Climate Change Response Act 2002

1: Title
This Act is the Climate Change Response Act 2002.
1: Preliminary provisions
2: Commencement
1: This Act comes into force on a date to be appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.
2: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 2(1) brought into force 1 August 2003 clause 2 Climate Change Response Act Commencement Order 2003 Section 2(1) brought into force 19 November 2007 clause 2 Climate Change Response Act Commencement Order 2007 Section 2(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
2A: Application of Schedules 3 and 4
1: Any provision in this Act that imposes an obligation on, or provides an entitlement to, a person in respect of an activity listed in Schedule 3 4
a: does not apply to that person unless the Part or subpart in Schedule 3 4
b: applies subject to sections 178A 178B
2: Part 1 Part 1
2A: Part 3
3: Part 2 Part 4
4: Subpart 1 of Part 3 subpart 1 subpart 1
5:
5A:
5B:
5C:
5D:
6:
7: Subpart 2 Part 6 subpart 3
7A: Part 1A
7B: Subpart 2
8: Part 1A of Schedule 4
9:
10:
11:
12:
13:
14: Subpart 2
14A: An order under this section is secondary legislation ( see Part 3
15:
16:
17:
18:
19: 2010-06-30 This section, sch 3 and 4 2012-12-31 This section, sch 3 and 4 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 2A inserted 26 September 2008 section 4 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 2A(1) replaced 26 November 2024 section 4(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 2A(2) amended 1 July 2013 section 4(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 2A(2A) inserted 1 July 2013 section 4(3) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 2A(3) amended 23 June 2020 section 4(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 2A(3) amended 1 January 2013 section 4(4) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 2A(4) amended 23 June 2020 section 4(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 2A(5) repealed 23 June 2020 section 4(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 2A(5A) repealed 26 November 2024 section 4(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 2A(5B) repealed 26 November 2024 section 4(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 2A(5C) repealed 26 November 2024 section 4(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 2A(5D) repealed 26 November 2024 section 4(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 2A(6) repealed 23 June 2020 section 4(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 2A(7A) inserted 1 January 2013 section 4(5) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 2A(7B) inserted 1 January 2013 section 4(5) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 2A(8) replaced 23 June 2020 section 4(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 2A(9) repealed 23 June 2020 section 4(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 2A(10) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(11) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(12) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(13) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(14A) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 2A(15) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(16) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(17) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(18) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 2A(19) repealed 8 December 2009 section 4(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
2B: Orders in Council in relation to subparts 2 and 4 of Part 5 of Schedule 3 (Agriculture)
Section 2B repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
2C: Effect of overlapping application of subparts of Part 5 of Schedule 3 (Agriculture)
Section 2C repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
3: Purpose
1: The purpose of this Act is to—
aa: provide a framework by which New Zealand can develop and implement clear and stable climate change policies that—
i: contribute to the global effort under the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels; and
ii: allow New Zealand to prepare for, and adapt to, the effects of climate change:
a: enable New Zealand to meet its international obligations under the Convention , the Protocol, and the Paris Agreement
i: its obligation under Article 3.1 of the Protocol to retire Kyoto units equal to the number of tonnes of carbon dioxide equivalent of human-induced greenhouse gases emitted from the sources listed in Annex A of the Protocol in New Zealand in the first commitment period starting on 1 January 2008 and ending on 31 December 2012
ii: its obligation to report to the Conference of the Parties via the Secretariat under Article 12 of the Convention, Article 7 of the Protocol, and Article 13 of the Paris Agreement
b: provide for the implementation, operation, and administration of a greenhouse gas emissions trading scheme in New Zealand that supports and encourages global efforts to reduce the emission of greenhouse gases by—
i: assisting New Zealand to meet its international obligations under the Convention , the Protocol, and the Paris Agreement
ii: assisting New Zealand to meet its 2050 target and emissions budgets:
c: provide for the imposition, operation, and administration of a levy on specified synthetic greenhouse gases contained in motor vehicles and also another levy on other goods to support and encourage global efforts to reduce the emission of those gases by—
i: assisting New Zealand to meet its international obligations under the Convention , the Protocol, and the Paris Agreement
ii: assisting New Zealand to meet its 2050 target and emissions budgets.
2:
2: A person who exercises a power or discretion, or carries out a duty, under this Act must exercise that power or discretion, or carry out that duty, in a manner that is consistent with the purpose of this Act.
3: Section 3(1) substituted 26 September 2008 section 5 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 3(1)(aa) inserted 14 November 2019 section 4 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 3(1)(a) amended 23 June 2020 section 6(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3(1)(a)(i) amended 23 June 2020 section 6(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3(1)(a)(ii) amended 23 June 2020 section 6(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3(1)(b) replaced 1 January 2013 section 5 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 3(1)(b)(i) amended 23 June 2020 section 6(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3(1)(b)(ii) replaced 23 June 2020 section 6(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3(1)(c) inserted 1 January 2013 section 5 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 3(1)(c)(i) amended 23 June 2020 section 6(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3(1)(c)(ii) replaced 23 June 2020 section 6(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3 first subsection (2) repealed 8 December 2009 section 6(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 3(3) repealed 23 June 2020 section 6(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
3A: Treaty of Waitangi (Te Tiriti o Waitangi)
In order to recognise and respect the Crown’s responsibility to give effect to the principles of the Treaty of Waitangi,—
a:
ab: with respect to section 5G
ac: with respect to section 5H
ad: with respect to sections 5ZG 5ZI
ae: with respect to section 5ZS
b: with respect to the following provisions (which relate to powers to make secondary legislation secondary legislation secondary legislation
i:
ii: section 30G(1)(b)(i), (c), (j), or (k) Part 2
iii: section 30GA
iv: section 30GB
v: section 30GD
vi: section 30M
via: section 30W(1)(a)
vii: section 60 Schedule 3
viii: section 60A
ix: section 84A 84B
x: section 161D(1)(a)
xa: section 161FA(6)
xi:
xii: section 162 Part 2
xiii: section 163
xiv: section 164
xv: section 168(1)(nb)
xva: section 180G
xvi: section 181W
xvia: section 190F
xvib: section 191I
xvic: section 192U
xvid: section 193R
xvii: section 194B
xviii: section 196F
xix: section 244
xx: section 246(1)(a) to (e)
xxi: section 258
c:
d: with respect to section 161
i: if the Minister initiates a review under section 160(1) 269(1) section 160(3) or 269(3)
ii: the review panel must consult with the representatives of iwi and Māori that appear to the panel likely to have an interest in the review; and
iii: the terms of reference for the review panel must incorporate reference to the principles of the Treaty of Waitangi.
e:
f:
g:
h:
i:
j: Section 3A inserted 8 December 2009 section 7 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 3A(a) repealed 23 June 2020 section 7(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(ab) inserted 14 November 2019 section 5 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 3A(ac) inserted 14 November 2019 section 5 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 3A(ad) inserted 14 November 2019 section 5 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 3A(ae) inserted 14 November 2019 section 5 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 3A(b) replaced 23 June 2020 section 7(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 3A(b)(i) repealed 26 November 2024 section 5 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 3A(b)(via) inserted 1 January 2021 section 209 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(viii) replaced 1 January 2023 section 233(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xa) inserted 25 August 2023 section 10 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 3A(b)(xi) repealed 26 November 2024 section 5 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 3A(b)(xva) inserted 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xvi) replaced 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xvia) inserted 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xvib) inserted 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xvic) inserted 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xvid) inserted 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(b)(xvii) replaced 1 January 2023 section 233(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(c) repealed 23 June 2020 section 7(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(d)(i) amended 1 January 2013 section 6 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 3A(e) repealed 23 June 2020 section 7(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(f) repealed 23 June 2020 section 7(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(g) repealed 23 June 2020 section 7(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(h) repealed 23 June 2020 section 7(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(i) repealed 23 June 2020 section 7(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3A(j) repealed 23 June 2020 section 7(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
3B: Consultation about certain regulations, orders, and notices
1: The Minister must comply with this section before making, or recommending the making of, secondary legislation
a: section 30G(1)(b)(i), (c), (j), or (k) Part 2
b: section 30GA
c: section 30GB
d: section 30GD
e: section 30M
ea: section 30W(1)(a)
f: section 60 Schedule 3
g: section 60A
h: section 84A 84B
i: section 161D(1)(a)
i: to require persons to provide electricity-related contracts or any information related to those contracts; or
ii: to provide the Minister with the information necessary to determine whether any matter should be considered by a review under section 160
ia: section 161FA(6)
j:
k: section 162 Part 2
l: section 163
m: section 164
n: section 168(1)(nb)
na: section 180G
o: section 181W
oa: section 190F
ob: section 191I
oc: section 192U
od: section 193R
p: section 194B
q: section 196F
r:
s:
t: section 244
u: section 246(1)(a) to (e)
v: section 258
2: The Minister must also comply with this section before recommending the revocation of an Order in Council under section 60 60A 244
3: The Minister must be satisfied that 1 of the following has consulted the persons (or representatives of those persons) that appear to the consulter likely to be substantially affected by any regulations made in accordance with the recommendation, by any order made or revoked in accordance with the recommendation, or by the notice:
a: the Minister or the chief executive; or
b: for regulations made under section 30GB 84A 84B
4: The process for consultation must, to the extent practicable in the circumstances, include—
a: adequate and appropriate notice of the proposed terms of the recommendation or notice, and of the reasons for it; and
b: a reasonable opportunity for consulted persons to consider the recommendation or notice and make submissions; and
c: adequate and appropriate consideration of submissions.
5: This section does not apply to regulations made under the following if the Minister considers it is in the national interest that the regulations be made urgently:
a: section 30G(1)(b)(i), (c), (j), or (k) Part 2
b: section 30GA
c: section 30GB
d: section 30GD
6: A failure to comply with this section does not affect the validity of any regulations, order, or notice to which it applies. Section 3B inserted 23 June 2020 section 8 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 3B(1)(ea) inserted 1 January 2021 section 210(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(g) replaced 1 January 2023 section 234(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(ia) inserted 25 August 2023 section 11 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 3B(1)(j) repealed 26 November 2024 section 6 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 3B(1)(na) inserted 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(o) replaced 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(oa) inserted 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(ob) inserted 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(oc) inserted 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(od) inserted 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(p) replaced 1 January 2023 section 234(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 3B(1)(r) repealed 26 November 2024 section 6 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 3B(1)(s) repealed 1 January 2021 section 210(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: Interpretation
1: In this Act, unless the context otherwise requires,— 2050 target section 5Q account number section 15(1) agency
a: in relation to the motor vehicle levy, the Registrar of Motor Vehicles; and
b: in relation to the goods levy, the chief executive of the New Zealand Customs Service allocate
a: means the allocation or provisional allocation of New Zealand units; but
b: does not include the transfer of New Zealand units annual financial statements of the Government section 2(1) approved overseas unit
a: issued (as defined by this section); and
b: prescribed as a unit that may be transferred to accounts in the Registry associated person auction section 6A biogenic methane cancel section 18CA(1) carbon accounting area
a: that—
i: is defined by a person who is registered, or has applied to register, as a participant under section 57
ii: meets any relevant criteria specified in regulations made under this Act; or
b: that is constituted as a carbon accounting area by a provision of this Act carbon accounting area (averaging) section 191B(2) carbon dioxide equivalent chief executive clear
a: in relation to a tree,—
i: includes—
A: felling, harvesting, burning, removing by mechanical means, spraying with a herbicide intended to kill the tree, or undertaking any other form of human activity that kills the tree; and
B: felling, burning, killing, uprooting, or destroying by a natural cause or event; but
ii: does not include pruning or thinning; and
b: in relation to land, means to clear (as defined in paragraph (a)) the forest species that are on the land clear-felled
a: of at least 1 hectare; and
b: on which any trees are cleared or killed by any form of human activity, including by felling, harvesting, burning, removing by mechanical means, or spraying with a herbicide intended to kill the tree; and
c: that, after that type of clearing or killing, has tree crown cover from forest species of 30% or less in each hectare Climate Change Commission Commission section 5A coal section 2(1) Conference of the Parties consolidated group section 150 constitution date
a: for a carbon accounting area that is defined in an application referred to in section 182C(1) section 57(8)
b: for a carbon accounting area that a participant applies to add under section 182C(3)
c: for any other carbon accounting area, the date on which a person becomes a participant in an activity in the carbon accounting area under a provision of Part 5 Convention
a: means the United Nations Framework Convention on Climate Change done at New York on 9 May 1992, a copy of the English text of which is set out in Schedule 1
b: includes any amendments made to the Convention that are, or will become, binding on New Zealand from time to time Crown conservation contract Part 3B Conservation Act 1987 Schedule 1 Crown holding account
a: means a holding account that is established and held by the Crown in accordance with a direction of the Minister of Finance under section 6
b: does not include a holding account opened by any other person on behalf of the Crown under section 18A Crown land section 2(1) deforest
a: means to convert forest land to land that is not forest land ( see section 180A
b: includes deforestation after forest land is cleared, where section 179 disposal facility
a: at which waste is disposed; and
b: at which the waste disposed includes waste from a household that is not entirely from construction, renovation, or demolition of a house; and
c: that operates, at least in part, as a business to dispose of waste; but
d: does not include a facility, or any part of a facility, at which waste is combusted for the purpose of generating electricity or industrial heat dispose
a: means—
i: the final or more than short-term deposit of waste into or onto land set apart for that purpose; or
ii: the incineration of waste by deliberately burning the waste to destroy it; but
b: does not include any deposit of biosolids for rehabilitation or other beneficial purposes document
a: any writing on any material:
b: any information recorded or stored by means of any tape recorder, computer, or any other device; and any material subsequently derived from information so recorded or stored:
c: any label, marking, or other writing that identifies or describes any thing of which it forms part, or to which it is attached by any means:
d: any book, map, plan, graph, or drawing:
e: any photograph, film, negative, tape, or other device in which 1 or more visual images are embodied so as to be capable (with or without the aid of some other equipment) of being reproduced electrical switchgear
a: controlling the distribution of electricity; or
b: controlling or protecting electrical circuits and electrical equipment; or
c: the transmission of electricity eligible industrial activity section 161A eligible person
a: section 80(1)
b: section 85(1)
c: any regulations made under this Act:
d: the pre-1990 forest land allocation plan emissions
a: in relation to Parts 1A 1B
b: in relation to an activity listed in Schedule 3 4 emissions budget emissions budget period section 5X(3) emissions reduction plan sections 5ZG to 5ZI emissions return
a: means—
i: an annual emissions return submitted under section 65
ii: a quarterly emissions return submitted under section 66
iii: a final emissions return submitted under section 118
iv: an emissions return submitted under a provision of Part 5 Schedule 1AA
b: includes the following as if they had been submitted in that form:
i: an emissions return as amended by the EPA under section 120
ii: the EPA’s assessment under section 121
c: includes an emissions return that shows nil liability emissions trading scheme section 3 entity
a: a reporting entity within the meaning of paragraph (a) of the definition of that term in section 5
b: a subsidiary (within the meaning of section 5 Environmental Protection Authority EPA section 7 ETS participant provisions Parts 4 to 5D exempt land
a: means pre-1990 forest land that has been declared to be exempt land—
i: under section 180B 180D
ii: under section 180E
b: does not include any forest land that met the definition in paragraph (a), but has been deforested, and in respect of which the number of units that would have been required to be surrendered in relation to an activity listed in Part 1 section 182A(2) exotic forest species export section 5(1) financial year section 2(1) first rotation forest section 191C(3) and (4) Food Standards Code section 4(1) forest land
a: means an area of land of at least 1 hectare that has, or is likely
b: includes an area of land that temporarily does not meet the requirements specified in paragraph (a) because of human intervention or natural causes but that is likely to revert to land that meets the requirements specified in paragraph (a); but
c: does not include—
i: a shelter belt of forest species, where the tree crown cover
ii: an area of land where the forest species have, or are likely to have, a tree crown cover forest sink covenant section 67ZD forest species located, but does not include tree species grown or managed primarily for the production of fruit or nut crops forestry activity
a: an activity listed in Part 1 1A
b: an activity listed in Part 1 1A forestry classification section 196 fugitive coal seam gas general cancellation account goods goods levy section 227(1)(b) greenhouse gas
a: carbon dioxide (CO 2
b: methane (CH 4
c: nitrous oxide (N 2
d: any hydrofluorocarbon:
e: any perfluorocarbon:
f: sulphur hexafluoride (SF 6 gross emissions group section 5 holding account import section 5(1) importer section 5(1) indigenous forest species indirect greenhouse gas
a: means a gas that—
i: reacts with other gases to form a greenhouse gas; or
ii: changes the chemistry of the atmosphere in a way that increases the lifetime of other greenhouse gases; and
b: includes, but is not limited to, carbon monoxide, nitrogen oxides, non-methane volatile organic compounds, and sulphur dioxide industrial or trade premises international climate change obligations international transaction body issued
a: issued by an overseas registry; or
b: issued in another way and approved by an international transaction body inventory agency landowner
a: in relation to Crown land, means the appropriate Minister (as that term is defined in section 2A
b: in relation to land other than Crown land, means—
i: the legal owner of a freehold estate in the land; or
ii: if the land is Maori customary land (as defined in section 4 Te Ture Whenua Maori Act 1993
iii: if the land is Maori freehold land (as defined in section 4 leviable goods leviable motor vehicle levy year local authority Local Government Act 2002 mandatory emissions return period
a: the first commitment period starting on 1 January 2008 and ending on 31 December 2012:
b: the 5-year period starting on 1 January 2013 and ending on 31 December 2017:
c: the 5-year period starting on 1 January 2018 and ending on 31 December 2022:
d: the 3-year period starting on 1 January 2023 and ending on 31 December 2025:
e: the 5-year period starting on 1 January 2026 and ending on 31 December 2030:
f: each consecutive 5-year period after that Maori land section 4 member merchantable timber
a: the stump; and
b: wood that is decayed or grossly distorted; and
c: wood that is less than 10 centimetres in diameter, excluding the bark mining section 2(1) Minister motor vehicle section 2(1) motor vehicle levy section 227(1)(a) natural gas
a: all gaseous hydrocarbons produced from wells, including wet gas and residual gas remaining after the extraction of condensate from wet gas; and
b: liquid hydrocarbons, other than condensate, extracted from wet gas and sold as natural gas liquids, for example, liquid petroleum gas; and
c: coal seam gas net accounting emissions
a: removals, including from land use, land-use change, and forestry (as reported in the New Zealand Greenhouse Gas Inventory); and
b: offshore mitigation New Zealand Greenhouse Gas Inventory section 32(1) New Zealand unit nominated entity section 150(4)(b) 152(3)(b) obligation fuel obligation jet fuel offshore mitigation
a: that originate from outside New Zealand; and
b: that are expressed as a quantity of carbon dioxide equivalent; and
c: that are robustly accounted for to ensure that, among other things, double counting is avoided; and
d: that either—
i: represent an actual additional, measurable, and verifiable reduction or removal of an amount of carbon dioxide equivalent; or
ii: are an emissions trading scheme allowance that triggers the reduction of carbon dioxide equivalent operating ordinary hours of business overseas registry Paris Agreement
a: means the Paris Agreement done at Paris on 12 December 2015, a copy of the English text of which is set out in Schedule 2A
b: includes any amendments made to the Paris Agreement that are, or will become, binding on New Zealand from time to time participant section 54 performance permanent forestry section 182 post-1989 forest land
a: is one of the following:
i: land that was not forest land on 31 December 1989:
ii: land that was forest land on 31 December 1989 but was deforested in the period beginning on 1 January 1990 and ending on 31 December 2007:
iii: land that was pre-1990 forest land, other than exempt land,—
A: that was deforested on or after 1 January 2008; and
B: in respect of which any liability to surrender units arising in relation to an activity listed in Part 1
iv: land—
A: that was pre-1990 forest land that was the subject of a P90 offset application; and
B: that ceased to be forest land while section 179A(1)(b)
C: in respect of which a liability to surrender units arose under section 181D section 181N(3) but only if that liability has been satisfied:
v: land that was P90 offsetting land Part 1A
vi: land that was exempt land—
A: that has been deforested; and
B: in respect of which the number of units that would have been required to be surrendered in relation to an activity listed in Part 1 section 182A(2)
vii: land that was exempt land that has been deforested more than 8 years ago; and
b: is not area 1 (approved) land (as defined in section 181 pre-1990 forest land
a: is either of the following:
i: land—
A: that was forest land on 31 December 1989; and
B: that remained as forest land on 31 December 2007 (taking into account subsection (5)); and
C: where the forest species on the forest land on 31 December 2007 consisted predominantly of exotic forest species; or
ii: land that has become pre-1990 forest land under section 181T
b: is not either of the following:
i: land that has been deforested and in respect of which any liability to surrender units arising in respect of an activity listed in Part 1
ii: land that was declared to be exempt land and has been deforested, and in respect of which the number of units that would have been required to be surrendered in respect of an activity listed in Part 1 section 182A(2)(b) pre-1990 forest land allocation plan section 70 primary representative Part 2 production land Protocol
a: means the Protocol to the United Nations Framework Convention on Climate Change done at Kyoto on 11 December 1997, a copy of the English text of which is set out in Schedule 2
b: includes any amendments made to the Protocol that are, or will become, binding on New Zealand from time to time provisional allocation section 81 public notice publicly available recover
a: means the extraction of materials or energy from waste for further use or processing; and
b: includes making waste into compost recycle registered
a: in relation to a motor vehicle, has the same meaning as in section 2(1)
b: otherwise means registered in accordance with this Act registered forestry right Forestry Rights Registration Act 1983 registered lease
a: in relation to a lease in respect of land registered under the Land Transfer Act 2017
b: in relation to a lease in respect of land that is not registered under the Land Transfer Act 2017 Deeds Registration Act 1908 Registrar section 11 Registrar of Motor Vehicles section 233(1) Registry section 10 removal activity
a: an activity of standard forestry or permanent forestry (on post-1989 forest land); or
b: an activity that is listed in Part 2 removals
a: in relation to a removal activity, means carbon dioxide equivalent greenhouse gases that are, as a result of the removal activity,—
i: removed from the atmosphere; or
ii: not released into the atmosphere; or
iii: a reduction from emissions reported in—
A: New Zealand’s annual inventory report under section 32
B: any emissions report from New Zealand under a successor international agreement; and
b: in Part 1B reuse Secretariat sink activity
a: an activity under Article 3.3 of the Protocol; or
b: an elected activity under Article 3.4 of the Protocol solid biofuel specified synthetic greenhouse gas section 246(1)(a) standard forestry section 182 subsequent rotation forest section 191C(6) surrender section 18CA(2) surrender account synthetic greenhouse gas
a: a hydrofluorocarbon; or
b: a perfluorocarbon synthetic greenhouse gas levy levy section 227 temporary adverse event land section 193(1) the Customs section 5(1) tree weed a forest species
a: a pest in a pest management strategy under the Biosecurity Act 1993
b: a tree weed in regulations made under this Act tree weed spread unincorporated body
a: means an unincorporated body of persons; and
b: includes (but is not limited to)—
i: a partnership, a joint venture, or the trustees of a trust; and
ii: if land, a lease, a forestry right, or a Crown conservation contract is not owned, held, or entered into by a partnership, joint venture, or the trustees of a trust, 3 or more joint—
A: landowners; or
B: leaseholders; or
C: holders of a registered forestry right; or
D: parties to a Crown conservation contract; but
c: does not, unless they are partners, joint venturers, or trustees of a trust, include 2 joint—
i: landowners; or
ii: leaseholders; or
iii: holders of a registered forestry right; or
iv: parties to a Crown conservation contract unit waste
a: including (but not limited to) any disposed of or discarded thing that is defined by its composition or source (for example, organic waste, electronic waste, or construction and demolition waste); but
b: excluding any solid biofuel combusted for the purposes of generating electricity or industrial heat year
2: Terms and expressions used and not defined in this Act but defined in the Convention , the Protocol, or the Paris Agreement , the Protocol, or the Paris Agreement
3: A person is an associated person
a: each person is a body corporate and each of the bodies corporate—
i: consist substantially of the same members or shareholders; or
ii: are under the control of the same persons; or
b: any of the bodies corporate—
i: has the power, directly or indirectly, to exercise, or control the exercise of, 25% or more of the voting power at a meeting of the other; or
ii: is able to appoint or control 25% or more of the governing body of the other.
4: For the purposes of the definition of dispose, a deposit of waste is short-term if, not later than 6 months after the deposit (or any later time that the chief executive has agreed to in writing), the waste is—
a: reused or recycled; or
b: recovered; or
c: removed from the land for any other reason.
5: Despite anything in this Act, a hectare of land is not to be treated as pre-1990 forest land if,—
a: on 1 January 2008, the land had—
i: no standing exotic forest species (dead or alive), other than a strip of standing exotic forest species that had, or was likely to have, tree crown cover of an average width of less than 30 metres; and
ii: no other merchantable timber from exotic forest species; and
b: 4 years after the date on which the land met the conditions in paragraph (a), it is not forest land and no allocation has been made in respect of the land under the pre-1990 forest land allocation plan.
