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

  • “(b) applies subject to sections 217 to 221.

  “(2) Part 1 of Schedule 3 and Parts 1 and 3 of Schedule 4 apply on and after 1 January 2008.

  “(3) 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  “(5) Subpart 1 of Part 5 of Schedule 3 applies on and after 1 January 2011, unless repealed under subsection (10) before that date.

  “(6) Subpart 3 of Part 5 of Schedule 3 applies on and after 1 January 2011, unless repealed under subsection (11) before that date.

  “(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.

  “(8) Subpart 2 of Part 5 of Schedule 3 applies on and after 1 January 2011 if the Governor-General makes an Order in Council to that effect.

  “(9) Subpart 4 of Part 5 of Schedule 3 applies on and after 1 January 2011 if the Governor-General makes an Order in Council to that effect.

  “(10) If the Governor-General makes an Order in Council under subsection (8), then subsection (5) and subpart 1 of Part 5 of Schedule 3 expire and are repealed.

  “(11) If the Governor-General makes an Order in Council under subsection (9), then subsection (6) and subpart 3 of Part 5 of Schedule 3 expire and are repealed.

  “(12) If, by 30 June 2010, the Governor-General does not make an Order in Council under subsection (8) that applies subpart 2 of Part 5 of Schedule 3, then that subpart and subsection (8) expire and are repealed on 30 June 2010.

  “(13) If, by 30 June 2010, the Governor-General does not make an Order in Council under subsection (9) that applies subpart 4 of Part 5 of Schedule 3, then that subpart and subsection (9) expire and are repealed on 30 June 2010.

  “(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) Subpart 1 of Part 5 of Schedule 4 applies on and after a date no earlier than 1 January 2011 to be appointed by the Governor-General by Order in Council.

  “(16) Subpart 2 of Part 5 of Schedule 4 applies on and after a date no earlier than 1 January 2011 to be appointed by the Governor-General by Order in Council.

  “(17) If, by 31 December 2012, the Governor-General does not make an Order in Council under subsection (15) that applies subpart 1 of Part 5 of Schedule 4, then that subpart and subsection (15) expire and are repealed on 31 December 2012.

  “(18) If, by 31 December 2012, the Governor-General does not make an Order in Council under subsection (16) that applies subpart 2 of Part 5 of Schedule 4, then that subpart and subsection (16) expire and are repealed on 31 December 2012.

  “(19) If, by 31 December 2012, the Governor-General does not make an Order in Council under subsection (15) or (16) that applies subpart 1 or 2 of Part 5 of Schedule 4, as the case may be, then subpart 4 of Part 5 (consisting of sections 213 to 216) expires and is repealed on 31 December 2012.”

• “(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 greenhouse gas emissions by assisting New Zealand to meet its international obligations under the Convention and the Protocol, and by reducing New Zealand's net emissions below business-as-usual levels.

• “(2) For the purposes of this section, business-as-usual levels means the levels of New Zealand's greenhouse gas emissions, estimated by a Minister or chief executive with powers or functions under this Act at any particular point in time, as if the greenhouse gas emissions trading scheme provided for under this Act had not been implemented.”

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

“allocation plan means an allocation plan issued under section 79 or 80

“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

“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

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

“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

“chief executive, in relation to a Part, means the chief executive of the department that is, with the authority of the Prime Minister, responsible for the administration of the Part

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

“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

“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 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

“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

“draft allocation plan means a draft allocation plan prepared under section 78

“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 means—

• “(a) an annual emissions return submitted under section 65; or

• “(b) an emissions return submitted under section 66; or

• “(c) a final emissions return submitted under section 118; or

• “(d) an emissions return submitted under section 187, 189, 191, or 193

“entity, in relation to a group, means a reporting entity or reporting entity’s subsidiary, within the meaning of section 2(1) of the Financial Reporting Act 1993

“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

“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

“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 when the forest species reach maturity 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 at maturity 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 at maturity 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

“group has the same meaning as in section 2(1) of the Financial Reporting Act 1993

“import has a corresponding meaning to importation 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

“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

“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 2(2) 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

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

“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, in relation to a Part of this Act, means the Minister who is, under the authority of any warrant or under the authority of the Prime Minister, responsible for the administration of the Part

“Minister responsible for the administration of this Act 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

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

“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

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

“participant means a person who is a participant under section 54

“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 between 1 January 1990 and 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

• “(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)

“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

“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 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

  • “(ii) includes a lease registered under the Land Transfer (Computer Registers and Electronic Lodgement) Amendment Act 2002:

• “(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

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

“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

“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

“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

“waste means any thing that—

• “(a) has been disposed of or discarded; and

• “(b) includes waste that is defined by its composition or source (for example, organic waste, electronic waste, or construction and demolition waste)

“year means a calendar year ending on 31 December”.

“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)”.

“inventory agency means the chief executive of the department that is, with the authority of the Prime Minister, responsible for the administration of Part 3”.

• “(c) any other prescribed registry”.

“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)”.

“unit means a Kyoto unit, a New Zealand unit, or an approved overseas unit”.

• “(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) Pre-1990 forest land, in respect of which conversion to land that is not forest land had commenced prior to 31 December 2007, is to be treated as deforested on 31 December 2007 if, on that date, the land had—

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

  • “(b) no other merchantable timber from exotic forest species.”

• “(vii) a surrender account:

• “(viii) a conversion account:”.

• “(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) section 30F(3) applies.”

• “(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.”

• “(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.”

• “(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.”

• “(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”.

• “(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 chief executive is satisfied that an account holder no longer requires a holding account, make a written submission to the chief executive, before the account is closed, regarding the account holder’s need to retain the account.”

“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 direction from the Minister of Finance, to—

  • “(a) a retirement account or a cancellation account; or

  • “(b) a participant’s holding account, if the direction was given on receipt of a notice from the chief executive under section 124 (which relates to reimbursement of Kyoto units).

  “(4) A New Zealand unit or an approved overseas unit that is transferred to a surrender account may be further transferred only in accordance with a direction from the Minister of Finance given on receipt of a notice from the chief executive under section 124 (which relates to reimbursement of New Zealand units or approved overseas units).

  “(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).

“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.

“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.

“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 chief executive of the department responsible for the administration of Part 4 that the transfer has been reversed.

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

  • “(a) the chief executive of the department responsible for the administration of Part 4 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 chief executive of the department responsible for the administration of Part 4 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).”

“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.”

• “(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 of Finance 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 of Finance; or

    • “(ii) in the case of an application, the account holder.”

• “(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 of Finance; or

  • “(ii) in the case of an application, the account holder.”

“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 the Minister of Finance, 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 of Finance 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 of Finance; 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 of Finance; or

    • “(ii) in the case of an application, the account holder.”

“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.”

• “(1) A direction given by the Minister of Finance 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.”

• “(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.”

• “(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 of Finance, if the Registrar registered the transaction following receipt of a direction from the Minister of Finance; or

  • “(b) the account holder who applied to register the transaction.”

• “(ii) the international transaction log (if required to do so); and

• “(iii) an overseas registry (if required to do so).”.

• “(2) The Registrar is not required to make publicly available any information that is not listed in section 27.”

“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; 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).”

• “(ia) an overseas registry; or

• “(ib) a third party; or”.

“Miscellaneous provisions

“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).

  “(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.

“30F Restrictions on certain New Zealand units allocated to landowners of pre-1990 forest land

• “(1) This section applies to any New Zealand units referred to in section 71(2)(b)(ii) that are allocated in accordance with an allocation plan made under section 79 that relates to those units.

  “(2) Despite anything in section 18C or 30E, the Registrar may not transfer any New Zealand units to which this section applies to a surrender account or a conversion account until—

  • “(a) 1 January 2013; or

  • “(b) any later date specified in the allocation plan.

  “(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.

“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.

  “(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.

  “(4) Any regulations made under subsection (1) must be consistent with the Convention and the Protocol.

“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) or (k), 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 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), or (k).

“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 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.

“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.

“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.”

“Part 3
“Inventory agency”.

“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.”

• “(5) Regulations made under subsection (1) or (2) may be made in respect of different persons or classes of persons.”

“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 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.”

“Part  4
“New Zealand greenhouse gas emissions trading scheme

“Subpart 1—Participants

“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 or 204 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 or 193 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 or 204 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, 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 chief executive 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 Internet site of the department of the chief executive, and in any other form that the chief executive considers appropriate.

“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) a person engaged in a joint activity in accordance with section 157; or

    • “(iii) a member of a consolidated group under section 150, if the associated person qualifies to be a member of a consolidated group.

“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 chief executive 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 chief executive 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 chief executive 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 chief executive 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 chief executive 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 chief executive must, as soon as practicable after receiving a notice under subsection (1)(a),—

  • “(a) enter on a register kept by the chief executive 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 chief executive receives a notice under subsection (1)(a) from a person whose name is already on the register kept in accordance with subsection (3), the chief executive 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.

“57 Applications 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 chief executive 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 chief executive 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 chief executive within 10 working days of receiving an account number from the Registrar.

  “(4) Following the receipt of an application under subsection (1), the chief executive 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 chief executive 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.

  “(5) The chief executive registers a person by entering on a register kept by the chief executive 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 chief executive 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), 209(2)(a), or 213(2)(a), as the case may require.

