Hon Nick Smith, in Committee, to move the following amendments:
Clauses 4 and 5
To omit these clauses (line 13 on page 6 to line 26 on page 9) and substitute the following clauses:
4 Application of Schedules 3 and 4
(1) Section 2A is amended by repealing subsection (1) and substituting the following subsection:
(2) Section 2A(5) is amended by omitting “, unless repealed under subsection (10) before that date”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(3) Section 2A(6) is amended by omitting “, unless repealed under subsection (11) before that date”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(6) Section 2A(10) to (13), and (15) to (19), are repealed.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—
“(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—
“(3) Before recommending that an Order in Council be made under section 2A(8) or (9), the Minister must have regard to—
“(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
“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—
“(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.”
Clause 6
Subclause (2): to omit this subclause (line 30 on page 9 to line 4 on page 10) and substitute the following subclauses:
To insert the following subclause after subclause (8) (after line 25 on page 10):
Subclause (11): to omit this subclause (lines 5 to 8 on page 11) and substitute the following subclause:
Subclause (12): new section 4(5)(b): to omit this paragraph (lines 19 to 22 on page 11) and substitute the following paragraph:
New clause 7A
To insert the following clause after clause 7 (after line 28 on page 11):
7A New section 14 inserted
The following section is inserted after section 13:
“14 Registrar must give effect to directions
The Registrar must give effect to any direction relating to the transfer of units from a Crown holding account (or in the case of reimbursement, from a surrender account) to the holding account of an eligible person or a participant (or, if required, in the prescribed circumstances to another holding account notified by one of those persons) that is given by a Minister or chief executive authorised to give such direction in accordance with a provision in Part 4 or 5 of this Act.”
Clause 8: new section 17A
Subsection (1): to omit “under the State Sector Act 1988 or Crown Entities Act 2004”
(lines 33 and 34 on page 11) and substitute “in the State services”
.
To add the following subsection (after line 20 on page 12):
New clause 9A
To insert the following clause after clause 9 (after line 26 on page 12):
9A Effect of surrender, retirement, cancellation, and conversion
Section 18CA is amended by repealing subsections (3) and (4) and substituting the following subsections:
Clause 10
To omit this clause (lines 27 to 33 on page 12) and substitute the following clauses:
10 Trusts, representatives, and assignees of bankrupts
Section 18E is amended by repealing subsection (1) and substituting the following subsections:
“(1) Notice of a trust, whether express, implied, or constructive, may not be entered on the unit register except in accordance with subsection (1A).
10A Registration procedure for Kyoto units
(1) Section 21(1) is amended by omitting “the Minister of Finance”
and substituting “a Minister or chief executive authorised to give the direction under a provision of this Act”
.
(2) Section 21(1)(a) is amended by omitting “an unique”
and substituting “a unique”
.
(3) Section 21(1)(c)(ii)(A) is amended by omitting “Minister of Finance”
and substituting “Minister or chief executive who gave the direction”
.
(4) Section 21(2)(c)(i) is amended by omitting “Minister of Finance”
and substituting “Minister or chief executive who gave the direction”
.
(5) Section 21(3)(d)(i) is amended by omitting “Minister of Finance”
and substituting “Minister or chief executive who gave the direction”
.
10B Registration procedure for New Zealand units and approved overseas units
(1) Section 21AA(1) is amended by omitting “the Minister of Finance”
and substituting “a Minister or chief executive authorised to give the direction under a provision of this Act”
.
(2) Section 21AA(1)(c)(ii)(A) is amended by omitting “Minister of Finance”
and substituting “Minister or chief executive who gave the direction”
.
(3) Section 21AA(2)(c)(i) is amended by omitting “Minister of Finance”
and substituting “Minister or chief executive who gave the direction”
.
(4) Section 21AA(3)(d)(i) is amended by omitting “Minister of Finance”
and substituting “Minister or chief executive who gave the direction”
.
10C Electronic registration
Section 21A is amended by omitting “by the Minister of Finance”
and substituting “to the Registrar by a Minister or chief executive under a provision of this Act”
.
10D Priority of registration
Section 24(1) is amended by omitting “by the Minister of Finance”
and substituting “to the Registrar by a Minister or chief executive under a provision of this Act”
.
10E Correction of unit register
Section 25(1) is amended by repealing paragraph (a) and substituting the following paragraph:
Clause 13
Subclause (1): to omit “is”
(line 25 on page 13) and substitute “are”
.
Subclause (1): to omit “and 213”
(line 27 on page 13) and substitute “or 213”
.
To insert the following subclause after subclause (1) (after line 27 on page 13):
Clause 14
To omit this clause (lines 31 to 34 on page 13) and substitute the following clause:
14 Associated persons
(1) Section 55(3)(b) is amended by repealing subparagraph (ii) and substituting the following subparagraph:
(2) Section 55(3)(b)(iii) is amended by omitting “a member”
in the first place where it appears and substituting “member”
.
Clause 18
To omit this clause (lines 24 to 26 on page 14) and substitute the following clause:
18 Exemptions in respect of activities listed in Schedule 3
(1) Section 60(1)(a) is amended by omitting “an”
and substituting “the”
.
(2) Section 60(1)(b) is amended by omitting “an”
and substituting “the”
.
(3) Section 60(1)(c) is amended by omitting “an”
and substituting “the”
.
(4) Section 60 is amended by inserting the following subsection after subsection (1):
“(1A) An Order in Council made under subsection (1) may specify any terms and conditions (including, but not limited to, terms and conditions imposing geographical or operational restrictions) that the Governor-General thinks fit.
(5) Section 60(2)(b) is amended by omitting “of not”
and substituting “of”
.
Clause 19: new section 61
Heading to new section 61: to omit “accounts”
(line 29 on page 14) and substitute “account”
.
Subsection (1): to omit “under subpart 2 of Part 4”
(line 30 on page 14).
Subsection (1)(a): to omit this paragraph (lines 32 and 33 on page 14) and substitute the following paragraph:
Subsection (1)(b): to omit “becomes”
(line 2 on page 15) and substitute “is”
.
Subsection (3)(b): to omit this paragraph (lines 15 to 17 on page 15) and substitute the following paragraph:
New clause 19A
To insert the following clause after clause 19 (after line 17 on page 15):
19A Monitoring of emissions and removals
Section 62 is amended by repealing paragraph (d) and substituting the following paragraph:
Clauses 20 and 21
To omit these clauses (lines 18 to 29 on page 15) and substitute the following clauses:
20 Entitlement to receive New Zealand units for removal activities
Section 64 is amended by repealing subsections (2) to (5) and substituting the following subsections:
“(2) If a participant submits an emissions return to the chief executive that contains an assessment of the participant's entitlement to receive New Zealand units, then the chief executive must, within 20 working days of receiving the emissions return, direct the Registrar to transfer the number of New Zealand units contained in the assessment to the participant’s holding account.
“(3) Subsection (2) does not apply if, within 20 working days of the chief executive receiving the emissions return, the chief executive or an enforcement officer serves notice on the participant under section 94 requiring the participant to provide information in respect of any matter contained in the emissions return.
21 Annual emissions returns
(1) Section 65(1) is amended by omitting “Between 1 January and 31 March”
and substituting “In the period beginning on 1 January and ending on 31 March”
.
(2) Section 65(4) is amended by omitting “30 April”
and substituting “31 May”
.
Clause 22
Heading to new subpart 2: to omit “Issuance and allocation of”
(line 1 on page 16) and substitute “Issuing and allocating”
.
Clause 22: new section 68
To omit this section (line 3 on page 16 to line 10 on page 17).
Clause 22: new section 69
Heading to new section 69: to omit “Issuance”
(line 11 on page 17) and substitute “Issuing”
.
Subsection (2)(a): to omit “with”
(line 15 on page 17).
Subsection (2)(c): to omit “the issuance of New Zealand units into a Crown holding account after 1 January 2013”
(lines 30 to 31 on page 17) and substitute “issuing New Zealand units into a Crown holding account on or after 1 January 2013,”
.
Subsection (2)(c)(i): to omit “prior to”
(line 37 on page 17) and substitute “before”
.
Subsection (4)(b): to omit “determination”
(line 12 on page 18) and substitute “direction”
.
Subsection (5): to omit “The copies”
(line 17 on page 18) and substitute “Each copy”
.
Subsection (5): to omit “subsection (2)(b) and (c)”
(lines 19 and 20 on page 18) and substitute “subsection (2)(b) and, if relevant, subsection (2)(c)”
.
Clause 22: new section 70
To omit this section (line 21 on page 18 to line 14 on page 19) and substitute the following section:
“70 Notification of intention regarding New Zealand units
“(1) The Minister must give notice in the Gazette of the Crown's intentions to issue and allocate or sell New Zealand units at least 9 months before the end of each of the following periods:
“(2) The notice must include—
“(3) The Minister must present a copy of the report under section 160(7)(b) to the House of Representatives before notice may be given under this section.
“(4) The Minister must ensure that a copy of any notice given under subsection (1) is accessible via the Internet site of the department of the chief executive responsible for the administration of this Act.
“(5) The Crown is not bound by any notice given under subsection (1) to make any decisions in relation to the issuing, sale, or allocation of New Zealand units.
Clause 22: new section 71(4)
To omit “or amended allocation plan”
(line 32 on page 19).
Clause 22: new section 72(1)
To omit “revoke that allocation plan and replace it with an amended”
(lines 4 and 5 on page 20) and substitute “amend any”
.
Clause 22: new section 73
Subsection (2)(a)(ii): to omit “covered”
(line 21 on page 20) and substitute “specified”
.
Subsection (2)(b): to omit “free of charge, being”
(lines 23 and 24 on page 20) and substitute “of”
.
Subsection (2)(b)(ii)(B): to omit this subsubparagraph (lines 4 to 8 on page 21) and substitute the following subsubparagraph:
“(B) before 1 November 2002 if, since that date, ownership (including, if specified in the allocation plan, the beneficial ownership) of any body corporate owning the land or, if specified in the allocation plan, the beneficial ownership of the land owned by a body corporate, has changed in the manner and to the extent specified in the allocation plan:
Subsection (3)(a)(i): to omit “on or before”
(lines 17 and 18 on page 21) and substitute “by”
.
Subsection (3)(b)(i): to omit “on or before”
(lines 24 and 25 on page 21) and substitute “by”
.
Subsection (3)(c)(i): to omit “on or before”
(lines 31 and 32 on page 21) and substitute “by”
.
Subsection (4): to omit this subsection (lines 35 to 38 on page 21 and lines 1 to 21 on page 22) and substitute the following subsection:
Subsection (6)(a)(i): to insert after “unless the”
(line 29 on page 22) “pre-1990 forest land”
.
Subsection (6)(b): to omit this paragraph (lines 35 to 37 on page 22) and substitute the following paragraph:
Clause 22: new section 74
Subsection (1): to omit “prior to making a determination in respect of eligible land covered by”
(lines 3 and 4 on page 23) and substitute “before making a determination in respect of the eligible land specified in”
.
Subsection (2): to omit “prior to”
(line 18 on page 23) and substitute “before”
.
Subsection (2): to omit “under an allocation plan providing for the matters in section 73”
(lines 20 and 21 on page 23) and substitute “under the pre-1990 forest land allocation plan”
.
Subsection (2): to omit “covered by”
(line 23 on page 23) and substitute “specified in”
.
Clause 22: new section 75
Subsection (2)(c): to omit this paragraph (lines 1 to 29 on page 24) and substitute the following paragraph:
Subsection (2)(d)(i): to insert after “New Zealand units”
(line 34 on page 24) “under the allocation plan”
.
Subsection (2)(d)(ii): to omit this subparagraph (lines 35 to 38 on page 24) and substitute the following subparagraph:
Subsection (2)(e)(i): to omit “kind”
and substitute “kinds”
(line 3 on page 25).
Subsection (2)(f): to omit this paragraph (lines 9 and 10 on page 25) and substitute the following paragraph:
Clause 22: new section 77(5)
Subsection (5): to insert after “draft”
(line 12 on page 26) “fishing”
.
Subsection (5): to omit “responsible for the administration of this Act”
(lines 13 and 14 on page 26).