6: For the purposes of a provision of this Act that relates to a participant who submits an emissions return that shows nil liability, activity activities Schedule 3 4
7: For the purposes of the definition of landowner in relation to the activity listed in Part 1 land A land B
a: land A and land B are held under different trusts; and
b: each trust has the same trustee or trustees; and
c: the trustees hold land A and land B in their capacity as professional trustees (as defined in section 180B(7) Section 4(1) 2050 target inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) account number inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) account number amended 23 June 2020 section 9(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) agency inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) allocate inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) allocation plan repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) animal material repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) animal product repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) animal welfare export certificate repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) annual financial statements of the Government inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) approved overseas unit replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) assigned amount unit repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) associated person inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) auction inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Australian eligible industrial activity repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) biogenic methane inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) cancel substituted 26 September 2008 section 6(4) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) carbon accounting area replaced 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) carbon accounting area (averaging) inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) carbon dioxide equivalent replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) carbon equivalence repealed 1 January 2023 section 235(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) carry-over repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) CDM registry repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) certified emission reduction unit repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) chief executive substituted 5 December 2011 section 4(1) Climate Change Response Amendment Act 2011 Section 4(1) chief executive responsible for the administration of this Act repealed 5 December 2011 section 4(1) Climate Change Response Amendment Act 2011 Section 4(1) clean development mechanism project repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) clear replaced 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) clear-felled inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Climate Change Commission Commission inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) coal inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) commitment period repealed 1 August 2003 section 5(3) Climate Change Response Amendment Act 2006 Section 4(1) commitment period reserve repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) consolidated group inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) constitution date inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Convention substituted 8 December 2009 section 8(5) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) conversion account repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) convert repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Crown conservation contract inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) Crown holding account inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) Crown land inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) dairy processing repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) deforest replaced 1 January 2021 section 211 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) deforest amended 1 January 2023 section 235(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) designated operational entity repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) disposal facility inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) dispose inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) document inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) draft allocation plan repealed 8 December 2009 section 8(6) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) elect repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) electrical switchgear inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) eligible activity repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) eligible agricultural activity repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) eligible industrial activity inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) eligible land repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) eligible person inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) eligible person replaced 23 June 2020 section 9(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) emission reduction unit repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) emissions replaced 14 November 2019 section 6(2) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) emissions budget inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) emissions budget period replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) emissions reduction plan inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) emissions return replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) emissions trading scheme inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) entity replaced 28 October 2021 section 55(1) Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 Section 4(1) Environmental Protection Authority EPA inserted 5 December 2011 section 4(2) Climate Change Response Amendment Act 2011 Section 4(1) ETS participant provisions inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) executive board repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) exempt land replaced 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) exotic forest species inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) expire expiry repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) export inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) export amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 4(1) farm dairy repealed 26 November 2024 section 7 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 4(1) financial year inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) first commitment period repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) first rotation forest inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) fishing allocation plan repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Food Standards Code inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) forest land inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) forest land amended 8 December 2009 section 8(7) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) forest land amended 8 December 2009 section 8(8) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) forest land amended 8 December 2009 section 8(9) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) forest sink covenant inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) forest species inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) forest species amended 8 December 2009 section 8(10) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) forestry activity replaced 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) forestry classification inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) fugitive coal seam gas inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) general cancellation account amended 23 June 2020 section 9(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) goods inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) goods levy inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) greenhouse gas replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) gross emissions inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) group replaced 1 April 2014 section 126 Financial Reporting (Amendments to Other Enactments) Act 2013 Section 4(1) holding account amended 23 June 2020 section 9(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) holding account amended 1 August 2003 section 5(1)(c) Climate Change Response Amendment Act 2006 Section 4(1) import inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) import amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 4(1) importer inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) importer amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 4(1) independent transaction log repealed 26 September 2008 section 6(12) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) indigenous forest species inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) initial assigned amount repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) international climate change obligations inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) international transaction body inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) international transaction log repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) inventory agency substituted 5 December 2011 section 4(3) Climate Change Response Amendment Act 2011 Section 4(1) issued inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) joint implementation project repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Kyoto units repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) landowner inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) landowner amended 24 May 2013 section 65 Crown Minerals Amendment Act 2013 Section 4(1) leviable goods inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) leviable motor vehicle inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) levy year inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) local authority substituted 1 July 2003 section 262 Local Government Act 2002 Section 4(1) long-term certified emission reduction replacement account repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) long-term certified emission reduction unit repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) mandatory emissions return period inserted 23 June 2020 section 9(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Maori land inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) member inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) merchantable timber inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) mining inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) Minister substituted 5 December 2011 section 4(4) Climate Change Response Amendment Act 2011 Section 4(1) Minister responsible for the administration of this Act repealed 5 December 2011 section 4(4) Climate Change Response Amendment Act 2011 Section 4(1) Minister responsible for the inventory agency repealed 26 September 2008 section 6(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) Minister responsible for the Registry repealed 26 September 2008 section 6(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) motor vehicle inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) motor vehicle levy inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) natural gas inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) net accounting emissions inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) New Zealand Customs Service the Customs repealed 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 4(1) New Zealand Greenhouse Gas Inventory replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) New Zealand unit inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) nominated entity inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) non-compliance cancellation account repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) obligation fuel inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) obligation jet fuel inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) offsetting forest land repealed 1 January 2023 section 235(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) offshore mitigation inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) operating inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) overseas registry replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) Paris Agreement replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) participant inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) Party repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) permanent forestry inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) post-1989 forest land replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) post-1989 forest land replaced 1 January 2023 section 235(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) post-1989 forest land amended 1 January 2023 section 235(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) post-1989 forest land amended 1 January 2023 section 235(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) post-1989 forest land replaced 1 January 2023 section 235(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) pre-1990 forest land replaced 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) pre-1990 forest land allocation plan replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) pre-1990 offsetting forest land repealed 1 January 2023 section 235(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) previous commitment period repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) primary representative inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) Protocol substituted 8 December 2009 section 8(12) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) provisional allocation inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) public notice inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) publicly available inserted 14 November 2019 section 6(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) recover inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) recycle inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) registered inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) registered forestry right inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) registered lease replaced 12 November 2018 section 250 Land Transfer Act 2017 Section 4(1) Registrar inserted 5 December 2011 section 4(2) Climate Change Response Amendment Act 2011 Section 4(1) Registrar of Motor Vehicles inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) relevant commitment period repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) removal activity replaced 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) removal unit repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) removals replaced 14 November 2019 section 6(3) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 4(1) representative identifier repealed 26 September 2008 section 6(19) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) retire repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) retirement account repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) reuse inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) sink cancellation account repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) solid biofuel inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) specified synthetic greenhouse gas inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) standard forestry inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) subsequent commitment period repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) subsequent rotation forest inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) supervisory committee repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) surrender inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) surrender amended 23 June 2020 section 9(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) surrender account inserted 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(1) synthetic greenhouse gas inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) synthetic greenhouse gas levy levy inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) temporary adverse event land inserted 1 January 2023 section 235(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) temporary certified emission reduction replacement account repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) temporary certified emission reduction unit repealed 23 June 2020 section 9(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) the Customs inserted 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 4(1) tree weed inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) tree weed amended 1 January 2023 section 235(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) tree weed spread inserted 1 January 2013 section 7(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(1) unincorporated body inserted 8 December 2009 section 8(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) unit replaced 23 June 2020 section 9(1), (2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) usual rotation period repealed 1 January 2023 section 235(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(1) waste substituted 8 December 2009 section 8(13) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(1) year added 26 September 2008 section 6(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(2) amended 23 June 2020 section 9(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(3) added 26 September 2008 section 6(24) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(4) added 26 September 2008 section 6(24) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 4(5) substituted 8 December 2009 section 8(14) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 4(6) inserted 1 January 2013 section 7(5) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(6) amended 23 June 2020 section 9(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4(7) inserted 1 January 2013 section 7(5) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 4(7)(c) amended 1 January 2023 section 235(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4AA: Greenhouse gas definition may be amended to add gases
1: The Governor-General may, by Order in Council made on the recommendation of the Minister,—
a: amend the definition of greenhouse gas in section 4
b: if necessary, amend Schedule 1AA
2: The Minister must not recommend the making of an order unless the Minister is satisfied that New Zealand has international climate change obligations in relation to the additional gas or gases.
3: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 4AA inserted 23 June 2020 section 10 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 4AA(3) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
4A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA Section 4A inserted 14 November 2019 section 7 Climate Change Response (Zero Carbon) Amendment Act 2019
5: Act binds the Crown
This Act binds the Crown.
1A: Climate Change Commission
Part 1A inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
1: Establishment and appointments
Subpart 1 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5A: Climate Change Commission established
The Climate Change Commission is established. Section 5A inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5B: Purposes of Commission
The purposes of the Commission are—
a: to provide independent, expert advice to the Government on mitigating climate change (including through reducing emissions of greenhouse gases) and adapting to the effects of climate change; and
b: to monitor and review the Government’s progress towards its emissions reduction and adaptation goals. Section 5B inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5C: Commission is Crown entity
1: The Commission is a Crown entity for the purposes of the Crown Entities Act 2004
2: The Crown Entities Act 2004 Section 5C inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5D: Membership of Commission
1: The Commission consists of—
a: a Chairperson:
b: a Deputy Chairperson:
c: no fewer than 3, and no more than 7, other members.
2: The members of the Commission are a board for the purposes of the Crown Entities Act 2004 Section 5D inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5D(1)(c) replaced 23 June 2020 section 11 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5E: Process for appointment of members of Commission
1: The Minister may recommend to the Governor-General that a person be appointed a member of the Commission if—
a: the person has been nominated by the nominating committee; and
b: the Minister has had regard to the matters in section 5H
c: the Minister has consulted representatives of all political parties in Parliament.
2: The Minister may, at any time, recommend to the Governor-General that a current member of the Commission be appointed to the position of Chairperson or Deputy Chairperson of the Commission. Section 5E inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5F: Establishment and membership of nominating committee
1: The Minister must establish a committee to nominate candidates to the Minister for appointment as members of the Commission.
2: The nominating committee must comprise—
a: the Chairperson of the Commission; and
b: 4 or more other people who, in the opinion of the Minister, have the relevant skills or experience to identify suitably qualified candidates.
3: If the position of Chairperson is vacant, the nominating committee must comprise 5 or more people who, in the opinion of the Minister, have the relevant skills or experience to identify suitably qualified candidates. Section 5F inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5G: Role of nominating committee
1: On request of the Minister, the nominating committee must nominate 1 or more people who, in the opinion of the committee, are suitably qualified to be appointed to be members of the Commission.
2: Before nominating a person for appointment, the nominating committee must—
a: publicly call for expressions of interest in being appointed; and
b: consult any person or group who may have an interest in being a member of the Commission, including—
i: iwi and Māori representative organisations; and
ii: any person or group that the Minister has identified as having an interest. Section 5G inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5H: Matters Minister must have regard to before recommending appointment of member of Commission
1: Before recommending the appointment of a member of the Commission, the Minister must have regard to the need for the Commission to have members who, collectively, have—
a: an understanding of climate change mitigation and adaptation, including the likely effects of any responses to climate change; and
b: experience working in or with local and central government; and
c: knowledge of the process by which public and regulatory policy is formed and given effect to; and
d: technical and professional skills, experience, and expertise in, and an understanding of innovative approaches relevant to,—
i: the environmental, ecological, social, economic, and distributional effects of climate change and climate change policy interventions; and
ii: the Treaty of Waitangi (Te Tiriti o Waitangi) and te ao Māori (including tikanga Māori, te reo Māori, mātauranga Māori, and Māori economic activity); and
iii: a range of sectors and industries, at regional and local levels.
2: In this section,— mātauranga Māori te ao Māori te reo Māori tikanga Māori Section 5H inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5I: Members’ term of office
In recommending the appointment of a member of the Commission, the Minister must recommend a term of office that ensures that no more than 2 members have their terms of office expire in any calendar year. Section 5I inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
2: Commission’s functions, duties, and powers
Subpart 2 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5J: Commission’s functions
The functions of the Commission are—
a: to review the 2050 target and, if necessary, recommend changes to the target ( see sections 5R to 5T
b: to provide advice to the Minister to enable the preparation of emissions budgets ( see section 5ZA
c: to recommend any necessary amendments to emissions budgets ( see section 5ZE
d: to provide advice to the Minister about the quantity of emissions that may be banked or borrowed between 2 adjacent emissions budget periods ( see section 5ZF
e: to provide advice to the Minister to enable the preparation of an emissions reduction plan ( see section 5ZH
f: to monitor and report on progress towards meeting emissions budgets and the 2050 target ( see sections 5ZJ to 5ZL
fa: to make recommendations to the Minister about limits and price control settings for units ( see section 5ZOA
fb: to make recommendations to the Minister about decreased or increased phase-out rates ( see section 5ZOB
g: to prepare national climate change risk assessments ( see section 5ZQ
h: to prepare reports on the implementation of the national adaptation plan ( see section 5ZU
ha:
i: to provide other reports requested by the Minister ( see section 5K Section 5J inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5J(fa) inserted 23 June 2020 section 12(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 5J(fb) inserted 23 June 2020 section 12(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 5J(ha) repealed 26 November 2024 section 8 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
5K: Reports to Government
1: The Minister may, at any time, request that the Commission prepare reports to the Government on matters related to reducing emissions of greenhouse gases and adapting to the effects of climate change.
2: Before making a request, the Minister must consult the Commission about the terms of reference for the requested report, which may, without limitation, specify—
a: the scope of the report; and
b: requirements concerning consultation; and
c: matters relating to the Commission working jointly with other agencies (including overseas agencies) concerned with the subject matter of the report; and
d: the date by which the Commission must submit its report to the Minister.
3: On receiving a request from the Minister, the Commission must,—
a: as soon as practicable, make the terms of reference publicly available; and
b: prepare a report in accordance with the terms of reference; and
c: provide the report to the Minister. Section 5K inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5L: Tabling and publication of Commission’s reports
1: This section applies in respect of a document (such as advice, a report, a recommendation, or an assessment) provided to the Minister by the Commission under this Act.
2: The Minister must present a copy of the document to the House of Representatives by the later of—
a: 10 working days after the document is provided to the Minister; and
b: if Parliament is not in session during the 10 working days after the document is provided to the Minister, as soon as practicable after the commencement of the next session of Parliament.
3: The Commission must make the document publicly available as soon as practicable after it is presented to the House of Representatives, but no later than 20 working days after providing it to the Minister (even if the document has not been presented to the House by that date). Section 5L inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5M: Matters Commission must consider
In performing its functions and duties and exercising its powers under this Act, the Commission must consider, where relevant,—
a: current available scientific knowledge; and
b: existing technology and anticipated technological developments, including the costs and benefits of early adoption of these in New Zealand; and
c: the likely economic effects; and
d: social, cultural, environmental, and ecological circumstances, including differences between sectors and regions; and
e: the distribution of benefits, costs, and risks between generations; and
f: the Crown-Māori relationship, te ao Māori (as defined in section 5H(2)
g: responses to climate change taken or planned by parties to the Paris Agreement or to the Convention. Section 5M inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5N: Consultation
1: In performing its functions and duties and exercising its powers under this Act, the Commission must—
a: proactively engage with persons the Commission considers relevant to the functions, duties, and powers; and
b: where the Commission considers it is necessary, provide for participation by the public.
2: The Commission may—
a: make publicly available, and invite submissions on, discussion papers and draft reports; and
b: undertake any other type of consultation that it considers necessary for the performance of its functions and duties under this Act. Section 5N inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5N(2)(a) replaced 23 June 2020 section 13 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5O: Commission must act independently
1: The Commission must act independently in performing its functions and duties and exercising its powers under this Act.
2: However, the Minister may direct the Commission to have regard to Government policy for the purposes of the Commission—
a: recommending unit supply settings of the New Zealand emissions trading scheme; and
b: providing advice about New Zealand’s nationally determined contributions under the Paris Agreement (in a report requested under section 5K Section 5O inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5P: Obligation to maintain confidentiality
1: The Commission must keep confidential all information that is disclosed to it under section 99(2)(b)(iiib)
2: The Commission must not disclose the information, except—
a: with the consent of the person to whom the information relates or of the person to whom the information is confidential; or
b: to the extent that the information is already in the public domain; or
c: for the purposes of, or in connection with, reporting requirements of the Public Finance Act 1989
d: as provided under this Act or any other Act; or
e: in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act.
3: A person who knowingly fails to comply with this section commits an offence under section 130 Section 5P inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
1B: Emission reduction
Part 1B inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
1: 2050 target
Subpart 1 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5Q: Target for 2050
1: The target for emissions reduction (the 2050 target
a: net accounting emissions of greenhouse gases in a calendar year, other than biogenic methane, are zero by the calendar year beginning on 1 January 2050 and for each subsequent calendar year; and
b: emissions of biogenic methane in a calendar year—
i: are 10% less than 2017 emissions by the calendar year beginning on 1 January 2030; and
ii: are 24% to 47% less than 2017 emissions by the calendar year beginning on 1 January 2050 and for each subsequent calendar year.
2: The 2050 target will be met if emissions reductions meet or exceed those required by the target.
3: In this section, 2017 emissions Section 5Q inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5R: Review of inclusion of emissions from international shipping and aviation in 2050 target
The Commission must, no later than 31 December 2024, provide written advice to the Minister on whether the 2050 target should be amended to include emissions from international shipping and aviation (and, if so, how the target should be amended). Section 5R inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5S: Other 2050 target reviews
1: The Commission must review the 2050 target—
a: when preparing advice under section 5ZA
b: at any other time the Minister requests a review.
2: The Commission must advise the Minister in writing of the outcome of any review, including any recommendations made in accordance with section 5T
a: at the same time as giving advice to the Minister on setting an emissions budget (in the case of a review required under subsection (1)(a)); or
b: as soon as practicable following completion of the review (in the case of a review requested by the Minister). Section 5S inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5T: Recommendations to amend 2050 target
1: As a result of a review under section 5S
a: the time frame for achievement of the 2050 target (or part of the target):
b: the levels of emission reductions required by the 2050 target (or part of the target):
c: the greenhouse gases, emissions, and removals to which the 2050 target (or part of the target) applies:
d: how the 2050 target (or part of the target) may be met, including limits on removals and offshore mitigation.
2: The Commission may recommend a change to the 2050 target only if—
a: significant change has occurred, or is likely to occur, since the commencement of this section to 1 or more of the following, as they relate to climate change:
i: global action:
ii: scientific understanding of climate change:
iii: New Zealand’s economic or fiscal circumstances:
iv: New Zealand’s obligations under relevant international agreements:
v: technological developments:
vi: distributional impacts:
vii: equity implications (including generational equity):
viii: the principal risks and uncertainties associated with emissions reductions and removals:
ix: social, cultural, environmental, and ecological circumstances; and
b: the Commission is satisfied that the significant change justifies the change to the target. Section 5T inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5U: Government response to target review recommendations
1: Within 12 months after receiving a recommendation to amend the 2050 target under section 5R 5T
2: The response must include reasons for any departure from the Commission’s recommendation.
3: The Minister must make the response publicly available and present a copy to the House of Representatives as soon as practicable, but no later than 10 working days after it has been provided to the Commission. Section 5U inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
2: Setting emissions budgets
Subpart 2 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5V: Interpretation
In this subpart and subparts 3 4 advice banked section 5ZF(1) borrowed section 5ZF(3) Section 5V inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5W: Purpose of this subpart
The purpose of this subpart and subparts 3 4
a: with a view to meeting the 2050 target and contributing to the global effort under the Paris Agreement to limit the global average temperature increase to 1.5° Celsius above pre-industrial levels; and
b: in a way that allows those budgets to be met domestically; and
c: that provides greater predictability for all those affected, including households, businesses, and investors, by giving advance information on the emissions reductions and removals that will be required. Section 5W inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5X: Duty of Minister to set emissions budgets and ensure they are met
1: The Minister must set an emissions budget for each emissions budget period in accordance with this subpart.
2: From 31 May 2022
3: An emissions budget must be set and notified in the Gazette section 5ZD
a: for the emissions budget period 2022 to 2025, by 31 May 2022
b: for the emissions budget period 2026 to 2030, by 31 May 2022
c: for the emissions budget period 2031 to 2035, by 31 May 2022
d: for the emissions budget period 2036 to 2040, by 31 December 2025:
e: for the emissions budget period 2041 to 2045, by 31 December 2030:
f: for the emissions budget period 2046 to 2050, by 31 December 2035:
g: for any subsequent emissions budget period, by 31 December not less than 10 years before that emissions budget period commences.
4: The Minister must ensure that the net accounting emissions do not exceed the emissions budget for the relevant emissions budget period.
5: To avoid doubt, the emissions budget for the first emissions budget period applies to that whole period, commencing on 1 January 2022, even if it is set and notified after that. Section 5X inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5X(2) amended 3 November 2021 clause 2(1) COVID-19 Response (Management Measures) Legislation Act 2021 Section 5X(3)(a) amended 3 November 2021 clause 2(2) COVID-19 Response (Management Measures) Legislation Act 2021 Section 5X(3)(b) amended 3 November 2021 clause 2(2) COVID-19 Response (Management Measures) Legislation Act 2021 Section 5X(3)(c) amended 3 November 2021 clause 2(2) COVID-19 Response (Management Measures) Legislation Act 2021 Section 5X(5) inserted 3 November 2021 clause 2(3) COVID-19 Response (Management Measures) Legislation Act 2021
5Y: Contents of emissions budgets
1: Each emissions budget must state the total emissions that will be permitted for the relevant emissions budget period, expressed as a net quantity of carbon dioxide equivalent.
2: Each emissions budget must include all greenhouse gases. Section 5Y inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5Z: How emissions budgets are to be met
1: Emissions budgets must be met, as far as possible, through domestic emissions reductions and domestic removals.
2: However, offshore mitigation may be used if there has been a significant change of circumstance—
a: that affects the considerations on which the relevant emissions budget was based; and
b: that affects the ability to meet the relevant emissions budget domestically. Section 5Z inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
3: Role of Commission to advise on emissions budgets
Subpart 3 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZA: Commission to advise Minister
1: The Commission must advise the Minister on the following matters relevant to setting an emissions budget:
a: the recommended quantity of emissions that will be permitted in each emissions budget period; and
b: the rules that will apply to measure progress towards meeting emissions budgets and the 2050 target; and
c: how the emissions budgets, and ultimately the 2050 target, may realistically be met, including by pricing and policy methods; and
d: the proportions of an emissions budget that will be met by domestic emissions reductions and domestic removals, and the amount by which emissions of each greenhouse gas should be reduced to meet the relevant emissions budget and the 2050 target; and
e: the appropriate limit on offshore mitigation that may be used to meet an emissions budget, and an explanation of the circumstances that justify the use of offshore mitigation ( see section 5Z
2: In preparing advice for the Minister under subsection (1), the Commission must have regard to the matters set out in section 5ZC
3: Before the Commission provides advice to the Minister on an emissions budget, it must—
a: make the proposed advice publicly available and invite comments on that advice; and
b: allow adequate time and opportunity for any submissions to be received, heard, and considered by the Commission.
4: The Commission must provide its advice to the Minister,—
a: in the case of the first 3 emissions budgets, no later than—
i: 1 February 2021; or
ii: after a request by the Commission to extend the deadline, any date on or before 1 August 2021 that is specified by the Minister (whether once or more) by notice in the Gazette
b: in the case of all subsequent emissions budgets, at least 12 months before an emissions budget must be notified under section 5ZD Section 5ZA inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZA(4)(a) replaced 23 June 2020 section 14 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5ZB: Minister’s response to Commission
1: Before the Minister sets an emissions budget, the Minister must be satisfied that there has been adequate consultation.
2: If the Minister is not satisfied that there has been adequate consultation, the Minister must—
a: make the proposed emissions budget publicly available; and
b: allow adequate time and opportunity for any submissions to be received, heard, and considered by the Minister.
3: At the time when the Minister sets and notifies an emissions budget under section 5ZD section 5X(3)
a: responds to the advice received from the Commission; and
b: includes a proposed emissions budget for the relevant emissions budget period; and
c: is presented to the House of Representatives and made publicly available.
4: If the proposed emissions budget departs from the advice of the Commission, the Minister must—
a: decide whether it is necessary to further consult persons likely to have an interest in the emissions budget; and
b: explain the reasons for any departures from the Commission’s advice in the response provided under subsection (3). Section 5ZB inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZC: Matters relevant to advising on, and setting, emissions budgets
1: This section applies to—
a: the Commission, when it is preparing advice for the Minister under section 5ZA
b: the Minister, when the Minister is determining an emissions budget.
2: The Commission and the Minister must—
a: have particular regard to how the emissions budget and 2050 target may realistically be met, including consideration of—
i: the key opportunities for emissions reductions and removals in New Zealand; and
ii: the principal risks and uncertainties associated with emissions reductions and removals; and
b: have regard to the following matters:
i: the emission and removal of greenhouse gases projected for the emissions budget period:
ii: a broad range of domestic and international scientific advice:
iii: existing technology and anticipated technological developments, including the costs and benefits of early adoption of these in New Zealand:
iv: the need for emissions budgets that are ambitious but likely to be technically and economically achievable:
v: the results of public consultation on an emissions budget:
vi: the likely impact of actions taken to achieve an emissions budget and the 2050 target, including on the ability to adapt to climate change:
vii: the distribution of those impacts across the regions and communities of New Zealand, and from generation to generation:
viii: economic circumstances and the likely impact of the Minister’s decision on taxation, public spending, and public borrowing:
ix: the implications, or potential implications, of land-use change for communities:
x: responses to climate change taken or planned by parties to the Paris Agreement or to the Convention:
xi: New Zealand’s relevant obligations under international agreements. Section 5ZC inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZD: Publication of emissions budgets
1: Before an emissions budget is notified in the Gazette
2: When an emissions budget has been finalised by the Minister in accordance with this subpart, the emissions budget must be—
a: notified in the Gazette
b: presented by the Minister to the House of Representatives; and
c: made publicly available at the direction of the Minister.
3: Section 5ZD inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZD(3) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Revision of emissions budgets Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZE: When emissions budgets may be revised
Notified emissions budgets
1: The Commission may, when providing advice and recommendations on a future emissions budget under section 5ZA section 5ZD
a: there have been methodological improvements to the way that emissions are measured and reported; or
b: 1 or more significant changes have affected the considerations listed in section 5ZC(2)
2: At any time the 2050 target is revised, the Commission may provide advice recommending that the relevant emissions budgets be revised to reflect the change in the 2050 target.
3: An emissions budget notified under section 5ZD Minister’s determination
4: After receiving advice from the Commission, the Minister must determine whether to revise an emissions budget.
5: The Minister must—
a: take into account—
i: the Commission’s advice; and
ii: the matters set out in section 5ZC(2)
b: follow the procedure set out in sections 5ZB 5ZD
6: However, the Minister must not revise an emissions budget—
a: after an emissions budget period has begun, unless the circumstances are exceptional; or
b: after the end of the emissions budget period to which it relates; or
c: in any way other than that required if any of the circumstances described in subsection (1) or (2) apply.
7: If the Minister determines to revise an emissions budget, the Minister must present to the House of Representatives an explanation of the reasons for revising the original emissions budget, having regard to—
a: the matters described in subsection (1)(a) and (b); and
b: the prohibition on revising an emissions budget ( see see Section 5ZE inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Banking and borrowing Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZF: Power to bank or borrow
Banking
1: If the total emissions in an emissions budget period are lower than the emissions budget for that period, the excess reduction may be carried forward to the next emissions budget period ( banked
2: Banking provides that the emissions budget for the next emissions budget period will be increased by the amount carried forward. Borrowing
3: If the total emissions in an emissions budget period are greater than the emissions budget for that emissions budget period, an amount from the next emissions budget may be carried back to the preceding emissions budget period ( borrowed
4: Borrowing provides that the emissions budget for the next emissions budget period will be reduced by the amount carried back.
5: The amount carried back under subsection (3) must not exceed 1% of the emissions budget for the next emissions budget period.
6: The Minister must decide whether to bank or borrow, and must determine the extent to which banking or borrowing is permitted.
7: Before the Minister makes a decision under subsection (6),—
a: the Commission must, in its report on an emissions budget period, provide advice on the quantity of emissions that may be banked or borrowed between 2 adjacent emissions budget periods; and
b: the Minister must have regard to that advice. Section 5ZF inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Emissions reduction plan to be prepared Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZG: Requirement for emissions reduction plan
1: For each emissions budget period, the Minister—
a: must prepare and make publicly available a plan setting out the policies and strategies for meeting the relevant emissions budget; and
b: may include in the plan policies and strategies for meeting any emissions budgets that have been notified under section 5ZD
2: The plan must be prepared and made publicly available by the deadlines specified in section 5ZI
3: The plan must include—
a: sector-specific policies to reduce emissions and increase removals; and
b: a multi-sector strategy to meet emissions budgets and improve the ability of those sectors to adapt to the effects of climate change; and
c: a strategy to mitigate the impacts that reducing emissions and increasing removals will have on employees and employers, regions, iwi and Māori, and wider communities, including the funding for any mitigation action; and
d: any other policies or strategies that the Minister considers necessary. Section 5ZG inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZG(1) replaced 3 November 2021 clause 3 COVID-19 Response (Management Measures) Legislation Act 2021 Section 5ZG(2) replaced 23 June 2020 section 15 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5ZH: Commission to advise on emissions reduction plans
1: Not later than 24 months before the beginning of an emissions budget period, the Commission must provide to the Minister advice on the direction of the policy required in the emissions reduction plan for that emissions budget period.