  “(7) If the chief executive receives an application under subsection (1) in respect of an activity listed in Part 2, 3, 4, or 5 of Schedule 4, then the chief executive must, within 20 working days of receiving the application,—

  • “(a) decline the application; or

  • “(b) register the applicant under subsection (5), unless the chief executive 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 chief executive 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), 209(2)(b), or 213(2)(b).

  “(9) If the chief executive 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 chief executive 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.

“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 chief executive 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 chief executive 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), 209(3)(a), or 213(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 chief executive 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), 209(3)(b), or 213(3)(b).

“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 chief executive as soon as practicable if the person ceases, or will cease, to carry out the activity.

  “(2) The chief executive must, after receiving notice under subsection (1), or otherwise being satisfied that the person has ceased to carry out the activity,—

  • “(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), 209(3)(a), or 213(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, 211, and 215.

“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) an activity; or

  • “(b) part of an activity; or

  • “(c) a proportion of the emissions from an activity; or

  • “(d) a combination of the matters specified in paragraphs (a) to (c).

  “(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 not 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.

“61 Participants must have holding accounts

• “(1) A participant must have a holding account for the purpose of—

  • “(a) surrendering units as required under this Part and Part 5; and

  • “(b) receiving New Zealand units to which the participant becomes 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 person—

  • “(a) who applies to open a holding account in accordance with section 56(1)(b) or 57(3); and

  • “(b) whose name has been entered on a register kept for the purposes of section 56 or 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 chief executive 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 chief executive under section 92; and

  • “(d) keep records of the data or information and calculations in the prescribed format (if any).

“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 chief executive.

“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 is entitled to receive New Zealand units, the chief executive must notify the Minister of Finance of—

  • “(a) the number of New Zealand units to which the participant is entitled; and

  • “(b) the details of the participant’s holding account.

  “(3) As soon as practicable after receiving notification under subsection (2), the Minister of Finance must direct the Registrar to transfer the number of New Zealand units to which the participant is entitled to the participant’s holding account.

  “(4) Subject to subsection (5), if a participant submits an emissions return to the chief executive containing an assessment of the participant’s entitlement to receive New Zealand units, the chief executive must, within 20 working days of receiving the emissions return, notify the Minister of Finance under subsection (2) of the number of New Zealand units contained in the assessment.

  “(5) Subsection (4) does not apply if, within 20 working days of the chief executive receiving the emissions return, the chief executive or an enforcement officer has served notice on the participant under section 94 requiring the participant to provide information in respect of any matter contained in the emissions return.

“65 Annual emissions returns

• “(1) Between 1 January and 31 March in each year, a participant must submit an annual emissions return to the chief executive in respect of each of the activities listed in Schedule 3 or Part 2, 3, 4, or 5 of Schedule 4 that the participant 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.

  “(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 30 April, surrender the number of units listed in the participant’s assessment under subsection (2)(c)(i).

  “(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).

“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.

“67 Retention of emissions records

• “(1) A participant must keep sufficient records to enable the chief executive 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.

“Subpart 2—Issuance and allocation of New Zealand units

“68 Interpretation

• In this subpart,—

  “determination means a determination made by the Minister under section 82(7)(b)

  “draft determination means a draft determination made by the Minister under section 82(4)

  “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 specified in this subpart, and in an allocation plan, for receiving an allocation of New Zealand units free of charge

  “existing determination means an existing—

  • “(a) determination; or

  • “(b) new determination

  “new determination means a determination made by the Minister under section 84

  “person includes a person or class of persons or, if the context requires, a person representing a class of persons

  “revoked determination means an existing determination that has been revoked.

“69 Issuance of New Zealand units

• “(1) Subject to subsection (2), 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 with 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 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) prior to 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) make a copy of the direction accessible via the Internet site of the department of the chief executive responsible for the administration of this Act; and

  • “(c) present a copy of the direction to the House of Representatives.

  “(5) The copies 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 (c).

“70 Notification of intention regarding New Zealand units

• “(1) The Minister must recommend that the Governor-General make an Order in Council containing notification of the Crown's intentions to issue and sell or allocate free of charge New Zealand units at least 9 months before the end of each of the following periods:

  • “(a) the first commitment period and each subsequent commitment period (if any); and

  • “(b) if there is no subsequent commitment period,—

    • “(i) the 5-year period commencing on 1 January 2013; or

    • “(ii) each subsequent 5-year period after the period specified in subparagraph (i).

  “(2) The notification contained in the Order in Council made under subsection (1) must include—

  • “(a) the number of New Zealand units that will be issued under section 69; and

  • “(b) the time frames for issuance of New Zealand units under section 69; and

  • “(c) the intended time frame for any allocation of New Zealand units free of charge, or the sale of New Zealand units and the method of sale.

  “(3) A copy of the report under section 160(4) must be presented to the House of Representatives before an Order in Council may be made under this section.

  “(4) The Minister must make a copy of any Order in Council made under subsection (1) accessible via the Internet site of the department of the chief executive responsible for the administration of this Act.

  “(5) The Crown is not bound by the notification contained in any Order in Council made under subsection (1) to make any decisions in relation to the issuance, sale, or allocation free of charge of New Zealand units.

“71 Allocation in respect of pre-1990 forest land

• “(1) The Minister must exercise his or her powers under this subpart to ensure that an allocation plan that provides for the matters in this section and section 78(2) is in force for the period from 1 January 2008 to 31 December 2021.

  “(2) The matters that an allocation plan must provide for are—

  • “(a) an allocation of New Zealand units free of charge to—

    • “(i) landowners, or former landowners, of eligible land who are eligible persons; or

    • “(ii) a person appointed in accordance with section 72 to hold any New Zealand units allocated in respect of the eligible land covered in paragraph (c)(i)(A); and

  • “(b) a total number of New Zealand units available for allocation free of charge under the allocation plan consisting of—

    • “(i) 21 million New Zealand units in the period from 1 January 2008 to 31 December 2012, reduced by 1 New Zealand unit for each tonne of emissions that the Minister estimates will result from the activities specified in subsection (5) in that period; and

    • “(ii) 34 million New Zealand units in the period from 1 January 2013 to 31 December 2021, reduced by 1 New Zealand unit for each tonne of emissions that the Minister estimates will result from the activities specified in subsection (5) in that period; and

  • “(c) an allocation of New Zealand units free of charge consisting 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 that was transferred to the landowner, or former landowner, of the land—

      • “(A) after 31 October 2002; or

      • “(B) prior to 1 November 2002 if, since that date, ownership of any body corporate owning the land has changed in the manner and to the extent specified in the allocation plan:

    • “(iii) for any hectare of eligible land not covered in subparagraph (i) or (ii), the number of New Zealand units calculated in accordance with the following formula:

      	A=	B − C
      		D

      where

      A

      is the number of units for each hectare of eligible land not covered in subparagraph (i) or (ii)

      B

      is the total number of New Zealand units available for allocation under subsection (2)(b)

      C

      is the total number of New Zealand units to be allocated in accordance with subparagraph (i) and (ii)

      D

      is the number of hectares of eligible land not covered in subparagraph (i) or (ii).

  “(3) In addition to the matters provided for in subsection (2), an allocation plan—

  • “(a) must also specify 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)(c)(ii)(B); and

  • “(b) may specify, for the purposes of subsection (7), a date or event other than the settlement date upon which any or all eligible land is to be treated as transferred for the purposes of this section.

  “(4) Despite subsection (2)(c), the 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)(c)(iii).

  “(5) For the purposes of subsection 2(b)(i) and (ii), the activities are—

  • “(a) deforestation on exempt land; and

  • “(b) deforestation of 2 hectares or less of pre-1990 forest land for which no obligation to surrender units is imposed under this Act.

  “(6) An allocation plan that provides for the matters in this section may—

  • “(a) provide for the New Zealand units referred to in subsection (2)(b)(ii) to be allocated at any time; and

  • “(b) specify dates before which some or all of those New Zealand units may not be surrendered or converted by any person.

  “(7) For the purposes of this section, eligible land is to be treated as transferred on the settlement date, unless the allocation plan specifies another date or event upon which any or all eligible land is to be treated as transferred.

  “(8) For the purposes of this section, Crown forest licence land means eligible land subject to a Crown forestry licence under section 14 of the Crown Forest Assets Act 1989.

“72 Minister to appoint person to hold certain New Zealand units

• “(1) The Minister must, prior to making a determination in respect of eligible land covered by section 71(2)(c)(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) determine—

    • “(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) prior to issuing a notice under section 82(1) inviting persons to apply for an allocation of New Zealand units under an allocation plan providing for the matters in section 71, 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 covered by section 71(2)(c)(i)(A) on behalf of the person to be appointed under subsection (1).

“73 Allocation to industry

• “(1) The Minister must exercise his or her powers under this subpart to ensure that an allocation plan that provides for the matters in this section and section 78(2) is in force for each of the following periods—

  • “(a) the first commitment period:

  • “(b) each subsequent commitment period, but expiring no later than 31 December 2029:

  • “(c) if there is no subsequent commitment period,—

    • “(i) the 5-year period commencing on 1 January 2013; or

    • “(ii) each subsequent 5-year period after the period specified in subparagraph (i), but expiring no later than 31 December 2029.

