Climate Change (Eligible Industrial Activities) Regulations 2010

Reprint as at 27 October 2016

Coat of Arms of New Zealand

Climate Change (Eligible Industrial Activities) Regulations 2010

(SR 2010/189)

Rt Hon Dame Sian Elias, Administrator of the Government

Order in Council

At Wellington this 5th day of July 2010

Present:
The Hon Bill English presiding in Council

Note

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

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

These regulations are administered by the Ministry for the Environment.

Pursuant to section 161A(1) of the Climate Change Response Act 2002, Her Excellency the Administrator of the Government, acting on the recommendation of the Minister for Climate Change Issues (being satisfied as to the matters specified in section 161A(3) of the Climate Change Response Act 2002) and on the advice and with the consent of the Executive Council, makes the following regulations.

Regulations

1 Title

These regulations are the Climate Change (Eligible Industrial Activities) Regulations 2010.

2 Commencement

These regulations come into force on 8 July 2010.

3 Interpretation

In these regulations, unless the context otherwise requires,—

CO2e means carbon dioxide equivalent

dry-weight, in relation to a product or an activity (other than a cementitious product or activity), means 100% equivalent dry-weight (0% moisture content)

fresh means grown for commercial purposes other than processing (examples of processing include, but are not limited to, artificial drying, bottling, canning, evaporating, freezing, or preserving)

saleable, in relation to a product specified in these regulations,—

(a)

means the product is of a quality generally considered by persons who are regularly in the market for that product to be—

(i)

fit for sale; or

(ii)

of commercial value; but

(b)

excludes any product that—

(i)

is substandard and has been discarded by the person who produced the product:

(ii)

is recycled while carrying out an eligible industrial activity:

(iii)

is scrapped or lost before it is packaged for sale

weight by weight, in relation to a solution, means the weight of the solute relative to the weight of the final solution expressed as a percentage.

Regulation 3 dry-weight: inserted, on 23 September 2010, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2010 (SR 2010/327).

Regulation 3 fresh: inserted, on 1 January 2011, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2010 (SR 2010/448).

Regulation 3 weight by weight: added, on 30 June 2011, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2011 (SR 2011/228).

3A Transitional, savings, and related provisions

The transitional, savings, and related provisions set out in Schedule 1 have effect according to their terms.

Regulation 3A: inserted, on 27 October 2016, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

General provisions

4 Prescribed emissions intensity and allocative baselines

(1)

The emissions intensity for each eligible industrial activity is set out in column A of Schedule 2.

(2)

The allocative baseline for each product of each eligible industrial activity is set out in column B of Schedule 2.

Regulation 4(1): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 4(2): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

5 Method of calculating amount of product from eligible industrial activities

(1)

An eligible person who, in a year, carries out an eligible industrial activity must use 1 of the following methods for calculating the amount of each product produced by carrying out the activity during that year:

(a)

direct measurement:

(b)

measurement derived from—

(i)

the units of the product sold; and

(ii)

the changes in inventory for the product.

(2)

If both of the methods specified in subclause (1) are infeasible, then the eligible person must—

(a)

select a different method to calculate the amount of each product produced by the activity; and

(b)

take all reasonable care to ensure that the selected method is the most accurate method of the different methods that may be available.

(3)

For any application for a provisional allocation or a final allocation entitlement in respect of the same year, an eligible person must use the same method to calculate the amount of product produced.

6 Allocation factors for electricity

The allocation factor for electricity used to determine—

(a)

the allocative baseline for each product specified in Schedule 2 is 0.537 tonnes of CO2e per megawatt hour of electricity:

(b)

the emissions intensity of each eligible industrial activity is 1 tonne of CO2e per megawatt hour of electricity.

Regulation 6(a): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 6(a): amended, on 1 January 2013, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2012 (SR 2012/320).

Eligible industrial activities

7 Aluminium smelting

(1)

Aluminium smelting is an eligible industrial activity.

(2)

The product produced by aluminium smelting that must be used as the basis of allocation is the total tonnes of primary aluminium (Al) as weighed after electrolysis but before casting, with a purity equal to or greater than 98%, and that is produced by carrying out the eligible industrial activity.

(3)

For the purposes of this regulation and Schedule 2, aluminium smelting means the physical and chemical transformation of alumina (aluminium oxide, Al2O3) into saleable aluminium metal, where the output of this activity is saleable aluminium metal.

