New Zealand Legislation: Bills

17 New sections 18CA and 18CB 18CA, 18CB, 18CC, and 18CD inserted

• The following sections are inserted after section 18C:

  “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 carried-over, or cancelled.

    “(2) A Kyoto unit that is transferred to a retirement account may not be further transferred, retired, surrendered, carried over 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 112 (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 112 (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)(c).

  “18CB Restriction on the surrender of assigned amount units

  • “(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) If at any time the Registrar discovers that a CP1 imported assigned amount unit has been transferred into 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, the Registrar must—

    • “(a) reverse the transfer; and

    • “(b) notify the participant and the chief executive responsible for Part 4 that the transfer has been reversed.

    “(3) If a transfer that is reversed under subsection (2) means that a participant has not surrendered the number of units by the due date as required under any section of this Act, the chief executive responsible for Part 4 may give a notice to the participant under section 121(3)(a).

    “(4) In this section and section 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.

  “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 121(3)(a).”