  “(2) The matters that an allocation plan must provide for are—

  • “(a) an allocation of New Zealand units free of charge to persons who—

    • “(i) the Minister considers are likely to be trade-exposed; and

    • “(ii) meet any tests or thresholds that are specified in the allocation plan; and

    • “(iii) in any year or years specified in the allocation plan—

      • “(A) are participants in respect of an activity listed in Part 4 of Schedule 3 or Part 4 of Schedule 4, unless the person does not face any obligations under section 63 in respect of the emissions from the activity in any year for which the allocation plan is in force; or

      • “(B) as a result of the obligations imposed by this Act on participants who carry out an activity listed in Part 3 of Schedule 3, face increased costs in respect of the person's direct use of coal, natural gas, or geothermal steam, direct combustion of any used oil or waste oil for the purpose of generating electricity or industrial heat, or direct consumption of electricity; and

  • “(b) if the allocation plan is in force in any year from 1 January 2010 to 31 December 2018, a total number of New Zealand units available for allocation free of charge under the allocation plan, in each year that the allocation plan is in force, consisting of—

    • “(i) 90 New Zealand units for each 100 tonnes of emissions that the Minister is satisfied resulted from the persons specified in paragraph (a)—

      • “(A) carrying out any activity listed in Part 4 of Schedule 3 in 2005:

      • “(B) directly using any coal, natural gas, or geothermal steam in 2005:

      • “(C) directly combusting any used oil or waste oil for the purpose of generating electricity or industrial heat in 2005; and

    • “(ii) a number of New Zealand units that the Minister is satisfied is sufficient to compensate the persons specified in paragraph (a) for 90% of the electricity cost increase that the Minister estimates those persons would face, due to the obligation imposed by this Act on participants to surrender units, in the period for which the allocation plan is in force, as if those persons purchased and consumed the same amount of electricity per year in that period as those persons did in 2005; and

  • “(c) if the allocation plan is in force in any year from 1 January 2019 to 31 December 2029, a total number of New Zealand units available for allocation free of charge under the allocation plan that is equal to eleven-twelfths of N in 2019, and then declining in each subsequent year at a linear rate to reach a number equal to one-twelfth of N in 2029, where N equals the total number of New Zealand units available for allocation under paragraph (b) in 2018; and

  • “(d) the matters that the Minister must have regard to when considering if a person is likely to be trade-exposed, including (but not limited to)—

    • “(i) whether the person competes with a firm or firms that operate from outside New Zealand in respect of—

      • “(A) products the person sells into the New Zealand market; or

      • “(B) products the person exports into overseas markets; and

    • “(ii) if the person does compete with firms that operate from outside New Zealand, whether the person—

      • “(A) faces higher costs in respect of the person’s emissions than the firm or firms with which the person competes face in respect of their emissions; and

      • “(B) is unable to pass-on some or all of the person’s costs due to the competition the person faces.

  “(3) If, after 31 December 2018, a person becomes eligible for an allocation of New Zealand units in accordance with an allocation plan providing for the matters in this section, the allocation plan may provide for the matters in subsection (2)(c) as if the person had been eligible for an allocation of New Zealand units in accordance with an allocation plan providing for the matters in this section that was in force in 2018.

  “(4) Nothing in subsection (3) entitles a person who becomes an eligible person after 31 December 2018 to an allocation of New Zealand units free of charge in any year before the year in which the person becomes an eligible person.

“74 Establishment of Innovation Fund

• “(1) The Minister must establish a fund (the Innovation Fund) for the purpose of facilitating deployment of innovative technology that significantly reduces or avoids, or has the potential to significantly reduce or avoid, greenhouse gas emissions from the industrial sector, or a part of the industrial sector.

  “(2) The Innovation Fund consists of the New Zealand units allocated to it in accordance with subsection (4).

  “(3) The Minister—

  • “(a) must ensure that there is an Innovation Fund for the period from 1 January 2010 to 31 December 2012; and

  • “(b) may, following the completion of a review under section 160(1), continue the Innovation Fund for—

    • “(i) any subsequent commitment period following the first commitment period; or

    • “(ii) if there is no subsequent commitment period following the first commitment period,—

      • “(A) the 5-year period commencing on 1 January 2013; or

      • “(B) any subsequent 5-year period after the period specified in subsubparagraph (A); and

  • “(c) must disestablish the Innovation Fund no later than 31 December 2029.

  “(4) An allocation plan—

  • “(a) must provide for 150,000 of the New Zealand units available for allocation under the plan in each year from 1 January 2010 to 31 December 2012 to be allocated to the Innovation Fund; and

  • “(b) may, if the Innovation Fund is continued after 31 December 2012, provide for any number of New Zealand units available for allocation under the plan to be allocated to the Innovation Fund.

  “(5) The Minister may make grants of New Zealand units from the Innovation Fund.

  “(6) Grants under subsection (5) must be made available on a contestable basis—

  • “(a) to persons who meet the requirements of section 73(2)(a)(i) and—

    • “(i) meet the requirements of section 73(2)(a)(iii), but are not receiving an allocation of New Zealand units in accordance with an allocation plan; or

    • “(ii) carry out an activity listed in Part 4 of Schedule 3 or Part 4 of Schedule 4, but are not receiving an allocation of New Zealand units in accordance with an allocation plan in respect of that activity; or

    • “(iii) face cost increases in respect of the matters referred to in section 73(2)(a)(iii)(B), but are not receiving an allocation of New Zealand units in accordance with an allocation plan in respect of those costs; and

  • “(b) in accordance with any criteria the Minister considers appropriate.

  “(7) If in any year the number of New Zealand units in the Innovation Fund are not fully granted and the Innovation Fund—

  • “(a) is to continue in the following year, the remaining New Zealand units may be granted under subsection (5) in any subsequent year in which the Innovation Fund is continued; or

  • “(b) will not be continued in the following year, the remaining New Zealand units may be made available for allocation in accordance with an allocation plan that applies in that following year.

  “(8) In this section, allocation plan means an allocation plan providing for the matters in section 73.

“75 Allocation to fishing vessel operators

• “(1) The Minister must exercise his or her powers under this subpart to ensure that an allocation plan that provides for the matters in this section and section 78(2) is in force for the period from 1 January 2011 to 31 December 2013.

  “(2) The matters that an allocation plan must provide for are—

  • “(a) an allocation of New Zealand units free of charge to persons who—

    • “(i) are or were fishing vessel operators in any year or years specified in the allocation plan; and

    • “(ii) meet any tests or thresholds that are specified in the allocation plan; and

  • “(b) a total number of New Zealand units available for allocation under the allocation plan calculated in accordance with the following formula:

    A = 0.5 × B × 3

    where—

    A

    is the total number of New Zealand units available for allocation under the allocation plan

    B

    is the total number of tonnes of emissions that the Minister is satisfied resulted in 2005 from the consumption of obligation fuel by fishing vessels—

    • (a) required to be registered under section 103 of the Fisheries Act 1996; and

    • (b) registered under that section in 2005.

  “(3) For the purposes of this section,—

  “fishing vessel has the same meaning as in section 2(1) of the Fisheries Act 1996

  “fishing vessel operator means the operator of a fishing vessel that is required to be registered under section 103 of the Fisheries Act 1996

  “operator, in relation to a fishing vessel, means the person who, by virtue of ownership, a lease, a sublease, a charter, a subcharter, or otherwise, for the time being has lawful possession and control of the fishing vessel.

“76 Allocation to agriculture

• “(1) The Minister must exercise his or her powers this section and section 78(2) under this subpart to ensure that an allocation plan that provides for the matters in this section and section 78(2) is in force for each of the following periods—

  • “(a) the subsequent commitment period following the first commitment period (the second commitment period):

  • “(b) each subsequent commitment period following the second commitment period, but expiring no later than 31 December 2029:

  • “(c) if there is no second commitment period,—

    • “(i) the 5-year period commencing on 1 January 2013; or

    • “(ii) each subsequent 5-year period after the period specified in subparagraph (i), but expiring no later than 31 December 2029.

  “(2) The matters that an allocation plan must provide for are—

  • “(a) an allocation of New Zealand units free of charge to—

    • “(i) persons who—

      • “(A) meet any tests or thresholds that are specified in the allocation plan; and

      • “(B) subject to subsection (3), in any year or years specified in the allocation plan, are participants in respect of an activity listed in Part 5 of Schedule 3 or Part 5 of Schedule 4, or are not participants in respect of an activity listed in Part 5 of Schedule 3, but who farm, raise, grow, or keep ruminant animals, pigs, horses, or poultry for reward or for the purpose of trade in those animals or in animal material or animal products taken or derived from those animals, or who purchase, other than for on-selling, synthetic fertiliser containing nitrogen; or

    • “(ii) bodies corporate or trusts representing the persons specified in subparagraph (i)(B); and

  • “(b) if the allocation plan is in force in any year from 1 January 2013 to 31 December 2018, a total number of New Zealand units available for allocation free of charge under the allocation plan, in each year that the allocation plan is in force, consisting of 90 New Zealand units for each 100 tonnes of emissions that the Minister is satisfied resulted from the activities listed in Part 5 of Schedule 3 in 2005; and

  • “(c) if the allocation plan is in force in any year from 1 January 2019 to 31 December 2029, a total number of New Zealand units available for allocation free of charge under the allocation plan that is equal to eleven-twelfths of N in 2019, and then declining in each subsequent year at a linear rate to reach a number equal to one-twelfth of N in 2029, where N equals the number of New Zealand units available for allocation under paragraph (b) in 2018.

