1 Title
2 Commencement
3 Principal Act amended
4 New section 2A inserted
2A Application of Schedules 3 and 4
5 Purpose
6 Interpretation
7 Minister of Finance may give directions to Registrar regarding accounts and units
8 Registrar must give effect to directions of Minister of Finance
9 Minister of Finance may obtain information from inventory agency and Registrar
10 Purpose of Registry
11 Appointment of Registrar
12 Section 14 repealed
13 Registrar must allocate unique numbers
14 Carry-over of units
15 Commitment period reserve
16 Form and content of unit register
17 Opening holding accounts
18 Closing holding accounts
19 Transfer of units
20 New sections 18CA, 18CB, 18CC, and 18CD inserted
18CA Effect of surrender, retirement, cancellation, and conversion
18CB Restriction on surrender of assigned amount units
18CC Restriction on surrender of assigned amount units issued during first commitment period
18CD Effect of surrendering restricted assigned amount units
21 New section 19 substituted
19 Retirement of Kyoto units by the Crown
22 Transactions must be registered
23 Registration procedure
24 New section 21AA inserted
21AA Registration procedure for New Zealand units and approved overseas units
25 Defective applications
26 Receiving units from overseas registries
27 New section 23A inserted
23A Receiving New Zealand units and approved overseas units from overseas registries
28 Priority of registration
29 Correction of unit register
30 Unit register must be open for search
31 New section 27 substituted
27 Information accessible by search
32 Recovery of fees
33 Crown or Registrar not liable in relation to searches in certain cases
34 New heading and sections 30E to 30K inserted
Miscellaneous provisions
30E Conversion of New Zealand units into designated assigned amount units for sale overseas or cancellation
30F Restrictions on certain New Zealand units allocated to landowners of pre-1990 forest land
30G Regulations relating to Part 2
30H Procedure for certain regulations relating to units
30I Incorporation by reference in regulations made under section 30G
30J Signing false declaration with respect to regulations made under section 30G
30K Providing false or misleading information to Registrar
35 New Part 3 heading substituted
36 Primary functions of inventory agency
37 Inventory agency under direction of Minister responsible for inventory agency
38 New heading substituted
39 Authorisation of inspectors
40 Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases
41 Limitation on power of entry under section 37
42 New section 45A inserted
45A Protection of persons acting under authority of this Part
43 Obstructing, hindering, resisting, or deceiving person exercising power under Act
44 Signing false declaration
45 Section 48A repealed
46 Reporting
47 Regulations
48 New section 51 substituted
51 Incorporation by reference in regulations made under section 50
49 Inventory agency must report to Minister responsible for inventory agency on certain matters before certain regulations are made
50 New Parts 4 and 5 inserted
Part 4New Zealand greenhouse gas emissions trading scheme
Subpart 1—Participants
54 Participants
55 Associated persons
56 Registration as participant in respect of activities listed in Schedule 3
57 Applications to be registered as participant in respect of activities listed in Schedule 4
58 Removal from register of participants in respect of activities listed in Schedule 4
59 Removal from register of participants in respect of activities listed in Schedules 3 and 4
60 Exemptions in respect of activities listed in Schedule 3
61 Participants must have holding accounts
62 Monitoring of emissions and removals
63 Liability to surrender units to cover emissions
64 Entitlement to receive New Zealand units for removal activities
65 Annual emissions returns
66 Quarterly returns for other removal activities
67 Retention of emissions records
Subpart 2—Issuance and allocation of New Zealand units
68 Interpretation
69 Issuance of New Zealand units
70 Notification of intention regarding New Zealand units
71 Allocation in respect of pre-1990 forest land
72 Minister to appoint person to hold certain New Zealand units
73 Allocation to industry
74 Establishment of Innovation Fund
75 Allocation to fishing vessel operators
76 Allocation to agriculture
77 Other matters with respect to allocation plans
78 Draft allocation plans
79 Governor-General may issue allocation plans
80 Correction and publication of allocation plans
81 Content of criteria and methodologies in allocation plans
82 Determinations made in accordance with allocation plan
83 Minister may require further information after determination made
84 New determination made in accordance with allocation plan
85 Effect of new determination
86 Balance of units at end of true-up period or other balance date
Subpart 3—Chief executive
General administrative provisions
87 Functions of chief executive