2: Despite subsection (1), the first advice must be given no later than—
a: 1 February 2021; or
b: after a request by the Commission to extend the deadline, any date on or before 1 August 2021 that is specified by the Minister (whether once or more) by notice in the Gazette
3: In preparing its advice, the Commission must apply section 5ZC(2) Section 5ZH inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZH(2) replaced 23 June 2020 section 16 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5ZI: Minister to prepare and make emissions reduction plan publicly available
1: In preparing a plan and supporting policies and strategies for an emissions budget period, the Minister must—
a: consider the advice received from the Commission under section 5ZH
b: ensure that the consultation has been adequate, including with sector representatives, affected communities, and iwi and Māori, and undertake further consultation as the Minister considers necessary.
2: The Minister must—
a: prepare the plan after the relevant emissions budget has been notified under section 5ZD
b: do the following at least 12 months before the commencement of the budget period:
i: publish the plan in the Gazette
ii: make the plan publicly available; and
iii: present a copy of the plan to the House of Representatives.
2A: However, for the plan for the first emissions budget period, the Minister—
a: may prepare the plan before the relevant emissions budget has been notified under section 5ZD
b: must do the following at the same time as, or after, that emissions budget is notified under section 5ZD
i: publish the plan in the Gazette
ii: make the plan publicly available; and
iii: present a copy of the plan to the House of Representatives.
3: The Minister may, at any time, amend the plan and supporting policies and strategies to maintain their currency,—
a: using the same process as required for preparing the plan; or
b: in the case of a minor or technical change, without repeating the process used for preparing the plan.
4: To avoid doubt, the plan for the first emissions budget period applies to that whole period, commencing on 1 January 2022, even if it is published, made available, and presented after that.
4: Section 5ZI inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZI(2) replaced 23 June 2020 section 17(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 5ZI(2A) inserted 23 June 2020 section 17(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 5ZI(2A)(b) amended 3 November 2021 clause 4(1) COVID-19 Response (Management Measures) Legislation Act 2021 Section 5ZI(4) inserted 3 November 2021 clause 4(2) COVID-19 Response (Management Measures) Legislation Act 2021 Section 5ZI(4) repealed 23 June 2020 section 17(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: Monitoring
Subpart 4 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZJ: Commission to monitor progress towards meeting emissions budgets
1: The Commission must regularly monitor and report on progress towards meeting an emissions budget and the 2050 target in accordance with sections 5ZK 5ZL
2: The Commission must carry out its monitoring function in accordance with the rules referred to in section 5ZA(1)(b) Section 5ZJ inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZK: Commission to report annually on results of monitoring
1: The Commission must prepare an annual report that includes, for the most recent year of the emissions budget period for which data is available from the New Zealand Greenhouse Gas Inventory,—
a: measured emissions; and
b: measured removals.
2: The report must also include—
a: the latest projections for current and future emissions and removals; and
b: an assessment of the adequacy of the emissions reduction plan and progress in its implementation, including any new opportunities to reduce emissions.
3: Not later than 3 months after the publication of a New Zealand Greenhouse Gas Inventory report, the Commission must provide its annual report prepared under subsection (1) to the Minister.
4: Not later than 3 months after receiving the Commission’s annual report under subsection (3), the Minister must present to the House of Representatives and make publicly available a report that—
a: sets out the Minister’s response to the Commission’s report and recommendations; and
b: describes the progress made in implementing the current emissions reduction plan; and
c: notes any amendments to that plan. Section 5ZK inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZL: Commission to report at end of emissions budget period
1: Not later than 2 years after the end of an emissions budget period, the Commission must prepare a report for the Minister evaluating the progress made in that emissions budget period towards meeting the emissions budget for that
a: an evaluation of how well the emissions reduction plan has contributed to that progress; and
b: recommendations on any banking and borrowing that would be appropriate; and
c: an assessment of the amount of offshore mitigation required to meet the emissions budget for that period, taking into account the limit proposed by the Commission under section 5ZA(1)(e)
2: The Minister must present a report to the House of Representatives setting out the Minister’s response to the Commission’s report—
a: not later than 3 months after receiving the Commission’s report; or
b: if Parliament is not in session, as soon as practicable after the commencement of the next session of Parliament.
3: The Minister’s response to the Commission’s report must—
a: provide reasons for any failure to meet the relevant emissions budget and for any departures from the Commission’s recommendations; and
b: be made publicly available. Section 5ZL inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZL(1) amended 23 June 2020 section 18(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 5ZL(1)(c) replaced 23 June 2020 section 18(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5: Effect of 2050 target and emissions budgets
Subpart 5 inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZM: Effect of failure to meet 2050 target and emissions budgets
1: No remedy or relief is available for failure to meet the 2050 target or an emissions budget, and the 2050 target and emissions budgets are not enforceable in a court of law, except as set out in this section.
2: If the 2050 target or an emissions budget is not met, a court may make a declaration to that effect, together with an award of costs.
3: If a declaration is made and becomes final after all appeals or rights of appeal expire or are disposed of, the Minister must, as soon as practicable, present to the House of Representatives a document that—
a: brings the declaration to the attention of the House of Representatives; and
b: contains advice on the Government’s response to the declaration. Section 5ZM inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZN: 2050 target and emissions budget are permissive considerations
If they think fit, a person or body may, in exercising or performing a public function, power, or duty conferred on that person or body by or under law, take into account—
a: the 2050 target; or
b: an emissions budget; or
c: an emissions reduction plan. Section 5ZN inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZO: Guidance for departments
1: The responsible Minister may issue guidance for departments
2: The responsible Minister must, as soon as practicable after issuing the guidance, make it publicly available.
3: Section 5ZO inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZO(1) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 5ZO(3) repealed 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
6: Recommendations about making regulations
Subpart 6 inserted 23 June 2020 section 19 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5ZOA: Recommendations about limits and price control settings for units
1: This section applies after the Minister has set the first emissions budget.
2: The Commission must recommend to the Minister limits and price control settings, including any desirable emissions price path, each time the Minister is required to recommend the making of regulations under section 30GB
3: The Commission’s recommendations must—
a: cover the limits and price control settings for each year that the Minister’s recommendation must cover; and
b: be made in accordance with—
i: the same requirements under sections 30GB 30GC
ii: its other duties ( see sections 5M to 5O
c: be given to the Minister a reasonable time before the Minister is required to recommend the making of the regulations. Section 5ZOA inserted 23 June 2020 section 19 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5ZOB: Recommendations about decreased or increased phase-out rates
1: The Commission must, on the Minister’s request, consider and recommend whether—
a: a decreased phase-out rate should be set for 1 or more eligible industrial activities for a year or years (by the making or amendment of regulations under section 84A
b: an increased phase-out rate should be set for 1 or more eligible industrial activities for an emissions budget period (by the making or amendment of regulations under section 84B
2: The Commission must recommend that a decreased phase-out rate should be set for 1 or more eligible industrial activities if the Commission is satisfied that there is an ongoing and substantial risk that activities will be relocated outside of New Zealand to reduce emissions-related costs.
3: The Commission may recommend that an increased phase-out rate should be set for 1 or more eligible industrial activities if the Commission is satisfied that it is appropriate to do so, having regard to the matters listed in section 84C(3) Section 5ZOB inserted 23 June 2020 section 19 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
1C: Adaptation
Part 1C inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 National climate change risk assessment Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZP: National climate change risk assessment
1: A national climate change risk assessment must—
a: assess the risks to New Zealand’s economy, society, environment, and ecology from the current and future effects of climate change; and
b: identify the most significant risks to New Zealand, based on the nature of the risks, their severity, and the need for co-ordinated steps to respond to those risks in the next 6-year period.
2: Sections 5L 5ZQ
3: Section 5ZR Section 5ZP inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZQ: Preparation of national climate change risk assessment
1: The Commission must, no later than 6 years after the date on which the most recent national climate change risk assessment was made publicly available,—
a: provide the next national climate change risk assessment to the Minister; and
b: make that assessment publicly available.
2: At the same time as making a national climate change risk assessment publicly available (in compliance with subsection (1)(b) and section 5L(3)
3: In preparing a national climate change risk assessment, the Commission must take into account the following:
a: economic, social, health, environmental, ecological, and cultural effects of climate change:
b: the distribution of the effects of climate change across society, taking particular account of vulnerable groups or sectors:
c: New Zealand’s relevant obligations under international agreements:
d: how the assessment aligns or links with any other relevant national risk assessments produced by central government entities:
e: current effects and likely future effects of climate change:
f: any information received as a result of requests made under section 5ZW
g: scientific and technical advice.
4: The Commission may also take into account—
a: opportunities arising for New Zealand’s economy, society, and environment as a result of the effects of climate change; and
b: any other factor that it thinks is relevant or appropriate. Section 5ZQ inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZR: Minister must prepare first national climate change risk assessment
1: The Minister must, no later than 1 year after the commencement of this Part,—
a: prepare the first national climate change risk assessment; and
b: present the assessment to the House of Representatives; and
c: make the assessment and any evidence commissioned to support its preparation publicly available.
2: Section 5ZQ(3) and (4) Section 5ZR inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 National adaptation plan Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZS: National adaptation plan
1: In response to each national climate change risk assessment, the Minister must prepare a national adaptation plan.
2: A national adaptation plan must set out—
a: the Government’s objectives for adapting to the effects of climate change; and
b: the Government’s strategies, policies, and proposals for meeting those objectives; and
c: the time frames for implementing the strategies, policies, and proposals; and
d: how the matters in paragraphs (a) to (c) address the most significant risks identified in the most recent national climate change risk assessment; and
e: the measures and indicators that will enable regular monitoring of and reporting on the implementation of the strategies, policies, and proposals.
3: A national adaptation plan may include any other matter that the Minister considers relevant.
4: In preparing a national adaptation plan, the Minister must take into account the following:
a: economic, social, health, environmental, ecological, and cultural effects of climate change, including effects on iwi and Māori:
b: the distribution of the effects of climate change across society, taking particular account of vulnerable groups or sectors:
c: New Zealand’s relevant obligations under international agreements:
d: any information received as a result of requests made under section 5ZW
e: any relevant advice or reports received from the Commission:
f: the ability of communities or organisations to undertake adaptation action, including how any action may be funded:
g: scientific and technical advice.
5: The Minister may also take into account any other matter that the Minister thinks is relevant or appropriate.
6: In preparing a national adaptation plan, the Minister must undertake public consultation on the draft plan. Section 5ZS inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZT: National adaptation plan must be presented to Parliament and made publicly available
1: The Minister must, no later than 2 years after the date on which the most recent national climate change risk assessment is made publicly available,—
a: present the national adaptation plan to the House of Representatives; and
b: make the national adaptation plan publicly available.
2: The Minister may make minor or technical changes to a national adaptation plan and must make any new version publicly available (but need not present the new version to the House of Representatives). Section 5ZT inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Progress reports Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZU: Progress reports on national adaptation plan
1: For each national adaptation plan, the Commission must provide the Minister with a progress report that evaluates the implementation of the adaptation plan and its effectiveness—
a: 2 years after the adaptation plan is made publicly available; and
b: 4 years after the adaptation plan is made publicly available; and
c: 6 years after the adaptation plan is made publicly available.
2: Each progress report must include—
a: an assessment of the progress made towards implementing the strategies, policies, and proposals included in the plan; and
b: an assessment of the degree to which the objectives of the plan have been achieved and how well the plan responds to the most significant risks posed by climate change; and
c: an identification of any known barriers to the implementation and effectiveness of the current plan, including recommendations for how those barriers might be addressed or overcome in future; and
d: any other relevant matters required to support the report.
3: The Commission is not required to provide the Minister with a progress report if the date for providing the report to the Minister under subsection (1) is more than 1 year after the date on which a subsequent adaptation plan is made publicly available. Section 5ZU inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZV: Minister must respond to progress report
The Minister must, no later than 6 months after the date on which the Minister receives a progress report,—
a: respond in writing to the progress report; and
b: make the response publicly available and present it to the House of Representatives. Section 5ZV inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Power to request provision of information Heading inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019
5ZW: Minister or Commission may request certain organisations to provide information on climate change adaptation
1: The Minister or the Commission may, in writing, request that a reporting organisation provide all or any of the following information:
a: a description of the organisation’s governance in relation to the risks of, and opportunities arising from, climate change:
b: a description of the actual and potential effects of the risks and opportunities on the organisation’s business, strategy, and financial planning:
c: a description of the processes that the organisation uses to identify, assess, and manage the risks:
d: a description of the metrics and targets used to assess and manage the risks and opportunities, including, if relevant, time frames and progress:
e: any matters specified in regulations.
2: The reporting organisation must comply with a request made under subsection (1).
3: The Minister must, as soon as practicable, provide the Commission with a copy of any information received in response to a request made by the Minister.
4: The Commission must, as soon as practicable, provide the Minister with a copy of any information received in response to a request made by the Commission.
5: The Minister and the Commission must not publicly disclose any information received in response to a request, unless disclosure of the information is necessary to enable the Minister or the Commission to perform a function or duty imposed by this Part.
6: Subsection (5) does not apply in respect of information that is already in the public domain.
7: Before publicly disclosing any information received in response to a request, the Minister or Commission must consult with the person to whom the information relates.
8: For the purposes of this section and section 5ZX reporting organisations
a: the public service, as defined in section 10
b: local authorities, as defined in section 5(1)
c: council-controlled organisations, as defined in section 6(1)
ca:
d: Crown entities, as defined in section 7(1)
e: companies listed in Schedule 4A
f: organisations listed in Schedule 1
g: lifeline utilities listed in Schedule 1
h: the New Zealand Police:
i: the New Zealand Defence Force. Section 5ZW inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZW(8)(a) amended 7 August 2020 section 135 Public Service Act 2020 Section 5ZW(8)(ca) repealed 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 Section 5ZW(8)(d) amended 1 August 2020 section 668 Education and Training Act 2020
5ZX: Regulations relating to requiring provision of information
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations specifying all or any of the following:
a: requirements that relate to information that is provided in response to a request under section 5ZW(1)
b: a date by which or time within which requested information must be provided to the Minister:
c: ongoing or recurring reporting requirements (for example, requiring the provision of further information at regular intervals following a request):
d: any administrative matters relating to responses to requests.
2: In preparing the regulations, the Minister must consider—
a: the ability to tailor a request to reflect the size and capability of the reporting organisation; and
b: the potential extent and significance of climate change effects on the functions of the reporting organisation; and
c: the avoidance of unnecessary duplication of information provided within existing reporting frameworks.
3: Before recommending the making of the regulations, the Minister must consult the Commission and the reporting organisations that the Minister considers may be affected by the proposed regulations.
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 5ZX inserted 14 November 2019 section 8 Climate Change Response (Zero Carbon) Amendment Act 2019 Section 5ZX(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
2: Institutional arrangements
1: Ministerial powers Subpart 1 heading replaced 1 January 2013 section 8 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
6: Minister of Finance may
direct Registrar regarding establishment of Crown holding accounts and The Minister of Finance may, on behalf of the Crown,—
a: direct the Registrar to establish or close Crown
b: direct the Registrar to transfer units to any holding account in the Registry or to an overseas registry or international transaction body
c: buy or sell units, or otherwise acquire or dispose of units:
d: enter into agreements to buy or sell units, or otherwise acquire or dispose of units
e: buy or sell, or enter into any agreement to buy or sell, or otherwise acquire or dispose of, any financial derivatives or other financial instruments relating to units or in connection with transactions relating to units:
f: appoint agents to conduct the activities referred to in paragraphs (a) to (e) on the terms and conditions that the Minister of Finance thinks fit. Section 6 heading amended 8 December 2009 section 9(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 6(a) amended 8 December 2009 section 9(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 6(b) amended 23 June 2020 section 20(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 6(d) amended 23 June 2020 section 20(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
6A: Minister's power to sell by auction
If regulations are made under section 30GA
a: sell New Zealand units by auction within a prescribed individual limit and
b: appoint agents to conduct the sale on the terms and conditions that the Minister thinks fit:
c: direct the Registrar to transfer units to any holding account in the Registry for the purposes of selling New Zealand units by auction. Section 6A inserted 1 January 2013 section 9 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 6A amended 23 June 2020 section 21(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 6A(a) amended 23 June 2020 section 21(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 6A(c) inserted 23 June 2020 section 21(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
7: Minister of Finance may give directions to Registrar regarding accounts and units
1: The Minister of Finance may give directions to the Registrar to—
a: establish the following accounts in the Registry for the Crown:
i:
ii:
iii: a general cancellation account:
iv:
v:
vi:
vii: a surrender account:
viii:
b: transfer units between holding accounts, subject to any prescribed restriction or prohibition.
c:
d:
da:
db:
e:
2: Despite subsection (1), or any regulations made under this Act, the Minister of Finance may not give a direction to transfer units from an account held by an account holder other than the Crown to another account in the Registry, unless—
a: the Minister of Finance has the written consent of the account holder; or
b: if written consent is not given, the Minister of Finance gives the account holder reasonable notice and—
i: the transfer is required to comply with international climate change obligations; or
ii: the account holder has failed to comply with Part 2 section 30G
c: section 30F(3)
3: Section 7(1)(a)(i) repealed 23 June 2020 section 22(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(a)(ii) repealed 23 June 2020 section 22(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(a)(iv) repealed 23 June 2020 section 22(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(a)(v) repealed 23 June 2020 section 22(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(a)(vi) repealed 23 June 2020 section 22(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(a)(vii) added 26 September 2008 section 7(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 7(1)(a)(viii) repealed 23 June 2020 section 22(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(b) replaced 23 June 2020 section 22(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(c) repealed 23 June 2020 section 22(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(d) repealed 23 June 2020 section 22(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(da) repealed 23 June 2020 section 22(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(db) repealed 23 June 2020 section 22(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(1)(e) repealed 23 June 2020 section 22(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(2) added 19 November 2007 section 6(5) Climate Change Response Amendment Act 2006 Section 7(2)(b) substituted 26 September 2008 section 7(5) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 7(2)(b)(i) replaced 23 June 2020 section 22(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 7(2)(c) added 26 September 2008 section 7(5) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 7(3) repealed 23 June 2020 section 22(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
8: Registrar must give effect to directions of Minister of Finance
1: The Registrar must give effect to any directions given by the Minister of Finance under section 6 section 7 subpart 2 section 30G
2: To avoid doubt, the Crown Entities Act 2004 Section 8(1) amended 26 September 2008 section 8 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 8(2) added 5 December 2011 section 5 Climate Change Response Amendment Act 2011
8A: Minister of Finance must publish directions
As soon as practicable after giving a direction under section 6 7 Section 8A inserted 19 November 2007 section 7 Climate Change Response Amendment Act 2006
9: Minister of Finance may obtain information from inventory agency and Registrar
For the purposes of managing the Crown's holding of units and discharging New Zealand's obligations under section 32(1)(b)
a: direct the inventory agency to provide information estimating New Zealand's human-induced emissions of greenhouse gases by sources and removals by sink activities:
b: direct the Registrar to provide information on those units, including, but not limited to, information indicating—
i: how many units the Crown holds; and
ii: how many units the Crown has issued or acquired replaced, and cancelled Section 9 amended 19 November 2007 section 8(1) Climate Change Response Amendment Act 2006 Section 9(b)(ii) amended 23 June 2020 section 23 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 9(b)(ii) amended 19 November 2007 section 8(2)(a) Climate Change Response Amendment Act 2006
1A: Chief executive
Subpart 1A inserted 5 December 2011 section 6 Climate Change Response Amendment Act 2011
9A: Functions of chief executive
The functions of the chief executive are to—
a: advise the Minister; and
b: be the inventory agency; and
c: publish information on the Internet in accordance with this Act. Section 9A inserted 5 December 2011 section 6 Climate Change Response Amendment Act 2011
9B: Delegation by chief executive
1: The chief executive may delegate any of his or her functions, duties, and powers under this Act to the EPA.
2: Clauses 2 3 Section 9B inserted 5 December 2011 section 6 Climate Change Response Amendment Act 2011 Section 9B(2) amended 7 August 2020 section 135 Public Service Act 2020
2: Registry
Purpose of Registry
10: Purpose of Registry
The purpose of the Registry is—
a: to ensure the accurate, transparent, and efficient accounting of—
i: the issue, holding, transfer, surrender, and cancellation of New Zealand units and approved overseas units; and
ii: the conversion of New Zealand units in accordance with regulations made under this Act; and
b: to ensure the accurate, transparent, and efficient exchange of information between the Registry, overseas registries, and international transaction bodies; and
c: to facilitate the exchange of information between the persons with functions, duties, and powers under this Act to enable all of them to perform their functions and duties and exercise their powers. Section 10 replaced 23 June 2020 section 24 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Registrar
11: EPA to appoint Registrar
The EPA must appoint an employee of the EPA as the Registrar. Section 11 substituted 5 December 2011 section 7 Climate Change Response Amendment Act 2011
12: Registrar responsible for Registry
The Registrar is responsible for the operation , on behalf of the Crown, Section 12 amended 5 December 2011 section 8 Climate Change Response Amendment Act 2011
13: Registrar may refuse access to, or suspend operation of, Registry
The Registrar may refuse access to the Registry, or otherwise suspend the operation of the Registry (in whole or in part),—
a: for maintenance; or
b: in response to technical difficulties; or
c: to ensure the security or integrity of the Registry; or
d: to give effect to international climate change obligations Section 13 substituted 19 November 2007 section 10 Climate Change Response Amendment Act 2006 Section 13(d) amended 23 June 2020 section 25 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
14: Registrar must give effect to directions
The Registrar must give effect to any direction (including for the transfer of units) that is given by a Minister or the EPA in accordance with this Act. Section 14 replaced 23 June 2020 section 26 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
15: Registrar
to
1: The Registrar must, in accordance with regulations made under this Act, allocate a unique account number to each account when the account is created.
1A: The Registrar may, subject to regulations made under this Part, allocate a unique serial number to—
i: a New Zealand unit; or
ii: an approved overseas unit; or
iii: a class or subclass of New Zealand units; or
iv: a class or subclass of approved overseas units.
2: Section 15 heading amended 26 September 2008 section 13(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 15(1) replaced 23 June 2020 section 27(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 15(1A) inserted 26 September 2008 section 13(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 15(2) repealed 23 June 2020 section 27(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
16: Carry-over of certain Kyoto units
Section 16 repealed 23 June 2020 section 28 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
17: Commitment period reserve
Section 17 repealed 23 June 2020 section 28 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
17A: Power of Registrar to delegate
1: The Registrar may, in writing, delegate to any person who is employed by the EPA or
2: Subject to any general or special directions given or conditions specified at any time by the Registrar, the person to whom any functions, duties, or powers are delegated under this section must perform and may exercise those functions, duties, and powers in the same manner and with the same effect as if they had been conferred on that person directly by a section of this Act and not by delegation.
3: Every person purporting to act under any delegation under this section is, in the absence of proof to the contrary, presumed to be acting in accordance with the terms of the delegation.
4: Any delegation under this section may be to a specified person or to persons of a specified class, or may be to the holder or holders for the time being of a specified office or specified classes of offices.
5: Every delegation under this section is revocable in writing at will by the Registrar, and no such delegation prevents the exercise of any function, duty, or power by the Registrar.
6: Every delegation under this section, until revoked, continues in force according to its tenor, even if the Registrar by whom it was made has ceased to hold office.
7: For the purposes of this section, State services section 5 Section 17A inserted 8 December 2009 section 11 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 17A(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 17A(7) amended 7 August 2020 section 135 Public Service Act 2020 Unit register
18: Form and content of unit register
1: The Registry must have a unit register that is—
a: in electronic form; and
b: accessible via the Registry's Internet site
c: operated at all times, unless the Registrar suspends its operation (in whole or in part) under section 13
2: The unit register must contain—
a: a record of the holdings of units in holding accounts in New Zealand; and
b: the particulars of transactions, including, but not limited to, the issue, transfer, replacement, surrender, conversion, and cancellation of units; and
c: any other matters that are required to be registered under this Act or regulations made under this Act.
3: A unit recorded in the unit register is—
a: indivisible with respect to the issue, holding, transfer, replacement, surrender,
b: transferable, subject to any regulations made under this Act,—
i: within the unit register; or
ii: between the unit register and overseas registries or international transaction bodies Section 18(1)(b) amended 19 November 2007 section 13(1) Climate Change Response Amendment Act 2006 Section 18(2)(b) replaced 23 June 2020 section 29(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 18(3) added 19 November 2007 section 13(4) Climate Change Response Amendment Act 2006 Section 18(3)(a) substituted 26 September 2008 section 16(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 18(3)(a) amended 23 June 2020 section 29(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 18(3)(b)(ii) amended 23 June 2020 section 29(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18A: Opening holding accounts
1: Any person may submit an application to the Registrar to open 1 or more holding accounts in the unit register by using the form and paying the fees (if any) prescribed in regulations made under this Act.
2: The Registrar may approve the opening of a holding account subject to any regulations made under this Act.
3: If the Registrar approves an application to open a holding account, the Registrar must, as soon as practicable,—
a: open a holding account in the applicant's name; and
b: provide the applicant with an account number
4: If the application is incomplete, the Registrar must, as soon as practicable, ask the applicant to provide the information or fee (if any) that is required to make the application complete.
5: The Registrar may refuse to provide a holding account to any applicant who provides an incomplete application.
6: A holding account is subject to any regulations made under this Act. Section 18A inserted 19 November 2007 section 14 Climate Change Response Amendment Act 2006 Section 18A(3)(b) amended 26 September 2008 section 17 Climate Change Response (Emissions Trading) Amendment Act 2008
18B: Closing holding accounts
1: An account holder may submit a request to the Registrar to close 1 or more of that account holder's holding accounts in the unit register by using the form and paying the fee (if any) prescribed in regulations made under this Act.
2: The EPA
a: if the EPA
b: where written consent is not given,—
i: if the EPA
ii: if—
A:
B: the account holder has failed to comply with this Part regarding the matters specified in section 30G
C: the EPA
3: If there are any units remaining in a holding account when it is closed,—
a: the units are forfeited to the Crown; and
b: the Registrar must, as soon as practicable, transfer the units to a Crown holding account.
4: If a request is incomplete, the Registrar must, as soon as practicable, ask the account holder to provide the information or fee (if any) that is required to make the request complete.
5: The Registrar may not close a holding account if the account holder provides an incomplete request.
6: For the purposes of subsection (2)(b)(i), reasonable notice
a: transfer the units to another account before the holding account that is the subject of the closure direction is closed; or
b: in the case of non-compliance, comply with this Part or any regulations made under section 30G
c: if the EPA EPA
7: The Registrar must give effect to any directions given by the EPA section 30G Section 18B inserted 19 November 2007 section 14 Climate Change Response Amendment Act 2006 Section 18B(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 18B(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 18B(2)(b)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 18B(2)(b)(ii)(A) repealed 23 June 2020 section 30 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 18B(2)(b)(ii)(B) amended 26 September 2008 section 18(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 18B(2)(b)(ii)(B) amended 26 September 2008 section 18(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 18B(2)(b)(ii)(C) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 18B(6) substituted 26 September 2008 section 18(4) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 18B(6)(c) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 18B(7) added 8 December 2009 section 12 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 18B(7) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
18C: Transfer of units
1: An account holder may, by using the form and paying the fees (if any) prescribed in regulations made under this Act, apply to the Registrar to transfer units from that account holder's holding account to another account in—
a: the unit register; or
b: an overseas registry or international transaction body
2: The Registrar must transfer the specified units as requested, subject to any regulations made under this Act.