Clause 22: new sections 78 to 80
To omit these sections (line 17 on page 26 to line 2 on page 32) and substitute the following sections:
“78 Determinations made in accordance with allocation plan
“(1) As soon as practicable after an allocation plan comes into force, the Minister must give public notice inviting any person who may be eligible for an allocation of New Zealand units under the allocation plan to apply for an allocation.
“(2) The notice under subsection (1) must specify—
“(b) the final date by which applications for an allocation of New Zealand units under the allocation plan must be received by the Minister (which must, in the case of a pre-1990 forest land allocation plan, be no earlier than 40 working days after the date on which the notice is given and, in the case of a fishing allocation plan, be no earlier than 20 working days after the date on which the notice is given); and
“(c) the data and other information, or the kind of data and other information, that must accompany the application in order for the person’s application to be considered (which must be the data and other information specified in the allocation plan); and
“(3) To avoid doubt, data and information supplied under subsection (2) are subject to the Official Information Act 1982.
“(4) Despite anything in this subpart or in any allocation plan,—
“(5) The Minister must, in relation to each application received by the date specified in the notice given under subsection (1), make a preliminary determination in accordance with the allocation plan as to—
“(6) After making a preliminary determination, the Minister must notify the applicant of the following:
“(a) whether, in the Minister's opinion, the person is an eligible person under the allocation plan, and—
“(b) that, if the applicant believes there are any errors or miscalculations in the Minister’s preliminary determination of eligibility or entitlement, the person may provide further information to the Minister supporting a different determination; and
“(c) the final date by which any further information must be received by the Minister (which must, in the case of a pre-1990 forest land allocation plan, be no earlier than 20 working days after the date on which the notice is given, and in the case of a fishing allocation plan, be no earlier than 10 working days after the date on which the notice is given).
“(7) Following the expiry of the date referred to in subsection (6)(c), the Minister must, taking into account any information received by the due date in response to the notice, make a final determination of the matters specified in subsection (5).
“(8) As soon as practicable after making a final determination under subsection (7), the Minister must—
“(9) For the purposes of making a preliminary determination under subsection (5) or a final determination under subsection (7) in respect of a fishing allocation plan, the Minister may access, and rely on, the information set out in the quota register kept under Part 8 of the Fisheries Act 1996.
“(10) To avoid doubt, and without limiting the powers conferred under section 94 to 106, the chief executive or any other person with powers under sections 94 to 106 may exercise those powers for the purposes of ascertaining whether a person who applies for an allocation of New Zealand units or is allocated New Zealand units under an allocation plan is complying with, or has complied with,—
“79 Power to revoke and replace determinations
“(1) Despite anything in section 78(7) or (8), the Minister may (but is not required to) reconsider, revoke, and replace a determination made under section 78(7) with a new determination if—
“(b) in the Minister's opinion, the determination has resulted, or would otherwise result, in a person receiving an incorrect allocation because—
“(ii) a person has provided altered, false, incomplete, or misleading information in response to a notice given under section 78(1) or (6) or 86DB.
“(2) Before revoking and replacing a determination that would affect the number of units allocated to a person, the Minister must—
“(c) follow the procedure in section 78(6) to (8), which apply, with any necessary modifications, to the new determination.
“(3) The Minister may not revoke or replace a determination under this section after the expiry of 4 years from the date of notification of the Minister’s first determination under section 78(7) if the new determination would decrease the number of units allocated to a person.
“(4) Despite subsection (3), if the Minister is satisfied that an application for an allocation under an allocation plan, or any other document submitted in respect of the application, was submitted with the intention to deceive, then the Minister may revoke and replace any determination that resulted from the application at any time so as to decrease the number of units allocated to the applicant (including decreasing that number to zero).
“(5) Subsections (6) and (7) apply if—
“(6) In reconsidering the determination of Te Ohu Kai Moana Trustee Limited's entitlement, the Minister must treat an iwi or a mandated iwi organisation which has received unallocated quota from Te Ohu Kai Moana Trustee Limited as if it owned that quota on 24 September 2009.
“(7) If the Minister decides that the determination of Te Ohu Kai Moana Trustee Limited’s entitlement to New Zealand units should be revoked, the Minister must make a new determination of —
“(8) In subsections (5) to (7) and section 80(4),—
“iwi has the same meaning as in section 5 of the Maori Fisheries Act 2004
“mandated iwi organisation has the same meaning as in section 5 of the Maori Fisheries Act 2004
“unallocated quota means quota held by Te Ohu Kai Moana Trustee Limited on 24 September 2009 and that had not been allocated under section 130(1), 135, or 151 of the Maori Fisheries Act 2004 at that date.
“80 Effect of new determination
“(1) If the Minister makes a new determination in accordance with section 79, then—
“(2) Subject to subsection (3), a new determination does not change or otherwise affect any transfer of New Zealand units made to a person in accordance with a revoked determination before the date the new determination came into effect.
“(3) If New Zealand units have been transferred to a person under an earlier determination and the person would not be entitled under the new determination to those New Zealand units (including where the result of the new determination is that the person would not be entitled to any New Zealand units under the allocation plan), then—
“(b) the person must, within 60 working days after the date of the notice, repay those units by transferring the specified number of units to a Crown holding account in accordance with the notice, and sections 134 and 135 apply, with any necessary modifications, as if—
“(4) This section applies to any new determination made in accordance with section 79(7) as if—
Clause 22: new section 81
Subsection (1): to omit “a specified year”
(line 7 on page 32) and substitute “a year”
.
Subsection (1): to omit “the specified year”
(lines 8 and 9 on page 32) and substitute “a year”
.
Subsection (2): to omit “section 161B(7)”
and substitute “sections 86DB and 161D(7)”
.
Clause 22: new sections 82 to 85
To omit these sections (line 11 on page 32 to line 4 on page 37) and substitute the following sections:
“82 Entitlement to provisional allocation for eligible industrial activities
Subject to section 83, an eligible person is entitled to a provisional allocation of New Zealand units for an eligible industrial activity in respect of a year calculated in accordance with the following formula:
PA = LA × ∑(PDCT × AB)
where—
- PA
- is the person’s provisional allocation entitlement for the eligible industrial activity for the year
- LA
- is the level of assistance for the eligible industrial activity for the year, being,—
- ∑
- is the symbol for summation (of each PDCT × AB calculation)
- PDCT
- is the amount of each prescribed product from the eligible industrial activity produced by the person in the year immediately preceding the year to which the provisional allocation relates, as determined, if relevant, in accordance with regulations made under this Act
- AB
- is the prescribed allocative baseline for the applicable product that is required to be used by the eligible person by regulations made under this Act.
“83 Entitlement to allocation for eligible industrial activities where provisional allocation not received
“(1) An eligible person who carries out an eligible industrial activity at any time in a year, but did not carry out that activity during the immediately preceding year (a new entrant) is not entitled to a provisional allocation calculated under section 82, but is entitled to an allocation under subsection (2).
“(2) A new entrant or other eligible person who did not receive a provisional allocation of New Zealand units for an eligible industrial activity in respect of a year is entitled to an allocation of New Zealand units for the eligible industrial activity for the year calculated in accordance with the formula in section 84(2).
“84 Annual allocation adjustment
“(1) A person who has received a provisional allocation of New Zealand units for an eligible industrial activity in respect of a year must, subject to section 85, calculate the person’s annual allocation adjustment for the activity for the year by—
“(2) The formula for the calculation of a person’s final allocation entitlement is as follows:
FA = LA × ∑(PDCT × AB)
where—
- FA
- is the person’s final allocation entitlement for the eligible industrial activity for the year
- LA
- is the level of assistance for the activity for the year, being,—
- ∑
- is the symbol for summation (of each PDCT × AB calculation)
- PDCT
- is the amount of each prescribed product from the eligible industrial activity produced by the person in the year, as determined, if relevant, in accordance with regulations made under this Act
- AB
- is the prescribed allocative baseline for the applicable product that is required to be used by the eligible person by regulations made under this Act.
“(3) The formula for the calculation of a person’s annual allocation adjustment is as follows:
AA = PA – FA
where—
- AA
- is the person’s annual allocation adjustment of units for the eligible industrial activity for the year
- PA
- is the person's provisional allocation for the eligible industrial activity notified by the chief executive under section 86C
- FA
- is the person's final allocation entitlement for the eligible industrial activity for the year calculated under subsection (2).
“(4) If the figure for AA calculated under the formula in subsection (3)—
“(5) If an eligible person is entitled to be allocated the number of units in an annual allocation adjustment and the person—
“(a) makes an application for a provisional allocation for the same eligible industrial activity in the year following the year to which the annual allocation adjustment relates, then the person must record the adjustment in the person's application for a provisional allocation for the following year:
“(b) does not make an application for a provisional allocation for the same eligible industrial activity in the year following the year to which the annual allocation adjustment relates, the person may make a separate application under section 86A for an allocation of the number of units in the annual allocation adjustment.
“(6) If an eligible person is liable to repay the number of units in an annual allocation adjustment and the person—
“(7) If a person is required to repay units under this section, then—
“85 Closing allocation adjustment
“(1) An eligible person who has received a provisional allocation for an eligible industrial activity in respect of a year and who ceases during the year to carry out that activity must, within 20 working days of ceasing to carry out the activity,—
“(b) using the formula in section 84(3), calculate the person’s closing allocation adjustment, and, for this purpose, section 84(3) applies, with any necessary modifications, as if the closing allocation adjustment were an annual allocation adjustment; and
“(2) For the purposes of subsection (1), a person who has received a provisional allocation for an eligible industrial activity in respect of a year and who temporarily does not carry out the activity—
“(b) must, if the person does not carry out the activity for a period of 3 months in the year, notify the chief executive as soon as practicable after the expiry of that 3-month period of that fact; and
“(c) must, if given notice by the chief executive (following receipt of the person’s notice under paragraph (b)) that the chief executive is satisfied that the person has ceased to carry out the activity for the year and that the person is required to comply with subsection (1), within 20 working days of the date of the chief executive’s notice, comply with subsection (1).
“(3) Subject to subsection (4), an eligible person who has complied with subsection (1) during the year in which the person ceased to carry out the eligible industrial activity—
“(4) A person who has applied for or notified a closing allocation adjustment in accordance with subsection (1) during a year, but who then recommences carrying out the activity in the year,—
“(5) Section 84(7) applies to the repayment of units under this section as if the units were required to be repaid under section 84.
Clause 22: new section 85A
To omit this section (line 5 on page 37 to line 37 on page 38).
Clause 22: new sections 86 to 86D
To omit these sections (line 8 on page 38 to line 3 on page 45) and substitute the following sections:
“86 Allocation of New Zealand units in relation to agriculture
“(1) A person is eligible for an allocation of New Zealand units for an eligible agricultural activity in respect of a year if the person carries out the activity at any time in the year.
“(2) An eligible person is entitled to an allocation for the eligible agricultural activity in respect of the year calculated in accordance with the following formula:
A = LA × ∑(PDCT × AB)
where—
- A
- is the person's allocation entitlement for the eligible agricultural activity for the year
- LA
- is the level of assistance for the eligible agricultural activity for the year, being—
- ∑
- is the symbol for summation (of each PDCT × AB calculation)
- PDCT
- is the total amount of each product from the eligible agricultural activity produced by the person in the year. as determined, if relevant, in accordance with regulations made under this Act
- AB
- is the prescribed allocative baseline for the applicable product.
“(3) Despite section 86A(1)(c), a person who ceases to carry out an eligible agricultural activity in a year may, within 20 working days of ceasing to carry out the activity, apply under section 86A for an allocation for that year calculated in accordance with the formula in subsection (2).
“(5) Subject to subsection (6), an eligible person who has applied for an allocation for a year (the closing year) in accordance with subsection (3) may not apply under section 86A for a further allocation in respect of the closing year.
“(6) An eligible person who has applied in accordance with subsection (3) for an allocation in respect of a closing year, but who then recommences carrying out the activity in the closing year may apply under section 86A for an allocation in respect of the part of the year after the date the person recommenced carrying out the activity (and which was not covered by the application made in accordance with subsection (3)) and, for that purpose, subsection (2) applies as if the year were the part of the year from the date the person recommenced carrying out the activity.
