Climate Change Response Act 2002

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Reprint as at 1 January 2019

Climate Change Response Act 2002

Public Act		2002 No 40
Date of assent		18 November 2002
Commencement		see section 2

Note

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

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

This Act is administered by the Ministry for the Environment.

1	Title
	Part 1 Preliminary provisions
2	Commencement
2A	Application of Schedules 3 and 4
2B	Orders in Council in relation to Part 5 of Schedule 3
2C	Effect of Orders in Council in relation to Part 5 of Schedule 3
3	Purpose
3A	Treaty of Waitangi (Te Tiriti o Waitangi)
4	Interpretation
5	Act binds the Crown
	Part 2 Institutional arrangements
	Subpart 1—Ministerial powers
6	Minister of Finance may direct Registrar regarding establishment of Crown holding accounts and carry out trading activities with respect to units
6A	Minister’s power to sell by auction
7	Minister of Finance may give directions to Registrar regarding accounts and units
8	Registrar must give effect to directions of Minister of Finance
8A	Minister of Finance must publish directions
9	Minister of Finance may obtain information from inventory agency and Registrar
	Subpart 1A—Chief executive
9A	Functions of chief executive
9B	Delegation by chief executive
	Subpart 2—Registry
	Purpose of Registry
10	Purpose of Registry
	Registrar
11	EPA to appoint Registrar
12	Registrar responsible for Registry
13	Registrar may refuse access to, or suspend operation of, Registry
14	Registrar must give effect to directions
15	Registrar to allocate unique numbers
16	Carry-over of certain Kyoto units
17	Commitment period reserve
17A	Power of Registrar to delegate
	Unit register
18	Form and content of unit register
18A	Opening holding accounts
18B	Closing holding accounts
18C	Transfer of units
18CA	Effect of surrender, retirement, cancellation, and conversion
18CB	Restriction on surrender of assigned amount units
18CC	Restriction on surrender of assigned amount units issued during first commitment period
18CD	Effect of surrendering restricted assigned amount units
18D	Succession
18E	Trusts, representatives, and assignees of bankrupts
19	Retirement of Kyoto units by the Crown
20	Transactions must be registered
21	Registration procedure for Kyoto units
21AA	Registration procedure for New Zealand units and approved overseas units
21A	Electronic registration
21B	Defective applications
22	Transactions take effect when registered
23	Receiving Kyoto units from overseas registries
23A	Receiving New Zealand units and approved overseas units from overseas registries
24	Priority of registration
25	Correction of unit register
26	Unit register must be open for search
27	Information accessible by search
28	Search of unit register
29	Printed search result receivable as evidence
30	Recovery of fees
30A	The Crown or Registrar not liable in relation to searches in certain cases
	Expiry of long-term certified emission reduction units and temporary certified emission reduction units
30B	Expiry of long-term certified emission reduction units
30C	Replacement of certain long-term certified emission reduction units
30D	Expiry of temporary certified emission reduction units
	Miscellaneous provisions
30E	Conversion of New Zealand units into designated assigned amount units for sale overseas or cancellation
30F	Restrictions on certain New Zealand units allocated to landowners of pre-1990 forest land
30G	Regulations relating to Part 2
30GA	Further provisions governing regulations made under section 30G(1)(p)
30GB	Further provisions governing regulations made under section 30G(1)(q)
30H	Procedure for certain regulations relating to units
30I	Incorporation by reference in regulations made under section 30G
30J	Signing false declaration with respect to regulations made under section 30G
30K	Providing false or misleading information to Registrar
	Part 3 Inventory agency
31	Meaning of greenhouse gas
32	Primary functions of inventory agency
33	Inventory agency under direction of Minister
34	Record keeping
35	Publication
	Inspectors
36	Authorisation of inspectors
37	Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases
38	Limitation on power of entry under section 37
39	Power of entry for inspection
40	Applications for warrants
41	Entry of defence areas
42	Proof of authority must be produced
43	Notice of entry