3:
4: An account holder who receives units is under no obligation to initiate any registration process. Section 18C inserted 19 November 2007 section 14 Climate Change Response Amendment Act 2006 Section 18C(1)(b) amended 23 June 2020 section 31(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 18C(3) repealed 23 June 2020 section 31(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18CA: Effect of surrender and cancellation
1: A unit that is transferred to a cancellation account may not be further transferred, surrendered, or cancelled.
2: A unit that is transferred to a surrender account may only be further transferred in accordance with a direction of the Minister of Finance given under section 6 7 section 124 Section 18CA replaced 23 June 2020 section 32 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18CB: Restriction on surrender of assigned amount units
Section 18CB repealed 23 June 2020 section 33 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18CC: Restriction on surrender of assigned amount units issued during first commitment period
Section 18CC repealed 23 June 2020 section 33 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18CD: Effect of surrendering restricted assigned amount units
Section 18CD repealed 23 June 2020 section 33 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18D: Succession
1: This section applies if an account holder—
a: is a natural person and dies; or
b: is not a natural person and is wound up, liquidated, dissolved, or otherwise ceases to exist.
2: If this section applies, the person listed on the holding account as the account holder's representative may operate the holding account until—
a: a successor is determined; and
b: the Registrar has registered the successor as the account holder.
3: The Registrar may register a successor as the account holder—
a: on application made in the form, and payment of the fee (if any), prescribed in regulations made under this Act; and
b: in accordance with those regulations.
4: However, if the account holder is a company and any units in its holding account are vested in the Crown under section 324(1)
a: subsections (2) and (3) do not apply; and
b: the EPA must, as soon as practicable after becoming aware of the public notice about the vesting of the units that is given under section 324(3) Section 18D inserted 19 November 2007 section 14 Climate Change Response Amendment Act 2006 Section 18D(2)(b) replaced 23 June 2020 section 34(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 18D(3) replaced 23 June 2020 section 34(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 18D(4) inserted 23 June 2020 section 34(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
18E: Trusts, representatives, and assignees of bankrupts
1: Notice of a trust, whether express, implied, or constructive, may not be entered on the unit register except in accordance with subsection (1A).
1A: If the trustees of a trust apply to open a holding account under section 18A
a: the trustees may specify the name of the trust as the name of the holding account; and
b: the Registrar may enter on the unit register the name of the trust as the name of the holding account.
2: Despite anything in section 18D
3: The assignee of the property of a bankrupt may be entered on the unit register as the assignee of the bankrupt's units. Section 18E inserted 19 November 2007 section 14 Climate Change Response Amendment Act 2006 Section 18E(1) substituted 8 December 2009 section 14 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 18E(1A) inserted 8 December 2009 section 14 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
19: Retirement of Kyoto units by the Crown
Section 19 repealed 23 June 2020 section 35 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
20: Transactions must be registered
1: A transaction to issue, transfer, cancel, surrender, convert,
2: However, the Registrar may not register a transaction on the unit register if—
a: the Registrar receives a notification from an international transaction body
b: the transaction is not submitted in the prescribed form; or
c: the prescribed fees (if any) have not been paid to the Registrar (unless arrangements for payment have been made in accordance with regulations made under this Act). Section 20(1) amended 23 June 2020 section 36(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 20(1) amended 26 September 2008 section 22(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 20(1) amended 19 November 2007 section 15(1) Climate Change Response Amendment Act 2006 Section 20(2) substituted 19 November 2007 section 15(2) Climate Change Response Amendment Act 2006 Section 20(2)(a) amended 23 June 2020 section 36(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
21: Registration procedure for Kyoto units
Section 21 repealed 23 June 2020 section 37 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
21AA: Registration procedure for New Zealand units and approved overseas units
1: On receipt of a direction in relation to New Zealand units or approved overseas units given by the EPA or a Minister authorised to give the direction under this Act
a: create a unique transaction number; and
b: if the proposed transaction concerns an overseas registry or international transaction body, send a record of the proposed transaction to the overseas registry or international transaction body if required by it; and
c: if the proposed transaction does not concern an overseas registry or international transaction body
i: record in the unit register the particulars of the transaction set out in the direction or the application; and
ii: send electronic notification that the transaction has been recorded in the unit register to,—
A: in the case of a direction, the EPA or the Minister
B: in the case of an application, the account holder who submitted the application and the account holder specified in the application as the account holder to whose holding account New Zealand units or approved overseas units are to be transferred.
2: If the Registrar sends a record of the proposed transaction to an overseas registry or international transaction body it
a: record in the unit register the particulars of the transaction set out in the direction or the application; and
b: send notification to the overseas registry or international transaction body
c: send electronic notification that the transaction has been recorded in the unit register to,—
i: in the case of a direction, the EPA or the Minister who gave the direction
ii: in the case of an application, the account holder.
3: If the Registrar receives a notification from the overseas registry or international transaction body
a: may not register the transaction; and
b: must terminate the transaction; and
c: must notify the overseas registry or international transaction body
d: send electronic notification that the transaction has been terminated to,—
i: in the case of a direction, the Minister or the EPA
ii: in the case of an application, the account holder. Section 21AA inserted 26 September 2008 section 24 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 21AA(1) amended 23 June 2020 section 38(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 21AA(1)(b) replaced 23 June 2020 section 38(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(1)(c) amended 23 June 2020 section 38(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(1)(c)(ii)(A) amended 23 June 2020 section 38(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(1)(c)(ii)(A) amended 8 December 2009 section 16(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 21AA(2) amended 23 June 2020 section 38(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(2) amended 23 June 2020 section 38(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(2)(b) amended 23 June 2020 section 38(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(2)(c)(i) amended 23 June 2020 section 38(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(3) amended 23 June 2020 section 38(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(3)(c) amended 23 June 2020 section 38(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21AA(3)(d)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 21AA(3)(d)(i) amended 8 December 2009 section 16(4) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
21A: Electronic registration
A direction to the Registrar by the Minister or the EPA
a: made electronically in the prescribed form via the Registry's Internet site, and contain the particulars specified in the form; and
b: accompanied by the fee (if any) prescribed in regulations made under this Act; and
c: made in accordance with regulations made under this Act. Section 21A inserted 19 November 2007 section 17 Climate Change Response Amendment Act 2006 Section 21A amended 23 June 2020 section 39 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 21A amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 21A amended 8 December 2009 section 17 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
21B: Defective applications
1: If an application is defective, the Registrar may direct the applicant, in writing by electronic notification, to correct the defect within a specified period of time.
2: If a direction to correct a defect is not complied with within the specified period of time, the Registrar may refuse to—
a: proceed with the registration; or
b: register the transaction.
3: Any fees paid to the Registrar in relation to an uncorrected defective application are forfeited. Section 21B inserted 19 November 2007 section 17 Climate Change Response Amendment Act 2006 Section 21B(1) replaced 23 June 2020 section 40 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
22: Transactions take effect when registered
1: A transaction takes effect when it is registered.
2: A transaction is registered when the Registrar—
a: assigns a registration number, date, and time, and other information that may be required by this Act, to the transaction; and
b: enters those particulars in the unit register.
23: Receiving Kyoto units from overseas registries
Section 23 repealed 23 June 2020 section 41 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
23A: Receiving New Zealand units and approved overseas units from overseas registries
or international transaction bodies
1: If the Registrar receives notification from an overseas registry or international transaction body
2: If the Registrar receives notification from an overseas registry or international transaction body
a: may not register the transaction; and
b: must terminate the transaction; and
c: must notify the overseas registry or international transaction body
3: A transfer of New Zealand units or approved overseas units from an overseas registry or international transaction body Section 23A inserted 26 September 2008 section 27 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 23A heading amended 23 June 2020 section 42(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 23A(1) amended 23 June 2020 section 42(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 23A(2) amended 23 June 2020 section 42(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 23A(2)(c) amended 23 June 2020 section 42(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 23A(3) amended 23 June 2020 section 42(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
24: Priority of registration
1: A direction given to the Registrar by the Minister or the EPA
2: A direction or an
3: Subsection (1) applies to an application for the registration of a transaction only if the application is completed to the satisfaction of the Registrar and in accordance with any regulations made under this Act. Section 24(1) substituted 26 September 2008 section 28(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 24(1) amended 23 June 2020 section 43 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 24(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 24(1) amended 8 December 2009 section 18 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 24(2) amended 19 November 2007 section 19(2) Climate Change Response Amendment Act 2006 Section 24(3) added 26 September 2008 section 28(2) Climate Change Response (Emissions Trading) Amendment Act 2008
25: Correction of unit register
1: If the unit register records a transaction inaccurately, and the inaccuracy is the result of an error or omission made by the Registrar when registering the transaction, then a request to correct the inaccuracy may be submitted by—
a: the EPA or the Minister who gave the direction
b: the account holder who applied to register the transaction.
2: The request—
a: may be made at any time; and
b: must specify—
i: the inaccuracy; and
ii: the correction required; and
c: must be in the form, and accompanied by the fees (if any), prescribed in regulations made under this Act.
3: If the Registrar is satisfied that the unit register is inaccurate in any respect, the Registrar may
a: correct the unit register accordingly; and
b: record on the unit register—
i: the nature of the correction; and
ii: the time that the correction was made; and
c: give notification of the correction, as soon as practicable, to—
i: any person whom the Registrar considers to be affected by the correction; and
ii: an international transaction body (if required to do so); and
iii: an overseas registry (if required to do so). Section 25 substituted 19 November 2007 section 20 Climate Change Response Amendment Act 2006 Section 25(1) substituted 26 September 2008 section 29(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 25(1)(a) substituted 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 25(1)(a) amended 23 June 2020 section 44(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 25(3) amended 26 September 2008 section 29(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 25(3)(c)(ii) replaced 23 June 2020 section 44(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 25(3)(c)(iii) substituted 26 September 2008 section 29(3) Climate Change Response (Emissions Trading) Amendment Act 2008
26: Unit register must be open for search
1: Except as provided in section 13 Registry's Internet site
2: The Registrar is not required to make publicly available any information that is not listed in section 27 Section 26(1) amended 19 November 2007 section 21 Climate Change Response Amendment Act 2006 Section 26(2) added 26 September 2008 section 30 Climate Change Response (Emissions Trading) Amendment Act 2008
27: Information accessible by search
1: The following information must be accessible by a search of the unit register:
a: the following up-to-date information for each account:
i: the name of the account holder; and
ii: the type of account; and
iii: the account number; and
iv: the full name, mailing address, telephone number, fax number, and email address of any primary representatives of the account holder; and
b: a list of account holders; and
c: for each account whose purpose is to hold approved overseas units, the commitment period that the Protocol provides for and that is associated with the account; and
d: any other information prescribed in regulations made under this Part.
2: The following information must be made accessible by a search of the unit register, and be available by 31 January in each year, in a form that shows the relevant totals at the end of the previous year:
a:
b:
c: the total quantity of New Zealand units issued during that year under section 68 178B
d: the total quantity of New Zealand units transferred for each removal activity during that year; and
e: the total holdings of New Zealand units in the Registry; and
f: the total holdings of approved overseas units in the Registry; and
g: the total holdings of each type of approved overseas units in the Registry; and
h: the total quantity of each type of approved overseas units issued during that year; and
i:
j: the following information in relation to units transferred into the Registry
i: the total quantity of units transferred; and
ii: the total quantity of each type of unit transferred; and
iii: the identity of the transferring registry or body
A: units transferred from each registry or body
B: each type of unit transferred from each registry or body
k: the following information in relation to units transferred out of the Registry
i: the total quantity of units transferred; and
ii: the total quantity of each type of unit transferred; and
iii: the identity of the acquiring registry or body
A: units transferred to each registry or body
B: each type of unit transferred to each registry or body
l: the total quantity of units transferred between holding accounts in the Registry during that year; and
m: the total quantity of each type of unit transferred between holding accounts in the Registry during that year; and
n:
o: the total quantity of approved overseas units transferred during that year to any sink cancellation account; and
p: the total quantity of approved overseas units transferred during that year to any non-compliance cancellation account; and
q: the total quantity of units transferred to each
r:
s: the total quantity of units surrendered during that year; and
t: the total quantity of each type of unit surrendered during that year; and
u: the total quantity of each type of unit into which New Zealand units are converted in accordance with regulations made under this Act.
v:
w:
3: The following information must be accessible by a search of the unit register in a form that shows the relevant totals at the beginning of the previous year:
a: the total holdings in each holding account in the Registry (including any holding account held by the Crown) of each type of approved overseas unit issued in—
i: the first commitment period starting on 1 January 2008 and ending on 31 December 2012; or
ii: the second commitment period starting on 1 January 2013 and ending on 31 December 2020; and
b: the total quantity of each type of approved overseas unit in the Registry. Section 27 substituted 26 September 2008 section 31 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 27(1)(c) replaced 23 June 2020 section 45(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(a) repealed 23 June 2020 section 45(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(b) repealed 23 June 2020 section 45(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(c) replaced 1 January 2013 section 14 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 27(2)(h) replaced 23 June 2020 section 45(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(i) repealed 23 June 2020 section 45(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(j) amended 23 June 2020 section 45(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(j)(iii) amended 23 June 2020 section 45(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(j)(iii)(A) amended 23 June 2020 section 45(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(j)(iii)(B) amended 23 June 2020 section 45(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(k) amended 23 June 2020 section 45(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(k)(iii) amended 23 June 2020 section 45(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(k)(iii)(A) amended 23 June 2020 section 45(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(k)(iii)(B) amended 23 June 2020 section 45(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(n) repealed 23 June 2020 section 45(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(o) replaced 23 June 2020 section 45(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(p) replaced 23 June 2020 section 45(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(q) amended 23 June 2020 section 45(11) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(r) repealed 23 June 2020 section 45(12) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(u) replaced 23 June 2020 section 45(13) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(v) repealed 23 June 2020 section 45(13) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(2)(w) repealed 23 June 2020 section 45(13) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(3)(a) replaced 23 June 2020 section 45(14) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 27(3)(b) replaced 23 June 2020 section 45(14) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
28: Search of unit register
A person may, by using the form and paying the fees (if any) prescribed by regulations made under this Act, search the unit register, and obtain a printed search result, in accordance with this Act and any regulations made under this Act. Section 28 substituted 14 November 2006 section 23 Climate Change Response Amendment Act 2006
29: Printed search result receivable as evidence
A printed search result, or a copy of a printed search result, that purports to be issued by the Registrar is receivable as evidence and is, in the absence of evidence to the contrary, proof of any matter recorded in the unit register, including (but not limited to)—
a: the ownership of units; and
b: the date and time of the registration of a transaction; and
c: information that the Registry holds. Section 29 substituted 14 November 2006 section 23 Climate Change Response Amendment Act 2006
30: Recovery of fees
1: A fee that is not paid in accordance with regulations made under this Part EPA
2: The EPA EPA Section 30(1) amended 26 September 2008 section 32(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 30(1) amended 26 September 2008 section 32(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 30(2) amended 26 September 2008 section 32(1) Climate Change Response (Emissions Trading) Amendment Act 2008
30A: The Crown No action may be brought against the Crown or the Registrar for any loss or damage resulting from—
a: an inaccuracy in a search of the unit register; or
b: an inaccurate entry or omission in the unit register if the inaccuracy or omission arises from reasonable reliance on information received by the Registrar from—
i: an international transaction body; or
ia: an overseas registry; or
ib: a third party; or
ii: an account holder. Section 30A inserted 14 November 2006 section 24 Climate Change Response Amendment Act 2006 Section 30A heading amended 26 September 2008 section 33(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30A(b)(i) replaced 23 June 2020 section 46 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30A(b)(ia) inserted 26 September 2008 section 33(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30A(b)(ib) inserted 26 September 2008 section 33(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Expiry of long-term certified emission reduction units and temporary certified emission reduction units Heading repealed 23 June 2020 section 47 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30B: Expiry of long-term certified emission reduction units
Section 30B repealed 23 June 2020 section 47 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30C: Replacement of certain long-term certified emission reduction units
Section 30C repealed 23 June 2020 section 47 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30D: Expiry of temporary certified emission reduction units
Section 30D repealed 23 June 2020 section 47 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Miscellaneous provisions Heading inserted 26 September 2008 section 34 Climate Change Response (Emissions Trading) Amendment Act 2008
30E: Conversion of New Zealand units into designated assigned amount units for sale overseas or cancellation
Section 30E repealed 23 June 2020 section 48 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30F: Restrictions on certain New Zealand units allocated to landowners of pre-1990 forest land
1: This section applies to any New Zealand units transferred or to be transferred after 31 December 2012 in accordance with the pre-1990 forest land allocation plan issued under section 70
2:
3: If the activity listed in Part 1 section 7 Section 30F inserted 26 September 2008 section 34 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30F(1) substituted 8 December 2009 section 20 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 30F(2) repealed 8 December 2009 section 20 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
30G: Regulations relating to Part 2
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for any or all of the following purposes:
a: prescribing procedures and requirements relating to any powers of the Minister of Finance under subpart 1
b: prescribing matters, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, or prohibitions, in respect of—
i: the transfer of units, including (but not limited to)—
A: the transfer of units from an account holder’s holding account to an account in an overseas registry or international transaction body
B: the transfer of units within the unit register:
C: the transfer of units from an overseas registry or international transaction body
D: prohibitions on the transfer of units for the purposes of holding those units in an account in the Registry:
ii: the opening or closing of holding accounts:
iii: the registration of a successor as an account holder:
c: prescribing matters in respect of the holding, surrender, conversion, and cancellation of units, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, procedures, or thresholds:
d:
e: prescribing procedures, requirements, and other matters in respect of the unit register and its operation, including, but not limited to, matters relating to—
i: access to the unit register:
ii: the location of the unit register:
iii: the hours of access to the unit register:
iv: the format of unique numbers to be used in the unit register:
v: the allocation of unique serial numbers to New Zealand units and approved overseas units:
vi: the exchange of data between—
A: the Registry and overseas registries:
B: the Registry and an international transaction body
vii: the registration of transactions:
viii: the form and content of the unit register:
f: prescribing matters in respect of which fees are payable under this Part or regulations made under this Part
g: prescribing procedures, requirements, and other matters in respect of the form, use, and manner of obtaining electronic verification statements to confirm a registration:
h: prescribing procedures, requirements, and other matters in respect of searching the unit register, including, but not limited to,—
i: the criteria by which a search may be conducted:
ii: the method of disclosure:
iii: the form of search results:
iv: the abbreviations, expansions, or symbols that may be used in search results:
i: prescribing forms and notices for the purposes of this Part or regulations made under this Part
ia: prescribing, for the purpose of the definition of international transaction body section 4
j: prescribing, for the purpose of the definition of overseas registry, overseas registries from which or to which units may be transferred to or
k: prescribing the units issued by an overseas registry or international transaction body
l: prescribing procedures for transactions involving approved overseas units:
m: prescribing matters in respect of the taking of possession of an emissions unit for the purposes of section 18(1A)(b)
n: in respect of this Part, giving effect to international climate change obligations international climate change obligations
o: providing for the matters that are contemplated by, or necessary for, giving full effect to this Part and for its due administration.
p:
q:
2: Regulations made under subsection (1) may be made in respect of different units, transactions, persons, classes of units, subclasses of units, classes of transactions, or classes of persons.
3: Any regulation made under subsection (1)(b)(i) or (c) applies to only the following units:
a: all units that are not held in an account in the Registry at the time that the regulation comes into force; and
b: approved overseas units that are issued before 1 January 2021 (the start of the third commitment period).
3A: The amount of fees set under regulations made under subsection (1)(f) must not exceed the amount necessary to enable the recovery of the direct and indirect costs of the Registrar in performing his or her functions under this Part.
4: Any regulations made under subsection (1) must be consistent with international climate change obligations
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 30G inserted 26 September 2008 section 34 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30G(1)(b)(i)(A) amended 23 June 2020 section 49(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(b)(i)(C) amended 23 June 2020 section 49(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(b)(iii) inserted 23 June 2020 section 49(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(d) repealed 23 June 2020 section 49(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(e)(vi)(B) amended 23 June 2020 section 49(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(f) amended 23 June 2020 section 49(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(i) amended 23 June 2020 section 49(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(ia) inserted 23 June 2020 section 49(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(j) amended 23 June 2020 section 49(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(k) amended 23 June 2020 section 49(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(n) amended 23 June 2020 section 49(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(n) amended 23 June 2020 section 49(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(p) repealed 23 June 2020 section 49(11) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(1)(q) repealed 23 June 2020 section 49(11) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(3) replaced 30 November 2020 section 203 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(3A) inserted 5 December 2011 section 9 Climate Change Response Amendment Act 2011 Section 30G(4) amended 23 June 2020 section 49(12) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30G(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
30GA: Regulations for auctions to sell New Zealand units
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations under this section that prescribe matters relating to the powers of the Minister under section 6A
2: If regulations are to be made under this section, the Minister must recommend the making of regulations that—
a: specify the date on which the sale of New Zealand units by auction commences:
b: prescribe an indicative schedule for when auctions are planned to be held:
c: specify circumstances in which an auction will not be held:
d: specify the format of an auction (for example, a single-round, sealed bid format):
e: specify rules for the format of the auction (for example, rules on how bids are made and how tied bids are resolved):
f: specify criteria, and requirements for registration, that a person must satisfy to participate in an auction:
g: specify financial processes that a person must follow when participating in an auction, including requirements for financial assurance, payment, and delivery:
h: provide for the results of each auction to be made publicly available.
2A: If regulations are to be made under this section,—
a: the Minister may, after considering the main matters and additional matters in section 30GC(5) and (6)
i: if the price is greater than the lowest trigger price prescribed under section 30GB(2)(e)(ii)
ii: if the price (as recalculated or, if not, as initially calculated) is greater than the minimum price prescribed under section 30GB(2)(e)(iii) confidential reserve price
b: the Minister must, if recommending the making of regulations under paragraph (a), also recommend that the regulations—
i: specify criteria or requirements for the Minister’s decision to set the methodology, including a requirement to ensure that the methodology promotes the purpose of confidential reserve prices; and
ii: specify that the purpose of confidential reserve prices is to prevent sales by auction under section 6A secondary markets
iii: require the methodology and any calculated prices to be kept confidential so that they are not disclosed to any potential buyer who participates in an auction; and
iv: require the auction operator to provide the following information to the chief executive at a specified time after 1 or more auctions:
A: details of the calculation of the price or prices using the methodology; and
B: details of the auction bids in a form that does not identify any bidder, so that the chief executive can assess how any confidential reserve prices are working.
3: If regulations are to be made under this section, the Minister may recommend the making of regulations for any or all of the following purposes:
a: providing for pilot auctions to be conducted, whether before or after the date on which auctions commence:
b: prescribing offences and penalties for the breach of regulations made under this section or section 30GD
c: prescribing infringement offences for the breach of regulations made under this section or section 30GD
i: maximum fines not exceeding—
A: $3,000 for an individual:
B: $6,000 in any other case; and
ii: infringement fees not exceeding—
A: $1,000 for an individual:
B: $2,000 in any other case:
d: prescribing those infringement fees as different amounts for a first, second, or subsequent infringement offence:
e: providing for any other matters for the conduct of an auction that the Minister considers relevant to the effective conduct of the auction.
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 30GA replaced 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30GA(2A) inserted 15 March 2021 section 4 Climate Change Response (Auction Price) Amendment Act 2021 Section 30GA(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
30GB: Regulations about limits and price control settings for units
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations under this section.
2: If regulations are to be made under section 30GA
a: prescribe the following limits for a calendar year:
i: a limit on the New Zealand units available by auction (an individual limit
ii: a limit on the approved overseas units used (another individual limit
iii: a limit on the sum of the following (the overall limit
A: the New Zealand units available by auction:
B: the New Zealand units available by other means:
C: the approved overseas units used; and
b: provide that—
i: the individual limits must not be exceeded; and
ii: the overall limit—
A: restricts both the New Zealand units available by auction and the approved overseas units used, in that neither must cause the overall limit to be exceeded; but
B: does not restrict the New Zealand units available by other means, in that they may cause the overall limit to be exceeded; and
c: provide that any additional units that are allocated under section 86C(5)(b)
d: provide for how a reserve amount of New Zealand units is to be released for sale at auction if a trigger price is reached or exceeded by bidding at an auction, unless the reserve amount and minimum price are set at zero under paragraph (e); and
e: prescribe the following price control settings
i: the reserve amount of New Zealand units for each trigger price, which may be a single reserve amount of zero:
ii: the 1 or more trigger prices, unless the reserve amount is zero:
iii: the minimum price below which units must not be sold by auction, which may be zero.
3: The Minister must recommend the making of regulations under this section so that,—
a: when the regulations are first made, they prescribe limits and price control settings for each of the next 5 or 6 calendar years; and
b: the regulations are amended to ensure that, at all times, they prescribe limits and price control settings for each of the next 5 calendar years.
4: Each time the Minister is to recommend that the regulations be amended to apply to a further calendar year under subsection (3)(b), the Minister—
a: must consider whether to recommend prescribing new limits and new price control settings for each of the 2 calendar years before that further calendar year; and
b: may recommend prescribing new limits and new price control settings for 1 or both of the 2 calendar years after the year in which the amendment is made.
5: However, the Minister may make a recommendation under subsection (4)(b) only if,—
a: in the year in which the amendment is made, the price control settings have had effect by—
i: the release of a reserve amount of units; or
ii: the sale of units at the minimum price; or
b: the Minister is satisfied that the amendment is justified by the following special circumstances:
i: a change that has significantly affected any matter that the Minister was required to consider under section 30GC
ii: a change in the budget or contribution described by section 30GC(2)(a) or (b)
iii: a force majeure
6: Regulations made under subsection (2)(a)(ii) may be made in respect of different units, transactions, persons, classes of units, subclasses of units, classes of transactions, or classes of persons.
7: See section 30GC
8: In this section,— approved overseas units used New Zealand units available by auction New Zealand units available by other means industrial
9: Regulations under this section are secondary legislation ( see Part 3 Example
Regulations are first made under this section in December 2020. They must prescribe the individual limits, overall limits, and price control settings for the 5 (or 6) years from 2021 to 2025 (or 2026). In 2021, the regulations— must be amended to apply (or in how they apply) to 2026; and may be amended to prescribe new individual limits, overall limits, and price control settings for 2024 and 2025; and may be amended to prescribe new price control settings for 2022 or 2023. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 30GB replaced 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30GB(2)(e)(iii) replaced 15 March 2021 section 5 Climate Change Response (Auction Price) Amendment Act 2021 Section 30GB(8) New Zealand units available by other means amended 26 November 2024 section 9 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 30GB(9) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
30GC: Requirements for regulations about limits and price control settings for units
1: The Minister must comply with this section in—
a: recommending under section 30GB(2), (3), or (4)(b)
b: considering under section 30GB(4)(a)
2: The Minister must be satisfied that the limits and price control settings are in accordance with—
a: the emissions budget, and the nationally determined contribution for New Zealand under the Paris Agreement, that applies to—
i: the period for which the limits or price control settings are being prescribed; or
ii: any period after that, if a budget or contribution exists for that period; and
b: the 2050 target.