“86A Applications for allocation of New Zealand units for industry and agriculture
“(1) An eligible person who wishes to be allocated New Zealand units for an eligible industrial activity or eligible agricultural activity under this subpart must, unless this subpart otherwise provides, apply to the chief executive for an allocation—
“(2) An application under subsection (1) must—
“86B Provisional allocation to industry in and after 2013
Despite section 86A(1)(a), if an eligible industrial activity is prescribed under section 161A(1)(a) in the year 1 January 2013 to 31 December 2013 or in any subsequent year (the prescribing year), an eligible person who carried out the activity in the year preceding the prescribing year may apply for a provisional allocation for the eligible industrial activity in respect of the prescribing year in the period—
“86C Decisions on applications for allocations of New Zealand units to industry and agriculture
“(1) On receipt of an application under section 86A, the chief executive must decide—
“(b) if in the chief executive’s opinion the applicant is eligible for an allocation in respect of the application, the number of units the applicant is entitled to be allocated in respect of the application that, if the application relates to a provisional allocation for an eligible industrial activity, must—
“(2) If the chief executive decides under subsection (1) that an applicant is entitled to receive an allocation in respect of the application, then the chief executive must—
“(b) direct the Registrar to transfer to the holding account notified in the person’s application the number of units notified under paragraph (a) (as adjusted, in the case of an eligible industrial activity, under subsection (1)).
“(3) If the chief executive decides under subsection (1) that an applicant is not eligible to receive an allocation in respect of the application, or that the allocation to which the person is entitled in respect of the application is the same as or less than the number of units that the person is liable to repay in respect of an annual allocation adjustment recorded in the application in accordance with section 84(6)(a), then the chief executive must notify the applicant of—
“(4) If a person has failed to notify the chief executive of an annual allocation adjustment or a closing allocation adjustment when required by section 84(6)(b) or 85(1)(c)(ii), or if the chief executive is satisfied that an annual allocation adjustment or closing allocation adjustment notified by a person to the chief executive under section 84(6)(b) or 85(1)(c)(ii) is incorrect, then the chief executive may make a decision as to the person’s annual allocation adjustment, or closing allocation adjustment or correct annual allocation adjustment or closing allocation adjustment.
“(5) The chief executive must, as soon as practicable, after deciding an eligible person’s final allocation for an eligible activity in respect of a year,—
“(6) For the purposes of subsection (5),—
“(a) the final allocation of a person who received a provisional allocation for an eligible industrial activity is the person’s provisional allocation for the activity in respect of the year adjusted by the annual allocation adjustment for the activity for the year (or closing allocation adjustment, as the case may be); and
“(b) the chief executive is not required to publish the final allocation of an eligible person for an eligible activity in respect of a year, or ensure it is accessible via the Internet, if the chief executive considers that publishing that information would be likely to prejudice unreasonably the commercial position of the eligible person who received the allocation.
“86D Reconsideration of allocation decisions
“(1) Without limiting section 144, the chief executive may reconsider, vary or revoke any decision made under section 86C if in the chief executive’s opinion the decision has resulted, or would otherwise result, in a person receiving an incorrect allocation because—
“(b) the person has provided altered, false, incomplete, or misleading information in or with an application.
“(2) The chief executive may not make a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86C(4) or vary or revoke a decision under subsection (1) after the expiration of 4 years from the end of the year or other period to which the decision relates if the decision, or variation or revocation of the decision, would decrease the number of units allocated to a person.
“(3) However, if the chief executive is satisfied that a notice under section 84(6)(b) or 85(1)(c)(ii) or application for an allocation, or any other document submitted under section 86A, 86DB, or 144, was submitted with intent to deceive, the chief executive may make a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86C(4) or vary or revoke a decision under subsection (1) at any time so as to decrease the number of units allocated to the person to whom the notice or application related (including decreasing that number to zero).
“(4) If the chief executive makes a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86C(4) or varies or revokes a decision under subsection (1), the chief executive must, as soon as practicable after doing so, notify the person who gave, or should have given, the notice under section 84(6)(b) or 85(1)(c)(ii) or the applicant, as the case may be, of—
“(5) If the result of a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86C(4), variation or revocation of an allocation decision under subsection (1), or review under section 144 is that a person allocated units is found to have been allocated and transferred—
“(a) units to which the person was not entitled, or to have repaid too few units, the person must within 90 working days after the date of the notice under subsection (4) repay the number of units notified to the person by transferring the units to a Crown holding account designated by the chief executive; or
“(b) fewer units than the person was entitled to, or to have repaid too many units, the chief executive must, as soon as practicable after the date of the notice under subsection (4), direct the Registrar to transfer to the holding account notified in the person’s application (or any other holding account notified by the person) the number of New Zealand units recorded in the notice.
“(6) Section 84(7) applies to repayment of units under subsection (5) as if it were repayment under section 84.
“86DA Retention of records and materials in relation to allocation
“(1) A person who has been allocated New Zealand units for an eligible activity must keep sufficient records to enable the chief executive to verify, for any year in respect of which the person received an allocation,—
“(c) the total amount of each product produced by the person from the eligible activity in the year, as determined, if relevant, in accordance with regulations made under this Act; and
“(2) The records specified in subsection (1)—
“86DB Minister or chief executive may require further information for purpose of carrying out functions under subpart
“(1) For the purposes of making a determination under section 78 or 79 or a decision under section 86C, the Minister or chief executive, as appropriate, may give to any of the following persons a notice requiring the person to supply information or further information to the Minister or chief executive:
“(2) A notice under subsection (1) must be given before the determination or decision is made.
“(3) A notice under subsection (1) may require the information to be provided that is necessary to determine whether a person is or was—
“(4) The Minister or chief executive may, as appropriate, for the purpose of verifying whether a determination made under section 78 or 79 or a decision made under section 86C was correct or whether it should be reconsidered, give a notice to a person who has been allocated New Zealand units under one of those sections, requiring the person to supply to the Minister or chief executive any records, data, or other information that the person is required to keep in relation to the allocation.
“(5) A person who has received a notice under this section must supply the information requested within the period specified in the notice.
“(6) A person who fails to comply with a notice under this section within the period specified in the notice, or any further period agreed with the Minister or the chief executive as appropriate, and who—
New clause 22A
To insert the following clause after clause 22 (after line 16 on page 46):
22A Functions of chief executive
(1) Section 87(1) is amended by inserting the following paragraph after paragraph (b):
(2) Section 87(1) is amended by repealing paragraph (d) and substituting the following paragraph:
Clause 23
To insert the following subsections after subsection (1) (after line 19 on page 46):
Clause 23(2): new section 89(4)
To omit “report”
(line 21 on page 46) and substitute “publish”
.
New clause 23A
To insert the following clause after clause 23 (after line 23 on page 46):
23A Power of entry for investigation
Section 100(1) is amended by omitting “and Part 5”
and substituting “or Part 5”
.
Clause 24: new section 108(1)(b)
To omit “contains”
(line 1 on page 47) and substitute “raises”
.
Clause 25
To omit this clause (lines 4 to 10 on page 47) and substitute the following clause:
25 Submission of final emissions returns
(1) Section 118(3) is amended by repealing paragraph (a) and substituting the following paragraph:
(2) Section 118(4) is amended by repealing paragraph (a) and substituting the following paragraph:
(3) Section 118 is amended by adding the following subsections:
New clauses 26A and 26B
To insert the following clauses after clause 26 (after line 13 on page 47):
26A Effect of amendment or assessment
Section 123 is amended by omitting subsection (5) and substituting the following subsection:
“(5) If the amendment or assessment results in an entitlement for a participant to receive New Zealand units for the participant's removal activities, the chief executive must direct the Registrar to transfer the number of New Zealand units to which the participant is entitled to the participant's holding account.
26B Reimbursement of units by chief executive
Section 124 is repealed and the following section substituted:
“124 Reimbursement of units by chief executive
“(1) If the chief executive is required to arrange for the reimbursement of units to a person under section 123(4), 126(2), 138(2), or 189(7), the chief executive must direct the Registrar to transfer units to the person in accordance with subsection (2).
“(2) If the reimbursement is of—
“(3) The chief executive must take into account the views of the person to whom units will be reimbursed about the type of units to be reimbursed when determining what units to reimburse.”
Clauses 28 to 37
To omit these clauses (line 17 on page 47 to line 27 on page 53) and substitute the following clauses:
28 Strict liability offences
(1) Section 129(1)(b) is amended by repealing subparagraph (iii) and substituting the following subparagraphs:
“(iia) fails to comply with the requirements relating to the calculation of, application for, or notification of an annual allocation adjustment or closing allocation adjustment under section 84 or 85, including where required to comply with section 85(1)(a) to (c) by the chief executive under section 85(2)(c); or
(2) Section 129(1)(b) is amended by repealing subparagraph (v) and substituting the following subparagraph:
29 Other offences
(1) Section 132(1) is amended by repealing paragraph (e) and substituting the following paragraphs:
“(da) knowingly fails to comply with the requirements relating to the calculation of, application for, or notification of an annual allocation adjustment or a closing allocation adjustment under section 84 or 85, including when required to comply with section 85(1)(a) to (c) by the chief executive under section 85(2)(c); or
(2) Section 132(1)(f) is amended by inserting “the Minister or”
after “emissions returns) to”
.
30 Evasion or similar offences
(1) Section 133(1) is amended by repealing paragraph (c) and substituting the following paragraphs:
(2) Section 133(1)(e) is amended by inserting “the Minister or”
after “emissions returns) to”
.
30A New section 136 substituted
Sections 136 is repealed and the following section substituted:
“136 Additional penalty for knowing failure to comply
“(1) This section applies to a person who—
“(2) If this section applies, the person is liable, in addition to any penalty imposed in respect of the offence, to—
“(3) If this section applies, the chief executive must give a notice to the person that—
“(c) advises that, unless both the units are transferred to the designated Crown holding account or surrendered (as the case may require) and the penalty paid in full by the due date, interest on the amount of the penalty will accrue in accordance with section 137.
“(4) To avoid doubt, any liability to transfer units to a Crown holding account or surrender units and pay a penalty under subsection (2) is additional to, and does not affect, the liability of a person to surrender or repay units under any other section of this Act or to pay a penalty under a penalty notice given by the chief executive under section 134.
“(5) The amount of the excess emissions penalty, together with any interest that accrues on that penalty, constitutes a debt due to the Crown and is recoverable by the chief executive in a court of competent jurisdiction.
30B Interest for late payment
(1) Section 137 is amended by repealing subsection (1) and substituting the following subsection:
(2) Section 137(2) is amended by repealing paragraph (b) and substituting the following paragraph:
“(b) for the period from the date by which the penalty was due to be paid until the associated liability to surrender or repay units or to transfer units to a Crown holding account under section 136 (or to pay any associated debt under section 159) has been met, and until the penalty and any interest due have been paid in full.
(3) Section 137 is amended by repealing subsection (3) and substituting the following subsection:
“(3) To avoid doubt, interest accrues under subsection (2) even if the amount of the excess emissions penalty in a penalty notice has been paid in full if the associated requirement to surrender or repay units or to transfer units to a Crown holding account under section 136 (or to pay any associated debt under section 159) has not been met in full.
(4) Section 137(4) is amended by repealing paragaraph (a) and substituting the following subsection:
30C Obligation to pay penalty not suspended by appeal
(1) Section 138 is amended by repealing subsection (1) and substituting the following subsection:
“(1) The obligation to pay and the right to receive and recover any excess emissions penalty or interest imposed under section 134, 136, or 137, and the obligation to transfer to a Crown holding account or surrender any additional units under section 136, are not suspended by any review or appeal.
(2) Section 138 is amended by repealing subsection (2) and substituting the following subsection:
“(2) If the applicant or appellant is successful in the review or appeal, the amount of any excess emissions penalty or interest paid by the applicant must be refunded to the applicant or appellant by the chief executive, and any units not required to be transferred to a Crown holding account or surrendered must be reimbursed in accordance with the procedure specified in section 124.
31 Formation of consolidated group
(1) Section 150(6)(a) is amended by inserting “consolidated”
after “formation of the”
.