  “(3) Despite subsection (2)(a)(i)(B), an allocation plan may only provide for an allocation of New Zealand units to one or the other, but not both, of the following persons:

  • “(a) persons who are participants in respect of an activity listed in Part 5 of Schedule 3 or Part 5 of Schedule 4; or

  • “(b) persons who are not participants in respect of an activity listed in Part 5 of Schedule 3, but who farm, raise, grow, or keep ruminant animals, pigs, horses, or poultry for reward or for the purpose of trade in those animals or in animal material or animal products taken or derived from those animals, or who purchase, other than for on-selling, synthetic fertiliser containing nitrogen.

“77 Other matters with respect to allocation plans

• “(1) An allocation plan may not provide for an allocation of New Zealand units free of charge to any person other than a person specified in sections 71 to 76.

  “(2) Nothing in this subpart requires—

  • “(a) an allocation plan to provide for the allocation free of charge of the total number of New Zealand units available for allocation under the allocation plan; and

  • “(b) the Minister, in making a determination, to allocate the total number of New Zealand units available for allocation under an allocation plan unless required to do so by the allocation plan.

  “(3) Despite section 71(2)(a), 73(2)(a), 75(2)(a), or 76(2)(a), a draft allocation plan, or an allocation plan,—

  • “(a) is not required to specify—

    • “(i) the identity of persons who are eligible to receive an allocation of New Zealand units; or

    • “(ii) the amount of any person’s allocation; and

  • “(b) may, in accordance with section 78(2) or 79(2)(b), specify the criteria, methodologies, and other things that the Minister must apply to make a determination specifying—

    • “(i) the identity of each eligible person; and

    • “(ii) the amount of each eligible person’s allocation.

“78 Draft allocation plans

• “(1) Before recommending that an allocation plan be issued, the Minister must prepare a draft allocation plan.

  “(2) Every draft allocation plan must specify—

  • “(a) the period for which the allocation plan will apply; and

  • “(b) any tests or thresholds that persons must meet to be eligible for an allocation of New Zealand units; and

  • “(c) the criteria and methodologies to be included in the allocation plan that the Minister must apply to determine (if applicable)—

    • “(i) the total number of New Zealand units available for allocation; and

    • “(ii) the persons who are eligible for an allocation of New Zealand units; and

    • “(iii) the total number of New Zealand units allocated to each eligible person; and

    • “(iv) the year or years in which each eligible person will receive the New Zealand units allocated to them; and

  • “(d) the principal reasons for the inclusion of the criteria and methodologies to be included in the allocation plan, including with reference to—

    • “(i) where the allocation plan will provide for the matters specified in section 73 or 76, the general principles specified in section 81; and

    • “(ii) where a review has been completed under section 160(1), any relevant recommendations of the most recently completed review; and

  • “(e) 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 free of charge; and

    • “(ii) enable the Minister to verify that the person received the correct allocation of New Zealand units free of charge under the allocation plan; and

  • “(f) in relation to an eligible person who receives an allocation of New Zealand units,—

    • “(i) the records, or the kind 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

  • “(g) the policies, procedures, and provisions to be applied by the Minister under the allocation plan.

  “(3) The Minister must ensure that—

  • “(a) public notice is given of any draft allocation plan; and

  • “(b) the draft 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 the Act and at such other places as the Minister considers appropriate.

  “(4) The notice of a draft allocation plan given under subsection (3) must specify—

  • “(a) how a hard copy of the draft allocation plan may be obtained; and

  • “(b) that any person may make a submission on the draft allocation plan, how submissions may be made, and by what date (which must be no earlier than 40 working days after the date on which notice is given).

  “(5) If any submission is made on the draft allocation plan under subsection (4), the chief executive responsible for the administration of this Act must, after the expiry of the time for making submissions, prepare for the Minister a report that contains recommendations in respect of the submissions.

  “(6) The Minister must consider the report and recommendations made under subsection (5) and may make any changes to the draft allocation plan that the Minister thinks fit.

“79 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.

  “(2) The allocation plan must—

  • “(a) specify the matters set out in section 78(2); and

  • “(b) incorporate any changes made to the draft allocation plan under section 78(6); and

  • “(c) be presented to the House of Representatives as soon as practicable after it is issued, along with the report provided to the Minister under section 78(5) and any of the Minister’s decisions on the recommendations contained in the report.

  “(3) An allocation plan providing for the matters in—

  • “(a) section 71 comes into force on the day after it is presented to the House of Representatives:

  • “(b) section 73, 75, or 76 comes into force 15 sitting days after it is presented to the House of Representatives unless the House resolves, in that period, to disapply the allocation plan.

  “(4) If Parliament is dissolved or expires before the end of the period of sitting days within which the House of Representatives must resolve to disapply an allocation plan under subsection (3)(b), and the House has not, by that time, resolved to disapply the allocation plan, then the allocation plan comes into force on the day the House is dissolved or expires.

“80 Correction and publication 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 78, recommend that the Governor-General revoke that allocation plan and replace it with a corrected allocation plan.

  “(2) A corrected allocation plan—

  • “(a) comes into force at the time it is issued; and

  • “(b) must, for advisory purposes, be presented to the House of Representatives as soon as practicable after it is issued; and

  • “(c) to avoid doubt, may not be disapplied by the House of Representatives under section 79(3)(b).

  “(3) The Minister must, as soon as practicable after an allocation plan or a corrected allocation plan comes into force, ensure that—

  • “(a) the allocation plan or corrected 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 the Act; and

  • “(b) the allocation plan or corrected allocation plan is published in whatever other form the Minister considers appropriate; and

  • “(c) in respect of an allocation plan, the report provided to the Minister under section 78(5) is published in whatever form the Minister considers appropriate, along with any of the Minister’s decisions on the recommendations contained in the report; and

  • “(d) in respect of a corrected allocation plan, a summary of the corrections 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 the Act.

  “(4) An allocation plan or corrected allocation plan is a regulation for the purposes of the Regulations (Disallowance) Act 1989, but it is not a regulation for the purposes of the Acts and Regulations Publication Act 1989.

“81 Content of criteria and methodologies in allocation plans

• The Minister must, when considering the criteria and methodologies to be included in any draft allocation plan or allocation plan providing for the matters contained in sections 73 and 76, have regard to the following general principles—

  • “(a) the allocation of New Zealand units free of charge under any allocation plan should lead to the avoidance of—

    • “(i) economic regrets:

    • “(ii) significant, regionally-concentrated job losses:

    • “(iii) perverse behavioural incentives, including with respect to decisions about investment and output levels:

  • “(b) it is desirable to treat firms or individuals who are intending to begin operating within a sector or industry (new entrants) in a similar manner, with respect to the allocation of New Zealand units under any allocation plan, as firms or individuals who are already operating within that sector or industry (incumbents) and who are intending to grow their operations:

  • “(c) criteria and methodologies should be included in an allocation plan that provide as much certainty as practicable about the number of New Zealand units to be allocated under the allocation plan and the number to be allocated to each person:

  • “(d) it is desirable to treat firms or individuals that are in the same sector or industry in a similar manner with respect to any allocation of New Zealand units free of charge if the firms or individuals have a similar degree of trade exposure:

  • “(e) the application of any criteria or methodologies included in an allocation plan, and the application of the allocation plan more generally, should minimise administrative and compliance costs as much as practicable:

  • “(f) criteria and methodologies to be included in an allocation plan should ensure that firms and individuals considered to be trade-exposed only receive New Zealand units free of charge in respect of the parts of their business operations that are involved in the production of goods that are trade-exposed:

  • “(g) any other general principles that the Minister considers appropriate.

“82 Determinations made in accordance with allocation plan

• “(1) As soon as practicable after an allocation plan is issued and is in force for a period specified in section 71(1), 73(1), 75(1), or 76(1), 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 Minister must ensure that a notice given under subsection (1) specifies—

  • “(a) that the person must supply to the Minister the data and information, or the kind of data and information, specified in the allocation plan; and

  • “(b) how the data and information are to be supplied; and

  • “(c) the date by which the data and information must be supplied (which must be no earlier than 40 working days after the date on which notice is given); and

  • “(d) that the data and information supplied is subject to the Official Information Act 1982.

  “(3) Despite anything in this subpart, or in any allocation plan,—

  • “(a) a person must respond to a notice given under subsection (1) in order to receive an allocation of New Zealand units under any applicable allocation plan; and

  • “(b) the Minister is not under any duty to make a determination in favour of any person who fails to respond to the notice within the period specified.

  “(4) Following the expiry of the time specified in a notice given under subsection (1) for the supply of data and information, the Minister must apply the criteria and methodologies specified in the allocation plan to make a draft determination specifying—

  • “(a) the total number of New Zealand units available for allocation under the allocation plan; and

  • “(b) the identity of each eligible person; and

  • “(c) the total number of New Zealand units allocated under the allocation plan to each eligible person; and

  • “(d) the year or years in which each eligible person will receive the New Zealand units allocated to them.