3: However, they need not strictly accord with the budgets or contributions as long as the Minister is satisfied that the discrepancy is justified, after considering the other matters under this section.
4: The Minister must consider—
a: the main matters; and
b: the additional matters, but only in relation to the price control settings.
5: The main matters
a: the projected trends for New Zealand’s greenhouse gas emissions in the 5 years after the current year, including—
i: the anticipated volumes of greenhouse gas emissions to which the emissions trading scheme applies (meaning emissions for which participants are required to submit returns or surrender units under this Act); and
ii: the anticipated volumes of greenhouse gas emissions to which the emissions trading scheme does not apply:
b: the proper functioning of the emissions trading scheme:
c: international climate change obligations and instruments or contracts that New Zealand has with other jurisdictions to access emissions reductions in their carbon markets:
d: the forecast availability and cost of ways to reduce greenhouse gas emissions that may be needed for New Zealand to meet its targets for the reduction of emissions:
e: the recommendations made by the Climate Change Commission under section 5ZOA
f: any other matters that the Minister considers relevant.
6: The additional matters
a: the impact of emissions prices on households and the economy:
b: the level and trajectory of international emissions prices (including price controls in linked markets):
c: inflation.
7: If the Minister makes a recommendation about prescribing limits or price control settings that differs from a recommendation made by the Commission under section 5ZOA
a: present a copy of the report to the House of Representatives; and
b: make the report publicly available. Section 30GC inserted 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30GD: Regulations for auction monitor
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations under this section.
2: If regulations are made, or are to be made, under section 30GA
a: prescribing a method or process by which the Minister may appoint a person as an auction monitor, which must—
i: require the person to be independent of any auction agents and any persons who are likely to be auction participants; and
ii: include as functions of the auction monitor—
A: validating auction results; and
B: publishing reports on the results of auctions:
b: specifying that the auction monitor’s functions include any of the following:
i: monitoring the conduct of any auction agents and auction participants:
ii: providing periodic assessments of the auction system and making recommendations for improvements:
iii: calculating additional specified metrics in respect of the auction process and auction results (such as bid volume statistics and relevant aggregate information):
iv: any other functions that the Minister considers are relevant to the effective conduct of the auction monitor’s role.
3: In this section and section 30GE auction agent section 6A(b) auction monitor auction participant
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 30GD inserted 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30GD(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
30GE: Sharing information with auction monitor
1: The purpose of this section is to facilitate the provision of information—
a: from the EPA, the Registrar, the chief executive, or any auction agent (a provider
b: to the auction monitor (if appointed).
2: A provider must provide information to the auction monitor if the information—
a: is requested by the auction monitor; and
b: is required by the auction monitor to assist in carrying out its functions. Section 30GE inserted 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30GF: Obligation of confidentiality on auction monitor
1: This section applies to the auction monitor (if appointed) while, and after, the auction monitor performs its functions or exercises its powers.
2: The auction monitor—
a: must keep confidential all information that comes into its knowledge when performing its functions or exercising its powers; and
b: must not disclose any of that information, except—
i: with the consent of the person to whom the information relates or to whom the information is confidential; or
ii: to the extent that the information is already in the public domain; or
iii: for the purposes of, or in connection with, the performance of its functions or the exercise of its powers; or
iv: as provided under this Act or any other Act; or
v: in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or
vi: for the purpose of complying with international climate change obligations.
3: The auction monitor commits an offence under section 30GG
4: Nothing in subsection (2) may be treated as prohibiting the auction monitor from—
a: providing or publishing general information in relation to its functions; or
b: with the prior approval of the Minister, preparing statistical information and supplying it to any person in a form that does not identify any individual. Section 30GF inserted 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30GG: Offence for breach of auction monitor’s obligation of confidentiality
An auction monitor who knowingly acts in contravention of section 30GF
a: imprisonment for a term not exceeding 6 months:
b: a fine not exceeding $15,000. Section 30GG inserted 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30H: Consultation and commencement for certain regulations about units and auctions
1: This section applies to regulations made under—
a: section 30G(1)(b)(i), (c), (j), or (k) Part 2
b: section 30GA
c: section 30GB
d: section 30GD
2: See sections 3A 3B
3: The regulations come into force—
a: 3 months after the date of their publication under the Legislation Act 2019
b: if the Minister considers it is in the national interest that they be made urgently, on any earlier date specified in the regulations. Section 30H replaced 23 June 2020 section 50 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30H(3)(a) amended 28 October 2021 section 3 Secondary Legislation Act 2021
30I: Incorporation by reference in regulations made under section 30G
1: The following written material may be incorporated by reference in regulations made under section 30G
a: decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved by any international or national organisation in accordance with international climate change obligations
b: any standards, requirements, or recommended practices—
i: of any international or national organisation that are adopted, agreed on, made, or approved in accordance with international climate change obligations
ii: prescribed in any country or jurisdiction that are adopted, agreed on, made, or approved in accordance with international climate change obligations
2: Material may be incorporated by reference in regulations—
a: in whole or in part; and
b: with modifications, additions, or variations specified in the regulations.
3: Material incorporated by reference in regulations has legal effect as part of the regulations.
4: Sections 170 to 177 section 30G a relevant empowering section Section 30I inserted 26 September 2008 section 34 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30I(1)(a) amended 23 June 2020 section 51(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30I(1)(b)(i) amended 23 June 2020 section 51(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30I(1)(b)(ii) amended 23 June 2020 section 51(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30I(4) amended 23 June 2020 section 51(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30IA: Minister must obtain greenhouse gas reductions to match certain excess units
1: This section applies to the following New Zealand units (if any) to the extent that they cause the emissions budget for an emissions budget period to be exceeded:
a: the units sold by auction, after being released in a reserve amount, in that period:
b: the units allocated for eligible industrial
2: The Minister must ensure, or enter into agreements that require, that the emission of greenhouse gases is reduced, or the removal of greenhouse gases from the atmosphere is increased, by 1 tonne of carbon dioxide equivalent for each of the units, whether by domestic means or offshore mitigation.
3: The deadline for the Minister to do so is as soon as is reasonably practicable after the end of the emissions budget period. Section 30IA inserted 23 June 2020 section 52 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30IA(1)(b) amended 26 November 2024 section 10 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
30J: Signing false declaration with respect to regulations made under section 30G
or 30GA Every person who signs a declaration that is required under regulations made under section 30G 30GA
a: commits an offence; and
b: is liable on conviction to a fine not exceeding $5,000. Section 30J inserted 26 September 2008 section 34 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 30J heading amended 23 June 2020 section 53(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30J amended 23 June 2020 section 53(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30K: Providing false or misleading information to Registrar
1: Every person who knowingly provides false or misleading information to the Registrar commits an offence and is liable on conviction to a fine not exceeding,—
a: in the case of an individual, $50,000:
b: in the case of a body corporate, $200,000.
2: Every person who recklessly provides false or misleading information to the Registrar commits an offence, and is liable on conviction to a fine not exceeding $2,000. Section 30K inserted 26 September 2008 section 34 Climate Change Response (Emissions Trading) Amendment Act 2008
3: Infringement offences
Subpart 3 inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30L: Meaning of infringement offence and infringement fee
In this subpart,— infringement fee infringement offence Section 30L inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30M: Regulations about infringement offences
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for any or all of the following purposes:
a: prescribing infringement offences by—
i: prescribing a duty, restriction, or prohibition for conduct that is similar to conduct, or similar to an element of conduct, for which there is a duty, restriction, or prohibition under any of sections 30J 30K(1) 46 47 48 129 131 132(1)(a), (b), and (f) to (i) 259 260 261(1)(a), (b), (d), and (e) 264
ii: providing that a contravention of the duty, restriction, or prohibition is an infringement offence:
b: prescribing for the infringement offences—
i: maximum fines not exceeding—
A: $3,000 for an individual:
B: $6,000 in any other case; and
ii: infringement fees not exceeding—
A: $1,000 for an individual:
B: $2,000 in any other case:
c: prescribing those infringement fees as different amounts for a first, second, or subsequent infringement offence:
d: providing for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.
2: Before the Minister recommends the making of regulations under subsection (1)(a), the Minister must be satisfied, after consulting the Minister of Justice, that a contravention of each duty, restriction, or prohibition is sufficiently minor to be appropriate as an infringement offence.
3: A person may be prosecuted for, and convicted of, an offence against any provision referred to in subsection (1)(a)(i) even if their conduct is or may be an infringement offence.
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 30M inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30M(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
30N: Consultation and commencement for regulations about infringement offences
1: This section applies to regulations made under section 30M
2: See sections 3A 3B
3: The regulations come into force 3 months after the date of their publication under the Legislation Act 2019 Section 30N inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30N(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021
30O: Proceedings for infringement offences
1: A person who is alleged to have committed an infringement offence may—
a: be proceeded against by the filing of a charging document under section 14
b: be issued with an infringement notice under section 30Q
2: Proceedings commenced in the way described in subsection (1)(a) do not require the leave of a District Court Judge or Registrar under section 21(1)(a)
3: See section 21 Section 30O inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30P: Appointment of enforcement officers
1: The EPA may appoint 1 or more persons who are employees of the EPA as enforcement officers to exercise 1 or more of the powers and perform the functions conferred on enforcement officers under this subpart.
2: Section 93(2) to (5) Section 30P inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30Q: When infringement notice may be issued
1: An enforcement officer may issue an infringement notice to a person if the enforcement officer believes on reasonable grounds that the person is committing, or has committed, an infringement offence.
2: The enforcement officer may require the person to provide their full name and any other information required so that the enforcement officer can issue the infringement notice. Section 30Q inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30R: Infringement notice may be revoked
1: The enforcement officer may revoke an infringement notice before the infringement fee is paid or an order for payment of a fine is made or deemed to be made by a court under section 21
2: An infringement notice is revoked by giving written notice to the person to whom it was issued that the notice is revoked.
3: The revocation of an infringement notice under this section is not a bar to any other enforcement action against the person to whom the notice was issued in respect of the same matter. Section 30R inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30S: What infringement notice must contain
1: An infringement notice must be in the form prescribed in regulations and must contain the following particulars:
a: details of the alleged infringement offence that fairly inform a person of the nature of the alleged offence, including, to any applicable extent, the time and place of the alleged offence:
b: the amount of the infringement fee:
c: the address of the EPA:
d: how the infringement fee may be paid:
e: the time within which the infringement fee must be paid:
f: a summary of the provisions of section 21(10)
g: a statement that the person served with the notice has a right to request a hearing:
h: a statement of what will happen if the person served with the notice neither pays the infringement fee nor requests a hearing:
i: any other matters prescribed in regulations.
2: The particulars contained in the notice under subsection (1)(d) must include at least 1 method of payment in person. Section 30S inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30T: How infringement notice may be served
1: An infringement notice may be served on the person who the enforcement officer believes is committing or has committed the infringement offence by—
a: delivering it to the person or, if the person refuses to accept it, bringing it to the person’s notice; or
b: leaving it for the person at the person’s last known place of residence with another person who appears to be of or over the age of 14 years; or
c: leaving it for the person at the person’s place of business, or place of work, with another person; or
d: sending it to the person by prepaid post addressed to—
i: the mailing address recorded in a register kept by the EPA under this Act for the person or any primary representative of the person, if they are an account holder; or
ii: the person’s last known place of residence or place of business or work; or
e: sending it to,—
i: if the person is an account holder, the electronic address recorded in a register kept by the EPA under this Act for the person or any primary representative of the person; or
ii: if the person does not have a known place of residence or business in New Zealand, an electronic address of the person.
2: An infringement notice (or a copy of it) sent by prepaid post to a person under subsection (1) is to be treated as having been served on the person on the fifth working day after the date on which it was posted. Section 30T inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30U: Payment of infringement fees
All infringement fees paid in respect of infringement offences must be paid into a Crown Bank Account. Section 30U inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30V: Reminder notices
A reminder notice must be in the form prescribed in regulations, and must include the same particulars, or substantially the same particulars, as the infringement notice. Section 30V inserted 23 June 2020 section 54 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: Regulations setting price of carbon
Subpart 4 inserted 1 January 2021 section 212 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
30W: Regulations setting price of carbon
1: For the purpose of sections 134 to 134D
a: prescribing the methodology for specifying the price of carbon; and
b: specifying the price of carbon by applying the methodology.
2: Before recommending the making of regulations, the Minister must take into account—
a: the price of the units used to calculate revenue from the emissions trading scheme in the Crown annual financial statements in the preceding 12 months; and
b: the price of New Zealand units sold by auction in the preceding 12 months; and
c: any changes to the operation of the emissions trading scheme that have affected the price of the units surrendered under that scheme, or that may do so before the end of the next levy year.
3: See sections 3A 3B subsection (1)(a)
4: Regulations made under subsection (1)(a) publication under the Legislation Act 2019
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 30W inserted 1 January 2021 section 212 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 30W(4) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 30W(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3: Inventory agency
Part 3 heading inserted 26 September 2008 section 35 Climate Change Response (Emissions Trading) Amendment Act 2008
31: Meaning of greenhouse gas
For the purposes of this Part section 4 greenhouse gas Section 31 amended 23 June 2020 section 55(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 31 amended 23 June 2020 section 55(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
32: Primary functions of inventory agency
1: The primary functions of the inventory agency are to—
a: estimate annually New Zealand's human-induced emissions by sources and removals by sinks of greenhouse gases; and
b: prepare the following reports for the purpose of discharging New Zealand's obligations:
i: New Zealand's annual inventory report under Articles 4 and 12 of the Convention and , including (but not limited to) the quantities of long-term certified emission reduction units and temporary certified emission reduction units that have expired or have been replaced, retired, or cancelled
ia: any report of information by New Zealand under Article 13 of the Paris Agreement; and
ii: New Zealand's national communication (or periodic report) under Article 7.2 of the Protocol and Article 12 of the Convention.
iii:
2: In carrying out its functions, the inventory agency must—
a: identify source categories; and
b: collect data by means of—
i: voluntary collection; and
ii: collection from government agencies and other agencies that hold relevant information; and
iii: collection in accordance with regulations made under this Part
c: estimate the emissions and removals by sinks for each source category; and
d: undertake assessments on uncertainties; and
e: undertake procedures to verify the data; and
f: retain information and documents to show how the estimates were determined. Section 32(1)(b)(i) amended 1 January 2013 section 20 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 32(1)(b)(i) amended 14 November 2006 section 25 Climate Change Response Amendment Act 2006 Section 32(1)(b)(ia) inserted 23 June 2020 section 56(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 32(1)(b)(iii) repealed 23 June 2020 section 56(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 32(2)(b)(iii) amended 26 September 2008 section 36 Climate Change Response (Emissions Trading) Amendment Act 2008
33: Inventory agency under direction of Minister
1: The inventory agency must comply with any direction from the Minister Part
2: As soon as practicable after giving the direction, the Minister make a copy of the direction accessible via the inventory agency's Internet site Section 33 heading amended 26 September 2008 section 37(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 33(1) amended 26 September 2008 section 37(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 33(1) amended 26 September 2008 section 37(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 33(2) amended 26 September 2008 section 37(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 33(2) amended 14 November 2006 section 26 Climate Change Response Amendment Act 2006
34: Record keeping
The inventory agency must keep a record of changes that occur from year to year in—
a: the collection of data; and
b: the use of methodologies and emission factors.
35: Publication
The inventory agency must publish New Zealand's annual inventory report , national inventory report, and national communication (or periodic report) in electronic form by placing the reports Section 35 substituted 1 August 2003 section 27 Climate Change Response Amendment Act 2006 Section 35 amended 23 June 2020 section 57 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Inspectors Heading substituted 26 September 2008 section 38 Climate Change Response (Emissions Trading) Amendment Act 2008
36: Authorisation of inspectors
1: The Minister exercise any or all of the powers of, and carry out any or all of the duties of an inspector under this Part
a: employees of the inventory agency; or
b: employees of the Ministry for Primary Industries
c: employees of New Zealand Forest Research Institute Limited, Landcare Research New Zealand Limited, AgResearch Crown Research Institutes Act 1992 ; or
d: employees of the EPA.
2: An authorisation is subject to the terms and conditions that are agreed to by the Minister
3: The Minister
4: An inspector who exercises, or purports to exercise, a power conferred on that inspector under this Part
a: his or her warrant of authorisation; and
b: evidence of his or her identity.
5: An inspector who holds a warrant of authorisation issued under this section must, on the termination of that inspector's authorisation, surrender his or her warrant of authorisation to the Minister Section 36(1) amended 26 September 2008 section 39(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 36(1) amended 26 September 2008 section 39(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 36(1)(b) amended 1 January 2013 section 21 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 36(1)(c) amended 23 June 2020 section 58 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 36(1)(c) amended 5 December 2011 section 10 Climate Change Response Amendment Act 2011 Section 36(1)(d) added 5 December 2011 section 10 Climate Change Response Amendment Act 2011 Section 36(2) amended 26 September 2008 section 39(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 36(3) amended 26 September 2008 section 39(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 36(4) amended 26 September 2008 section 39(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 36(5) amended 26 September 2008 section 39(1) Climate Change Response (Emissions Trading) Amendment Act 2008
37: Power to enter land or premises to collect information to estimate emissions or removals of greenhouse gases
1: For the purposes of collecting information to assist with the estimation of New Zealand's human-induced emissions by sources and removals by sinks of greenhouse gases, an inspector may, if authorised in writing by the Minister
a: carry out surveys, investigations, tests, or measurements (including those that involve leaving measuring equipment on the land or premises):
b: take samples of water, air, soil, or organic matter.
2: To avoid doubt, the authorisation given by the Minister
3: Reasonable notice, in writing, must be given to the occupier (if any) of the land or premises to be entered that specifies—
a: when, and by what means, entry is to be made; and
b: the purpose for which entry is required; and
c: that the entry is authorised under this section.
4: Reasonable effort must be made to give notice under subsection (3) to the owner or owners of the land or premises.
5: If the owner or owners are not given notice, reasonable effort must be made to identify any wāhi tapu areas and archaeological sites on the land by other means.
6: An inspector who exercises the power of entry under this section may use any assistance that is reasonably necessary to exercise the power.
7: A person who provides assistance under subsection (6) may exercise the powers provided to inspectors under subsection (1). Section 37(1) amended 26 September 2008 section 40 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 37(2) amended 26 September 2008 section 40 Climate Change Response (Emissions Trading) Amendment Act 2008
38: Limitation on power of entry under section 37
The Minister section 37
a: requires specific technical expertise to collect; and
b: cannot reasonably be obtained from the occupier or owner of the land or premises. Section 38 amended 26 September 2008 section 41 Climate Change Response (Emissions Trading) Amendment Act 2008
39: Power of entry for inspection
1: An inspector authorised in writing by the inventory agency may enter land or premises (excluding any dwellinghouse) at any reasonable time during the ordinary hours of business, for the purpose of inspection, to determine whether or not a person is complying with regulations made under section 50(2)(a), (c), (e), or (f)
2: During an inspection, an inspector may—
a: require the production of, inspect, and copy any documents or business records (including electronic documents or records):
b: take samples of water, air, soil, or organic matter:
c: carry out surveys, investigations, tests, or measurements (including those that involve leaving measuring equipment on the land or premises):
d: demand from the occupier any other information that the inspector may reasonably require for the purpose of determining whether or not regulations made under section 50(2)(a), (c), (e), or (f)
3: An inspector who exercises the power of inspection under this section must give the occupier or owner reasonable notice of the inspector's intention to enter the land or premises unless doing so would defeat the purpose of the entry.
4: A notice given under subsection (3) must specify—
a: when entry is to be made; and
b: the purpose for which the entry is required; and
c: that the entry is authorised under this section.
5: An inspector who exercises the power of inspection under this section may be accompanied by any person or persons reasonably necessary to assist him or her with the inspection.
6: A person who provides assistance under subsection (5) may exercise the powers provided to inspectors under subsection (2)(a) to (c).
7: Nothing in this section limits the privilege against self-incrimination.
40: Applications for warrants
1: A District Court Judge who, on written application made on oath by an inspector authorised by the inventory agency, is satisfied that there are reasonable grounds to believe that there are in or on or under or over any land, premises, or dwellinghouse any documents or other records or things (including samples) for which there are reasonable grounds to believe may be evidence of the commission of an offence under section 46
2: Every search warrant must authorise the inspector executing the warrant to—
a: enter and search the land, premises, or dwellinghouse within 30 working days of the date of the warrant at any time that is reasonable in the circumstances during the ordinary hours of business; and
b: require the production, inspection, and copying of documents or business records (including electronic documents or records); and
c: demand from the occupier any other information that the inspector may reasonably require for the purpose of determining whether or not the regulations made under section 50(2)
d: seize any documents or business records that the inspector has reasonable cause to suspect may be evidence of the commission of an offence under section 46
e: take samples of water, air, soil, or organic matter; and
f: use any assistance that is reasonably necessary in the circumstances; and
g: use any force to enter (whether by breaking doors or otherwise) that is reasonable in the circumstances.
3: An inspector may not enter a dwellinghouse unless that inspector is accompanied by a constable
4: A person who provides assistance under subsection (2)(f) may exercise the powers provided to inspectors under subsection (2)(a), (b), (d), (e), and (g).
5: Nothing in this section limits the privilege against self-incrimination. Section 40(3) amended 1 October 2008 section 116(a)(ii) Policing Act 2008
41: Entry of defence areas
Despite anything in sections 37 39 40 section 2(1)
42: Proof of authority must be produced
If powers are exercised under section 37 section 39 section 40
a: warrant of authorisation and evidence of his or her identity; and
b: written authorisation to enter required under section 37 section 39 section 40
43: Notice of entry
1: If, when powers are exercised under section 37 section 39 section 40
a: the date and time of the entry or search; and
b: the purpose of the entry or search; and
c: the name and phone number of that inspector; and
d: an address at which enquiries may be made.
2: If the inspector removes, or has removed, any documents or business records from any land, premises, or dwellinghouse, the inspector must hand to the occupier, or attach in a prominent place, a notice that—
a: lists all of the items taken; and
b: states where those items are being held (and, if they are being held in 2 or more places, state which items are being held in which place); and
c: states the procedure that the person must follow to have those items returned.
44: Information obtained under section 39 or section 40 only admissible in proceedings for alleged breach of regulations made under section 50(2)
No document, business record, or other information obtained from a person under section 39 section 40 section 50(2)
45: Return of items seized
Section 199
a: references in that section to a constable were references to an inspector; and
b: the reference in that section to section 198 section 39 section 40
45A: Protection of persons acting under authority of this Part
No inspector or person called upon to assist an inspector who does an act or omits to do an act when carrying out a duty, performing a function, or exercising a power conferred on that person by this Part is under any civil or criminal liability in respect of that act or omission unless the person has acted or omitted to act in bad faith or without reasonable cause. Section 45A inserted 26 September 2008 section 42 Climate Change Response (Emissions Trading) Amendment Act 2008 Offences and penalties
46: Failing to provide required information to inventory agency
Every person who fails, without reasonable excuse, to provide the information to the inventory agency required under regulations made under section 50(2)
a: commits an offence; and
b: is liable on conviction to a fine not exceeding,—
i: in the case of an individual, $5,000; or
ii: in the case of a body corporate, $30,000.
47: Obstructing, hindering, resisting, or deceiving person exercising power under
Part Every person—
a: commits an offence who—
i: wilfully obstructs, hinders, resists, or deceives a person exercising a power conferred on that person under this Part Part
ii: wilfully interferes with any survey, investigation, test, or measurement carried out by an inspector under this Part
iii: refuses to provide information that an inspector has demanded from that person under section 39(2)(d) section 40(2)(c)
b: is liable on conviction to a fine not exceeding,—
i: in the case of an individual, $5,000; or
ii: in the case of a body corporate, $30,000. Section 47 heading amended 26 September 2008 section 43(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 47(a)(i) amended 26 September 2008 section 43(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 47(a)(ii) amended 26 September 2008 section 43(3) Climate Change Response (Emissions Trading) Amendment Act 2008
48: Signing false declaration
in respect of regulations made under section 50 Every person who signs a declaration that is required by regulations made under section 50 and that is false
a: commits an offence; and
b: is liable on conviction to a fine not exceeding $5,000. Section 48 heading amended 26 September 2008 section 44 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 48 amended 23 June 2020 section 59 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
48A: Providing false or misleading information to Registrar
Section 48A repealed 26 September 2008 section 45 Climate Change Response (Emissions Trading) Amendment Act 2008 Miscellaneous provisions
49: Reporting
For the purpose of reporting to the Secretariat in accordance with international climate change obligations Section 49 amended 23 June 2020 section 60 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 49 amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
50: Regulations
1: The Governor-General may, by Order in Council, make regulations for any or all of the following purposes:
a:
b: prescribing agencies whose employees may act as inspectors under section 36
i: a department as defined in section 5
ii: a Crown Research Institute within the meaning of the Crown Research Institutes Act 1992
c:
ca:
d:
e:
f:
g:
h:
i: prescribing forms and notices for the purposes of this Part
j: for the purposes of, and subject to, Part 2 international climate change obligations with international climate change obligations
k: providing for the matters that are contemplated by, or necessary for, giving full effect to this Part
2: The Governor-General may, by Order in Council made on the recommendation of the Minister
a: emissions of greenhouse gases into the atmosphere from industrial or trade premises:
b: volumes of fuel produced, distributed, sold, or used, and the nature of the use of that fuel:
c: industrial processes, including by-products from industrial processes:
d: composition of vehicle fleets and use of vehicles, including, but not limited to, distances travelled:
e: imports and exports of hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride:
f: imports, exports, manufacture, sales, and the nature of the use of products that contain hydrofluorocarbons, perfluorocarbons, and sulphur hexafluoride:
fa: the registration of motor vehicles of each class that have air-conditioning systems that contain hydrofluorocarbons or perfluorocarbons:
g: waste composition and weight, dimensional characteristics of landfills, and volume of landfill gases extracted and combusted:
h: numbers of ruminants and other farmed livestock and their performance:
i: areas of crops and amounts produced:
j: amount of nitrogenous and lime fertilisers used:
k: native and planted trees, the amount of harvesting, the area of land in scrub, and the area of land in other land uses that are necessary to determine land use change under international climate change obligations
3: The Governor-General may, by Order in Council made on the recommendation of the Minister
4: Regulations made under subsection (2) may specify the manner and form in which records must be kept and provided, including specifying that those records must be declared as true, the form of that declaration, and who must sign that declaration.
5: Regulations made under subsection (1) or (2) may be made in respect of different persons or classes of persons.
