Supplementary Order Paper No 98

4 Application of Schedules 3 and 4

• (1) Section 2A is amended by repealing subsection (1) and substituting the following subsection:

  • “(1) Any provision in this Act that imposes an obligation on, or provides an entitlement to, a person in respect of an activity listed in Schedule 3 or 4—

    • “(a) does not apply to that person unless—

      • “(i) the Part or subpart in Schedule 3 or 4 in which the activity is listed applies; and

      • “(ii) the person, if carrying out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3, falls within a class of persons prescribed in an Order in Council that applies that subpart; and

    • “(b) applies subject to sections 2C(3), 217 to 221, and 222A to 222D.

  (2) Section 2A(5) is amended by omitting “, unless repealed under subsection (10) before that date”.

  (3) Section 2A(6) is amended by omitting “, unless repealed under subsection (11) before that date”.

  (4) Section 2A(8) is amended by omitting “1 January 2011 if the Governor-General makes an Order in Council to that effect” and substituting “a date appointed by the Governor-General by Order in Council”.

  (5) Section 2A(9) is amended by omitting “1 January 2011 if the Governor-General makes an Order in Council to that effect” and substituting “a date appointed by the Governor-General by Order in Council”.

  (6) Section 2A(10) to (13), and (15) to (19), are repealed.

5 New sections 2B and 2C inserted

• The following sections are inserted after section 2A:

  “2B Orders in Council in relation to Part 5 of Schedule 3

  • “(1) An Order in Council made under section 2A(8) or (9) appointing a date on and after which subpart 2 or 4 of Part 5 of Schedule 3 applies must—

    • “(a) be made on the recommendation of the Minister responsible for the administration of this Act; and

    • “(b) appoint a date that is 1 January in a year; and

    • “(c) be made at least 1 year before the date appointed in the Order in Council; and

    • “(d) not appoint a date earlier than 1 January 2013.

    “(2) One or more Orders in Council made under section 2A(8) or (9) may provide that subpart 2 or 4 of Part 5 of Schedule 3 applies—

    • “(a) specifically to 1 or more classes of persons who carry out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 on and after a date appointed in the order; or

    • “(b) generally to all persons who carry out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 on and after a date appointed in the order.

    “(3) Before recommending that an Order in Council be made under section 2A(8) or (9), the Minister must have regard to—

    • “(a) the need for the chief executive responsible for the administration of Parts 4 and 5 of this Act to be able to verify information contained in emissions returns of the persons who will become participants in respect of an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 by operation of the order; and

    • “(b) the likelihood that, as a result of becoming participants by operation of the order, persons carrying out an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 will reduce their emissions; and

    • “(c) the desirability of minimising—

      • “(i) the compliance and administration costs of persons who will become participants in respect of an activity listed in subpart 2 or 4 of Part 5 of Schedule 3 by operation of the order; and

      • “(ii) the administration costs of the Crown in administering the greenhouse gas emissions trading scheme established under this Act.

  “2C Effect of Orders in Council in relation to Part 5 of Schedule 3

  • “(1) This section applies if an Order in Council made under section 2A(8) or (9) has the effect that subparts 1 and 2 of Part 5 of Schedule 3, or subparts 3 and 4 of Part 5 of Schedule 3, apply at the same time.

    “(2) If this section applies, then regulations made under section 163(1) may require—

    • “(a) a person carrying out an activity listed in subpart 1 of Part 5 of Schedule 3 and a person carrying out an activity listed in subpart 2 of Part 5 of Schedule 3 to—

      • “(i) collect data or other information relating to the same synthetic fertiliser; and

      • “(ii) calculate emissions in respect of emissions relating to the same synthetic fertiliser; or

    • “(b) a person carrying out an activity listed in subpart 3 of Part 5 of Schedule 3 and a person carrying out an activity listed in subpart 4 of Part 5 of Schedule 3 to—

      • “(i) collect data or other information relating to the same ruminant animals, pigs, horses, or poultry; and

      • “(ii) calculate emissions relating to the same ruminant animals, pigs, horses, or poultry.

    “(3) However,—

    • “(a) on and after the date from which the person carrying out an activity listed in subpart 2 of Part 5 of Schedule 3 is required to surrender units for emissions relating to the fertiliser, this Act no longer applies to the person carrying out the activity listed in subpart 1 of Part 5 of Schedule 3 in relation to the fertiliser; and

    • “(b) on and after the date from which the person carrying out an activity listed in subpart 4 of Part 5 of Schedule 3 is required to surrender units for emissions relating to the ruminant animals, pigs, horses, or poultry, this Act no longer applies to the person carrying out the activity listed in subpart 3 of Part 5 of Schedule 3 in relation to those ruminant animals, pigs, horses, or poultry.

    “(4) If an Order in Council is made under—

    • “(a) section 2A(8) that has the effect of applying subpart 2 of Part 5 of Schedule 3 to all persons who carry out an activity listed in that subpart from a date appointed in that order, then section 2A(5) and subpart 1 of Part 5 of Schedule 3 expire and are repealed on the date from which all persons carrying out an activity listed in subpart 2 of Part 5 of Schedule 3 are liable to surrender units in respect of emissions from the activity:

    • “(b) section 2A(9) that has the effect of applying subpart 4 of Part 5 of Schedule 3 to all persons who carry out an activity listed in that subpart from a date appointed in that order, then section 2A(6) and subpart 3 of Part 5 of Schedule 3 expire and are repealed on the date from which all persons carrying out an activity listed in subpart 4 of Part 5 of Schedule 3 are liable to surrender units in respect of emissions from the activity.

    “(5) If, by operation of subsection 3(a) or (b) or (4)(a) or (b), this Act no longer applies to a person carrying out an activity in subpart 1 or 3 of Part 5 of Schedule 3, or an activity listed in subpart 1 or 3 of Part 5 of Schedule 3 is repealed, then—

    • “(a) section 54(4) applies, with any necessary modifications, to any person who has ceased, by operation of the provision, to be a participant in respect of that activity; and

    • “(b) the person is not required to comply with section 59, but the chief executive may, for the purposes of section 59(2), determine that the person has ceased to carry out the activity.

5A Purpose

• (1) Section 3 is amended by repealing the first subsection (2).

  (2) Section 3 is amended by adding the following subsection:

  • “(3) For the purposes of this section, business-as-usual levels means the levels of New Zealand's greenhouse gas emissions, estimated by a Minister or chief executive with powers or functions under this Act at any particular point in time, as if the greenhouse gas emissions trading scheme provided for under this Act had not been implemented.”