  “(5) After making a draft determination, the Minister must notify each eligible person specified in the draft determination, and every person who responded to the notice given under subsection (1) who is not specified as an eligible person in the draft determination,—

  • “(a) of the draft determination; and

  • “(b) if the person is not specified in the draft determination as an eligible person, of the reasons for the person not being specified as an eligible person; and

  • “(c) that the person has an opportunity to identify any errors, mistakes, or miscalculations that have been made in the application of the criteria and methodologies to make the draft determination; and

  • “(d) if the person identifies any errors, mistakes, or miscalculations, that the person may provide the Minister with information concerning what the person considers should be the correct application of the criteria and methodologies; and

  • “(e) of the date by which the person must supply the information (which date must not be earlier than 20 working days after the date on which notice is given).

  “(6) The Minister may consult further with any person the Minister thinks fit either before or after the expiry of the period specified in subsection (5)(e) for providing information.

  “(7) Taking into account any information supplied under subsection (5), and any consultation under subsection (6), the Minister must—

  • “(a) make a new draft determination under subsection (4); or

  • “(b) make a determination of the matters specified in subsection (4).

  “(8) As soon as practicable after making a determination under subsection (7)(b), the Minister must—

  • “(a) publish the determination in the Gazette; and

  • “(b) make the determination accessible via the Internet site of the department of the chief executive responsible for the administration of this Act; and

  • “(c) provide for the transfer of New Zealand units to each eligible person in accordance with the determination.

  “(9) A determination continues in force until—

  • “(a) the allocation plan in accordance with which the determination is made expires; or

  • “(b) the determination is replaced by a new determination made in accordance with section 84; or

  • “(c) one of the conditions in paragraph (a) or (b) is met, even if the allocation plan in accordance with which the determination is made is revoked and replaced with another allocation plan.

“83 Minister may require further information after determination made

• “(1) The Minister may, after making a determination, require the following persons to supply the records, data or information, or the kind of records, data and information, specified in the applicable allocation plan, in the form specified,—

  • “(a) persons who have been transferred New Zealand units in accordance with the determination; and

  • “(b) persons who have not been transferred New Zealand units in accordance with the determination, but who have applied to the Minister for an allocation of New Zealand units in accordance with an allocation plan; and

  • “(c) persons who have previously been transferred New Zealand units, but who are not eligible to receive a further transfer of New Zealand units, in accordance with the determination.

  “(2) Any requirement for the supply of records, data, or information under subsection (1) must be made—

  • “(a) by notice to the person (which notice must specify that the records, data, or information supplied are subject to the Official Information Act 1982); and

  • “(b) in accordance with any relevant policies, procedures, and provisions specified in the applicable allocation plan.

  “(3) A person who—

  • “(a) receives a notice issued under subsection (2)(a) must supply the records, data, or information requested within the time frame specified in the notice; and

  • “(b) fails to respond within the specified time frame for supply of records, data, or information under subsection 2(a) may—

    • “(i) not receive any further allocation of New Zealand units until the person supplies the information; and

    • “(ii) commit an offence under section 131(1)(a) or 133(1)(d) as if the reference to the chief executive in those sections were to the Minister, and the reference to section 94 in section 131(1)(a) was to this section.

“84 New determination made in accordance with allocation plan

• “(1) The Minister may (but is not required to) revoke and replace any existing determination with a new determination at any time if—

  • “(a) the allocation plan under which the existing determination was made has been revoked and replaced with a new allocation plan; or

  • “(b) the existing determination has resulted, or will result, in a person receiving an incorrect allocation owing to—

    • “(i) an error in the application of the criteria and methodologies specified in the applicable allocation plan; or

    • “(ii) the person providing altered, false, incomplete, or misleading information in response to a notice given under section 82(1) or (5) in relation to the existing determination; or

  • “(c) a person who is specified as an eligible person under the existing determination is no longer an eligible person; or

  • “(d) there has been a change in the circumstances of a person who is specified as an eligible person under the existing determination that, if taken into account, would increase or decrease that person’s entitlement to an allocation; or

  • “(e) a person who is not specified as an eligible person under the existing determination has—

    • “(i) reasonable grounds to believe that he or she is an eligible person; and

    • “(ii) applied to the Minister for an allocation in accordance with the applicable allocation plan.

  “(2) However, the Minister may only make a new determination in accordance with an allocation plan that provides for the matters in section 71 if subsection (1)(a) or (b) applies.

  “(3) In making a new determination, the Minister must,—

  • “(a) if the Minister considers that he or she has sufficient information to make the new determination of the matters specified in section 82(4), comply with subsection (4); or

  • “(b) if the Minister considers that he or she does not have sufficient information to make the new determination of the matters specified in section 82(4), follow the process in section 82, except that the reference to—

    • “(i) 40 working days in section 82(2)(c) must be read as 20 working days; and

    • “(ii) 20 working days in section 82(5)(e) must be read as 10 working days.

  “(4) If subsection (3)(a) applies, the Minister must—

  • “(a) give notice of the matters specified in section 82(5) to the following persons:

    • “(i) persons specified as eligible persons under the existing determination who would, once the new determination replaces the existing determination, receive greater or fewer New Zealand units than if the new determination did not replace the existing determination; and

    • “(ii) persons not specified as eligible persons under the existing determination whom the new determination specifies as eligible persons; and

  • “(b) comply with section 82(6) to (8) as if the notice given under paragraph (a) had been given under section 82(5).

  “(5) If the Minister has provided notice of the matters specified in section 82(5) in accordance with subsection (4), the reference to 20 working days in section 82(5)(e) must be read as 10 working days.

  “(6) Any new determination made in accordance with subsection (3)—

  • “(a) may specify all of the matters specified in section 82(4), and may—

    • “(i) specify the correct allocation of a person whose allocation is specified incorrectly in the existing determination; or

    • “(ii) not specify as an eligible person a person who was specified as an eligible person under the existing determination but is no longer an eligible person; or

    • “(iii) increase or decrease a person’s allocation owing to a change in the person’s circumstances since the existing determination was made; or

    • “(iv) specify as an eligible person a person who was not specified as an eligible person under the existing determination; and

  • “(b) applies subject to section 85.

  “(7) Despite anything in this section, the Minister may make a new determination that corrects any minor mistakes or defects in an existing determination without complying with section 82(1) to (6).

“85 Effect of new determination

• “(1) If the Minister makes a new determination in accordance with section 84, the new determination has the effect of immediately revoking and replacing the existing determination.

  “(2) A new determination made in accordance with section 84 applies from the date it is made, and, subject to subsections (5) and (6), does not change or otherwise affect any transfer of New Zealand units made to a person in accordance with any revoked determination before that date.

  “(3) If a revoked determination incorrectly specified a person’s allocation, a new determination may increase or decrease the number of New Zealand units the person is to receive by the difference between the number of New Zealand units that the person—

  • “(a) received under the revoked determination; and

  • “(b) would have received if the revoked determination had specified the person’s correct allocation.

  “(4) If the circumstances of a person specified as an eligible person under a revoked determination changed while that determination was in force, and the person received greater or fewer New Zealand units than the person’s entitlement as a result, then a new determination may increase or decrease the number of New Zealand units the person is to receive by the difference between the number of New Zealand units that the person—

  • “(a) received under the revoked determination; and

  • “(b) should have received, given the person’s change in circumstances.

  “(5) If a person specified as an eligible person under a revoked determination is not specified as an eligible person under a new determination, but the person received greater or fewer New Zealand units than they were entitled to under the revoked determination, then,—

  • “(a) if the person received too few New Zealand units, the new determination may specify that the person is to receive a further allocation of New Zealand units equal to the difference between the number of New Zealand units the person received under the revoked determination and the number of New Zealand units that the person would have received if the revoked determination had specified the person’s correct allocation; or

  • “(b) if the person received too many New Zealand units, the chief executive may give a notice to the person, under section 125(1), specifying the number of New Zealand units the person received that the person was not entitled to, and requiring the person to transfer that number of New Zealand units in accordance with section 125(2).

  “(6) If a new determination shows that a person received more New Zealand units than the person was entitled to receive under a revoked determination, and the person’s incorrect allocation was due to the person providing altered, false, incomplete or misleading information in response to a notice issued under section 82(2) or 82(5), then the chief executive may give a notice to the person under section 125(1) specifying the number of New Zealand units the person received that the person was not entitled to, and requiring the person to repay that number of New Zealand units in accordance with section 125(2).

“86 Balance of units at end of true-up period or other balance date

• “(1) By the end of the true-up period, the Minister must ensure that the Crown holds, in any Crown holding account in the Registry, or in any retirement or surrender account, a number of Kyoto units equal to the number of New Zealand units issued into a Crown holding account during the first commitment period but not including New Zealand units that are, during the first commitment period,—

  • “(a) transferred to a conversion account in accordance with section 30E; or

  • “(b) allocated to pre-1990 forest land owners in accordance with section 71(2)(b)(ii) and that have not been transferred to a cancellation account; or

  • “(c) transferred to a cancellation account.

  “(2) Subsection (3) applies if New Zealand has received, or if the Minister expects New Zealand to receive, units under—

  • “(a) the Protocol during a subsequent commitment period; or

  • “(b) a successor international agreement.

  “(3) If this subsection applies the Governor-General may, by Order in Council made on the recommendation of the Minister, specify a date by which the Crown must hold, in any Crown holding account in the Registry, or in any retirement or surrender account, a number of Kyoto units or approved overseas units received under any international agreement as calculated under subsection (4).

