Climate Change Response (Moderated Emissions Trading) Amendment Bill

  • enacted
61 New sections 222A to 222G inserted
  • The following sections are inserted after section 222:

    222A Transitional provision for liability to surrender units to cover emissions
    • (1) This section applies to a person who—

      • (a) carries out an activity listed in Part 2, Part 3, or subpart 1 of Part 4 of Schedule 3 in the period 1 July 2010 to 31 December 2012; or

      • (b) is a participant in relation to an activity listed in Part 3 or 4 of Schedule 4 in the period 1 July 2010 to 31 December 2012.

      (2) Despite anything in this Act, a person to whom this section applies is only liable to surrender, and may only surrender, 1 unit for each 2 whole tonnes of emissions from the activity in the period referred to in subsection (1).

    222B Transitional provision for entitlement to receive New Zealand units for removal activities
    • (1) This section applies to a person who is—

      • (a) a participant in respect of an activity listed in Part 2 of Schedule 4 in the period 1 July 2010 to 31 December 2012; and

      • (b) entitled to receive units under section 64 in respect of that period.

      (2) Despite anything in this Act, a participant to whom this section applies is entitled to receive only 1 New Zealand unit for each 2 whole tonnes of removals from the activity in respect of the period referred to in subsection (1).

    222C Transitional provisions for liability to surrender units to cover emissions
    • (1) This section applies if—

      • (a) a person is required to surrender units—

        • (i) under section 65(4), 118(5), 187, 189(8), 191, or 193 in respect of an activity listed in Part 1 of Schedule 3 or Part 1 of Schedule 4 for any part of the period 1 January 2008 to 31 December 2012; or

        • (ii) under section 65(4) or 118(5) in respect of emissions for any part of the period 1 July 2010 to 31 December 2012; or

      • (b) the chief executive is required under section 123(4) or 189(7)(d) to arrange for the reimbursement of excess units because a person surrenders too many units—

        • (i) in respect of emissions for any part of the period 1 July 2010 to 31 December 2012; or

        • (ii) in respect of emissions for an activity listed in Part 1 of Schedule 3 or Part 1 of Schedule 4 for any part of the period 1 January 2008 to 31 December 2012.

      (2) Despite anything in this Act, if this section applies a person may satisfy the person's obligation to surrender or reimburse units by,—

      • (a) in the case of a person other than the chief executive,—

        • (i) surrendering the units in accordance with section 65(4), 118(5), 187, 189(8), 191, or 193 as applicable; or

        • (ii) paying a sum of $25 for each unit that the person is liable to surrender into a Crown bank account by the date or within the period by which the units were required to be surrendered; or

        • (iii) a combination of—

          • (A) surrendering units in accordance with sections 65(4), 118(5), 187, 189(8), 191, or 193 as applicable; and

          • (B) paying a sum of $25 for each unit that the person is liable to surrender, but has not or will not surrender in accordance with subsubparagraph (A), into a Crown bank account by the date or within the period by which the units were required to be surrendered; or

      • (b) in the case of the chief executive,—

        • (i) reimbursing a person with units in accordance with the procedure specified in section 124; or

        • (ii) paying a sum of $25 for each unit into a bank account designated by the person.

      (3) For the purposes of subsection (2)(a)(ii) and (iii)(B),—

      • (a) a person's obligation to surrender units is only satisfied when the funds paid into a Crown bank account are cleared; and

      • (b) for the purpose of this subsection and section 222D(1), funds paid into a Crown bank account are to be treated as cleared when it is no longer possible to reverse the payment and the funds are available for use by the Crown.

    222D Issuance of New Zealand units to meet person’s obligation
    • (1) If, in accordance with section 222C(2)(a)(ii) or (iii)(B), a person pays a sum of $25 instead of surrendering a unit that the person is liable to surrender, the Registrar must, when the funds are cleared,—

      • (a) issue a number of New Zealand units into a Crown holding account equal to the number of units in respect of which the person has paid a sum of $25; and

      • (b) transfer the New Zealand units into the person’s holding account held for the purpose of section 61(1); and

      • (c) immediately following the transfer under paragraph (b), transfer the New Zealand units to a surrender account designated by the chief executive.