44	Information obtained under section 39 or section 40 only admissible in proceedings for alleged breach of regulations made under section 50(2)
45	Return of items seized
45A	Protection of persons acting under authority of this Part
	Offences and penalties
46	Failing to provide required information to inventory agency
47	Obstructing, hindering, resisting, or deceiving person exercising power under Part
48	Signing false declaration in respect of regulations made under section 50
48A	Providing false or misleading information to Registrar [Repealed]
	Miscellaneous provisions
49	Reporting
50	Regulations
51	Incorporation by reference in regulations made under section 50
52	Inventory agency must report to Minister on certain matters before certain regulations are made
53	Consequential amendments
	Part 4 New Zealand greenhouse gas emissions trading scheme
	Subpart 1—Participants
54	Participants
55	Associated persons
56	Registration as participant in respect of activities listed in Schedule 3
57	Applicant to be registered as participant in respect of activities listed in Schedule 4
58	Removal from register of participants in respect of activities listed in Schedule 4
59	Removal from register of participants in respect of activities listed in Schedules 3 and 4
60	Exemptions in respect of activities listed in Schedule 3
61	Requirement to have holding account
62	Monitoring of emissions and removals
63	Liability to surrender units to cover emissions
63A	Modification of liability to surrender units to cover certain emissions [Repealed]
64	Entitlement to receive New Zealand units for removal activities
64A	Modification of entitlement to receive New Zealand units for removal activities [Repealed]
65	Annual emissions returns
66	Quarterly returns for other removal activities
67	Retention of emissions records
	Subpart 2—Issuing and allocating New Zealand units
68	Issuing New Zealand units
69	Notification of intention regarding New Zealand units
	Allocation of New Zealand units in relation to pre-1990 forest land and fishing
70	Governor-General may issue allocation plans
71	Correction of allocation plans
72	Allocation in respect of pre-1990 forest land
73	Minister to appoint person to hold certain New Zealand units
74	Allocation to owners of fishing quota
75	Consultation on pre-1990 forest land allocation plan
76	Consultation on fishing allocation plan
77	Determinations made in accordance with allocation plan
78	Power to revoke and replace determinations
79	Effect of new determination
	Allocation of New Zealand units in relation to industry and agriculture
80	Criteria for allocation of New Zealand units to industry
81	Entitlement to provisional allocation for eligible industrial activities
82	Entitlement to allocation for eligible industrial activities where provisional allocation not received
83	Annual allocation adjustment
84	Closing allocation adjustment
84A	Temporary suspension of allocation entitlement for eligible industrial activities [Repealed]
85	Allocation of New Zealand units in relation to agriculture
85A	Temporary suspension of phase-out rates for assistance under sections 81, 83(2), and 85(2)
85B	Temporary suspension of allocation entitlement for eligible agricultural activities [Repealed]
86	Applications for allocation of New Zealand units for industry and agriculture
86A	Provisional allocation to industry in and after 2013
86B	Decisions on applications for allocations of New Zealand units to industry and agriculture
86C	Reconsideration of allocation decisions
86D	Retention of records and materials in relation to allocation
86E	Minister or EPA or chief executive may require further information for purpose of carrying out functions under subpart
86F	Balance of units at end of true-up period or other balance date [Repealed]
	Subpart 3—Environmental Protection Authority
	General administrative provisions
87	Functions of EPA
87A	Delegation by EPA
88	Directions to EPA
89	EPA to publish certain information
90	EPA may prescribe form of certain documents
91	Approval of unique emissions factors
92	Recognition of verifiers
	Verification and inquiry
93	Appointment of enforcement officers
94	Power to require information
95	Power to inquire
96	Inquiry before District Court Judge
97	No criminal proceedings for statements under section 95 or 96
98	Expenses in relation to inquiries
99	Obligation to maintain confidentiality
100	Power of entry for investigation
101	Applications for warrants
102	Proof of authority must be produced
103	Notice of entry
