Reprint as at 1 March 2016

Coat of Arms of New Zealand

Climate Change Response Act 2002

Public Act
 
2002 No 40
Date of assent
 
18 November 2002
Commencement
 
see section 2
Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry for the Environment.

Contents

1Title
2Commencement
2AApplication of Schedules 3 and 4
2BOrders in Council in relation to Part 5 of Schedule 3
2CEffect of Orders in Council in relation to Part 5 of Schedule 3
3Purpose
3ATreaty of Waitangi (Te Tiriti o Waitangi)
4Interpretation
5Act binds the Crown
6Minister of Finance may direct Registrar regarding establishment of Crown holding accounts and carry out trading activities with respect to units
6AMinister’s power to sell by auction
7Minister of Finance may give directions to Registrar regarding accounts and units
8Registrar must give effect to directions of Minister of Finance
8AMinister of Finance must publish directions
9Minister of Finance may obtain information from inventory agency and Registrar
9AFunctions of chief executive
9BDelegation by chief executive
10Purpose of Registry
11EPA to appoint Registrar
12Registrar responsible for Registry
13Registrar may refuse access to, or suspend operation of, Registry
14Registrar must give effect to directions
15Registrar to allocate unique numbers
16Carry-over of certain Kyoto units
17Commitment period reserve
17APower of Registrar to delegate
18Form and content of unit register
18AOpening holding accounts
18BClosing holding accounts
18CTransfer of units
18CAEffect of surrender, retirement, cancellation, and conversion
18CBRestriction on surrender of assigned amount units
18CCRestriction on surrender of assigned amount units issued during first commitment period
18CDEffect of surrendering restricted assigned amount units
18DSuccession
18ETrusts, representatives, and assignees of bankrupts
19Retirement of Kyoto units by the Crown
20Transactions must be registered
21Registration procedure for Kyoto units
21AARegistration procedure for New Zealand units and approved overseas units
21AElectronic registration
21BDefective applications
22Transactions take effect when registered
23Receiving Kyoto units from overseas registries
23AReceiving New Zealand units and approved overseas units from overseas registries
24Priority of registration
25Correction of unit register
26Unit register must be open for search
27Information accessible by search
28Search of unit register
29Printed search result receivable as evidence
30Recovery of fees
30AThe Crown or Registrar not liable in relation to searches in certain cases
30BExpiry of long-term certified emission reduction units
30CReplacement of certain long-term certified emission reduction units
30DExpiry of temporary certified emission reduction units
30EConversion of New Zealand units into designated assigned amount units for sale overseas or cancellation
30FRestrictions on certain New Zealand units allocated to landowners of pre-1990 forest land
30GRegulations relating to Part 2
30GAFurther provisions governing regulations made under section 30G(1)(p)
30GBFurther provisions governing regulations made under section 30G(1)(q)
30HProcedure for certain regulations relating to units
30IIncorporation by reference in regulations made under section 30G
30JSigning false declaration with respect to regulations made under section 30G
30KProviding false or misleading information to Registrar
31Meaning of greenhouse gas
32Primary functions of inventory agency
33Inventory agency under direction of Minister
34Record keeping
35Publication
36Authorisation of inspectors
37Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases
38Limitation on power of entry under section 37
39Power of entry for inspection
40Applications for warrants
41Entry of defence areas
42Proof of authority must be produced
43Notice of entry
44Information obtained under section 39 or section 40 only admissible in proceedings for alleged breach of regulations made under section 50(2)
45Return of items seized
45AProtection of persons acting under authority of this Part
46Failing to provide required information to inventory agency
47Obstructing, hindering, resisting, or deceiving person exercising power under Part
48Signing false declaration in respect of regulations made under section 50
48AProviding false or misleading information to Registrar [Repealed]
49Reporting
50Regulations
51Incorporation by reference in regulations made under section 50
52Inventory agency must report to Minister on certain matters before certain regulations are made
53Consequential amendments
54Participants
55Associated persons
56Registration as participant in respect of activities listed in Schedule 3
57Applicant to be registered as participant in respect of activities listed in Schedule 4
58Removal from register of participants in respect of activities listed in Schedule 4
59Removal from register of participants in respect of activities listed in Schedules 3 and 4
60Exemptions in respect of activities listed in Schedule 3
61Requirement to have holding account
62Monitoring of emissions and removals
63Liability to surrender units to cover emissions
63AModification of liability to surrender units to cover certain emissions
64Entitlement to receive New Zealand units for removal activities
64AModification of entitlement to receive New Zealand units for removal activities
65Annual emissions returns
66Quarterly returns for other removal activities
67Retention of emissions records
68Issuing New Zealand units
69Notification of intention regarding New Zealand units
70Governor-General may issue allocation plans
71Correction of allocation plans
72Allocation in respect of pre-1990 forest land
73Minister to appoint person to hold certain New Zealand units
74Allocation to owners of fishing quota
75Consultation on pre-1990 forest land allocation plan
76Consultation on fishing allocation plan
77Determinations made in accordance with allocation plan
78Power to revoke and replace determinations
79Effect of new determination
80Criteria for allocation of New Zealand units to industry
81Entitlement to provisional allocation for eligible industrial activities
82Entitlement to allocation for eligible industrial activities where provisional allocation not received
83Annual allocation adjustment
84Closing allocation adjustment
84ATemporary suspension of allocation entitlement for eligible industrial activities
85Allocation of New Zealand units in relation to agriculture
85ATemporary suspension of phase-out rates for assistance under sections 81, 83(2), and 85(2)
85BTemporary suspension of allocation entitlement for eligible agricultural activities
86Applications for allocation of New Zealand units for industry and agriculture
86AProvisional allocation to industry in and after 2013
86BDecisions on applications for allocations of New Zealand units to industry and agriculture
86CReconsideration of allocation decisions
86DRetention of records and materials in relation to allocation
86EMinister or EPA or chief executive may require further information for purpose of carrying out functions under subpart
86FBalance of units at end of true-up period or other balance date [Repealed]
87Functions of EPA
87ADelegation by EPA
88Directions to EPA
89EPA to publish certain information
90EPA may prescribe form of certain documents
91Approval of unique emissions factors
92Recognition of verifiers
93Appointment of enforcement officers
94Power to require information
95Power to inquire
96Inquiry before District Court Judge
97No criminal proceedings for statements under section 95 or 96
98Expenses in relation to inquiries
99Obligation to maintain confidentiality
100Power of entry for investigation
101Applications for warrants
102Proof of authority must be produced
103Notice of entry
104Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under this Part and Part 5
105Return of items seized
106Protection of persons acting under authority of this Part
107Applications for emissions rulings
108Matters in relation to which EPA may decline to make emissions rulings
109Making of emissions rulings
110Notice of emissions rulings
111Confirmation of basis of emissions rulings
112Notifying EPA of changes relevant to or failure to comply with emissions rulings
113Correction of emissions rulings
114Cessation of emissions rulings
115Appeal from decisions of EPA
116Effect of emissions rulings
117EPA may publish certain aspects of emissions rulings
118Submission of final emissions returns
119Power to extend date for emissions returns
120Amendment to emissions returns by EPA
121Assessment if default made in submitting emissions return
122Amendment or assessment presumed to be correct
123Effect of amendment or assessment
124Reimbursement of units by EPA
125Repayment of units by persons in case of error
126Obligation to surrender or repay units not suspended by review or appeal
127Time bar for amendment of emissions returns
128Amendments and assessments made by electronic means
129Offences in relation to failure to comply with various provisions
130Offence for breach of section 99
131Offence for failure to provide information or documents
132Other offences
133Evasion or similar offences
134Penalty for failing to surrender or repay units
134APenalty for failing to surrender or repay units when required by notice given under section 134(3)
135Reductions in penalty
136Additional penalty for knowing failure to comply
137Interest for late payment
138Obligation to pay penalty not suspended by appeal
138APenalties to be paid into Crown account
139Liability of body corporate
140Liability of directors and managers of companies
141Liability of companies and persons for actions of director, agent, or employee
142Limitation period for commencement of proceedings
143Evidence in proceedings
144Request for review of decisions
145Right of appeal to District Court
146Appeals to High Court on questions of law only
147Giving of notices by EPA
148Giving of notices to EPA
149Sharing information
150Formation of consolidated group
151Changes to consolidated groups
151AAddition of activities to consolidated groups
152Nominated entities
153Effect of being member of consolidated group
154Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4
155Ceasing to be member of consolidated group
156Effect of ceasing to be member of consolidated group
156ARemoval of activities from consolidated groups
157Unincorporated bodies
157AChanges to unincorporated bodies that are participants
158Compensation for participants where public works result in liability to surrender units
159Recovery of costs
160Review of operation of emissions trading scheme
161Appointment and conduct of review panel
161ARegulations in relation to eligible industrial activities
161BAustralian eligible industrial activities
161COther eligible industrial activities
161DPower to require information for purposes of allocation to industry
161ERequirements in respect of notice given under section 161D
161FConsultation on activities that may be prescribed as eligible industrial activities
161GRegulations in relation to eligible agricultural activities
161HPower to request information showing output from eligible agricultural activities
162Regulations adding further activity to Part 2 of Schedule 4
162AOrders are confirmable instruments
163Regulations relating to methodologies and verifiers
164Regulations relating to unique emissions factors
165Regulations relating to offsetting of pre-1990 forest land [Repealed]
166Procedure for regulations relating to methodologies, verification, unique emissions factors, and offsetting
167Regulations relating to fees and charges
168Other regulations
169Incorporation by reference in regulations made under section 163, 164, 167, or 168
170Effect of amendments to, or replacement of, material incorporated by reference in regulations
171Proof of material incorporated by reference
172Effect of expiry of material incorporated by reference
173Requirement to consult
174Public access to material incorporated by reference
175Application of Legislation Act 2012 to material incorporated by reference
176Application of Regulations (Disallowance) Act 1989 to material incorporated by reference [Repealed]
177Application of Standards and Accreditation Act 2015 not affected
178Recovery of fees or charges
178AOption to pay money instead of surrendering units to cover emissions
178BIssuing New Zealand units to meet surrender obligations
178CProhibition on ability to export New Zealand units
179Forest land to be treated as deforested in certain cases
179AForest land may not be treated as deforested in certain cases
180Participant in respect of pre-1990 forest land
181When deforestation to be treated as occurring in respect of pre-1990 forest land
182Offsetting in relation to pre-1990 forest land [Repealed]
183Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land
183ACertain applications not otherwise permitted by section 183
184Exemptions for deforestation of land with tree weeds
185Effect of exemption
186Methodology for pre-1990 forest land cleared in 8 years or less
186APersons who own pre-1990 forest land may submit offsetting forest land applications to EPA
186BCriteria for approving offsetting forest land applications
186CConditions applicable to offsetting forest land
186DRequirements relating to offsetting forest land
186EDeforesting pre-1990 offsetting forest land before usual rotation period of forest species on pre-1990 forest land
186FRegulations relating to offsetting
186GEPA may revoke approval in certain circumstances
186HTreatment of allocations in respect of pre-1990 forest land that is offset
186IParticipant in respect of pre-1990 offsetting forest land
186JMethodology for pre-1990 offsetting forest land cleared after usual rotation period is completed
187Conditions on registration as participant in respect of certain activities relating to post-1989 forest land
187AEPA to give public notice of criteria for assessing risk of tree weed spread
188Registration as participant in respect of post-1989 forest land
188APerson ceases to be participant in respect of post-1989 forest land if natural event permanently prevents re-establishing forest on that land
189Emissions returns for post-1989 forest land activities
190Special rules regarding surrender of units in relation to post-1989 forest land
191Ceasing to be registered as participant in respect of post-1989 forest land
192Effect of transmission of interest in post-1989 forest land
193Emissions returns in relation to transmitted interests
194Information about status of forest land
195Notification of status of forest land
196First emissions return for pre-1990 forest land activities
196APower to withdraw or suspend certain draft allocation plans [Repealed]
197First emissions return for post-1989 forest land activities
198Registration as participant by purchasers of obligation fuel
199Historical information sufficient to satisfy EPA
200Effect of purchasing less than threshold level of obligation fuel
201Effect of registration by purchasers of obligation fuel
202Activities added to Part 2 of Schedule 3
202AOrders are confirmable instruments
203Treatment of obligation fuels
204Participant with respect to mining coal or natural gas
205Mining natural gas in exclusive economic zone and continental shelf
206Obligation with respect to combusting used oil, waste oil, and waste
207Obligation with respect to mining coal
208Purchase of coal or natural gas from certain related companies of Part 3 of Schedule 3 participant
209Registration as participant by purchasers of coal or natural gas
210Historical information sufficient to satisfy EPA
211Effect of purchasing less than threshold level of coal or natural gas
212Effect of registration by purchasers of coal or natural gas
213Participant in respect of subpart 4 of Part 5 of Schedule 3
214Units not required to be surrendered for fertilisers embedded in products
215Effect of purchasing or farming less than threshold level [Repealed]
216Effect of registration by farmers [Repealed]
217Transitional provision for penalties
218Transitional provision for voluntary reporting
219Transitional provision for mandatory reporting by certain participants
220Transitional provision relating to unit entitlements for subpart 1 or 3 of Part 2 of Schedule 4 participants
221Additional transitional provisions for Part 3 of Schedule 4 participants
222Transitional provisions regarding regulations that replace existing unit register regulations
222ATransitional provision for liability to surrender units to cover emissions from activities relating to liquid fossil fuels, stationary energy, and industrial processes [Repealed]
222BTransitional provision for entitlement to receive New Zealand units for removal activities [Repealed]
222CTransitional provision permitting payment of money instead of surrender of units to cover emissions [Repealed]
222DIssuing New Zealand units to meet surrender obligation [Repealed]
222ETransitional provisions relating to reporting [Repealed]
222FTransitional provision for allocation to industry [Repealed]
222GTransitional provision regarding prohibition on ability to export New Zealand units [Repealed]
222HTransitional provision for unincorporated bodies
223Establishment of Household Fund [Repealed]
224Gazetting of targets
225Regulations relating to targets
226Overview of functions and responsibilities of EPA and agencies under this Part, Customs and Excise Act 1996, and Land Transport Act 1998
227Synthetic greenhouse gas levy imposed
228Person who registers leviable motor vehicle responsible for paying levy
229Importer of leviable goods must pay levy
230Levies are debt due to the Crown
231Penalties for failure to pay levy
232Application of provisions of Customs and Excise Act 1996
233Rate of synthetic greenhouse gas levy
234Transitional provision for synthetic greenhouse gas levy
235Temporary suspension of levy set by section 233
236Maximum price of carbon for purpose of levy calculation
237Levy rate exclusive of GST
238Levy rate for period from 1 July 2013 to 31 December 2013
239Levy rate to apply for single calendar year on and after 1 January 2014
240Agencies to pay levy into Crown Bank Account
241Agencies to provide information to EPA quarterly
242Agencies and EPA to share information
243Circumstances where levy may be refunded
244Exemptions from payment of synthetic greenhouse gas levy
245Regulations specifying levy rates
246Regulations relating to synthetic greenhouse gas levy
247Process for making orders and regulations
248Collecting information and keeping records
249Application of section 88 (Directions to EPA)
250EPA to publish information relating to levies
251Recognition of verifiers
252Enforcement officers
253Power to require information
254Power to inquire
255Inquiry before District Court Judge
256Obligation to maintain confidentiality
257Power of entry for investigation, warrants, etc
258Regulations relating to verifiers
259Offence in relation to failure to collect data and keep records
260Failure to provide information or documents
261Other offences
262Offence for breach of confidentiality
263Evasion
264Offence in relation to release of synthetic greenhouse gases
265Defence for release of synthetic greenhouse gas
266Limitation period for commencement of proceedings
267Evidence in proceedings
268Liability of body corporate, directors, managers of companies, companies, and persons for actions of directors, agents, and employees
269Review of operation and effectiveness of levy
270Appointment and conduct of independent panel
Reprint notes
 
1 Title

This Act is the Climate Change Response Act 2002.

Part 1 Preliminary provisions

2 Commencement

This Act comes into force on a date to be appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.

Section 2: section 1, Part 1, subpart 3 of Part 2, and Part 3 (other than section 50(1)(a) and (c)–(h) and section 51) brought into force, on 1 August 2003, by the Climate Change Response Act Commencement Order 2003 (SR 2003/151).

Section 2: subparts 1 and 2 of Part 2 and sections 50(1)(a) and (c)–(h) and 51 brought into force, on 19 November 2007, by the Climate Change Response Act Commencement Order 2007 (SR 2007/336).

2A Application of Schedules 3 and 4

(1)

Any provision in this Act that imposes an obligation on, or provides an entitlement to, a person in respect of an activity listed in Schedule 3 or 4

(a)

does not apply to that person unless—

(i)

the Part or subpart in Schedule 3 or 4 in which the activity is listed applies; and

(ii)

the person, if carrying out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3, falls within a class of persons prescribed in an Order in Council that applies that subpart; and

(b)

applies subject to sections 2C(3), 217 to 221, and 63A, 64A, 178A, and 178B.

(2)

Part 1 of Schedule 3 and Part 1 of Schedule 4 apply on and after 1 January 2008.

(2A)

Part 3 of Schedule 4 applies on and after 1 July 2013.

(3)

Subpart 1 of Part 2 of Schedule 3 and Part 4 of Schedule 4 apply on and after 1 January 2009.

(4)

Part 3 of Schedule 3, subpart 1 of Part 4 of Schedule 3, and subpart 1 of Part 2 of Schedule 4 apply on and after 1 January 2010.

(5)

Subpart 1 of Part 5 of Schedule 3 applies on and after 1 January 2011.

(6)

Subpart 3 of Part 5 of Schedule 3 applies on and after 1 January 2011.

(7)

Subpart 2 of Part 4 of Schedule 3, Part 6 of Schedule 3, and subpart 3 of Part 2 of Schedule 4 apply on and after 1 January 2011.

(7A)

Part 1A of Schedule 3 applies on and after 1 January 2013.

(7B)

Subpart 2 of Part 3 of Schedule 3 applies on and after 1 January 2014.

(8)

Subpart 2 of Part 5 of Schedule 3 applies on and after a date appointed by the Governor-General by Order in Council.

(9)

Subpart 4 of Part 5 of Schedule 3 applies on and after a date appointed by the Governor-General by Order in Council.

(10)

[Repealed]

(11)

[Repealed]

(12)

[Repealed]

(13)

[Repealed]

(14)

Subpart 2 of Part 2 of Schedule 4 applies on and after a date to be appointed by the Governor-General by Order in Council.

(15)

[Repealed]

(16)

[Repealed]

(17)

[Repealed]

(18)

[Repealed]

(19)

[Repealed]

Section 2A: inserted, on 26 September 2008, by section 4 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 2A(1): substituted, on 8 December 2009, by section 4(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(1)(b): amended, on 1 January 2013, by section 4(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(2): amended, on 1 July 2013, by section 4(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(2A): inserted, on 1 July 2013, by section 4(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(3): amended, on 1 January 2013, by section 4(4) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(5): amended, on 8 December 2009, by section 4(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(6): amended, on 8 December 2009, by section 4(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(7A): inserted, on 1 January 2013, by section 4(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(7B): inserted, on 1 January 2013, by section 4(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 2A(8): amended, on 8 December 2009, by section 4(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(9): amended, on 8 December 2009, by section 4(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(10): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(11): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(12): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(13): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(15): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(16): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(17): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(18): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2A(19): repealed, on 8 December 2009, by section 4(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

2B Orders in Council in relation to Part 5 of Schedule 3

(1)

An Order in Council made under section 2A(8) or (9) appointing a date on and after which subpart 2 or 4 of Part 5 of Schedule 3 applies must—

(a)

be made on the recommendation of the Minister responsible for the administration of this Act; and

(b)

appoint a date that is 1 January in a year; and

(c)

be made at least 1 year before the date appointed in the Order in Council; and

(d)

not appoint a date earlier than 1 January 2013.

(2)

One or more Orders in Council made under section 2A(8) or (9) may provide that subpart 2 or 4 of Part 5 of Schedule 3 applies—

(a)

specifically to 1 or more classes of persons who carry out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 on and after a date appointed in the order; or

(b)

generally to all persons who carry out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 on and after a date appointed in the order.

(3)

Before recommending that an Order in Council be made under section 2A(8) or (9), the Minister must have regard to—

(a)

the need for the EPA to be able to verify information contained in emissions returns of the persons who will become participants in respect of an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 by operation of the order; and

(b)

the likelihood that, as a result of becoming participants by operation of the order, persons carrying out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 will reduce their emissions; and

(c)

the desirability of minimising—

(i)

the compliance and administration costs of persons who will become participants in respect of an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 by operation of the order; and

(ii)

the administration costs of the Crown in administering the greenhouse gas emissions trading scheme established under this Act.

(4)

Before recommending the making of an Order in Council under section 2A(8) or (9), the Minister must consult, or be satisfied that the chief executive has consulted, persons (or their representatives) that appear to the Minister or the chief executive likely to have an interest in the order.

Section 2B: inserted, on 8 December 2009, by section 5 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 2B(3)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

2C Effect of Orders in Council in relation to Part 5 of Schedule 3

(1)

This section applies if an Order in Council made under section 2A(8) or (9) has the effect that subparts 1 and 2 of Part 5 of Schedule 3, or subparts 3 and 4 of Part 5 of Schedule 3, apply at the same time.

(2)

If this section applies, then regulations made under section 163(1) may require—

(a)

a person carrying out an activity listed in subpart 1 of Part 5 of Schedule 3 and a person carrying out an activity listed in subpart 2 of Part 5 of Schedule 3 to—

(i)

collect data or other information relating to the same synthetic fertiliser; and

(ii)

calculate emissions in respect of emissions relating to the same synthetic fertiliser; or

(b)

a person carrying out an activity listed in subpart 3 of Part 5 of Schedule 3 and a person carrying out an activity listed in subpart 4 of Part 5 of Schedule 3 to—

(i)

collect data or other information relating to the same ruminant animals, pigs, horses, or poultry; and

(ii)

calculate emissions relating to the same ruminant animals, pigs, horses, or poultry.

(3)

However,—

(a)

on and after the date from which the person carrying out an activity listed in subpart 2 of Part 5 of Schedule 3 is required to surrender units for emissions relating to the fertiliser, this Act no longer applies to the person carrying out the activity listed in subpart 1 of Part 5 of Schedule 3 in relation to the fertiliser; and

(b)

on and after the date from which the person carrying out an activity listed in subpart 4 of Part 5 of Schedule 3 is required to surrender units for emissions relating to the ruminant animals, pigs, horses, or poultry, this Act no longer applies to the person carrying out the activity listed in subpart 3 of Part 5 of Schedule 3 in relation to those ruminant animals, pigs, horses, or poultry.

(4)

If an Order in Council is made under—

(a)

section 2A(8) that has the effect of applying subpart 2 of Part 5 of Schedule 3 to all persons who carry out an activity listed in that subpart from a date appointed in that order, then section 2A(5) and subpart 1 of Part 5 of Schedule 3 expire and are repealed on the date from which all persons carrying out an activity listed in subpart 2 of Part 5 of Schedule 3 are liable to surrender units in respect of emissions from the activity:

(b)

section 2A(9) that has the effect of applying subpart 4 of Part 5 of Schedule 3 to all persons who carry out an activity listed in that subpart from a date appointed in that order, then section 2A(6) and subpart 3 of Part 5 of Schedule 3 expire and are repealed on the date from which all persons carrying out an activity listed in subpart 4 of Part 5 of Schedule 3 are liable to surrender units in respect of emissions from the activity.

(5)

If, by operation of subsection (3)(a) or (b) or (4)(a) or (b), this Act no longer applies to a person carrying out an activity in subpart 1 or 3 of Part 5 of Schedule 3, or an activity listed in subpart 1 or 3 of Part 5 of Schedule 3 is repealed, then—

(a)

section 54(4) applies, with any necessary modifications, to any person who has ceased, by operation of the provision, to be a participant in respect of that activity; and

(b)

the person is not required to comply with section 59, but the EPA may, for the purposes of section 59(2), determine that the person has ceased to carry out the activity.

Section 2C: inserted, on 8 December 2009, by section 5 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

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

3 Purpose

(1)

The purpose of this Act is to—

(a)

enable New Zealand to meet its international obligations under the Convention and the Protocol, including (but not limited to)—

(i)

its obligation under Article 3.1 of the Protocol to retire Kyoto units equal to the number of tonnes of carbon dioxide equivalent of human-induced greenhouse gases emitted from the sources listed in Annex A of the Protocol in New Zealand in the first commitment period; and

(ii)

its obligation to report to the Conference of the Parties via the Secretariat under Article 7 of the Protocol and Article 12 of the Convention:

(b)

provide for the implementation, operation, and administration of a greenhouse gas emissions trading scheme in New Zealand that supports and encourages global efforts to reduce the emission of greenhouse gases by—

(i)

assisting New Zealand to meet its international obligations under the Convention and the Protocol; and

(ii)

reducing New Zealand’s net emissions of those gases to below business-as-usual levels; and

(c)

provide for the imposition, operation, and administration of a levy on specified synthetic greenhouse gases contained in motor vehicles and also another levy on other goods to support and encourage global efforts to reduce the emission of those gases by—

(i)

assisting New Zealand to meet its international obligations under the Convention and the Protocol; and

(ii)

reducing New Zealand’s net emissions of those gases to below business-as-usual levels.

(2)

[Repealed]

(2)

A person who exercises a power or discretion, or carries out a duty, under this Act must exercise that power or discretion, or carry out that duty, in a manner that is consistent with the purpose of this Act.

(3)

For the purposes of this section, business-as-usual levels means the levels of New Zealand’s greenhouse gas emissions, estimated by the Minister or the EPA at any particular point in time, as if the greenhouse gas emissions trading scheme provided for under this Act had not been implemented.

Section 3(1): substituted, on 26 September 2008, by section 5 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 3(1)(b): replaced, on 1 January 2013, by section 5 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 3(1)(c): inserted, on 1 January 2013, by section 5 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 3 first subsection (2): repealed, on 8 December 2009, by section 6(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 3(3): added, on 8 December 2009, by section 6(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 3(3): amended, on 5 December 2011, pursuant to section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

3A Treaty of Waitangi (Te Tiriti o Waitangi)

In order to recognise and respect the Crown’s responsibility to give effect to the principles of the Treaty of Waitangi,—

(a)

with respect to section 2B (which relates to Orders in Council in relation to Part 5 of Schedule 3), before recommending the making of an Order in Council under section 2A(8) or (9), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the order:

(b)

with respect to section 75 (which relates to consultation on a pre-1990 forest land allocation plan), before making a recommendation under section 72, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the pre-1990 forest land allocation plan:

(c)

with respect to section 76 (which relates to consultation on a fishing allocation plan), before making a recommendation under section 74, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the fishing allocation plan:

(d)

with respect to section 161 (which relates to the appointment and conduct of a review panel),—

(i)

if the Minister initiates a review under section 160(1) or 269(1) and appoints an independent panel under section 160(3) or 269(3), the Minister must ensure that the review panel has at least 1 member who, in the Minister’s opinion, has the appropriate knowledge, skill, and experience relating to the principles of the Treaty of Waitangi and tikanga Māori to conduct the review; and

(ii)

the review panel must consult with the representatives of iwi and Māori that appear to the panel likely to have an interest in the review; and

(iii)

the terms of reference for the review panel must incorporate reference to the principles of the Treaty of Waitangi:

(e)

with respect to section 161G (which relates to regulation-making powers in relation to eligible agricultural activities), before recommending the making of a regulation under section 161G(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:

(f)

with respect to section 162 (which relates to regulations adding further activity to Part 2 of Schedule 4), before recommending the making of a regulation under section 162(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:

(g)

with respect to section 163 (which relates to regulations relating to methodologies and verifiers), before recommending the making of a regulation under section 163(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:

(h)

with respect to section 164 (which relates to regulations relating to unique emissions factors), before recommending the making of a regulation under section 164, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:

(i)

with respect to section 224 (which relates to the gazetting of targets), before the Minister may set, amend, or revoke a target, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the target:

(j)

with respect to section 225 (which relates to regulations relating to targets), before recommending the making of a regulation under section 225(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation.

