned in paragraphs (1) (a) to (e) is:

(A) for new or expected additional production -- likely to be equal to or greater than 75% of the total kilolitres of those substances likely to be used in the financial year; or

(B) for production that is not new or expected additional production -- equal to or greater than 75% of the total kilolitres of those substances used in the financial year.

Note Condensate , eligible petroleum feedstocks , petroleum oil , stabilised crude and unleaded petrol are defined in regulation 22A.

Part 23 Production of ethene (ethylene)

Division 1 Production of ethene (ethylene)

665 Production of ethene (ethylene)

(1) The production of ethene (ethylene) is the chemical transformation of hydrocarbons to produce ethene (ethylene (C ₂H ₄)) that has a concentration of ethene (ethylene (C ₂H ₄)) equal to or greater than 99%.

(2) The production of ethene (ethylene) is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

666 Classification of activity

The production of ethene (ethylene) is a highly emissions- intensive activity.

Division 3 Electricity baseline for calculating partial exemption

667 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of ethene (ethylene) is 0.275 MWh per tonne of 100% equivalent ethene (ethylene (C ₂H ₄)) that is contained within ethene that:

(a) has a concentration of ethene (ethylene (C ₂ H ₄ )) equal to or greater than 99%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

Note Saleable quality is defined in regulation 22C.

Part 24 Production of polyethylene

Division 1 Production of polyethylene

668 Production of polyethylene

(1) The production of polyethylene is the chemical transformation of ethene (ethylene (C ₂H ₄)) to produce polyethylene with a standard density equal to or greater than 0.910 g/cm ³ .

(2) The production of polyethylene is specified as an emissions- intensive trade-exposed activity.

(3) For this Part:

"standard density" , for polyethylene, means the density of polyethylene moulded to a thickness of 1.9 mm using Procedure C of Annex A1 to ASTM D4703, as in force from time to time.

Division 2 Classification of activity

669 Classification of activity

The production of polyethylene is a moderately emissions- intensive activity.

Division 3 Electricity baseline for calculating partial exemption

670 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production
of polyethylene is 0.646 MWh per tonne of pelletised polyethylene that:

(a) has a standard density equal to or greater than 0.910 g/cm ³; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

Note Saleable quality is defined in regulation 22C.

Part 25 Production of synthetic rutile

Division 1 Production of synthetic rutile

671 Production of synthetic rutile

(1) The production of synthetic rutile is the chemical transformation of ilmenite ore (ore containing FeTiO ₃) through the reduction of iron oxides in order to increase the titanium dioxide (TiO ₂) concentration to produce synthetic rutile that:

(a) has a titanium dioxide (TiO ₂) concentration equal to or greater than 88% and less than 95.5%; and

(b) has an iron (Fe) concentration greater than 0.5%.

(2) The production of synthetic rutile is specified as an emissions- intensive trade-exposed activity.

Division 2 Classification of activity

672 Classification of activity

The production of synthetic rutile is a highly emissions- intensive activity.

Division 3 Electricity baseline for calculating partial exemption

673 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of synthetic rutile is 0.304 MWh per tonne of synthetic rutile that:

(a) has a titanium dioxide (TiO ₂) concentration equal to or greater than 88% and less than 95.5%; and

(b) has an iron (Fe) concentration greater than 0.5%; and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 26 Production of manganese

Division 1 Production of manganese

674 Production of manganese

(1) The production of manganese is any of the following:

(a) the physical and chemical transformation of manganese (Mn) ore into manganese sinter (Mn ₃O ₄) that has a concentration of manganese equal to or greater than 40%;

(b) the physical and chemical transformation of either or both of manganese ore and manganese sinter into either or both of the following:

(i) ferromanganese alloy that has a concentration of manganese equal to or greater than 67%;

(ii) silicomanganese alloy that has a concentration of:

(A) manganese equal to or greater than 60%; and

(B) silicon (Si) equal to or greater than 12%.

(2) The production of manganese is specified as an emissions- intensive trade-exposed activity.

Division 2 Classification of activity

675 Classification of activity

The production of manganese is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

676 Electricity baseline for product

(1) For the production of manganese sinter, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.0300 MWh per tonne of manganese sinter that:

(a) has a concentration of manganese equal to or greater than 40%; and

(b) is produced by, or as part of, carrying on the emissions- intensive trade-exposed activity; and

Note Saleable quality is defined in regulation 22C.

