This Bill amends the Land Transport Act 1998 to support the Clean Vehicle Standard (the Standard) in Part 13. The Standard is a central policy in transitioning the light vehicle fleet to be low- and ultimately zero-emission. The Standard sets annual targets that require light vehicle importers to progressively reduce the carbon dioxide emissions of the vehicles they import. Charges will apply if those targets are not met. The Bill enhances legislation to achieve a successful and smooth implementation of the Standard with—

a 6-month phase-in to give vehicle importers time to adjust to the Standard’s requirements and the online system run by the New Zealand Transport Agency:
a clarification to correct the inadvertent extension of the Standard’s carbon dioxide account and vehicle emissions data recording requirements to motorcycles and mopeds:
a technical correction to enable the waiver or refund of charges imposed on Category 2 light vehicle importers, and for unpaid charges to be recoverable as a debt due to the Crown.

Departmental disclosure statement

The Ministry of Transport is required to prepare a disclosure statement to assist with the scrutiny of this Bill. The disclosure statement provides access to information about the policy development of the Bill and identifies any significant or unusual legislative features of the Bill.

A copy of the statement can be found at http://legislation.govt.nz/disclosure.aspx?type=bill&subtype=government&year=2022&no=195

Regulatory impact statement

The Ministry of Transport produced a regulatory impact statement on 30 November 2019 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.

A copy of this regulatory impact statement can be found at—

Clause by clause analysis

Clause 1 is the Title clause.

Clause 2 is the commencement clause and provides for this Bill to come into force on the day after it receives the Royal assent.

Part 1Amendments to Land Transport Act 1988

Clause 3 identifies the Land Transport Act 1998 (the principal Act) as the Act being amended by Part 1 of the Bill.

Clause 4 amends section 167C of the principal Act, which is a section that empowers the making of regulations. The amendments insert references to section 182 of the principal Act, and will enable regulations to be made that—

authorise the waiver or refund of charges imposed on Category 2 light vehicle importers; and
provide for unpaid charges by category 2 light vehicle importers to be recoverable as a debt due to the Crown.

Clauses 5 to 7 amend sections 185, 187, and 189 of the principal Act. Those sections currently refer to light vehicles, which include motorcycles and mopeds. The amendments replace references to light vehicles with references to Type A or Type B vehicles (which do not include motorcycles and mopeds). The amendments will ensure that the requirements to open and hold carbon dioxide accounts, and to supply carbon dioxide account information, do not apply to importers of motorcycles and mopeds.

Clause 8 amends Schedule 1 of the principal Act to include new transitional provisions that have the effect of deferring until 1 June 2023—

the date on which charges for vehicles imported by category 2 light vehicle importers between 1 January 2023 and 31 May 2023 are payable; and
the date from which a light vehicle importer may transfer carbon dioxide credits in their carbon dioxide account to the account of another light vehicle importer.

Part 2Amendments to Land Transport (Clean Vehicle Standard) Regulations 2022

Clause 9 identifies the Land Transport (Clean Vehicle Standard) Regulations 2022 (the principal regulations) as the regulations being amended by Part 2 of the Bill.

Clause 10 amends regulation 14 of the principal regulations. The amendment will enable the Director of Land Transport (the Director) to offset any credits in the carbon dioxide account of a category 2 light vehicle importer who imports vehicles before 1 June 2023 against charges payable by the importer, before any transfer of those credits is effected. This is a transitional provision that will be revoked on 30 June 2023.

Clause 11 amends regulation 28 of the principal regulations. The amendment defers until 1 June 2023 the date by which certain information in the CVS system and record of carbon dioxide accounts must be made publicly available. This is a transitional provision that will be revoked on 30 June 2023.

Clause 12 amends regulation 31 of the principal regulations, which relates to the recovery of unpaid charges. The amendment will enable the Director to recover any unpaid charges under section 182 of the Land Transport Act 1998 as a debt due to the Crown.