88 Directions to chief executive
89 Chief executive to publish certain information
90 Chief executive may prescribe form of certain documents
91 Approval of unique emissions factors
92 Recognition of verifiers
Verification and inquiry
93 Appointment of enforcement officers
94 Power to require information
95 Power to inquire
96 Inquiry before District Court Judge
97 No criminal proceedings for statements under section 95 or 96
98 Expenses in relation to inquiries by chief executive or District Court Judge
99 Obligation to maintain confidentiality
100 Power of entry for investigation
101 Applications for warrants
102 Proof of authority must be produced
103 Notice of entry
104 Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under this Part and Part 5
105 Return of items seized
106 Protection of persons acting under authority of this Part
Emissions rulings
107 Applications for emissions rulings
108 Matters in relation to which chief executive may decline to make emissions rulings
109 Making of emissions rulings
110 Notice of emissions rulings
111 Confirmation of basis of emissions rulings
112 Notifying chief executive of changes relevant to or failure to comply with emissions rulings
113 Correction of emissions rulings
114 Cessation of emissions rulings
115 Appeal from decisions of chief executive
116 Effect of emissions rulings
117 Chief executive may publish certain aspects of emissions rulings
Emissions returns
118 Submission of final emissions returns
119 Power to extend date for emissions returns
120 Amendment to emissions returns by chief executive
121 Assessment if default made in submitting emissions return
122 Amendment or assessment presumed to be correct
123 Effect of amendment or assessment
124 Reimbursement of units by chief executive
125 Repayment of units by persons in case of error
126 Obligation to surrender or repay units not suspended by review or appeal
127 Time bar for amendment of emissions returns
128 Amendments and assessments made by electronic means
Subpart 4—Offences and penalties
129 Strict liability offences
130 Offence for breach of section 99
131 Offence for failure to provide information or documents
132 Other offences
133 Evasion or similar offences
134 Penalty for failing to surrender or repay units
135 Reductions in penalty
136 Additional penalty for knowing failure to comply
137 Interest for late payment
138 Obligation to pay penalty not suspended by appeal
139 Liability of body corporate
140 Liability of directors and managers of companies
141 Liability of companies and persons for actions of director, agent, or employee
142 Limitation period for commencement of proceedings
143 Evidence in proceedings
Subpart 5—Review and appeal provisions
144 Request for review of decisions
145 Right of appeal to District Court
146 Appeals to High Court on questions of law only
Subpart 6—Miscellaneous provisions
147 Giving of notices by chief executive
148 Giving of notices to chief executive
149 Sharing information
150 Formation of consolidated group
151 Changes to consolidated groups
152 Nominated entities
153 Effect of being member of consolidated group
154 Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4
155 Ceasing to be member of consolidated group
156 Effect of ceasing to be member of consolidated group
157 Joint activities
158 Compensation for participants where public works result in liability to surrender units
159 Chief executive must surrender or repay units for person who is in default or insolvent
160 Reviews of operation of emissions trading scheme
161 Appointment and conduct of review panel
162 Regulations adding further activity to Part 2 of Schedule 4
163 Regulations relating to methodologies and verifiers
164 Regulations relating to unique emissions factors
165 Regulations relating to offsetting of pre-1990 forest land
166 Procedure for regulations relating to methodologies, verification, unique emissions factors, and offsetting
167 Regulations relating to fees and charges
168 Other regulations
169 Incorporation by reference in regulations made under section 163
170 Effect of amendments to, or replacement of, material incorporated by reference in regulations
171 Proof of material incorporated by reference
172 Effect of expiry of material incorporated by reference
173 Requirement to consult
174 Public access to material incorporated by reference
175 Acts and Regulations Publication Act 1989 not applicable to material incorporated by reference
176 Application of Regulations (Disallowance) Act 1989 to material incorporated by reference
177 Application of Standards Act 1988 not affected
178 Recovery of fees or charges
Part 5Sector specific provisions
Subpart 1—Forestry sector
General
179 Forest land to be treated as deforested in certain cases
Pre-1990 forest land
180 Participant in respect of pre-1990 forest land
181 When deforestation to be treated as occurring in respect of pre-1990 forest land