(2) For the production of ferromanganese alloy, the electricity baseline for calculating the amount of a liable entity's partial exemption is 2.61 MWh per tonne of ferromanganese alloy that:

(a) has a concentration of manganese equal to or greater than 67%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

Note Saleable quality is defined in regulation 22C.

(3) For the production of silicomanganese alloy, the electricity baseline for calculating the amount of a liable entity's partial exemption is 4.31 MWh per tonne of silicomanganese alloy that:

(a) has a concentration of manganese equal to or greater than 60%; and

(b) has a concentration of silicon (Si) equal to or greater than 12%; and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 27 Production of clinker

Division 1 Production of clinker

677 Production of clinker

(1) The production of clinker is the physical and chemical transformation of:

(a) either or both of calcium carbonate compounds (limestone (CaCO ₃)) and other calcium carbonate (CaCO ₃) feedstocks; and

(b) any of the following:

(i) clay;

(ii) clay mixed with 1 or more feedstocks that contain 1 or more of the following:

(A) silicon dioxide (SiO ₂);

(B) iron (Fe);

(iii) 1 or more feedstocks that, when combined, contain all of the following:

(A) silicon dioxide (SiO ₂); and

(B) iron (Fe); and

that are fused together at a temperature above 1000 °C into Portland cement clinker.

(2) The Portland cement clinker must:

(a) have a concentration of calcium silicates equal to or greater than 60%; and

(b) have a concentration of magnesium oxide (MgO) equal to or less than 4.5%; and

(3) The production of clinker is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

678 Classification of activity

The production of clinker is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

679 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of clinker is 0.0709 MWh per tonne of Portland cement clinker on a dry weight basis that:

(a) is produced by carrying on the emissions-intensive trade-exposed activity; and

(b) has a concentration of calcium silicates equal to or greater than 60%; and

(d) is useable in the making of Portland cement; and

(e) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 28 Production of lime

Division 1 Production of lime

680 Production of lime

(1) The production of lime is the physical and chemical transformation, through the calcining process, of calcium and magnesium sources (such as calcium carbonate (CaCO ₃) and magnesium carbonate (MgCO ₃)) into lime that has a concentration of either or both of calcium oxide (CaO) and magnesium oxide (MgO) equal to or greater than 60%.

(2) The production of lime is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

681 Classification of activity

The production of lime is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

682 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of lime is 0.0476 MWh per tonne of lime on a dry weight basis that:

(a) has a concentration of either or both of calcium oxide (CaO) and magnesium oxide (MgO) equal to or greater than 60%; and

(b) is not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and

(d) is of saleable quality.

Note 1 Relevant product is defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C.

Part 29 Production of fused alumina

Division 1 Production of fused alumina

683 Production of fused alumina

(1) The production of fused alumina is the physical transformation of alumina (aluminium oxide (Al ₂O ₃)) by heating it to its fusion point to produce fused alumina that:

(a) has an alpha alumina crystalline structure; and

(b) has a concentration of aluminium oxide equal to or greater than 99.0%.

(2) The production of fused alumina is specified as an emissions- intensive trade-exposed activity.

Division 2 Classification of activity

684 Classification of activity

The production of fused alumina is a highly emissions- intensive activity.

Division 3 Electricity baseline for calculating partial exemption

685 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of fused alumina is 2.03 MWh per tonne of fused alumina ( aluminium oxide (Al ₂O ₃)) that:

(a) has an alpha alumina crystalline structure; and

(b) has a concentration of aluminium oxide equal to or greater than 99.0%; and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 30 Production of copper

Division 1 Production of copper

686 Production of copper

(1) The production of copper is either or both of the following:

(a) the physical and chemical transformation of concentrated mineralised copper compounds into either or both of the following:

(i) copper cathode that has a concentration of copper greater than 99.90%;

(ii) copper anode that has a concentration of copper:

(A) equal to or greater than 99.00%; and

(B) equal to or less than 99.90%;

(b) the physical and chemical transformation of copper anode into copper cathode that has a concentration of copper greater than 99.90% where the copper anode:

(i) has a concentration of copper:

(A) equal to or greater than 99.00%; and

(B) equal to or less than 99.90%; and

(ii) was not produced as part of the transformation in subparagraph (a) (i).

