86BC Transfer of allocated units to agriculture, less any units that must be surrendered or repaid

(1)

This section applies to the units allocated to an applicant under section 86BA (the potential transfer units).

(2)

The EPA must calculate the specified units by counting units in the following order, but stopping once they equal the number of potential transfer units (if they do):

(a)

first, the units required for surrender as a result of the assessment for the year to which the allocation relates:

(b)

second, the units (if any) that the applicant was required to, but did not, surrender, or repay to a Crown holding account, as a result of an assessment for an earlier year, starting from the units that were required to be surrendered or repaid by the earliest dates.

(3)

The EPA must notify the applicant of the following:

(a)

the number of specified units calculated under subsection (2)(a) that are required for surrender:

(b)

the number of specified units calculated under subsection (2)(b) that are required for surrender:

(c)

the number of specified units calculated under subsection (2)(b) that are required for repayment:

(d)

that the specified units will be deducted from the potential transfer units when they are transferred to the applicant, excluding any specified units that have already been surrendered or repaid by then.

(4)

The EPA must direct the Registrar to transfer—

(a)

the specified units required for surrender to a surrender account designated by the EPA; and

(b)

the specified units required for repayment to a Crown holding account designated by the EPA; and

(c)

any potential transfer units left after the specified units are deducted to the applicant’s holding account.

(5)

However, the Registrar, in transferring—

(a)

any units under subsection (4), must exclude any specified units that have already been surrendered or repaid by then:

(b)

any specified units under subsection (4)(a) or (b), may first transfer them to the applicant’s holding account and then immediately transfer them from that holding account.

(6)

The transfer of any specified units for surrender or repayment satisfies—

(a)

the applicant’s entitlement to be transferred those units; and

(b)

the applicant’s obligation to surrender or repay the related units.

(7)

To avoid doubt, the applicant remains liable to surrender or repay any units that are not counted as specified units (because they exceed the number of potential transfer units).

Section 86BC: inserted, on 23 June 2020, by section 91 of the Climate Change Response (Emissions Trading Reform) Amendment Act 2020 (2020 No 22).