(2) Section 150(6)(a) is amended by omitting “the following”
and substituting “that”
.
(3) Section 150(6)(b) is amended by inserting “consolidated”
after “formation of the”
.
(4) Section 150(6)(b) is amended by omitting “year following the next year”
and substituting “following year”
.
(5) Section 150 is amended by inserting the following subsections after subsection (6):
“(6A) Despite subsection (1), 2 or more members of a group may, if they elect to form a consolidated group in respect of an activity, give notice to the chief executive under subsection (3)—
“(6B) Despite sections 56(1), 57(3), and 61, an entity that gives notice to the chief executive in accordance with subsection (6A) is not required to have its own holding account under section 61 to comply with its obligations as a participant in respect of an activity specified in the notice given under subsection (3) and is not required to open a holding account when giving notice under section 56 or making an application under section 57 in respect of an activity, if—
32 Changes to consolidated groups
(1) Section 151 is amended by repealing subsection (4) and substituting the following subsection:
“(4) Subject to subsection (6), if a participant elects under subsection (1) to join a consolidated group, that participant must be treated for the purposes of this Part and Part 5 as being a member of that consolidated group on and after 1 January of the year in which the participant gives notice to the chief executive under subsection (1).
(2) Section 151 is amended by adding the following subsections:
“(6) An entity may, if the entity elects to be treated as a member of a consolidated group on and after the date the entity is registered as a participant in respect of an activity, give notice to the chief executive under subsection (1)—
“(7) Despite sections 56(1), 57(3), and 61, an entity that gives notice to the chief executive in accordance with subsection (6) is not required have its own holding account under section 61 to comply with its obligations as a participant in respect of an activity specified in the notice given under subsection (1) and is not required to apply for a holding account, when—
33 New section 151A inserted
The following section is inserted after section 151:
“151A Addition of activities to consolidated groups
“(1) A member of a consolidated group may elect to add to the activities in respect of which the member is treated as a member of the consolidated group by giving notice to the chief executive in the prescribed form.
“(2) A notice given under subsection (1) must—
“(3) The chief executive must acknowledge that the member has added the activity or activities specified in the notice under subsection (1) to the activities in respect of which the member is treated as a member of the consolidated group by giving notice to all members of the group within 1 month of the chief executive’s receipt of the notice.
“(4) If a member has elected under subsection (1) to add to the activities in respect of which the member is treated as a member of the consolidated group, the activity or activities specified in the notice are added,—
34 Effect of being member of consolidated group
(1) Section 153(6)(a)(ii) is amended by omitting “section 118 in respect of a participant”
and substituting “section 187 in respect of an entity”
.
(3) Section 153 is amended by adding the following subsection:
35 Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4
(1) Section 154(1)(a) is amended by omitting “an activity”
and substituting “1 or more of the activities”
.
(2) Section 154(1) is amended by inserting the following paragraph after paragraph (a):
(3) Section 154(2) is amended by inserting “or, if the return does not relate to a period covered by the emissions return, as if section 153(2) to (5) referred to the liability to surrender units or entitlement to be transferred units in relation to the emissions return”
after “covered by the emissions return”
.
(4) Section 154 is amended by adding the following subsection:
36 Ceasing to be member of consolidated group
(1) Section 155(2) is amended by repealing paragraph (a) and substituting the following paragraph:
(2) Section 155(2)(d) is amended by inserting “consolidated”
after “nominated entity for the”
.
(3) Section 155 is amended by adding the following subsections:
37 New section 156A inserted
The following section is inserted after section 156:
“156A Removal of activities from consolidated groups
“(1) A member of a consolidated group may elect to remove 1 or more activities from the activities in respect of which the member is treated as a member of the consolidated group by giving notice to the chief executive in the prescribed form.
“(2) The activity or activities specified in the notice under subsection (1) are removed from the activities in respect of which the member is treated as a member of the consolidated group,—
“(3) The chief executive must acknowledge that the activity or activities specified in the notice under subsection (1) are removed from the activities in respect of which the member is treated as a member of the consolidated group by giving notice to all members of the group within 1 month of the chief executive’s receipt of the notice.
“(4) If a member has removed an activity from the activities in respect of which the member is treated as a member of a consolidated group, that member continues to be jointly and severally liable with the other members of the consolidated group for any obligations under this Part or Part 5 in respect of emissions and removals related to the activity, and jointly entitled to any units transferred for the activity (if it is a removal activity), in respect of the period in which the activity was an activity in respect of which the member was treated as a member of the consolidated group.
“(5) Subsection (6) applies to a member of a consolidated group that—
“(6) A member of a consolidated group to which this subsection applies must—
“(b) supply the account number of the holding account, or ensure the account number of the holding account is supplied, to the chief executive within 10 working days of receiving the account number from the Registrar.
37A New sections 157 and 157A substituted
Section 157 is repealed and the following sections are substituted:
“157 Unincorporated bodies
“(1) This section applies if the members of an unincorporated body—
“(2) If this section applies,—
“(d) the unincorporated body must, when applying for an allocation, or notifying the chief executive under section 56, or applying to the chief executive to be registered as a participant under section 57, as the case may be, provide the chief executive with—
“(3) Each person who is or has ceased to be a member of an unincorporated body is, in respect of the period during which the person is or was a member of the unincorporated body,—
“(4) If this Act requires any thing to be done by or on behalf of an eligible person (or a person to whom units have been allocated) or a participant that is an unincorporated body,—
“(5) A notice that is addressed to an unincorporated body and given in accordance with this Act to the person nominated by the unincorporated body under subsection (2)(d)(ii) or (if relevant) notified under section 157A(2)(a) is to be treated as notice given to the unincorporated body and all members of the unincorporated body.
“(6) To avoid doubt, if this Act requires a landowner, registered leaseholder, holder of a registered forestry right, or party to a Crown conservation contract to be treated as the person carrying out an eligible activity or an activity listed in Schedule 3 or 4, and the land, registered lease, registered forestry right, or Crown conservation contract is owned, held, or has been entered into, as the case may be, jointly by 2 persons, those persons—
“(b) are, as relevant, together the eligible person in respect of the eligible activity, or the participant in respect of any activity listed in Schedule 3, or may together be registered as the participant in respect of an activity listed in Schedule 4; and
“(c) are jointly and severally liable for the obligations, or entitled to the benefits, of an eligible person (or a person to whom units have been allocated) or a participant in respect of the activity.
“157A Changes to unincorporated bodies that are participants
“(1) This section applies if—
“(2) If this section applies,—
“(3) A notice given under subsection (2) must—
“(4) For the purposes of subsection (1), the following transfers must be treated as changes in the membership of an unincorporated body and not as the transfer of an interest for the purposes of section 192(1)(a):
“(b) the transfer of a registered lease, registered forestry right, or Crown conservation contract relating to post-1989 forest land from members of an unincorporated body to members of an unincorporated body if at least 60% of the members of an unincorporated body are the same following the transfer.”
Heading to clause 38
To omit “161C”
(line 28 on page 53) and substitute “161H.”
Clause 38: new section 160
Subsection (3): to omit this subsection (lines 8 to 30 on page 54) and substitute the following subsection:
Subsection (4): to omit this subsection (lines 31 to 36 on page 54) and substitute the following subsection:
“(4) For the avoidance of doubt, if a review initiated under subsection (1) results in the matters listed in subsection (5)(j) being reviewed in a period listed in subsection (3)(a), then the Minister responsible for the administration of this Act is not obliged under subsection (3) to ensure any further review of those matters is initiated in that period.
Subsection (5)(j): to omit this paragraph (line 34 on page 55 to line 4 on page 56) and substitute the following paragraph:
Subsection (5)(n): to omit “part of the allocation process, contained in subpart 2 of Part 4 of this Act”
(lines 18 and 19 on page 56) and substitute “any part of the allocation process, contained in subpart 2”
.
Subsection (5)(o): to omit “to (l)”
(line 22 on page 56) and substitute “to (n)”
.
Subsection (6): to omit “terms”
(line 28 on page 56) and substitute “the terms”
.
Subsection (6): to omit “Minister and”
(line 29 on page 56) and substitute “Minister on”
.
Subsection (8): to omit this subsection (line 36 on page 56 to line 4 on page 57) and substitute the following subsection:
Subsection (9): to omit “The Minister responsible for the administration of this Act may initiate”
(lines 5 and 6 on page 57) and substitute “To avoid doubt, this section does not limit the ability of the Minister responsible for the administration of this Act to initiate”
.
Clause 38: new section 161
Subsection (1): to omit “the Act”
(line 13 on page 57) and substitute “this Act”
.
Subsection (1)(b): to insert after “majority of”
(line 16 on page 57) “the”
.
Subsection (3): to omit “prior to completion of the final report”
(lines 34 and 35 on page 57) and substitute “before the date on which the review is required to be completed under section 160”
.
Subsection (4)(b): to omit “within the time allowed by subsection (3)”
(line 6 on page 58) and substitute “by the date on which the review is required to be completed under section 160”
.
Subsection (5): to omit “panel”
(line 7 on page 58) and substitute “review panel”
.
Clause 38: new sections 161A to 161C
To omit these sections (line 12 on page 58 to line 2 on page 64) and substitute the following sections:
“161A Regulations in relation to eligible industrial activities
“(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for 1 or more of the following purposes:
“(2) A regulation made under subsection (1) may permit persons to apply for and receive an allocation in respect of a period beginning on—
“(3) Before recommending that a regulation be made under subsection (1)(a), the Minister must be satisfied either that the activity to be prescribed as an eligible industrial activity—
“(4) Despite anything in this section or section 161B or 161C, a regulation may not be made under subsection (1) that prescribes electricity generation as an eligible industrial activity.
“(5) The following regulations made under subsection (1) come into force on the day 5 years after the date of their notification in the Gazette or any later date that may be set by the regulations:
“161B Australian eligible industrial activities
“(1) An activity may be treated as meeting the criteria specified in section 161A(3)(a) if the activity is an Australian eligible industrial activity.
“(2) If an activity is treated as meeting the criteria specified in section 161A(3)(a) because it is an Australian eligible industrial activity, any regulations that prescribe that activity as an eligible industrial activity must prescribe—
“(a) the same activity description for the activity, including (but not limited to) the matters listed in section 161A(1)(b)(i), as the activity description for the Australian eligible industrial activity; and
“(b) the same products to be used as a basis for an allocation of New Zealand units in respect of the activity as the products that are, or are likely to be, used as a basis for the allocation of emissions units in respect of the Australian eligible industrial activity; and
“(d) for each prescribed product of the activity an allocative baseline or baselines that is or are the same as the allocative baseline or baselines that is or are, or is likely to be or are likely to be, specified as the allocative baseline or baselines of the equivalent product of the Australian eligible industrial activity.
“(3) Despite subsection (2)(d), if an Australian electricity allocation factor or Australian natural gas feedstock allocation factor was used in the calculation of an allocative baseline (or likely allocative baseline) of a product of the Australian eligible industrial activity, then the allocative baseline or baselines prescribed under section 161A(1)(c) for the equivalent product must be the allocative baseline or baselines that is or are, or is likely or are likely, to be specified as the allocative baseline or baselines of the product of the Australian eligible industrial activity adjusted by substituting an electricity allocation factor or natural gas feedstock allocation factor (as the case may be) prescribed under section 161A(1)(d).
“161C Other eligible industrial activities
“(1) For the purposes of section 161A(3)(a), an activity is—
“(2) If an activity meets the criteria in section 161A(3)(a) in accordance with subsection (1), any regulations that prescribe the activity as an eligible industrial activity and the products to be used as the basis for an allocation of New Zealand units in respect of the activity must prescribe the allocative baseline or baselines of each product, calculated in accordance with the following formula:
AB = SE/STA
where—
- AB
- is the allocative baseline of the product
- SE
- is the specified emissions from the activity
- STA
- is the specified total amount of the product from the activity.