  “(4) The number of Kyoto or approved overseas units held in accordance with subsection (3) must be equal to the number of New Zealand units issued into a Crown holding account up to the date specified in the order but not including New Zealand units that up to the date specified in the order are—

  • “(a) transferred to a conversion account in accordance with section 30E; or

  • “(b) allocated to pre-1990 forest land owners in accordance with section 71(2)(b)(ii) and that have not been transferred to a cancellation account and are held subject to section 71(6)(b); or

  • “(c) transferred to a cancellation account.

  “(5) If an order is made under subsection (3), the Minister must ensure that the Crown holds the required number of units by the date specified in the order.

  “(6) For the purposes of subsection (1), true-up period means the 100 days, beginning on a date determined by the Conference of the Parties (acting as the Meeting of the Parties to the Protocol), providing Parties with an additional period for fulfilment of their obligation under Article 3.1 of the Protocol.

“Subpart 3—Chief executive

“General administrative provisions

“87 Functions of chief executive

• “(1) The functions of the chief executive 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

  • “(c) approve the use of unique emissions factors by participants in accordance with section 91; and

  • “(d) give notice to the Minister of Finance of participants’ entitlements to receive New Zealand units for removal activities; and

  • “(e) ensure participants 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 chief executive must comply with any direction that the Minister gives under section 88(1).

“88 Directions to chief executive

• “(1) The Minister may give general directions to the chief executive in relation to the chief executive'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 department of the chief executive; and

  • “(c) present a copy of the direction to the House of Representatives.

“89 Chief executive to publish certain information

• “(1) The chief executive 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 subsection (3), 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 free of charge under any allocation plan.

  “(2) The chief executive—

  • “(a) must publish the information specified in subsection (1) by 30 June in each 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 chief executive considers appropriate.

  “(3) The chief executive is not required to publish the information required under subsection (1)(e) in respect of an activity if the chief executive is satisfied that publishing the information would result in the disclosure of a participant’s individual emissions, unless—

  • “(a) the participant to whom the information relates has consented to the publication of the information; or

  • “(b) the information is already in the public domain.

“90 Chief executive may prescribe form of certain documents

• “(1) The chief executive 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 chief executive must publish any form or format prescribed under subsection (1) via the Internet site of the department of the chief executive.

  “(3) The production by the chief executive 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 chief executive prescribes an electronic form or format under subsection (1), the chief executive may require any signature on that form or that relates to that format to be an electronic signature.

“91 Approval of unique emissions factors

• “(1) The chief executive 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 chief executive 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 chief executive 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 chief executive approves the use of a unique emissions factor under subsection (1), the chief executive 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 chief executive has approved the participant to use when calculating emissions or removals for the activity.

“92 Recognition of verifiers

• “(1) The chief executive 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 chief executive may suspend or revoke any recognition given under this section in accordance with regulations made under section 163.

“Verification and inquiry

“93 Appointment of enforcement officers

• “(1) The chief executive may appoint 1 or more persons as enforcement officers to exercise all or any of the powers and perform the functions conferred on enforcement officers under this Part.

  “(2) A person appointed under subsection (1) must be employed by the chief executive under the State Sector Act 1988.

  “(3) The chief executive must supply an enforcement officer with a warrant of authorisation that clearly states the powers and functions of the enforcement 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) To avoid doubt, if the chief executive delegates the appointment power specified in subsection (1) to another chief executive under section 41 of the State Sector Act 1988, subsection (2) applies as if the reference to the chief executive were a reference to the chief executive to whom the power specified in subsection (1) is delegated.

“94 Power to require information

• “(1) 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 chief executive 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 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 chief executive or enforcement officer; and

    • “(ii) within any reasonable time specified in the notice requiring the information; and

    • “(iii) free of charge.

“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 chief executive may require a person to—

  • “(a) appear before 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 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 chief executive or enforcement officer may administer an oath.

“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 chief executive, if the chief executive 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 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 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.

“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.

“98 Expenses in relation to inquiries by chief executive or District Court Judge

• The chief executive may pay, or a District Court Judge may order the chief executive to pay, to any person who has appeared before the chief executive or an enforcement officer under section 95 or the District Court Judge under section 96, out of money appropriated by Parliament for the purpose, the sum that in the chief executive’s or Judge’s opinion, as the case may be, is reasonable in respect of that person’s travelling and other expenses.

“99 Obligation to maintain confidentiality

• “(1) This section applies—

  • “(a) to the chief executive, any enforcement officer, and any other person who performs functions or exercises powers of the chief executive 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

    • “(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 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 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 to be pre-1990 forest land or post-1989 forest land, or has been declared to be exempt land by the chief executive.

“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 and 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.

“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 chief executive, 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) 14 working days after 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 28 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 member of the police.

  “(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).

“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.

“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.

“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.

“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.

“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.

“Emissions rulings

“107 Applications for emissions rulings

• “(1) A person may apply to the chief executive 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 chief executive may request any further information from an applicant that the chief executive considers necessary to assist in the consideration of the application.

“108 Matters in relation to which chief executive may decline to make emissions rulings

• “(1) The chief executive may not make an emissions ruling with respect to a provision that authorises or requires the chief executive to—

  • “(a) impose or remit a penalty; or

  • “(b) inquire into the correctness of any return or other information supplied by any person; or

  • “(c) prosecute any person; or

  • “(d) recover any debt owing by any person.

  “(2) The chief executive may decline to make an emissions ruling if—

  • “(a) the chief executive considers that the correctness of the ruling would depend on which assumptions were made about a future event or other matter; or

  • “(b) the matter on which the ruling is sought is subject to a review or appeal, or is the subject of proceedings, whether in relation to the applicant or any other person; or

  • “(c) the applicant has outstanding unpaid fees relating to an earlier emissions ruling application; or

  • “(d) the chief executive considers the application is frivolous or vexatious; or

  • “(e) the matter on which the ruling is sought concerns an obligation to surrender units that are already due and payable, unless the application is received before the obligation arises; or

  • “(f) an assessment or amendment relating to the same person, activity, and period to which the proposed ruling would apply has been made (unless the application is received by the chief executive before the date an assessment or amendment is made); or

  • “(g) in the chief executive’s opinion—

    • “(i) the chief executive has insufficient information to make the ruling; or

    • “(ii) it would be unreasonable to make a ruling in view of the resources available to the chief executive.

“109 Making of emissions rulings

• “(1) The chief executive must make an emissions ruling regarding the matter in respect of which a ruling is sought under section 107 as soon as practicable after the receipt of—

  • “(a) a properly completed application for a ruling; and

  • “(b) all information that the chief executive considers relevant to the consideration of the application, including information requested under section 107(3).

  “(2) Subject to section 114(2), a ruling comes into effect on the day on which it is made.

  “(3) A ruling may be made subject to any conditions that the chief executive thinks fit.

  “(4) Subsection (1) is subject to section 108.

“110 Notice of emissions rulings

• The chief executive must, as soon as practicable, notify the applicant of—

  • “(a) an emissions ruling, together with the reasons for the ruling, and the conditions (if any) to which the ruling is subject; or

  • “(b) a decision to decline to make an emissions ruling, together with the reasons for the decision.

“111 Confirmation of basis of emissions rulings

• At any time after an emissions ruling is made, the chief executive may, by notice, require an applicant to satisfy the chief executive, within 20 working days after receipt of the notice, and in a manner that the chief executive considers appropriate, that—

  • “(a) the information on which the emissions ruling is based remains accurate; and

  • “(b) the conditions (if any) to which the ruling is subject, have been, and continue to be, complied with.

“112 Notifying chief executive of changes relevant to or failure to comply with emissions rulings

• “(1) A person must, as soon as practicable, notify the chief executive of any material change that is relevant to the application if the person—

  • “(a) has made an application for an emissions ruling under section 107; and

  • “(b) becomes aware of a material change relating to the application before the emissions ruling is made by the chief executive.

  “(2) A person who has obtained an emissions ruling under section 109 must, as soon as practicable, notify the chief executive of—

  • “(a) any material change that is relevant to the ruling:

  • “(b) any failure to comply with any of the conditions of the ruling.

  “(3) The notification that a person provides under subsection (1) or (2) must state the date on which the person became aware of the material change or the failure to comply.

“113 Correction of emissions rulings

• “(1) The chief executive may amend an emissions ruling to correct any error that the chief executive is satisfied is contained in the ruling.

  “(2) The chief executive must, as soon as practicable after making a correction, notify the applicant of the corrected ruling.

  “(3) The correction to a ruling applies to the applicant from the date on which notice of the corrected ruling is given to the applicant.

  “(4) Despite subsection (3), if the corrected ruling has the effect of—

  • “(a) increasing the number of units that a person is required to surrender, or decreasing the number of New Zealand units that a person is entitled to receive, in respect of a year, then the ruling as given prior to correction under this section must be applied to that year; or

  • “(b) decreasing the number of units that a person is required to surrender, or increasing the number of New Zealand units that a person is entitled to receive, in respect of a year, then the corrected ruling must be applied to that year.

“114 Cessation of emissions rulings

• “(1) An emissions ruling ceases to have effect on the earliest of the following dates:

  • “(a) the date of a material change in any of the information or facts on which the ruling is based; or

  • “(b) the date of a material change to this Act or to any regulations relevant to the ruling; or

  • “(c) the date on which any of the conditions to which the ruling is subject cease to be met or complied with; or

  • “(d) the date of a failure to satisfy the requirements of the chief executive under section 111.

  “(2) An emissions ruling does not come into effect if any information on which it is based is not accurate in all material respects.