Section 3A: inserted, on 8 December 2009, by section 7 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 3A(d)(i): amended, on 1 January 2013, by section 6 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 3A(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

4 Interpretation

(1)

In this Act, unless the context otherwise requires,—

account number means a unique account number assigned to a holding account by the Registrar under section 15(1)(a)

agency means,—

(a)

in relation to the motor vehicle levy, the Registrar of Motor Vehicles; and

(b)

in relation to the goods levy, the chief executive of the New Zealand Customs Service

allocate, in relation to New Zealand units,—

(a)

means the allocation or provisional allocation of New Zealand units; but

(b)

does not include the transfer of New Zealand units

allocation plan means an allocation plan issued under section 70

animal material has the same meaning as in section 4(1) of the Animal Products Act 1999

animal product has the same meaning as in section 4(1) of the Animal Products Act 1999

animal welfare export certificate means an animal welfare export certificate issued under section 46 of the Animal Welfare Act 1999

annual financial statements of the Government has the meaning given in section 2(1) of the Public Finance Act 1989

approved overseas unit means a unit, other than a Kyoto unit,—

(a)

issued by an overseas registry; and

(b)

prescribed as a unit that may be transferred to accounts in the Registry

assigned amount unit means a unit issued out of a Party’s initial assigned amount and designated as an assigned amount unit by—

(a)

the Registry; or

(b)

an overseas registry of a Party listed in Annex B of the Protocol

associated person has the meaning given to it by subsection (3)

Australian eligible industrial activity means an activity that is, or is likely to be, specified as an emissions-intensive trade-exposed activity in respect of which a person may be allocated emissions units under Australian law

cancel, in relation to a unit, means the transfer of the unit to a cancellation account in the Registry with the effect specified in section 18CA(1)

carbon accounting area means an area of post-1989 forest land that—

(a)

is defined by a person who is registered or has applied to register as a participant under section 57 in relation to an activity listed in Part 1 of Schedule 4; and

(b)

meets any relevant criteria specified in regulations made under this Act; or

(c)

is constituted as a carbon accounting area by operation of section 188(7)(b) or 192(3)(b)

carbon dioxide equivalent, in relation to a gas in Annex A of the Protocol, means the amount, in tonnes, of carbon dioxide that would produce the same global warming as the amount of that gas, calculated by multiplying the tonnes of that gas by its global warming potential (as determined under Article 5.3 of the Protocol, as if the commitment period were binding on New Zealand)

carbon equivalence, in relation to land that is the subject of an offsetting forest land application under section 186A, means that the offsetting forest land achieves, within the usual rotation period for forest species on the pre-1990 forest land, the same carbon stock as was contained in the pre-1990 forest land at the time of the clearing as determined in accordance with regulations made under section 186F

carry-over means the transfer of an assigned amount unit, certified emission reduction unit, or emission reduction unit from the relevant commitment period to a subsequent commitment period so that the unit remains capable of being transferred, retired, cancelled, or carried-over in that subsequent commitment period

CDM registry means the registry established and maintained as the clean development mechanism registry under Article 12 of the Protocol

certified emission reduction unit means a unit derived from a clean development mechanism project, issued by the CDM registry, and designated as a certified emission reduction unit by the CDM registry

chief executive means the chief executive of the department that is, with the authority of the Prime Minister, responsible for the administration of this Act

clean development mechanism project means a project undertaken under Article 12 of the Protocol for the benefit of a Party not listed in Annex I of the Convention

clear, in relation to a tree,—

(a)

includes—

(i)

felling, harvesting, burning, removing by mechanical means, spraying with a herbicide intended to kill the tree, or undertaking any other form of human activity that kills the tree; and

(ii)

felling, burning, killing, uprooting, or destroying by a natural cause or event; but

(b)

does not include pruning or thinning

coal has the same meaning as in section 2(1) of the Crown Minerals Act 1991

commitment period reserve means a number of Kyoto units equal to the lesser of—

(a)

90% of the assigned amount units issued out of New Zealand’s initial assigned amount; or

(b)

5 times the number of tonnes of carbon dioxide equivalent of human-induced greenhouse gases emitted from the sources listed in Annex A of the Protocol in the most recent year, as estimated by the most recent inventory of greenhouse gases that has been reported in accordance with Article 7 of the Protocol and reviewed in accordance with Article 8 of the Protocol

Conference of the Parties means the Conference of the Parties to the Convention

consolidated group means a consolidated group formed under section 150

Convention

(a)

means the United Nations Framework Convention on Climate Change done at New York on 9 May 1992, a copy of the English text of which is set out in Schedule 1; and

(b)

includes any amendments made to the Convention that are, or will become, binding on New Zealand from time to time

conversion account means an account in the Registry used for the purpose of converting New Zealand units into assigned amount units

convert, in relation to a New Zealand unit, means the transfer of the unit to a conversion account in the Registry with the effect specified in section 18CA(5)

Crown conservation contract means a written agreement with the Crown (including a concession granted in accordance with Part 3B of the Conservation Act 1987) for the removal and storage of greenhouse gases on post-1989 forest land that is Crown land managed or administered under the Conservation Act 1987 or any of the Acts listed in Schedule 1 of that Act

Crown holding account

(a)

means a holding account that is established and held by the Crown in accordance with a direction of the Minister of Finance under section 6; and

(b)

does not include a holding account opened by any other person on behalf of the Crown under section 18A

Crown land has the same meaning as in section 2(1) of the Crown Minerals Act 1991

dairy processing, in relation to milk or colostrum, means the first occasion, other than at a farm dairy, on which the milk or colostrum is made subject to heat treatment, freezing, separation, concentration, filtering, blending, extraction of milk components, and the addition of other material, including (but not limited to) food, ingredients, additives, or processing aids as defined in the Food Standards Code

deforest, in relation to forest land,—

(a)

means to convert forest land to land that is not forest land; and

(b)

includes clearing forest land, where section 179 applies

designated operational entity means an operational entity designated under Article 12(5) of the Protocol

disposal facility means any facility, including a landfill,—

(a)

at which waste is disposed; and

(b)

at which the waste disposed includes waste from a household that is not entirely from construction, renovation, or demolition of a house; and

(c)

that operates, at least in part, as a business to dispose of waste; but

(d)

does not include a facility, or any part of a facility, at which waste is combusted for the purpose of generating electricity or industrial heat

dispose, in relation to waste,—

(a)

means—

(i)

the final or more than short-term deposit of waste into or onto land set apart for that purpose; or

(ii)

the incineration of waste by deliberately burning the waste to destroy it; but

(b)

does not include any deposit of biosolids for rehabilitation or other beneficial purposes

document means a document in any form whether or not signed or initialled or otherwise authenticated by its maker; and includes—

(a)

any writing on any material:

(b)

any information recorded or stored by means of any tape recorder, computer, or any other device; and any material subsequently derived from information so recorded or stored:

(c)

any label, marking, or other writing that identifies or describes any thing of which it forms part, or to which it is attached by any means:

(d)

any book, map, plan, graph, or drawing:

(e)

any photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced

elect, in relation to a sink activity under Article 3.4 of the Protocol, means that a Party has advised the Secretariat of its intention to report to the Secretariat on that activity for the purpose of compliance with that Party’s obligations under Article 3.1 of the Protocol

electrical switchgear means fittings for—

(a)

controlling the distribution of electricity; or

(b)

controlling or protecting electrical circuits and electrical equipment; or

(c)

the transmission of electricity

eligible activity means—

(a)

an eligible agricultural activity; or

(b)

an eligible industrial activity

eligible agricultural activity means an activity or subclass of an activity listed in Part 5 of Schedule 3 in respect of which a person is required to surrender units for emissions under this Act

eligible industrial activity means an activity that is specified as an eligible industrial activity in regulations made under section 161A

eligible land means pre-1990 forest land (other than land that has been declared to be exempt land under section 183 or 184)

eligible person means a person who meets any requirements for receiving an allocation of New Zealand units specified in, as relevant,—

(c)

any regulations made under this Act:

(d)

an allocation plan

emission reduction unit means a unit derived from a joint implementation project, issued by converting an assigned amount unit or removal unit, and designated as an emission reduction unit by—

(a)

the Registry; or

(b)

an overseas registry of a Party listed in Annex B of the Protocol

emissions, in relation to an activity listed in Schedule 3 or 4, means carbon dioxide equivalent emissions of greenhouse gases from the activity

emissions return

(a)

means—

(i)

an annual emissions return submitted under section 65; or

(ii)

a quarterly emissions return submitted under section 66; or

(iii)

a final emissions return submitted under section 118; or

(iv)

an emissions return submitted under section 186, 187, 189, 191, 192, or 193; and

(b)

includes any emissions return submitted under section 65, 66, 118, 186, 187, 189, 191, 192, or 193 that shows nil liability

entity, in relation to a group, means a reporting entity or a reporting entity’s subsidiary, within the meaning of section 5 of the Financial Reporting Act 2013

Environmental Protection Authority or EPA means the Environmental Protection Authority established by section 7 of the Environmental Protection Authority Act 2011

executive board means the board established under Article 12(4) of the Protocol

exempt land

(a)

means pre-1990 forest land that has been declared to be exempt land—

(i)

under section 183; or

(ii)

under section 184 and in respect of which the conditions in section 184(6) have been met; but

(b)

does not include any forest land that met the definition in paragraph (a), but has been deforested, and in respect of which the number of units that would have been required to be surrendered in relation to an activity listed in Part 1 of Schedule 3, had the land not been exempt land, have been surrendered under section 187(2)

exotic forest species means a forest species that is not an indigenous forest species

expire or expiry, in relation to a long-term certified emission reduction unit or a temporary certified emission reduction unit, means a unit that is no longer capable of being—

(a)

transferred to any account other than the general cancellation account; or

(b)

retired

export has a corresponding meaning to exportation in section 2(1) of the Customs and Excise Act 1996

farm dairy has the same meaning as in section 4(1) of the Animal Products Act 1999

financial year has the same meaning as in section 2(1) of the Public Finance Act 1989

first commitment period means the commitment period from 1 January 2008 to 31 December 2012 (inclusive)

fishing allocation plan means the allocation plan that provides for the matters specified in section 74

Food Standards Code has the same meaning as in section 4(1) of the Animal Products Act 1999

forest land

(a)

means an area of land of at least 1 hectare that has, or is likely to have, tree crown cover from forest species of more than 30% in each hectare; and

(b)

includes an area of land that temporarily does not meet the requirements specified in paragraph (a) because of human intervention or natural causes but that is likely to revert to land that meets the requirements specified in paragraph (a); but

(c)

does not include—

(i)

a shelter belt of forest species, where the tree crown cover has, or is likely to have, an average width of less than 30 metres; or

(ii)

an area of land where the forest species have, or are likely to have, a tree crown cover of an average width of less than 30 metres, unless the area is contiguous with land that meets the requirements specified in paragraph (a) or (b)

forest species means a tree species capable of reaching at least 5 metres in height at maturity in the place where it is located, but does not include tree species grown or managed primarily for the production of fruit or nut crops

fugitive coal seam gas means gas released by the activity of mining coal as calculated in accordance with any regulations made under this Act

general cancellation account means an account in the Registry for the purpose of holding units on behalf of the Crown that are cancelled for any reason other than sink activities being a source of emissions or a determination that New Zealand is not in compliance with Article 3.1 of the Protocol

goods means all kinds of movable property, including motor vehicles

goods levy means the synthetic greenhouse gas levy imposed by section 227(1)(b)

greenhouse gas means a gas listed in Annex A of the Protocol

group has the same meaning as in section 5 of the Financial Reporting Act 2013

holding account means an account in the Registry for the purpose of holding units that have not been retired, surrendered, converted, or cancelled

import has a corresponding meaning to importation in section 2(1) of the Customs and Excise Act 1996

importer has the same meaning as in section 2(1) of the Customs and Excise Act 1996

indigenous forest species means a forest species that occurs naturally in New Zealand or has arrived in New Zealand without human assistance

indirect greenhouse gas

(a)

means a gas that—

(i)

reacts with other gases to form a greenhouse gas; or

(ii)

changes the chemistry of the atmosphere in a way that increases the lifetime of other greenhouse gases; and

(b)

includes, but is not limited to, carbon monoxide, nitrogen oxides, non-methane volatile organic compounds, and sulphur dioxide

industrial or trade premises means any premises used for any industrial or trade purposes, or any premises used for the storage, transfer, treatment, or disposal of waste materials or for other waste-management purposes; but does not include any production land

initial assigned amount means the allowance of emissions of greenhouse gas assigned to a Party listed in Annex B of the Protocol, measured in tonnes of carbon dioxide equivalent, and calculated under Articles 3.7 and 3.8 of the Protocol

international transaction log means an international log established and maintained by the Secretariat to confirm the validity of transactions, including the issue and transfer of Kyoto units between registries and between accounts in the Registry

inventory agency means the chief executive

joint implementation project means a project aimed at reducing the human-induced emissions of greenhouse gases by sources or enhancing the human-induced removals by sink activities of a Party listed in Annex I of the Convention that is undertaken under Article 6 of the Protocol

Kyoto units means all of the unit types specified in, or in accordance with, the Protocol (namely, assigned amount units, certified emission reduction units, emission reduction units, long-term certified emission reduction units, removal units, and temporary certified emission reduction units)

landowner,—

(a)

in relation to Crown land, means the appropriate Minister (as that term is defined in section 2A of the Crown Minerals Act 1991); and

(b)

in relation to land other than Crown land, means—

(i)

the legal owner of a freehold estate in the land; or

(ii)

if the land is Maori customary land (as defined in section 4 of Te Ture Whenua Maori Act 1993), the person or persons who have title to the land as determined under Te Ture Whenua Maori Act 1993; or

(iii)

if the land is Maori freehold land (as defined in section 4 of Te Ture Whenua Maori Act 1993), the legal owner of the land

leviable goods means goods that contain a specified synthetic greenhouse gas, but does not include an air-conditioning system that is part of a motor vehicle

leviable motor vehicle means a motor vehicle that includes, as part of the motor vehicle, an air-conditioning system containing a specified synthetic greenhouse gas

levy year means the period of 12 months starting on 1 January and ending with the close of 31 December

local authority means a local authority within the meaning of the Local Government Act 2002

long-term certified emission reduction replacement account means an account in the Registry—

(a)

for the purpose of—

(i)

replacing long-term certified emission reduction units in that account or the retirement account, before they are due to expire, with assigned amount units, certified emission reduction units, emission reduction units, or removal units; or

(ii)

replacing long-term certified emission reduction units, no more than 30 days before they are due to expire as a result of a reversal of sinks or non-receipt of a certification report, with—

(A)

assigned amount units, certified emission reduction units, emission reduction units, or removal units; or

(B)

long-term certified emission reduction units from the same clean development mechanism project; and

(b)

that is limited to the relevant commitment period

long-term certified emission reduction unit means a unit derived from a clean development mechanism project, issued by the CDM registry, and designated as a long-term certified emission reduction unit by the CDM registry

Maori land has the same meaning as in section 4 of Te Ture Whenua Maori Act 1993

member, in relation to an unincorporated body, means a partner, joint venturer, trustee, joint owner of land, or other member of the body

merchantable timber means timber from the stem of a tree more than 10 years old, other than—

(a)

the stump; and

(b)

wood that is decayed or grossly distorted; and

(c)

wood that is less than 10 centimetres in diameter, excluding the bark

mining has the same meaning as in section 2(1) of the Crown Minerals Act 1991

Minister means the Minister who is, under the authority of any warrant or under the authority of the Prime Minister, responsible for the administration of this Act

motor vehicle has the same meaning as in section 2(1) of the Land Transport Act 1998

motor vehicle levy means the synthetic greenhouse gas levy imposed by section 227(1)(a)

natural gas means—

(a)

all gaseous hydrocarbons produced from wells, including wet gas and residual gas remaining after the extraction of condensate from wet gas; and

(b)

liquid hydrocarbons, other than condensate, extracted from wet gas and sold as natural gas liquids, for example, liquid petroleum gas; and

(c)

coal seam gas

New Zealand Customs Service and the Customs have the same meanings as in section 2(1) of the Customs and Excise Act 1996

New Zealand unit means a unit issued by the Registrar and designated as a New Zealand unit

nominated entity, in relation to a consolidated group, means an entity appointed under section 150(4)(b) or 152(3)(b) as the nominated entity of a consolidated group

non-compliance cancellation account means an account in the Registry for the purpose of holding any units on behalf of the Crown that are cancelled as a result of a determination that New Zealand is not in compliance with Article 3.1 of the Protocol

obligation fuel means any fuel specified as obligation fuel in regulations made under this Act

obligation jet fuel means any jet fuel specified as obligation jet fuel in regulations made under this Act

offsetting forest land means land that the EPA has approved as offsetting forest land under section 186B

operating, in relation to a disposal facility, means being in control of the facility

ordinary hours of business means the hours of 8 am to 6 pm from Monday to Friday

overseas registry means—

(a)

a registry of a Party listed in Annex B of the Protocol (other than New Zealand):

(b)

the CDM registry

(c)

any other prescribed registry

participant means a person who is a participant under section 54

Party means a Party to the Protocol

performance, in relation to ruminants and other farmed livestock, means the production statistics with respect to those animals, including, but not limited to, weight, milk production, lambing and calving percentage, and wool weight

post-1989 forest land means forest land that—

(a)

was not forest land on 31 December 1989; or

(b)

was forest land on 31 December 1989 but was deforested in the period beginning on 1 January 1990 and ending on 31 December 2007; or

(c)

was pre-1990 forest land, other than exempt land,—

(i)

that was deforested on or after 1 January 2008; and

(ii)

in respect of which any liability to surrender units arising in relation to an activity listed in Part 1 of Schedule 3 has been satisfied; or

(ca)

was pre-1990 forest land, other than exempt land, that was deforested on or after 1 January 2013 and offset by pre-1990 offsetting forest land; or

(cb)

was pre-1990 offsetting forest land that was deforested after 1 January 2013 and in respect of which any liability to surrender units arising in relation to an activity listed in Part 1A of Schedule 3 has been satisfied; or

(d)

was exempt land—

(i)

that has been deforested; and

(ii)

in respect of which the number of units that would have been required to be surrendered in relation to an activity listed in Part 1 of Schedule 3, had the land not been exempt land, have been surrendered under section 187(2)

pre-1990 forest land

(a)

means forest land—

(i)

that was forest land on 31 December 1989; and

(ii)

that remained as forest land on 31 December 2007 (taking into account subsection (5)); and

(iii)

where the forest species on the forest land on 31 December 2007 consisted predominantly of exotic forest species; but

(b)

does not include any forest land that met the definition in paragraph (a), but—

(i)

has been deforested and in respect of which any liability to surrender units arising in respect of an activity listed in Part 1 of Schedule 3 has been satisfied; or

(ii)

was declared to be exempt land, has been deforested, and the number of units that would have been required to be surrendered in respect of an activity listed in Part 1 of Schedule 3 had the land not been exempt land have been surrendered under section 187(2)(b)

pre-1990 forest land allocation plan means an allocation plan that provides for the matters specified in section 72

pre-1990 offsetting forest land means offsetting forest land that the EPA has noted as pre-1990 offsetting forest land on the register under section 186D(3)

previous commitment period means a commitment period, including (but not limited to) the first commitment period, that—

(a)

is specified or determined under the Protocol; and

(b)

begins and ends before a subsequent commitment period

primary representative means an individual appointed by an account holder as a primary representative of the account holder in accordance with any regulations made under Part 2

production land means any land used for the production of primary products (including agricultural, pastoral, horticultural, and forestry products); but does not include any buildings

Protocol

(a)

means the Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on 11 December 1997, a copy of the English text of which is set out in Schedule 2; and

(b)

includes any amendments made to the Protocol that are, or will become, binding on New Zealand from time to time

provisional allocation means a provisional allocation made under section 81

public notice means a notice published in a daily newspaper in each of the cities of Auckland, Wellington, Christchurch, and Dunedin, and made accessible via the Internet

recover, in relation to dispose,—

(a)

means the extraction of materials or energy from waste for further use or processing; and

(b)

includes making waste into compost

recycle, in relation to dispose, means the reprocessing of waste to produce new materials

registered,—

(a)

in relation to a motor vehicle, has the same meaning as in section 2(1) of the Land Transport Act 1998; but

(b)

otherwise means registered in accordance with this Act

registered forestry right means a forestry right registered under the Forestry Rights Registration Act 1983

registered lease,—

(a)

in relation to a lease in respect of land registered under the Land Transfer Act 1952,—

(i)

means a lease registered under that Act; and

(b)

in relation to a lease in respect of land that is not registered under the Land Transfer Act 1952, means a lease registered under the Deeds Registration Act 1908

Registrar means the person appointed under section 11

Registrar of Motor Vehicles has the same meaning as Registrar in section 233(1) of the Land Transport Act 1998

Registry means the Registry established in New Zealand for the purpose set out in section 10

relevant commitment period means a commitment period that is specified or determined under the Protocol, and—

(a)

in which a particular activity or transaction occurs; or

(b)

to which an account or Kyoto unit is associated

removal activity means an activity that is listed in Part 1 or 2 of Schedule 4

removal unit means a unit—

(a)

derived from a Party’s sink activities that result in a net removal of greenhouse gases; and

(b)

designated as a removal unit by—

(i)

the Registry; or

(ii)

an overseas registry of a Party listed in Annex B of the Protocol

removals, in relation to a removal activity, means carbon dioxide equivalent greenhouse gases that are, as a result of the removal activity,—

(a)

removed from the atmosphere; or

(b)

not released into the atmosphere; or

(c)

a reduction from emissions reported in—

(i)

New Zealand’s annual inventory report under section 32 as required under the Convention or Protocol for any year; or

(ii)

any emissions report from New Zealand under a successor international agreement

retire, in relation to a Kyoto unit, means the transfer of that Kyoto unit to a retirement account in the Registry with the effect specified in section 18CA(2)

retirement account means an account in the Registry for the purpose of holding Kyoto units that the Minister of Finance has retired on behalf of the Crown

reuse, in relation to dispose, means the further use of waste in its existing form for the original purpose of the materials or products that constitute the waste or for a similar purpose

Secretariat means the Secretariat of the Convention

sink activity, in relation to greenhouse gas removals, means—

(a)

an activity under Article 3.3 of the Protocol; or

(b)

an elected activity under Article 3.4 of the Protocol

sink cancellation account means an account in the Registry for the purpose of holding units that the Minister of Finance has cancelled on behalf of the Crown as a result of sink activities resulting in a net source of emissions

solid biofuel means wood, wood waste, sulphate lyes, or charcoal

specified synthetic greenhouse gas means a hydrofluorocarbon or perfluorocarbon specified in regulations made under section 246(1)(a)

subsequent commitment period means a commitment period that—

(a)

is specified or determined under the Protocol; and

(b)

begins and ends after a previous commitment period

supervisory committee means the committee established to supervise the verification of emission reduction units generated by project activities under Article 6 of the Protocol

surrender means the transfer of a unit to a surrender account in the Registry with the effect specified in section 18CA(3) or (4)

surrender account means an account in the Registry for the purpose of holding units that account holders have surrendered

synthetic greenhouse gas means—

(a)

a hydrofluorocarbon; or

(b)

a perfluorocarbon

synthetic greenhouse gas levy or levy means the levy imposed by section 227

temporary certified emission reduction replacement account means an account in the Registry—

(a)

for the purpose of replacing temporary certified emission reduction units, before they are due to expire, with assigned amount units, certified emission reduction units, emission reduction units, removal units, or temporary certified emission reduction units that are due to expire in a subsequent commitment period; and

(b)

that is limited to the relevant commitment period

temporary certified emission reduction unit means a unit derived from a clean development mechanism project issued by the CDM registry, and designated as a temporary certified emission reduction unit by the CDM registry

tree weed means a tree that is defined or designated as—

(a)

a pest in a pest management strategy under the Biosecurity Act 1993; or

(b)

a tree weed in regulations made under this Act

tree weed spread means the spread of a tree weed by natural regeneration

unincorporated body

(a)

means an unincorporated body of persons; and

(b)

includes (but is not limited to)—

(i)

a partnership, a joint venture, or the trustees of a trust; and

(ii)

if land, a lease, a forestry right, or a Crown conservation contract is not owned, held, or entered into by a partnership, joint venture, or the trustees of a trust, 3 or more joint—

(A)

landowners; or

(B)

leaseholders; or

(C)

holders of a registered forestry right; or

(D)

parties to a Crown conservation contract; but

(c)

does not, unless they are partners, joint venturers, or trustees of a trust, include 2 joint—

(i)

landowners; or

(ii)

leaseholders; or

(iii)

holders of a registered forestry right; or

(iv)

parties to a Crown conservation contract

unit means a Kyoto unit, a New Zealand unit, or an approved overseas unit

usual rotation period, in relation to a forest species on land that is the subject of an offsetting forest land application under section 186A, means the usual rotation period prescribed for a forest species in any regulations made under this Act

waste means any thing that has been disposed of or discarded—

(a)

including (but not limited to) any disposed of or discarded thing that is defined by its composition or source (for example, organic waste, electronic waste, or construction and demolition waste); but

(b)

excluding any solid biofuel combusted for the purposes of generating electricity or industrial heat

year means a calendar year ending on 31 December.

(2)

Terms and expressions used and not defined in this Act but defined in the Convention or Protocol have, unless the context otherwise requires, the same meaning as in the Convention or Protocol.

(3)

A person is an associated person in relation to 1 or more other persons if—

(a)

each person is a body corporate and each of the bodies corporate—

(i)

consist substantially of the same members or shareholders; or

(ii)

are under the control of the same persons; or

(b)

any of the bodies corporate—

(i)

has the power, directly or indirectly, to exercise, or control the exercise of, 25% or more of the voting power at a meeting of the other; or

(ii)

is able to appoint or control 25% or more of the governing body of the other.

(4)

For the purposes of the definition of dispose, a deposit of waste is short-term if, not later than 6 months after the deposit (or any later time that the chief executive has agreed to in writing), the waste is—

(a)

reused or recycled; or

(b)

recovered; or

(c)

removed from the land for any other reason.

(5)

Despite anything in this Act, a hectare of land is not to be treated as pre-1990 forest land if,—

(a)

on 1 January 2008, the land had—

(i)

no standing exotic forest species (dead or alive), other than a strip of standing exotic forest species that had, or was likely to have, tree crown cover of an average width of less than 30 metres; and

(ii)

no other merchantable timber from exotic forest species; and

(b)

4 years after the date on which the land met the conditions in paragraph (a), it is not forest land and no allocation has been made in respect of the land under the pre-1990 forest land allocation plan.

(6)

For the purposes of sections 62, 65, 66, 67, 118, 187, 189, 191, 192, and 193, activity or activities, in relation to a participant who submits an emissions return that shows nil liability, includes any thing that would have been an activity listed in Schedule 3 or 4 if it had been carried out as, or to the extent, described in Schedule 3 or 4 during the period reported on in the emissions return.

(7)

For the purposes of the definition of landowner in relation to the activity listed in Part 1 of Schedule 3, 1 or more pieces of land (land A) and 1 or more pieces of other land (land B) that are owned by the same person are to be treated as if they were owned by different persons if—

(a)

land A and land B are held under different trusts; and

(b)

each trust has the same trustee or trustees; and

(c)

the trustees hold land A and land B in their capacity as professional trustees (as defined in section 183(7)).

Section 4(1) account number: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) agency: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) allocate: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) allocation plan: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) allocation plan: amended, on 8 December 2009, by section 8(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) animal material: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) animal product: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) animal welfare export certificate: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) annual financial statements of the Government: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) approved overseas unit: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) assigned amount unit: amended, on 26 September 2008, by section 6(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) associated person: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Australian eligible industrial activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) cancel: substituted, on 26 September 2008, by section 6(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carbon accounting area: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carbon accounting area paragraph (b): amended, on 8 December 2009, by section 8(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) carbon accounting area paragraph (c): added, on 8 December 2009, by section 8(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) carbon dioxide equivalent: amended, on 1 January 2013, by section 7(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) carbon dioxide equivalent: amended, on 26 September 2008, by section 6(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carbon equivalence: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) carry-over: amended, on 26 September 2008, by section 6(6)(a) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carry-over: amended, on 26 September 2008, by section 6(6)(b) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) carry-over: amended, on 1 August 2003, by section 5(1)(a) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) certified emission reduction unit: amended, on 26 September 2008, by section 6(7) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) chief executive: substituted, on 5 December 2011, by section 4(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) chief executive responsible for the administration of this Act: repealed, on 5 December 2011, by section 4(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) clean development mechanism project: amended, on 1 August 2003, by section 5(1)(b) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) clear: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) coal: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) commitment period: repealed, on 1 August 2003, by section 5(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) commitment period reserve: amended, on 26 September 2008, by section 6(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) commitment period reserve paragraph (b): amended, on 26 September 2008, by section 6(9) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) consolidated group: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) Convention: substituted, on 8 December 2009, by section 8(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) conversion account: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) convert: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Crown conservation contract: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Crown holding account: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) Crown land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) dairy processing: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) deforest: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) designated operational entity: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) disposal facility: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) dispose: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) document: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) draft allocation plan: repealed, on 8 December 2009, by section 8(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) electrical switchgear: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) eligible activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible agricultural activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible industrial activity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible land: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) eligible person: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) emission reduction unit: amended, on 26 September 2008, by section 6(10) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) emissions: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) emissions return: replaced, on 1 January 2013, by section 7(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) entity: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 4(1) Environmental Protection Authority or EPA: inserted, on 5 December 2011, by section 4(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) executive board: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) exempt land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) exotic forest species: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) expire or expiry: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) export: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) farm dairy: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) financial year: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) first commitment period: inserted, on 1 August 2003, by section 5(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) fishing allocation plan: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) Food Standards Code: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) forest land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) forest land paragraph (a): amended, on 8 December 2009, by section 8(7) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forest land paragraph (c)(i): amended, on 8 December 2009, by section 8(8) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forest land paragraph (c)(ii): amended, on 8 December 2009, by section 8(9) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) forest species: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) forest species: amended, on 8 December 2009, by section 8(10) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) fugitive coal seam gas: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) goods: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) goods levy: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) group: replaced, on 1 April 2014, by section 126 of the Financial Reporting (Amendments to Other Enactments) Act 2013 (2013 No 102).