(4)

Despite anything in these regulations, the allocative baselines for the product specified in subclause (2) that is produced by New Zealand Aluminium Smelters Limited (company number 156735) are as follows:

(a)

2.645, which is the allocative baseline for any 2010 final allocation:

(b)

2.726, which is the allocative baseline for any 2011 final allocation:

(c)

2.062, which is the allocative baseline for any 2012 final allocation:

(d)

10.441, which is the allocative baseline for any 2013 final allocation:

(e)

5.136, which is the allocative baseline for any 2014 final allocation:

(f)

5.152, which is the allocative baseline for any 2015 final allocation:

(g)

5.130, which is the allocative baseline for any 2016 provisional allocation:

(h)

5.130, which is the allocative baseline for any 2017 provisional allocation.

Regulation 7(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 7(4): replaced, on 3 April 2015, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2015 (LI 2015/61).

Regulation 7(4)(f): replaced, on 21 April 2016, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2016 (LI 2016/62).

Regulation 7(4)(g): replaced, on 21 April 2016, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2016 (LI 2016/62).

Regulation 7(4)(h): inserted, on 21 April 2016, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2016 (LI 2016/62).

8 Production of burnt lime

(1)

The production of burnt lime is an eligible industrial activity.

(2)

The product produced by the production of burnt lime that must be used as the basis of allocation is the total tonnes of burnt lime that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, the production of burnt lime means the physical and chemical transformation through the calcining process of calcium and magnesium sources (eg, calcium carbonate (CaCO3) and magnesium carbonate (MgCO3)) into saleable burnt lime, where the output is burnt lime with a calcium oxide (CaO) or magnesium oxide (MgO) mass content equal to or greater than 60%.

Regulation 8(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

9 Production of carbamide (urea)

(1)

The production of carbamide (urea) is an eligible industrial activity.

(2)

The product produced by the production of carbamide (urea) that must be used as the basis of allocation is the total tonnes of dry-weight carbamide (CO(NH2)2, urea) that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of carbamide (urea) means the chemical transformation of hydrocarbons (or other hydrogen and carbon feedstocks) and nitrogen to produce carbamide solution (CO(NH2)2(aq), urea), where the concentration of carbamide (CO(NH2)2, urea) is greater than or equal to 80% with respect to mass, and subsequent production of the following outputs:

(a)

carbamide solution (CO(NH2)2(aq), urea):

(b)

saleable granulated, prilled, or other solid forms of carbamide (CO(NH2)2(s), urea).

Regulation 9(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

10 Production of cartonboard

(1)

The production of cartonboard is an eligible industrial activity.

(2)

The products produced by the production of cartonboard that must be used as the basis of allocation are—

(a)

Product A, which consists of the total tonnes of rolls or sheets of coated or uncoated cartonboard that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(b)

Product B, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of pulp produced directly from wood billets, wood chips, or sawdust that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(c)

Product C, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of pulp produced directly from recovered paper that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of cartonboard means the physical transformation of wood chips, sawdust, log billets, wood pulp, or recovered paper to produce rolls or sheets of cartonboard, where the output of this activity is saleable cartonboard that has a grammage range of 150 g/m2 to 500 g/m2, a moisture content in the range of 4% to 11% by weight, and is to be generally used as a cartonboard product (for example, kraft liner, multi-ply, and other paperboard).

Regulation 10(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

11 Production of caustic soda

(1)

The production of caustic soda is an eligible industrial activity.

(2)

The product produced by the production of caustic soda that must be used as the basis of allocation is the total tonnes of 100% equivalent dry-weight sodium hydroxide (NaOH, caustic soda) that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

not recycled back into the eligible industrial activity; and

(c)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of caustic soda means the production of chlorine gas and sodium hydroxide (caustic soda) solution by the chemical transformation of sodium chloride solution (NaCl(aq), brine) to chlorine (Cl2(l,g)) and sodium hydroxide solution (NaOH(aq), caustic soda solution), where the sodium hydroxide (NaOH) production is 1:1.13 times the production of chlorine (Cl2) by mass and the outputs include—

(a)

chlorine (Cl2(l,g)); and

(b)

sodium hydroxide solution (NaOH(aq), caustic soda solution), which must have a concentration of sodium hydroxide (NaOH) equal to or greater than 14% with respect to mass.

(4)

The chemical reaction involved in the chemical transformation specified in subclause (3) is—

2NaCl(aq) + 2H2O(l) → 2NaOH(aq) + Cl2(g) + H2(g).