(2) For subclause (1), concentrated mineralised copper compounds include:

(a) copper sulphide concentrates; and

(b) copper electrolyte solution.

(3) The production of copper is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

687 Classification of activity

The production of copper is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

688 Electricity baseline for product

(1) For the production of copper cathode from concentrated mineralised copper compounds, the electricity baseline for calculating the amount of a liable entity's partial exemption is 1.69 MWh per tonne of copper cathode that:

(a) has a concentration of copper greater than 99.90%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(2) For the production of copper anode from concentrated mineralised copper compounds, the electricity baseline for calculating the amount of a liable entity's partial exemption is 1.31 MWh per tonne of copper anode that:

(a) has a concentration of copper:

(i) equal to or greater than 99.00%; and

(ii) equal to or less than 99.90%; and

(b) is produced by carrying on the emissions-intensive trade- exposed activity; and

(c) is not subsequently transformed into copper cathode as part of the transformation mentioned in subparagraph 686 (1) (a) (i); and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

(3) For the production of copper cathode from copper anode, the electricity baseline for calculating the amount of a liable entity's partial exemption is 0.387 MWh per tonne of copper cathode that:

(a) has a concentration of copper equal to or greater than 99.90%; and

(b) is produced from copper anode that was not produced as part of the transformation mentioned in subparagraph 686 (1) (a) (i); and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 31 Production of carbamide (urea)

Division 1 Production of carbamide (urea)

689 Production of carbamide (urea)

(1) The production of carbamide (urea (CO(NH ₂ ) ₂ )) is the chemical transformation of carbon dioxide (CO ₂) and anhydrous ammonia (NH ₃) to produce carbamide solution (urea (CO(NH ₂ ) _2(aq) )) that:

(a) has a concentration of carbamide (urea (CO(NH ₂) ₂)) equal to or greater than 80%; and

(b) is subsequently used to produce either or both of:

(i) carbamide solutions (urea (CO(NH ₂ ) _2(aq) )); and

(ii) saleable granulated, prilled or other solid forms of carbamide (urea (CO(NH ₂) _2(s))).

(2) The production of carbamide (urea) is specified as an emissions-intensive trade-exposed activity.

Division 2 Classification of activity

690 Classification of activity

The production of carbamide (urea) is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

691 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of carbamide (urea) is 0.285 MWh per tonne of 100% equivalent carbamide (urea (CO(NH ₂) ₂)) on a dry weight basis that is:

(a) contained within either of the following products:

(i) carbamide solutions (urea (CO(NH ₂ ) _2(aq) ));

(ii) saleable, granulated, prilled or other solid forms of carbamide (urea (CO(NH ₂) _2(s))); and

(b) produced by carrying on the emissions-intensive trade exposed activity; and

Note Saleable quality is defined in regulation 22C.

Part 32 Production of sodium carbonate (soda ash) and sodium bicarbonate

Division 1 Production of sodium carbonate (soda ash) and sodium bicarbonate

692 Production of sodium carbonate (soda ash) and sodium bicarbonate

(1) The production of sodium carbonate (soda ash) and sodium bicarbonate is the chemical and physical transformation of calcium carbonate (CaCO ₃), sodium chloride (salt (NaCl)), ammonia (NH ₃) and carbon bearing materials (such as coke) into 1 or more of the following:

(a) light sodium carbonate (light soda ash (Na ₂CO ₃)) which has a concentration of sodium carbonate (soda ash (Na ₂CO ₃)) equal to or greater than 98.0%;

(b) dense sodium carbonate (dense soda ash (Na ₂CO ₃)) which has a concentration of sodium carbonate (soda ash (Na ₂CO ₃)) equal to or greater than 97.5%;

(c) refined sodium bicarbonate (NaHCO ₃) which has a concentration of sodium bicarbonate (NaHCO ₃) equal to or greater than 95.0%.

(2) The production of sodium carbonate (soda ash) and sodium bicarbonate is specified as an emissions-intensive trade exposed activity.