Section 4(1) holding account: amended, on 26 September 2008, by section 6(11) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) holding account: amended, on 1 August 2003, by section 5(1)(c) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) import: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) importer: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) independent transaction log: repealed, on 26 September 2008, by section 6(12) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) indigenous forest species: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) initial assigned amount: amended, on 26 September 2008, by section 6(13) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) international transaction log: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) inventory agency: substituted, on 5 December 2011, by section 4(3) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Kyoto units: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) landowner: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) landowner paragraph (a): amended, on 24 May 2013, by section 65 of the Crown Minerals Amendment Act 2013 (2013 No 14).

Section 4(1) leviable goods: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) leviable motor vehicle: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) levy year: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1): local authority: substituted, on 1 July 2003, by section 262 of the Local Government Act 2002 (2002 No 84).

Section 4(1) long-term certified emission reduction replacement account: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) long-term certified emission reduction unit: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) long-term certified emission reduction unit: amended, on 26 September 2008, by section 6(15) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Maori land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) member: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) merchantable timber: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) mining: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Minister: substituted, on 5 December 2011, by section 4(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Minister responsible for the administration of this Act: repealed, on 5 December 2011, by section 4(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Minister responsible for the inventory agency: repealed, on 26 September 2008, by section 6(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Minister responsible for the Registry: repealed, on 26 September 2008, by section 6(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) motor vehicle: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) motor vehicle levy: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) natural gas: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) New Zealand Customs Service and the Customs: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) New Zealand unit: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) nominated entity: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) obligation fuel: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) obligation jet fuel: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) offsetting forest land: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) operating: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) overseas registry paragraph (c): added, on 26 September 2008, by section 6(16) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) participant: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) post-1989 forest land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) post-1989 forest land paragraph (b): amended, on 8 December 2009, by section 8(11) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) post-1989 forest land paragraph (ca): inserted, on 1 January 2013, by section 7(4) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) post-1989 forest land paragraph (cb): inserted, on 1 January 2013, by section 7(4) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) pre-1990 forest land: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) pre-1990 forest land allocation plan: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) pre-1990 offsetting forest land: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) previous commitment period: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) primary representative: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Protocol: substituted, on 8 December 2009, by section 8(12) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) provisional allocation: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) public notice: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) recover: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) recycle: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) registered: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) registered forestry right: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) registered lease: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) Registrar: inserted, on 5 December 2011, by section 4(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 4(1) Registrar of Motor Vehicles: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) relevant commitment period: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) relevant commitment period paragraph (b): amended, on 26 September 2008, by section 6(17) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) removal activity: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) removal unit paragraph (b): amended, on 26 September 2008, by section 6(18) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) removals: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) representative identifier: repealed, on 26 September 2008, by section 6(19) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) retire: substituted, on 26 September 2008, by section 6(20) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) retirement account: amended, on 26 September 2008, by section 6(21) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) reuse: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) solid biofuel: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) specified synthetic greenhouse gas: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) subsequent commitment period: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) surrender: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) surrender account: inserted, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) synthetic greenhouse gas: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) synthetic greenhouse gas levy or levy: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) temporary certified emission reduction replacement account: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) temporary certified emission reduction unit: inserted, on 1 August 2003, by section 5(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 4(1) temporary certified emission reduction unit: amended, on 26 September 2008, by section 6(22) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) tree weed: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) tree weed spread: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) unincorporated body: inserted, on 8 December 2009, by section 8(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) unit: substituted, on 26 September 2008, by section 6(23) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(1) usual rotation period: inserted, on 1 January 2013, by section 7(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(1) waste: substituted, on 8 December 2009, by section 8(13) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(1) year: added, on 26 September 2008, by section 6(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(3): added, on 26 September 2008, by section 6(24) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(4): added, on 26 September 2008, by section 6(24) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 4(5): substituted, on 8 December 2009, by section 8(14) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 4(6): inserted, on 1 January 2013, by section 7(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 4(7): inserted, on 1 January 2013, by section 7(5) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

5 Act binds the Crown

This Act binds the Crown.

Part 2 Institutional arrangements

Subpart 1Ministerial powers

Subpart 1 heading: replaced, on 1 January 2013, by section 8 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

6 Minister of Finance may direct Registrar regarding establishment of Crown holding accounts and carry out trading activities with respect to units

The Minister of Finance may, on behalf of the Crown,—

(a)

direct the Registrar to establish or close Crown holding accounts:

(b)

direct the Registrar to transfer units to any holding account in the Registry or to an overseas registry:

(c)

buy or sell units, or otherwise acquire or dispose of units:

(d)

enter into agreements to buy or sell units, or otherwise acquire or dispose of units, with any person (including any other Party):

(e)

buy or sell, or enter into any agreement to buy or sell, or otherwise acquire or dispose of, any financial derivatives or other financial instruments relating to units or in connection with transactions relating to units:

(f)

appoint agents to conduct the activities referred to in paragraphs (a) to (e) on the terms and conditions that the Minister of Finance thinks fit.

Section 6 heading: amended, on 8 December 2009, by section 9(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 6(a): amended, on 8 December 2009, by section 9(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

6A Minister’s power to sell by auction

If regulations are made under section 30G(1)(p), the Minister may, on behalf of the Crown,—

(a)

sell New Zealand units by auction within a prescribed overall limit:

(b)

appoint agents to conduct the sale on the terms and conditions that the Minister thinks fit.

Section 6A: inserted, on 1 January 2013, by section 9 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

7 Minister of Finance may give directions to Registrar regarding accounts and units

(1)

The Minister of Finance may give directions to the Registrar to—

(a)

establish the following accounts in the Registry for the Crown:

(i)

a sink cancellation account:

(ii)

a non-compliance cancellation account:

(iii)

a general cancellation account:

(iv)

a retirement account:

(v)

a long-term certified emission reduction replacement account:

(vi)

a temporary certified emission reduction replacement account:

(vii)

a surrender account:

(viii)

a conversion account:

(b)

issue assigned amount units in the Registry:

(c)

issue removal units or emission reduction units:

(d)

transfer, subject to any prescribed restriction or prohibition, units (other than long-term certified emission reduction units or temporary certified emission reduction units) from holding accounts to the general cancellation account, the long-term certified emission reduction replacement account, the non-compliance cancellation account, the retirement account, the surrender account, the conversion account, the temporary certified emission reduction replacement account, or the sink cancellation account:

(da)

transfer long-term certified emission reduction units or temporary certified emission reduction units from holding accounts to the general cancellation account, the long-term certified emission reduction replacement account, the temporary certified emission reduction replacement account, or the retirement account:

(db)

transfer Kyoto units from the surrender account to a Crown holding account if the units are not required, at the time of the transfer, to meet—

(i)

New Zealand’s international obligations; or

(ii)

any equivalent domestic targets:

(e)

carry-over assigned amount units, certified emission reduction units, and emission reduction units held in holding accounts:

(2)

Despite subsection (1), or any regulations made under this Act, the Minister of Finance may not give a direction to transfer units from an account held by an account holder other than the Crown to another account in the Registry, unless—

(a)

the Minister of Finance has the written consent of the account holder; or

(b)

if written consent is not given, the Minister of Finance gives the account holder reasonable notice and—

(i)

the transfer is required to comply with New Zealand’s obligations under the Protocol; or

(ii)

the account holder has failed to comply with Part 2 or any regulations made under section 30G; or

(c)

(3)

For the purposes of subsection (2)(b)(i), reasonable notice means sufficient opportunity in the circumstances for the relevant account holder to make a written submission to the Minister of Finance on the transfer of the units before the units are transferred.

Section 7(1)(a)(v): added, on 19 November 2007, by section 6(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(1)(a)(vi): added, on 19 November 2007, by section 6(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(1)(a)(vii): added, on 26 September 2008, by section 7(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(1)(a)(viii): added, on 26 September 2008, by section 7(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(1)(b): substituted, on 19 November 2007, by section 6(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(1)(d): substituted, on 19 November 2007, by section 6(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(1)(d): amended, on 26 September 2008, by section 7(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(1)(d): amended, on 26 September 2008, by section 7(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(1)(da): inserted, on 19 November 2007, by section 6(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(1)(db): inserted, on 1 January 2013, by section 10 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 7(1)(e): substituted, on 19 November 2007, by section 6(4) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(1)(e): amended, on 26 September 2008, by section 7(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(2): added, on 19 November 2007, by section 6(5) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 7(2)(b): substituted, on 26 September 2008, by section 7(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(2)(c): added, on 26 September 2008, by section 7(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 7(3): added, on 19 November 2007, by section 6(5) of the Climate Change Response Amendment Act 2006 (2006 No 59).

8 Registrar must give effect to directions of Minister of Finance

(1)

The Registrar must give effect to any directions given by the Minister of Finance under section 6 or section 7 in accordance with, and subject to, the procedures set out in subpart 2 of this Part and regulations made under section 30G.

(2)

To avoid doubt, the Crown Entities Act 2004 does not apply to a direction by the Minister of Finance to the Registrar.

Section 8(1): amended, on 26 September 2008, by section 8 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 8(2): added, on 5 December 2011, by section 5 of the Climate Change Response Amendment Act 2011 (2011 No 15).

8A Minister of Finance must publish directions

As soon as practicable after giving a direction under section 6 or 7, the Minister of Finance must publish a copy of the direction on the Registry’s Internet site.

Section 8A: inserted, on 19 November 2007, by section 7 of the Climate Change Response Amendment Act 2006 (2006 No 59).

9 Minister of Finance may obtain information from inventory agency and Registrar

For the purposes of managing the Crown’s holding of units and discharging New Zealand’s obligations under section 32(1)(b), the Minister of Finance may, as and when he or she thinks fit,—

(a)

direct the inventory agency to provide information estimating New Zealand’s human-induced emissions of greenhouse gases by sources and removals by sink activities:

(b)

direct the Registrar to provide information on those units, including, but not limited to, information indicating—

(i)

how many units the Crown holds; and

(ii)

how many units the Crown has issued or acquired, transferred, retired, replaced, cancelled, and carried-over.

Section 9: amended, on 19 November 2007, by section 8(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 9(b)(ii): amended, on 26 September 2008, by section 9 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 9(b)(ii): amended, on 19 November 2007, by section 8(2)(a) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 9(b)(ii): amended, on 19 November 2007, by section 8(2)(b) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Subpart 1A—Chief executive

Subpart 1A: inserted, on 5 December 2011, by section 6 of the Climate Change Response Amendment Act 2011 (2011 No 15).

9A Functions of chief executive

The functions of the chief executive are to—

(a)

advise the Minister; and

(b)

be the inventory agency; and

(c)

publish information on the Internet in accordance with this Act.

Section 9A: inserted, on 5 December 2011, by section 6 of the Climate Change Response Amendment Act 2011 (2011 No 15).

9B Delegation by chief executive

(1)

The chief executive may delegate any of his or her functions, duties, and powers under this Act to the EPA.

(2)

Section 41 of the State Sector Act 1988 applies to a delegation under this section as if the EPA were an employee of the chief executive.

Section 9B: inserted, on 5 December 2011, by section 6 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Subpart 2—Registry

Purpose of Registry

10 Purpose of Registry

(1)

The purpose of the Registry in relation to Kyoto units is to—

(a)

ensure the accurate, transparent, and efficient accounting of—

(i)

the issue, holding, transfer, retirement, surrender, and cancellation of Kyoto units; and

(ii)

the carry-over of assigned amount units, certified emission reduction units, and emission reduction units; and

(iii)

the replacement of expired long-term certified emission reduction units and expired temporary certified emission reduction units; and

(b)

ensure, in accordance with Article 7.4 of the Protocol, the accurate, transparent, and efficient exchange of information between—

(i)

the Registry and overseas registries; and

(ii)

the Registry and the international transaction log.

(c)
[Repealed]

(2)

The purpose of the Registry in relation to New Zealand units and approved overseas units is to ensure—

(a)

the accurate, transparent, and efficient accounting of—

(i)

the issue of New Zealand units; and

(ii)

the holding, transfer, surrender, and cancellation of New Zealand units and approved overseas units; and

(iii)

the conversion of New Zealand units into assigned amount units; and

(b)

the accurate, transparent, and efficient exchange of information between the Registry and overseas registries.

(3)

The purpose of the Registry in relation to all units is to facilitate the exchange of information between those persons with functions, duties, and powers under this Act to enable all of them to perform their functions and duties, and exercise their powers.

Section 10(1): amended, on 26 September 2008, by section 10(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(1)(a): amended, on 1 January 2013, by section 11 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 10(1)(a): amended, on 26 September 2008, by section 10(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(1)(a)(i): amended, on 26 September 2008, by section 10(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(1)(a)(i): amended, on 26 September 2008, by section 10(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(1)(a)(i): amended, on 19 November 2007, by section 9(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 10(1)(a)(iii): added, on 19 November 2007, by section 9(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 10(1)(b)(ii): amended, on 26 September 2008, by section 10(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(1)(b)(ii): amended, on 26 September 2008, by section 10(6) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(1)(c): repealed, on 26 September 2008, by section 10(7) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(2): added, on 26 September 2008, by section 10(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 10(3): added, on 26 September 2008, by section 10(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Registrar

11 EPA to appoint Registrar

The EPA must appoint an employee of the EPA as the Registrar.

Section 11: substituted, on 5 December 2011, by section 7 of the Climate Change Response Amendment Act 2011 (2011 No 15).

12 Registrar responsible for Registry

The Registrar is responsible for the operation, on behalf of the Crown, of the Registry.

Section 12: amended, on 5 December 2011, by section 8 of the Climate Change Response Amendment Act 2011 (2011 No 15).

13 Registrar may refuse access to, or suspend operation of, Registry

The Registrar may refuse access to the Registry, or otherwise suspend the operation of the Registry (in whole or in part),—

(a)

for maintenance; or

(b)

in response to technical difficulties; or

(c)

to ensure the security or integrity of the Registry; or

(d)

to give effect to New Zealand’s international obligations.

Section 13: substituted, on 19 November 2007, by section 10 of the Climate Change Response Amendment Act 2006 (2006 No 59).

14 Registrar must give effect to directions

The Registrar must give effect to any direction relating to the transfer of units from a Crown holding account (or in the case of reimbursement, from a surrender account) to the holding account of an eligible person or a participant (or, if required, in the prescribed circumstances to another holding account notified by one of those persons) that is given by a Minister authorised to give such directions in accordance with a provision in Part 4 or 5 of this Act or the EPA.

Section 14: substituted, on 8 December 2009, by section 10 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 14: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

15 Registrar to allocate unique numbers

(1)

The Registrar must, in accordance with regulations made under this Act,—

(a)

allocate a unique account number to each account when the account is created; and

(b)

allocate a unique serial number to—

(i)

each assigned amount unit when the Registrar records the initial assigned amount; and

(ii)

each removal unit when the Registrar issues the removal unit.

(1A)

The Registrar may, subject to regulations made under this Part, allocate a unique serial number to—

(i)

a New Zealand unit; or

(ii)

an approved overseas unit; or

(iii)

a class or subclass of New Zealand units; or

(iv)

a class or subclass of approved overseas units.

(2)

If the Minister of Finance directs the Registrar to issue emission reduction units under section 7, the Registrar must convert the assigned amount units or removal units specified by the Minister of Finance into emission reduction units by—

(a)

giving the emission reduction units the serial numbers of the units from which the emission reduction units are being converted; and

(b)

replacing the identifiers on the converted units with identifiers that designate that the converted units are emission reduction units.

Section 15 heading: amended, on 26 September 2008, by section 13(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 15(1A): inserted, on 26 September 2008, by section 13(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

16 Carry-over of certain Kyoto units

(1)

An account holder may, subject to regulations made under this Act, apply to the Registrar to carry-over assigned amount units, certified emission reduction units, or emission reduction units held in that account holder’s holding account.

(2)

Long-term certified emission reduction units, removal units, and temporary certified emission reduction units may not be carried-over.

Section 16: substituted, on 19 November 2007, by section 12 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 16 heading: amended, on 26 September 2008, by section 14(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 16(1): amended, on 26 September 2008, by section 14(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 16(2): amended, on 26 September 2008, by section 14(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

17 Commitment period reserve

(1)

Despite anything in this Act, the Registrar may not transfer or cancel Kyoto units if the transfer or cancellation would cause the total of the Kyoto units in all holding accounts and the retirement account in the unit register, excluding those Kyoto units subject to a notification from the international transaction log under section 21(3), to fall below the commitment period reserve.

(2)

This section does not apply to transfers or cancellations of Kyoto units that the Registrar has issued as emission reduction units that were verified by the supervisory committee.

Section 17(1): substituted, on 26 September 2008, by section 15(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 17(2): amended, on 26 September 2008, by section 15(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

17A Power of Registrar to delegate

(1)

The Registrar may, in writing, delegate to any person who is employed by the EPA or in the State services all or any of the functions, duties, and powers exercisable by the Registrar under this Act, except this power of delegation.

(2)

Subject to any general or special directions given or conditions specified at any time by the Registrar, the person to whom any functions, duties, or powers are delegated under this section must perform and may exercise those functions, duties, and powers in the same manner and with the same effect as if they had been conferred on that person directly by a section of this Act and not by delegation.

(3)

Every person purporting to act under any delegation under this section is, in the absence of proof to the contrary, presumed to be acting in accordance with the terms of the delegation.

(4)

Any delegation under this section may be to a specified person or to persons of a specified class, or may be to the holder or holders for the time being of a specified office or specified classes of offices.

(5)

Every delegation under this section is revocable in writing at will by the Registrar, and no such delegation prevents the exercise of any function, duty, or power by the Registrar.

(6)

Every delegation under this section, until revoked, continues in force according to its tenor, even if the Registrar by whom it was made has ceased to hold office.

(7)

For the purposes of this section, State services has the same meaning as in section 2 of the State Sector Act 1988.

Section 17A: inserted, on 8 December 2009, by section 11 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 17A(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Unit register

18 Form and content of unit register

(1)

The Registry must have a unit register that is—

(a)

in electronic form; and

(b)

accessible via the Registry’s Internet site; and

(c)

operated at all times, unless the Registrar suspends its operation (in whole or in part) under section 13 or as prescribed in regulations.

(2)

The unit register must contain—

(a)

a record of the holdings of units in holding accounts in New Zealand; and

(b)

the particulars of transactions, including, but not limited to,—

(i)

the issue, transfer, retirement, surrender, conversion, and cancellation of units; and

(ii)

the carry-over of assigned amount units, certified emission reduction units, and emission reduction units; and

(iii)

the replacement of long-term certified emission reduction units and temporary certified emission reduction units; and

(c)

any other matters that are required to be registered under this Act or regulations made under this Act.

(3)

A unit recorded in the unit register is—

(a)

indivisible with respect to the issue, holding, transfer, retirement, replacement, surrender, carry-over, cancellation, and conversion of a unit within the unit register; and

(b)

transferable, subject to any regulations made under this Act,—

(i)

within the unit register; or

(ii)

between the unit register and overseas registries.

Section 18(1)(b): amended, on 19 November 2007, by section 13(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18(2)(b)(i): amended, on 26 September 2008, by section 16(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18(2)(b)(i): amended, on 19 November 2007, by section 13(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18(2)(b)(iii): added, on 19 November 2007, by section 13(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18(3): added, on 19 November 2007, by section 13(4) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18(3)(a): substituted, on 26 September 2008, by section 16(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

18A Opening holding accounts

(1)

Any person may submit an application to the Registrar to open 1 or more holding accounts in the unit register by using the form and paying the fees (if any) prescribed in regulations made under this Act.

(2)

The Registrar may approve the opening of a holding account subject to any regulations made under this Act.

(3)

If the Registrar approves an application to open a holding account, the Registrar must, as soon as practicable,—

(a)

open a holding account in the applicant’s name; and

(b)

provide the applicant with an account number.

(4)

If the application is incomplete, the Registrar must, as soon as practicable, ask the applicant to provide the information or fee (if any) that is required to make the application complete.

(5)

The Registrar may refuse to provide a holding account to any applicant who provides an incomplete application.

(6)

A holding account is subject to any regulations made under this Act.

Section 18A: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18A(3)(b): amended, on 26 September 2008, by section 17 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

18B Closing holding accounts

(1)

An account holder may submit a request to the Registrar to close 1 or more of that account holder’s holding accounts in the unit register by using the form and paying the fee (if any) prescribed in regulations made under this Act.

(2)

The EPA may give a direction to the Registrar to close an account holder’s holding account—

(a)

if the EPA has the written consent of the account holder; or

(b)

where written consent is not given,—

(i)

if the EPA has given the account holder reasonable notice; and

(ii)

if—

(A)

the closure is required to comply with New Zealand’s obligations under the Protocol; or

(B)

the account holder has failed to comply with this Part or any regulations made regarding the matters specified in section 30G; or

(C)

the EPA is satisfied that the account holder no longer requires the account.

(3)

If there are any units remaining in a holding account when it is closed,—

(a)

the units are forfeited to the Crown; and

(b)

the Registrar must, as soon as practicable, transfer the units to a Crown holding account.

(4)

If a request is incomplete, the Registrar must, as soon as practicable, ask the account holder to provide the information or fee (if any) that is required to make the request complete.

(5)

The Registrar may not close a holding account if the account holder provides an incomplete request.

(6)

For the purposes of subsection (2)(b)(i), reasonable notice means sufficient opportunity in the circumstances to—

(a)

transfer the units to another account before the holding account that is the subject of the closure direction is closed; or

(b)

in the case of non-compliance, comply with this Part or any regulations made under section 30G; or

(c)

if the EPA is satisfied that an account holder no longer requires a holding account, make a written submission to the EPA, before the account is closed, regarding the account holder’s need to retain the account.

(7)

The Registrar must give effect to any directions given by the EPA under subsection (2) in accordance with, and subject to, the procedures set out in this subpart and any regulations made under section 30G.

Section 18B: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18B(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(2)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(2)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(2)(b)(ii)(B): amended, on 26 September 2008, by section 18(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18B(2)(b)(ii)(B): amended, on 26 September 2008, by section 18(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18B(2)(b)(ii)(C): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(6): substituted, on 26 September 2008, by section 18(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18B(6)(c): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18B(7): added, on 8 December 2009, by section 12 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 18B(7): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

18C Transfer of units

(1)

An account holder may, by using the form and paying the fees (if any) prescribed in regulations made under this Act, apply to the Registrar to transfer units from that account holder’s holding account to another account in—

(a)

the unit register; or

(b)

an overseas registry.

(2)

The Registrar must transfer the specified units as requested, subject to any regulations made under this Act.

(3)

Despite subsection (2), if the Registrar is asked to transfer Kyoto units held in an account holder’s holding account to a retirement account, the Registrar must—

(a)

seek a direction from the Minister of Finance as to whether the units may be transferred to a retirement account; and

(b)

transfer the units to a retirement account if the Minister of Finance so directs.

(4)

An account holder who receives units is under no obligation to initiate any registration process.

Section 18C: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18C(3): amended, on 26 September 2008, by section 19(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18C(3): amended, on 26 September 2008, by section 19(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18C(3)(a): amended, on 26 September 2008, by section 19(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18C(3)(b): amended, on 26 September 2008, by section 19(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

18CA Effect of surrender, retirement, cancellation, and conversion

(1)

A unit that is transferred to a cancellation account may not be further transferred, retired, surrendered, carried-over, or cancelled.

(2)

A Kyoto unit that is transferred to a retirement account may not be further transferred, retired, surrendered, carried-over, or cancelled.

(3)

A Kyoto unit that is transferred to a surrender account may only be further transferred, in accordance with—

(a)

a direction from the Minister of Finance, to—

(i)

a retirement account or a cancellation account; or

(ii)

a Crown holding account under section 7(1)(db); or

(b)

a direction of the EPA given under section 124, to a participant’s holding account.

(4)

A New Zealand unit or an approved overseas unit that is transferred to a surrender account may only be further transferred in accordance with a direction of the EPA given under section 124.

(5)

A New Zealand unit that is transferred to a conversion account may not be surrendered, cancelled, or otherwise further transferred except as required by section 30E(4)(b).

Section 18CA: inserted, on 26 September 2008, by section 20 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18CA(3): substituted, on 8 December 2009, by section 13 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 18CA(3)(a): replaced, on 1 January 2013, by section 12 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 18CA(3)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18CA(4): substituted, on 8 December 2009, by section 13 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 18CA(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

18CB Restriction on surrender of assigned amount units

(1)

No participant may surrender, or permit to be surrendered, an imported assigned amount unit to meet the participant’s obligations under section 63 unless the assigned amount unit meets the conditions or requirements prescribed in regulations made under this Part.

(2)

In this section and section 18CD, imported assigned amount unit means an assigned amount unit that is issued out of the initial assigned amount of a Party other than New Zealand.

Section 18CB: inserted, on 26 September 2008, by section 20 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

18CC Restriction on surrender of assigned amount units issued during first commitment period

(1)

No participant may surrender, or permit to be surrendered, a CP1 imported assigned amount unit to meet the participant’s obligations under section 63 in respect of any emissions from any activities listed in Schedule 3 or 4 carried out by the participant after 31 December 2012.

(2)

In this section and sections 18CD and 19, CP1 imported assigned amount unit means an assigned amount unit that is issued out of the initial assigned amount of a Party, other than New Zealand, during the first commitment period.

Section 18CC: inserted, on 26 September 2008, by section 20 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

18CD Effect of surrendering restricted assigned amount units

(1)

This section applies if at any time the Registrar discovers that—

(a)

an imported assigned amount unit has been transferred to a surrender account that does not meet any of the conditions or requirements prescribed in regulations made under this Part; or

(b)

a CP1 imported assigned amount unit has been transferred to a surrender account to meet a participant’s obligations under section 63 in respect of any emissions from any activities listed in Schedule 3 or 4 carried out by the participant after 31 December 2012.

(2)

If this section applies, the Registrar must—

(a)

reverse the transfer; and

(b)

notify the participant and the EPA that the transfer has been reversed.

(3)

If a transfer is reversed under subsection (2),—

(a)

the EPA must treat the transfer as never taking place for the purpose of assessing whether a participant has surrendered the required number of units by the due date as required under any section of this Act; and

(b)

if the EPA considers that the person has not surrendered the required number of units by the due date, give a notice to the participant under section 134(3)(a).

Section 18CD: inserted, on 26 September 2008, by section 20 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 18CD(2)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18CD(3)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 18CD(3)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

18D Succession

(1)

This section applies if an account holder—

(a)

is a natural person and dies; or

(b)

is not a natural person and is wound up, liquidated, dissolved, or otherwise ceases to exist.

(2)

If this section applies, the person listed on the holding account as the account holder’s representative may operate the holding account until—

(a)

a successor is determined; and

(b)

the Registrar is informed of that determination in writing.

(3)

If a successor is determined, and the Registrar is informed of that determination in writing, the Registrar must register the successor as the account holder.

Section 18D: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

18E Trusts, representatives, and assignees of bankrupts

(1)

Notice of a trust, whether express, implied, or constructive, may not be entered on the unit register except in accordance with subsection (1A).

(1A)

If the trustees of a trust apply to open a holding account under section 18A, then—

(a)

the trustees may specify the name of the trust as the name of the holding account; and

(b)

the Registrar may enter on the unit register the name of the trust as the name of the holding account.

(2)

Despite anything in section 18D, the existence of a representative that may operate the holding account of an account holder who has died, or that has been wound up, liquidated, or dissolved, or otherwise has ceased to exist, does not constitute notice of a trust.

(3)

The assignee of the property of a bankrupt may be entered on the unit register as the assignee of the bankrupt’s units.

Section 18E: inserted, on 19 November 2007, by section 14 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 18E(1): substituted, on 8 December 2009, by section 14 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 18E(1A): inserted, on 8 December 2009, by section 14 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

19 Retirement of Kyoto units by the Crown

(1)

The Crown may offset each tonne of carbon dioxide equivalent of human-induced greenhouse gas emissions, emitted from sources listed in Annex A of the Protocol, by transferring a Kyoto unit to the retirement account.