Regulation 11(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

12 Production of ethanol

(1)

The production of ethanol is an eligible industrial activity.

(2)

The product produced by the production of ethanol that must be used as the basis of allocation is the total kilolitres of 100% equivalent ethanol (C2H5OH) at 20°C, assuming a density of ethanol (C2H5OH) of 789.24 kg/m3 at 20°C, that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of ethanol means the production of high-purity ethanol by the chemical transformation of fermentable sugars (for example, C6H12O6 or C5H10O5 or C12H22O11 or C18H32O16) to ethanol (C2H5OH) and the subsequent purification process, where the outputs include high-purity ethanol, which must have a concentration of ethanol (C2H5OH) equal to or greater than 95% with respect to volume.

Regulation 12(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

13 Production of hydrogen peroxide

(1)

The production of hydrogen peroxide is an eligible industrial activity.

(2)

The product produced by the production of hydrogen peroxide that must be used as the basis of allocation is the total tonnes of 100% equivalent hydrogen peroxide (H2O2) that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of hydrogen peroxide means the chemical transformation of hydrogen (H) feedstocks and oxygen (O) feedstocks to produce a crude aqueous hydrogen peroxide solution, where the concentration of hydrogen peroxide (H2O2(aq)) is equal to or greater than 39% with respect to mass, and subsequent production of saleable aqueous hydrogen peroxide solutions, where the outputs include aqueous hydrogen peroxide solutions, which must have a concentration of hydrogen peroxide (H2O2(aq)) equal to or greater than 34% with respect to mass.

Regulation 13(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

14 Production of market pulp

(1)

The production of market pulp is an eligible industrial activity.

(2)

The products produced by the production of market pulp that must be used as the basis of allocation are—

(a)

Product A, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of low-yield pulp that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(b)

Product B, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of high-yield and low-freeness pulp that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(c)

Product C, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of high-yield and high-freeness pulp that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

Any amount of the products described in subclause (2) that is to be used as the basis of allocation for the production of market pulp may not be used as the basis of allocation for any other eligible industrial activity.

(4)

For the purposes of this regulation and Schedule 2, production of market pulp means the physical transformation of wood chips, sawdust, wood pulp, or recovered paper to produce rolls or bales of market pulp, provided that the market pulp is dried to a moisture content of 4% to 20% by weight and is generally used in paper manufacturing, fibre cement products, or in the production of sanitary products, where the outputs include—

(a)

low-yield pulp with a fibre recovery less than or equal to 80% bone-dry fibre by mass on bone-dry wood input:

(b)

high-yield and low-freeness pulp with a fibre recovery greater than 80% bone-dry fibre by mass on bone-dry wood input, and a Canadian Standard Freeness of less than 150 ml:

(c)

high-yield and high-freeness pulp with a fibre recovery greater than 80% bone-dry fibre by mass on bone-dry wood input, and a Canadian Standard Freeness of greater than or equal to 150 ml.

Regulation 14(4): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

15 Production of methanol

(1)

The production of methanol is an eligible industrial activity.

(2)

The product produced by the production of methanol that must be used as the basis of allocation is the total tonnes of 100% equivalent methanol (CH3OH) that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of methanol means the chemical transformation of 1 or more of hydrocarbons, hydrogen feedstocks, carbon feedstocks, and oxygen feedstocks to produce liquid methanol (CH3OH), where the outputs include liquid methanol (CH3OH), which must have a concentration equal to or greater than 98% with respect to mass.

Regulation 15(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

16 Production of newsprint

(1)

The production of newsprint is an eligible industrial activity.

(2)

The products produced by the production of newsprint that must be used as the basis of allocation are—

(a)

Product A, which consists of tonnes of rolls of uncoated newsprint that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(b)

Product B, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of pulp produced directly from wood chips or sawdust that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of newsprint means the physical transformation of wood chips, sawdust, wood pulp or recovered paper to produce rolls of uncoated newsprint, where the output of this activity is uncoated newsprint that has a grammage range of 30 g/m2 to 80 g/m2, a moisture content in the range of 6% to 11% by weight, and is generally used as a newspaper product.

Regulation 16(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

17 Production of packaging and industrial paper

(1)

The production of packaging and industrial paper is an eligible industrial activity.