Division 2 Classification of activity

693 Classification of activity

The production of sodium carbonate (soda ash) and sodium bicarbonate is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

694 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of sodium carbonate (soda ash) and sodium bicarbonate is 0.130 MWh per tonne of 1 or more of the following:

(a) light sodium carbonate (light soda ash (Na ₂CO ₃)) that:

(i) has a concentration of sodium carbonate (soda ash (Na ₂CO ₃)) equal to or greater than 98.0%; and

(ii) is produced by carrying on the emissions-intensive trade-exposed activity; and

(iii) is of saleable quality;

(b) dense sodium carbonate (dense soda ash (Na ₂CO ₃)) that:

(i) has a concentration of sodium carbonate (soda ash (Na ₂CO ₃)) equal to or greater than 97.5%; and

(ii) is produced by carrying on the emissions-intensive trade-exposed activity; and

(iii) is of saleable quality;

(i) has a concentration of sodium bicarbonate (NaHCO ₃) equal to or greater than 95.0%; and

(ii) is produced by carrying on the emissions-intensive trade-exposed activity; and

(iii) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

Part 33 Production of ammonia

Division 1 Production of ammonia

695 Production of ammonia

The production of ammonia is the chemical transformation of hydrocarbons (or other hydrogen feedstock) to hydrogen (H ₂ ) that is subsequently reacted with nitrogen (N ₂) to produce anhydrous ammonia (NH ₃) that has a concentration of ammonia (NH ₃) equal to or greater than 98%.

Division 2 Classification of activity

696 Classification of activity

The production of ammonia is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

697 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of ammonia is 0.224 MWh per tonne of 100% equivalent anhydrous ammonia (NH ₃) contained within anhydrous ammonia that:

(a) has a concentration of ammonia equal to or greater than 98%; and

(b) is produced by carrying on the emissions-intensive trade-exposed activity; and

Note Saleable quality is defined in regulation 22C

Part 34 Production of ammonium nitrate

Division 1 Production of ammonium nitrate

698 Production of ammonium nitrate

The production of ammonium nitrate is the chemical transformation of anhydrous ammonia (NH ₃) to ammonium nitrate solution (NH ₄NO _3(aq)) that has a concentration of ammonium nitrate (NH ₄NO ₃) equal to or greater than 60%.

Division 2 Classification of activity

699 Classification of activity

The production of ammonium nitrate is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

700 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of ammonium nitrate is 0.114 MWh per tonne of 100% equivalent ammonium nitrate (NH ₄NO ₃) contained within ammonium nitrate solution (NH ₄NO _3(aq)) that:

(a) has a concentration of ammonium nitrate (NH ₄ NO ₃ ) equal to or greater than 60%; and

(b) is produced by carrying on the emissions-intensive trade-exposed activity; and

Note Saleable qualit y is defined in regulation 22C

Part 35 Production of chlorine gas and sodium hydroxide (caustic soda) solution

Division 1 Production of chlorine gas and sodium hydroxide (caustic soda) solution

701 Production of chlorine gas and sodium hydroxide (caustic soda) solution

(1) The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH _(aq))) is the chemical transformation of sodium chloride solution (NaCl _(aq)) brine to chlorine (Cl _2(1,g)) and sodium hydroxide solution (caustic soda solution (NaOH _(aq))) that has a concentration of sodium hydroxide (NaOH) equal to or greater than 14%.

(2) The production of sodium hydroxide (NaOH) must be 1:1.13 times the produced weight of chlorine (Cl ₂).

(3) The following chemical reaction must be involved in the chemical transformation:

Division 2 Classification of activity

702 Classification of activity

The production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH _(aq))) is a highly emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

703 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of chlorine gas and sodium hydroxide solution (caustic soda solution (NaOH _(aq))) is 2.63 MWh per tonne of 100% equivalent sodium hydroxide (caustic soda (NaOH)) on a dry weight basis that:

(a) is not recycled back into the emissions-intensive trade-exposed activity (such as a stream of sodium hydroxide solution (caustic soda solution NaOH _(aq)) recycled back into the chemical treatment step); and

(b) is contained within the sodium hydroxide solution produced by carrying on the emissions-intensive trade-exposed activity.

Part 36 Production of fused zirconia

Division 1 Production of fused zirconia

704 Production of fused zirconia

The production of fused zirconia is the physical and chemical transformation of zircon (ZrSiO ₄) by:

(a) the removal of silica (silicon dioxide (SiO ₂)) using a reductant such as carbon; and

(b) heating the zircon to its fusion point;

to produce fused zirconia (zirconium dioxide (ZrO ₂)) that has a concentration of zirconium dioxide (ZrO ₂) equal to or greater than 96%.