(2)

Despite subsection (1), the Crown may not retire a CP1 imported assigned amount unit to offset any carbon dioxide equivalent of human-induced greenhouse gas emissions that are emitted after 31 December 2012 from sources listed in Annex A of the Protocol.

(3)

New Zealand units and approved overseas units may not be retired.

Section 19: substituted, on 26 September 2008, by section 21 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

20 Transactions must be registered

(1)

A transaction to issue, transfer, cancel, retire, surrender, convert, or replace units must be registered on the unit register.

(2)

However, the Registrar may not register a transaction on the unit register if—

(a)

the Registrar receives a notification from the international transaction log that there is a discrepancy with the transaction; or

(b)

the transaction is not submitted in the prescribed form; or

(c)

the prescribed fees (if any) have not been paid to the Registrar (unless arrangements for payment have been made in accordance with regulations made under this Act).

Section 20(1): amended, on 26 September 2008, by section 22(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 20(1): amended, on 19 November 2007, by section 15(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 20(2): substituted, on 19 November 2007, by section 15(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 20(2)(a): amended, on 26 September 2008, by section 22(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

21 Registration procedure for Kyoto units

(1)

On receipt of a direction in relation to Kyoto units given by the Minister authorised to give the direction under a provision of this Act or the EPA, or an application for the registration of a transaction in relation to Kyoto units by an account holder that is completed to the satisfaction of the Registrar and in accordance with any regulations made under this Act, the Registrar must—

(a)

create a unique transaction number; and

(b)

if the proposed transaction concerns the international transaction log, send a record of the proposed transaction to the international transaction log if required to do so by the international transaction log; and

(c)

if the proposed transaction does not concern the international transaction log,—

(i)

record in the unit register the particulars of the transaction set out in the direction or the application; and

(ii)

send electronic notification that the transaction has been recorded in the unit register to,—

(A)

in the case of a direction, the Minister or the EPA who gave the direction and, if the direction specifies that Kyoto units are to be transferred to a holding account of an account holder other than the Crown, the account holder:

(B)

in the case of an application, the account holder who submitted the application and the account holder specified in the application as the account holder to whose holding account Kyoto units are to be transferred.

(2)

If the Registrar sends a record of the proposed transaction to the international transaction log under subsection (1)(b) and receives notification back from the international transaction log that there are no discrepancies in the transaction, the Registrar must, as soon as practicable,—

(a)

record in the unit register the particulars of the transaction set out in the direction or the application; and

(b)

send notification that the transaction has been recorded in the unit register to the international transaction log; and

(c)

send electronic notification that the transaction has been recorded in the unit register to,—

(i)

in the case of a direction, the Minister or the EPA who gave the direction; or

(ii)

in the case of an application, the account holder.

(3)

If the Registrar receives a notification from the international transaction log that there is a discrepancy in a transaction in relation to Kyoto units, the Registrar—

(a)

may not register the transaction; and

(b)

must terminate the transaction; and

(c)

must give notification of the termination, as soon as practicable, to the international transaction log; and

(d)

send electronic notification that the transaction has been terminated to,—

(i)

in the case of a direction, the Minister or the EPA who gave the direction; or

(ii)

in the case of an application, the account holder.

(4)

This section does not apply to the carry-over of assigned amount units, certified emission reduction units, and emission reduction units.

Section 21 heading: amended, on 26 September 2008, by section 23(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(1): substituted, on 19 November 2007, by section 16(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 21(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21(1): amended, on 26 September 2008, by section 23(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(1): amended, on 26 September 2008, by section 23(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(1)(a): amended, on 8 December 2009, by section 15(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21(1)(b): substituted, on 26 September 2008, by section 23(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(1)(c): added, on 26 September 2008, by section 23(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(1)(c)(ii)(A): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21(1)(c)(ii)(A): amended, on 8 December 2009, by section 15(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21(2): substituted, on 26 September 2008, by section 23(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(2)(c)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21(2)(c)(i): amended, on 8 December 2009, by section 15(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21(3): amended, on 26 September 2008, by section 23(6) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(3): amended, on 26 September 2008, by section 23(7) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(3)(c): substituted, on 26 September 2008, by section 23(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(3)(d): added, on 26 September 2008, by section 23(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21(3)(d)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21(3)(d)(i): amended, on 8 December 2009, by section 15(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21(4): amended, on 26 September 2008, by section 23(9) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

21AA Registration procedure for New Zealand units and approved overseas units

(1)

On receipt of a direction in relation to New Zealand units or approved overseas units given by a Minister authorised to give the direction under a provision of this Act or the EPA, or an application for the registration of a transaction in relation to New Zealand units or approved overseas units by an account holder, which is completed to the satisfaction of the Registrar and in accordance with any regulations made under this Act, the Registrar must—

(a)

create a unique transaction number; and

(b)

if the proposed transaction concerns an overseas registry, send a record of the proposed transaction to the overseas registry if required to do so by the overseas registry; and

(c)

if the proposed transaction does not concern an overseas registry,—

(i)

record in the unit register the particulars of the transaction set out in the direction or the application; and

(ii)

send electronic notification that the transaction has been recorded in the unit register to,—

(A)

in the case of a direction, the Minister or the EPA who gave the direction and, if the direction specifies that New Zealand units or approved overseas units are to be transferred to the holding account of an account holder other than the Crown, the account holder:

(B)

in the case of an application, the account holder who submitted the application and the account holder specified in the application as the account holder to whose holding account New Zealand units or approved overseas units are to be transferred.

(2)

If the Registrar sends a record of the proposed transaction to an overseas registry under subsection (1)(b) and receives notification back from the overseas registry that there are no discrepancies in the transaction, the Registrar must, as soon as practicable,—

(a)

record in the unit register the particulars of the transaction set out in the direction or the application; and

(b)

send notification to the overseas registry that the transaction has been recorded in the unit register; and

(c)

send electronic notification that the transaction has been recorded in the unit register to,—

(i)

in the case of a direction, the Minister or the EPA who gave the direction; or

(ii)

in the case of an application, the account holder.

(3)

If the Registrar receives a notification from the overseas registry that there is a discrepancy in a proposed transaction in relation to New Zealand units or approved overseas units, the Registrar—

(a)

may not register the transaction; and

(b)

must terminate the transaction; and

(c)

must notify the overseas registry of the termination; and

(d)

send electronic notification that the transaction has been terminated to,—

(i)

in the case of a direction, the Minister or the EPA who gave the direction; or

(ii)

in the case of an application, the account holder.

Section 21AA: inserted, on 26 September 2008, by section 24 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 21AA(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21AA(1)(c)(ii)(A): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21AA(1)(c)(ii)(A): amended, on 8 December 2009, by section 16(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21AA(2)(c)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21AA(2)(c)(i): amended, on 8 December 2009, by section 16(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 21AA(3)(d)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21AA(3)(d)(i): amended, on 8 December 2009, by section 16(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

21A Electronic registration

A direction to the Registrar by the Minister or the EPA under a provision of this Act or an application by an account holder to register a transaction must be—

(a)

made electronically in the prescribed form via the Registry’s Internet site, and contain the particulars specified in the form; and

(b)

accompanied by the fee (if any) prescribed in regulations made under this Act; and

(c)

made in accordance with regulations made under this Act.

Section 21A: inserted, on 19 November 2007, by section 17 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 21A: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 21A: amended, on 8 December 2009, by section 17 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

21B Defective applications

(1)

If an application is defective, the Registrar may—

(a)
[Repealed]

(b)

direct, in writing by electronic notification, the applicant to correct the defect within a specified period of time.

(2)

If a direction to correct a defect is not complied with within the specified period of time, the Registrar may refuse to—

(a)

proceed with the registration; or

(b)

register the transaction.

(3)

Any fees paid to the Registrar in relation to an uncorrected defective application are forfeited.

Section 21B: inserted, on 19 November 2007, by section 17 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 21B(1)(a): repealed, on 26 September 2008, by section 25 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

22 Transactions take effect when registered

(1)

A transaction takes effect when it is registered.

(2)

A transaction is registered when the Registrar—

(a)

assigns a registration number, date, and time, and other information that may be required by this Act, to the transaction; and

(b)

enters those particulars in the unit register.

23 Receiving Kyoto units from overseas registries

(1)

If the Registrar receives notification from an overseas registry of a proposal to transfer Kyoto units to an account in the Registry, the Registrar must register the transaction.

(a)
[Repealed]

(b)
[Repealed]

(2)

If the Registrar receives notification from an overseas registry of a proposal to transfer Kyoto units to an account in the Registry and receives notification from the international transaction log that there is a discrepancy, the Registrar—

(a)

may not register the transaction; and

(b)

must terminate the transaction; and

(c)

must notify the international transaction log of the termination.

(3)

A transfer of Kyoto units from an overseas registry is subject to any regulations made under this Act.

(4)

Subsection (1) is subject to subsection (2).

Section 23 heading: amended, on 26 September 2008, by section 26(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23(1): amended, on 1 January 2013, by section 13(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 23(1): amended, on 26 September 2008, by section 26(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23(1)(a): repealed, on 1 January 2013, by section 13(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 23(1)(b): repealed, on 19 November 2007, by section 18(1) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 23(2): amended, on 26 September 2008, by section 26(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23(2): amended, on 26 September 2008, by section 26(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23(2)(c): amended, on 26 September 2008, by section 26(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23(2)(c): amended, on 19 November 2007, by section 18(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 23(3): added, on 19 November 2007, by section 18(3) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 23(3): amended, on 26 September 2008, by section 26(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 23(4): inserted, on 1 January 2013, by section 13(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

23A Receiving New Zealand units and approved overseas units from overseas registries

(1)

If the Registrar receives notification from an overseas registry of a proposal to transfer New Zealand units or approved overseas units to an account in the Registry and the Registrar is satisfied that there is no discrepancy with the transaction, the Registrar must register the transaction in accordance with the notification.

(2)

If the Registrar receives notification from an overseas registry of a proposal to transfer New Zealand units or approved overseas units to an account in the Registry and the Registrar is satisfied that there is a discrepancy with the transaction, the Registrar—

(a)

may not register the transaction; and

(b)

must terminate the transaction; and

(c)

must notify the overseas registry of the termination.

(3)

A transfer of New Zealand units or approved overseas units from an overseas registry is subject to any regulations made under this Act.

Section 23A: inserted, on 26 September 2008, by section 27 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

24 Priority of registration

(1)

A direction given to the Registrar by the Minister or the EPA under a provision of this Act or an application for the registration of a transaction by an account holder must, as soon as practicable, be processed in the chronological order in which it is received by the Registrar.

(2)

A direction or an application is received by the Registrar when it is recorded as being downloaded into the computer maintained to operate the unit register.

(3)

Subsection (1) applies to an application for the registration of a transaction only if the application is completed to the satisfaction of the Registrar and in accordance with any regulations made under this Act.

Section 24(1): substituted, on 26 September 2008, by section 28(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 24(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 24(1): amended, on 8 December 2009, by section 18 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 24(2): amended, on 19 November 2007, by section 19(2) of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 24(3): added, on 26 September 2008, by section 28(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

25 Correction of unit register

(1)

If the unit register records a transaction inaccurately, and the inaccuracy is the result of an error or omission made by the Registrar when registering the transaction, then a request to correct the inaccuracy may be submitted by—

(a)

the Minister or the EPA who gave the direction, if the Registrar registered the transaction following receipt of a direction from the Minister or the EPA; or

(b)

the account holder who applied to register the transaction.

(2)

The request—

(a)

may be made at any time; and

(b)

must specify—

(i)

the inaccuracy; and

(ii)

the correction required; and

(c)

must be in the form, and accompanied by the fees (if any), prescribed in regulations made under this Act.

(3)

If the Registrar is satisfied that the unit register is inaccurate in any respect, the Registrar may

(a)

correct the unit register accordingly; and

(b)

record on the unit register—

(i)

the nature of the correction; and

(ii)

the time that the correction was made; and

(c)

give notification of the correction, as soon as practicable, to—

(i)

any person whom the Registrar considers to be affected by the correction; and

(ii)

the international transaction log (if required to do so); and

(iii)

an overseas registry (if required to do so).

Section 25: substituted, on 19 November 2007, by section 20 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 25(1): substituted, on 26 September 2008, by section 29(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 25(1)(a): substituted, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 25(3): amended, on 26 September 2008, by section 29(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 25(3)(c)(ii): substituted, on 26 September 2008, by section 29(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 25(3)(c)(iii): substituted, on 26 September 2008, by section 29(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

26 Unit register must be open for search

(1)

Except as provided in section 13, the unit register must be open at all times for searches by a person via the Registry’s Internet site.

(2)

The Registrar is not required to make publicly available any information that is not listed in section 27.

Section 26(1): amended, on 19 November 2007, by section 21 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 26(2): added, on 26 September 2008, by section 30 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

27 Information accessible by search

(1)

The following information must be accessible by a search of the unit register:

(a)

the following up-to-date information for each account:

(i)

the name of the account holder; and

(ii)

the type of account; and

(iii)

the account number; and

(iv)

the full name, mailing address, telephone number, fax number, and email address of any primary representatives of the account holder; and

(b)

a list of account holders; and

(c)

the relevant commitment period of any—

(i)

general cancellation account or retirement account; and

(ii)

long-term certified emission reduction replacement account or temporary certified emission reduction replacement account; and

(d)

any other information prescribed in regulations made under this Part.

(2)

The following information must be made accessible by a search of the unit register, and be available by 31 January in each year, in a form that shows the relevant totals at the end of the previous year:

(a)

the total holdings of Kyoto units in the Registry; and

(b)

the total holdings of assigned amount units, emission reduction units, certified emission reduction units, long-term certified emission reduction units, temporary certified emission reduction units, and removal units in the Registry; and

(c)

the total quantity of New Zealand units issued during that year under section 68 or 178B; and

(d)

the total quantity of New Zealand units transferred for each removal activity during that year; and

(e)

the total holdings of New Zealand units in the Registry; and

(f)

the total holdings of approved overseas units in the Registry; and

(g)

the total holdings of each type of approved overseas units in the Registry; and

(h)

the total quantity of assigned amount units issued on the basis of New Zealand’s initial assigned amount during that year; and

(i)

the total quantity of emission reduction units issued on the basis of a joint implementation project during that year; and

(j)

the following information in relation to units transferred to the Registry from overseas registries during that year:

(i)

the total quantity of units transferred; and

(ii)

the total quantity of each type of unit transferred; and

(iii)

the identity of the transferring overseas registries, including the total quantity of—

(A)

units transferred from each overseas registry; and

(B)

each type of unit transferred from each overseas registry; and

(k)

the following information in relation to units transferred from the Registry to overseas registries during that year:

(i)

the total quantity of units transferred; and

(ii)

the total quantity of each type of unit transferred; and

(iii)

the identity of the acquiring overseas registries, including the total quantity of—

(A)

units transferred to each overseas registry; and

(B)

each type of unit transferred to each overseas registry; and

(l)

the total quantity of units transferred between holding accounts in the Registry during that year; and

(m)

the total quantity of each type of unit transferred between holding accounts in the Registry during that year; and

(n)

the total quantity of removal units issued in relation to sink activities during that year; and

(o)

the total quantity of Kyoto units transferred to the sink cancellation account during that year; and

(p)

the total quantity of Kyoto units transferred to the non-compliance cancellation account during that year; and

(q)

the total quantity of units transferred to the general cancellation account during that year; and

(r)

the total quantity of Kyoto units retired during that year; and

(s)

the total quantity of units surrendered during that year; and

(t)

the total quantity of each type of unit surrendered during that year; and

(u)

the following information in relation to New Zealand units transferred to the conversion account during that year:

(i)

the total quantity of New Zealand units converted; and

(ii)

the total quantity of New Zealand units converted for the purpose of transferring designated assigned amount units to—

(A)

an account in an overseas registry; or

(B)

the general cancellation account; and

(v)

the total quantity of assigned amount units, certified emission reduction units, and emission reduction units carried-over from a previous commitment period during that year; and

(w)

the expiry date of each long-term certified emission reduction unit and each temporary certified emission reduction unit held in the Registry.

(3)

The following information must be accessible by a search of the unit register in a form that shows the relevant totals at the beginning of the previous year:

(a)

the total holdings of Kyoto units in each holding account in the Registry (including any holding account held by the Crown); and

(b)

the total holdings of assigned amount units, emission reduction units, certified emission reduction units, long-term certified emission reduction units, temporary certified emission reduction units, and removal units in each holding account in the Registry (including any holding account held by the Crown).

Section 27: substituted, on 26 September 2008, by section 31 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 27(2)(c): replaced, on 1 January 2013, by section 14 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

28 Search of unit register

A person may, by using the form and paying the fees (if any) prescribed by regulations made under this Act, search the unit register, and obtain a printed search result, in accordance with this Act and any regulations made under this Act.

Section 28: substituted, on 14 November 2006, by section 23 of the Climate Change Response Amendment Act 2006 (2006 No 59).

29 Printed search result receivable as evidence

A printed search result, or a copy of a printed search result, that purports to be issued by the Registrar is receivable as evidence and is, in the absence of evidence to the contrary, proof of any matter recorded in the unit register, including (but not limited to)—

(a)

the ownership of units; and

(b)

the date and time of the registration of a transaction; and

(c)

information that the Registry holds.

Section 29: substituted, on 14 November 2006, by section 23 of the Climate Change Response Amendment Act 2006 (2006 No 59).

30 Recovery of fees

(1)

A fee that is not paid in accordance with regulations made under this Part may be recovered from the person liable to pay the fees by the EPA in any court of competent jurisdiction.

(2)

The EPA may enter into any agreement or arrangement, on any terms that the EPA thinks fit, with any person to collect, or assist in the collection of, any fees that are payable.

Section 30(1): amended, on 26 September 2008, by section 32(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 30(1): amended, on 26 September 2008, by section 32(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 30(2): amended, on 26 September 2008, by section 32(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

30A The Crown or Registrar not liable in relation to searches in certain cases

No action may be brought against the Crown or the Registrar for any loss or damage resulting from—

(a)

an inaccuracy in a search of the unit register; or

(b)

an inaccurate entry or omission in the unit register if the inaccuracy or omission arises from reasonable reliance on information received by the Registrar from—

(i)

the international transaction log; or

(ia)

an overseas registry; or

(ib)

a third party; or

(ii)

an account holder.

Section 30A: inserted, on 14 November 2006, by section 24 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 30A heading: amended, on 26 September 2008, by section 33(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30A(b)(i): amended, on 26 September 2008, by section 33(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30A(b)(ia): inserted, on 26 September 2008, by section 33(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30A(b)(ib): inserted, on 26 September 2008, by section 33(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Expiry of long-term certified emission reduction units and temporary certified emission reduction units

Heading: inserted, on 14 November 2006, by section 24 of the Climate Change Response Amendment Act 2006 (2006 No 59).

30B Expiry of long-term certified emission reduction units

(1)

A long-term certified emission reduction unit expires at the end of the last crediting period for the clean development mechanism project to which it relates.

(2)

A person who holds a long-term certified emission reduction unit in a retirement account or a long-term certified emission reduction replacement account must replace that unit before it expires by transferring one of the following units to the long-term certified emission reduction replacement account:

(a)

an assigned amount unit; or

(b)

a certified emission reduction unit; or

(c)

an emission reduction unit; or

(d)

a removal unit.

(3)

Thirty days before a long-term certified emission reduction unit in a retirement account or a long-term certified emission reduction replacement account expires, the Registrar must notify in writing the person who holds that unit that it is due to expire and must be replaced.

(4)

If a long-term certified emission reduction unit is not held in a retirement account or a long-term certified emission reduction replacement account, the Registrar must transfer that unit to the general cancellation account when that unit expires.

(5)

If subsection (4) applies, then section 18C(3) does not apply.

Section 30B: inserted, on 14 November 2006, by section 24 of the Climate Change Response Amendment Act 2006 (2006 No 59).

30C Replacement of certain long-term certified emission reduction units

(1)

A person who holds a long-term certified emission reduction unit must replace that unit in accordance with this section if the designated operating entity of the relevant clean development mechanism project—

(a)

provides a certification report that indicates a reversal of net anthropogenic greenhouse gas removals by sinks since the previous certification; or

(b)

does not provide a certification report.

(2)

If subsection (1) applies,—

(a)

each identified long-term certified emission reduction unit, as notified by the executive board, must be replaced by one of the following units:

(i)

assigned amount units; or

(ii)

certified emission reduction units; or

(iii)

emission reduction units; or

(iv)

removal units; or

(v)

long-term certified emission reduction units from the same clean development mechanism project; and

(b)

the Registrar must notify in writing the person who holds the affected long-term certified emission reduction unit.

(3)

A person notified under subsection (2)(b) must replace the affected long-term certified emission reduction unit within 30 days of receiving the notice.

(4)

Sections 354 to 361 of the Property Law Act 2007 apply, with all necessary modifications, to any notice required under subsection (2)(b).

Section 30C: inserted, on 14 November 2006, by section 24 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 30C(4): amended, on 1 January 2008, by section 364(1) of the Property Law Act 2007 (2007 No 91).

30D Expiry of temporary certified emission reduction units

(1)

A temporary certified emission reduction unit expires at the end of the subsequent commitment period that immediately follows the relevant commitment period.

(2)

A person who holds a temporary certified emission reduction unit in a retirement account or a temporary certified emission reduction replacement account must replace that unit before it expires by transferring one of the following units to the temporary certified emission reduction replacement account:

(a)

an assigned amount unit; or

(b)

a certified emission reduction unit; or

(c)

an emission reduction unit; or

(d)

a removal unit; or

(e)

a temporary certified emission reduction unit that is due to expire in a subsequent commitment period.

(3)

Thirty days before a temporary certified emission reduction unit in a retirement account or a temporary certified emission reduction replacement account expires, the Registrar must notify in writing the person who holds that unit that it is due to expire and must be replaced.

(4)

If a temporary certified emission reduction unit is not held in a retirement account or a temporary certified emission reduction replacement account, the Registrar must transfer that unit to the general cancellation account when that unit expires.

(5)

If subsection (4) applies, then section 18C(3) does not apply.

Section 30D: inserted, on 14 November 2006, by section 24 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Miscellaneous provisions

Heading: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

30E Conversion of New Zealand units into designated assigned amount units for sale overseas or cancellation

(1)

An account holder may apply to the Registrar to convert a New Zealand unit held by that person into a designated assigned amount unit held for the purposes of transferring that assigned amount unit to—

(a)

an account in an overseas registry; or

(b)

the general cancellation account.

(2)

An account holder who applies to convert any New Zealand units into designated assigned amount units for either purpose specified in subsection (1) must—

(a)

submit the prescribed form to the Registrar specifying the New Zealand units that the account holder wishes to convert; and

(b)

submit an application under section 18C for the transfer of an equivalent number of designated assigned amount units (into which the account holder is converting the New Zealand units) to—

(i)

an account in an overseas registry; or

(ii)

the general cancellation account; and

(c)

pay the prescribed fee (if any).

(3)

Upon receipt of an application under subsection (2) the Registrar must, as soon as practicable,—

(a)

transfer the New Zealand units specified in the application from the account holder’s account to the conversion account; and

(b)

transfer to the account holder’s account an equivalent number of designated assigned amount units; and

(c)

subject to section 21(3), register the transaction applied for under subsection (2)(b).

(3A)

The Registrar’s obligations under subsection (3) apply only if, and to the extent that, there are sufficient designated assigned amount units to meet a request under subsection (2) to convert New Zealand units.

(4)

If the Registrar receives notification from the international transaction log under section 21(3) that there are discrepancies in the transaction relating to the application submitted under subsection (2)(b), the Registrar must—

(a)

comply with section 21(3); and

(b)

reverse the transfers in subsection (3)(a) and (b).

(5)

For the purposes of this section, designated assigned amount unit means an assigned amount unit that—

(a)

was issued by the Registrar on the basis of New Zealand’s initial assigned amount; and

(b)

is held by the Crown in a Crown holding account.

Section 30E: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30E(3A): inserted, on 1 January 2013, by section 15 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

30F Restrictions on certain New Zealand units allocated to landowners of pre-1990 forest land

(1)

This section applies to any New Zealand units transferred or to be transferred after 31 December 2012 in accordance with the pre-1990 forest land allocation plan issued under section 70.

(2)

[Repealed]

(3)

If the activity listed in Part 1 of Schedule 3 is repealed, the Minister of Finance may issue a direction to the Registrar under section 7 to transfer from any holding account to a cancellation account any New Zealand units to which this section applies.

Section 30F: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30F(1): substituted, on 8 December 2009, by section 20 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 30F(2): repealed, on 8 December 2009, by section 20 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

30G Regulations relating to Part 2

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for any or all of the following purposes:

(a)

prescribing procedures and requirements relating to any powers of the Minister of Finance under subpart 1 of this Part:

(b)

prescribing matters, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, or prohibitions, in respect of—

(i)

the transfer of units, including (but not limited to)—

(A)

the transfer of units from an account holder’s holding account to an account in an overseas registry:

(B)

the transfer of units within the unit register:

(C)

the transfer of units from an overseas registry:

(D)

prohibitions on the transfer of units for the purposes of holding those units in an account in the Registry:

(ii)

the opening or closing of holding accounts:

(c)

prescribing matters in respect of the holding, surrender, conversion, and cancellation of units, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, procedures, or thresholds:

(d)

prescribing matters in respect of the carry-over of assigned amount units, certified emission reduction units, and emission reduction units, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, procedures, or thresholds:

(e)

prescribing procedures, requirements, and other matters in respect of the unit register and its operation, including, but not limited to, matters relating to—

(i)

access to the unit register:

(ii)

the location of the unit register:

(iii)

the hours of access to the unit register:

(iv)

the format of unique numbers to be used in the unit register:

(v)

the allocation of unique serial numbers to New Zealand units and approved overseas units:

(vi)

the exchange of data between—

(A)

the Registry and overseas registries:

(B)

the Registry and the international transaction log:

(vii)

the registration of transactions:

(viii)

the form and content of the unit register:

(f)

prescribing matters in respect of which fees are payable under this Part, the amounts of those fees, and the procedures for payment:

(g)

prescribing procedures, requirements, and other matters in respect of the form, use, and manner of obtaining electronic verification statements to confirm a registration:

(h)

prescribing procedures, requirements, and other matters in respect of searching the unit register, including, but not limited to,—

(i)

the criteria by which a search may be conducted:

(ii)

the method of disclosure:

(iii)

the form of search results:

(iv)

the abbreviations, expansions, or symbols that may be used in search results:

(i)

prescribing forms and notices for the purposes of this Part:

(j)

prescribing, for the purpose of the definition of overseas registry, overseas registries from which and to which units may be transferred to and from accounts in the Registry:

(k)

prescribing the units issued by an overseas registry that may be transferred to accounts in the Registry:

(l)

prescribing procedures for transactions involving approved overseas units:

(m)

prescribing matters in respect of the taking of possession of an emissions unit for the purposes of section 18(1A)(b) of the Personal Property Securities Act 1999:

(n)

in respect of this Part, giving effect to the terms of the Convention and the Protocol, including any decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved in accordance with the Convention or the Protocol:

(o)

providing for the matters that are contemplated by, or necessary for, giving full effect to this Part and for its due administration:

(p)

prescribing matters relating to the powers of the Minister under section 6A to sell New Zealand units by auction, including—

(i)

prescribing the date on which the sale of New Zealand units by auction commences:

(ii)

providing for a pilot auction to be conducted in advance of the date from which sale by auction is to commence:

(iii)

prescribing the persons or classes of persons eligible to participate in an auction of New Zealand units:

(iv)

prescribing penalties for breaches of regulations made under this paragraph:

(v)

prescribing an overall limit in the manner provided for by section 30GA(1):

(vi)

providing for any other matters for the conduct of an auction that the Minister considers relevant to the effective conduct of the auction:

(q)

enabling the Minister to specify 1 or more types of Kyoto unit into which an account holder may apply to convert a New Zealand unit under section 30E, if assigned amount units are not available in a Crown holding account.

(2)

Regulations made under subsection (1) may be made in respect of different units, transactions, persons, classes of units, subclasses of units, classes of transactions, or classes of persons.

(3)

Any regulation made under subsection (1)(b)(i) or (c) does not apply to the transfer of units that are held in an account in the Registry at the time that the regulation comes into force.

(3A)

The amount of fees set under regulations made under subsection (1)(f) must not exceed the amount necessary to enable the recovery of the direct and indirect costs of the Registrar in performing his or her functions under this Part.

(4)

Any regulations made under subsection (1) must be consistent with the Convention and the Protocol.

Section 30G: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30G(1)(p): inserted, on 1 January 2013, by section 16 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 30G(1)(q): inserted, on 1 January 2013, by section 16 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 30G(3A): inserted, on 5 December 2011, by section 9 of the Climate Change Response Amendment Act 2011 (2011 No 15).

