1. What is a LUAC?

2. How is a LUAC different from an NGAC?

3. What gases are covered by the LUAC Rule?

4. What sites are eligible under the LUAC Rule?

5. What costs are involved in applying for accreditation?

6. What ongoing costs are involved once accredited?

7. When can I start counting the number of certificates I am eligible to make?

8. How much help can IPART give me in preparing my application?

1. What is a LUAC?

A LUAC (Large User Abatement Certificate) is a non-tradable abatement certificate created by a Large User’s eligible abatement activities that reduce on-site greenhouse gas emissions not directly related to the use of electricity.

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2. How is a LUAC different from an NGAC?

The most important difference between a LUAC and an NGAC (NSW Greenhouse Abatement Certificate) is that it is non-tradable. LUACs may only be surrendered by the Large User in their capacity as a benchmark participant to meet their own greenhouse gas benchmark. Each LUAC is equal to the reduction of one tonne of carbon dioxide equivalent by the Large User as a result of their Large User abatement activity.

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3. What gases are covered by the LUAC Rule?

The following greenhouse gases are covered by the LUAC Rule:

• Carbon Dioxide
• Methane
• Nitrous Oxide
• Perfluorocarbons
• Sulphur Hexafluoride.

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4. What sites are eligible under the LUAC Rule?

Only metered sites in New South Wales that are owned or occupied by a Large User (or related body corporate) for which it is responsible as a Benchmark Participant for electricity consumed at that site or sites.

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5. What costs are involved in applying for accreditation?

There are two main costs in applying for accreditation:

• A one off application fee of $500 per project
• Potentially an audit of the application. The need for an audit will be assessed by the Independent Pricing and Regulatory Tribunal (IPART) and you will be advised. The cost of the audit depends upon the scope of the audit and the complexity of the material being audited. Generally, a record keeping audit costs between $5,000 and $10,000. All audit costs are borne by the project proponents.

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6. What ongoing costs are involved once accredited?

The two areas of ongoing costs, once accredited, are:

• 15 cent registration fee per certificate, as defined in the legislation
• Periodic audits of the project after accreditation. As a general rule of thumb:
• Projects creating more than 100,000 certificates per annum need to be audited annually
• Projects creating between 50,000 and 100,000 certificates per annum may be audited every two years
• Projects creating between 5,000 and 50,000 certificates per annum may be audited every three years
• Projects creating less than 5,000 certificates per annum may be spot audited randomly at the discretion of IPART.

Please be aware that this may vary based on the specific characteristics of the project and any non-compliance issues arising.

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7. When can I start counting the number of certificates I am eligible to make?

Once you have submitted your application to the Scheme Administrator, any energy savings after that date are eligible to create certificates.

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8. How much help can IPART give me in preparing my application?

IPART is happy to meet with you and give you generic advice on applying the LUAC Rule to your project and the appropriate calculation method to choose. However, you are responsible for preparing the application and all calculations. IPART cannot review your calculations or documentation before you submit the application.

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