“(3) For the purposes of this section,—
“(b) the specified emissions, in respect of the emissions intensity of an activity, is the number of whole tonnes of included emissions obtained by adding together the included emissions from the activity of persons who provided the information referred to in section 161D(1)(e)(i)(B) to the Minister in accordance with a notice under section 161D(1) that contained a description of the activity:
“(c) the specified emissions, in respect of the allocative baselines of an activity, is the number of whole tonnes of included emissions obtained by adding together the included emissions from the activity of persons who provided the information referred to in section 161D(1)(e)(i)(C) to the Minister in accordance with a notice under section 161D(1) that contained a description of the activity:
“(4) Despite subsection (3)(c), the Minister may adjust the number of whole tonnes of included emissions shown in the information referred to in section 161D(1)(e)(i)(C) provided by any persons carrying out an activity specified in a notice given under section 161D(1) after taking into account any electricity-related contract that was in force on the date of the notice that affects the electricity cost increase that any of the persons will face due to the obligation imposed by this Act on participants to surrender units, or any information relating to any such contracts.
“(5) If the Minister has adjusted the tonnes of emissions of 1 or more persons under subsection (4), the Minister may use both the information as originally submitted and as adjusted to calculate different allocative baselines for the relevant product.
“161D Power to require information for purposes of allocation to industry
“(1) The Minister may, for any of the purposes in subsection (3), by notice in the Gazette—
“(b) specify in respect of the activity each product that may be used, if the activity is prescribed in regulations as an eligible industrial activity, as the basis for an allocation of New Zealand units in respect of the activity (a specified product):
“(2) A methodology specified in a notice in accordance with subsection (1)(g) may incorporate by reference any material referred to in section 169(1), and if material is incorporated by reference, sections 169(2) and (3) and 170 and 177 apply with any necessary modifications.
“(3) The purpose for which a notice may be issued under subsection (1) is to provide the Minister with the information necessary to determine any 1 or more of the following matters:
“(4) A Gazette notice under subsection (1) is a regulation for the purposes of the Regulations (Disallowance) Act 1989, but not for the purposes of the Acts and Regulations Publication Act 1989.
“(5) Following the provision of information by any person in accordance with subsection (1)(e), the Minister may give notice to the person—
“(6) If a person who is required to comply with a notice under subsection (1) or (5) fails to provide the required information by the date specified in the notice, the Minister may give a notice to the person that requires the information to be provided within 10 working days and advises the person that a failure to provide the information within that time period will render the person ineligible for an allocation of New Zealand units in respect of the activity specified in the notice if it is prescribed as an eligible industrial activity.
“(7) Despite anything in this Act, if an activity specified in a notice made under subsection (1)(a) is subsequently prescribed as an eligible industrial activity, the following persons are not eligible to be allocated New Zealand units under subpart 2 in respect of the eligible industrial activity:
“161E Requirements in respect of notice given under section 161D
“(1) Before giving notice of an activity under section 161D(1), the Minister must have regard to the following matters:
“(b) the undesirability of activities being defined by reference to the technology employed, the fuel used, the age of the plant, or the quality of the types of feedstock used when the activity is carried out; and
“(2) For the purposes of section 161D(1)(c),—
“(c) before giving notice of the emissions that must be included in, or excluded from, any information provided in accordance with a notice issued under section 161D, the Minister must have regard to the following matters:
“(3) If an activity specified in a notice under section 161D was carried out by any person in each of the financial years 2006/07, 2007/08, and 2008/09, then the notice must specify those financial years as the financial years for which information must be provided in accordance with the notice.
“161F Consultation on activities that may be prescribed as eligible industrial activities
“(1) If an activity is treated as meeting the criteria specified in section 161A(3)(a) because it is an Australian eligible industrial activity, then before recommending the making of a regulation under section 161A prescribing the activity as an eligible industrial activity, the Minister must consult, or be satisfied that the chief executive has consulted, the persons (or representatives of those persons) that appear to the Minister or the chief executive likely to be substantially affected by any regulation made in accordance with the recommendation.
“(2) Before notifying an activity in the Gazette under section 161D, the Minister must consult, or be satisfied that the chief executive has consulted, the persons (or the representatives of the persons) that appear to the Minister or the chief executive likely to be substantially affected by the description of the activity to be notified.
“(3) The processes for consultation under subsections (1) and (2) must include—
“(4) A failure to comply with this section does not affect the validity of—
“(5) The Minister is not required to consult under subsection (2) if the Minister issues a notice under section 161D for the sole purpose of requiring persons to provide electricity-related contracts or any information related to those contracts.
“161G Regulations in relation to eligible agricultural activities
“(1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for 1 or more of the following purposes:
“(2) For the purposes of subsection (1)(a)(ii), the allocative baseline for each prescribed product of an eligible agricultural activity must be calculated using the following formula:
AB = ∑(E) / ∑(PDCT)
where—
- AB
- is the allocative baseline for the product
- E
- is the total number of tonnes of methane and nitrous oxide emissions that resulted from the eligible agricultural activity carried out to produce the product in the prescribed year or years, calculated in accordance with methodologies prescribed in regulations made under this Act
- PDCT
- is the total amount of the product produced from the eligible agricultural activity in the prescribed year or years, calculated in accordance with methodologies prescribed in regulations made under this Act
- ∑
- is the symbol for the summation of E for the year or years for which E must be calculated (as prescribed by regulations made under this Act) and of PDCT for the year or years for which PDCT must be calculated (as prescribed in regulations made under this Act)).
“(3) Before recommending the making of a regulation under subsection (1) prescribing the allocative baseline or baselines of an eligible agricultural activity, the Minister must consult, or be satisfied that the chief executive has consulted, the persons (or representatives of the persons) that appear to the Minister or the chief executive likely to be substantially affected by any regulation made in accordance with the recommendation.
“(4) The process for consultation under subsection (3) must include—
“(5) A failure to comply with subsections (3) and (4) does not affect the validity of any regulations made under subsection (1).
“(6) Despite section 4, in this section and section 161H, eligible agricultural activity—
“161H Power to request information showing output from eligible agricultural activities
“(1) The Minister may, after 1 January 2011, by notice in the Gazette,—
“(b) specify, in respect of the eligible agricultural activity specified under paragraph (a), the product or products of the eligible agricultural activity in respect of which the information must be provided under paragraph (d):
“(d) require any person carrying out the eligible agricultural activity on the date of the notice to provide to the Minister information that shows the amount of each specified product from the activity specified by the person in the year or years specified in the notice, determined (if relevant) in accordance with any prescribed methodologies:
“(2) If a person who is required to comply with a notice given under subsection (1) fails to provide the required information by the date specified in the notice, the Minister may give written notice to the person that requires the information to be provided within 10 working days advises the person that a failure to provide the information within that time period will render the person ineligible for an allocation of New Zealand units in respect of the activity.
“(3) Despite anything in this Act, if notice is given under subsection (1) requiring a person to provide information with respect to an eligible agricultural activity, the following persons are not eligible to be allocated New Zealand units under subpart 2 in respect of the eligible agricultural activity:
“(4) A Gazette notice under subsection (1) is a regulation for the purposes of the Regulations (Disallowance) Act 1989, but not for the purposes of the Acts and Regulations Publication Act 1989.”
Clause 41(2)
To omit this subclause (lines 24 to 26 on page 65) and substitute the following subclause:
Clauses 43 to 49
To omit these clauses (line 1 on page 66 to line 7 on page 83) and substitute the following clauses:
43 Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land
(1) Section 183(1)(a) and (b) and (2)(c) are amended by omitting “section 71”
and substituting in each case “section 73”
.
(2) Section 183(3)(a)(ii) is amended by omitting “, which must be no later than 1 July 2010”
.
44 Exemptions for deforestation of land with tree weeds
(1) Section 184(1) is amended by repealing paragraph (a) and substituting the following paragraph:
(2) Section 184(1) is amended by repealing paragraph (b) and substituting the following paragraph:
(3) Section 184(2)(b) is amended by omitting “priorities”
and substituting “criteria and priorities”
.
(4) Section 184(2) is amended by adding “; and”
and also by adding the following paragraph:
(5) Section 184(3) is amended by inserting “or was”
after “there is”
.
(6) Section 184(4)(d) is amended by repealing subparagraph (ii) and substituting the following subparagraph:
(7) Section 184(5) is amended by omitting “priorities in”
and substituting “criteria, and priorities in, and the number of whole tonnes of emissions that are to be covered by exemptions granted in respect of,”
.
(8) Section 184(5)(b) is amended by omitting “the land”
and substituting “any land”
.
(9) Section 184 is amended by repealing subsection (6) and substituting the following subsection:
(10) Section 184 is amended by repealing subsection (9) and substituting the following subsection:
45 Conditions on registration as participant in respect of certain activities relating to post-1989 forest land
(1) Section 187(3) is amended by omitting “and subject to sections 191 and 193,”
.
(2) Section 187 is amended by adding the following subsection:
46 Registration as participant in respect of post-1989 forest land
(1) Section 188(1) is amended by repealing paragraph (c) and substituting the following paragraph:
(2) Section 188 is amended by repealing subsection (2) and substituting the following subsection:
(3) Section 188(3)(a)(i) is amended by inserting “or areas”
after “area”
.
(4) Section 188(3)(a)(ii) is amended by omitting “a carbon accounting area”
and substituting “any carbon accounting area or areas”
.
(5) Section 188(3)(b) is amended by inserting “, as soon as practicable,”
after “must”
.
(6) Section 188(6)(b) is amended by repealing subparagraph (ii) and substituting the following subparagraphs:
(7) Section 188(7)(b) is amended by repealing subparagraph (ii) and substituting the following subparagraphs:
(8) Section 188 is amended by repealing subsection (8) and substituting the following subsection:
“(8) A change made to the participant's record under subsection (6)(b)(ii), or (7)(b)(ii) has effect on and after the date of the relevant notice given under subsection (6)(b)(iii), or (7)(b)(iii), as the case may be.
(9) Section 188 is amended by repealing subsection (9) and substituting the following subsections:
47 Emissions returns for post-1989 forest land activities
(1) Section 189(2) is amended by adding “; and”
and also by adding the following paragraph:
(2) Section 189(3) is amended by—
(3) Section 189(3)(c)(i) is amended by inserting the following subsubparagraph after subsubparagraph (B):
(4) Section 189(4)(b)(i)(B) is amended by omitting “; and”
and substituting “; or”
and also by adding the following subsubparagraphs:
(5) Section 189 is amended by inserting the following subsection after subsection (4):
“(4A) A person to whom this section applies may, in the circumstances in subsection (2)(d), submit an emissions return in respect of any carbon accounting area to which a proposed transaction, or expiry of an interest, or an application under section 58, 59, or 188(3)(a)(i) relates that is in respect of the period—
(6) Section 189 is amended by repealing subsection (5) and substituting the following subsection:
(7) Section 189(6)(b)(ii) is amended by omitting “net”
and substituting “gross”
.
(8) Section 189(6)(b)(ii) is amended by adding “as recorded under subsection (5)(a)(iii)”
.
(9) Section 189 is amended by inserting the following subsection after subsection (7):
48 New sections 190 to 193 substituted
Sections 190 to 193 are repealed and the following sections substituted:
“190 Special rules regarding surrender of units in relation to post-1989 forest land
“(1) Despite section 63, a person who is or was a participant in respect of an activity listed in Part 1 of Schedule 4 is not liable to surrender more units in relation to any carbon accounting area or part of a carbon accounting area than the unit balance of that carbon accounting area or part of a carbon accounting area.