30GA Further provisions governing regulations made under section 30G(1)(p)

(1)

If regulations are made under section 30G(1)(p),—

(a)

the Minister must recommend to the Governor-General that those regulations prescribe the overall limit on the number of New Zealand units that may, in any year for a period of 5 years from the date prescribed in the regulations,—

(i)

be allocated; and

(ii)

be sold by auction; and

(iii)

be provided under a negotiated greenhouse agreement; and

(b)

the Minister must, on an annual basis, make a recommendation to the Governor-General that regulations be made that extend the application of the regulations for a further year.

(2)

Before the Minister makes a recommendation to the Governor-General under subsection (1), the Minister must have regard to—

(a)

the matters set out in section 68(2)(b)(i) to (iii) (with any necessary modifications); and

(b)

New Zealand’s projected emission trends; and

(c)

any domestic target to reduce emissions; and

(d)

the number of New Zealand units that are expected to be allocated; and

(e)

the emissions to which the greenhouse gas emissions trading scheme applies; and

(f)

the arrangements that govern the operation of the greenhouse gas emissions trading scheme; and

(g)

the limit, if any, on the number of units that are not New Zealand units that a participant may surrender; and

(h)

any other matters that the Minister considers relevant.

(3)

Before making a recommendation under subsection (1)(a) to amend any regulations that prescribe the overall limit, the Minister must give notice in the Gazette of any proposal to amend the regulations not later than the date that is 1 year before the date when the amended regulations take effect.

(4)

Any change to the overall limit prescribed by regulations made under section 30G(1)(p)(v) must not take effect in the same year as notice of that change is given under subsection (3).

(5)

In prescribing an overall limit on the number of New Zealand units available, the regulations made under section 30G(1)(p)

(a)

must not prevent the number of New Zealand units that may be allocated from exceeding the prescribed overall limit; but

(b)

must provide that no New Zealand units may be auctioned if the prescribed overall limit on the number of New Zealand units available is exceeded.

(6)

In subsections (1)(a)(i) and (5)(a), the reference to New Zealand units allocated does not include—

(a)

New Zealand units transferred in accordance with a determination of the Minister under section 77 or 78 that relates to an allocation under the pre-1990 forest land allocation plan; or

(b)

any requirement for an additional allocation in the circumstances described in section 86C(5)(b).

(7)

To avoid doubt, subsections (3) and (4) do not apply to regulations to which subsection (1)(b) applies.

Section 30GA: inserted, on 1 January 2013, by section 17 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

30GB Further provisions governing regulations made under section 30G(1)(q)

(1)

This section applies if regulations made under section 30G(1)(q) specify that a New Zealand unit may be converted into a type of Kyoto unit other than a designated assigned amount unit.

(2)

The provisions of section 30E apply to a conversion to the type of Kyoto unit specified under those regulations as if a reference to a designated assigned amount unit or an assigned amount unit in that section were a reference to the type of Kyoto unit specified in the regulations.

(3)

A reference to a designated assigned amount unit or an assigned amount unit in sections 27(2)(u)(ii) and 178C(1) must be read as a reference to the type of Kyoto unit specified in the regulations.

(4)

Despite subsection (2), section 30E(5)(a) does not apply if this section applies.

Section 30GB: inserted, on 1 January 2013, by section 17 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

30H Procedure for certain regulations relating to units

(1)

Before making a recommendation under section 30G(1) relating to regulations under section 30G(1)(b)(i), (c), (d), (j), (k), (p), or (q), the Minister must consult, or be satisfied that the chief executive has consulted, the persons (or representatives of those persons) that appear to the Minister or the chief executive likely to be substantially affected by any regulations made in accordance with the recommendation.

(2)

The process for consultation must, to the extent practicable in the circumstances, include—

(a)

giving adequate and appropriate notice of the proposed terms of the recommendation, and of the reasons for it; and

(b)

the provision of a reasonable opportunity for interested persons to consider the recommendation and make submissions; and

(c)

adequate and appropriate consideration of submissions.

(3)

Unless subsection (4) applies or a later date is specified in the regulations, regulations referred to in this section, except regulations made under section 30G(1)(q), come into force 3 months after the date of their notification in the Gazette.

(4)

Subsections (1) and (3) do not apply in respect of any regulations if the Minister considers it is in the national interest that they be made urgently.

(5)

A failure to comply with this section does not affect the validity of regulations made under section 30G(1)(b)(i), (c), (d), (j), (k), (p), or (q).

Section 30H: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30H(1): amended, on 1 January 2013, by section 18(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 30H(3): amended, on 1 January 2013, by section 18(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 30H(5): amended, on 1 January 2013, by section 18(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

30I Incorporation by reference in regulations made under section 30G

(1)

The following written material may be incorporated by reference in regulations made under section 30G:

(a)

decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved by any international or national organisation in accordance with the Convention or the Protocol; and

(b)

any standards, requirements, or recommended practices—

(i)

of any international or national organisation that are adopted, agreed on, made, or approved in accordance with the Convention or the Protocol:

(ii)

prescribed in any country or jurisdiction that are adopted, agreed on, made, or approved in accordance with the Convention or the Protocol.

(2)

Material may be incorporated by reference in regulations—

(a)

in whole or in part; and

(b)

with modifications, additions, or variations specified in the regulations.

(3)

Material incorporated by reference in regulations has legal effect as part of the regulations.

(4)

Sections 170 to 177 apply to material incorporated by reference into regulations under section 30G as though all references to sections 163 to 165, 167, and 168 were references to section 30G and all references to the chief executive were references to the Registrar.

Section 30I: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 30I(1)(b)(ii): amended, on 1 January 2013, by section 19 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

30J Signing false declaration with respect to regulations made under section 30G

Every person who signs a declaration that is required under regulations made under section 30G, knowing the declaration to be false,—

(a)

commits an offence; and

(b)

is liable on conviction to a fine not exceeding $5,000.

Section 30J: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

30K Providing false or misleading information to Registrar

(1)

Every person who knowingly provides false or misleading information to the Registrar commits an offence and is liable on conviction to a fine not exceeding,—

(a)

in the case of an individual, $50,000:

(b)

in the case of a body corporate, $200,000.

(2)

Every person who recklessly provides false or misleading information to the Registrar commits an offence, and is liable on conviction to a fine not exceeding $2,000.

Section 30K: inserted, on 26 September 2008, by section 34 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Part 3 Inventory agency

Part 3 heading: inserted, on 26 September 2008, by section 35 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

31 Meaning of greenhouse gas

For the purposes of this subpart, despite anything in section 4, greenhouse gas means a gas in the earth’s atmosphere that strongly absorbs and re-emits infrared radiation, and includes indirect greenhouse gases, but does not include a gas that is covered by the Montreal Protocol on Substances that Deplete the Ozone Layer.

32 Primary functions of inventory agency

(1)

The primary functions of the inventory agency are to—

(a)

estimate annually New Zealand’s human-induced emissions by sources and removals by sinks of greenhouse gases; and

(b)

prepare the following reports for the purpose of discharging New Zealand’s obligations:

(i)

New Zealand’s annual inventory report under Articles 4 and 12 of the Convention and Article 7.1 of the Protocol, including (but not limited to) the quantities of long-term certified emission reduction units and temporary certified emission reduction units that have expired or have been replaced, retired, or cancelled; and

(ii)

New Zealand’s national communication (or periodic report) under Article 7.2 of the Protocol and Article 12 of the Convention; and

(iii)

New Zealand’s report for the calculation of its initial assigned amount under Article 7.4 of the Protocol, including its method of calculation.

(2)

In carrying out its functions, the inventory agency must—

(a)

identify source categories; and

(b)

collect data by means of—

(i)

voluntary collection; and

(ii)

collection from government agencies and other agencies that hold relevant information; and

(iii)

collection in accordance with regulations made under this Part (if any); and

(c)

estimate the emissions and removals by sinks for each source category; and

(d)

undertake assessments on uncertainties; and

(e)

undertake procedures to verify the data; and

(f)

retain information and documents to show how the estimates were determined.

Section 32(1)(b)(i): amended, on 1 January 2013, by section 20 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 32(1)(b)(i): amended, on 14 November 2006, by section 25 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Section 32(2)(b)(iii): amended, on 26 September 2008, by section 36 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

33 Inventory agency under direction of Minister

(1)

The inventory agency must comply with any direction from the Minister in relation to the performance of its functions under this Part.

(2)

As soon as practicable after giving the direction, the Minister must make a copy of the direction accessible via the inventory agency’s Internet site.

Section 33 heading: amended, on 26 September 2008, by section 37(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(1): amended, on 26 September 2008, by section 37(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(1): amended, on 26 September 2008, by section 37(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(2): amended, on 26 September 2008, by section 37(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 33(2): amended, on 14 November 2006, by section 26 of the Climate Change Response Amendment Act 2006 (2006 No 59).

34 Record keeping

The inventory agency must keep a record of changes that occur from year to year in—

(a)

the collection of data; and

(b)

the use of methodologies and emission factors.

35 Publication

The inventory agency must publish New Zealand’s annual inventory report and its national communication (or periodic report) in electronic form by placing the report on a publicly accessible portion of the inventory agency’s Internet site.

Section 35: substituted, on 1 August 2003, by section 27 of the Climate Change Response Amendment Act 2006 (2006 No 59).

Inspectors

Heading: substituted, on 26 September 2008, by section 38 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

36 Authorisation of inspectors

(1)

The Minister may authorise the following persons, provided that they are suitably qualified and trained, to exercise any or all of the powers of, and carry out any or all of the duties of an inspector under this Part:

(a)

employees of the inventory agency; or

(b)

employees of the Ministry for Primary Industries and employees of any other department of the public service prescribed by regulation; or

(c)

employees of New Zealand Forest Research Institute Limited, Landcare Research New Zealand Limited, New Zealand Pastoral Agriculture Research Institute Limited, and employees of any other Crown Research Institute (within the meaning of the Crown Research Institutes Act 1992) prescribed by regulation; or

(d)

employees of the EPA.

(2)

An authorisation is subject to the terms and conditions that are agreed to by the Minister and the chief executive of the agency that employs the person authorised to be an inspector.

(3)

The Minister must supply an inspector with a warrant of authorisation that clearly states the powers and duties of that inspector.

(4)

An inspector who exercises, or purports to exercise, a power conferred on that inspector under this Part must carry and be able to produce, if required to do so,—

(a)

his or her warrant of authorisation; and

(b)

evidence of his or her identity.

(5)

An inspector who holds a warrant of authorisation issued under this section must, on the termination of that inspector’s authorisation, surrender his or her warrant of authorisation to the Minister.

Section 36(1): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(1): amended, on 26 September 2008, by section 39(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(1)(b): amended, on 1 January 2013, by section 21 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 36(1)(c): amended, on 5 December 2011, by section 10 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 36(1)(d): added, on 5 December 2011, by section 10 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 36(2): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(3): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(4): amended, on 26 September 2008, by section 39(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 36(5): amended, on 26 September 2008, by section 39(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

37 Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases

(1)

For the purposes of collecting information to assist with the estimation of New Zealand’s human-induced emissions by sources and removals by sinks of greenhouse gases, an inspector may, if authorised in writing by the Minister, enter or re-enter land, or premises where any livestock are likely to be held, excluding any dwellinghouse, at any reasonable time during the ordinary hours of business, to—

(a)

carry out surveys, investigations, tests, or measurements (including those that involve leaving measuring equipment on the land or premises):

(b)

take samples of water, air, soil, or organic matter.

(2)

To avoid doubt, the authorisation given by the Minister may be for a series of surveys, investigations, tests, measurements, or samples.

(3)

Reasonable notice, in writing, must be given to the occupier (if any) of the land or premises to be entered that specifies—

(a)

when, and by what means, entry is to be made; and

(b)

the purpose for which entry is required; and

(c)

that the entry is authorised under this section.

(4)

Reasonable effort must be made to give notice under subsection (3) to the owner or owners of the land or premises.

(5)

If the owner or owners are not given notice, reasonable effort must be made to identify any wāhi tapu areas and archaeological sites on the land by other means.

(6)

An inspector who exercises the power of entry under this section may use any assistance that is reasonably necessary to exercise the power.

(7)

A person who provides assistance under subsection (6) may exercise the powers provided to inspectors under subsection (1).

Section 37(1): amended, on 26 September 2008, by section 40 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 37(2): amended, on 26 September 2008, by section 40 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

38 Limitation on power of entry under section 37

The Minister may only authorise an inspector to exercise the power of entry under section 37 if satisfied that the information sought—

(a)

requires specific technical expertise to collect; and

(b)

cannot reasonably be obtained from the occupier or owner of the land or premises.

Section 38: amended, on 26 September 2008, by section 41 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

39 Power of entry for inspection

(1)

An inspector authorised in writing by the inventory agency may enter land or premises (excluding any dwellinghouse) at any reasonable time during the ordinary hours of business, for the purpose of inspection, to determine whether or not a person is complying with regulations made under section 50(2)(a), (c), (e), or (f).

(2)

During an inspection, an inspector may—

(a)

require the production of, inspect, and copy any documents or business records (including electronic documents or records):

(b)

take samples of water, air, soil, or organic matter:

(c)

carry out surveys, investigations, tests, or measurements (including those that involve leaving measuring equipment on the land or premises):

(d)

demand from the occupier any other information that the inspector may reasonably require for the purpose of determining whether or not regulations made under section 50(2)(a), (c), (e), or (f) have been complied with.

(3)

An inspector who exercises the power of inspection under this section must give the occupier or owner reasonable notice of the inspector’s intention to enter the land or premises unless doing so would defeat the purpose of the entry.

(4)

A notice given under subsection (3) must specify—

(a)

when entry is to be made; and

(b)

the purpose for which the entry is required; and

(c)

that the entry is authorised under this section.

(5)

An inspector who exercises the power of inspection under this section may be accompanied by any person or persons reasonably necessary to assist him or her with the inspection.

(6)

A person who provides assistance under subsection (5) may exercise the powers provided to inspectors under subsection (2)(a) to (c).

(7)

Nothing in this section limits the privilege against self-incrimination.

40 Applications for warrants

(1)

A District Court Judge who, on written application made on oath by an inspector authorised by the inventory agency, is satisfied that there are reasonable grounds to believe that there are in or on or under or over any land, premises, or dwellinghouse any documents or other records or things (including samples) for which there are reasonable grounds to believe may be evidence of the commission of an offence under section 46 may issue a warrant authorising the entry and search of that land, premises, or dwellinghouse.

(2)

Every search warrant must authorise the inspector executing the warrant to—

(a)

enter and search the land, premises, or dwellinghouse within 30 working days of the date of the warrant at any time that is reasonable in the circumstances during the ordinary hours of business; and

(b)

require the production, inspection, and copying of documents or business records (including electronic documents or records); and

(c)

demand from the occupier any other information that the inspector may reasonably require for the purpose of determining whether or not the regulations made under section 50(2) have been complied with; and

(d)

seize any documents or business records that the inspector has reasonable cause to suspect may be evidence of the commission of an offence under section 46; and

(e)

take samples of water, air, soil, or organic matter; and

(f)

use any assistance that is reasonably necessary in the circumstances; and

(g)

use any force to enter (whether by breaking doors or otherwise) that is reasonable in the circumstances.

(3)

An inspector may not enter a dwellinghouse unless that inspector is accompanied by a constable.

(4)

A person who provides assistance under subsection (2)(f) may exercise the powers provided to inspectors under subsection (2)(a), (b), (d), (e), and (g).

(5)

Nothing in this section limits the privilege against self-incrimination.

Section 40(3): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

41 Entry of defence areas

Despite anything in sections 37, 39, and 40, an inspector may not enter a defence area (within the meaning of section 2(1) of the Defence Act 1990), except in accordance with a written agreement between the inventory agency and the Chief of Defence Force on the date or dates specified in that agreement.

42 Proof of authority must be produced

If powers are exercised under section 37 or section 39 or section 40, an inspector must, on initial entry, and if asked by the occupier at any time afterward, produce for inspection that inspector’s—

(a)

warrant of authorisation and evidence of his or her identity; and

(b)

written authorisation to enter required under section 37 or section 39 or a search warrant required under section 40.

43 Notice of entry

(1)

If, when powers are exercised under section 37 or section 39 or section 40, the occupier is not present at the time that the written authorisation or search warrant is executed, and notice is not given to the owner or owners under section 37 or section 39, the inspector must, in a prominent place, attach a written notice that shows—

(a)

the date and time of the entry or search; and

(b)

the purpose of the entry or search; and

(c)

the name and phone number of that inspector; and

(d)

an address at which enquiries may be made.

(2)

If the inspector removes, or has removed, any documents or business records from any land, premises, or dwellinghouse, the inspector must hand to the occupier, or attach in a prominent place, a notice that—

(a)

lists all of the items taken; and

(b)

states where those items are being held (and, if they are being held in 2 or more places, state which items are being held in which place); and

(c)

states the procedure that the person must follow to have those items returned.

44 Information obtained under section 39 or section 40 only admissible in proceedings for alleged breach of regulations made under section 50(2)

No document, business record, or other information obtained from a person under section 39 or section 40 is admissible against that person in any criminal or civil proceedings, other than proceedings for an alleged breach of regulations made under section 50(2).

45 Return of items seized

Section 199 of the Summary Proceedings Act 1957 applies, with the necessary modifications, to any property seized or taken by an inspector as if—

(a)

references in that section to a constable were references to an inspector; and

(b)

the reference in that section to section 198 of that Act were a reference to section 39 or section 40 of this Act.

45A Protection of persons acting under authority of this Part

No inspector or person called upon to assist an inspector who does an act or omits to do an act when carrying out a duty, performing a function, or exercising a power conferred on that person by this Part is under any civil or criminal liability in respect of that act or omission unless the person has acted or omitted to act in bad faith or without reasonable cause.

Section 45A: inserted, on 26 September 2008, by section 42 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Offences and penalties

46 Failing to provide required information to inventory agency

Every person who fails, without reasonable excuse, to provide the information to the inventory agency required under regulations made under section 50(2)

(a)

commits an offence; and

(b)

is liable on conviction to a fine not exceeding,—

(i)

in the case of an individual, $5,000; or

(ii)

in the case of a body corporate, $30,000.

47 Obstructing, hindering, resisting, or deceiving person exercising power under Part

Every person—

(a)

commits an offence who—

(i)

wilfully obstructs, hinders, resists, or deceives a person exercising a power conferred on that person under this Part or regulations made under this Part; or

(ii)

wilfully interferes with any survey, investigation, test, or measurement carried out by an inspector under this Part; or

(iii)

refuses to provide information that an inspector has demanded from that person under section 39(2)(d) or section 40(2)(c), except on the grounds of self-incrimination; and

(b)

is liable on conviction to a fine not exceeding,—

(i)

in the case of an individual, $5,000; or

(ii)

in the case of a body corporate, $30,000.

Section 47 heading: amended, on 26 September 2008, by section 43(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 47(a)(i): amended, on 26 September 2008, by section 43(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 47(a)(ii): amended, on 26 September 2008, by section 43(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

48 Signing false declaration in respect of regulations made under section 50

Every person who signs a declaration that is required by regulations made under section 50, knowing the declaration to be false,—

(a)

commits an offence; and

(b)

is liable on conviction to a fine not exceeding $5,000.

Section 48 heading: amended, on 26 September 2008, by section 44 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

48A Providing false or misleading information to Registrar
[Repealed]

Section 48A: repealed, on 26 September 2008, by section 45 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Miscellaneous provisions

49 Reporting

For the purpose of reporting to the Secretariat under the Convention and the Protocol, the Minister may, as and when the Minister thinks fit, direct the inventory agency or the Registrar to provide reports and information to the Minister or directly to the Secretariat.

Section 49: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

50 Regulations

(1)

The Governor-General may, by Order in Council, make regulations for any or all of the following purposes:

(a)
[Repealed]

(b)

prescribing agencies whose employees may act as inspectors under section 36, being—

(i)

a Department of the Public Service listed in Schedule 1 of the State Sector Act 1988; or

(ii)

a Crown Research Institute within the meaning of the Crown Research Institutes Act 1992:

(c)
[Repealed]

(ca)
[Repealed]

(d)
[Repealed]

(e)
[Repealed]

(f)
[Repealed]

(g)
[Repealed]

(h)
[Repealed]

(i)

prescribing forms and notices for the purposes of this Part:

(j)

for the purposes of, and subject to, Part 2, giving effect to the terms of the Convention and the Protocol, including any decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved in accordance with the Convention or the Protocol:

(k)

providing for the matters that are contemplated by, or necessary for, giving full effect to this Part and for its due administration.

(2)

If recommended by the Minister, the Governor-General may, by Order in Council, make regulations requiring persons to keep and provide information to the inventory agency for the purpose of estimating New Zealand’s human-induced emissions by sources and removals by sinks of greenhouse gases on any or all of the following:

(a)

emissions of greenhouse gases into the atmosphere from industrial or trade premises:

(b)

volumes of fuel produced, distributed, sold, or used, and the nature of the use of that fuel:

(c)

industrial processes, including by-products from industrial processes:

(d)

composition of vehicle fleets and use of vehicles, including, but not limited to, distances travelled:

(e)

imports and exports of hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride:

(f)

imports, exports, manufacture, sales, and the nature of the use of products that contain hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride:

(fa)

the registration of motor vehicles of each class that have air-conditioning systems that contain hydrofluorocarbons or perfluorocarbons:

(g)

waste composition and weight, dimensional characteristics of landfills, and volume of landfill gases extracted and combusted:

(h)

numbers of ruminants and other farmed livestock and their performance:

(i)

areas of crops and amounts produced:

(j)

amount of nitrogenous and lime fertilisers used:

(k)

native and planted trees, the amount of harvesting, the area of land in scrub, and the area of land in other land uses that are necessary to determine land use change under the Convention or the Protocol.

(3)

If recommended by the Minister, the Governor-General may, by Order in Council, make regulations requiring persons to provide to the inventory agency information that the person holds on any matter specified in subsection (2) for any year from 1989 to the current reporting year.

(4)

Regulations made under subsection (2) may specify the manner and form in which records must be kept and provided, including specifying that those records must be declared as true, the form of that declaration, and who must sign that declaration.

(5)

Regulations made under subsection (1) or (2) may be made in respect of different persons or classes of persons.

(6)

For the purposes of subsection (5), classes of persons includes local authorities.

(7)

Any regulations made under this section must be consistent with—

(a)

this Act; and

(b)

the Convention; and

(c)

(8)

The Governor-General may, by Order in Council, make regulations—

(a)

amending Schedule 1 by making any amendments to the text of the Convention set out in that schedule as are required to bring the text up to date:

(b)

revoking Schedule 1 and substituting a new schedule setting out in an up-to-date form the text of the Convention:

(c)

amending Schedule 2 by making any amendments to the text of the Protocol set out in that schedule as are required to bring the text up to date:

(d)

revoking Schedule 2 and substituting a new schedule setting out in an up-to-date form the text of the Protocol.

Section 50(1)(a): repealed, on 26 September 2008, by section 47(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(c): repealed, on 26 September 2008, by section 47(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(ca): repealed, on 26 September 2008, by section 47(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(d): repealed, on 26 September 2008, by section 47(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(e): repealed, on 26 September 2008, by section 47(5) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(f): repealed, on 26 September 2008, by section 47(6) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(g): repealed, on 26 September 2008, by section 47(7) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(h): repealed, on 26 September 2008, by section 47(8) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(i): amended, on 26 September 2008, by section 47(9) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(1)(k): amended, on 26 September 2008, by section 47(10) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(2): amended, on 26 September 2008, by section 47(11) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(2)(fa): inserted, on 1 January 2013, by section 22(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 50(2)(k): amended, on 1 January 2013, by section 22(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 50(3): amended, on 26 September 2008, by section 47(11) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(5): substituted, on 26 September 2008, by section 47(12) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 50(8): added, on 8 December 2009, by section 21 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

51 Incorporation by reference in regulations made under section 50

(1)

The following written material may be incorporated by reference in regulations made under section 50:

(a)

decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved by any international or national organisation in accordance with the Convention or the Protocol; and

(b)

any standards, requirements, or recommended practices—

(i)

of any international or national organisation that are adopted, agreed on, made, or approved in accordance with the Convention or the Protocol:

(ii)

prescribed in any country or jurisdiction that are adopted, agreed on, made, or approved in accordance with the Convention or the Protocol.

(2)

Material may be incorporated by reference in regulations—

(a)

in whole or in part; and

(b)

with modifications, additions, or variations specified in the regulations.

(3)

Material incorporated by reference in regulations has legal effect as part of the regulations.

(4)

Sections 170 to 177 apply to material incorporated by reference into regulations under section 50 as though all references to sections 163 to 165, 167, and 168 were references to section 50 and all references to the chief executive were references to the inventory agency.

Section 51: substituted, on 26 September 2008, by section 48 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 51(1)(b)(ii): amended, on 1 January 2013, by section 23 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

52 Inventory agency must report to Minister on certain matters before certain regulations are made

(1)

Before regulations are made under section 50(2) or (3), the inventory agency must provide a report to the Minister on—

(a)

whether or not the information to be collected under the regulations is reasonably available to the inventory agency by other means, including, but not limited to,—

(i)

voluntary collection; or

(ii)

collection from a government agency that holds the information (provided that the release of the information by that government agency complies with the principles of the Privacy Act 1993 and any provisions of the enactment under which the information was collected); and

(b)

any deficiencies with collecting the information using those other means, including, but not limited to,—

(i)

deficiencies in obtaining the required quality of information; and

(ii)

the lack of certainty that all the required information can be provided; and

(c)

whether or not the regulations are likely to place a disproportionate burden on any particular group of persons.

(2)

When preparing a report under subsection (1), the inventory agency must consult any person or government agency that is likely to be affected by the proposed regulations.

(3)

With respect to a report prepared under subsection (1), the Minister

(a)

must have regard to the report and to the results of consultation; and

(b)

may make, as he or she thinks fit, recommendations to the Governor-General to make regulations under section 50(2) or (3).

(4)

The Minister may not recommend the making of regulations under section 50(2) and (3) unless he or she is satisfied, on reasonable grounds, that the regulations are necessary to assist New Zealand to meet its obligations under the Convention or the Protocol.

Section 52 heading: amended, on 26 September 2008, by section 49(1) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 52(1): amended, on 26 September 2008, by section 49(2) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 52(3): amended, on 26 September 2008, by section 49(3) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 52(4): amended, on 26 September 2008, by section 49(4) of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

53 Consequential amendments

Amendment(s) incorporated in the Act(s).

Part 4 New Zealand greenhouse gas emissions trading scheme

Part 4: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Subpart 1—Participants

Subpart 1: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

54 Participants

(1)

A person is a participant,—

(a)

in respect of an activity listed in Schedule 3, if the person—

(i)

is required under section 180, 204, or 213 to be treated as the person carrying out the activity; or

(ii)

if subparagraph (i) does not apply, carries out the activity; and

(b)

in relation to an activity listed in Schedule 4, if the person—

(i)

carries out the activity, is registered as a participant under section 57 in respect of the activity, and that registration has taken effect; or

(ii)

becomes a participant under section 192 in respect of the activity and is not removed from the register in respect of that activity.

(2)

Any reference in this Part or Part 5 to a person or participant carrying out an activity must be read as referring to the person who is to be treated under section 180, 204, or 213 as carrying out the activity, or if those sections do not apply, to the person or participant carrying out the activity.

(3)

Subsection (1)(a) is subject to any exemption under an Order in Council made under section 60.

(4)

A person who was a participant under subsection (1) continues to be a participant for the purposes of this Act in respect of any obligations (including, but not limited to, the obligation to retain records in accordance with section 67), or entitlements under section 64, arising in respect of an activity listed in Schedule 3 or 4 that the person carried out while a participant.

(5)

The EPA must ensure that the registers, or the information contained in the registers, kept for the purposes of section 56 or 57 are open for public inspection, without fee, on the EPA’s Internet site and in any other form the EPA considers appropriate.

Section 54: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 54(1)(a)(i): amended, on 8 December 2009, by section 22(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(1)(b)(ii): amended, on 8 December 2009, by section 22(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(2): amended, on 8 December 2009, by section 22(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(4): amended, on 8 December 2009, by section 22(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 54(5): substituted, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

55 Associated persons

(1)

This section applies if an activity listed in Schedule 3 has a threshold below or above which a person becomes a participant.

(2)

If this section applies, persons who are associated persons are to be treated as 1 person for the purpose of determining whether the threshold is met.

(3)

If a threshold for an activity listed in Schedule 3 is met by associated persons, each of the associated persons—

(a)

is to be treated as carrying out the activity for the purposes of this Act; and

(b)

may elect to comply with this Part and Part 5 as a—

(i)

participant in relation to the activity; or

(ii)

member of an unincorporated body; or

(iii)

member of a consolidated group under section 150, if the associated person qualifies to be a member of a consolidated group.