104	Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under this Part and Part 5
105	Return of items seized
106	Protection of persons acting under authority of this Part
	Emissions rulings
107	Applications for emissions rulings
108	Matters in relation to which EPA may decline to make emissions rulings
109	Making of emissions rulings
110	Notice of emissions rulings
111	Confirmation of basis of emissions rulings
112	Notifying EPA of changes relevant to or failure to comply with emissions rulings
113	Correction of emissions rulings
114	Cessation of emissions rulings
115	Appeal from decisions of EPA
116	Effect of emissions rulings
117	EPA may publish certain aspects of emissions rulings
	Emissions returns
118	Submission of final emissions returns
119	Power to extend date for emissions returns
120	Amendment to emissions returns by EPA
121	Assessment if default made in submitting emissions return
122	Amendment or assessment presumed to be correct
123	Effect of amendment or assessment
124	Reimbursement of units by EPA
125	Repayment of units by persons in case of error
126	Obligation to surrender or repay units not suspended by review or appeal
127	Time bar for amendment of emissions returns
128	Amendments and assessments made by electronic means
	Subpart 4—Offences and penalties
129	Offences in relation to failure to comply with various provisions
130	Offence for breach of section 99
131	Offence for failure to provide information or documents
132	Other offences
133	Evasion or similar offences
134	Penalty for failing to surrender or repay units
134A	Penalty for failing to surrender or repay units when required by notice given under section 134(3)
135	Reductions in penalty
136	Additional penalty for knowing failure to comply
137	Interest for late payment
138	Obligation to pay penalty not suspended by appeal
138A	Penalties to be paid into Crown account
139	Liability of body corporate
140	Liability of directors and managers of companies
141	Liability of companies and persons for actions of director, agent, or employee
142	Limitation period for commencement of proceedings
143	Evidence in proceedings
	Subpart 5—Review and appeal provisions
144	Request for review of decisions
145	Right of appeal to District Court
146	Appeals to High Court on questions of law only
	Subpart 6—Miscellaneous provisions
147	Giving of notices by EPA
148	Giving of notices to EPA
149	Sharing information
150	Formation of consolidated group
151	Changes to consolidated groups
151A	Addition of activities to consolidated groups
152	Nominated entities
153	Effect of being member of consolidated group
154	Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4
155	Ceasing to be member of consolidated group
156	Effect of ceasing to be member of consolidated group
156A	Removal of activities from consolidated groups
157	Unincorporated bodies
157A	Changes to unincorporated bodies that are participants
158	Compensation for participants where public works result in liability to surrender units
159	Recovery of costs
160	Review of operation of emissions trading scheme
161	Appointment and conduct of review panel
161A	Regulations in relation to eligible industrial activities
161B	Australian eligible industrial activities
161C	Other eligible industrial activities
161D	Power to require information for purposes of allocation to industry
161E	Requirements in respect of notice given under section 161D
161F	Consultation on activities that may be prescribed as eligible industrial activities
161G	Regulations in relation to eligible agricultural activities
161H	Power to request information showing output from eligible agricultural activities
162	Regulations adding further activity to Part 2 of Schedule 4
162A	Orders are confirmable instruments
163	Regulations relating to methodologies and verifiers
164	Regulations relating to unique emissions factors
165	Regulations relating to offsetting of pre-1990 forest land [Repealed]
166	Procedure for regulations relating to methodologies, verification, unique emissions factors, and offsetting
167	Regulations relating to fees and charges
168	Other regulations
169	Incorporation by reference in regulations made under section 163, 164, 167, or 168
170	Effect of amendments to, or replacement of, material incorporated by reference in regulations
171	Proof of material incorporated by reference
172	Effect of expiry of material incorporated by reference
173	Requirement to consult
174	Public access to material incorporated by reference