“(2) The unit balance of a carbon accounting area must be calculated in accordance with the following formula:
UB = (A – B) + OUB
where—
- UB
- is the unit balance of the carbon accounting area
- A
- is the net number of New Zealand units transferred for removals from the carbon accounting area since the date it was constituted (that is, the number of units transferred for removals less any units repaid under section 123(6) or 189(8))
- B
- is the net number of New Zealand units surrendered for emissions from the carbon accounting area since the date it was constituted (that is, the number of units surrendered, less any units reimbursed under section 124 or 189(7))
- OUB
- is,—
(a) if the carbon accounting area is constituted from land from another carbon accounting area (following the removal of land from a carbon accounting area, or transmission of an interest as defined in section 192), the opening unit balance of the carbon accounting area, as determined in accordance with subsection (3); or
(b) if the carbon accounting area is not constituted as described in paragraph (a), but is constituted from land that was subject to a forest sink covenant under section 67ZD of the Forests Act 1949, the net number of units transferred in respect of the land in the carbon accounting area while it was the subject of the forest sink covenant; or
“(3) The following provisions apply if a person is required by this subpart to calculate the unit balance of a newly constituted carbon accounting area:
“(a) if a carbon accounting area (CAA2) has been constituted under section 192(3)(b)(iii) from the land remaining in an affected carbon accounting area (CAA1) following transmission of an interest in part of the CAA1, the person must calculate the opening unit balance of CAA2 in accordance with subsection (4), and for the purposes of that calculation—
“(b) if a carbon accounting area (CAA2) has been constituted under section 188(7)(b)(ii)(B) from the land remaining in a carbon accounting area (CAA1) because the person has removed land from CAA1 or ceased carrying out an activity listed in Part 1 of Schedule 4 in respect of part of CAA1, the opening unit balance of CAA2 is the figure calculated under section 191(4) for UBr for the purposes of the person’s emissions return under section 191(3):
“(4) The unit balance of part of a carbon accounting area must be calculated in accordance with the following formula:
UBp = UB/H × Hp
where—
- UBp
- is the unit balance of the part of the carbon accounting area
- UB
- is the unit balance of the carbon accounting area of which the part carbon accounting area formed a part, calculated in accordance with subsection (2)
- H
- is the number of hectares in the carbon accounting area of which the part carbon accounting area formed a part
- Hp
- is the number of hectares in the part of the carbon accounting area for which a unit balance is calculated.
“(5) For the purposes of this section,—
“(a) units transferred for removals, surrendered, repaid, or reimbursed in respect of a carbon accounting area include units that a person would have been entitled to receive, or would have been required to surrender or repay, in respect of a carbon accounting area, but which were not actually transferred, surrendered, repaid, or reimbursed because of an election under section 189(8); and
“191 Ceasing to be registered as participant in respect of post-1989 forest land
“(1) Subject to section 193, a person who is or was a participant in respect of an activity listed in Part 1 of Schedule 4—
“(2) An emissions return submitted under this section—
“(3) An emissions return submitted under this section because subsection (1)(a)(iii) applies must—
“(4) Net liability to surrender units or entitlement to receive units in respect of a carbon accounting area required to be covered by the return under subsection (3)(a) must be calculated in accordance with the following formula:
X = UBCAA – UBr
where—
- X
- is,—
(a) if positive, the number of units the person must surrender in respect of the land being removed from the carbon accounting area or upon which the person has ceased to carry out the activity (as adjusted by any units required to be surrendered for emissions, or units to which the person is entitled for removals, from the land remaining in the carbon accounting area); or
(b) if negative, the number of units to which the person is entitled in respect of removals from the land remaining in the carbon accounting area (as adjusted by any units required to be surrendered for the land being removed from the carbon accounting area or in respect of which the person has ceased to carry out the activity)
- UBCAA
- is the unit balance of the carbon accounting area before the removal of the land and submission of the return under this section, calculated in accordance with section 190(2)
- UBr
- is the unit balance of the land remaining in the carbon accounting area calculated as follows:
UBr = (NUBCAA/HCAA) x Hr
where—
- NUBCAA
- is the notional unit balance of the carbon accounting area calculated under subsection (3)(c)(ii)
- HCAA
- is the number of hectares in the carbon accounting area before removal of the land or before the person ceased to carry out the activity in respect of part of the land
- Hr
- is the number of hectares in the carbon accounting area, less the number of hectares being removed or in respect of which the person has ceased to carry out the activity.
“(5) If a person submits an emissions return under subsection (3), section 189(7) applies to the person as if the references in that provision to subsection (4) were references to this section.
“(6) Section 189(8) applies to a person who submits an emissions return under this section with any necessary modifications.
“(7) An emissions return submitted under this section must be—
“192 Effect of transmission of interest in post-1989 forest land
“(1) This section applies—
“(a) if, subject to section 157A(4), a person registered as a participant in respect of an activity listed in Part 1 of Schedule 4 and who is described in the first column of Part A of the following table transfers, including by way of sale, assignment, or by operation of law, all or any of the interest described in the second column of Part A of the table to a person described in the third column of Part A of the table:
“(c) if an interest described in the second column of Part C of the following table expires or is terminated, and the person described in the first column of Part C of the table is, in relation to that interest, registered as a participant in respect of an activity listed in Part 1 of Schedule 4:
| Part A |
|---|
| Existing participant | | Interest transferred | | New participant | | New activity in Part 1 of Schedule 4 |
|---|
| Landowner of post-1989 forest land | | Post-1989 forest land in respect of which the person is recorded as a participant | | New land owner | | Owning post-1989 forest land |
| Holder of a registered forestry right over post-1989 forest land | | Registered forestry right over post-1989 forest land in respect of which the person is recorded as a participant | | New forestry right holder | | Holding a registered forestry right over post-1989 forest land |
| Leaseholder under a registered lease of post-1989 forest land | | Registered lease over post-1989 forest land in respect of which the person is recorded as a participant | | New lessee | | Being the leaseholder under a registered lease of post-1989 forest land |
| Party to a Crown conservation contract | | Crown conservation contract over post-1989 forest land in respect of which the person is recorded as a participant | | New party to the Crown conservation contract | | Being a party to a Crown conservation contract |
| Part B |
|---|
| Existing participant | | Interest entered into | | New participant | | New activity in Part 1 of Schedule 4 |
|---|
| Land owner of post-1989 forest land | | Registered forestry right over post-1989 forest land in respect of which the person is recorded as a participant | | Holder of a registered forestry right over post-1989 forest land | | Being the holder of a registered forestry right over post-1989 forest land |
| Landowner of post-1989 forest land | | Registered lease of post-1989 forest land in respect of which the person is recorded as a participant | | Lessee under a registered lease of post-1989 forest land | | Being a lessee under a registered lease of post-1989 forest land |
| Landowner of Crown land that is post-1989 forest land | | Crown conservation contract over post-1989 forest land in respect of which the person is recorded as a participant | | Party to the Crown conservation contract | | Being a party to a Crown conservation contract |
| Part C |
|---|
| Existing participant | | Interest expired or terminated | | New participant | | New activity in Part 1 of Schedule 4 |
|---|
| Holder of a registered forestry right over post-1989 forest land | | Registered forestry right over post-1989 forest land in respect of which the person is recorded as a participant | | Landowner of the post-1989 forest land | | Owning post-1989 forest land |
| Leaseholder under a registered lease of post-1989 forest land | | Registered lease over post-1989 forest land in respect of which the person is recorded as a participant | | Landowner of the post-1989 forest land | | Owning post-1989 forest land |
| Party to a Crown conservation contract | | Crown conservation contract over post-1989 forest land in respect of which the person is recorded as a participant | | Landowner of the post-1989 forest land | | Owning post-1989 forest land. |
“(2) In subsections (1) and (3) to (7) and section 193,—
“(3) If this section applies, then,—
“(4) If this section applies because a transmitted interest has been transmitted by operation of law, then—
“(5) A notice given under subsection (3)(a)(i) must be—
“(6) Following receipt of a notice complying with subsection (5) and the emissions return required under section 193, the chief executive must take such of the following actions as are relevant:
“(b) if the transferee is already registered under section 57, but not in respect of the activity listed in Part 1 of Schedule 4 that is referred to in the fourth column of the table in subsection (1), amend that registration to show that the transferee is now a participant in respect of that activity:
“(7) To avoid doubt,—
“(a) for the purposes of section 54(4), a transferor continues to be liable in respect of any obligations that arose in relation to the carbon accounting area or part of the carbon accounting area while the transferor was a participant in respect of the post-1989 forest land to which the transmitted interest relates (for example, in respect of the submitting of returns and surrendering of units required under section 189); and
“193 Emissions returns in relation to transmitted interests
“(1) If section 192 applies, the transferor is not required to submit an emissions return under section 191 in respect of any post-1989 forest land to which the transmitted interest relates, but must submit an emissions return under this section by the date specified in section 192(3)(a) or 192(4)(b), as applicable.
“(2) An emissions return under this section must—
“(3) If a person submits an emissions return under this section,—
49 Information about status of forest land
(1) Section 194(2)(a) is amended by inserting “since the carbon accounting area or areas were constituted”
after “request”
.
(2) Section 194(2) is amended by repealing paragraph (b) and substituting the following paragraph:
(3) Section 194(2)(c) and (3) are repealed.
49A First emissions return for pre-1990 forest land activities
Section 196(2A) is amended by omitting “30 April”
and substituting “31 May”
.
Clause 52
To omit this clause (line 17 on page 83 to line 12 on page 84) and substitute the following clause:
52 Participant with respect to mining coal or natural gas
Section 204 is amended by adding the following subsections:
Clause 53: new section 205(1A)
To omit “New Zealand, within”
(line 19 on page 84) and substitute “New Zealand,”
.
To omit “shelf,”
(line 20 on page 84) and substitute “shelf”
.
Clause 54
To omit this section (lines 24 to 32 on page 84) and substitute the following clause:
54 New section 208 substituted
Section 208 is repealed and the following section substituted:
“208 Purchase of coal or natural gas from certain related companies of Part 3 of Schedule 3 participant
“(1) For the purposes of the activities listed in Part 4 of Schedule 4, the reference to a participant who mines coal or natural gas includes the following persons:
“(2) In subsection (1), subsidiary and holding company have the same meaning as in section 5 of the Companies Act 1993.”
Clause 56: new section 213
New subsection (1): to omit “If the”
(line 10 for page 85) and substitute “If an”
.
New subsection (1)(b)(i): to omit “landowner”
(line 24 for page 85) and substitute “person carrying out the activity”
.
New subsection (1)(b)(ii): to omit “landowner”
(line 29 for page 85) and substitute “person carrying out the activity”
.
Clause 56: new section 214
To omit this section (lines 1 to 10 on page 86) and substitute the following section:
“214 Units not required to be surrendered for fertilisers embedded in products
A participant who carries out the activity listed in subpart 1 of Part 5 of Schedule 3 of importing or manufacturing synthetic fertilisers containing nitrogen is not required to surrender units in respect of any synthetic fertiliser containing nitrogen that—
Clause 57: new section 217(1)(b)
To omit “Parts 3 and”
(line 19 on page 86) and substitute “Part 3 or”
.
Clause 58
Subclause (2): to omit this subclause (line 31 on page 86 to line 3 on page 87) and to substitute the following subclause:
Subclause (5): new section 218(2)(ab): to insert after “carries out an activity”
(line 9 on page 87) “specified”
.
Subclause (6): to omit this subclause (lines 13 to 15 on page 87) and substitute the following subclause:
Clauses 59 to 61
To omit these clauses (lines 16 on page 87 to line 3 on page 94) and substitute the following clause:
59 Transitional provision for mandatory reporting by certain participants
(1) Section 219(1)(a) is amended by repealing subparagraph (i) and substituting the following subparagraph:
(2) Section 219(1)(a) is amended by repealing subparagraph (ii) and substituting the following subparagraph:
(3) Section 219(1)(a)(iii) is amended by omitting “Schedule 3 and”
and substituting “Schedule 3 or”
.
(4) Section 219(1)(a) is amended by omitting “2012; or”
and substituting “2012:”
and also by adding the following subparagraph:
(5) Section 219(1) is amended by repealing paragraph (b) and substituting the following paragraph:
(6) Section 219 is amended by adding the following subsections:
“(3) In addition to the requirements specified in section 65, a person to whom subsection (1)(a)(i) or (b) applies must record in that person’s annual emissions return for the period 1 January 2010 to 31 December 2010 the emissions from the activity listed in Part 2, Part 3, or subpart 1 of Part 4 of Schedule 3 or Part 3 or 4 of Schedule 4, calculated undere section 62(b) and, if required, verified under section 62(c), for the period 1 July 2010 to 31 December 2010.