6: For the purposes of subsection (5), classes of persons
7: Any regulations made under this section must be consistent with—
a: this Act; and
b: international climate change obligations.
c:
8: The Governor-General may, by Order in Council, amend or replace Schedule 1 2 2A
9: The following are secondary legislation ( see Part 3
a: regulations made under this section:
b: an Order in Council made under subsection (8). The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 50(1)(a) repealed 26 September 2008 section 47(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(b)(i) replaced 7 August 2020 section 135 Public Service Act 2020 Section 50(1)(c) repealed 26 September 2008 section 47(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(ca) repealed 26 September 2008 section 47(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(d) repealed 26 September 2008 section 47(4) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(e) repealed 26 September 2008 section 47(5) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(f) repealed 26 September 2008 section 47(6) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(g) repealed 26 September 2008 section 47(7) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(h) repealed 26 September 2008 section 47(8) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(i) amended 26 September 2008 section 47(9) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(1)(j) amended 23 June 2020 section 61(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(1)(j) amended 23 June 2020 section 61(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(1)(k) amended 26 September 2008 section 47(10) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(2) amended 23 June 2020 section 61(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(2)(fa) inserted 1 January 2013 section 22(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 50(2)(k) amended 23 June 2020 section 61(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(3) amended 23 June 2020 section 61(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(5) substituted 26 September 2008 section 47(12) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 50(7)(b) replaced 23 June 2020 section 61(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(7)(c) repealed 23 June 2020 section 61(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(8) replaced 23 June 2020 section 61(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 50(9) replaced 28 October 2021 regulation 39 Legislation Act (Amendments to Legislation) Regulations 2021 Section 50(9) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
51: Incorporation by reference in regulations made under section 50
1: The following written material may be incorporated by reference in regulations made under section 50
a: decisions, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters adopted, agreed on, made, or approved by any international or national organisation in accordance with international climate change obligations
b: any standards, requirements, or recommended practices—
i: of any international or national organisation that are adopted, agreed on, made, or approved in accordance with international climate change obligations
ii: prescribed in any country or jurisdiction that are adopted, agreed on, made, or approved in accordance with international climate change obligations
2: Material may be incorporated by reference in regulations—
a: in whole or in part; and
b: with modifications, additions, or variations specified in the regulations.
3: Material incorporated by reference in regulations has legal effect as part of the regulations.
4: Sections 170 to 177 section 50 a relevant empowering section Section 51 substituted 26 September 2008 section 48 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 51(1)(a) amended 23 June 2020 section 62(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 51(1)(b)(i) amended 23 June 2020 section 62(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 51(1)(b)(ii) amended 23 June 2020 section 62(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 51(4) amended 23 June 2020 section 62(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
52: Inventory agency must report to Minister
1: Before regulations are made under section 50(2) or (3)
a: whether or not the information to be collected under the regulations is reasonably available to the inventory agency by other means, including, but not limited to,—
i: voluntary collection; or
ii: collection from a government agency that holds the information (provided that the release of the information by that government agency complies with the information privacy principles set out in section 22
b: any deficiencies with collecting the information using those other means, including, but not limited to,—
i: deficiencies in obtaining the required quality of information; and
ii: the lack of certainty that all the required information can be provided; and
c: whether or not the regulations are likely to place a disproportionate burden on any particular group of persons.
2: When preparing a report under subsection (1), the inventory agency must consult any person or government agency that is likely to be affected by the proposed regulations.
3: With respect to a report prepared under subsection (1), the Minister
a: must have regard to the report and to the results of consultation; and
b: may recommend the making of section 50(2) or (3)
4: The Minister section 50(2) and (3) international climate change obligations Section 52 heading amended 26 September 2008 section 49(1) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 52(1) amended 26 September 2008 section 49(2) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 52(1)(a)(ii) amended 1 December 2020 section 217 Privacy Act 2020 Section 52(3) amended 26 September 2008 section 49(3) Climate Change Response (Emissions Trading) Amendment Act 2008 Section 52(3)(b) amended 23 June 2020 section 63(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 52(4) amended 23 June 2020 section 63(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 52(4) amended 26 September 2008 section 49(4) Climate Change Response (Emissions Trading) Amendment Act 2008
53: Consequential amendments
Section 53 repealed 23 June 2020 section 64 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: New Zealand greenhouse gas emissions trading scheme
Part 4 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
1: Participants
Subpart 1 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
54: Participants
1: A person is a participant
a: in respect of an activity listed in Schedule 3
i: is required under section 180 , 181P or 204
ii: if subparagraph (i) does not apply, carries out the activity; and
b: in relation to an activity listed in Schedule 4
i: carries out the activity, is registered as a participant under section 57
ii: becomes a participant under Part 5
2: Any reference in the ETS participant provisions section 180 , 181P or 204
3: Subsection (1)(a) is subject to any exemption under an Order in Council made under section 60
4: A person who was a participant under subsection (1) continues to be a participant for the purposes of this Act in respect of any obligations (including, but not limited to, the obligation to retain records in accordance with section 67 section 64 Schedule 3 4
5: The EPA must ensure that the registers, or the information contained in the registers, kept for the purposes of section 56 57 Section 54 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 54(1)(a)(i) amended 26 November 2024 section 11(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 54(1)(a)(i) amended 1 January 2023 section 236 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 54(1)(a)(i) amended 23 June 2020 section 65(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 54(1)(a)(i) amended 8 December 2009 section 22(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 54(1)(b)(ii) amended 23 June 2020 section 65(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 54(1)(b)(ii) amended 8 December 2009 section 22(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 54(2) amended 26 November 2024 section 11(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 54(2) amended 1 January 2023 section 236 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 54(2) amended 23 June 2020 section 65(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 54(2) amended 23 June 2020 section 65(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 54(2) amended 8 December 2009 section 22(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 54(4) amended 8 December 2009 section 22(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 54(5) substituted 5 December 2011 section 19 Climate Change Response Amendment Act 2011
55: Associated persons
1: This section applies if an activity listed in Schedule 3
2: If this section applies, persons who are associated persons are to be treated as 1 person for the purpose of determining whether the threshold is met.
3: If a threshold for an activity listed in Schedule 3
a: is to be treated as carrying out the activity for the purposes of this Act; and
b: may elect to comply with the ETS participant provisions
i: participant in relation to the activity; or
ii: member of an unincorporated body; or
iii: member section 150 Section 55 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 55(3)(b) amended 23 June 2020 section 66 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 55(3)(b)(ii) substituted 8 December 2009 section 23(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 55(3)(b)(iii) amended 8 December 2009 section 23(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
56: Registration as participant in respect of activities listed in Schedule 3
1: A person who carries out an activity listed in Schedule 3
a: notify the EPA
b: if the person does not already have a holding account—
i: apply to open a holding account under section 18A EPA
ii: supply the account number of the holding account, or ensure that the account number of the holding account is supplied, to the EPA
2: A notice under subsection (1)(a) must—
a: be submitted to the EPA
b: be in the prescribed form; and
c: contain—
i: the name of the person; and
ii: the details of the activity that the person carries out; and
iii: any other information that the EPA
iv: if the person already has 1 or more holding accounts, the account number of the holding account that the person wishes to use for the purpose of section 61(1)
3: The EPA
a: enter on a register kept by the EPA
i: the name of the person; and
ii: the activity that the person carries out; and
b: notify the person that the person’s name and the activity the person carries out have been entered on the register.
4: If the EPA EPA
5: To avoid doubt, a person carrying out an activity on land to which section 179A Schedule 3 Section 56 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 56(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(1)(b)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(1)(b)((ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(2)(c)(iii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(3)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 56(5) replaced 1 January 2023 section 237 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
57: Applicant
1: A person who carries out an activity listed in Schedule 4 EPA
2: An application under subsection (1) must—
a: be in the prescribed form; and
b: be accompanied by—
i: any information that the EPA
ii: the prescribed fee (if any); and
c: if the person already has 1 or more holding accounts, contain the account number of the holding account that the person wishes to use for the purpose of section 61(1)
3: Any person who does not have a holding account at the time the person submits an application under subsection (1) must—
a: apply to open a holding account under section 18A
b: supply the account number of the holding account to the EPA
4: Following the receipt of an application under subsection (1), the EPA
a: in respect of the activity listed in Schedule 4
i: is carrying out the activity in the year in which the EPA
ii: will carry out the activity in the year in which the person’s registration will take effect in accordance with subsection (8); and
b: has met any conditions of registration in respect of the activity in the ETS participant provisions ; and
ba: has met any eligibility criteria prescribed in relation to the activity; and
bb: if the activity is standard forestry or permanent forestry, has met any obligations incurred while previously registered (if ever) in respect of an activity of standard forestry; and
c: has paid any prescribed fees or charges.
5: The EPA EPA
a: the name of the applicant; and
b: the activity carried out by the applicant; and
c: the date from which the applicant’s registration as a participant in respect of the activity will take effect in accordance with subsection (8).
6: After registering a person under subsection (5), the EPA must notify the person that they have been registered as a participant in respect of the activity and the date from which the registration will take effect.
7: If the EPA Part 2 3 or 4 EPA
a: decline the application; or
b: register the applicant under subsection (5), unless the EPA EPA
8: The registration of a person takes effect from the date the person’s name is entered on the register under subsection (5) or any later date required by section 198(2) 209(2)
9: If the EPA EPA Section 57 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 57 heading amended 1 January 2013 section 24(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 57(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(2)(b)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(3)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(4)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(4)(b) amended 23 June 2020 section 68(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 57(4)(b) amended 8 December 2009 section 24(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 57(4)(ba) inserted 1 January 2013 section 24(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 57(4)(bb) inserted 1 January 2023 section 238 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 57(4)(c) added 8 December 2009 section 24(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 57(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(6) replaced 23 June 2020 section 68(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 57(7) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(7) amended 8 December 2009 section 24(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 57(7)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 57(8) amended 23 June 2020 section 68(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 57(9) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
58: Removal from register of participants in respect of activities listed in Schedule 4
1: A person who is registered under section 57 Schedule 4 EPA
2: An application under subsection (1) must—
a: be in the prescribed form; and
b: be accompanied by the prescribed fee (if any).
3: Following receipt of an application under subsection (1), the EPA
a: note on the register—
i: that the applicant has applied to be removed from the register as a participant in respect of the activity; and
ii: the date on which the applicant’s name is to be removed in accordance with subsection (4); and
b: notify the applicant of the date on which the applicant’s name was, or is to be, removed from the register in accordance with subsection (4).
c:
4: The EPA section 186A 198(3) 209(3) Section 58 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 58(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 58(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 58(3)(c) repealed 23 June 2020 section 69(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 58(4) amended 1 January 2023 section 239 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 58(4) amended 23 June 2020 section 69(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 58(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
59: Removal from register of participants in respect of activities listed in Schedules 3 and 4
1: A person who is registered under section 56 57 Schedule 3 4 EPA for the remainder of the year and the whole of the following year
2: The EPA for the remainder of the year and the whole of the following year
a: remove the name of the person from the register in respect of the activity immediately or, if the notice specifies that the person will cease the activity on a future date, on that date; and
b: notify the person
i: has been removed from the register in respect of the activity; or
ii: if the person’s name will be removed from the register in respect of the activity on a future date, that the person’s name will be removed from the register in respect of the activity on that date.
3: This section is subject to sections 200 and 211 and Part 4 Section 59 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 59(1) amended 1 January 2013 section 25 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 59(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 59(2) amended 1 January 2013 section 25 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 59(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 59(2)(b) amended 23 June 2020 section 70 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 59(3) amended 26 November 2024 section 12 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 59(3) amended 8 December 2009 section 26(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
59AA: Removal from register for persistent non-compliance (standard forestry participants only)
1: The EPA may remove the name of a person from the register kept under section 57
a: the person has not submitted an emissions return required by section 183A
b: the person has not surrendered or repaid units by 365 days after the date on which the person was required to surrender or repay the units; or
c: the person has not paid a penalty imposed by sections 134 to 134D
i: at least 90 days after the date on which the person was required to pay the penalty; and
ii: at least 365 days after the date on which the person was required to surrender or repay the units or submit the emissions return to which the penalty relates.
2: However, the EPA may not rely on subsection (1)(a) to remove the name of a person from the register if—
a: the person has submitted an emissions return under section 183 section 183A
b: the EPA has made an assessment under section 121
i: the person has surrendered any units required to be surrendered as a result of the assessment; and
ii: the person has paid any penalties resulting from the failure to submit the return and from the assessment.
3: At least 90 days before removing the name of the person from the register, the EPA must notify the person—
a: that the EPA proposes to remove the name of the person from the register; and
b: of the reason for the proposed removal (for example, failure to surrender units); and
c: of the actions that the person may take to prevent the removal (for example, surrender the units that the person has failed to surrender).
4: The EPA may still take action under this section if it is unable to notify the person of its proposal to do so because it is not reasonably practicable to locate them or their address. Section 59AA inserted 1 January 2023 section 240 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
59A: Removal from register if participant never carried out activity
1: The EPA must remove the name of a person from the register in respect of an activity if the EPA is satisfied that the person is not carrying out the activity and has never carried out the activity.
2: At least 60 days before removing the name of the person from the register, the EPA must notify the person—
a: that the EPA proposes to remove the name of the person from the register; and
b: of the reason for the proposed removal; and
c: of the actions that the person may take to prevent the removal (for example, provide evidence that the person carries out the activity).
3: The EPA may still take action under this section if it is unable to notify the person of its proposal to do so because it is not reasonably practicable to locate them or their address. Section 59A inserted 23 June 2020 section 71 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
60: Exemptions in respect of activities listed in Schedule 3
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt any person or class of persons carrying out an activity listed in Schedule 3
a: the
b: part of the
c: a proportion of the emissions from the
d: a combination of the matters specified in paragraphs (a) to (c).
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.
1B: To avoid doubt, an order made under subsection (1) may exempt a person from being a participant in respect of an activity or emissions that occurred before or after the commencement of the order.
2: Before recommending the making of an order under subsection (1), the Minister must be satisfied that—
a: the order will not materially undermine the environmental integrity of the emissions trading scheme
b: the costs of making the order do not exceed the benefits of
3: In determining whether to recommend the making of an order under subsection (1), the Minister must have regard to the following matters:
a: the need to maintain the environmental integrity of the emissions trading scheme
b: the desirability of minimising any compliance and administrative costs associated with the emissions trading scheme
c: the relative costs of giving the exemption or not giving it, and who bears the costs; and
d: any alternatives that are available for achieving the objectives of the Minister in respect of giving the exemption; and
e: any other matters the Minister considers relevant.
4: While an order made under this section is in force, any person or class of persons in respect of whom the order is made is not required to comply with the obligations imposed on participants under the ETS participant provisions
5: See sections 3A 3B
6: Despite anything in subsection (2) or (3), the Minister may recommend
a: the negotiated greenhouse agreement was signed before 31 December 2005; and
b: the order relates to an activity of the person that is covered by the negotiated greenhouse agreement; and
c: the order is in force for a period not exceeding the term of the negotiated greenhouse agreement, including any extension of the term made in accordance with the agreement.
7: An order under this section is secondary legislation ( see Part 3
7:
8: The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 60 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 60(1)(a) amended 8 December 2009 section 27(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 60(1)(b) amended 8 December 2009 section 27(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 60(1)(c) amended 8 December 2009 section 27(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 60(1A) inserted 8 December 2009 section 27(4) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 60(1B) inserted 23 June 2020 section 72(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(2)(a) amended 23 June 2020 section 72(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(2)(b) amended 8 December 2009 section 27(5) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 60(3)(a) amended 23 June 2020 section 72(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(3)(b) amended 23 June 2020 section 72(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(4) amended 23 June 2020 section 72(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(5) replaced 23 June 2020 section 72(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(6) amended 23 June 2020 section 72(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 60(7) repealed 23 June 2020 section 72(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60(8) repealed 23 June 2020 section 72(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
60A: Exemption for participants in
standard forestry or permanent forestry
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt any person or class of persons carrying out standard forestry or permanent forestry
a: Part 4 5
b: regulations made for the purposes of Part 4 5
2: An order under this section may—
a: specify any terms and conditions of the exemption that the Governor-General thinks fit:
b: exempt a person generally, or in respect of a specified act, matter, or thing, or class of acts, matters, or things:
c: exempt a person in respect of something that occurred before the order was made:
d: require the EPA to deal with emissions returns or applications, update the register, or take other actions in respect of acts, matters, or things affected by the exemption.
3: The Minister must not recommend the making of an order under this section unless satisfied that—
a: the order will not materially undermine the environmental integrity of the emissions trading scheme; and
b: the costs of making the order do not exceed the benefits of making the order.
4: In determining whether to recommend the making of an order under this section, the Minister must have regard to the following:
a: the need to maintain the environmental integrity of the emissions trading scheme:
b: the desirability of minimising any compliance and administrative costs associated with the emissions trading scheme:
c: the relative costs of giving the exemption or not giving it, and who bears the costs:
d: any alternatives that are available for achieving the objectives of the Minister in respect of giving the exemption:
e: any other matters that the Minister considers relevant.
5: See sections 3A 3B
6: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 60A inserted 23 June 2020 section 73 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60A heading amended 1 January 2023 section 241(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60A(1) amended 1 January 2023 section 241(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 60A(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
60B: Incorporation by reference in order made under section 60 or 60A
1: The following written material may be incorporated by reference in an order made under section 60 60A
a: decisions, computer programmes, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters; and
b: standards, requirements, or recommended practices of a government agency, standard-setting organisation, or professional body.
2: Material may be incorporated by reference in the order—
a: in whole or in part; and
b: with modifications, additions, or variations specified in the order.
3: Material incorporated by reference in the order has legal effect as part of the order.
4: Sections 170 to 177
a: references to regulations, or regulations made under a relevant empowering section, were references to the order, or to another order made under section 60 60A
b: sections 173(2)(c) and (4)(b) 174(1)(d) Gazette
5: In subsection (4)(b), targeted notice Section 60B inserted 23 June 2020 section 73 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
61: Requirement to have holding account
1: A participant or an eligible person must have a holding account for the purpose of—
a: surrendering units or repaying units as required under the ETS participant provisions
b: receiving New Zealand units to which the participant or eligible person is entitled under the ETS participant provisions
2: Despite anything in subsection (1), a person who does not have a holding account at the time the person becomes a participant complies with subsection (1) if the person complies with section 56(1)(b) 57(3)
3: Despite anything in this Act, the Registrar must, subject to section 18A(5)
a: a person—
i: who applies to open a holding account in accordance with section 56(1)(b) 57(3)
ii: whose name has been entered on a register kept for the purposes of section 56 57
b: an eligible person. Section 61 substituted 8 December 2009 section 28 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 61(1)(a) amended 23 June 2020 section 74 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 61(1)(b) amended 23 June 2020 section 74 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
62: Monitoring of emissions and removals
1: A participant must, in respect of each activity listed in Schedule 3 4
a: collect the prescribed data or other prescribed information (which data or information must, if required by regulations made under this Act, be verified by a person or organisation recognised by the EPA section 92
b: calculate the emissions and the removals from the activity in accordance with the methodologies prescribed in regulations made under this Act; and
c: if required by regulations made under this Act, have the calculations verified by a person or organisation recognised by the EPA section 92
d: keep, in the prescribed format (if any), records of the data or information and calculations.
2: Subsection (1)(b) does not apply in relation to emissions and removals that a person is not required to calculate under—
a: section 191G
b: section 193F(3) Section 62 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 62(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 62(1)(c) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 62(1)(d) substituted 8 December 2009 section 29 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 62(2) inserted 1 January 2023 section 242 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
63: Liability to surrender units to cover emissions
1: A participant is liable to surrender 1 unit for each whole tonne of emissions from each activity listed in Schedule 3 4
a: as calculated in accordance with this Act; and
b: at the times required under this Act.
1A: However, subsection (1) does not apply to emissions for which a participant is not liable to surrender units as a result of any of the following:
a: section 179A
b: section 182G
c: sections 185A 192L(3)
d: section 191F(2)
e: section 193F(1)
2: If a participant is liable to surrender units under this Act, the participant must make an application under section 18C EPA
3:
4: If the provision of this Act that imposes a liability to surrender or repay units does not specify the deadline for doing so, the deadline is within 60 working days after the EPA gives the person a notice requiring the surrender or repayment.
5: See also sections 189E 189F 189G
a: from PFSI activity to standard forestry in a carbon accounting area (averaging); or
b: between permanent forestry and standard forestry in a carbon accounting area (averaging). Section 63 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 63(1A) inserted 1 January 2023 section 243(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 63(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 63(3) repealed 1 January 2023 section 243(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 63(4) inserted 23 June 2020 section 75 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 63(5) inserted 1 January 2023 section 243(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
63A: Modification of liability to surrender units to cover certain emissions
2019-01-01 Climate Change Response Act 2002 Affects 4 sections: 63A, 64A, 84A, 235. Section 63A repealed 1 January 2019
64: Entitlement to receive New Zealand units for removal activities
1: A participant is entitled to receive 1 New Zealand unit for each whole tonne of removals from the participant’s removal activities, as calculated in accordance with this Act.
1A: Subsection (1) does not apply to removals for which a participant is not entitled to receive units under—
a: section 191E
b: section 193F(1)
c: section 197
2: If a participant submits an emissions return to the EPA EPA
3: Subsection (2) does not apply—
a: if, within 20 working days of the EPA receiving the emissions return, the EPA or an enforcement officer serves notice on the participant under section 94
b: to the extent that subsection (4) requires units to be transferred elsewhere.
4: The EPA must apply section 64A
a: the units the participant is entitled to receive are the potential transfer units
b: the participant is the recipient
c: the end of the emissions return period for the emissions return is the relevant time
4:
5: Section 64 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 64(1A) replaced 1 January 2023 section 244 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 64(2) substituted 8 December 2009 section 30 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 64(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 64(3) replaced 23 June 2020 section 76(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 64(4) inserted 23 June 2020 section 76(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 64(4) repealed 8 December 2009 section 30 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 64(5) repealed 8 December 2009 section 30 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
64A: Transfer of units allocated, or entitled to be received or reimbursed, less any units that must be surrendered or repaid
1: If this section applies, the EPA must calculate the specified units
a: starting from the units that were required to be surrendered or repaid by the earliest dates; but
b: stopping once they equal the number of potential transfer units (if they do).
2: If there are any specified units, the EPA must notify the recipient of the following:
a: the number of specified units required for surrender:
b: the number of specified units required for repayment:
c: that the specified units will be deducted from the potential transfer units when they are transferred to the recipient, excluding any specified units that have already been surrendered or repaid by then.
3: 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 recipient’s holding account.
4: However, the Registrar, in transferring—
a: any units under subsection (3), must exclude any specified units that have already been surrendered or repaid by then:
b: any specified units under subsection (3)(a) or (b), may first transfer them to the recipient’s holding account and then immediately transfer them from that holding account.
5: The transfer of any specified units for surrender or repayment satisfies—
a: the recipient’s entitlement to be transferred those units; and
b: the recipient’s obligation to surrender or repay the related units.
6: To avoid doubt, the recipient 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 64A inserted 23 June 2020 section 77 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
64A: Modification of entitlement to receive New Zealand units for removal activities
Section 64A repealed 1 January 2019
65: Annual emissions returns
1: In the period beginning on 1 January and ending on 31 March in each year, a participant must submit an annual emissions return to the EPA in respect of each of the activities listed in Schedule 3 Part 2 3 4
1A:
2: The annual emissions return must, in respect of activities that the participant carried out during the year covered by the return,—
a: record the participant’s activities; and
b: record the participant’s emissions and removals as calculated and, if required, as verified under section 62(1)(b)
c: contain an assessment of the participant’s—
i: liability to surrender units in respect of the participant’s emissions; and
ii: entitlement to receive New Zealand units for the participant’s removals; and
d: be accompanied by such other information as may be prescribed; and
e: be accompanied by the prescribed fee (if any); and
f: be signed by the participant.
2A:
3: The participant must submit the annual emissions return under subsection (1) by submitting it in the prescribed manner and format.
4: Following the submission of an annual emissions return under subsection (1), a participant must, by 31 May, surrender the number of units listed in the participant’s assessment under subsection (2)(c)(i).
5: Despite the rest of this section, a participant in an activity of standard forestry or permanent forestry (on post-1989 forest land) must instead submit emissions returns as required by Part 5
6: To avoid doubt, a person carrying out an activity on land to which section 179A Schedule 3 Section 65 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 65(1) replaced 1 January 2023 section 245(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 65(1A) repealed 1 January 2023 section 245(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 65(2)(b) amended 1 January 2023 section 245(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 65(2A) repealed 1 January 2023 section 245(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 65(2A)(a) amended 23 June 2020 section 78(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 65(4) replaced 26 November 2024 section 13 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 65(5) replaced 1 January 2023 section 245(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 65(6) inserted 1 January 2023 section 245(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
66: Quarterly returns for other removal activities
1: Despite anything in this Act, a person who is a participant in respect of an activity listed in Part 2
a: 31 March:
b: 30 June:
c: 30 September.
2: An emissions return referred to in subsection (1) must—
a: only relate to activities listed in Part 2
b: in respect of each activity covered by the return, be in respect of the period—
i: commencing on the later of—
A: the day the person became a participant in respect of the activity; or
B: the day after the end of the period covered by the participant’s last emissions return in respect of the activity; and
ii: ending on a date specified in subsection (1); and
c: contain the information specified in section 65(2)
d: be submitted in accordance with section 65(3)
3: Despite anything in section 65 Section 66 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
67: Retention of emissions records
1: A participant must keep sufficient records to enable the EPA Schedule 3 4
a: the activities carried out by the participant; and
b: the emissions and removals from those activities as calculated and, if required, as verified under section 62(1)(b)
c: the participant’s assessment of the participant’s—
i: liability to surrender units; and
ii: entitlement to receive New Zealand units; and
d: any other information contained in an emissions return submitted by the participant.
2: The records specified in subsection (1) must—
a: include the records specified in section 62(1)(d)
b: in the case where they relate to a forestry activity
c: in every other case, be retained for a period of at least 7 years after the end of the year to which they relate. Section 67 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 67(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 67(1)(b) amended 1 January 2023 section 246(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 67(2)(a) amended 1 January 2023 section 246(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 67(2)(b) amended 1 January 2023 section 246(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
2: Issuing and allocating New Zealand units
Subpart 2 heading substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
68: Issuing New Zealand units
1: The Minister may, at any time, direct the Registrar to issue New Zealand units into a Crown holding account.
2: Before giving a direction, the Minister must—
a: consult the Minister of Finance; and
b: have regard to the following matters:
i:
ii: international climate change obligations; and
iii: the proper functioning of the emissions trading scheme
iv: any other matters that the Minister considers relevant; and
c: if the direction under subsection (1) relates to issuing New Zealand units into a Crown holding account on or after 1 January 2031, and if the Paris Agreement does not provide for a commitment period that starts on that date
i: New Zealand's annual emissions for the 5 years (on record) before the year of the direction under consideration; and
ii: the report of the most recent review completed under section 160(1)
iii: international climate change obligations; and
iv: New Zealand's anticipated future international obligations.
3: The Registrar must give effect to a direction given by the Minister under subsection (1).
4: As soon as practicable after giving a direction under subsection (1), the Minister must—
a: publish a copy of the direction in the Gazette
b: ensure that the direction is accessible via the Internet site of the EPA
c: present a copy of the direction to the House of Representatives.
5: Each copy of the direction under subsection (4) must be accompanied by a statement setting out how the Minister has had regard to the matters specified in subsection (2)(b) and, if relevant, subsection (2)(c). Section 68 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 68(2)(b)(i) repealed 23 June 2020 section 79(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 68(2)(b)(ii) replaced 23 June 2020 section 79(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 68(2)(b)(iii) amended 23 June 2020 section 79(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 68(2)(c) amended 23 June 2020 section 79(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 68(2)(c)(iii) replaced 23 June 2020 section 79(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 68(4)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
69: Notification of intention regarding New Zealand units
Section 69 repealed 23 June 2020 section 80 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Allocation of New Zealand units in relation to pre-1990 forest land Heading inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Heading amended 23 June 2020 section 81 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
70: Allocation plan issued
1: The Climate Change (Pre-1990 Forest Land Allocation Plan) Order 2010
2: The allocation plan may be revoked but not amended or replaced.