“115 Appeal from decisions of chief executive

• “(1) An applicant who is dissatisfied with an emissions ruling, or a decision to decline to make an emissions ruling, may, within 20 working days after the date on which notice of the ruling or decision is given, appeal to a District Court against the ruling or decision.

  “(2) The District Court may confirm, reverse, or modify the emissions ruling or decision appealed against.

  “(3) An emissions ruling or decision appealed against under this section continues in force pending the determination of the appeal, and no person is excused from complying with any of the provisions of this Act on the ground that any appeal is pending.

“116 Effect of emissions rulings

• “(1) An emissions ruling is conclusive evidence of the determination of the matter in respect of which a ruling is sought under section 107.

  “(2) If the chief executive makes an emissions ruling under section 109,—

  • “(a) the ruling applies to the matter in relation to which the ruling was sought; and

  • “(b) if the applicant complies with the ruling, the chief executive must apply this Act to that matter in accordance with the ruling.

  “(3) This section is subject to sections 113 and 114 and any decision of the District Court under section 115(2).

“117 Chief executive may publish certain aspects of emissions rulings

• “(1) For the purpose of providing general guidance about the application of this Part or Part 5, the chief executive may, after making an emissions ruling, publish information that relates to the ruling.

  “(2) The chief executive may not publish any information under subsection (1) that identifies any person to whom the ruling relates.

  “(3) No person may treat, or rely on, the information published under subsection (1) as an emissions ruling with the effect specified by section 116.

“Emissions returns

“118 Submission of final emissions returns

• “(1) Subsection (2) applies to the following persons:

  • “(a) a person who the chief executive believes is about to—

    • “(i) cease carrying out an activity listed in Schedule 3 or 4 in relation to which the person is a participant; and

    • “(ii) leave New Zealand:

  • “(b) a participant who has ceased to carry out any activities in New Zealand:

  • “(c) the executors or administrators of a deceased participant:

  • “(d) a participant who has become bankrupt or has been put into liquidation.

  “(2) The chief executive may, at any time, require a person to whom subsection (1) applies to submit a final emissions return in relation to a specified activity listed in Schedule 3 or 4.

  “(3) Any of the following persons may, at any time, submit a final emissions return in relation to a specified activity listed in Schedule 3 or 4:

  • “(a) a person who is about to—

    • “(i) cease carrying out an activity listed in Schedule 3 or 4 in relation to which the person is a participant:

    • “(ii) leave New Zealand:

  • “(b) a participant who has ceased to carry out any activities in New Zealand:

  • “(c) the executor or administrator of a deceased participant:

  • “(d) a participant who has become bankrupt or has been put into liquidation.

  “(4) A final emissions return submitted under subsection (2) or (3) must—

  • “(a) contain all of the information required in an annual emissions return under section 65(2), but only for the period specified by the chief executive, or if the return is made under subsection (3), the period determined by the submitter; and

  • “(b) be submitted in accordance with section 65(3).

  “(5) Following the submission of a final emissions return under this section, the person submitting the return must, within 20 working days, surrender the number of units in the assessment under section 65(2)(c)(i).

“119 Power to extend date for emissions returns

• The chief executive may extend the time for the submission of an emissions return by a period of no more than 20 working days if—

  • “(a) the participant has applied for an extension before the date upon which the emissions return is due; and

  • “(b) the chief executive is satisfied that the participant is unable to submit the required emissions return by the due date.

“120 Amendment to emissions returns by chief executive

• Subject to section 127, if the chief executive is satisfied that the information contained in an emissions return is incorrect, the chief executive may, at any time, amend the emissions return and any assessment of the participant’s liability to surrender units or entitlement to receive New Zealand units in the emissions return as the chief executive thinks fit.

“121 Assessment if default made in submitting emissions return

• “(1) This section applies if—

  • “(a) a participant fails to submit an emissions return when required to do so under this Act; or

  • “(b) the chief executive has reason to believe that a person is a participant who should have submitted an emissions return, but did not.

  “(2) If this section applies, the chief executive may make an assessment of the matters that should have been in the person’s emissions return.

“122 Amendment or assessment presumed to be correct

• An amendment made to an emissions return under section 120, or an assessment made under section 121, must be taken to be correct unless, on review or appeal, a different amendment or assessment is made.

“123 Effect of amendment or assessment

• “(1) If the chief executive makes an amendment under section 120 or an assessment under section 121, the chief executive must, as soon as practicable after making the amendment or assessment, notify the participant of—

  • “(a) the particulars of the amendment or assessment; and

  • “(b) any grounds or information upon which the amendment or assessment was based; and

  • “(c) the right of the person to seek a review of the decision under section 144.

  “(2) A notice under subsection (1) must, if relevant, be accompanied by a penalty notice under section 134(3)(b).

  “(3) If the amendment or assessment results in a liability for the person to surrender units or any additional units, the participant must surrender those units within 90 days after the date of the notice under subsection (1).

  “(4) If the amendment shows that a participant has surrendered too many units, the chief executive must, within 20 working days after the date of the notice under subsection (1), arrange for reimbursement to the participant, in accordance with section 124, of the number of units incorrectly surrendered.

  “(5) If the amendment or assessment results in an entitlement for a participant to receive New Zealand units for the participant’s removal activities, the chief executive must notify the Minister of Finance under section 64(2) of the entitlement.

  “(6) If the amendment shows that a participant was transferred too many New Zealand units for the participant’s removal activities, the participant must, within 90 days after the date of the notice under subsection (1), repay the number of units to which the amendment shows the participant was not entitled by transferring them to a Crown holding account designated by the chief executive.

  “(7) Units repaid by any person under subsection (6) must be of a type that may be transferred to a surrender account at the time the unit is repaid.

  “(8) The chief executive is not required to meet the time frame in subsection (4) if consultation under section 124(6) on the units to be reimbursed makes this impracticable.

“124 Reimbursement of units by chief executive

• “(1) If the chief executive is required to arrange for the reimbursement of units to a person under section 123(4), 126(2), 138(2), or 189(7), the chief executive may satisfy the requirement by giving notice to the Minister of Finance under subsection (2) or (4) in relation to the transfer of units to the person.

  “(2) If the chief executive wishes to arrange reimbursement of New Zealand units or approved overseas units to a person, the chief executive must notify the Minister of Finance of—

  • “(a) the number of New Zealand units or approved overseas units to be reimbursed to the person from the units surrendered or repaid by that person; and

  • “(b) the details of the person's holding account.

  “(3) As soon as practicable after receiving notification under subsection (2), the Minister of Finance must direct the Registrar to transfer the New Zealand units or approved overseas units from the appropriate surrender account or Crown holding account to the person's holding account.

  “(4) If the chief executive wishes to arrange reimbursement of Kyoto units to a person, the chief executive must notify the Minister of Finance of—

  • “(a) the number and type of Kyoto units to be reimbursed to the person; and

  • “(b) the details of the person's holding account.

  “(5) As soon as practicable after receiving notification under subsection (4), the Minister of Finance must direct the Registrar to transfer the applicable number and type of Kyoto units from a surrender account or a Crown holding account to the person's holding account.

  “(6) The chief executive must take into account the views of the person to whom units will be reimbursed about the type of units to be reimbursed when determining what units to reimburse.

“125 Repayment of units by persons in case of error

• “(1) The chief executive may, if satisfied that as a result of an error, units to which a person is not entitled under a provision in Part 4 or 5 have been transferred from a Crown holding account or other Crown account to the person's holding account, give a notice to the person requiring that person to repay the units referred to in the notice in accordance with subsection (2).

  “(2) A person who receives a notice under subsection (1) must—

  • “(a) repay any units transferred in error that are still in the person’s holding account, or are otherwise under the person's control, by transferring those units as soon as practicable to the Crown holding account designated in the notice; and

  • “(b) if not all the units transferred in error are repaid under paragraph (a), repay, within 30 working days of the date of the notice, the outstanding number of units by transferring units to the Crown holding account designated in the notice.

  “(3) Units repaid by any person under subsection (2)(b) must be of a type that may be transferred to a surrender account at the time the unit is repaid.

“126 Obligation to surrender or repay units not suspended by review or appeal

• “(1) The obligation to surrender or repay units under section 123 or 125 is not suspended by any review or legal proceedings.

  “(2) If the applicant for a review or the appellant in proceedings is successful in the review or the proceedings, the chief executive must arrange for the reimbursement to the applicant or appellant of the number of units surrendered or repaid in excess of those that are determined to be required to be surrendered or repaid.

  “(3) However, any obligation on the chief executive under subsection (2) is suspended pending the outcome of any appeal filed by the chief executive under section 146.

“127 Time bar for amendment of emissions returns

• “(1) If a participant has complied with the participant’s obligation to surrender units in relation to an emissions return submitted under—

  • “(a) any section except section 189 or 193, the chief executive may not amend the emissions return, or the assessment made by the participant of the units to be surrendered or received, after the expiration of 4 years from the end of the year or other period in respect of which the emissions return was made, or in the case of a return under section 187 or 191, from the date of the submission of the emissions return, if the amendment would—

    • “(i) increase the number of units required to be surrendered by the participant; or

    • “(ii) alter the number of New Zealand units that the participant is entitled to receive for removal activities:

  • “(b) section 189 or 193, the chief executive may not amend the emissions return, or the assessment made by the participant of the units to be surrendered or received, after the expiration of 7 years from the end of the year or other period in respect of which the emissions return was made if the amendment would—

    • “(i) increase the number of units required to be surrendered by the participant; or

    • “(ii) alter the number of New Zealand units that the participant is entitled to receive for removal activities.