60 New section 220 substituted
Section 220 is repealed and the following section substituted:
“220 Transitional provision relating to unit entitlements for subpart 1 or 3 of Part 2 of Schedule 4 participants
Despite anything in this Act,—
“(a) a person who is a participant in respect of an activity listed in subpart 1 of Part 2 of Schedule 4 and submits an annual emissions return for the period 1 January 2010 to 31 December 2010, or any other emissions return that relates to dates within the period 1 January 2010 to 30 June 2010, is not entitled to be transferred units under section 64 in relation to any removals from the activity reported in any return in respect of the period 1 January 2010 to 30 June 2010; and
“(b) a person who is a participant in relation to an activity listed in subpart 3 of Part 2 of Schedule 4 and submits an annual emissions return for the period 1 January 2012 to 31 December 2012, or any other emissions return that relates to dates within that period, is not entitled to be transferred units under section 64 in relation to any removals from the activity reported in that return; and
“(c) in addition to satisfying the requirements in section 65, a person to whom paragraph (a) applies must record removals calculated under section 62(b) and, if required, verified under section 62(c), for the period—
61 Additional transitional provisions for Part 3 of Schedule 4 participants
Section 221 is amended by repealing subsection (2) and substituting the following subsection:
61A New sections 222A to 222H inserted
The following sections are inserted after section 222:
“222A Transitional provision for liability to surrender units to cover emissions from activities relating to liquid fossil fuels, stationary energy, and industrial processes
“(1) This section applies to a person who—
“(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 respect of 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—
“(2) Despite section 64, 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 provision permitting payment of money instead of surrender of units to cover emissions
“(1) This section applies if—
“(2) Despite anything in this Act, if this section applies, a person may satisfy the person's obligation to surrender, repay, or reimburse units by,—
“(3) For the purposes of subsection (2)(a)(ii) and (iii)(B), a person's obligation to surrender units or repay units is only satisfied when the funds paid into a Crown bank account are cleared.
“(4) For the purposes of subsection (3) 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 Issuing New Zealand units to meet surrender 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,—
“(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 the units in accordance with section 222C(2)(b)(ii) or (iii)(B), then the Registrar must—
“(4) For the avoidance of doubt, section 69 does not apply in respect of any New Zealand units issued under this section.
“(5) If subsection (1) applies, this Act applies with any necessary modification as if the payment of $25 for a unit by a person and the transfer of a unit to a surrender account by the Registrar under this section were a surrender of a unit by the person.
“(6) Despite anything in section 18CA(4), a New Zealand unit that is transferred to a surrender account under subsection (1)(c) may be further transferred in accordance with subsection (3)(a).
“222E Transitional provisions relating to reporting
“(1) In the period beginning on the date this section comes into force and ending with the close of 31 January 2014, the information that can be obtained by a search of the unit register in accordance with section 27(2)(c) must include—
“(2) 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),—
“222F Transitional provision for allocation to industry
“(1) Despite anything in this Act,—
“(c) an eligible person who carries out an eligible industrial activity in 2011 or 2012 is entitled to be allocated or provisionally allocated, in respect of any application made under section 86A in relation to those years, only 50% of the person's allocation entitlement calculated under sections 82 to 85.
“(2) Despite anything in this Act, a person who carries out an eligible industrial activity in the period 1 January 2011 to 31 December 2011 or 1 January 2012 to 31 December 2012 may apply for a provisional allocation or a final allocation under section 86A in respect of the period if—
“222G Transitional provision 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,—
“(2) This section does not apply to New Zealand units—
“222H Transitional provision for unincorporated bodies
“(1) This section applies to 3 or more joint owners of land, leaseholders, forestry right holders, or parties to a Crown conservation contract who registered together as a participant (joint participants) in accordance with section 157 before the commencement of this section.
“(2) If this section applies, then—
“(a) the joint participants are, on and after the commencement of this section, to be treated as members of an unincorporated body that is a participant, but the unincorporated body is not required to—
“(c) the chief executive must, after receiving the information specified in subparagraph (b)(ii), update any records relating to the joint participants, including (but not limited to) by removing the names of the joint participants from any register kept under this Act and substituting the name of the unincorporated body.
“(3) Failure to provide the information specified in section 157(2)(d)(i) in response to a notice given under subsection (2)(b) must be treated as an offence under section 131(1)(a) and that section applies as if the reference to section 94 in that section were a reference to this section.
“(4) If the joint participants fail to provide the information specified in a notice given under subsection (2)(b) within the specified period, the chief executive may, as applicable,—
“(5) If the chief executive updates any records relating to joint participants in accordance with subsection (2)(c) or (4), the chief executive must notify the person authorised or nominated to receive notices on behalf of the unincorporated body accordingly.
“(6) Despite subsection (2),—
“(a) until the chief executive updates any records in relation to any joint participants, the joint participants together remain registered as a participant, and are jointly and severally liable for all obligations, and jointly and severally entitled to all benefits, arising from their status as a participant; and
Clause 63: new section 225
Subsection (1): to insert after “Minister responsible for”
(line 10 on page 94) “the”
.
Subsection (1): to omit “providing for the setting of”
(line 11 on page 94) and substituting “setting”
.
Subsection (2)(a): to omit “reports”
(line 16 on page 94) and substituting “report”
.
Subsection (2)(b)(i): to omit “reports”
(line 21 on page 94) and substituting “report”
.
Clauses 64 and 65
To omit these clauses (line 26 on page 94 to line 19 on page 95) and substitute the following clauses:
64 Schedule 3 amended
(1) The Schedule 3 shoulder reference is omitted and the following substituted:
(2) Part 4 of Schedule 3 is amended by omitting “Producing cable using a nitrogen cure process.”
(3) The item relating to purchasing, other than for on-selling, synthetic fertiliser containing nitrogen in subpart 2 of Part 5 of Schedule 3 is amended by adding “for application to land”
.
(4) Subpart 3 of Part 5 of Schedule 3 is amended by adding the following items:
“Exporting from New Zealand live cattle, sheep, or pigs in accordance with an animal welfare export certificate.
“Producing eggs by a person who is the operator of a risk management programme registered under the Animal Products Act 1999.
65 Schedule 4 amended
(1) The Schedule 4 shoulder reference is omitted and the following substituted:
(2) Part 5 of Schedule 4 is repealed.
Clause 66
To omit this clause (line 22 on page 95 to line 11 on page 97) and substitute the following clauses:
66 Amendments to Maori Fisheries Act 2004
(1) This section amends the Maori Fisheries Act 2004.
(2) Section 5 is amended by repealing the definition of settlement assets and substituting the following definition:
“settlement assets means—
(3) Section 129(1) is amended by omitting “money and any surplus funds”
and substituting “money, any surplus funds, and any New Zealand units allocated to Te Ohu Kai Moana Trustee Limited under the fishing allocation plan issued under the Climate Change Response Act 2002”
.
(4) The following section is inserted after section 138:
“138A Allocation and transfer of New Zealand units
“(1) In this section—
“New Zealand units means New Zealand units allocated to Te Ohu Kai Moana Trustee Limited under the fishing allocation plan issued under the Climate Change Response Act 2002
“unallocated quota means quota held by Te Ohu Kai Moana Trustee Limited on 24 September 2009 and that had not been allocated pursuant to section 130(1), 135, or 151 of this Act at that date.
“(2) When Te Ohu Kai Moana Trustee Limited allocates and transfers unallocated quota to an iwi or a mandated iwi organisation in accordance with section 130(1), 135, or 151 of this Act, Te Ohu Kai Moana Trustee Limited must, at the same time, allocate and transfer New Zealand units associated with that quota to that iwi or mandated iwi organisation in accordance with those provisions.
“(3) Te Ohu Kai Moana Trustee Limited must notify the Minister responsible for the administration of the Climate Change Response Act 2002 of the details of any allocation and transfer of unallocated quota and New Zealand units associated with that quota under subsection (2) no later than 10 working days after the date on which the unallocated quota and associated New Zealand units are allocated and transferred.
67 Consequential amendments
(1) Section 67Y(3A) of the Forests Act 1949 is amended by omitting “section 80, or in regulations made under section 168(1)(k) of the Climate Change Response Act 2002 or”
and substituting “section 90 of the Climate Change Response Act 2002, or in regulations made under section 168(1)(k) of that Act, or”
.
(2) The regulations set out in the Schedule are amended in the manner set out in the Schedule.
New Schedule
To add the following schedule (after line 11 on page 97):
Climate Change (Forestry Sector) Regulations 2008 (SR 2008/355)
Regulation 4: add:
Regulation 20: revoke and substitute:
“20 Calculation of carbon stock changes by post-1989 forest land participants
“(1) A post-1989 forest land participant must calculate the emissions or removals from each carbon accounting area covered by an emissions return for an emissions return period by determining the carbon stock change in the carbon accounting area in accordance with the following formula:
CSchange = ∑(CSclosing) − ∑(CSopening)
where—
- CSchange
- is the carbon stock change for the carbon accounting area in the emissions return period
- CSclosing
- is the carbon stock of each sub-area within the carbon accounting area at the end of the emissions return period, calculated in accordance with regulation 21
- CSopening
- is, subject to regulation 20A, the carbon stock of each sub-area within the carbon accounting area at the beginning of the emissions return period, calculated in accordance with regulation 21.
“(2) If the carbon stock change for a carbon accounting area in an emissions return period is—
“(3) This regulation is subject to regulation 20A.
“20A Calculation of carbon stock changes when new carbon accounting area is constituted from post-1989 forest land from another carbon accounting area
“(1) This regulation applies if a carbon accounting area (CAA2) has been constituted from the whole or part of another carbon accounting area or areas under section 188(7)(b)(ii)(B) or 192(3)(b).
“(2) For the purposes of calculating carbon stock change in CAA2 under regulation 20(1) in an emissions return period that commences on the date of constitution of CAA2, CSopening is the figure determined using the following formula:
CSopening = ∑(CSpclosing)
where—
- CSopening
- is the carbon stock for CAA2 at the beginning of the emissions return period
- CSpclosing
- is the carbon stock at the beginning of the emissions return period for each part of CAA2 formed from another carbon accounting area, as calculated under subclause (3).
“(3) For the purposes of subclause (2), CSpclosing must be calculated using the following formula:
CSpclosing = CSCAA1/HCAA1 × HpCAA1
where—
- CSpclosing
- is the carbon stock at the beginning of the emissions return period for the part of CAA2 that has been formed from CAA1
- CSCAA1
- is the total carbon stock for CAA1 at the end of the period covered by the return submitted under section 191 or 193 of the Act for CAA1 (as calculated under regulation 21)
- HCAA1
- is the number of hectares in CAA1 (immediately before constitution of CAA2)
- HpCAA1
- is the number of hectares of the part of CAA1 that forms part of CAA2.
“(4) For the purpose of subclause (3), CAA1 means the carbon accounting area from which CAA2 formed part.
Climate Change (Stationary Energy and Industrial Processes) Regulations 2009 (SR 2009/285)
Definition of coal miner in regulation 3(1): revoke and substitute:
Definition of gas miner in regulation 3(1): revoke and substitute:
Regulation 3(1): insert in its appropriate alphabetical order:
“holding company has the same meaning as in section 5 of the Companies Act 1993
Regulation 10(1)(a): omit “to persons other than opt-in coal participants,”
.
Regulation 10(1): insert after paragraph (b):
Regulation 10: revoke subclause (3) and substitute:
Regulation 11(1): omit the formula and substitute:
E = ((A × CV) + (C × CV) + (D × CV) − (B × CV) − (BA × CV)) × EF1
Regulation 11(1): insert after item A:
- BA
- is the total number of tonnes of coal of the class sold by the person in the year to opt-in coal participants, as recorded under regulation 10(1)(ba)
Regulation 16: insert “, including (but not limited to) a field”
after “each field”
in each place where it appears.
Regulation 16(1)(a): omit “to persons (other than opt-in natural gas participants)”
.
Regulation 16(1)(b): omit “by the person in the year, as measured at the point of sale”
and substitute “by the person or a third party in the year, as recorded at the customs point”
.
Regulation 16(1): insert after paragraph (b):
Regulation 16(3): omit “subclause (1)(a) and (b),”
and substitute “subclause (1)(a), (b), and (ba),”
.
Regulation 16(5): revoke and substitute:
Regulation 16: add:
Regulation 17(1): omit “field listed in Table 10 in Schedule 2”
and substitute “field, including (but not limited to) a field listed in Table 10 of Schedule 2,”
.