      (2) The Registrar may, for the purposes of subsection (1)(a), issue a number of New Zealand units equal to the number of units in respect of which 1 or more persons have paid a sum of $25 under section 222C(2)(a)(ii) or (iii)(B).

      (3) If the chief executive is required to reimburse a person units under section 123(4) or 189(7)(d), and has satisfied his or her obligation to do so by paying to the person a sum of $25 for some or all of the units in accordance with section 222C(2)(b)(ii), then the Registrar must—

      • (a) transfer from the appropriate surrender account to the person’s holding account held for the purpose of section 61(1) a number of New Zealand units equal to the number of units for which the chief executive paid the person a sum of $25; and

      • (b) immediately following the transfer under paragraph (a), transfer the New Zealand units to a cancellation account.

      (4) For the avoidance of doubt, section 69 does not apply in respect of any New Zealand units issued under this section.

    222E Transitional provisions regarding liability to surrender units to cover emissions
    • (1) Despite anything in section 18CA(4), a New Zealand unit that is transferred to a surrender account under section 222D(1)(c) may be further transferred in accordance with section 222D(3)(a).

      (2) In the period from the date this section comes into force until 31 January 2014, the information made accessible by search of the unit register in accordance with section 27(2)(c) must include—

      • (a)  the total quantity of New Zealand units issued during the relevant year; and

      • (b) the total quantity of New Zealand units issued under section 69 in that year; and

      • (c) the total quantity of New Zealand units issued under section 222D in that year.

      (3) In the period from the date this section comes into force until 30 June 2013, the chief executive must publish, in accordance with section 89(2),—

      • (a) the total sum of money paid to a Crown bank account in accordance with section 222C(2)(a)(ii) or (iii)(B); and

      • (b) the total sum of money paid by the chief executive in accordance with section 222C(2)(b)(ii).

    222F Transitional provisions for allocation to industry
    • Despite anything in this Act,—

      • (a) a person who carries out an eligible industrial activity in the period 1 July 2010 to 31 December 2010 may apply for a provisional allocation for that period under section 86A:

      • (b) an application referred to in paragraph (a) must be made in the period from the date regulations prescribing the activity as an eligible industrial activity are notified in the Gazette under section 161A to the date that is 4 months after the date of their notification in the Gazette:

      • (c) for allocation in the period 1 July 2010 to 31 December 2010, the variable OSY in section 82 must represent the basis for allocation expressed in metric units associated with production from the activity in the period 1 January 2009 to 31 December 2009 divided by 4:

      • (d) the number of New Zealand units allocated to any person in respect of an eligible industrial activity carried out by the person in the period 1 January 2011 to 31 December 2012 must be 50% of the number calculated using the formula in sections 82, 84, or 85A.

    222G Transitional provisions regarding prohibition on ability to export New Zealand units
    • (1) Despite anything in this Act, during the period 1 July 2010 to 31 May 2013,—

      • (a) an account holder may not apply to the Registrar under section 30E(1)(a) to convert a New Zealand unit held by that person into a designated assigned amount unit for the purposes of transferring that assigned amount unit to an account in an overseas registry; and

      • (b) the Registrar must not transfer to an account in an overseas registry under section 18C—

        • (i) New Zealand units; or

        • (ii) designated assigned amount units that have been converted from New Zealand units under section 30E(3) before the commencement of this section.

      (2) This section does not apply to New Zealand units—

      • (a) received in respect of removals for an activity in Part 1 of Schedule 4; or

      • (b) transferred following a determination of the Minister under sections 78 or 79 in accordance with an allocation plan providing for the matters in section 73.