Hon Michael Wood

Land Transport (Clean Vehicles) Amendment Bill (No 2)

Government Bill

195—1

	Explanatory note
1	Title
2	Commencement
	Part 1 Amendments to Land Transport Act 1988
3	Principal Act
4	Section 167C amended (Regulations for purposes of Part 13 (clean vehicle standard))
5	Section 185 amended (Vehicle importers must hold carbon dioxide accounts)
6	Section 187 amended (Carbon dioxide account information required for vehicle importation)
7	Section 189 amended (Opening carbon dioxide accounts)
8	Schedule 1 amended
	Part 2 Amendments to Land Transport (Clean Vehicle Standard) Regulations 2022
9	Principal regulations
10	Regulation 14 amended (How carbon dioxide accounts must be operated)
11	Regulation 28 amended (Certain information in CVS system and record of carbon dioxide accounts to be publicly available)
12	Regulation 31 amended (Recovery of unpaid charges)
	Schedule New Part 5 inserted into Schedule 1

The Parliament of New Zealand enacts as follows:

1 Title

This Act is the Land Transport (Clean Vehicles) Amendment Act (No 2) 2022.

2 Commencement

This Act comes into force on the day after the date on which it receives the Royal assent.

Part 1 Amendments to Land Transport Act 1988

3 Principal Act

This Part amends the Land Transport Act 1998.

4 Section 167C amended (Regulations for purposes of Part 13 (clean vehicle standard))

(1)

In section 167C(1)(n), after “section 177”, insert “or 182”.

(2)

In section 167C(1)(o), after “section 177”, insert “or 182”.

5 Section 185 amended (Vehicle importers must hold carbon dioxide accounts)

In section 185(1), replace “light vehicle” with “Type A or Type B vehicle”.

6 Section 187 amended (Carbon dioxide account information required for vehicle importation)

In section 187, replace “light vehicle” with “Type A or Type B vehicle”.

7 Section 189 amended (Opening carbon dioxide accounts)

In section 189(1), replace “light vehicle” with “Type A or Type B vehicle”.

8 Schedule 1 amended

In Schedule 1,—

(a)

insert the Part set out in the Schedule of this Act as the last Part; and

(b)

make all necessary consequential amendments.

Part 2 Amendments to Land Transport (Clean Vehicle Standard) Regulations 2022

9 Principal regulations

This Part amends the Land Transport (Clean Vehicle Standard) Regulations 2022.

10 Regulation 14 amended (How carbon dioxide accounts must be operated)

After regulation 14(4), insert:

(5)

Subclause (6) applies if a category 2 light vehicle importer imports vehicles in the period starting on 1 January 2023 and ending on 31 May 2023 (the period).

(6)

Before any transfer of credits in respect of vehicles imported in the period is effected under section 184 of the Act and regulation 17, the account holder must make the credits available for offsetting, and the Director may offset the credits against any charges payable by the importer in respect of other vehicles imported in the period.

(7)

Subclauses (5) and (6) and this subclause are revoked on 30 June 2023.

11 Regulation 28 amended (Certain information in CVS system and record of carbon dioxide accounts to be publicly available)

After regulation 28(2), insert:

(3)

Subclause (1) does not apply before 1 June 2023.

(4)

Before the information described in subclause (1) is made publicly available, any person who wishes to receive that information must apply to the Director via the Agency’s Internet site in accordance with regulation 29.

(5)

Subclauses (3) and (4) and this subclause are revoked on 30 June 2023.

12 Regulation 31 amended (Recovery of unpaid charges)

In regulation 31, replace “section 177” with “section 177 or 182”.

Schedule New Part 5 inserted into Schedule 1

s 8

Part 5 Provisions relating to Land Transport (Clean Vehicles) Amendment Act (No 2) 2022

22 Transitional provision applying to vehicles imported before 1 June 2023 by category 2 light vehicle importers

(1)

This clause applies if the carbon dioxide emissions of a vehicle that is imported in the period starting on 1 January 2023 and ending on 31 May 2023 by a category 2 light vehicle importer exceed the importer’s target that applies in respect of that vehicle.

(2)

For the purpose of paying any charge under section 182, the vehicle is deemed to be imported on 1 June 2023.

(3)

To avoid doubt, subclause (2) only affects the date on which a charge is payable, and does not affect any other obligations under this Act, including the information to be recorded in the vehicle importer’s carbon dioxide account.

23 Deferred date for transfer of credits under section 184

Despite sections 180(1) and (2) and 184(1) and (2), a light vehicle importer may not transfer carbon dioxide credits in their carbon dioxide account to the carbon dioxide account of another light vehicle importer before 1 June 2023.

Land Transport (Clean Vehicles) Amendment Bill (No 2)