Section 55: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 55(3)(b)(ii): substituted, on 8 December 2009, by section 23(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 55(3)(b)(iii): amended, on 8 December 2009, by section 23(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

56 Registration as participant in respect of activities listed in Schedule 3

(1)

A person who carries out an activity listed in Schedule 3 must—

(a)

notify the EPA that the person is a participant in respect of the activity; and

(b)

if the person does not already have a holding account—

(i)

apply to open a holding account under section 18A at the time the person notifies the EPA under paragraph (a); and

(ii)

supply the account number of the holding account, or ensure that the account number of the holding account is supplied, to the EPA within 10 working days of receiving the account number from the Registrar.

(2)

A notice under subsection (1)(a) must—

(a)

be submitted to the EPA within 20 working days of the person becoming a participant in respect of the activity; and

(b)

be in the prescribed form; and

(c)

contain—

(i)

the name of the person; and

(ii)

the details of the activity that the person carries out; and

(iii)

any other information that the EPA may require; and

(iv)

if the person already has 1 or more holding accounts, the account number of the holding account that the person wishes to use for the purpose of section 61(1).

(3)

The EPA must, as soon as practicable after receiving a notice under subsection (1)(a),—

(a)

enter on a register kept by the EPA for the purpose of this section—

(i)

the name of the person; and

(ii)

the activity that the person carries out; and

(b)

notify the person that the person’s name and the activity the person carries out have been entered on the register.

(4)

If the EPA receives a notice under subsection (1)(a) from a person whose name is already on the register kept in accordance with subsection (3), the EPA need not re-enter the person’s name on the register, but must enter next to the person’s name the activity that is specified in the notice, and notify the person that the activity has been entered on the register next to the person’s name.

Section 56: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 56(1)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(1)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(1)(b)((ii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(2)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(2)(c)(iii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(3)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 56(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

57 Applicant to be registered as participant in respect of activities listed in Schedule 4

(1)

A person who carries out an activity listed in Schedule 4, or who will do so at the time that the person’s registration takes effect, may apply to be registered as a participant in respect of the activity by application to the EPA in accordance with subsection (2).

(2)

An application under subsection (1) must—

(a)

be in the prescribed form; and

(b)

be accompanied by—

(i)

any information that the EPA may require; and

(ii)

the prescribed fee (if any); and

(c)

if the person already has 1 or more holding accounts, contain the account number of the holding account that the person wishes to use for the purpose of section 61(1).

(3)

Any person who does not have a holding account at the time the person submits an application under subsection (1) must—

(a)

apply to open a holding account under section 18A at the time the person submits the application; and

(b)

supply the account number of the holding account to the EPA within 10 working days of receiving an account number from the Registrar.

(4)

Following the receipt of an application under subsection (1), the EPA must register the person in accordance with subsections (5) and (7) if satisfied that the person—

(a)

in respect of the activity listed in Schedule 4 specified in the application—

(i)

is carrying out the activity in the year in which the EPA receives the application; or

(ii)

will carry out the activity in the year in which the person’s registration will take effect in accordance with subsection (8); and

(b)

has met any conditions of registration in respect of the activity in this Part or Part 5; and

(ba)

has met any eligibility criteria prescribed in relation to the activity; and

(c)

has paid any prescribed fees or charges.

(5)

The EPA registers a person by entering on a register kept by the EPA for the purpose of this section—

(a)

the name of the applicant; and

(b)

the activity carried out by the applicant; and

(c)

the date from which the applicant’s registration as a participant in respect of the activity will take effect in accordance with subsection (8).

(6)

After registering a person under subsection (5), the EPA must notify the following persons that the person has been registered as a participant in respect of the activity and the date from which the registration will take effect:

(a)

the applicant; and

(b)

by notice issued on the same date as the notice to the applicant, any other persons required to be notified under section 188(6)(a), 198(2)(a), or 209(2)(a), as the case may require.

(7)

If the EPA receives an application under subsection (1) in respect of an activity listed in Part 2, 3, or 4 of Schedule 4, then the EPA must, within 20 working days of receiving the application,—

(a)

decline the application; or

(b)

register the applicant under subsection (5), unless the EPA requires further information from the applicant in order to satisfy himself or herself that the person is carrying out the activity specified in the application, in which case the EPA must either register the person within 20 working days of receiving the further information or decline the application.

(8)

The registration of a person takes effect from the date the person’s name is entered on the register under subsection (5) or any later date required by section 198(2)(b), or 209(2)(b).

(9)

If the EPA receives an application under subsection (1) from a person whose name is already on the register kept in accordance with subsection (5), and registers the person in respect of the activity specified in the application, the EPA need not re-enter the person’s name on the register, but must enter next to the person’s name the activity that is specified in the application, and notify the person that the activity has been entered on the register next to the person’s name.

Section 57: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 57 heading: amended, on 1 January 2013, by section 24(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 57(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(2)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(3)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(4)(a)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(4)(b): amended, on 8 December 2009, by section 24(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(4)(ba): inserted, on 1 January 2013, by section 24(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 57(4)(c): added, on 8 December 2009, by section 24(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(5): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(6): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(6)(b): amended, on 8 December 2009, by section 24(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(7): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(7): amended, on 8 December 2009, by section 24(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(7)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 57(8): amended, on 8 December 2009, by section 24(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 57(9): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

58 Removal from register of participants in respect of activities listed in Schedule 4

(1)

A person who is registered under section 57 as a participant in respect of an activity listed in Schedule 4 may apply to have that person’s name removed from the register in respect of the activity by application to the EPA in accordance with subsection (2).

(2)

An application under subsection (1) must—

(a)

be in the prescribed form; and

(b)

be accompanied by the prescribed fee (if any).

(3)

Following receipt of an application under subsection (1), the EPA must—

(a)

note on the register—

(i)

that the applicant has applied to be removed from the register as a participant in respect of the activity; and

(ii)

the date on which the applicant’s name is to be removed in accordance with subsection (4); and

(b)

notify the applicant of the date on which the applicant’s name was, or is to be, removed from the register in accordance with subsection (4); and

(c)

notify, by notice issued on the same date as the notice to the applicant under paragraph (b), any other persons required to be notified under section 188(7)(a)(i), 198(3)(a), or 209(3)(a), as the case may require,—

(i)

that the applicant has applied to have the applicant’s name removed from the register as a participant in respect of the activity; and

(ii)

the date that the applicant’s name was, or is to be, removed in accordance with subsection (4).

(4)

The EPA must remove the name of an applicant under subsection (1) from the register in respect of the activity specified in the application immediately or on any later date required by section 188(7)(a)(ii), 198(3)(b), or 209(3)(b).

Section 58: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 58(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 58(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 58(3)(c): amended, on 8 December 2009, by section 25(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 58(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 58(4): amended, on 8 December 2009, by section 25(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

59 Removal from register of participants in respect of activities listed in Schedules 3 and 4

(1)

A person who is registered under section 56 or 57 in respect of an activity listed in Schedule 3 or 4 must notify the EPA as soon as practicable if the person ceases, or will cease, to carry out the activity for the remainder of the year and the whole of the following year.

(2)

The EPA must, after receiving notice under subsection (1), or otherwise being satisfied that the person has ceased to carry out the activity for the remainder of the year and the whole of the following year,—

(a)

remove the name of the person from the register in respect of the activity immediately or, if the notice specifies that the person will cease the activity on a future date, on that date; and

(b)

notify the person, and any other person specified in section 188(7)(a)(i), 198(3)(a), or 209(3)(a), as the case may require, that the person’s name—

(i)

has been removed from the register in respect of the activity; or

(ii)

if the person’s name will be removed from the register in respect of the activity on a future date, that the person’s name will be removed from the register in respect of the activity on that date.

(3)

This section is subject to sections 200 and 211.

Section 59: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 59(1): amended, on 1 January 2013, by section 25 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 59(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 59(2): amended, on 1 January 2013, by section 25 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 59(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 59(2)(b): amended, on 8 December 2009, by section 26(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 59(3): amended, on 8 December 2009, by section 26(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

60 Exemptions in respect of activities listed in Schedule 3

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt any person or class of persons carrying out an activity listed in Schedule 3 from being a participant under this Act in respect of—

(a)

the activity; or

(b)

part of the activity; or

(c)

a proportion of the emissions from the activity; or

(d)

a combination of the matters specified in paragraphs (a) to (c).

(1A)

An Order in Council made under subsection (1) may specify any terms and conditions (including, but not limited to, terms and conditions imposing geographical or operational restrictions) that the Governor-General thinks fit.

(2)

Before recommending the making of an order under subsection (1), the Minister must be satisfied that—

(a)

the order will not materially undermine the environmental integrity of the greenhouse gas emissions trading scheme established under this Act; and

(b)

the costs of making the order do not exceed the benefits of making the order.

(3)

In determining whether to recommend the making of an order under subsection (1), the Minister must have regard to the following matters:

(a)

the need to maintain the environmental integrity of the greenhouse gas emissions trading scheme established under this Act; and

(b)

the desirability of minimising any compliance and administrative costs associated with the greenhouse gas emissions trading scheme established under this Act; and

(c)

the relative costs of giving the exemption or not giving it, and who bears the costs; and

(d)

any alternatives that are available for achieving the objectives of the Minister in respect of giving the exemption; and

(e)

any other matters the Minister considers relevant.

(4)

While an order made under this section is in force, any person or class of persons in respect of whom the order is made is not required to comply with the obligations imposed on participants under this Part and Part 5 in respect of the matters covered by the order.

(5)

Before recommending the making or revocation of an order under this section, the Minister must—

(a)

consult with persons that the Minister considers are likely to be substantially affected by the making of the order; and

(b)

give those persons the opportunity to make submissions; and

(c)

consider those submissions.

(6)

Despite anything in subsection (2) or (3), the Minister may make a recommendation for the making of an order under subsection (1) in respect of a person with whom the Crown has signed a negotiated greenhouse agreement if—

(a)

the negotiated greenhouse agreement was signed before 31 December 2005; and

(b)

the order relates to an activity of the person that is covered by the negotiated greenhouse agreement; and

(c)

the order is in force for a period not exceeding the term of the negotiated greenhouse agreement, including any extension of the term made in accordance with the agreement.

(7)

The Minister is not required to comply with subsection (5) before recommending the making of an order under subsection (1) in respect of a person with whom the Crown has signed a negotiated greenhouse agreement.

(8)

A failure to comply with subsection (5) does not affect the validity of any order made.

Section 60: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 60(1)(a): amended, on 8 December 2009, by section 27(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1)(b): amended, on 8 December 2009, by section 27(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1)(c): amended, on 8 December 2009, by section 27(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(1A): inserted, on 8 December 2009, by section 27(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 60(2)(b): amended, on 8 December 2009, by section 27(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

61 Requirement to have holding account

(1)

A participant or an eligible person must have a holding account for the purpose of—

(a)

surrendering units or repaying units as required under this Part or Part 5:

(b)

receiving New Zealand units to which the participant or eligible person is entitled under this Part or Part 5.

(2)

Despite anything in subsection (1), a person who does not have a holding account at the time the person becomes a participant complies with subsection (1) if the person complies with section 56(1)(b) or 57(3), as the case may require.

(3)

Despite anything in this Act, the Registrar must, subject to section 18A(5), open a holding account in the name of—

(a)

a person—

(i)

who applies to open a holding account in accordance with section 56(1)(b) or 57(3); and

(ii)

whose name has been entered on a register kept for the purposes of section 56 or 57; or

(b)

an eligible person.

Section 61: substituted, on 8 December 2009, by section 28 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

62 Monitoring of emissions and removals

A participant must, in respect of each activity listed in Schedule 3 or 4 that is carried out by the participant in a year,—

(a)

collect the prescribed data or other prescribed information (which data or information must, if required by regulations made under this Act, be verified by a person or organisation recognised by the EPA under section 92); and

(b)

calculate the emissions and the removals from the activity in accordance with the methodologies prescribed in regulations made under this Act; and

(c)

if required by regulations made under this Act, have the calculations verified by a person or organisation recognised by the EPA under section 92; and

(d)

keep, in the prescribed format (if any), records of the data or information and calculations.

Section 62: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 62(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 62(c): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 62(d): substituted, on 8 December 2009, by section 29 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

63 Liability to surrender units to cover emissions

(1)

A participant is liable to surrender 1 unit for each whole tonne of emissions from each activity listed in Schedule 3 or 4 that the participant carries out,—

(a)

as calculated in accordance with this Act; and

(b)

at the times required under this Act.

(2)

If a participant is liable to surrender units under this Act, the participant must make an application under section 18C to transfer the required number of units from the participant’s holding account to a surrender account designated by the EPA.

(3)

Subsection (1) is subject to section 191(1)(c).

Section 63: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 63(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 63(3): inserted (with effect on 16 May 2014), on 20 May 2014, by section 4 of the Climate Change Response (Unit Restriction) Amendment Act 2014 (2014 No 30).

63A Modification of liability to surrender units to cover certain emissions

(1)

This section applies to a person who—

(a)

carries out an activity listed in any of Parts 2 to 6 of Schedule 3; or

(b)

is a participant in relation to an activity listed in Part 3 or 4 of Schedule 4.

(2)

Despite anything in this Act, a person to whom this section applies is only liable to surrender, and may only surrender, 1 unit for each 2 whole tonnes of emissions from the activity.

Section 63A: inserted, on 1 January 2013, by section 26 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

64 Entitlement to receive New Zealand units for removal activities

(1)

A participant is entitled to receive 1 New Zealand unit for each whole tonne of removals from the participant’s removal activities, as calculated in accordance with this Act.

(2)

If a participant submits an emissions return to the EPA that contains an assessment of the participant’s entitlement to receive New Zealand units, then the EPA must, within 20 working days of receiving the emissions return, direct the Registrar to transfer the number of New Zealand units contained in the assessment to the participant’s holding account.

(3)

Subsection (2) does not apply if, within 20 working days of the EPA receiving the emissions return, the EPA or an enforcement officer serves notice on the participant under section 94 requiring the participant to provide information in respect of any matter contained in the emissions return.

(4)

[Repealed]

(5)

[Repealed]

Section 64: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 64(2): substituted, on 8 December 2009, by section 30 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 64(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 64(3): substituted, on 8 December 2009, by section 30 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 64(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 64(4): repealed, on 8 December 2009, by section 30 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 64(5): repealed, on 8 December 2009, by section 30 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

64A Modification of entitlement to receive New Zealand units for removal activities

(1)

This section applies to a person who—

(a)

is a participant in respect of an activity listed in Part 2 of Schedule 4; and

(b)

is entitled to receive New Zealand units under section 64.

(2)

Despite section 64, a participant to whom this section applies is entitled to receive only 1 New Zealand unit for each 2 whole tonnes of removals from the activity.

Section 64A: inserted, on 1 January 2013, by section 27 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

65 Annual emissions returns

(1)

In the period beginning on 1 January and ending on 31 March in each year, a participant—

(a)

must submit an annual emissions return to the EPA in respect of each of the activities listed in Schedule 3 or Part 2, 3, or 4 of Schedule 4 that the participant carried out in the immediately preceding year:

(b)

must, in the case where approval for the participant’s offsetting forest land application is treated as revoked under section 186D(2) or is revoked under section 186G(1), submit an annual emissions return to the EPA in respect of the activity listed in Part 1 of Schedule 3 that the participant carried out that covers the period—

(i)

beginning when the activity first occurred; and

(ii)

ending on the date that the revocation occurred.

(1A)

For the purposes of the annual emissions return, the activity carried out in the period specified in subsection (1)(b) is to be treated as if it were carried out in the immediately preceding year.

(2)

The annual emissions return must, in respect of activities that the participant carried out during the year covered by the return,—

(a)

record the participant’s activities; and

(b)

record the participant’s emissions and removals as calculated and, if required, as verified under section 62(b) and (c); and

(c)

contain an assessment of the participant’s—

(i)

liability to surrender units in respect of the participant’s emissions; and

(ii)

entitlement to receive New Zealand units for the participant’s removals; and

(d)

be accompanied by such other information as may be prescribed; and

(e)

be accompanied by the prescribed fee (if any); and

(f)

be signed by the participant.

(2A)

If section 186E(1) applies,—

(a)

subsection (2)(b) and (c) do not apply; and

(b)

the annual emissions return must record the emissions for the relevant pre-1990 forest land under section 186D(3)(c) as emissions of the participant for an activity listed in Part 1A of Schedule 3 for which the participant is liable to surrender units.

(3)

The participant must submit the annual emissions return under subsection (1) by submitting it in the prescribed manner and format.

(4)

Following the submission of an annual emissions return under subsection (1), a participant must, by 31 May, surrender the number of units listed in the participant’s assessment under subsection (2)(c)(i) or recorded under subsection (2A)(b).

(5)

A participant who carries out an activity listed in Part 1 of Schedule 4 must submit emissions returns as set out in section 189(2).

Section 65: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 65(1): replaced, on 1 January 2013, by section 28(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 65(1A): inserted, on 1 January 2013, by section 28(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 65(2A): inserted, on 1 January 2013, by section 28(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 65(4): amended, on 1 January 2013, by section 28(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 65(4): amended, on 8 December 2009, by section 31(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

66 Quarterly returns for other removal activities

(1)

Despite anything in this Act, a person who is a participant in respect of an activity listed in Part 2 of Schedule 4 may, within 20 working days after the following dates, submit an emissions return that complies with subsection (2):

(a)

31 March:

(b)

30 June:

(c)

30 September.

(2)

An emissions return referred to in subsection (1) must—

(a)

only relate to activities listed in Part 2 of Schedule 4 in respect of which the person is a participant; and

(b)

in respect of each activity covered by the return, be in respect of the period—

(i)

commencing on the later of—

(A)

the day the person became a participant in respect of the activity; or

(B)

the day after the end of the period covered by the participant’s last emissions return in respect of the activity; and

(ii)

ending on a date specified in subsection (1); and

(c)

contain the information specified in section 65(2) in respect of the period covered by the return; and

(d)

be submitted in accordance with section 65(3).

(3)

Despite anything in section 65, the annual emissions return of a participant who has submitted a return for an activity under this section in any year must cover only the part of the year not covered by a return under this section.

Section 66: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

67 Retention of emissions records

(1)

A participant must keep sufficient records to enable the EPA to verify, in respect of any year in which the participant carries or carried out an activity listed in Schedule 3 or 4,—

(a)

the activities carried out by the participant; and

(b)

the emissions and removals from those activities as calculated and, if required, as verified under section 62(b) and (c); and

(c)

the participant’s assessment of the participant’s—

(i)

liability to surrender units; and

(ii)

entitlement to receive New Zealand units; and

(d)

any other information contained in an emissions return submitted by the participant.

(2)

The records specified in subsection (1) must—

(a)

include the records specified in section 62(d); and

(b)

in the case where they relate to an activity listed in Part 1 of Schedule 3 or 4, be retained for a period of at least 20 years after the end of the year to which they relate; and

(c)

in every other case, be retained for a period of at least 7 years after the end of the year to which they relate.

Section 67: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 67(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Subpart 2—Issuing and allocating New Zealand units

Subpart 2 heading: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

68 Issuing New Zealand units

(1)

The Minister may, at any time, direct the Registrar to issue New Zealand units into a Crown holding account.

(2)

Before giving a direction, the Minister must—

(a)

consult the Minister of Finance; and

(b)

have regard to the following matters:

(i)

the number of units that New Zealand has received, or that the Minister expects New Zealand to receive, under any international agreement; and

(ii)

New Zealand’s international obligations, including any obligation to retire units equal to the number of tonnes of emissions that are emitted in New Zealand; and

(iii)

the proper functioning of the greenhouse gas emissions trading scheme established under this Act; and

(iv)

any other matters that the Minister considers relevant; and

(c)

if the direction under subsection (1) relates to issuing New Zealand units into a Crown holding account on or after 1 January 2013, and if there is no subsequent commitment period specified or determined under the Protocol or no successor international agreement to the Protocol, have regard to the following matters:

(i)

New Zealand’s annual emissions for the 5 years (on record) before the year of the direction under consideration; and

(ii)

the report of the most recent review completed under section 160(1); and

(iii)

New Zealand’s obligations under the Convention (if any); and

(iv)

New Zealand’s anticipated future international obligations.

(3)

The Registrar must give effect to a direction given by the Minister under subsection (1).

(4)

As soon as practicable after giving a direction under subsection (1), the Minister must—

(a)

publish a copy of the direction in the Gazette; and

(b)

ensure that the direction is accessible via the Internet site of the EPA; and

(c)

present a copy of the direction to the House of Representatives.

(5)

Each copy of the direction under subsection (4) must be accompanied by a statement setting out how the Minister has had regard to the matters specified in subsection (2)(b) and, if relevant, subsection (2)(c).

Section 68: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 68(4)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

69 Notification of intention regarding New Zealand units

(1)

The Minister must give notice in the Gazette of the Crown’s intentions to issue and allocate or sell New Zealand units at least 9 months before the end of each of the following periods:

(a)

the first commitment period:

(b)

each subsequent commitment period (if any):

(c)

if there is no subsequent commitment period, then—

(i)

the 5-year period commencing on 1 January 2013:

(ii)

each subsequent 5-year period after the period specified in subparagraph (i).

(2)

The notice must include—

(a)

the number of New Zealand units that are intended to be issued under section 68; and

(b)

the time frames for issuing the New Zealand units under section 68; and

(c)

the intended time frame for any allocation of New Zealand units, or the sale of New Zealand units and the method of sale.

(3)

The Minister must present a copy of the report under section 160(7)(b) to the House of Representatives before notice may be given under this section.

(4)

The Minister must ensure that a copy of any notice given under subsection (1) is accessible via the Internet site of the EPA.

(5)

The Crown is not bound by any notice given under subsection (1) to make any decisions in relation to the issuing, sale, or allocation of New Zealand units.

Section 69: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 69(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Allocation of New Zealand units in relation to pre-1990 forest land and fishing

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

70 Governor-General may issue allocation plans

(1)

The Governor-General may, by Order in Council made on the recommendation of the Minister, issue an allocation plan providing for the matters in section 72 or 74.

(2)

The allocation plan must—

(a)

comply with any relevant requirements specified in this subpart; and

(b)

be presented to the House of Representatives as soon as practicable after it is issued, along with, in the case of the fishing allocation plan, the report provided to the Minister under section 76(5) and any of the Minister’s decisions on the recommendations contained in the report.

(3)

An allocation plan comes into force on the day after the date it is presented to the House of Representatives.

(4)

An allocation plan is a legislative instrument and a disallowable instrument for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.

Section 70: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 70(4): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

71 Correction of allocation plans

(1)

For the purpose of correcting any minor mistakes or defects in an allocation plan, the Minister may, without complying with section 75 or 76, recommend that the Governor-General amend any allocation plan.

(2)

An amended allocation plan comes into force at the time it is issued.

(3)

Section 70(2)(b) and (3) do not apply to an amended allocation plan.

Section 71: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

72 Allocation in respect of pre-1990 forest land

(1)

The Minister must recommend to the Governor-General that an allocation plan be issued under section 70 in respect of pre-1990 forest land.

(2)

The pre-1990 forest land allocation plan must provide for—

(a)

an allocation of New Zealand units to—

(i)

landowners, or former landowners, of eligible land who are eligible persons; or

(ii)

a person appointed in accordance with section 73 to hold any New Zealand units allocated in respect of the eligible land specified in paragraph (b)(i)(A); and

(b)

an allocation of New Zealand units of—

(i)

18 New Zealand units for each hectare of eligible land that was Crown forest licence land on 1 January 2008 and—

(A)

will not have been transferred to iwi as part of a Treaty of Waitangi settlement by the date on which the allocation plan is issued; or

(B)

has been, or will have been, transferred to iwi as part of a Treaty of Waitangi settlement either on or after 1 January 2008 but before the date on which the allocation plan is issued:

(ii)

39 New Zealand units for each hectare of eligible land, other than land covered by subparagraph (i) that was transferred to the landowner, or former landowner, of the land—

(A)

after 31 October 2002; or

(B)

before 1 November 2002 if, since that date, ownership (including, if specified in the allocation plan, the beneficial ownership) of any body corporate owning the land or, if specified in the allocation plan, the beneficial ownership of the land owned by a body corporate, has changed in the manner and to the extent specified in the allocation plan:

(iii)

60 New Zealand units for each hectare of eligible land not covered in subparagraph (i) or (ii).

(3)

The pre-1990 forest land allocation plan must provide that the New Zealand units allocated under the plan will be transferred so that—

(a)

a person allocated 18 units for each hectare of eligible land in accordance with subsection (2)(b)(i) receives—

(i)

7 units for each hectare of eligible land by 31 December 2012; and

(ii)

11 units for each hectare of eligible land after 31 December 2012; and

(b)

a person allocated 39 units for each hectare of eligible land in accordance with subsection (2)(b)(ii) receives—

(i)

15 units for each hectare of eligible land by 31 December 2012; and

(ii)

24 units for each hectare of eligible land after 31 December 2012; and

(c)

a person allocated 60 units for each hectare of eligible land in accordance with subsection (2)(b)(iii) receives—

(i)

23 units for each hectare of eligible land by 31 December 2012; and

(ii)

37 units for each hectare of eligible land after 31 December 2012.

(4)

In addition to the matters provided for in subsections (2) and (3), the pre-1990 forest land allocation plan—

(a)

must specify—

(i)

the landowners, or former landowners, of the eligible land who are eligible persons; and

(ii)

the manner in which, and the extent to which, the ownership of eligible land must have changed to constitute a “transfer” for the purposes of subsection (2)(b)(ii)(A) or (B); and

(iii)

the circumstances, if any, in which a transfer for the purposes of subsection (2)(b)(ii) includes transmission; and

(iv)

the manner in which, and the extent to which, the ownership of any body corporate owning eligible land must have changed for the purposes of subsection (2)(b)(ii)(B); and

(v)

the data and information, or the kind of data and information, that each eligible person must supply, and the form in which the person must supply the data and information, in order to—

(A)

receive an allocation of New Zealand units under the plan; and

(B)

enable the Minister to determine the person’s correct allocation of New Zealand units under the allocation plan; and

(vi)

in relation to an eligible person who receives an allocation of New Zealand units,—

(A)

the records, or the kinds of records, that the person must retain; and

(B)

the form in which the person must retain the records; and

(C)

the period for which the person must retain the records; and

(b)

may specify—

(i)

the manner in which, and the extent to which, the beneficial ownership of eligible land must have changed to constitute a “transfer” for the purposes of subsection (2)(b)(ii)(A) or (B); and

(ii)

the manner in which, and the extent to which, the beneficial ownership of any body corporate owning eligible land, or, if relevant, the beneficial ownership of the land owned by a body corporate, must have changed for the purposes of subsection (2)(b)(ii)(B); and

(c)

may provide for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.

(5)

Despite subsection (2)(b), the pre-1990 forest land allocation plan must treat any Crown forest licence land transferred pursuant to the Te Uri o Hau Claims Settlement Act 2002 as if it were eligible land covered by subsection (2)(b)(iii).

(6)

For the purposes of—

(a)

this section,—

(i)

eligible land is to be treated as transferred on the settlement date, unless the pre-1990 forest land allocation plan specifies another date or event upon which any or all eligible land is to be treated as transferred; and

(ii)

Crown forest licence land means eligible land subject to a Crown forestry licence under section 14 of the Crown Forest Assets Act 1989; and

(b)

subsection (2)(b)(ii),—

(i)

transfer means a transfer specified in the pre-1990 forest land allocation plan, but does not include transmission unless the allocation plan specifies otherwise (for example, in relation to any land vested under an Act); and

(ii)

body corporate means a company whether incorporated in New Zealand or elsewhere and any other body corporate specified in the pre-1990 forest land allocation plan.

Section 72: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

73 Minister to appoint person to hold certain New Zealand units

(1)

The Minister must, before making a determination in respect of the eligible land specified in section 72(2)(b)(i)(A), by notice in the Gazette,—

(a)

appoint a person to—

(i)

apply for an allocation of New Zealand units in respect of the land; and

(ii)

hold on trust for the future owners of the land any New Zealand units allocated in respect of the land; and

(b)

notify—

(i)

the structure, composition, and functions of the person; and

(ii)

the terms and conditions upon which the person is to hold the New Zealand units.

(2)

If the Minister has not appointed a person in accordance with subsection (1) before issuing a notice under section 77(1) inviting persons to apply for an allocation of New Zealand units under the pre-1990 forest land allocation plan, then the Minister must, by notice in the Gazette, appoint a person to apply for an allocation of New Zealand units in respect of the land specified in section 72(2)(b)(i)(A) on behalf of the person to be appointed under subsection (1).

Section 73: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

74 Allocation to owners of fishing quota

(1)

The Minister must recommend to the Governor-General that an allocation plan be issued under section 70 in relation to fishing.