175	Application of Legislation Act 2012 to material incorporated by reference
176	Application of Regulations (Disallowance) Act 1989 to material incorporated by reference [Repealed]
177	Application of Standards and Accreditation Act 2015 not affected
178	Recovery of fees or charges
178A	Option to pay money instead of surrendering units to cover emissions
178B	Issuing New Zealand units to meet surrender obligations
178C	Prohibition on ability to export New Zealand units
	Part 5 Sector specific provisions
	Subpart 1—Forestry sector
	General
179	Forest land to be treated as deforested in certain cases
179A	Forest land may not be treated as deforested in certain cases
	Pre-1990 forest land
180	Participant in respect of pre-1990 forest land
181	When deforestation to be treated as occurring in respect of pre-1990 forest land
182	Offsetting in relation to pre-1990 forest land [Repealed]
183	Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land
183A	Certain applications not otherwise permitted by section 183
184	Exemptions for deforestation of land with tree weeds
185	Effect of exemption
186	Methodology for pre-1990 forest land cleared in 8 years or less
	Pre-1990 offsetting forest land
186A	Persons who own pre-1990 forest land may submit offsetting forest land applications to EPA
186B	Criteria for approving offsetting forest land applications
186C	Conditions applicable to offsetting forest land
186D	Requirements relating to offsetting forest land
186E	Deforesting pre-1990 offsetting forest land before usual rotation period of forest species on pre-1990 forest land
186F	Regulations relating to offsetting
186G	EPA may revoke approval in certain circumstances
186H	Treatment of allocations in respect of pre-1990 forest land that is offset
186I	Participant in respect of pre-1990 offsetting forest land
186J	Methodology for pre-1990 offsetting forest land cleared after usual rotation period is completed
	Post-1989 forest land
187	Conditions on registration as participant in respect of certain activities relating to post-1989 forest land
187A	EPA to give public notice of criteria for assessing risk of tree weed spread
188	Registration as participant in respect of post-1989 forest land
188A	Person ceases to be participant in respect of post-1989 forest land if natural event permanently prevents re-establishing forest on that land
189	Emissions returns for post-1989 forest land activities
190	Special rules regarding surrender of units in relation to post-1989 forest land
191	Ceasing to be registered as participant in respect of post-1989 forest land
192	Effect of transmission of interest in post-1989 forest land
193	Emissions returns in relation to transmitted interests
194	Information about status of forest land
	Post-1989 forest land and pre-1990 forest land
195	Notification of status of forest land
	Transitional provisions
196	First emissions return for pre-1990 forest land activities
196A	Power to withdraw or suspend certain draft allocation plans [Repealed]
197	First emissions return for post-1989 forest land activities
	Subpart 2—Liquid fossil fuels sector
198	Registration as participant by purchasers of obligation fuel
199	Historical information sufficient to satisfy EPA
200	Effect of purchasing less than threshold level of obligation fuel
201	Effect of registration by purchasers of obligation fuel
202	Activities added to Part 2 of Schedule 3
202A	Orders are confirmable instruments
203	Treatment of obligation fuels
	Subpart 3—Stationary energy sector
204	Participant with respect to mining coal or natural gas
205	Mining natural gas in exclusive economic zone and continental shelf
206	Obligation with respect to combusting used oil, waste oil, and waste
207	Obligation with respect to mining coal
208	Purchase of coal or natural gas from certain related companies of Part 3 of Schedule 3 participant
209	Registration as participant by purchasers of coal or natural gas
210	Historical information sufficient to satisfy EPA
211	Effect of purchasing less than threshold level of coal or natural gas
212	Effect of registration by purchasers of coal or natural gas
	Subpart 4—Agriculture
213	Participant in respect of subpart 4 of Part 5 of Schedule 3
214	Units not required to be surrendered for fertilisers embedded in products
215	Effect of purchasing or farming less than threshold level [Repealed]
216	Effect of registration by farmers [Repealed]
	Subpart 5—Transitional provisions
217	Transitional provision for penalties
218	Transitional provision for voluntary reporting