  “(2) However, if the chief executive is satisfied that an emissions return was fraudulent, was wilfully misleading, or deliberately omitted mention of emissions or removals in respect of which an emissions return was required to be submitted, the chief executive may amend the emissions return at any time, under section 120, so as to—

  • “(a) increase the number of units required to be surrendered by the participant:

  • “(b) decrease the number of New Zealand units to which the participant is entitled in respect of removal activities.

“128 Amendments and assessments made by electronic means

• Any amendment or assessment made by the chief executive for the purpose of this Act that is made automatically by a computer or other electronic means in response to or as a result of information entered or held in the computer or other electronic medium—

  • “(a) must be treated as an amendment or assessment made by or under the properly delegated authority of the chief executive; and

  • “(b) is not invalid by virtue of the fact that it is made automatically by such means.

“Subpart 4—Offences and penalties

“129 Strict liability offences

• “(1) A person commits an offence against this Act if the person—

  • “(a) is a participant in any year and, without reasonable excuse, fails to comply with section 62 (requirement to collect data or other information, calculate emissions and removals, and keep records); or

  • “(b) without reasonable excuse,—

    • “(i) fails to notify the chief executive under section 56 that the person is carrying out an activity listed in Schedule 3; or

    • “(ii) fails to submit an emissions return when required to do so under section 65, 118, 189, 191, or 193; or

    • “(iii) fails to keep emissions records as required under section 67; or

    • “(iv) fails to notify the chief executive of a matter that is required to be notified under section 112; or

    • “(v) fails to notify the chief executive of the transfer of any post-1989 forest land when required to do so under section 192 or 193.

  “(2) Every person who is convicted of an offence against subsection (1) is liable on summary conviction,—

  • “(a) the first time the person is convicted of that offence, to a fine not exceeding $8,000:

  • “(b) the second time the person is convicted of that offence, to a fine not exceeding $16,000:

  • “(c) on every subsequent occasion that the person is convicted of that offence, to a fine not exceeding $24,000.

“130 Offence for breach of section 99

• Every person to whom section 99(1) applies who knowingly acts in contravention of section 99 commits an offence and is liable on summary conviction to—

  • “(a) imprisonment for a term not exceeding 6 months; or

  • “(b) a fine not exceeding $15,000; or

  • “(c) both.

“131 Offence for failure to provide information or documents

• “(1) A person commits an offence against this Act if the person, without reasonable excuse,—

  • “(a) fails to provide information to the chief executive or an enforcement officer when required to do so under section 94; or

  • “(b) fails to appear before the chief executive or an enforcement officer, or fails to produce any document or documents, when required to do so under section 95.

  “(2) Every person who is convicted of an offence against subsection (1) is liable on summary conviction,—

  • “(a) in the case of an individual, to a fine not exceeding $12,000; or

  • “(b) in the case of a body corporate, to a fine not exceeding $24,000.

“132 Other offences

• “(1) A person commits an offence against this Act if the person—

  • “(a) refuses to take an oath when required to do so under section 95; or

  • “(b) refuses to answer any question when required to do so under section 95; or

  • “(c) is a participant in any year and knowingly fails to comply with section 62 (requirement to collect data or other information, calculate emissions and removals, and keep records); or

  • “(d) knowingly fails to submit an emissions return when required to do so under section 65, 118, 189, 191, or 193; or

  • “(e) knowingly fails to keep records as required under section 67; or

  • “(f) knowingly provides altered, false, incomplete, or misleading information (including emissions returns) to the chief executive or any other person in respect of any matter in this Part or Part 5; or

  • “(g) wilfully obstructs, hinders, resists, or deceives a person exercising a power conferred on that person under this Part or Part 5; or

  • “(h) wilfully interferes with any survey, investigation, test, or measurement carried out by an enforcement officer or a person assisting an enforcement officer under section 100; or

  • “(i) refuses to provide information that an enforcement officer has demanded from that person under section 100(2)(d).

  “(2) Every person who is convicted of an offence against subsection (1) is liable on summary conviction,—

  • “(a) in the case of an individual, to a fine not exceeding $25,000; or

  • “(b) in the case of a body corporate, to a fine not exceeding $50,000.

“133 Evasion or similar offences

• “(1) A person commits an offence against this Act if the person, with intent to deceive and for the purpose of either obtaining any material benefit or avoiding any material detriment,—

  • “(a) fails to comply with any of the requirements specified in section 62; or

  • “(b) fails to submit an emissions return when required to do so under section 65, 118, 189, 191, or 193; or

  • “(c) fails to keep records as required under section 67; or

  • “(d) fails to provide information to the chief executive or any other person when required to do so under this Part or Part 5; or

  • “(e) provides altered, false, incomplete, or misleading information (including emissions returns) to the chief executive or any other person in respect of a matter in this Part and Part 5.

  “(2) Every person who commits an offence against subsection (1) is liable on conviction on indictment to—

  • “(a) imprisonment for a term not exceeding 5 years; or

  • “(b) a fine not exceeding $50,000; or

  • “(c) both imprisonment and a fine.

“134 Penalty for failing to surrender or repay units

• “(1) This section applies if—

  • “(a) a person fails to surrender units by the due date when required to do so under section 65(4), 118(5), 189, 191, or 193; or

  • “(b) an amendment to an emissions return under section 120 or an assessment made under section 121 results in a liability for a person—

    • “(i) to surrender units or additional units under section 123(3); or

    • “(ii) to repay units in accordance with section 123(6); or

  • “(c) a person is required under section 125 to repay units transferred in error.

  “(2) Subject to section 135, if this section applies, the person is liable to—

  • “(a) surrender or repay the units as required under the relevant section; and

  • “(b) pay to the chief executive an excess emissions penalty of $30 for each unit that,—

    • “(i) if subsection (1)(a) applies, the person fails to surrender by the due date; or

    • “(ii) if subsection (1)(b) applies, the person is required to surrender under section 123(3) or repay under section 123(6); or

    • “(iii) if subsection (1)(c) applies, the person fails to repay by the due date.

  “(3) If a person is liable to an excess emissions penalty under subsection (2), the chief executive must give a notice to the person that,—

  • “(a) if subsection (1)(a) or (c) applies,—

    • “(i) refers to the person’s failure to surrender units by the due date as required under section 65(4), 118(5), 189, 191, or 193, as applicable, or repay units by the due date under section 125; and

    • “(ii) sets out the number of units required to be surrendered or repaid; and

    • “(iii) sets out the amount of the excess emissions penalty to which the person is liable under subsection (2)(b); and

    • “(iv) requires the person to surrender or repay the units specified in subparagraph (ii), and pay the penalty specified in subparagraph (iii) to the chief executive, within 20 working days of the date of the notice; and

    • “(v) advises that, unless both the units are surrendered or repaid and the penalty paid in full by the due date, interest on the amount of the penalty will accrue in accordance with section 137; or

  • “(b) if subsection (1)(b) applies,—

    • “(i) refers to the relevant notice under section 123(1); and

    • “(ii) sets out the amount of the excess emissions penalty to which the person is liable under subsection (2)(b); and

    • “(iii) requires the person to pay the penalty specified in subparagraph (ii) within the period in which the person must surrender units under section 123(3) or repay units under section 123(6); and

    • “(iv) advises that, unless both the units are surrendered or repaid and the penalty paid in full by the due date, interest on the amount of the penalty will accrue in accordance with section 137.

  “(4) The amount of the excess emissions penalty, together with any interest that accrues on that penalty, constitutes a debt due to the Crown and is recoverable by the chief executive in a court of competent jurisdiction.

“135 Reductions in penalty

• “(1) The chief executive may reduce the excess emissions penalty imposed by section 134(2)(b)(i) or (iii) by up to 100%, if the person voluntarily discloses the failure to surrender or repay units before receiving a penalty notice under section 134.

  “(2) The chief executive may reduce the excess emissions penalty imposed by section 134(2)(b)(ii) by up to 100%, if—

  • “(a) the person voluntarily disclosed that an emissions return submitted by the person contained incorrect information, or that the person failed to file a return when required to do so, before the chief executive or an enforcement officer—

    • “(i) requested any information under section 94 or 95 in relation to the return; or

    • “(ii) gave notice of an intention to enter land or premises under section 100(3); or

    • “(iii) executed a warrant under section 101; or

  • “(b) the chief executive is satisfied that the person formed a view as to the information on which the return was based or as to whether a return was required, that, while incorrect, was reasonable, having regard to the information available to that person at the time the emissions return was required.

“136 Additional penalty for knowing failure to comply

• “(1) This section applies to a person who—

  • “(a) is or was liable following an amendment under section 120 or an assessment under section 121 to surrender units (or additional units) or to repay units, in respect of any period covered by, or that should have been covered by, an emissions return; and

  • “(b) is convicted of an offence against section 132(1)(c) to (f) or 133 in relation to that period.

  “(2) If this section applies, the person is liable, in addition to any penalty imposed in respect of the offence, to—

  • “(a) surrender a number of units equivalent to the number of units determined by the chief executive in the amendment under section 120 or