(2)

The fishing allocation plan must provide for—

(a)

an allocation of New Zealand units to persons who—

(i)

were shown on the quota register kept under Part 8 of the Fisheries Act 1996 as owners of fishing quota on 24 September 2009; and

(ii)

meet any tests or thresholds that are specified in the allocation plan; and

(b)

a total of 700 000 New Zealand units to be available for allocation under the allocation plan; and

(c)

an allocation of New Zealand units to each eligible person calculated in accordance with the following formula:

P = A × (B + C)/(D + E)

where—

P

is the eligible person’s allocation entitlement under the fishing allocation plan

A

is 700 000 New Zealand units

B

is the total quota weight equivalent (expressed in kilograms) of stocks, other than Foveaux Strait dredge oysters, owned by the eligible person on the close of 24 September 2009

C

is the total quota weight equivalent (expressed as a number of oysters) of Foveaux Strait dredge oyster stock owned by the eligible person on the close of 24 September 2009 divided by 9.8

D

is the sum of the total allowable commercial catch (expressed in kilograms) of stocks, other than Foveaux Strait dredge oysters (excluding any quota shown in the quota register kept under Part 8 of the Fisheries Act 1996 as being owned by the Crown), on the close of 24 September 2009

E

is the sum of the total allowable commercial catch (expressed as a number of oysters) of the Foveaux Strait dredge oyster stock divided by 9.8 (excluding any quota shown in the quota register kept under Part 8 of the Fisheries Act 1996 as being owned by the Crown) on the close of 24 September 2009; and

(d)

the data and information, or the kind of data and information, that each eligible person must supply, and the form in which the person must supply the data and information, in order to—

(i)

receive an allocation of New Zealand units under the allocation plan; and

(ii)

enable the Minister to determine the person’s correct allocation of New Zealand units under the allocation plan; and

(e)

in relation to an eligible person who receives an allocation of New Zealand units,—

(i)

the records, or the kinds of records, that the person must retain; and

(ii)

the form in which the person must retain the records; and

(iii)

the period for which the person must retain the records; and

(f)

any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.

(3)

For the purposes of this section, quota weight equivalent and total allowable commercial catch have the same meaning as in section 2(1) of the Fisheries Act 1996.

Section 74: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

75 Consultation on pre-1990 forest land allocation plan

(1)

Before making a recommendation under section 72, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of persons that appear to the Minister or the chief executive likely to have an interest in the pre-1990 forest land allocation plan.

(2)

A failure to comply with this section does not affect the validity of any pre-1990 forest land allocation plan issued under section 70.

(3)

Any consultation undertaken before the commencement of this section in respect of the pre-1990 forest land allocation plan is to be treated as the consultation required for the purposes of this section.

Section 75: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

76 Consultation on fishing allocation plan

(1)

Before making a recommendation under section 74(1), the Minister must—

(a)

prepare a draft fishing allocation plan; and

(b)

consult, or be satisfied that the chief executive has consulted, persons (or their representatives) that appear to the Minister or the chief executive likely to have an interest in the fishing allocation plan.

(2)

The draft fishing allocation plan must provide for the matters set out in section 74(2).

(3)

The Minister must ensure that—

(a)

public notice is given of the draft fishing allocation plan; and

(b)

the draft fishing allocation plan is made available in hard copy at the office of, and is accessible via the Internet site of the department of, the chief executive responsible for the administration of this Act and at such other places as the Minister considers appropriate.

(4)

The notice of the draft fishing allocation plan given under subsection (3) must specify—

(a)

how a hard copy of the draft fishing allocation plan may be obtained; and

(b)

that any person may make a submission on the draft fishing allocation plan, how submissions may be made, and by what date submissions must be made (which must be no earlier than 20 working days after the date on which notice is given).

(5)

If any submission is made on the draft fishing allocation plan under subsection (4), the chief executive must, after the expiry of the time for making submissions, prepare for the Minister a report that contains recommendations in respect of the submissions.

Section 76: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

77 Determinations made in accordance with allocation plan

(1)

As soon as practicable after an allocation plan comes into force, the Minister must give public notice inviting any person who may be eligible for an allocation of New Zealand units under the allocation plan to apply for an allocation.

(2)

The notice under subsection (1) must specify—

(a)

the form in which an application must be made; and

(b)

the final date by which applications for an allocation of New Zealand units under the allocation plan must be received by the Minister (which must, in the case of a pre-1990 forest land allocation plan, be no earlier than 40 working days after the date on which the notice is given and, in the case of a fishing allocation plan, be no earlier than 20 working days after the date on which the notice is given); and

(c)

the data and other information, or the kind of data and other information, that must accompany the application in order for the person’s application to be considered (which must be the data and other information specified in the allocation plan); and

(d)

how the data and other information are to be supplied.

(3)

To avoid doubt, data and information supplied under subsection (2) are subject to the Official Information Act 1982.

(4)

Despite anything in this subpart or in any allocation plan,—

(a)

a person is not entitled to receive an allocation of New Zealand units under an allocation plan unless the person applies to the Minister for an allocation under the allocation plan and supplies the required data and other information in the required format; and

(b)

the Minister is not required to make a determination in respect of an application for an allocation if the application is received after the date specified in the notice under subsection (2)(b).

(5)

The Minister must, in relation to each application received by the date specified in the notice given under subsection (1), make a preliminary determination in accordance with the allocation plan as to—

(a)

whether the person is eligible to receive an allocation of New Zealand units under the plan; and

(b)

the total number of New Zealand units the person is entitled to receive under the plan (which may be expressed by reference to a formula); and

(c)

the year or years in which the New Zealand units will be transferred to the person.

(6)

After making a preliminary determination, the Minister must notify the applicant of the following:

(a)

whether, in the Minister’s opinion, the person is an eligible person under the allocation plan, and—

(i)

if so, the total number of New Zealand units the Minister has determined the person is entitled to receive under the plan (which may be expressed by reference to a formula) and the year or years in which those units will be transferred; and

(ii)

if not, the reasons for that opinion; and

(b)

that, if the applicant believes there are any errors or miscalculations in the Minister’s preliminary determination of eligibility or entitlement, the person may provide further information to the Minister supporting a different determination; and

(c)

the final date by which any further information must be received by the Minister (which must, in the case of a pre-1990 forest land allocation plan, be no earlier than 20 working days after the date on which the notice is given, and in the case of a fishing allocation plan, be no earlier than 10 working days after the date on which the notice is given).

(7)

Following the expiry of the date referred to in subsection (6)(c), the Minister must, taking into account any information received by the due date in response to the notice, make a final determination of the matters specified in subsection (5).

(8)

As soon as practicable after making a final determination under subsection (7), the Minister must—

(a)

notify the applicant of the determination; and

(b)

publish the determination in the Gazette; and

(c)

ensure that the determination is accessible via the Internet site of the EPA; and

(d)

if New Zealand units are allocated to an applicant, direct the Registrar to transfer the allocated New Zealand units to the applicant’s holding account in the amounts and on the date or dates specified in the determination.

(8A)

Despite subsection (8)(d), if the applicant does not have a holding account, the Registrar is not required to comply with a direction by the Minister until the applicant has opened a holding account that has been approved by the Registrar.

(9)

For the purposes of making a preliminary determination under subsection (5) or a final determination under subsection (7) in respect of a fishing allocation plan, the Minister may access, and rely on, the information set out in the quota register kept under Part 8 of the Fisheries Act 1996.

(10)

To avoid doubt, and without limiting the powers conferred under sections 94 to 106, the EPA or any other person with powers under sections 94 to 106 may exercise those powers for the purposes of ascertaining whether a person who applies for an allocation of New Zealand units or is allocated New Zealand units under an allocation plan is complying with, or has complied with,—

(a)

any requirement in this section or section 78 or 79; or

(b)

any requirement in the relevant allocation plan (for example, a requirement to keep records).

Section 77: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 77(8)(c): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 77(8A): inserted, on 1 January 2013, by section 29 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 77(10): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

78 Power to revoke and replace determinations

(1)

Despite anything in section 77(7) or (8), the Minister may (but is not required to) reconsider, revoke, and replace a determination made under section 77(7) with a new determination if—

(a)

the allocation plan under which the determination was made is amended; or

(b)

in the Minister’s opinion, the determination has resulted, or would otherwise result, in a person receiving an incorrect allocation because—

(i)

of an error in the application of the criteria specified in the applicable allocation plan; or

(ii)

a person has provided altered, false, incomplete, or misleading information in response to a notice given under section 77(1) or (6) or 86E.

(2)

Before revoking and replacing a determination that would affect the number of units allocated to a person, the Minister must—

(a)

make a preliminary determination of the matters specified in section 77(5); and

(b)

give notice to the person of—

(i)

the ground specified in subsection (1) and any information that led the Minister to reconsider the person’s allocation under the relevant allocation plan; and

(ii)

the Minister’s preliminary determination made under paragraph (a); and

(c)

follow the procedure in section 77(6) to (8), which apply, with any necessary modifications, to the new determination.

(3)

The Minister may not revoke or replace a determination under this section after the expiry of 4 years from the date of notification of the Minister’s first determination under section 77(7) if the new determination would decrease the number of units allocated to a person.

(4)

Despite subsection (3), if the Minister is satisfied that an application for an allocation under an allocation plan, or any other document submitted in respect of the application, was submitted with the intention to deceive, then the Minister may revoke and replace any determination that resulted from the application at any time so as to decrease the number of units allocated to the applicant (including decreasing that number to zero).

(5)

Subsections (6) and (7) apply if—

(a)

the Minister has made a determination under section 77 that Te Ohu Kai Moana Trustee Limited is entitled to receive New Zealand units under a fishing allocation plan; and

(b)

New Zealand units have been transferred to Te Ohu Kai Moana Trustee Limited under the determination in respect of unallocated quota; and

(c)

Te Ohu Kai Moana Trustee Limited has allocated and transferred unallocated quota together with New Zealand units associated with that quota to any iwi or mandated iwi organisation in accordance with section 138A(2) of the Maori Fisheries Act 2004; and

(d)

the Minister reconsiders the determination.

(6)

In reconsidering the determination of Te Ohu Kai Moana Trustee Limited’s entitlement, the Minister must treat an iwi or a mandated iwi organisation which has received unallocated quota from Te Ohu Kai Moana Trustee Limited as if it owned that quota on 24 September 2009.

(7)

If the Minister decides that the determination of Te Ohu Kai Moana Trustee Limited’s entitlement to New Zealand units should be revoked, the Minister must make a new determination of—

(a)

Te Ohu Kai Moana Trustee Limited’s entitlement to be allocated New Zealand units under the fishing allocation plan as if the unallocated quota that Te Ohu Kai Moana Trustee Limited owns on the date of the new determination were all the unallocated quota it owned on 24 September 2009; and

(b)

the entitlement of an iwi or a mandated iwi organisation that has received unallocated quota to be allocated New Zealand units under the fishing allocation plan as if that iwi or mandated iwi organisation owned the unallocated quota it received on 24 September 2009.

(8)

In subsections (5) to (7) and section 79(4),—

iwi has the same meaning as in section 5 of the Maori Fisheries Act 2004

mandated iwi organisation has the same meaning as in section 5 of the Maori Fisheries Act 2004

unallocated quota means quota held by Te Ohu Kai Moana Trustee Limited on 24 September 2009 and that had not been allocated under section 130(1), 135, or 151 of the Maori Fisheries Act 2004 at that date.

Section 78: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

79 Effect of new determination

(1)

If the Minister makes a new determination in accordance with section 78, then—

(a)

the new determination applies and replaces the earlier determination from the date the new determination is made; and

(b)

the Minister—

(i)

may, if practicable, amend or revoke any direction given under section 77(8)(d); or

(ii)

must otherwise give any new direction necessary under section 77(8)(d) in order to give effect to the new determination.

(2)

Subject to subsection (3), a new determination does not change or otherwise affect any transfer of New Zealand units made to a person in accordance with a revoked determination before the date the new determination came into effect.

(3)

If New Zealand units have been transferred to a person under an earlier determination and the person would not be entitled under the new determination to those New Zealand units (including where the result of the new determination is that the person would not be entitled to any New Zealand units under the allocation plan), then—

(a)

the notice of the new determination given to the person under section 77(8) must specify—

(i)

the number of units required to be repaid; and

(ii)

the Crown holding account into which they must be transferred; and

(b)

the person must, within 60 working days of the date of the notice, repay those units by transferring the specified number of units to a Crown holding account in accordance with the notice, and sections 134 and 135 apply, with any necessary modifications, as if—

(i)

the units the person is required to repay were units transferred to the person in error; and

(ii)

the requirement to repay the units arose under section 125.

(4)

This section applies to any new determination made in accordance with section 78(7) as if—

(a)

only the New Zealand units associated with the unallocated quota held by Te Ohu Kai Moana Trustee Limited at the date of the new determination had been transferred to it under the earlier determination; and

(b)

the New Zealand units associated with the unallocated quota transferred to an iwi or a mandated iwi organisation by Te Ohu Kai Moana Trustee Limited had been transferred to the iwi or mandated iwi organisation under the earlier determination.

Section 79: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 79(3)(b): amended, on 1 January 2013, by section 30 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Allocation of New Zealand units in relation to industry and agriculture

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

80 Criteria for allocation of New Zealand units to industry

(1)

A person is eligible for an allocation of New Zealand units for an eligible industrial activity in respect of a year if the person carries out the activity at any time in a year.

(2)

Subsection (1) is subject to sections 86E and 161D(7).

Section 80: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

81 Entitlement to provisional allocation for eligible industrial activities

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 2010, 2011, and 2012; and

(ii)

in each year after 2012, the level of assistance from the previous year less 0.01 (the phase-out rate for a moderately emissions-intensive eligible industrial activity):

(b)

for a highly emissions-intensive eligible industrial activity,—

(i)

0.9 in 2010, 2011, and 2012; and

(ii)

in each year after 2012, the level of assistance from the previous year less 0.01 (the phase-out rate for a highly emissions-intensive eligible industrial activity)

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.

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 formula item LA paragraph (a)(ii): replaced, on 1 January 2013, by section 31(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 81 formula item LA paragraph (b)(ii): replaced, on 1 January 2013, by section 31(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

82 Entitlement to allocation for eligible industrial activities where provisional allocation not received

(1)

An eligible person who carries out an eligible industrial activity at any time in a year, but did not carry out that activity during the immediately preceding year (a new entrant) is not entitled to a provisional allocation calculated under section 81, but is entitled to an allocation under subsection (2).

(2)

A new entrant or other eligible person who did not receive a provisional allocation of New Zealand units for an eligible industrial activity in respect of a year is entitled to an allocation of New Zealand units for the eligible industrial activity for the year calculated in accordance with the formula in section 83(2).

Section 82: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

83 Annual allocation adjustment

(1)

A person who has received a provisional allocation of New Zealand units for an eligible industrial activity in respect of a year must, subject to section 84, calculate the person’s annual allocation adjustment for the activity for the year by—

(a)

determining the person’s final allocation entitlement for the eligible industrial activity in respect of the year in accordance with the formula in subsection (2); and

(b)

then determining the annual allocation adjustment in accordance with the formula in subsection (3).

(2)

The formula for the calculation of a person’s final allocation entitlement is as follows:

FA = LA × ∑(PDCT × AB)

where—

FA

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

LA

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

(a)

for a moderately emissions-intensive eligible industrial activity,—

(i)

0.6 in 2010, 2011, and 2012; and

(ii)

in each year after 2012, the level of assistance from the previous year less 0.01 (the phase-out rate for a moderately emissions-intensive eligible industrial activity):

(b)

for a highly emissions-intensive eligible industrial activity,—

(i)

0.9 in 2010, 2011, and 2012; and

(ii)

in each year after 2012, the level of assistance from the previous year less 0.01 (the phase-out rate for a highly emissions-intensive eligible industrial activity)

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, 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.

(3)

The formula for the calculation of a person’s annual allocation adjustment is as follows:

AA = PA – FA

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 notified by the EPA under section 86B

FA

is the person’s final allocation entitlement for the eligible industrial activity for the year calculated under subsection (2).

(4)

If the figure for AA calculated under the formula in subsection (3)—

(a)

is a negative number, then the person is entitled to be allocated the number of units in the annual allocation adjustment:

(b)

is a positive number, then the person is liable to repay the number of units in the annual allocation adjustment.

(5)

If an eligible person is entitled to be allocated the number of units in an annual allocation adjustment and the person—

(a)

makes an application for a provisional allocation for the same eligible industrial activity in the year following the year to which the annual allocation adjustment relates, then the person must record the adjustment in the person’s application for a provisional allocation for the following year:

(b)

does not make an application for a provisional allocation for the same eligible industrial activity in the year following the year to which the annual allocation adjustment relates, the person may make a separate application under section 86 for an allocation of the number of units in the annual allocation adjustment.

(6)

If an eligible person is liable to repay the number of units in an annual allocation adjustment and the person—

(a)

makes an application for a provisional allocation for the same eligible industrial activity in the year following the year to which the annual allocation adjustment relates, then—

(i)

the person must record the adjustment for the year in the person’s application for a provisional allocation for the following year; and

(ii)

subject to section 86B, the EPA must deduct the number of units in the adjustment from the provisional allocation for the following year, unless the number of units in the provisional allocation is less than the adjustment, in which case the person must, within 20 working days of being notified of the shortfall in the number of units by the EPA, repay the shortfall by transferring the relevant number of units to a Crown holding account designated by the EPA; or

(b)

does not make an application for a provisional allocation for the same eligible industrial activity in the year following the year to which the annual allocation adjustment relates, then the person must—

(i)

by 30 April in the year following the year to which the annual allocation adjustment relates, notify the EPA of the person’s annual allocation adjustment; and

(ii)

by 31 May in the year following the year to which the annual allocation adjustment relates, repay the number of units in the annual allocation adjustment by transferring the units to a Crown holding account designated by the EPA.

(7)

If a person is required to repay units under this section, then—

(a)

the units repaid must be of a type that may be transferred to a surrender account at the time the units are repaid; and

(b)

sections 134 and 135 apply, with any necessary modifications, as if—

(i)

the units the person is required to repay were units transferred to the person in error; and

(ii)

the requirement to repay the units arose under section 125.

Section 83: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 83(2) formula item LA paragraph (a)(ii): replaced, on 1 January 2013, by section 32(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 83(2) formula item LA paragraph (b)(ii): replaced, on 1 January 2013, by section 32(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 83(3) formula item PA: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 83(6)(a)(ii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 83(6)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 83(6)(b)(ii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

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).

84A Temporary suspension of allocation entitlement for eligible industrial activities

(1)

The purpose of this section is to suspend temporarily the allocation entitlement of an eligible person in respect of an eligible industrial activity until the relevant participants face full surrender obligations.

(2)

This section applies to the allocation entitlement (including the provisional allocation entitlement) of an eligible person in respect of an eligible industrial activity calculated under sections 81 to 84.

(3)

Despite anything in this Act, an eligible person who carries out an eligible industrial activity is entitled to be allocated, in respect of an application made under section 86, only half of the person’s allocation entitlement during the period—

(a)

beginning on the day that this section comes into force; and

(b)

ending on the close of the date specified for the purpose of this section as the closure date by an Order in Council made by the Governor-General on the recommendation of the Minister.

(4)

Before the Minister may make a recommendation under subsection (3)(b), the Minister must be satisfied that the relevant participants face full surrender obligations.

(5)

This section is repealed on the day after the closure date specified in an Order in Council made under subsection (3)(b).

Section 84A: inserted, on 1 January 2013, by section 34 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

85 Allocation of New Zealand units in relation to agriculture

(1)

A person is eligible for an allocation of New Zealand units for an eligible agricultural activity in respect of a year if the person carries out the activity at any time in the year.

(2)

An eligible person is entitled to an allocation for the eligible agricultural activity in respect of the year calculated in accordance with the following formula:

A = LA × ∑(PDCT × AB)

where—

A

is the person’s allocation entitlement for the eligible agricultural activity for the year

LA

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

(a)

0.9 for the first year in which surrender obligations are applicable for the activity; and

(b)

in each year after the first year in which surrender obligations are applicable for the activity, the level of assistance from the previous year less 0.01 (the phase-out rate for an eligible agricultural activity)

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

PDCT

is the total amount of each product from the eligible agricultural activity produced by the person in the year as determined, if relevant, in accordance with regulations made under this Act

AB

is the prescribed allocative baseline for the applicable product.

(3)

Despite section 86(1)(c), a person who ceases to carry out an eligible agricultural activity in a year may, within 20 working days of ceasing to carry out the activity, apply under section 86 for an allocation for that year calculated in accordance with the formula in subsection (2).

(4)

A person—

(a)

is not to be treated as having ceased to carry out an eligible agricultural activity for the purposes of subsection (3) and section 59, if the person does not continuously carry out the activity during a year; but

(b)

must, if the person does not carry out the eligible agricultural activity for a period of 3 months in a year, be treated as having ceased to carry out the activity in the year.

(5)

Subject to subsection (6), an eligible person who has applied for an allocation for a year (the closing year) in accordance with subsection (3) may not apply under section 86 for a further allocation in respect of the closing year.

(6)

An eligible person who has applied in accordance with subsection (3) for an allocation in respect of a closing year, but who then recommences carrying out the activity in the closing year may apply under section 86 for an allocation in respect of the part of the year after the date the person recommenced carrying out the activity (and which was not covered by the application made in accordance with subsection (3)) and, for that purpose, subsection (2) applies as if the year were the part of the year from the date the person recommenced carrying out the activity.

Section 85: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 85(2) formula item LA paragraph (a): replaced, on 1 January 2013, by section 35 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 85(2) formula item LA paragraph (b): replaced, on 1 January 2013, by section 35 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

85A Temporary suspension of phase-out rates for assistance under sections 81, 83(2), and 85(2)

(1)

The purpose of this section is to suspend temporarily the phase-out rates for assistance under sections 81, 83(2), and 85(2) until the relevant participants face full surrender obligations.

(2)

Despite anything in sections 81, 83(2), and 85(2),—

(a)

the phase-out rates in those sections may not reduce the level of assistance for an eligible activity from its 2012 level or the level in the first year in which full surrender obligations are applicable for the activity (as the case may be) during the period—

(i)

beginning on the date that this section comes into force; and

(ii)

ending, in respect of either or both of those activities, on the close of the date specified for the purpose of this section as the closure date in an Order in Council made by the Governor-General on the recommendation of the Minister; and

(b)

the relevant phase-out rate applies for each year after the year of the closure date specified in that order.

(3)

Before the Minister may make a recommendation under subsection (2)(a)(ii), the Minister must be satisfied that the relevant participants face full surrender obligations.

(4)

This section is repealed on the day after the closure date specified in the Order in Council made under subsection (2)(a)(ii) that specifies the end of all suspensions under this section.

Section 85A: inserted, on 1 January 2013, by section 36 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

85B Temporary suspension of allocation entitlement for eligible agricultural activities

(1)

The purpose of this section is to suspend temporarily the allocation entitlement of an eligible person in respect of an eligible agricultural activity until the relevant participants face full surrender obligations.

(2)

This section applies to the allocation entitlement of an eligible person in respect of an eligible agricultural activity.

(3)

Despite anything in this Act, an eligible person who carries out an eligible agricultural activity is entitled to be allocated, in respect of an application made under section 86, only half of the person’s allocation entitlement during the period—

(a)

beginning on the date that the surrender obligations commence; and

(b)

ending on the close of the date specified for the purpose of this section as the closure date by Order in Council made by the Governor-General on the recommendation of the Minister.

(4)

Before the Minister may make a recommendation under subsection (3)(b), the Minister must be satisfied that the relevant participants face full surrender obligations.

(5)

This section is repealed on the day after the closure date specified in an Order in Council made under subsection (3)(b) that specifies the end of suspensions under this section.

Section 85B: inserted, on 1 January 2013, by section 36 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

86 Applications for allocation of New Zealand units for industry and agriculture

(1)

An eligible person who wishes to be allocated New Zealand units for an eligible industrial activity or eligible agricultural activity under this subpart must, unless this subpart otherwise provides, apply to the EPA, in the period beginning on 1 January and ending with the close of 30 April in a year, for—

(a)

a provisional allocation for an eligible industrial activity in respect of that year:

(b)

an allocation (other than a provisional allocation for an eligible industrial activity) in respect of the preceding year.

(2)

An application under subsection (1) must—

(a)

be in the prescribed form; and

(b)

contain, as relevant, the applicant’s assessment of,—

(i)

in the case of an eligible industrial activity, the person’s—

(A)

provisional allocation entitlement in respect of the year calculated in accordance with section 81:

(B)

final allocation entitlement in respect of the previous year calculated in accordance with section 83(2):

(C)

annual allocation adjustment relating to the previous year calculated in accordance with section 83(3) or 84(4):

(D)

closing allocation adjustment for the year calculated as required under section 84(1)(b):

(ii)

in the case of an eligible agricultural activity, the person’s—

(A)

allocation entitlement in respect of the previous year calculated in accordance with section 85(2); or

(B)

if section 85(3) applies, allocation entitlement in respect of the year in which the person ceased to carry out the eligible agricultural activity; and

(c)

be accompanied by—

(i)

any other information that the EPA may require; and

(ii)

the prescribed fee (if any); and

(d)

contain the account number of the eligible person’s holding account, required by section 61.

Section 86: substituted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 86(1): replaced, on 1 January 2013, by section 37 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 86(2)(c)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

86A Provisional allocation to industry in and after 2013

Despite section 86(1)(a), if an eligible industrial activity is prescribed under section 161A(1)(a) in the year 1 January 2013 to 31 December 2013 or in any subsequent year (the prescribing year), an eligible person who carried out the activity in the year preceding the prescribing year may apply for a provisional allocation for the eligible industrial activity in respect of the prescribing year in the period—

(a)

commencing on the date the regulation prescribing the activity as an eligible industrial activity comes into force; and

(b)

ending on the date 3 months after the date in paragraph (a).

Section 86A: inserted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

86B Decisions on applications for allocations of New Zealand units to industry and agriculture

(1)

On receipt of an application under section 86, the EPA must decide—

(a)

whether the applicant is eligible to receive an allocation in respect of the application:

(b)

if in the EPA’s opinion the applicant is eligible for an allocation in respect of the application, the number of units the applicant is entitled to be allocated in respect of the application that, if the application relates to a provisional allocation for an eligible industrial activity, must—

(i)

include any units to which the person is entitled in respect of an annual allocation adjustment for the previous year; or

(ii)

be net of any units required to be deducted from the person’s provisional allocation entitlement in accordance with section 83(6)(a).

(2)

If the EPA decides under subsection (1) that an applicant is entitled to receive an allocation in respect of the application, then the EPA must—

(a)

notify the applicant of—

(i)

the number of units the applicant has been allocated in respect of the application and, in the case of an eligible industrial activity, any adjustment to that allocation that the EPA has made under subsection (1); and

(ii)

the person’s right under section 144 to seek a review of the allocation decision; and

(b)

direct the Registrar to transfer to the holding account notified in the person’s application the number of units notified under paragraph (a) (as adjusted, in the case of an eligible industrial activity, under subsection (1)).

(3)

If the EPA decides under subsection (1) that an applicant is not eligible to receive an allocation in respect of the application, or that the allocation to which the person is entitled in respect of the application is the same as or less than the number of units that the person is liable to repay in respect of an annual allocation adjustment recorded in the application in accordance with section 83(6)(a), then the EPA must notify the applicant of—

(a)

the EPA’s decision; and

(b)

the reasons for the decision; and

(c)

if the result of the decision is that the person is liable to repay more units than the number of units to which the person would have been entitled in respect of the application, the number of units in the shortfall; and

(d)

the person’s right under section 144 to seek a review of the allocation decision.

(4)

If a person has failed to notify the EPA of an annual allocation adjustment or a closing allocation adjustment when required by section 83(6)(b) or 84(1)(c)(ii), or if the EPA is satisfied that an annual allocation adjustment or closing allocation adjustment notified by a person to the EPA under section 83(6)(b) or 84(1)(c)(ii) is incorrect, then the EPA may make a decision as to the person’s annual allocation adjustment, or closing allocation adjustment or correct annual allocation adjustment or closing allocation adjustment.

(5)

The EPA must, as soon as practicable, after deciding an eligible person’s final allocation for an eligible activity in respect of a year,—

(a)

publish the decision in the Gazette; and

(b)

ensure it is accessible via the Internet site of the EPA.

(6)

For the purposes of subsection (5),—

(a)

the final allocation of a person who received a provisional allocation for an eligible industrial activity is the person’s provisional allocation for the activity in respect of the year adjusted by the annual allocation adjustment for the activity for the year (or closing allocation adjustment, as the case may be); and

(b)

the EPA is not required to publish the final allocation of an eligible person for an eligible activity in respect of a year, or ensure it is accessible via the Internet, if the EPA considers that publishing that information would be likely to prejudice unreasonably the commercial position of the eligible person who received the allocation.