(2)

The products produced by the production of packaging and industrial paper that must be used as the basis of allocation are—

(a)

Product A, which consists of tonnes of saleable rolls of uncoated packaging or industrial paper that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(b)

Product B, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of pulp produced directly from wood chips or sawdust that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(c)

Product C, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of pulp produced directly from recovered paper that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of packaging and industrial paper means the physical transformation of wood chips, sawdust, wood pulp, or recovered paper to produce rolls of uncoated packaging and industrial paper, where the output of this activity is uncoated packaging or industrial paper that has a grammage range of 30 g/m2 to 500 g/m2, a moisture content in the range of 4% to 12% by weight, and that is generally used as a packaging or industrial paper product (for example, kraft liner; recycled or multi-ply liner; medium, sack, and bag paper; wrapping paper; plasterboard liner; horticultural paper; or building paper; but excluding products produced by the production of cartonboard as specified in regulation 10).

Regulation 17(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

18 Production of tissue paper

(1)

The production of tissue paper is an eligible industrial activity.

(2)

The products produced by the production of tissue paper that must be used as the basis of allocation are—

(a)

Product A, which consists of tonnes of rolls of uncoated tissue paper that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(b)

Product B, which consists of equivalent air-dried tonnes (90% bone-dry fibre, 10% moisture content) of pulp produced directly from wood chips or sawdust that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of tissue paper means the physical transformation of wood chips, sawdust, or wood pulp to produce rolls of uncoated tissue paper, where the output of this activity is uncoated tissue paper that has a grammage range of 13 g/m2 to 75 g/m2, a moisture content in the range of 4% to 11% by weight, and is generally used as a tissue paper product (for example, facial tissue, paper towel, bathroom tissue, or napkins).

Regulation 18(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

19 Manufacture of carbon steel from cold ferrous feed

(1)

The manufacture of carbon steel from cold ferrous feed is an eligible industrial activity.

(2)

The products produced by the manufacture of carbon steel from cold ferrous feed that must be used as the basis of allocation are—

(a)

product A, which consists of the total tonnes of continuously cast carbon steel products and ingots of carbon steel, whether or not subsequently hot-rolled, that—

(i)

are produced by carrying out the eligible industrial activity of manufacture of carbon steel from cold ferrous feed; and

(ii)

are not a relevant product; and

(iii)

are of saleable quality; and

(b)

product B, which consists of the total tonnes of long products of hot-rolled carbon steel that—

(i)

are produced by carrying out the eligible industrial activity of manufacture of carbon steel from cold ferrous feed; and

(ii)

are not a relevant product; and

(iii)

are of saleable quality; and

(c)

product C, which consists of the total tonnes of flat products of hot-rolled carbon steel that—

(i)

are produced by carrying out the eligible industrial activity of manufacture of carbon steel from cold ferrous feed; and

(ii)

are not a relevant product; and

(iii)

are of saleable quality.

(3)

Long products of hot-rolled carbon steel and flat products of hot-rolled carbon steel may each be counted as a product only once in relation to the carrying on of the eligible industrial activity of manufacture of carbon steel from cold ferrous feed.

(4)

For the purposes of this regulation and Schedule 2,—

carbon steel means a material that contains by mass more iron (Fe) than any other single element and has a carbon (C) content of less than 2%

flat products of hot-rolled carbon steel means hot-rolled carbon steel products that—

(a)

are flat in profile, such as plate and hot-rolled coil; and

(b)

are generally produced in hot strip and plate mills; and

(c)

are generally at least 600 mm wide; and

(d)

are generally no thicker than 150 mm; and

(e)

are produced from continuously cast carbon steel products that are produced as part of carrying on the eligible industrial activity of either the manufacture of carbon steel from cold ferrous feed or the manufacture of iron and steel from iron sand

long products of hot-rolled carbon steel means hot-rolled carbon steel products that—

(a)

are in coils or straight lengths; and

(b)

are generally produced in rod, bar, and structural (section) mills; and

(c)

are generally of a cross-sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile, or rail profile; and

(d)

are produced from continuously cast carbon steel products that are produced as part of carrying on the eligible industrial activity of either the manufacture of carbon steel from cold ferrous feed or the manufacture of iron and steel from iron sand

manufacture of carbon steel from cold ferrous feed

(a)

means the physical and chemical transformation of cold ferrous feed (for example, ferrous scrap, pig iron, and flat iron) by heating it and melting it into liquid steel and the subsequent casting of the liquid steel to produce 1 or more of the following:

