84 Closing allocation adjustment

(1)

An eligible person who has received a provisional allocation for an eligible industrial activity in respect of a year and who ceases during the year to carry out that activity must, within 20 working days of ceasing to carry out the activity,—

(a)

calculate the person’s final allocation entitlement for the activity for the year in accordance with the formula in section 83(2); and

(b)

using the formula in section 83(3), calculate the person’s closing allocation adjustment, and, for this purpose, section 83(3) applies, with any necessary modifications, as if the closing allocation adjustment were an annual allocation adjustment; and

(c)

if the closing allocation adjustment is—

(i)

a negative number, apply to the EPA under section 86 for an allocation of the number of units in the closing allocation adjustment:

(ii)

a positive number, notify the EPA of the person’s closing allocation adjustment and repay the number of units in the closing allocation adjustment by transferring the units to a Crown holding account designated by the EPA.

(2)

For the purposes of subsection (1), a person who has received a provisional allocation for an eligible industrial activity in respect of a year and who temporarily does not carry out the activity—

(a)

is not immediately to be treated as having ceased to carry out the activity; but

(b)

must, if the person does not carry out the activity for a period of 3 months in the year, notify the EPA as soon as practicable after the expiry of that 3-month period of that fact; and

(c)

must, if given notice by the EPA (following receipt of the person’s notice under paragraph (b)) that the EPA is satisfied that the person has ceased to carry out the activity for the year and that the person is required to comply with subsection (1), within 20 working days of the date of the EPA’s notice, comply with subsection (1).

(3)

Subject to subsection (4), an eligible person who has complied with subsection (1) during the year in which the person ceased to carry out the eligible industrial activity—

(a)

is not required to comply with section 83 in respect of that activity; and

(b)

may not calculate an annual allocation adjustment under section 83 in respect of that year.

(4)

A person who has applied for or notified a closing allocation adjustment in accordance with subsection (1) during a year, but who then recommences carrying out the activity in the year,—

(a)

may calculate an annual allocation adjustment for the year in accordance with the following formula:

AA = PA – FA – CAA

where—

AA

is the person’s annual allocation adjustment of units for the eligible industrial activity for the year

PA

is the person’s provisional allocation for the eligible industrial activity for the year notified by the EPA under section 86B

FA

is the person’s final allocation entitlement for the eligible industrial activity for the year (which must be calculated in accordance with section 83(2))

CAA

is the amount of the person’s closing allocation adjustment for the eligible industrial activity; and

(b)

is entitled to be allocated the number of units in the person’s annual allocation adjustment (as calculated under paragraph (a)) in accordance with section 83(5).

(5)

Section 83(7) applies to the repayment of units under this section as if the units were required to be repaid under section 83.

Section 84: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 84(1)(c)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 84(1)(c)(ii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 84(2)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 84(2)(c): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 84(4)(a) formula item PA: amended, on 1 January 2013, by section 33 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).