New Zealand Legislation: Supplementary Order Papers

“69A 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 147(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 69(2)(a)(i) and—

    • “(i) meet the requirements of section 69(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 69(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 69.

“69B 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 72(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.