(i)

continuously cast carbon steel products:

(ii)

ingots of carbon steel:

(iii)

hot-rolled carbon steel products that commence hot-rolling at a temperature higher than 800°C; and

(b)

includes the physical transformation of continuously cast carbon steel products into hot-rolled carbon steel products that commence hot-rolling at a temperature higher than 800°C where the continuously cast carbon steel products are produced at any other facility that conducts—

(i)

the eligible industrial activity of manufacture of carbon steel from cold ferrous feed; or

(ii)

the eligible industrial activity of manufacture of iron and steel from iron sand

manufacture of iron and steel from iron sand has the meaning given to it in regulation 23(3)

relevant product means a product that is used as a basis of allocation for the eligible industrial activity of manufacture of iron and steel from iron sand.

Regulation 19: added, on 12 August 2010, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2010 (SR 2010/237).

Regulation 19(2): replaced, on 1 January 2014, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013 (SR 2013/466).

Regulation 19(3): replaced, on 1 January 2014, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013 (SR 2013/466).

Regulation 19(4): inserted, on 1 January 2014, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013 (SR 2013/466).

Regulation 19(4): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

20 Production of cementitious products

(1)

The production of cementitious products is an eligible industrial activity.

(2)

The products produced by the production of cementitious products that must be used as the basis of allocation are—

(a)

Product A, which consists of the total tonnes, on a dry-weight basis, of Portland cement clinker produced by carrying out the eligible industrial activity:

(b)

Product B, which consists of the total tonnes, on a dry-weight basis, of cement produced by carrying out the eligible industrial activity.

(3)

For the purposes of this regulation and Schedule 2, production of cementitious products means the physical and chemical transformation of calcium carbonate compounds (CaCO3, limestone) or other calcium carbonate (CaCO3) feedstocks (component A) and clay or other silicon dioxide (SiO2, silica), iron (Fe), aluminium oxide (Al2O3, alumina), and other feedstocks (component B) into cementitious outputs—

(a)

that—

(i)

involves the fusion of inputs together at a temperature greater than 1000ºC into Portland cement clinker that consists of at least 60% by mass of calcium silicates, and a maximum magnesium oxide (MgO) mass content of 4.5% (Process 1); and

(ii)

may involve the further transformation of this Portland cement clinker, produced as a result of Process 1, into cement through a process of blending and grinding with other suitable feedstocks (Process 2); and

(b)

where the outputs are—

(i)

Portland cement clinker that is suitable for the subsequent manufacture of cement specified in subparagraph (ii):

(ii)

cement that complies with the relevant New Zealand Standards for cement (NZS 3122:2009, NZS 3123:2009, and NZS 3125:1991) and any other relevant international standards required for export cement consignments.

Regulation 20: added, on 12 August 2010, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2010 (SR 2010/237).

Regulation 20(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

21 Production of clay bricks and field tiles

(1)

The production of clay bricks and field tiles is an eligible industrial activity.

(2)

The products produced by the production of clay bricks and field tiles that must be used as the basis of allocation are—

(a)

Product A, which consists of the total tonnes of facing bricks and pavers primarily used for facade and landscaping that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(b)

Product B, which consists of the total tonnes of field tiles and other clay-based products related to the fitting and joining of field tiles and drainage that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(c)

Product C, which consists of the total tonnes of fire bricks that is—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of clay bricks and field tiles means the physical and chemical transformation of clays (including kaolinite and other clay minerals) by controlled mixing, forming, drying, and firing of the raw materials at a single location, where clay makes up at least 90% by weight of the raw materials (and additives to the clay do not exceed 10% by weight of the raw materials) and the clay composition includes alumina, silica, and varying degrees of metal oxides, where the outputs include—

(a)

facing bricks and pavers primarily used for facade and landscaping:

(b)

field tiles and other clay-based products related to the fitting and joining of field tiles and drainage:

(c)

fire bricks, where these are produced from clays as the raw material and additives to the clays (including feldspar, silica, and other metal oxides).

Regulation 21: added, on 12 August 2010, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2010 (SR 2010/237).

Regulation 21(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

22 Production of glass containers

(1)

The production of glass containers is an eligible industrial activity.