182 Offsetting in relation to pre-1990 forest land
183 Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land
184 Exemptions for deforestation of land with tree weeds
185 Effect of exemption
186 Methodology for pre-1990 forest land
Post-1989 forest land
187 Conditions on registration as participant in respect of certain activities relating to post-1989 forest land
188 Registration as participant in respect of post-1989 forest land
189 Emissions returns for post-1989 forest land activities
190 Special rules regarding surrender of units in relation to post-1989 forest land
191 Ceasing to be registered as participant in respect of post-1989 forest land
192 Transfer of registration as participant in respect of post-1989 forest land
193 Transfer of registration on expiry or termination of registered forestry right, registered lease, or Crown conservation contract in relation to post-1989 forest land
194 Information about status of forest land
Post-1989 forest land and pre-1990 forest land
195 Notification of status of forest land
Transitional provisions
196 First emissions return for pre-1990 forest land activities
197 First emissions return for post-1989 forest land activities
Subpart 2—Liquid fossil fuels sector
198 Registration as participant by purchasers of jet fuel
199 Historical information sufficient to satisfy chief executive
200 Effect of purchasing less than the threshold level of obligation jet fuel
201 Effect of registration by purchasers of jet fuel
202 Activities added to Part 2 of Schedule 3
203 Treatment of obligation fuels
Subpart 3—Stationary energy sector
204 Participant with respect to mining coal or natural gas
205 Mining natural gas in exclusive economic zone and continental shelf
206 Obligation with respect to combusting used oil, waste oil, and waste
207 Obligation with respect to mining coal
208 Purchase of coal or natural gas from wholly owned subsidiary of Part 3 of Schedule 3 participant
209 Registration as participant by purchasers of coal or natural gas
210 Historical information sufficient to satisfy chief executive
211 Effect of purchasing less than threshold level of coal or natural gas
212 Effect of registration by purchasers of coal or natural gas
Subpart 4—Agriculture
213 Registration as participants by persons carrying out activities listed in Part 5 of Schedule 4
214 Historical information sufficient to satisfy chief executive
215 Effect of purchasing or farming less than threshold level
216 Effect of registration by farmers
Subpart 5—Transitional provisions
217 Transitional provision for penalties
218 Transitional provision for voluntary reporting
219 Transitional provision for mandatory reporting by certain participants
220 Additional transitional provision for mandatory reporting for subpart 3 of Part 2 of Schedule 4 participants
221 Additional transitional provisions for Part 3 of Schedule 4 participants
222 Transitional provisions regarding regulations that replace existing unit register regulations
Part 6Other matters
223 Establishment of Household Fund
224 Gazetting of targets
51 Regulations upon which consultation has been undertaken before commencement of this section
52 New Schedules 3 and 4 added
53 Process to apply before offsetting provisions may be commenced
Consequential amendments
54 Amendments to Forests Act 1949
55 Amendments to Forestry Rights Registration Act 1983
56 Amendments to Summary Proceedings Act 1957
57 Amendments to Income Tax Act 2004
58 New heading and section CB 29 inserted
Emissions trading scheme
CB 29 Disposal of ETS units
59 New section CW 3B inserted
CW 3B Pre-1990 forest land units: emissions trading scheme
60 New section CX 44F inserted
CX 44F Issue of post-1989 forest land units
61 New heading and sections DB 46 and DB 47 inserted
DB 46 Acquisition of ETS units
DB 47 Surrender of pre-1990 forest land units for post-1989 forest land deforestation
62 Meaning of trading stock
63 Valuation of excepted financial arrangements
64 What is an excepted financial arrangement?
65 New section GD 16 inserted
GD 16 Disposals of ETS units at below market value
66 Definitions
67 Amendments to Income Tax Act 2007
68 New heading and section CB 36 inserted
CB 36 Disposal of ETS units
69 New section CW 3B inserted
70 New section CX 48B inserted
CX 48B Issue of post-1989 forest land units
71 New heading and sections DB 60 and DB 61 inserted
DB 60 Acquisition of ETS units
DB 61 Surrender of pre-1990 forest land units for post-1989 forest land emissions
72 Meaning of trading stock
73 Valuation of excepted financial arrangements
74 What is an excepted financial arrangement?
75 New section GC 4B inserted
GC 4B Disposals of ETS units at below market value
76 Definitions
77 Goods and Services Tax Act 1985
78 Interpretation
79 Zero-rating of goods
80 Zero-rating of services
81 Amendments to Personal Property Securities Act 1999
ScheduleNew Schedules 3 and 4 added
Legislative history
The Parliament of New Zealand enacts as follows: