Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013

2013/466

Coat of Arms of New Zealand

Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013

Jerry Mateparae, Governor-General

Order in Council

At Wellington this 25th day of November 2013

Present:
His Excellency the Governor-General in Council

Pursuant to sections 161A and 161B of the Climate Change Response Act 2002, His Excellency the Governor-General makes the following regulations, acting—

  • (a) on the advice and with the consent of the Executive Council; and

  • (b) on the recommendation of the Minister for Climate Change Issues after complying with section 161F(1) of that Act.

Regulations

1 Title
  • These regulations are the Climate Change (Eligible Industrial Activities) Amendment Regulations (No 2) 2013.

2 Commencement
  • These regulations come into force on 1 January 2014.

3 Principal regulations
4 Regulation 19 amended (Manufacture of carbon steel from cold ferrous feed)
  • Replace regulation 19(2) and (3) with:

    • (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 the Schedule,—

      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.

5 Schedule replaced
  • Replace the Schedule with the Schedule set out in the Schedule of these regulations.


Schedule
Schedule replaced

r 5

Schedule
Prescribed emissions intensity and allocative baselines

r 4

Eligible industrial activity Column A Column B
 Emissions intensity Allocative baseline
Aluminium smelting High 10.1304
Manufacture of carbon steel from cold ferrous feed High Product A: 0.3693
   Product B: 0.1470
    Product C: 0.0940
Manufacture of iron and steel from iron sand High Product A: 3.2613
   Product B: 0.1190
    Product C: 0.2800
    Product D: 0.1630
Production of burnt lime High 1.4674
Production of carbamide (urea) High 1.6245
Production of cartonboard High Product A: 1.1783
    Product B: 0.4784
    Product C: 0.3377
Production of caustic soda High 1.6585
Production of cementitious products High Product A: 0.9615
   Product B: 0.0234
Production of clay bricks and field tiles Moderate Product A: 0.2264
   Product B: 0.8813
    Product C: 0.2227
Production of cut roses High 0.000991
Production of ethanol Moderate 1.5076
Production of fresh capsicums Moderate 3.6064
Production of fresh cucumbers Moderate 3.4461
Production of fresh tomatoes Moderate 2.6006
Production of gelatine Moderate 6.4607
Production of glass containers Moderate 0.5946
Production of hydrogen peroxide High 1.3950
Production of lactose Moderate 1.4323
Production of market pulp High Product A: 0.6215
    Product B: 1.3812
    Product C: 1.0463
Production of methanol High 0.7854
Production of newsprint High Product A: 0.5035
    Product B: 1.3662
Production of packaging and industrial paper High Product A: 0.4657
   Product B: 0.5171
    Product C: 0.0961
Production of protein meal Moderate 0.9360
Production of reconstituted wood panels Moderate 0.2134
Production of tissue paper Moderate Product A: 1.2176
    Product B: 0.7896
Production of whey powder Moderate 0.8526

Rebecca Kitteridge,
Clerk of the Executive Council.


Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on 1 January 2014, amend the Climate Change (Eligible Industrial Activities) Regulations 2010. The amendments—

  • amend regulation 19 (which concerns the eligible industrial activity of manufacture of carbon steel from cold ferrous feed) to prescribe the activity in the same manner as the equivalent Australian activity (see sections 161A(3)(b) and 161B of the Climate Change Response Act 2002); and

  • replace the Schedule (which prescribes the emissions intensity and the allocative baselines for eligible industrial activities and their products) to reclassify the emissions intensity of the eligible industrial activity of manufacture of carbon steel from cold ferrous feed from moderate to high, and to update the allocative baselines for eligible industrial activities to reflect the inclusion of emissions from fugitive coal seam methane and the direct use of liquid fossil fuels in stationary equipment.


Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 28 November 2013.

These regulations are administered by the Ministry for the Environment.