Division 2 Classification of activity

705 Classification of activity

The production of fused zirconia is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

706 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of fused zirconia is 4.88 MWh per tonne of fused zirconia (zirconium dioxide (ZrO ₂)) that:

(a) has a concentration of zirconium dioxide (ZrO ₂) equal to or greater than 96%; and

(b) is produced by carrying on the emissions-intensive trade-exposed activity; and

Note Saleable quality is defined in regulation 22C

Part 37 Production of iron ore pellets

Division 1 Production of iron ore pellets

707 Production of iron ore pellets

The production of iron ore pellets is the physical and chemical transformation of iron ore to produce saleable iron ore pellets that are for the production of steel and that have:

(a) a concentration of iron (Fe) equal to or greater than 63%; and

(b) a concentration of alumina (aluminium oxide (Al ₂O ₃)) equal to or less than 2%; and

(d) an average diameter of between 9 and 16 millimetres.

Division 2 Classification of activity

708 Classification of activity

The production of iron ore pellets is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

709 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of iron ore pellets is 0.0498 MWh per tonne of iron ore pellets on a dry weight basis that:

(a) have a concentration of iron (Fe) equal to or greater than 63%; and

(b) have a concentration of alumina (aluminium oxide (Al ₂O ₃)) equal to or less than 2%; and

(d) have an average diameter of between 9 and 16 millimetres; and

(e) are not a relevant product for the emissions-intensive trade-exposed activity of integrated iron and steel manufacturing; and

(f) are produced by carrying on the emissions-intensive trade-exposed activity; and

(g) are of saleable quality.

Note 1 Relevant product is defined in regulation 22A.

Note 2 Saleable quality is defined in regulation 22C

Part 38 Production of liquefied natural gas

Division 1 Production of liquefied natural gas

710 Production of liquefied natural gas

The production of liquefied natural gas is the physical transformation of natural gas (in a gaseous state) into liquefied natural gas that has a concentration of methane (CH ₄) equal to or greater than 70%.

Division 2 Classification of activity

711 Classification of activity

The production of liquefied natural gas is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

712 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of liquefied natural gas is 0.0640 MWh per tonne of liquefied natural gas that:

(a) has a concentration of methane (CH ₄) equal to or greater than 70%; and

(b) is produced as part of carrying on the emissions-intensive trade-exposed activity; and

(c) is transported (either as a gas or liquid) away from the facility where the natural gas was liquefied and not taken back to that facility.

Note A tonne of liquefied natural gas transported away from the facility does not include any liquefied natural gas that is transferred to the transportation vessel but boils off and returns to the facility.

Part 39 Production of magnetite concentrate

Division 1 Production of magnetite concentrate

713 Production of magnetite concentrate

The production of magnetite concentrate is the physical transformation of magnetite ore (ore containing Fe ₃O ₄that has a key property of ferrimagnetism) to produce saleable magnetite (Fe ₃O ₄) concentrate that:

(a) has a concentration of iron (Fe) equal to or greater than 60% of the concentrate on a dry weight basis; and

(b) has a particle size of less than 75 microns for at least 80% of the concentrate.

Note Ferrimagnetism is ions of iron (Fe ²⁺ and Fe ³⁺) spontaneously aligning in the sublattice of a crystalline solid to produce a net magnetic moment that is observed as permanent magnetisation of the solid at normal room temperature.

Division 2 Classification of activity

714 Classification of activity

The production of magnetite concentrate is a moderately emissions-intensive activity.

Division 3 Electricity baseline for calculating partial exemption

715 Electricity baseline for product

The electricity baseline for calculating the amount of a liable entity's partial exemption in respect of the production of magnetite concentrate is 0.0826 MWh per tonne of 100% equivalent iron (Fe) contained within magnetite (Fe ₃O ₄) concentrate that:

(a) has a concentration of iron (Fe) equal to or greater than 60% of the concentrate on a dry weight basis; and

(b) has a particle size of less than 75 microns for at least 80% of the concentrate; and

(d) is of saleable quality.

Note Saleable quality is defined in regulation 22C.

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