Regulation 17(1)(a): omit “to persons other than opt-in natural gas participants”
.
Regulation 17(1)(b): insert “or a third party”
after “the person”
.
Regulation 17(1): insert after paragraph (b):
Regulation 17(3): omit “field listed in Table 10 of Schedule 2”
and substitute “field, including (but not limited to) a field listed in Table 10 of Schedule 2,”
.
Regulation 17(4): omit the formula and substitute:
Efield = ∑(ES) + U + F + V − ∑(EE) − ∑(EO)
Item EE of the formula in regulation 17(4): insert “or a third party”
after “the person”
.
Formula in regulation 17(4): insert after the entry for the item EE:
- EO
- is the emissions from each class of mined natural gas from the field sold by the person in the year to opt-in natural gas participants, as calculated under subclause (2)
Climate Change (Unit Register) Regulations 2008 (SR 2008/357)
Definition of Crown holding account in regulation 3: revoke.
Paragraph (a) of the definition of qualified person in regulation 3: revoke and substitute:
Paragraph (b) of the definition of qualified person in regulation 3: omit “an allocation plan;”
and substitute “subpart 2 of Part 4 of the Act”
.
Regulation 6: revoke and substitute:
“6 Holding accounts may be held jointly
“(1) Two or more persons may hold a holding account jointly if each person is a qualified person.
“(2) Each person who holds or held a holding account jointly is jointly and severally liable, in respect of the period or any part of the period during which the person holds or held the account jointly, for any matter arising with respect to the account.
“(3) In the case of a holding account held jointly, any declaration that must be signed by an account holder under these regulations must be signed by each person who holds the holding account jointly.
“(4) In the case of a proposed holding account to be held jointly, any declaration that must be signed by the proposed account holder under these regulations must be signed by each person who proposes to hold the holding account jointly.
“(5) The Registrar may add or remove a member of an unincorporated body as an account holder of a holding account if—
“(6) If a holding account is held jointly other than by members of an unincorporated body, and a person who is an account holder wishes to be removed as an account holder or a person wishes to be added as an account holder, then—
“6A Nominated entities of consolidated groups
“(1) This regulation applies if the nominated entity of a consolidated group gives notice to the chief executive under section 152(3) of the Act that—
“(2) The nominated entity must give the Registrar—
“(3) The nominated entity must comply with subclause (2) no later than 10 working days after the date on which the entity gave notice to the chief executive.
“(5) The Registrar must comply with subclause (4)—
Regulation 15: omit “3”
in each place where it appears and substitute in each case “5”
.
Explanatory note
This Supplementary Order Paper amends the Climate Change Response (Moderated Emissions) Amendment Bill. The most substantial amendments are outlined in this note.
Clauses 4 and 5 are replaced, and new clause 5A inserted. Clauses 4 and 5 deal with the application of Schedules 3 and 4, which set out the activities in respect of which persons must or may be participants. New clause 5A makes a technical amendment to section 3.
Clause 6 amends section 4, which contains a number of definitions.
Clause 7A is inserted and, in turn, inserts new section 14 which requires the Registrar to give effect to directions by the Minister.
Clause 8 amends new section 17A to clarify that the Registrar may delegate to members of the state services.
Clause 9A is inserted and amends section 18CA which deals with the effect of surrender, retirement, cancellation, and conversion of units.
Clause 10 is replaced by new clauses 10 to 10E. Clause 10 amends section 18E so that notice of a trust may be entered on the register if the trustees apply to open a holding account. Clauses 10A to 10E deal with registration of units in the New Zealand Emissions Register.
Clause 13 makes minor changes to cross references in section 54, which deals with who is a participant.
Clause 14 amends section 55, which deals with associated persons.
Clause 18 amends section 60 so that an Order in Council exempting a person or class of persons fro carrying out an activity in Schedule 3 from being a participant may specify terms and conditions.
Clause 19 amends new section 61. New section 61 deals with requirements to have holding accounts
New clause 19A amends section 62, which deals with monitoring of emissions and removals.
Clauses 20 and 21 amend sections 64 and 65 respectively. Section 64 deals with the entitlement to receive New Zealand units for removal activities. The amendments have the effect of removing the Minister from the process. Section 65 deals with the annual emissions return. The amendments clarify timing and the extend the time by 1 month that a participant has to surrender units.
Clause 22 is replaced. New clause 22 replaces subpart 2 of Part 4 of the Act. Subpart 2 of Part 4 deals with the issuing and allocation of New Zealand units. The amendments include—
allowing a series of individual determinations to be made rather than one single determination:
limiting the circumstances in which the Minister can replace a determination and limiting the effect of those replacement determinations given the one-off nature of the pre-1990 forest land and fishing allocations:
allowing a determination to also state the years in which a person will receive units to which they are entitled:
extending the chief executive’s information request powers to enable the chief executive to request information from pre-1990 forest land owners and fishing quota owners in order to verify the accuracy of the information they have previously provided, the level of their entitlement, and their compliance with the requirements of an allocation plan:
permitting the chief executive to access and rely on the quota register kept under the Fisheries Act in order to make determinations under the fishing allocation plan:
clarifying when closure provisions apply by providing that they apply after three months:
removing the requirement for a person to provide notification of any decision to cease carrying out an activity (as part of their application for allocation):
specifying that allocative baselines for agriculture are to be based on average emissions per unit of output, and on emissions of methane and nitrous oxide.
providing for the publication of individual allocation decision to industry or agriculture unless it would be commercially prejudicial to do so.
New clause 22A amends section 87 by inserting a new function for the chief executive to administer allocations relation to industry and agriculture, and replacing the function of notifying the Minister of participants' entitlements with the function of directing the Registrar to transfer New Zealand units to participants' holding accounts.
Clause 23 amends section 89, which requires the chief executive to publish certain information. The amendment requires publication of the total number of New Zealand units allocated under subpart 2 less any units repaid.
New clause 23A makes a minor amendment to section 100, which deals with power of entry for investigation.
Clause 24 makes a minor amendment to section 108 which deals with matters in relation to which chief executive may decline to make emissions rulings.
Clause 25 amends section 118 which deals with the submission of final emissions returns, making the periods to which information must relate more specific.
New clauses 26A and 26B amend sections 123 and 124 respectively. They deal with the effect of amendment or assessment or reimbursement of units by the chief executive.
Clauses 28 to 30 amend sections 129, 132, and 133, which deal with offences. The amendments to section 129 and 130 provide for more specific strict liability offences and general offences relating to failure to keep records and a new offence of failing to comply with requirements relating to annual allocation adjustments or closing allocation adjustments. The amendment to section 133 creates a new offence of evasion of the new offences in sections 129 and 130.
New clauses 30A and 30B replace section 136 and amend section 137 respectively. New section 136 imposes a penalty of surrendering units in addition to any other penalty.
New clause 30C amends section 138 which provides that obligations to pay a penalty is not suspended by an appeal.
Clauses 31 to 37 deal with the provisions concerning consolidated groups.
New clause 37A replaces section 157 of the Act, which relates to unincorporated bodies, and inserts new section 157A which deals with changes to unincorporated bodies that are participants.
Clause 38 inserts new sections 161A to 161H, which deal with powers and processes in relation to allocation to industry and agriculture, and in particular provide for—
regulations in relation to eligible industries:
Australian eligible industrial activities:
other eligible industrial activities:
power to require information for purposes of allocation to industry:
requirements in respect of notice given under section 161D:
consultation on activities that may be prescribed as eligible industrial activities:
regulations in relation to eligible agricultural activities:
power to request information showing output from eligible agricultural activities.
Clause 41 amends section 168 so that the regulation-making power allowing a date to be prescribed by which the chief executive must submit an application under section 183 no longer requires the date to be no later than 1 July 2020.
Clause 43 amends section 183 which deals with applications for exemption for land holding of less than 50 hectares of pre-1990 forest land.
Clause 44 amends section 184, which allows people carrying out deforestation of “tree weeds”
(eg, wilding pines) to apply for and receive an exemption from the deforestation provisions of the principal Act. The SOP amends clause 44 to extend the tree weed exemption to eligible planted/sown pre-1990 forest land.
Clause 45 specifies those conditions that must be met before a person can be a participant in relation to post-1989 forest land. The SOP replaces clause 45 so that a person may not be registered as a participant under section 57 in respect of carrying out an activity listed in Part 1 of Schedule 4 if they are not compliant with—
the provisions of the Resource Management Act 1991, including any plan under that Act, and the Forests Act 1949, as in force at the time that the action was taken by the applicant after 1 January 2008 in relation to that land:
any pest management strategy under the Biosecurity Act 1993 in relation to that land.
Clause 46 amends section 188 of the principal Act, which provides for the registration of all or part of a participant’s post-1989 forest land. The SOP replaces clause 46 so that the chief executive need not keep a record of the net emissions and removals for a carbon accounting area:
Clause 47 amends section 189 of the principal Act, which sets out rules for filing emissions returns in relation to post-1989 forest land. The SOP replaces clause 47 to include the date of constitution of a carbon accounting area as the commencement date for emissions returns where areas are constituted by operation of sections 191 or 193.
Clause 48 of the Bill replaces sections 190 to 193, which are designed to provide the mechanism for tracking carbon stocks in situations when carbon accounting areas are subdivided into parts that become new carbon accounting areas or when subdivided parts are combined into new carbon accounting areas. The SOP replaces new sections 190 to 193 to—
accommodate the concept of “opening unit balance”
:
clarify how to calculate the Unit Balances when carbon accounting areas are redefined:
require a mandatory emissions return when post-1989 forest land is withdrawn from the scheme and this results in the carbon accounting areas being split.
Clause 49 amends section 194, which deals with information about the status of forest land.
New clause 49A amends section 196, which deals with first emissions return for pre-1990 forest land activities, by delaying by a month the deadline for surrendering units.
Clause 52 amends section 204, which deals with Participants in relation to mining coal and natural gas.
Clause 53 makes a minor amendment to section 205(1A).
Clause 54 replaces section 208 so that reference to a participant includes related companies.
Clause 56 amends new sections 213 and 214, which deal respectively with participants in respect of subpart 4 of Part 5 of Schedule 3 (animal farmers), and certain participants not required to surrender units in respect of synthetic fertiliser containing nitrogen.
Clause 57 makes an adjustment to a cross reference in section 217.
Clause 58 amends section 218 which deals with transitional provisions for voluntary reporting.
Clauses 59 and 60 deal with transitional provisions for reporting, unit entitlement, and certain participants. Clause 59 amends section 219 which provides transitional provisions for mandatory reporting. Clause 60 replaces new section 220 which deals with transitional provisions in relation to unit entitlements for certain participants.
Clause 61 amends section 221, which provides for additional transitional arrangement for certain participants.
Clause 61A of the Bill inserts new sections 222A to 222H, which set out transitional provisions which apply in respect of emissions and removals from 1 July 2010 to 31 December 2012. The SOP replaces clause 61, inserting new provisions in the Act to—
ensure that all the participants intended to have access to the $25 option do have access:
provide the chief executive with a further option to meet his or her reimbursement obligation by a combination of both reimbursing units and paying $25 in lieu of reimbursing a unit:
provide transitional deadlines for application for provisional allocation and allocation adjustment:
provide for the transition of joint participants into the new (unincorporated body) regime providing for the treatment of persons jointly carrying out an NZ ETS activity:
allow jet fuel purchasers who apply between January and July 2010 to opt in to have their registration take effect 5 months after date of entry on the register; and to allow jet fuel purchases who apply before January 2010 to have their registration take effect on 1 July 2010:
provide transitional arrangements in relation to the prohibition on export of New Zealand units:
provide transitional arrangements for unincorporated bodies.
New clause 63 amends new section 225 which deals with regulations relating to targets.
New clauses 64 and 65 amend Schedules 3 and 4.
New clause 66 amends the Maori Fisheries Act 2004 to provide for Te Ohu Kai Moana Trustee Limited to transfer New Zealand units associated with quota that was unallocated as at 24 September 2009 with that quota when it is allocated.
New clause 67 inserts a Schedule to make consequential amendments to various regulations made under the principal Act.