In accordance with the recently promulgated Greenhouse Gas Reduction and Management Act, which lists methane as a controlled greenhouse gas, the EPA announced on 25 December 2015 the Regulations Governing Incentives for General Waste Landfills to Reduce Greenhouse Gas Emissions. The regulations were promulgated on 1 January 2016.
Landfill gas is produced by organic matter within the waste. The gas is composed of around 50% methane (CH4), along with carbon dioxide (CO2) and trace amounts of organic compounds. Methane and carbon dioxide are both on the list of controlled substances according to the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol. Of note, the global warming potential of methane is 25 times higher than that of CO2. To reduce methane emissions from landfills, encourage recycling and reusing, and promote the development of renewable and other energy technology, the EPA has been providing incentives for methane power generation since 1999. In accordance with the recently promulgated Greenhouse Gas Reduction and Management Act, which has already listed methane as a controlled greenhouse gas, the EPA formulated the Regulations Governing Encouragements for Landfills to Reduce Greenhouse Gas Emissions. The regulations entered into effect on 1 January 2016.
The EPA stresses that the new regulations focus on well-performing industries which have a contract with the owner or the manager of a landfill, to allow the said industries to install electricity-generation equipment in the landfills and utilize the methane produced from the landfill. The regulations include eight articles covering: legal basis, requirements to receive rewards, required documents and application time, application review procedures, amounts of rewards, reward calculation methods and annual limit, and punishment for false reports. The incentives will not be given to enterprises that have received any kind of incentives or subsidies from renewable energy development or other relevant regulations. Well-performing industries are those that effectively reduce methane emissions from landfills.
The amount of reward payment is calculated as: amount of reward payment (NTD) = actual amount of electricity sold (kilowatt-hours) × 0.5 (NTD/kilowatt-hours). The maximum amount of the reward will be NTD 20 million and should not be higher than the operation cost.
Landfill gas industries that are qualified to receive reward payments have to submit applications to the central competent authority, including an application form, proof of electricity sales in the previous season, statement of electricity generated, as well as financial and operational cost analysis reports on methane-powered electricity generation equipment, audited and signed by an accountant before the end of January, April, July and October of each year.
- Environmental Protection Administration, R.O.C.(Taiwan)