3: The allocation plan came into force on the day after the date it was presented to the House of Representatives.
4: The allocation plan is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (4). Legislation Act 2019 requirements for secondary legislation referred to in subsection (4) Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 70 replaced 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 70(4) replaced 28 October 2021 section 3 Secondary Legislation Act 2021
71: Correction of allocation plans
Section 71 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
72: Allocation in respect of pre-1990 forest land
Section 72 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
73: Minister to appoint person to hold certain New Zealand units
Section 73 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
74: Allocation to owners of fishing quota
Section 74 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
75: Consultation on pre-1990 forest land allocation plan
Section 75 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
76: Consultation on fishing allocation plan
Section 76 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
77: Determinations made in accordance with allocation plan
Section 77 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
78: Power to revoke and replace determinations
Section 78 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
79: Effect of new determination
Section 79 repealed 23 June 2020 section 82 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Allocation of New Zealand units in relation to industry Heading inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Heading amended 26 November 2024 section 14 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
80: Criteria for allocation of New Zealand units to industry
1: A person is eligible for an allocation of New Zealand units for an eligible industrial activity in respect of a year if the person carries out the activity at any time in a year.
2: Subsection (1) is subject to sections 86E 161D(7) Section 80 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
81: Entitlement to provisional allocation for eligible industrial activities
1: Subject to section 82 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,—
a: for a moderately emissions-intensive eligible industrial activity,—
i: 0.6 in each year until and including 2020; and
ii: in each year after 2020, the level of assistance from the previous year less the applicable phase-out rate:
b: for a highly emissions-intensive eligible industrial activity,—
i: 0.9 in each year until and including 2020; and
ii: in each year after 2020, the level of assistance from the previous year less the applicable phase-out rate ∑ 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.
2: In this section, the applicable phase-out rate
a: if regulations have not been made under section 84A 84B
i: 0.01 for each year after 2020 until and including 2030; and
ii: 0.02 for each year after 2030 until and including 2040; and
iii: 0.03 for each year after 2040; and
b: if regulations have been made under section 84A 84B Section 81 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 81(1) formula item LA replaced 23 June 2020 section 83(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 81(2) inserted 23 June 2020 section 83(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
82: 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 section 81
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 83(2) Section 82 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
83: 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 84
a: determining the person’s final allocation entitlement for the eligible industrial activity in respect of the year in accordance with the formula in subsection (2); and
b: then determining the annual allocation adjustment in accordance with the formula in subsection (3).
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,—
a: for a moderately emissions-intensive eligible industrial activity,—
i: 0.6 in each year until and including 2020; and
ii: in each year after 2020, the level of assistance from the previous year less the applicable phase-out rate:
b: for a highly emissions-intensive eligible industrial activity,—
i: 0.9 in each year until and including 2020; and
ii: in each year after 2020, the level of assistance from the previous year less the applicable phase-out rate ∑ 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.
2A: In subsection (2), the applicable phase-out rate
a: if regulations have not been made under section 84A 84B
i: 0.01 for each year after 2020 until and including 2030; and
ii: 0.02 for each year after 2030 until and including 2040; and
iii: 0.03 for each year after 2040; and
b: if regulations have been made under section 84A 84B
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 EPA section 86B 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)—
a: is a negative number, then the person is entitled to be allocated the number of units in the annual allocation adjustment:
b: is a positive number, then the person is liable to repay the number of units in the annual allocation adjustment.
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 86
6: If an eligible person is liable to repay 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—
i: the person must record the adjustment for the year in the person's application for a provisional allocation for the following year; and
ii: subject to section 86B EPA EPA EPA
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, then the person must—
i: by 30 April in the year following the year to which the annual allocation adjustment relates, notify the EPA
ii: by 31 May in the year following the year to which the annual allocation adjustment relates, repay the number of units in the annual allocation adjustment by transferring the units to a Crown holding account designated by the EPA
7: If a person is required to repay units under this section, then the units repaid must be of a type that may be transferred to a surrender account at the time the units are repaid. Section 83 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 83(2) formula item LA replaced 23 June 2020 section 84(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 83(2A) inserted 23 June 2020 section 84(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 83(3) formula item PA amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 83(6)(a)(ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 83(6)(b)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 83(6)(b)(ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 83(7) replaced 23 June 2020 section 84(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
84: 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,—
a: calculate the person’s final allocation entitlement for the activity for the year in accordance with the formula in section 83(2)
b: using the formula in section 83(3) section 83(3)
c: if the closing allocation adjustment is—
i: a negative number, apply to the EPA section 86
ii: a positive number, notify the EPA EPA
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—
a: is not immediately to be treated as having ceased to carry out the activity; but
b: must, if the person does not carry out the activity for a period of 3 months in the year, notify the EPA
c: must, if given notice by the EPA EPA the EPA's
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—
a: is not required to comply with section 83
b: may not calculate an annual allocation adjustment under section 83
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,—
a: may calculate an annual allocation adjustment for the year in accordance with the following formula: AA = PA – FA – CAA 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 for the year notified by the EPA section 86B FA is the person's final allocation entitlement for the eligible industrial activity for the year (which must be calculated in accordance with section 83(2) CAA is the amount of the person’s closing allocation adjustment for the eligible industrial activity; and
b: is entitled to be allocated the number of units in the person’s annual allocation adjustment (as calculated under paragraph (a)) in accordance with section 83(5)
5: Section 83(7) section 83 Section 84 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 84(1)(c)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 84(1)(c)(ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 84(2)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 84(2)(c) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 84(4)(a) formula item PA amended 1 January 2013 section 33 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
84AA: Validated allocation adjustment for projected data
1: This section applies if—
a: the Minister has issued a notice in respect of an activity in accordance with section 161F(5) section 161D(3)(a)
b: regulations have been made—
i: on the Minister’s recommendation based on the determination referred to in paragraph (a); and
ii: that affect the entitlement of eligible persons to the allocation of New Zealand units for the activity in any of those years.
2: If a new activity (within the meaning of section 161F(1)
a: that the activity was highly emissions-intensive in any year, the regulations must prescribe the activity as highly emissions-intensive for that year:
b: that the activity was not moderately emissions-intensive or highly emissions-intensive in any year, the regulations must have the effect of removing the eligible industrial activity for that year.
3: Section 161A(5)
4: An eligible person who has received an allocation (other than a provisional allocation that is yet to be adjusted under section 83 84
a: calculate the person’s final allocation entitlement for the activity for the year in accordance with the formula in section 83(2)
b: using the formula in subsection (6), calculate the person’s validated allocation adjustment; and
c: if the validated allocation adjustment is—
i: a negative number, apply to the EPA under section 86
ii: a positive number, notify the EPA of the person’s validated allocation adjustment and repay the number of units in the validated allocation adjustment by transferring the units to a Crown holding account designated by the EPA.
5: If subsection (4)(c) applies, the eligible person must apply to or notify the EPA in accordance with that subsection—
a: at the time that the person next applies to or notifies the EPA under section 83 84(1)
b: if the person has already applied to or notified the EPA under section 84(1)
6: The formula for the calculation of a person’s validated allocation adjustment is as follows: VA = RA – FA where— VA is the person’s validated allocation adjustment of units for the eligible industrial activity for the year RA is the allocation that the person has received for the eligible industrial activity for the year (as adjusted under section 83 84 FA is the person’s final allocation entitlement for the eligible industrial activity for the year calculated under section 83(2) Section 84AA inserted 25 August 2023 section 12 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
84A: Regulations setting decreased phase-out rates
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make or amend regulations to set a decreased phase-out rate to be used—
a: in respect of 1 or more eligible industrial activities for the purposes of sections 81(1) 83(2)
b: for a year or years beginning on or after 1 January 2031.
2: The Minister must not recommend the making or amendment of regulations under this section to set a decreased phase-out rate for an eligible industrial activity unless—
a: the Climate Change Commission has recommended (under section 5ZOB
b: the Minister has considered the recommendation and complied with the requirements of section 84C
3: In order to apply to a year, the regulations must be made or amended before the beginning of the year.
4: In this section, decreased phase-out rate
a: less than the rate in sections 81(2)(a) 83(2A)(a)
b: at least—
i: 0.01 for a year in the period beginning on 1 January 2031 and ending on 31 December 2040; or
ii: 0.02 for a year in the period beginning on 1 January 2041 and ending on 31 December 2050.
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 84A inserted 23 June 2020 section 85 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 84A(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
84A: Temporary suspension of allocation entitlement for eligible industrial activities
Section 84A repealed 1 January 2019
84B: Regulations setting increased phase-out rates
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, make or amend regulations to set an increased phase-out rate to be used—
a: in respect of 1 or more eligible industrial activities for the purposes of sections 81(1) 83(2)
b: for an emissions budget period beginning on or after 1 January 2026.
2: Regulations made in respect of an emissions budget period must include a statement of what phase-out rate the Minister intends to set in respect of the subsequent emissions budget period.
3: The Minister must not recommend the making or amendment of regulations under this section to set an increased phase-out rate for an eligible industrial activity unless—
a: the Climate Change Commission has recommended (under section 5ZOB
b: the Minister has considered the recommendation and complied with the requirements of section 84C
4: In order to apply to an emissions budget period, the regulations must be made or amended before the beginning of the emissions budget period.
5: However, the regulations may apply to an emissions budget period, despite being made or amended during that period, if—
a: the emissions budget for the emissions budget period has been revised; or
b: the Minister is satisfied that, since the regulations were made or last considered, there has been a significant change that affects the considerations listed in section 84C(3)
6: In this section, increased phase-out rate sections 81(2)(a) 83(2A)(a)
7: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 84B inserted 23 June 2020 section 85 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 84B(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
84C: Procedure for regulations setting phase-out rates
1: Before recommending the making or amendment of regulations under section 84A 84B
2: See sections 3A 3B section 84A 84B
3: Before recommending the making or amendment of regulations under section 84B
a: any targets or budgets set for reducing emissions of greenhouse gases; and
b: New Zealand’s nationally determined contributions under the Paris Agreement; and
c: the level of risk of emissions leakage (increased emissions overseas as a result of emissions reductions in New Zealand, for example, an activity being relocated outside of New Zealand to reduce the emissions-related costs for the activity), based on—
i: the emissions-related costs and policies in competing jurisdictions; and
ii: the markets for international trade in the products produced by the activity; and
iii: the ability of affected eligible persons to pass on increased costs to customers; and
d: the risk that the value of the allocation for the activity will exceed the cost of meeting the emissions trading scheme obligations in relation to the activity; and
e: other sources of supply into the emissions trading scheme, including offshore emissions reductions; and
f: the availability of low-emission technologies related to the activity; and
g: international climate change obligations; and
h: the proper functioning of the emissions trading scheme; and
i: the cost to the taxpayer of providing allocations for the activity; and
j: the recommendations made by the Climate Change Commission under section 5ZOB
k: any other matters that the Minister considers relevant.
4: Subsection (5) applies if—
a: the Minister decides to recommend the making of regulations under section 84A 84B
b: the Minister decides to recommend the amending of regulations under section 84A 84B
i: recommended that they be amended differently; or
ii: did not recommend that they be amended at all; or
c: the Minister decides not to recommend the making or amending of regulations under section 84A 84B
5: The Minister must, as soon as is reasonably practicable, but within 16 weeks, after receiving the Commission’s recommendation, prepare a report of the reasons for the difference between the Minister’s and the Commission’s recommendation and—
a: present a copy of the report to the House of Representatives; and
b: make the report publicly available. Section 84C inserted 23 June 2020 section 85 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
85: Allocation of New Zealand units in relation to agriculture
Section 85 repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
85A: Temporary suspension of phase-out rate for assistance under section 85(2)
Section 85A repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
85B: Temporary suspension of allocation entitlement for eligible agricultural activities
Section 85B repealed 1 January 2017 section 7 Climate Change Response (Removal of Transitional Measure) Amendment Act 2016
86: Applications for allocation of New Zealand units for industry
1: An eligible person who wishes to be allocated New Zealand units for an eligible industrial activity
1A: The application must be made,—
a: for a provisional allocation for an eligible industrial activity, in the period starting on 1 January and ending on 30 April in the year in respect of which the allocation is sought:
b: for an allocation for an eligible industrial activity (other than a provisional allocation), in the period starting on 1 January and ending on 30 April in the year after the year in respect of which the allocation is sought.
c:
2: An application under subsection (1) must—
a: be in the prescribed form; and
b: contain, as relevant, the applicant’s assessment of their—
i: provisional allocation entitlement in respect of the year calculated in accordance with section 81
ii: final allocation entitlement in respect of the previous year calculated in accordance with section 83(2)
iii: annual allocation adjustment relating to the previous year calculated in accordance with section 83(3) 84(4)
iv: closing allocation adjustment for the year calculated as required under section 84(1)(b)
c: be accompanied by—
i: any other information that the EPA
ii: the prescribed fee (if any); and
d: contain the account number of the eligible person’s holding account, required by section 61 Section 86 substituted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 86 heading amended 26 November 2024 section 15(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86(1) replaced 23 June 2020 section 88 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86(1) amended 26 November 2024 section 15(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86(1A) inserted 23 June 2020 section 88 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86(1A)(c) repealed 26 November 2024 section 15(3) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86(2)(b) replaced 26 November 2024 section 15(4) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86(2)(c)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
86A: Provisional allocation to industry in and after 2013
Despite section 86(1A)(a) section 161A(1)(a) prescribing year
a: commencing on the date the regulation prescribing the activity as an eligible industrial activity comes into force; and
b: ending on the date 3 months after the date in paragraph (a). Section 86A inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 86A amended 23 June 2020 section 89 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
86B: Decisions on applications for allocations of New Zealand units to industry
1: On receipt of an application under section 86 in respect of an eligible industrial activity EPA
a: whether the applicant is eligible to receive an allocation in respect of the application:
b: if in the EPA's
i: include any units to which the person is entitled in respect of an annual allocation adjustment for the previous year; or
ii: be net of any units required to be deducted from the person’s provisional allocation entitlement in accordance with section 83(6)(a)
2: If the EPA EPA
a: notify the applicant of—
i: the number of units the applicant has been allocated in respect of the application and EPA
ii: the person's right under section 144
b: comply with section 86BB
3: If the EPA section 83(6)(a) EPA
a: the EPA's
b: the reasons for the decision; and
c: if the result of the decision is that the person is liable to repay more units than the number of units to which the person would have been entitled in respect of the application, the number of units in the shortfall; and
d: the person's right under section 144
4: If a person has failed to notify the EPA section 83(6)(b) 84(1)(c)(ii) EPA EPA EPA
5: The EPA eligible industrial activity
a: publish the decision in the Gazette
b: ensure it is accessible via the Internet site of the EPA
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 EPA eligible industrial activity EPA Section 86B inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 86B heading amended 23 June 2020 section 90(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86B(1) amended 23 June 2020 section 90(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86B(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(2)(a)(i) amended 23 June 2020 section 90(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86B(2)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(2)(b) replaced 23 June 2020 section 90(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86B(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(3)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(5) amended 26 November 2024 section 16 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86B(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(5)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86B(6)(b) amended 26 November 2024 section 16 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86B(6)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
86BA: Decisions on applications for allocations of New Zealand units to agriculture
Section 86BA repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
86BB: Transfer of allocated units to industry, less any units that must be surrendered or repaid
The EPA must apply section 64A
a: the units allocated to an applicant under section 86B potential transfer units
b: the applicant is the recipient
c: the start of the year to which the allocation relates is the relevant time Section 86BB inserted 23 June 2020 section 91 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
86BC: Transfer of allocated units to agriculture, less any units that must be surrendered or repaid
Section 86BC repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
86C: Reconsideration of allocation decisions
1: Without limiting section 144 EPA section 86B EPA's
a: of an error in the calculation of the person’s entitlement to an allocation or liability to repay units under this subpart; or
b: the person has provided altered, false, incomplete, or misleading information in or with an application.
2: The EPA section 86B(4)
3: However, if the EPA section 83(6)(b) 84(1)(c)(ii) section 86 86E 144 EPA section 86B(4)
4: If the EPA section 86B(4) EPA section 83(6)(b) 84(1)(c)(ii)
a: the particulars of the decision, or variation or revocation of the decision; and
b: any grounds or information upon which the decision or variation or revocation of the decision was based; and
c: the person's right under section 144
5: If the result of a decision in relation to an annual allocation adjustment or a closing allocation adjustment under section 86B(4) section 144
a: units to which the person was not entitled, or to have repaid too few units, the person must within 60 working days of EPA
b: fewer units than the person was entitled to, or to have repaid too many units, the EPA
5A:
6: Section 83(7) Section 86C inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 86C(1) amended 26 November 2024 section 17 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86C(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86C(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86C(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86C(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86C(5)(a) amended 1 January 2013 section 38(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 86C(5)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86C(5)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86C(5A) repealed 23 June 2020 section 92(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
86D: Retention of records and materials in relation to allocation
1: A person who has been allocated New Zealand units for an eligible industrial EPA
a: that the person was an eligible person; and
b: the person’s calculations of the person’s entitlement to be allocated New Zealand units or liability to repay units under the relevant subsections in sections 81 to 85
c: the total amount of each product produced by the person from the eligible industrial
d: any other prescribed information.
2: The records specified in subsection (1)—
a: must include—
i: a copy of any application made to the EPA section 86 EPA section 83(6)(b) 84(1)(c)(ii)
ii: any information used to prepare the application or notice; and
b: must be retained for a period of at least 7 years after the end of the year to which the application or notice relates. Section 86D inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 86D(1) amended 26 November 2024 section 18 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86D(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 86D(1)(c) amended 26 November 2024 section 18 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86D(2)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
86E: EPA
1: For the purposes of making a decision under section 86B the EPA
a: a person who has made an application for an allocation of New Zealand units or notified an annual allocation adjustment or closing allocation adjustment:
b: a person who has failed to notify an annual allocation adjustment or closing allocation adjustment as required by section 83(6)(b) 84(1)(c)(ii)
c: a person who may be affected by a reconsideration of the decision
2: A notice under subsection (1) must be given before the
3: A notice under subsection (1) may require the information to be provided that is necessary to determine whether a person is or was—
a: eligible for an allocation of New Zealand units; or
b: entitled to the allocation that the person has applied for or received (in relation to an annual allocation adjustment or a closing allocation adjustment).
4: The EPA may, for the purpose of verifying whether a decision made under section 86B
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 EPA, and who has applied for an allocation under section 86 Section 86E inserted 8 December 2009 section 32 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 86E heading amended 23 June 2020 section 93(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86E(1) amended 26 November 2024 section 19 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86E(1) amended 23 June 2020 section 93(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86E(1) amended 23 June 2020 section 93(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86E(1)(c) amended 23 June 2020 section 93(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86E(2) amended 23 June 2020 section 93(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86E(4) replaced 23 June 2020 section 93(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 86E(4) amended 26 November 2024 section 19 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 86E(6) replaced 23 June 2020 section 93(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
86F: Balance of units at end of true-up period or other balance date
Section 86F repealed 1 January 2013 section 39 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
3: Environmental Protection Authority
Subpart 3 heading substituted 5 December 2011 section 11 Climate Change Response Amendment Act 2011 General administrative provisions Heading added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
87: Functions of
EPA
1: The functions of the EPA
a: keep a register under section 56 section 57
b: receive and collate the data and other information provided by participants under the ETS participant provisions
ba: administer allocations relating to industry sections 80 to 86E
c: approve the use of unique emissions factors by participants in accordance with section 91
d: direct the Registrar to transfer New Zealand units to which participants are entitled for removal activities to participants’ holding accounts; and
e: ensure participants and eligible persons the ETS participant provisions and any regulations made under those provisions
f: publish information in accordance with section 89
g: issue emissions rulings to help persons meet their obligations under the ETS participant provisions
2: The EPA section 88(1)
3: For the avoidance of doubt, the EPA undertakes the functions described in subsection (1) on behalf of the Crown. Section 87 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 87 heading amended 5 December 2011 section 12(1) Climate Change Response Amendment Act 2011 Section 87(1) amended 5 December 2011 section 12(1) Climate Change Response Amendment Act 2011 Section 87(1)(b) amended 23 June 2020 section 94(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 87(1)(ba) inserted 8 December 2009 section 33(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 87(1)(ba) amended 26 November 2024 section 20 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 87(1)(d) substituted 8 December 2009 section 33(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 87(1)(e) amended 23 June 2020 section 94(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 87(1)(e) amended 23 June 2020 section 94(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 87(1)(e) amended 1 January 2013 section 40 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 87(1)(g) amended 23 June 2020 section 94(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 87(2) amended 5 December 2011 section 12(1) Climate Change Response Amendment Act 2011 Section 87(3) added 5 December 2011 section 12(2) Climate Change Response Amendment Act 2011
87A: Delegation by EPA
1: The EPA must not delegate its power to appoint the Registrar under section 11
2: In all other respects, section 73
d: a person, or an office holder in a department of the public service Section 87A inserted 5 December 2011 section 13 Climate Change Response Amendment Act 2011 Section 87A(2) amended 7 August 2020 section 135 Public Service Act 2020
88: Directions to
EPA
1: The Minister may give general directions to the EPA EPA's the ETS participant provisions or any regulations made under those provisions
2: Subsection (1) does not authorise the Minister to give directions about the exercise of powers and performance of functions in relation to a particular person.
3: As soon as practicable after giving a direction under subsection (1), the Minister must—
a: publish a copy of the direction in the Gazette
b: make a copy of the direction accessible via the Internet site of the EPA
c: present a copy of the direction to the House of Representatives.
4: Before giving a direction under subsection (1), the Minister must comply with section 115(1) Section 88 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 88 heading amended 5 December 2011 section 14(1) Climate Change Response Amendment Act 2011 Section 88(1) amended 23 June 2020 section 95 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 88(1) amended 5 December 2011 section 14(1) Climate Change Response Amendment Act 2011 Section 88(1) amended 5 December 2011 section 14(2) Climate Change Response Amendment Act 2011 Section 88(3)(b) amended 5 December 2011 section 14(3) Climate Change Response Amendment Act 2011 Section 88(4) added 5 December 2011 section 14(4) Climate Change Response Amendment Act 2011
89: EPA
1: The EPA for each reporting year
a: in respect of each activity listed in Schedule 3
i: registered under section 56
ii: removed from the register under section 59
b: in respect of each activity listed in Schedule 4
i: registered under section 57
ii: removed from the register under sections 58(4) 59
c: the total number and type of activities reported in emissions returns; and
d: the total quantity of emissions and removals reported in emissions returns; and
e:
f: the number of participants who failed to comply with their obligation to—
i: submit an emissions return required by this Act
ii: surrender or repay units as required by this Act
g: the total number of units surrendered; and
h: the total number of New Zealand units transferred for removal activities; and
i: the total number of New Zealand units allocated under subpart 2 ; and
j: the total sum of money paid to a Crown Bank Account in accordance with section 178A(2)(a)(ii) or (iii)
k: the total sum of money paid by the EPA in accordance with section 178A(2)(b)(ii) or (iii)
1A: The EPA must, for each reporting year, publish information about—
a: each qualifying penalty imposed in that reporting year; and
b: each qualifying penalty imposed in a previous reporting year that has any amount still owing at any time in that reporting year.
1B: The information required for each of those penalties is—
a: the name of the person on whom the penalty was imposed; and
b: the section under which the penalty was imposed; and
c: the amount of the penalty; and
d: the date on which the last payment for the penalty was due and, if the penalty has been paid in full, the date on which it was paid in full; and
e: in the case of a penalty imposed under section 134 or 134AA
f: in the case of a penalty imposed under sections 134A to 134D
1C: In subsection (1A) qualifying penalty
a: a penalty imposed under section 134 or 134AA
b: a penalty imposed under sections 134A to 134D
c: a penalty imposed under section 190E 190H
2: The EPA—
a: must publish the information specified in subsections (1) to (1B)
b: may publish the information specified in subsections (1) to (1B)
2A: In this section, reporting year
3:
4: Section 89 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 89 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 89(1) amended 23 June 2020 section 96(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 89(1)(e) repealed 1 January 2021 section 213(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1)(f)(i) amended 23 June 2020 section 96(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1)(f)(ii) amended 23 June 2020 section 96(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1)(i) substituted 8 December 2009 section 34(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 89(1)(i) amended 1 January 2013 section 41(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 89(1)(j) inserted 1 January 2013 section 41(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 89(1)(k) inserted 1 January 2013 section 41(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 89(1A) inserted 1 January 2021 section 213(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1B) inserted 1 January 2021 section 213(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1B)(e) amended 25 August 2023 section 4(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 89(1C) inserted 1 January 2021 section 213(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(1C)(a) amended 25 August 2023 section 4(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 89(1C)(c) inserted 1 January 2023 section 247 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(2) replaced 1 January 2013 section 41(3) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 89(2)(a) amended 1 January 2021 section 213(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(2)(b) amended 1 January 2021 section 213(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(2A) inserted 1 January 2013 section 41(3) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 89(3) repealed 23 June 2020 section 96(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 89(4) repealed 1 January 2021 section 213(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
89A: EPA to publish participant data on emissions and removals
1: The EPA must publish, for each participant or consolidated group for whom there is an emissions return,—
a: the name of the participant, or names of the participants in the consolidated group; and
b: the period to which the return or returns relate; and
c: the data in paragraphs (d) to (f) in tonnes of carbon dioxide equivalent and—
i: broken down by participant if a return relates to more than 1 participant; and
ii: broken down by activity if a return relates to more than 1 activity, except that the emissions or removals of a participant in any forestry activity must be combined for all of their forestry activities; and
d: if available, the emissions set out in the participant’s or group’s return or returns; and
e: if available, the removals set out in the participant’s or group’s return or returns; and
f: if the data in paragraphs (d) and (e) is not available, the net emissions or removals set out in the participant’s or group’s return or returns.
2: The EPA—
a: must publish the information at least annually, as soon as practicable after the date on which emissions returns are due; and
b: may publish the information, in whole or in part, at any other time.
3: The EPA must publish the information in whatever manner and format that the EPA considers appropriate.
4: The EPA must, at least 10 working days before publishing the information, give notice on its Internet site of the date on which it will publish the information. Section 89A inserted 23 June 2020 section 97 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
90: EPA
1: The EPA the ETS participant provisions and Part 2
a: the form and electronic format of any forms, applications, returns, information accompanying any applications or returns, or other documents that are not otherwise prescribed in regulations made under this Act; and
b: different forms or formats for different classes of participant or person or for different activities or purposes; and
c: the manner in which any application, return, information, or other document must be submitted or notified under the ETS participant provisions or Part 2
2: The EPA the EPA
3: The production by the EPA
4: To avoid doubt, if the EPA EPA Section 90 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 90 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 90(1) amended 23 June 2020 section 98(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 90(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 90(1)(b) replaced 23 June 2020 section 98(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 90(1)(c) amended 23 June 2020 section 98(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 90(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 90(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 90(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
91: Approval of unique emissions factors
1: The EPA section 62(1)(b)
a: regulations made under section 164
b: the EPA section 164
2: An approval under subsection (1)—
a: may be subject to the conditions that the EPA
b: ceases to have effect on the earliest of the following dates:
i: the date of a material change in any of the information or factors on which the approval is based; or
ii: the date of a material change to this Act or to any regulations to which the approval relates; or
iii: the date on which any of the conditions to which the approval is subject cease to be met or complied with.
