81 Entitlement to provisional allocation for eligible industrial activities

(1)

Subject to section 82, an eligible person is entitled to a provisional allocation of New Zealand units for an eligible industrial activity in respect of a year calculated in accordance with the following formula:

PA = LA × ∑(PDCT × AB)

where—

PA

is the person’s provisional allocation entitlement for the eligible industrial activity for the year

LA

is the level of assistance for the eligible industrial activity for the year, being,—

(a)

for a moderately emissions-intensive eligible industrial activity,—

(i)

0.6 in each year until and including 2020; and

(ii)

in each year after 2020, the level of assistance from the previous year less the applicable phase-out rate:

(b)

for a highly emissions-intensive eligible industrial activity,—

(i)

0.9 in each year until and including 2020; and

(ii)

in each year after 2020, the level of assistance from the previous year less the applicable phase-out rate

is the symbol for summation (of each PDCT × AB calculation)

PDCT

is the amount of each prescribed product from the eligible industrial activity produced by the person in the year immediately preceding the year to which the provisional allocation relates, as determined, if relevant, in accordance with regulations made under this Act

AB

is the prescribed allocative baseline for the applicable product that is required to be used by the eligible person by regulations made under this Act.

(2)

In this section, the applicable phase-out rate is,—

(a)

if regulations have not been made under section 84A or 84B that relate to the eligible industrial activity,—

(i)

0.01 for each year after 2020 until and including 2030; and

(ii)

0.02 for each year after 2030 until and including 2040; and

(iii)

0.03 for each year after 2040; and

(b)

if regulations have been made under section 84A or 84B that set a different phase-out rate for the eligible industrial activity for the year, the phase-out rate set under those regulations.

Section 81: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 81(1) formula item LA: replaced, on 23 June 2020, by section 83(1) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).

Section 81(2): inserted, on 23 June 2020, by section 83(2) of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).