219	Transitional provision for mandatory reporting by certain participants
220	Transitional provision relating to unit entitlements for subpart 1 or 3 of Part 2 of Schedule 4 participants
221	Additional transitional provisions for Part 3 of Schedule 4 participants
222	Transitional provisions regarding regulations that replace existing unit register regulations
222A	Transitional provision for liability to surrender units to cover emissions from activities relating to liquid fossil fuels, stationary energy, and industrial processes [Repealed]
222B	Transitional provision for entitlement to receive New Zealand units for removal activities [Repealed]
222C	Transitional provision permitting payment of money instead of surrender of units to cover emissions [Repealed]
222D	Issuing New Zealand units to meet surrender obligation [Repealed]
222E	Transitional provisions relating to reporting [Repealed]
222F	Transitional provision for allocation to industry [Repealed]
222G	Transitional provision regarding prohibition on ability to export New Zealand units [Repealed]
222H	Transitional provision for unincorporated bodies
	Part 6 Targets
223	Establishment of Household Fund [Repealed]
224	Gazetting of targets
225	Regulations relating to targets
	Part 7 Synthetic greenhouse gas levy
226	Overview of functions and responsibilities of EPA and agencies under this Part, Customs and Excise Act 2018, and Land Transport Act 1998
	Subpart 1—Synthetic greenhouse gas levy
	Levy imposed
227	Synthetic greenhouse gas levy imposed
228	Person who registers leviable motor vehicle responsible for paying levy
229	Importer of leviable goods must pay levy
230	Levies are debt due to the Crown
231	Penalties for failure to pay levy [Repealed]
232	Application of provisions of Customs and Excise Act 2018
	Calculation of levy
233	Rate of synthetic greenhouse gas levy
234	Transitional provision for synthetic greenhouse gas levy
235	Temporary suspension of levy set by section 233 [Repealed]
236	Maximum price of carbon for purpose of levy calculation
237	Levy rate exclusive of GST
238	Levy rate for period from 1 July 2013 to 31 December 2013 [Repealed]
239	Levy rate to apply for single calendar year on and after 1 January 2014
	Levies to be paid into Crown Bank Account
240	Agencies to pay levy into Crown Bank Account
	Information
241	Agencies to provide information to EPA quarterly
242	Agencies and EPA to share information
243	Circumstances where levy may be refunded
244	Exemptions from payment of synthetic greenhouse gas levy
	Regulations
245	Regulations specifying levy rates
246	Regulations relating to synthetic greenhouse gas levy
247	Process for making orders and regulations
	Obligations of importers of leviable goods
248	Collecting information and keeping records
	Subpart 2—Administrative provisions and verification
249	Application of section 88 (Directions to EPA)
250	EPA to publish information relating to levies
251	Recognition of verifiers
252	Enforcement officers
253	Power to require information
254	Power to inquire
255	Inquiry before District Court Judge
256	Obligation to maintain confidentiality
257	Power of entry for investigation, warrants, etc
258	Regulations relating to verifiers
	Subpart 3—Offences and penalties
	Offences relating to synthetic greenhouse gas levy
259	Offence in relation to failure to collect data and keep records
260	Failure to provide information or documents
261	Other offences
262	Offence for breach of confidentiality
263	Evasion
	Offence in relation to release of synthetic greenhouse gases
264	Offence in relation to release of synthetic greenhouse gases
265	Defence for release of synthetic greenhouse gas
	Proceedings and liability
266	Limitation period for commencement of proceedings
267	Evidence in proceedings
268	Liability of body corporate, directors, managers of companies, companies, and persons for actions of directors, agents, and employees
	Subpart 4—Other matters
269	Review of operation and effectiveness of levy
270	Appointment and conduct of independent panel
	Schedule 1 United Nations Framework Convention on Climate Change
	Schedule 2 Kyoto Protocol to the United Nations Framework Convention on Climate Change
	Schedule 3 Activities with respect to which persons must be participants
	Schedule 4 Activities with respect to which persons may be participants
	Climate Change Response (Emissions Trading) Amendment Act 2008
	Reprint notes

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