Section 86B: inserted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 86B(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(1)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(2)(a)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(3)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(5): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(5)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86B(6)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

86C Reconsideration of allocation decisions

(1)

Without limiting section 144, the EPA may reconsider, vary, or revoke any decision made under section 86B if in the EPA’s opinion the decision has resulted, or would otherwise result, in a person receiving an incorrect allocation because—

(a)

of an error in the calculation of the person’s entitlement to an allocation or liability to repay units under this subpart; or

(b)

the person has provided altered, false, incomplete, or misleading information in or with an application.

(2)

The EPA may not make a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86B(4) or vary or revoke a decision under subsection (1) after the expiration of 4 years from the end of the year or other period to which the decision relates if the decision, or variation or revocation of the decision, would decrease the number of units allocated to a person.

(3)

However, if the EPA is satisfied that a notice under section 83(6)(b) or 84(1)(c)(ii) or application for an allocation, or any other document submitted under section 86, 86E, or 144, was submitted with intent to deceive, the EPA may make a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86B(4) or vary or revoke a decision under subsection (1) at any time so as to decrease the number of units allocated to the person to whom the notice or application related (including decreasing that number to zero).

(4)

If the EPA makes a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86B(4) or varies or revokes a decision under subsection (1), the EPA must, as soon as practicable after doing so, notify the person who gave, or should have given, the notice under section 83(6)(b) or 84(1)(c)(ii) or the applicant, as the case may be, of—

(a)

the particulars of the decision, or variation or revocation of the decision; and

(b)

any grounds or information upon which the decision or variation or revocation of the decision was based; and

(c)

the person’s right under section 144 to seek a review of the allocation decision.

(5)

If the result of a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86B(4), variation or revocation of an allocation decision under subsection (1), or review under section 144 is that a person allocated units is found to have been allocated and transferred—

(a)

units to which the person was not entitled, or to have repaid too few units, the person must within 60 working days of the date of the notice under subsection (4) repay the number of units notified to the person by transferring the units to a Crown holding account designated by the EPA; or

(b)

fewer units than the person was entitled to, or to have repaid too many units, the EPA must, as soon as practicable after the date of the notice under subsection (4), direct the Registrar to transfer to the holding account notified in the person’s application (or any other holding account notified by the person) the number of New Zealand units recorded in the notice.

(5A)

Any additional allocation made under subsection (5)(b) must be excluded from the calculation of the number of New Zealand units that may be allocated for the purpose of a recommendation made under section 30GA(1)(a).

(6)

Section 83(7) applies to repayment of units under subsection (5) as if it were repayment under section 83.

Section 86C: inserted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 86C(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86C(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86C(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86C(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86C(5)(a): amended, on 1 January 2013, by section 38(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 86C(5)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86C(5)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86C(5A): inserted, on 1 January 2013, by section 38(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

86D Retention of records and materials in relation to allocation

(1)

A person who has been allocated New Zealand units for an eligible activity must keep sufficient records to enable the EPA to verify, for any year in respect of which the person received an allocation,—

(a)

that the person was an eligible person; and

(b)

the person’s calculations of the person’s entitlement to be allocated New Zealand units or liability to repay units under the relevant subsections in sections 81 to 85; and

(c)

the total amount of each product produced by the person from the eligible activity in the year, as determined, if relevant, in accordance with regulations made under this Act; and

(d)

any other prescribed information.

(2)

The records specified in subsection (1)—

(a)

must include—

(i)

a copy of any application made to the EPA under section 86 or notice given to the EPA under section 83(6)(b) or 84(1)(c)(ii); and

(ii)

any information used to prepare the application or notice; and

(b)

must be retained for a period of at least 7 years after the end of the year to which the application or notice relates.

Section 86D: inserted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 86D(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86D(2)(a)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

86E Minister or EPA or chief executive may require further information for purpose of carrying out functions under subpart

(1)

For the purposes of making a determination under section 77 or 78 or a decision under section 86B, the Minister or EPA or chief executive, as appropriate, may give to any of the following persons a notice requiring the person to supply information or further information to the Minister or EPA or chief executive:

(a)

a person who has made an application for an allocation of New Zealand units or notified an annual allocation adjustment or closing allocation adjustment:

(b)

a person who has failed to notify an annual allocation adjustment or closing allocation adjustment as required by section 83(6)(b) or 84(1)(c)(ii):

(c)

a person who may be affected by a reconsideration of a determination or decision.

(2)

A notice under subsection (1) must be given before the determination or decision is made.

(3)

A notice under subsection (1) may require the information to be provided that is necessary to determine whether a person is or was—

(a)

eligible for an allocation of New Zealand units; or

(b)

entitled to the allocation that the person has applied for or received (in relation to an annual allocation adjustment or a closing allocation adjustment).

(4)

The Minister or EPA or chief executive may, as appropriate, for the purpose of verifying whether a determination made under section 77 or 78 or a decision made under section 86B was correct or whether it should be reconsidered, give a notice to a person who has been allocated New Zealand units under one of those sections, requiring the person to supply to the Minister or EPA or chief executive any records, data, or other information that the person is required to keep in relation to the allocation.

(5)

A person who has received a notice under this section must supply the information requested within the period specified in the notice.

(6)

A person who fails to comply with a notice under this section within the period specified in the notice, or any further period agreed with the Minister or EPA or chief executive as appropriate, and who—

(a)

has applied for an allocation under an allocation plan or under section 86 is not entitled to receive an allocation under that plan or in respect of that application; or

(b)

has been allocated but not yet received some or all units allocated to the person under an allocation plan is not entitled to be transferred any units or any further units allocated to the person under the plan.

Section 86E: inserted, on 8 December 2009, by section 32 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 86E heading: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86E(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86E(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 86E(6): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

86F Balance of units at end of true-up period or other balance date
[Repealed]

Section 86F: repealed, on 1 January 2013, by section 39 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Subpart 3—Environmental Protection Authority

Subpart 3 heading: substituted, on 5 December 2011, by section 11 of the Climate Change Response Amendment Act 2011 (2011 No 15).

General administrative provisions

Heading: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

87 Functions of EPA

(1)

The functions of the EPA are to—

(a)

keep a register under section 56 of persons who carry out activities and a register of persons who register under section 57 as participants; and

(b)

receive and collate the data and other information provided by participants under this Part and Part 5; and

(ba)

administer allocations relating to industry and agriculture in accordance with sections 80 to 86E; and

(c)

approve the use of unique emissions factors by participants in accordance with section 91; and

(d)

direct the Registrar to transfer New Zealand units to which participants are entitled for removal activities to participants’ holding accounts; and

(e)

ensure participants and eligible persons comply with this Part and Part 5 and to take any action that may be appropriate to enforce those provisions and the provisions of any regulations made under this Part; and

(f)

publish information in accordance with section 89; and

(g)

issue emissions rulings to help persons meet their obligations under this Part and Part 5.

(2)

The EPA must comply with any direction that the Minister gives under section 88(1).

(3)

For the avoidance of doubt, the EPA undertakes the functions described in subsection (1) on behalf of the Crown.

Section 87: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 87 heading: amended, on 5 December 2011, by section 12(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 87(1): amended, on 5 December 2011, by section 12(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 87(1)(ba): inserted, on 8 December 2009, by section 33(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 87(1)(d): substituted, on 8 December 2009, by section 33(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 87(1)(e): amended, on 1 January 2013 (applying on and after 8 December 2009, being the commencement date of section 87(1)(ba)), by section 40 of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 87(2): amended, on 5 December 2011, by section 12(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 87(3): added, on 5 December 2011, by section 12(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

87A Delegation by EPA

(1)

The EPA must not delegate its power to appoint the Registrar under section 11.

(2)

In all other respects, section 73 of the Crown Entities Act 2004 applies, except that subsection (1) of that section applies as if paragraph (d) were repealed and the following paragraph substituted:

(d)

a person, or an office holder in a department of the Public Service, approved by the entity’s responsible Minister:

Section 87A: inserted, on 5 December 2011, by section 13 of the Climate Change Response Amendment Act 2011 (2011 No 15).

88 Directions to EPA

(1)

The Minister may give general directions to the EPA in relation to the EPA’s exercise of powers and performance of functions under this Part, Part 5, or any regulations made under this Part or Part 5.

(2)

Subsection (1) does not authorise the Minister to give directions about the exercise of powers and performance of functions in relation to a particular person.

(3)

As soon as practicable after giving a direction under subsection (1), the Minister must—

(a)

publish a copy of the direction in the Gazette; and

(b)

make a copy of the direction accessible via the Internet site of the EPA; and

(c)

present a copy of the direction to the House of Representatives.

(4)

Before giving a direction under subsection (1), the Minister must comply with section 115(1) of the Crown Entities Act 2004.

Section 88: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 88 heading: amended, on 5 December 2011, by section 14(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 88(1): amended, on 5 December 2011, by section 14(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 88(1): amended, on 5 December 2011, by section 14(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 88(3)(b): amended, on 5 December 2011, by section 14(3) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 88(4): added, on 5 December 2011, by section 14(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

89 EPA to publish certain information

(1)

The EPA must publish the following information in accordance with subsection (2):

(a)

in respect of each activity listed in Schedule 3, the total number of participants—

(i)

registered under section 56; and

(ii)

removed from the register under section 59; and

(b)

in respect of each activity listed in Schedule 4, the total number of participants—

(i)

registered under section 57; and

(ii)

removed from the register under sections 58(4) and 59; and

(c)

the total number and type of activities reported in emissions returns; and

(d)

the total quantity of emissions and removals reported in emissions returns; and

(e)

subject to subsections (3) and (4), the total quantity of emissions by activity and the total quantity of removals by activity reported in emissions returns; and

(f)

the number of participants who failed to comply with their obligation to—

(i)

submit an emissions return under section 65(1), 118(2), 189(4), 191, or 193; or

(ii)

surrender or repay units under section 65(4), 118(5), 123(3) or (6), 125, 189, 191, or 193; and

(g)

the total number of units surrendered; and

(h)

the total number of New Zealand units transferred for removal activities; and

(i)

the total number of New Zealand units allocated under subpart 2 less any units repaid; and

(j)

the total sum of money paid to a Crown Bank Account in accordance with section 178A(2)(a)(ii) or (iii); and

(k)

the total sum of money paid by the EPA in accordance with section 178A(2)(b)(ii) or (iii).

(2)

The EPA—

(a)

must publish the information specified in subsection (1) as soon as practicable after the end of the reporting year; and

(b)

may publish the information specified in subsection (1), in whole or in part, at any other time and in whatever manner and format that the EPA considers appropriate.

(2A)

In this section, reporting year means a 12-month period starting on 1 July of one year and ending with the close of 30 June of the following year.

(3)

The EPA is not required to publish the information required under subsection (1)(e) in respect of an activity or the information required under subsection (1)(i) if the EPA is satisfied that publishing the information would result in the disclosure of a participant’s individual emissions or an eligible person’s own allocation, unless—

(a)

the participant or eligible person to whom the information relates has consented to the publication of the information; or

(b)

the information is already in the public domain.

(4)

The EPA is only required to publish the total quantity of emissions and the total quantity of removals in aggregate for the activities in Part 1 of Schedule 4.

Section 89: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 89 heading: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 89(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 89(1)(e): amended, on 8 December 2009, by section 34(1) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 89(1)(i): substituted, on 8 December 2009, by section 34(2) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 89(1)(i): amended, on 1 January 2013, by section 41(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 89(1)(j): inserted, on 1 January 2013, by section 41(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 89(1)(k): inserted, on 1 January 2013, by section 41(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 89(2): replaced, on 1 January 2013, by section 41(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 89(2A): inserted, on 1 January 2013, by section 41(3) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 89(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 89(3): amended, on 8 December 2009, by section 34(3) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 89(3): amended, on 8 December 2009, by section 34(4) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 89(3)(a): amended, on 8 December 2009, by section 34(5) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 89(4): added, on 8 December 2009, by section 34(6) of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

Section 89(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

90 EPA may prescribe form of certain documents

(1)

The EPA may, for the purposes of this Part and Part 5, prescribe—

(a)

the form and electronic format of any forms, applications, returns, information accompanying any applications or returns, or other documents that are not otherwise prescribed in regulations made under this Act; and

(b)

different forms or formats for different classes of participants or different activities; and

(c)

the manner in which any application, return, information, or other document must be submitted or notified under this Part or Part 5 if this is not otherwise prescribed in regulations.

(2)

The EPA must publish any form or format prescribed under subsection (1) via the Internet site of the EPA.

(3)

The production by the EPA of any document purporting to be a prescribed form or an extract from a prescribed form or a copy of a form or extract is, in all courts and in all proceedings, unless the contrary is proved, sufficient evidence that the form or electronic format was prescribed.

(4)

To avoid doubt, if the EPA prescribes an electronic form or format under subsection (1), the EPA may require any signature on that form or that relates to that format to be an electronic signature.

Section 90: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 90 heading: amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 90(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 90(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 90(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 90(4): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

91 Approval of unique emissions factors

(1)

The EPA may approve the use by a participant of a unique emissions factor when calculating emissions or removals from an activity under section 62(b) if—

(a)

regulations made under section 164 provide a mechanism for participants to apply for approval to use a unique emissions factor for the activity; and

(b)

the EPA is satisfied that the unique emissions factor that the participant has applied to use meets any requirements prescribed in regulations made under section 164.

(2)

An approval under subsection (1)—

(a)

may be subject to the conditions that the EPA considers appropriate; and

(b)

ceases to have effect on the earliest of the following dates:

(i)

the date of a material change in any of the information or factors on which the approval is based; or

(ii)

the date of a material change to this Act or to any regulations to which the approval relates; or

(iii)

the date on which any of the conditions to which the approval is subject cease to be met or complied with.

(3)

If the EPA approves the use of a unique emissions factor under subsection (1), the EPA must—

(a)

notify the applicant of the approval; and

(b)

publish in the Gazette

(i)

the name of the participant; and

(ii)

a description of the activity; and

(iii)

the details of the unique emissions factor the EPA has approved the participant to use when calculating emissions or removals for the activity.

Section 91: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 91(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 91(1)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 91(2)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 91(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 91(3)(b)(iii): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

92 Recognition of verifiers

(1)

The EPA may, in accordance with any regulations made under section 163, recognise a person or organisation with the prescribed expertise, technical competence, or qualifications as a person or organisation that may undertake verification functions for the purposes of section 62(a) and (c) or regulations made under section 164 relating to the process for approval of a unique emissions factor.

(2)

A person or organisation may be recognised by the chief executive as able to verify information or unique emissions factors in respect of—

(a)

1 or more types of data or information or calculations of types of emissions or removals:

(b)

1 or more activities in Schedule 3 or 4.

(3)

The EPA may suspend or revoke any recognition given under this section in accordance with regulations made under section 163.

Section 92: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 92(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 92(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Verification and inquiry

Heading: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

93 Appointment of enforcement officers

(1)

The EPA may appoint 1 or more persons who are employees of the EPA as enforcement officers to exercise 1 or more of the powers and perform the functions conferred on enforcement officers under this Part.

(2)

If the EPA delegates the power to appoint a person as an enforcement officer to the chief executive of a department of the Public Service, the chief executive of the department may appoint a person as an enforcement officer only if the person is employed by a government department, in which case the chief executive must employ the person under the State Sector Act 1988.

(3)

The EPA must supply each enforcement officer with a warrant of authorisation that clearly states the powers and functions of the officer.

(4)

An enforcement officer who exercises, or purports to exercise, a power conferred on the enforcement officer under this Act must carry and produce, if required to do so,—

(a)

his or her warrant of authorisation; and

(b)

evidence of his or her identity.

(5)

An enforcement officer must, on the termination of the enforcement officer’s appointment, surrender his or her warrant to the chief executive.

(6)

[Repealed]

Section 93: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 93(1): substituted, on 5 December 2011, by section 15(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 93(2): substituted, on 5 December 2011, by section 15(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 93(3): substituted, on 5 December 2011, by section 15(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 93(6): repealed, on 5 December 2011, by section 15(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

94 Power to require information

(1)

The EPA, the chief executive, or an enforcement officer may, by notice, require a person to provide any information that is reasonably necessary for the purposes of—

(a)

ascertaining whether a person is complying, or has complied, with this Part and Part 5; or

(b)

ascertaining whether the EPA or the chief executive, as appropriate, should exercise any powers under this Part or Part 5.

(2)

The information required to be provided under subsection (1) must,—

(a)

if required by the EPA, the chief executive, or an enforcement officer, be accompanied by a statutory declaration attesting to the truthfulness of the information provided; and

(b)

be provided—

(i)

in the form specified by the EPA, the chief executive, or an enforcement officer; and

(ii)

within any reasonable time specified in the notice requiring the information; and

(iii)

free of charge.

Section 94: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 94(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 94(1)(b): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 94(2)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 94(2)(b)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

95 Power to inquire

(1)

For the purpose of obtaining information for a purpose specified in section 94(1), or any other information required for the purposes of the administration or enforcement of this Part or Part 5, the EPA or the chief executive may require a person to—

(a)

appear before the EPA, or the chief executive, or an enforcement officer at a time and place that is specified in the notice to give evidence; and

(b)

produce any document or class of documents in the person’s possession or under the person’s control that is specified in the notice.

(2)

The EPA, or the chief executive, or enforcement officer may require the evidence to be given on oath and either orally or in writing, and for that purpose the EPA, or the chief executive, or enforcement officer may administer an oath.

Section 95: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 95(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 95(1)(a): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 95(2): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

96 Inquiry before District Court Judge

(1)

For the purpose of obtaining information for a purpose specified in section 94(1), or any other information required for the purposes of the administration or enforcement of this Part or Part 5, the EPA or the chief executive, if the EPA or the chief executive, as appropriate, considers it necessary, may apply in writing to a District Court Judge to hold an inquiry under this section.

(2)

For the purposes of an inquiry under this section,—

(a)

the District Court Judge—

(i)

may, with respect to any matter that is relevant to the subject matter of the inquiry, summon and examine on oath all persons whom the EPA, the chief executive, or any other interested person requires to be called and examined; and

(ii)

has the same jurisdiction and authority regarding the summoning and examination of a person as the Judge would have in respect of a witness in a civil action within the Judge’s ordinary jurisdiction; and

(b)

the person summoned and examined has all the rights and is subject to all the liabilities that the person would have and be subject to if the person were a witness in a civil action within the Judge’s ordinary jurisdiction.

(3)

The EPA, the chief executive, and any person materially affected by the subject matter of the inquiry may be represented by a barrister or solicitor, who may examine, cross-examine, and re-examine, in accordance with ordinary practice, any person summoned under subsection (2).

(4)

Every examination under this section must take place in chambers.

(5)

The statement of every person examined—

(a)

must be—

(i)

recorded in writing and signed by the person in the presence of the District Court Judge; and

(ii)

delivered to the chief executive; and

(b)

does not form part of the records of the court.

Section 96: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 96(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 96(2)(a)(i): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 96(3): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

97 No criminal proceedings for statements under section 95 or 96

(1)

No person summoned or examined under section 95 or 96 is excused from answering a question on the ground that the answer may incriminate the person or render the person liable to any penalty or forfeiture.

(2)

The testimony of a person examined is not admissible as evidence in criminal proceedings against the person, except on a charge of perjury in relation to the testimony.

Section 97: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

98 Expenses in relation to inquiries

The EPA or the chief executive may pay, or a District Court Judge may order the EPA or the chief executive to pay, to any person who has appeared before the EPA, or the chief executive, or an enforcement officer under section 95 or the District Court Judge under section 96 the sum that in the EPA’s, or the chief executive’s, or the Judge’s opinion, as the case may be, is reasonable in respect of that person’s travelling and other expenses.

Section 98: substituted, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

99 Obligation to maintain confidentiality

(1)

This section applies—

(a)

to the chief executive, the EPA, an enforcement officer, and any other person who performs functions or exercises powers of the chief executive, the EPA, or an enforcement officer under this Part and Part 5; and

(b)

at the time during which, and any time after which, those functions are performed or those powers are exercised.

(2)

A person to whom this section applies—

(a)

must keep confidential all information that comes into the person’s knowledge when performing any function or exercising any power under this Part and Part 5; and

(b)

may not disclose any information specified in paragraph (a), except—

(i)

with the consent of the person to whom the information relates or of the person to whom the information is confidential; or

(ii)

to the extent that the information is already in the public domain; or

(iii)

for the purposes of, or in connection with, the exercise of powers conferred by this Part or for the administration of this Act; or

(iiia)

for the purposes of, or in connection with, reporting requirements of the Public Finance Act 1989; or

(iv)

as provided under this Act or any other Act; or

(v)

in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or

(vi)

for the purpose of complying with any obligation under the Convention or the Protocol.

(3)

A person to whom this section applies commits an offence under section 130 if the person knowingly contravenes this section.

(4)

Nothing in subsection (2) may be treated as prohibiting the chief executive or the EPA from—

(a)

providing or publishing general guidance in relation to the operation of this Part and Part 5; or

(b)

with the prior approval of the Minister, preparing and supplying statistical information to any person in a form that does not identify any individual; or

(c)

providing information to any person about whether any forest land is considered by the chief executive or the EPA to be pre-1990 forest land, pre-1990 offsetting forest land, or post-1989 forest land, or has been declared to be exempt land by the chief executive or the EPA.

Section 99: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 99(1)(a): substituted, on 5 December 2011, by section 16(1) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 99(2)(b)(iii): amended, on 5 December 2011, by section 16(2) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 99(2)(b)(iiia): inserted, on 5 December 2011, by section 16(3) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 99(2)(b)(vi): amended, on 1 January 2013, by section 42(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 99(4): amended, on 5 December 2011, by section 16(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 99(4)(c): amended, on 1 January 2013, by section 42(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 99(4)(c): amended, on 5 December 2011, by section 16(4) of the Climate Change Response Amendment Act 2011 (2011 No 15).

100 Power of entry for investigation

(1)

An enforcement officer may enter land or premises (excluding any dwellinghouse or marae) at any reasonable time during the ordinary hours of business to investigate whether a person is complying with this Part or Part 5.

(2)

During an investigation, an enforcement officer may—

(a)

require the production of, inspect, and copy any documents:

(b)

take samples of water, air, soil, organic matter, or any other thing:

(c)

carry out surveys, investigations, tests, inspections, or measurements (including those that involve leaving measuring equipment on the land or premises):

(d)

demand from the occupier any other information that the enforcement officer may reasonably require for the purpose of determining whether a person is complying with this Part and Part 5.

(3)

An enforcement officer who exercises the power of investigation under this section must give the occupier or owner reasonable notice of the enforcement officer’s intention to enter the land or premises, unless doing so would defeat the purpose of the entry.

(4)

A notice given under subsection (3) must specify—

(a)

when entry is to be made; and

(b)

the purpose for which the entry is required; and

(c)

that the entry is authorised under this section.

(5)

An enforcement officer who exercises the power of investigation under this section may be accompanied by any person or persons reasonably necessary to assist the enforcement officer with the investigation.

(6)

A person who provides assistance under subsection (5) may exercise the powers provided to enforcement officers under subsection (2)(a) to (c).

(7)

Nothing in this section limits the privilege against self-incrimination.

Section 100: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 100(1): amended, on 8 December 2009, by section 35 of the Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 (2009 No 57).

101 Applications for warrants

(1)

A District Court Judge, Justice of the Peace, Community Magistrate, or Registrar of any court who, on written application made on oath by an enforcement officer authorised by the EPA, is satisfied that there are reasonable grounds to believe that there are in or on or under or over any land, premises, dwellinghouse, or marae any documents or other records or things (including samples) that may be evidence of the commission of an offence under section 129, 132, or 133 may issue a warrant authorising the entry and search of the land, premises, dwellinghouse, or marae.

(2)

Every search warrant may authorise the enforcement officer executing the warrant to do any of the following things:

(a)

enter and search the land, premises, dwellinghouse, or marae, at any time that is reasonable in the circumstances during the ordinary hours of business, within—

(i)

10 working days of the date of the warrant; or

(ii)

if the Judge or other person issuing the warrant is satisfied that special circumstances justify a longer period, any period of up to 20 working days that is specified in the warrant:

(b)

seize any document or other thing that the enforcement officer has reasonable cause to suspect may be evidence of the commission of an offence under section 129, 132, or 133:

(c)

take samples of water, air, soil, organic matter, or any other thing:

(d)

use the assistance of any person that is reasonably necessary in the circumstances:

(e)

use any force to enter (whether by breaking doors or otherwise) that is reasonable in the circumstances:

(f)

carry out surveys, investigations, tests, inspections, or measurements (including those that involve leaving measuring equipment on the land or premises).

(3)

An enforcement officer may not enter a dwellinghouse or marae unless that enforcement officer is accompanied by a constable.

(4)

A person who provides assistance under subsection (2)(d) may exercise the powers provided to enforcement officers under subsection (2)(a), (b), (c), and (f).

Section 101: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Section 101(1): amended, on 5 December 2011, by section 19 of the Climate Change Response Amendment Act 2011 (2011 No 15).

Section 101(2)(a)(i): amended, on 1 January 2013, by section 43(1) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 101(2)(a)(ii): amended, on 1 January 2013, by section 43(2) of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 (2012 No 89).

Section 101(3): amended, on 1 October 2008, pursuant to section 116(a)(ii) of the Policing Act 2008 (2008 No 72).

102 Proof of authority must be produced

If powers are exercised under section 100 or 101, an enforcement officer must, on initial entry, and if asked by the occupier at any time afterward, produce for inspection—

(a)

the enforcement officer’s warrant of authorisation and evidence of his or her identity; and

(b)

any notice given under section 100(3) or a search warrant issued under section 101, as the case may be.

Section 102: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

103 Notice of entry

(1)

If, when powers are exercised under section 100 or 101, the occupier is not present, the enforcement officer must, in a prominent place, attach a written notice that states—

(a)

the date and time of the entry or search; and

(b)

the purpose of the entry or search; and

(c)

the name and phone number of the enforcement officer; and

(d)

the right, under the Official Information Act 1982, to access documentation relating to the application for a search warrant and the exercise of the search power; and

(e)

an address at which inquiries may be made.

(2)

If the enforcement officer removes, or has removed, any document or other thing from any land, premises, dwellinghouse, or marae, the enforcement officer must hand to the occupier, or attach in a prominent place, a notice that—

(a)

lists all of the items taken; and

(b)

states—

(i)

where those items are being held; and

(ii)

if they are being held in 2 or more places, which items are being held at which place; and

(c)

provides information about—

(i)

the procedures to be followed to initiate a claim that privileged or confidential material has been seized; and

(ii)

access to and the disposition of seized items.

Section 103: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

104 Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under this Part and Part 5

No document or other information obtained from a person under section 100 or 101 is admissible against that person in any criminal or civil proceedings, other than proceedings for an alleged breach of an obligation imposed under this Part or Part 5.

Section 104: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

105 Return of items seized

Section 199 of the Summary Proceedings Act 1957 applies, with the necessary modifications, to any property seized or taken by an enforcement officer as if—

(a)

references in that section to a constable were references to an enforcement officer; and

(b)

the reference in that section to section 198 of that Act were a reference to section 100 or 101 of this Act.

Section 105: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

106 Protection of persons acting under authority of this Part

No enforcement officer or person called upon to assist an enforcement officer who does an act, or omits to do an act, when performing a function or exercising a power conferred on that person by this Part is under any civil or criminal liability in respect of the act or omission, unless the person has acted, or omitted to act, in bad faith or without reasonable cause.

Section 106: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

Emissions rulings

Heading: added, on 26 September 2008, by section 50 of the Climate Change Response (Emissions Trading) Amendment Act 2008 (2008 No 85).

107 Applications for emissions rulings

(1)

A person may apply to the EPA for an emissions ruling in respect of 1 or more of the following matters:

(a)

whether something that the person—

(i)

is doing is an activity listed in Schedule 3 or 4; or

(ii)

proposes to do would be an activity listed in Schedule 3 or 4:

(b)

whether the person is a participant in respect of an activity listed in Schedule 3 or is eligible to register as a participant in respect of an activity listed in Schedule 4:

(c)

the correct application of any provision contained in regulations made under section 163(1)(a) to (c) in respect of a particular matter specified in the person’s application:

(d)

any other matters prescribed in regulations made under section 168(1)(b).

(2)

Every application under subsection (1) must—

(a)

be in the prescribed form; and

(b)

state the name and address of the applicant; and

(c)

specify the matter on which the applicant seeks a ruling; and

(d)

specify the applicant’s opinion as to what the ruling should be; and

(e)

contain, or have attached, all information that is relevant to a proper consideration of the application; and

(f)

be accompanied by the prescribed fee (if any).

(3)

The EPA may request any further information from an applicant that the EPA considers necessary to assist in the consideration of the application.

Section 107: added, on 26 September 2008, by section 50 of the