(2)

The product produced by the production of glass containers that must be used as the basis of allocation is the total tonnes of blown and pressed glass containers that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of glass containers means the physical and chemical transformation of silica (silicon dioxide (SiO2)) and other raw and recycled materials (for example, cullet) to produce blown or pressed glass containers by controlled melting and forming in a contiguous process, where the outputs include blown and pressed glass containers.

Regulation 22: added, on 12 August 2010, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations 2010 (SR 2010/237).

Regulation 22(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

23 Manufacture of iron and steel from iron sand

(1)

The manufacture of iron and steel from iron sand is an eligible industrial activity.

(2)

The products produced by the manufacture of iron and steel from iron sand that must be used as the basis of allocation are—

(a)

Product A, which consists of the total tonnes of molten iron, as measured before the addition of any cold ferrous feed (for example, scrap steel or solid pig iron), that is produced by carrying out the eligible industrial activity:

(b)

Product B, which consists of the total tonnes of cast carbon steel products that are rectangular in cross-section (known as steel slab) and that are—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(c)

Product C, which consists of the total tonnes of vanadium-bearing materials that are—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(d)

Product D, which consists of the total tonnes of flat products of hot-rolled carbon steel that are—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(e)

Product E, which consists of the total tonnes of cast carbon steel products that are square in cross-section (known as steel billet) and that are—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality:

(f)

Product F, which consists of the total tonnes of long products of hot-rolled carbon steel that are—

(i)

produced by carrying out the eligible industrial activity; and

(ii)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2,—

carbon steel means a material that contains by mass more iron (Fe) than any other single element and has a carbon (C) content that does not exceed 2%

flat products of hot-rolled carbon steel means hot-rolled steel products produced in hot strip or plate mills that are flat in profile (for example, plate and hot-rolled coil), and typically are greater than 600 mm in width and less than 150 mm in thickness

long products of hot-rolled carbon steel means hot-rolled carbon steel products that are—

(a)

in coils or straight lengths; and

(b)

generally produced in rod, bar, and structural (section) mills; and

(c)

generally of a cross-sectional shape such as I, T, Y, U, V, H, C, L, square, rectangular, round, flat, hexagonal, angle, channel, structural beam profile, or rail profile

manufacture of iron and steel from iron sand means the chemical and physical transformation of iron sand into pig iron products, cast carbon steel products, and hot-rolled carbon steel products, where iron sand is the predominant feed material,—

(a)

involving the conduct of the following processes:

(i)

the—

(A)

chemical and physical transformation of iron sand into iron, which proceeds via the reduction of oxides of iron using carbon as the predominant reducing agent; and

(B)

conditioning or pre-treatment of molten iron to remove impurities, upstream of the steel-making process; and

(ii)

the—

(A)

subsequent solidification of molten iron into pig iron; or

(B)

chemical and physical transformation of molten iron and cold ferrous feed (for example, solid pig iron and ferrous scrap) into saleable cast carbon steel products or saleable hot-rolled carbon steel products (where the hot-rolling of the hot-rolled carbon steel products commences at over 800°C); and

(b)

where the outputs are—

(i)

saleable pig iron products that are not subsequently used in the steel-making process:

(ii)

saleable cast carbon steel products that are not subsequently hot-rolled:

(iii)

saleable vanadium-bearing materials with a minimum vanadium concentration (expressed as V2O5) of 8%:

(iv)

saleable hot-rolled carbon steel products

molten iron means molten iron that has a maximum carbon (C) mass content of 6% and a minimum total iron (Fe) content of 94%.

Regulation 23: added, on 23 September 2010, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2010 (SR 2010/327).

Regulation 23(2)(b): amended, on 27 October 2016, by regulation 6(1) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 23(2)(e): inserted, on 27 October 2016, by regulation 6(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 23(2)(f): inserted, on 27 October 2016, by regulation 6(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 23(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Regulation 23(3) long products of hot-rolled carbon steel: inserted, on 27 October 2016, by regulation 6(3) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

24 Production of gelatine

(1)

The production of gelatine is an eligible industrial activity.

(2)

The product produced by the production of gelatine that must be used as the basis of allocation is the total tonnes, on a dry-weight basis, of gelatine that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of gelatine means the physical and chemical transformation of collagen contained in animal material, including skins, bones, and connective tissues, where the output of the activity is gelatine with at least 97% protein content on a dry-weight basis.

Regulation 24: added, on 23 September 2010, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2010 (SR 2010/327).

Regulation 24(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

25 Production of protein meal

(1)

The production of protein meal is an eligible industrial activity.

(2)

The product produced by the production of protein meal that must be used as the basis of allocation is the total tonnes of protein meal that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of protein meal means the physical and chemical transformation of raw livestock-derived animal material to produce protein meal (for example, meat and bone meal, dried blood, and feather meal), where the output of the activity is protein meal that has a moisture content that does not exceed 10%.

Regulation 25: added, on 2 December 2010, by regulation 5(1) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2010 (SR 2010/448).

Regulation 25(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

26 Production of fresh capsicums

(1)

The production of fresh capsicums is an eligible industrial activity.

(2)

The product produced by the production of fresh capsicums that must be used as the basis of allocation is the total tonnes of fresh capsicums that are—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of fresh capsicums means the biological transformation of capsicum seedlings in their final growing position to produce capsicums, where the output of the activity is fresh capsicums.

Regulation 26: added, on 1 January 2011, by regulation 5(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2010 (SR 2010/448).

Regulation 26(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

27 Production of fresh cucumbers

(1)

The production of fresh cucumbers is an eligible industrial activity.

(2)

The product produced by the production of fresh cucumbers that must be used as the basis of allocation is the total tonnes of fresh cucumbers that are—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of fresh cucumbers means the biological transformation of cucumber seedlings in their final growing position to produce cucumbers, where the output of the activity is fresh cucumbers.

Regulation 27: added, on 1 January 2011, by regulation 5(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2010 (SR 2010/448).

Regulation 27(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

28 Production of cut roses

(1)

The production of cut roses is an eligible industrial activity.

(2)

The product produced by the production of cut roses that must be used as the basis of allocation is the number of cut flowering rose stems that are—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of cut roses means the biological transformation of rose plants in their final growing position to produce flowering rose stems grown for commercial purposes, where the output of the activity is cut flowering rose stems.

Regulation 28: added, on 1 January 2011, by regulation 5(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2010 (SR 2010/448).

Regulation 28(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

29 Production of fresh tomatoes

(1)

The production of fresh tomatoes is an eligible industrial activity.

(2)

The product produced by the production of fresh tomatoes that must be used as the basis of allocation is the total tonnes of fresh tomatoes that are—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of fresh tomatoes means the biological transformation of tomato seedlings in their final growing position to produce tomatoes, where the output of the activity is fresh tomatoes.

Regulation 29: added, on 1 January 2011, by regulation 5(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2010 (SR 2010/448).

Regulation 29(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

30 Production of reconstituted wood panels

(1)

The production of reconstituted wood panels is an eligible industrial activity.

(2)

The product produced by the production of reconstituted wood panels that must be used as the basis of allocation is the total tonnes of reconstituted wood panels that are—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of reconstituted wood panels means the physical and chemical transformation of wood particles (for example, wood flakes, chips, shavings, sawdust, and strands) and adhesives (for example, resins), where—

(a)

the output of the activity is reconstituted wood panels (for example, particleboard, fibreboard, strandboard, and triboard) with a density that exceeds 400 kg/m3; and

(b)

the individual wood particles have no dimension that exceeds 100 mm.

Regulation 30: added, on 24 March 2011, by regulation 4 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2011 (SR 2011/55).

Regulation 30(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

31 Production of lactose

(1)

The production of lactose is an eligible industrial activity.

(2)

The product produced by the production of lactose that must be used as the basis of allocation is the total tonnes of dry-weight lactose that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of lactose means the separation and drying of lactose from permeate, where—

(a)

permeate consists of milk solids in a dilute aqueous solution separated from milk or whey by permeation through ultrafiltration membranes and has a water content that does not exceed 96.5% weight by weight and a milk-derived protein content that does not exceed 0.5% weight by weight; and

(b)

the output is lactose that meets the compositional standards of the lactose component of Codex Standard 212-1999 for sugars.

Regulation 31: added, on 30 June 2011, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2011 (SR 2011/228).

Regulation 31(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

32 Production of whey powder

(1)

The production of whey powder is an eligible industrial activity.

(2)

The product produced by the production of whey powder that must be used as the basis of allocation is the total tonnes of dry-weight whey powder that is—

(a)

produced by carrying out the eligible industrial activity; and

(b)

of saleable quality.

(3)

For the purposes of this regulation and Schedule 2, production of whey powder means the physical and chemical transformation of whey, which consists of residual water and milk solids following the separation of curd from a milk-based coagulation process (for example, cheese or casein curd manufacture), into whey powder, where the output is whey powder that meets the compositional standards in the Codex Standard 289-1995 for whey powders and has a milk-derived protein content that does not exceed 33% weight by weight on an as-is basis.

Regulation 32: added, on 30 June 2011, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 3) 2011 (SR 2011/228).

Regulation 32(3): amended, on 27 October 2016, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Schedule 1 Transitional, savings, and related provisions

r 3A

Schedule 1: inserted, on 27 October 2016, by regulation 7 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Part 1 Provision relating to Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016

1 Allocation for period beginning on 1 January 2016 for manufacture of iron and steel from iron sand

(1)

A person may apply for and receive an allocation in respect of a period beginning on or after 1 January 2016 in accordance with these regulations as amended by the amendment regulations.

Schedule 2 Prescribed emissions intensity and allocative baselines

r 4

Schedule 2: replaced, as the Schedule, on 1 January 2014, by regulation 5 of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013 (SR 2013/466).

Schedule 2 schedule number: inserted, on 27 October 2016, by regulation 8(1) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Eligible industrial activityColumn AColumn B
Emissions intensityAllocative baseline
Aluminium smeltingHigh10.1304
Manufacture of carbon steel from cold ferrous feedHighProduct A: 0.3693
Product B: 0.1470
Product C: 0.0940
Manufacture of iron and steel from iron sandHighProduct A: 3.2613
Product B: 0.1190
Product C: 0.2800
Product D: 0.1630
Product E: 0.1493
Product F: 0.1470
Production of burnt limeHigh1.4115
Production of carbamide (urea)High1.6245
Production of cartonboardHighProduct A: 1.1783
Product B: 0.4784
Product C: 0.3377
Production of caustic sodaHigh1.5926
Production of cementitious productsHighProduct A: 0.9615
Product B: 0.0234
Production of clay bricks and field tilesModerateProduct A: 0.2264
Product B: 0.8813
Product C: 0.2227
Production of cut rosesHigh0.000991
Production of ethanolModerate1.5076
Production of fresh capsicumsModerate3.6064
Production of fresh cucumbersModerate3.4461
Production of fresh tomatoesModerate2.6006
Production of gelatineModerate6.4607
Production of glass containersModerate0.5946
Production of hydrogen peroxideHigh1.3950
Production of lactoseModerate1.4323
Production of market pulpHighProduct A: 0.6215
Product B: 1.3812
Product C: 1.0463
Production of methanolHigh0.7854
Production of newsprintHighProduct A: 0.5035
Product B: 1.3662
Production of packaging and industrial paperHighProduct A: 0.4657
Product B: 0.5171
Product C: 0.0961
Production of protein mealModerate0.9360
Production of reconstituted wood panelsModerate0.2134
Production of tissue paperModerateProduct A: 1.2176
Product B: 0.7896
Production of whey powderModerate0.8526

Schedule 2: amended, on 27 October 2016, by regulation 8(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2016 (LI 2016/214).

Schedule 2: amended, on 1 January 2015, by regulation 4(1) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2014 (LI 2014/368).

Schedule 2: amended, on 1 January 2015, by regulation 4(2) of the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2014 (LI 2014/368).

Rebecca Kitteridge,
Clerk of the Executive Council.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 8 July 2010.

Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2012

(SR 2012/320)

Jerry Mateparae, Governor-General

Order in Council

At Wellington this 23rd day of October 2012

Present:
His Excellency the Governor-General in Council

Pursuant to section 161A(1) of the Climate Change Response Act 2002, His Excellency the Governor-General, acting on the recommendation of the Minister for Climate Change Issues and on the advice and with the consent of the Executive Council, makes the following regulations.

Regulations

2 Commencement

These regulations come into force on 1 January 2013.

3 Principal regulations

These regulations amend the Climate Change (Eligible Industrial Activities) Regulations 2010 (the principal regulations).

6 Transitional provision

Despite regulations 4 and 5, regulation 6 and the Schedule as they were immediately before the commencement of these regulations continue in force for any 2012 final allocation as if these regulations had not been made.

Michael Webster,
for Clerk of the Executive Council.

Date of notification in Gazette: 25 October 2012.

Reprints notes
1 General

This is a reprint of the Climate Change (Eligible Industrial Activities) Regulations 2010 that incorporates all the amendments to those regulations as at the date of the last amendment to them.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.