3: If the EPA EPA
a: notify the applicant of the approval; and
b: publish in the Gazette
i: the name of the participant; and
ii: a description of the activity; and
iii: the details of the unique emissions factor the EPA Section 91 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 91(1) amended 1 January 2023 section 248 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 91(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 91(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 91(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 91(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 91(3)(b)(iii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
91A: Correction of unique emissions factors
1: If the EPA is satisfied that the unique emissions factor approved for a participant under section 91
2: The EPA must—
a: notify the applicant of the amended approval; and
b: publish a notice in the Gazette
i: the name of the participant; and
ii: a description of the activity; and
iii: the details of the unique emissions factor that the EPA has, by amendment, approved the participant to use when calculating emissions or removals for the activity (the corrected unique emissions factor
iv: the date on which the corrected unique emissions factor has effect, which must be no earlier than the date on which the unique emissions factor became incorrect.
3: The corrected unique emissions factor has effect on and after the date specified by the notice in the Gazette
4: Information contained in an emissions return, for that or any later date, that is based on the incorrect unique emissions factor may be treated as being incorrect for the purposes of section 120 Section 91A inserted 23 June 2020 section 99 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
92: Recognition of verifiers
1: The EPA section 163 section 62(1)(a) section 164
2: A person or organisation may be recognised by the chief executive as able to verify information or unique emissions factors in respect of—
a: 1 or more types of data or information or calculations of types of emissions or removals:
b: 1 or more activities in Schedule 3 4
3: The EPA section 163 Section 92 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 92(1) amended 1 January 2023 section 249 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 92(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 92(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Verification and inquiry Heading added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
93: Appointment of enforcement officers
1: The EPA may appoint 1 or more persons who are employees of the EPA as enforcement officers to exercise 1 or more of the powers and perform the functions conferred on enforcement officers under this Part (which relate to verification and inquiry about compliance with the ETS participant provisions)
2: If the EPA delegates the power to appoint a person as an enforcement officer to the chief executive of a department of the public service Public Service Act 2020
3: The EPA must supply each enforcement officer with a warrant of authorisation that clearly states the powers and functions of the officer.
4: An enforcement officer who exercises, or purports to exercise, a power conferred on the enforcement officer under this Act must carry and produce, if required to do so,—
a: his or her warrant of authorisation; and
b: evidence of his or her identity.
5: An enforcement officer must, on the termination of the enforcement officer’s appointment, surrender his or her warrant to the chief executive.
6: Section 93 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 93(1) substituted 5 December 2011 section 15(1) Climate Change Response Amendment Act 2011 Section 93(1) amended 23 June 2020 section 100 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 93(2) substituted 5 December 2011 section 15(1) Climate Change Response Amendment Act 2011 Section 93(2) amended 7 August 2020 section 135 Public Service Act 2020 Section 93(3) substituted 5 December 2011 section 15(1) Climate Change Response Amendment Act 2011 Section 93(6) repealed 5 December 2011 section 15(2) Climate Change Response Amendment Act 2011
94: Power to require information
1: The EPA, the chief executive, or an enforcement officer
a: ascertaining whether a person is complying, or has complied, with the ETS participant provisions
b: ascertaining whether, or how, the EPA or the chief executive, as appropriate, should exercise any powers under the ETS participant provisions.
2: The information required to be provided under subsection (1) must,—
a: if required by the EPA, the chief executive, or an enforcement officer
b: be provided—
i: in the form specified by the EPA, the chief executive, or an enforcement officer
ii: within any reasonable time specified in the notice requiring the information; and
iii: free of charge. Section 94 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 94(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 94(1)(a) amended 23 June 2020 section 101(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 94(1)(b) replaced 23 June 2020 section 101(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 94(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 94(2)(b)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
95: Power to inquire
1: For the purpose of obtaining information for a purpose specified in section 94(1) the ETS participant provisions EPA or the chief executive may
a: appear before the EPA, or the chief executive,
b: produce any document or class of documents in the person’s possession or under the person’s control that is specified in the notice.
2: The EPA, or the chief executive, EPA, or the chief executive, Section 95 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 95(1) amended 23 June 2020 section 102 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 95(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 95(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 95(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
96: Inquiry before District Court Judge
1: For the purpose of obtaining information for a purpose specified in section 94(1) the ETS participant provisions EPA or the chief executive, if the EPA or the chief executive, as appropriate,
2: For the purposes of an inquiry under this section,—
a: the District Court Judge—
i: may, with respect to any matter that is relevant to the subject matter of the inquiry, summon and examine on oath all persons whom the EPA, the chief executive,
ii: has the same jurisdiction and authority regarding the summoning and examination of a person as the Judge would have in respect of a witness in a civil action within the Judge’s ordinary jurisdiction; and
b: the person summoned and examined has all the rights and is subject to all the liabilities that the person would have and be subject to if the person were a witness in a civil action within the Judge’s ordinary jurisdiction.
3: The EPA, the chief executive,
4: Every examination under this section must take place in chambers.
5: The statement of every person examined—
a: must be—
i: recorded in writing and signed by the person in the presence of the District Court Judge; and
ii: delivered to the chief executive; and
b: does not form part of the records of the court. Section 96 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 96(1) amended 23 June 2020 section 103 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 96(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 96(2)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 96(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
97: No criminal proceedings for statements under section 95 or 96
1: No person summoned or examined under section 95 96
2: The testimony of a person examined is not admissible as evidence in criminal proceedings against the person, except on a charge of perjury in relation to the testimony. Section 97 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
98: Expenses in relation to inquiries
The EPA or the chief executive may pay, or a District Court Judge may order the EPA or the chief executive to pay, to any person who has appeared before the EPA, or the chief executive, or an enforcement officer under section 95 section 96 Section 98 substituted 5 December 2011 section 19 Climate Change Response Amendment Act 2011
99: Obligation to maintain confidentiality
1: This section applies—
a: to the chief executive, the EPA, an enforcement officer, and any other person who performs functions or exercises powers of the chief executive, the EPA, or an enforcement officer under the ETS participant provisions
b: at the time during which, and any time after which, those functions are performed or those powers are exercised.
2: A person to whom this section applies—
a: must keep confidential all information that comes into the person’s knowledge when performing any function or exercising any power under the ETS participant provisions
b: must
i: with the consent of the person to whom the information relates or of the person to whom the information is confidential; or
ii: to the extent that the information is already in the public domain; or
iii: for the purposes of, or in connection with, the exercise of powers conferred by this Part or for the administration of this Act
iiia: for the purposes of, or in connection with, reporting requirements of the Public Finance Act 1989
iiib: to the Climate Change Commission for the purpose of assisting the Commission to perform its functions and duties and exercise its powers under this Act; or
iv: as provided under this Act or any other Act; or
v: in connection with any investigation or inquiry (whether or not preliminary to any proceedings) in respect of, or any proceedings for, an offence against this Act or any other Act; or
vi: for the purpose of complying with international climate change obligations
3: A person to whom this section applies commits an offence under section 130
4: Nothing in subsection (2) may be treated as prohibiting the chief executive or the EPA
a: providing or publishing general guidance in relation to the operation of the ETS participant provisions
b: with the prior approval of the Minister, preparing and supplying statistical information to any person in a form that does not identify any individual; or
c: providing information to any person about whether—
i: any land has a certain forestry classification or is exempt land; or
ii: they consider any land to be land that could be given any particular forestry classification available under section 196(a) Section 99 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 99(1)(a) substituted 5 December 2011 section 16(1) Climate Change Response Amendment Act 2011 Section 99(1)(a) amended 23 June 2020 section 104(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 99(2)(a) amended 23 June 2020 section 104(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 99(2)(b) amended 14 November 2019 section 10(1) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 99(2)(b)(iii) amended 5 December 2011 section 16(2) Climate Change Response Amendment Act 2011 Section 99(2)(b)(iiia) inserted 5 December 2011 section 16(3) Climate Change Response Amendment Act 2011 Section 99(2)(b)(iiib) inserted 14 November 2019 section 10(2) Climate Change Response (Zero Carbon) Amendment Act 2019 Section 99(2)(b)(vi) amended 23 June 2020 section 104(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 99(2)(b)(vi) amended 1 January 2013 section 42(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 99(4) amended 5 December 2011 section 16(4) Climate Change Response Amendment Act 2011 Section 99(4)(a) amended 23 June 2020 section 104(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 99(4)(c) replaced 23 June 2020 section 104(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
100: Power of entry for investigation
1: An enforcement officer may enter land or premises (excluding any dwellinghouse or marae) at any reasonable time during the ordinary hours of business to investigate whether a person is complying with the ETS participant provisions
2: During an investigation, an enforcement officer may—
a: require the production of, inspect, and copy any documents:
b: take samples of water, air, soil, organic matter, or any other thing:
c: carry out surveys, investigations, tests, inspections, or measurements (including those that involve leaving measuring equipment on the land or premises):
d: demand from the occupier any other information that the enforcement officer may reasonably require for the purpose of determining whether a person is complying with the ETS participant provisions
3: An enforcement officer who exercises the power of investigation under this section must give the occupier or owner reasonable notice of the enforcement officer’s intention to enter the land or premises, unless doing so would defeat the purpose of the entry.
4: A notice given under subsection (3) must specify—
a: when entry is to be made; and
b: the purpose for which the entry is required; and
c: that the entry is authorised under this section.
5: An enforcement officer who exercises the power of investigation under this section may be accompanied by any person or persons reasonably necessary to assist the enforcement officer with the investigation.
6: A person who provides assistance under subsection (5) may exercise the powers provided to enforcement officers under subsection (2)(a) to (c).
7: Nothing in this section limits the privilege against self-incrimination. Section 100 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 100(1) amended 23 June 2020 section 105(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 100(2)(d) amended 23 June 2020 section 105(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
101: Applications for warrants
1: A District Court Judge, Justice of the Peace, Community Magistrate, or Registrar of any court who, on written application made on oath by an enforcement officer authorised by the EPA section 129 132 133
2: Every search warrant may authorise the enforcement officer executing the warrant to do any of the following things:
a: enter and search the land, premises, dwellinghouse, or marae, at any time that is reasonable in the circumstances during the ordinary hours of business, within—
i: 10 working days of
ii: if the Judge or other person issuing the warrant is satisfied that special circumstances justify a longer period, any period of up to 20 working days
b: seize any document or other thing that the enforcement officer has reasonable cause to suspect may be evidence of the commission of an offence under section 129 132 133
c: take samples of water, air, soil, organic matter, or any other thing:
d: use the assistance of any person that is reasonably necessary in the circumstances:
e: use any force to enter (whether by breaking doors or otherwise) that is reasonable in the circumstances:
f: carry out surveys, investigations, tests, inspections, or measurements (including those that involve leaving measuring equipment on the land or premises).
3: An enforcement officer may not enter a dwellinghouse or marae unless that enforcement officer is accompanied by a constable
4: A person who provides assistance under subsection (2)(d) may exercise the powers provided to enforcement officers under subsection (2)(a), (b), (c), and (f). Section 101 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 101(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 101(2)(a)(i) amended 1 January 2013 section 43(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 101(2)(a)(ii) amended 1 January 2013 section 43(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 101(3) amended 1 October 2008 section 116(a)(ii) Policing Act 2008
102: Proof of authority must be produced
If powers are exercised under section 100 101
a: the enforcement officer’s warrant of authorisation and evidence of his or her identity; and
b: any notice given under section 100(3) section 101 Section 102 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
103: Notice of entry
1: If, when powers are exercised under section 100 101
a: the date and time of the entry or search; and
b: the purpose of the entry or search; and
c: the name and phone number of the enforcement officer; and
d: the right, under the Official Information Act 1982
e: an address at which inquiries may be made.
2: If the enforcement officer removes, or has removed, any document or other thing from any land, premises, dwellinghouse, or marae, the enforcement officer must hand to the occupier, or attach in a prominent place, a notice that—
a: lists all of the items taken; and
b: states—
i: where those items are being held; and
ii: if they are being held in 2 or more places, which items are being held at which place; and
c: provides information about—
i: the procedures to be followed to initiate a claim that privileged or confidential material has been seized; and
ii: access to and the disposition of seized items. Section 103 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
104: Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under
ETS participant provisions No document or other information obtained from a person under section 100 101 the ETS participant provisions Section 104 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 104 heading amended 23 June 2020 section 106(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 104 amended 23 June 2020 section 106(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
105: Return of items seized
Section 199
a: references in that section to a constable were references to an enforcement officer; and
b: the reference in that section to section 198 section 100 101 Section 105 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
106: Protection of persons acting under authority of this Part
No enforcement officer or person called upon to assist an enforcement officer who does an act, or omits to do an act, when performing a function or exercising a power conferred on that person by this Part is under any civil or criminal liability in respect of the act or omission, unless the person has acted, or omitted to act, in bad faith or without reasonable cause. Section 106 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Emissions rulings Heading added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
107: Applications for emissions rulings
1: A person may apply to the EPA
a: whether something that the person—
i: is doing is an activity listed in Schedule 3 4
ii: proposes to do would be an activity listed in Schedule 3 4
b: whether the person—
i: is a participant in respect of an activity listed in Schedule 3 Schedule 4
ii: would be either of those things if certain proposals were carried out or events happened:
c: the correct application of any provision contained in regulations made under section 161A 163 164 167 168 180G 181W 190F 191I 192U 193R 194B 196F 197A
ca: whether any of this Act’s requirements that relate to a decision that the EPA can make about forest land on land that the person has, or will have, an interest in are satisfied, or would be satisfied if certain proposals were carried out or events happened—for example, the requirements that must be satisfied—
i: for any forest land that is cleared to not be treated as deforested (for the purposes of this Act) under section 179A
ii: for pre-1990 forest land to be eligible for a decision to be made under section 180E(3)(a)
iii: for the EPA to approve an application relating to forest land:
d: any other matters prescribed in regulations made under section 168(1)(b)
2: Every application under subsection (1) must—
a: be in the prescribed form; and
b: state the name and address of the applicant; and
c: specify the matter on which the applicant seeks a ruling; and
d: specify the applicant’s opinion as to what the ruling should be; and
e: contain, or have attached, all information that is relevant to a proper consideration of the application; and
f: be accompanied by the prescribed fee (if any).
3: Section 107 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 107(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 107(1)(b) replaced 23 June 2020 section 107(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 107(1)(c) replaced 23 June 2020 section 107(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 107(1)(c) amended 26 November 2024 section 21 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 107(1)(c) amended 1 January 2023 section 250(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 107(1)(ca) inserted 23 June 2020 section 107(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 107(1)(ca)(ii) amended 1 January 2023 section 250(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 107(3) repealed 23 June 2020 section 107(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
107A: Insufficient information provided for ruling on entire application
1: If the EPA is satisfied that an application under section 107
a: requesting any further information from the applicant that the EPA considers necessary to assist in the consideration of the application; and
b: if the EPA already has information that is relevant to the application, describing the information and inviting the applicant to comment on or object to the information.
2: The EPA must—
a: provide a reasonable deadline for the applicant to reply to the notice; and
b: consider as part of the application—
i: any further information provided by the applicant; and
ii: the information already held by the EPA that is relevant to the application, and the applicant’s comments on or objections to that information.
3: If, after that, the EPA is satisfied that it has sufficient information to make a ruling on only part of the matter applied for (such as part of an activity or part of a geographical area), the EPA may—
a: give notice of that decision to the applicant; and
b: make a ruling under section 109 Section 107A inserted 23 June 2020 section 108 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
108: Matters in relation to which
EPA
1: The EPA
a: with respect to a provision that authorises or requires the EPA
i: impose or remit a penalty; or
ii: inquire into the correctness of any return or other information supplied by any person; or
iii: prosecute any person; or
iv: recover any debt owing by any person; or
b: if the information submitted with the application for the ruling, including (but not limited to) information submitted under section 107A(1) EPA
2: The EPA
a: the EPA
b: the matter on which the ruling is sought is subject to a review or appeal, or is the subject of proceedings, whether in relation to the applicant or any other person; or
c: the applicant has outstanding unpaid fees relating to an earlier emissions ruling application; or
d: the EPA
e: the matter on which the ruling is sought concerns an obligation to surrender units that are already due and payable, unless the application is received before the obligation arises; or
f: an assessment or amendment relating to the same person, activity, and period to which the proposed ruling would apply has been made (unless the application is received by the EPA
g: in the EPA's
i: the EPA but subject to section 107A
ii: it would be unreasonable to make a ruling in view of the resources available to the EPA Section 108 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 108 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(1) substituted 8 December 2009 section 36 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 108(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(1)(b) amended 23 June 2020 section 109(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 108(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2)(d) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2)(f) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2)(g) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2)(g)(i) amended 23 June 2020 section 109(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 108(2)(g)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 108(2)(g)(ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
109: Making of emissions rulings
1: The EPA applied for
a: a properly completed application for a ruling; and
b: all information that the EPA section 107A
2: Subject to section 114(2)
3: A ruling may be made subject to any conditions that the EPA considers appropriate, including any condition that a proposal is carried out or that something happens ( see section 107(1)(b)(ii) Example
The EPA may rule that a person is eligible to register as a participant in an activity of standard forestry
4: Subsection (1) is subject to section 108 section 107A(3)(b) Section 109 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 109(1) amended 23 June 2020 section 110(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 109(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 109(1)(b) amended 23 June 2020 section 110(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 109(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 109(3) replaced 23 June 2020 section 110(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 109(3) amended 1 January 2023 section 251 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 109(4) replaced 23 June 2020 section 110(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
110: Notice of emissions rulings
The EPA
a: an emissions ruling, together with the reasons for the ruling, and the conditions (if any) to which the ruling is subject; or
b: a decision to decline to make an emissions ruling, together with the reasons for the decision. Section 110 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 110 amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
111: Confirmation of basis of emissions rulings
At any time after an emissions ruling is made, the EPA EPA days of EPA
a: the information on which the emissions ruling is based remains accurate; and
b: the conditions (if any) to which the ruling is subject, have been, and continue to be, complied with. Section 111 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 111 amended 1 January 2013 section 45 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 111 amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
112: Notifying
EPA
1: A person must, as soon as practicable, notify the EPA
a: has made an application for an emissions ruling under section 107
b: becomes aware of a material change relating to the application before the emissions ruling is made by the EPA
2: A person who has obtained an emissions ruling under section 109 EPA
a: any material change that is relevant to the ruling:
b: any failure to comply with any of the conditions of the ruling.
3: The notification that a person provides under subsection (1) or (2) must state the date on which the person became aware of the material change or the failure to comply. Section 112 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 112 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 112(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 112(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 112(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
113: Correction of emissions rulings
1: The EPA EPA
2: The EPA
3: The correction to a ruling applies to the applicant from the date on which notice of the corrected ruling is given to the applicant.
4: Despite subsection (3), if the corrected ruling has the effect of—
a: increasing the number of units that a person is required to surrender, or decreasing the number of New Zealand units that a person is entitled to receive, in respect of a year, then the ruling as given prior to correction under this section must be applied to that year; or
b: decreasing the number of units that a person is required to surrender, or increasing the number of New Zealand units that a person is entitled to receive, in respect of a year, then the corrected ruling must be applied to that year. Section 113 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 113(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 113(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
114: Cessation of emissions rulings
1: An emissions ruling ceases to have effect on the earliest of the following dates:
a: the date of a material change in any of the information or facts on which the ruling is based; or
b: the date of a material change to this Act or to any regulations relevant to the ruling; or
c: the date on which any of the conditions to which the ruling is subject cease to be met or complied with; or
d: the date of a failure to satisfy the requirements of the EPA section 111
2: An emissions ruling does not come into effect if any information on which it is based is not accurate in all material respects. Section 114 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 114(1)(d) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
115: Appeal from decisions of
EPA
1: An applicant who is dissatisfied with an emissions ruling, or a decision to decline to make an emissions ruling, may, within 20 working days of the District Court
2: The District Court may confirm, reverse, or modify the emissions ruling or decision appealed against.
3: An emissions ruling or decision appealed against under this section continues in force pending the determination of the appeal, and no person is excused from complying with any of the provisions of this Act on the ground that any appeal is pending. Section 115 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 115 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 115(1) amended 1 March 2017 section 261 District Court Act 2016 Section 115(1) amended 1 January 2013 section 46 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
116: Effect of emissions rulings
1: An emissions ruling is conclusive evidence of the determination of the matter that is ruled on
2: If the EPA section 109
a: the ruling applies to the matter that is ruled on
b: if the applicant complies with the ruling, the EPA
2A: However, an emissions ruling is personal to the applicant and does not apply to, and cannot be transferred to, anyone else (including where land to which a ruling relates is transferred).
3: This section is subject to sections 113 114 section 115(2) Section 116 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 116(1) amended 23 June 2020 section 111(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 116(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 116(2)(a) amended 23 June 2020 section 111(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 116(2)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 116(2A) inserted 23 June 2020 section 111(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
117: EPA
1: For the purpose of providing general guidance about the application of the ETS participant provisions EPA in whatever manner and format that the EPA considers appropriate
2: The EPA
3: No person may treat, or rely on, the information published under subsection (1) as an emissions ruling with the effect specified by section 116 Section 117 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 117 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 117(1) amended 23 June 2020 section 112(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 117(1) amended 23 June 2020 section 112(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 117(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 117(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Emissions returns Heading added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
118: Submission of final emissions returns
1: Subsection (2) applies to the following persons:
a: a person who the EPA
i: cease carrying out an activity listed in Schedule 3 4
ii: leave New Zealand:
b: a participant who has ceased to carry out any activities in New Zealand:
ba: a participant who has given the EPA notice under section 59
c: the executors or administrators of a deceased participant:
d: a participant who has become bankrupt or has been put into liquidation.
2: The EPA Schedule 3 4
3: Any of the following persons may, at any time, submit a final emissions return in relation to a specified activity listed in Schedule 3 4
a: a person who has—
i: ceased to carry out an activity listed in Schedule 3 4
ii: left, or is about to leave, New Zealand:
b: a participant who has ceased to carry out any activities in New Zealand:
c: the executor or administrator of a deceased participant:
d: a participant who has become bankrupt or has been put into liquidation.
3A: However, subsections (1) and (3) do not apply to a participant in an activity of standard forestry or permanent forestry (on post-1989 forest land), who must instead submit emissions returns as required by Part 5
4: A final emissions return submitted under subsection (2) or (3) must—
a: contain all of the information required in an annual emissions return under section 65(2)
i: if the return is submitted in response to a requirement of the EPA EPA
ii: if the return is made under subsection (3)(a) or (b), the period—
A: beginning on the later of 1 January in the year in which the return is submitted, or the day after the end of the period covered by the last emissions return submitted by the person for the activity; and
B: ending on the day the person ceased to carry out the specified activity, or the last of the specified activities covered by the return:
iii: if the return is made under subsection (3)(c) or (d), the period determined by the submitter; and
b: be submitted in accordance with section 65(3)
5: Following the submission of a final emissions return under this section, the person submitting the return must, within 20 working days, surrender the number of units in the assessment under section 65(2)(c)(i)
6: Despite anything in subsection (3),—
a: a person who meets the conditions in that subsection, and who is (at the time of meeting those conditions) a member of a consolidated group, may not submit a final emissions return; and
b: the nominated entity of the consolidated group of which the person is a member may not submit a final emissions return in respect of the person.
7: To avoid doubt, a person who submits a final emissions return in respect of a specified activity under this section—
a: is not required to submit an annual emissions return under section 65
b: must, if the final emissions return does not cover the full period in which the activity was carried out by the participant in a year, submit an annual emissions return under section 65 Section 118 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 118(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 118(1)(ba) inserted 1 January 2013 section 47 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 118(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 118(3)(a) substituted 8 December 2009 section 37(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 118(3A) inserted 1 January 2023 section 252 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 118(4)(a) substituted 8 December 2009 section 37(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 118(4)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 118(6) added 8 December 2009 section 37(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 118(7) added 8 December 2009 section 37(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
119: Power to extend date for emissions returns
The EPA
a: the participant has applied for an extension by
b: the EPA Section 119 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 119 amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 119(a) amended 8 December 2009 section 38 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 119(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
120: Amendment to emissions returns by
EPA
1: Subject to section 127 EPA EPA EPA
2: If the EPA proposes to amend a person’s emissions return, the EPA must notify the person of that proposal as soon as practicable.
3: If the EPA then becomes satisfied that the information contained in the emissions return was correct,—
a: the EPA must notify the person of that fact and of the effects of paragraph (b)
b: section 123 section 121 Section 120 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 120 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 120(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 120(2) inserted 1 January 2021 section 214 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 120(3) inserted 1 January 2021 section 214 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
120A: Liabilities, penalties, and interest when emissions returns amended
1: This section applies if the EPA (on the initial notice date section 120(2)
2: Until the EPA has amended the original emissions return by giving the amendment notice,—
a: the person’s surrender or repayment of any units for which they are liable under the original emissions return need not be made by the applicable due date; and
b: the EPA must not give a penalty notice to the person in relation to the original emissions return; and
c: if the EPA had already given a penalty notice to the person in relation to the original emissions return, the person’s payment of the penalty or any interest need not be made by the applicable due date.
3: The EPA, in assessing the matters required to amend the original emissions return, must calculate all of the following that apply:
a: the number of units that the person is liable to surrender or repay under the amended emissions return (the amended total units
b: the units that the person was liable to surrender or repay under the original emissions return (the original total units
i: the number of amended total units that do not exceed the original total units (the base units
ii: the number of units by which the amended total units exceed the original total units (the additional units
c: if any of the base units were not surrendered or repaid by a due date before the initial notice date (the unpaid base units section 134 or (if applicable) section 134AA amended penalty
d: if the EPA had already given a penalty notice specifying a penalty (the original penalty
i: the amount by which the original penalty exceeds the amended penalty (the unnecessary penalty
ii: and if any interest has become payable on the original penalty before the initial notice date (the original interest
A: the interest that would have become payable before that date on the amended penalty instead of the original penalty (the amended interest
B: the amount by which the original interest exceeds the amended interest (the unnecessary interest Penalty notice not already given
4: If there are unpaid base units, and the EPA has not already given a penalty notice in relation to the original emissions return, the EPA must include with the amendment notice a penalty notice for those unpaid base units (specifying the amended penalty). Penalty notice already given
5: If there are unpaid base units, and the EPA has already given a penalty notice in relation to the original emissions return, the EPA must include with the amendment notice a penalty notice for the unpaid base units that—
a: complies with section 134 or (if applicable) section 134AA
i: specifying the amended penalty as required by section 134(3)(d) or (if applicable) section 134AA(7)(f)(i)
ii: specifying the new due date as required by section 134(3)(f) or (if applicable) section 134AA(7)(f)(iii)
b: also—
i: specifies the amount of the amended interest and states that it is payable on the amended penalty; and
ii: states that interest is not payable on the amended penalty in the period starting on the initial notice date and ending on the new due date; and
iii: specifies the amount of any unnecessary penalty or unnecessary interest that the person has paid and states that the EPA is required to reimburse it.
6: The penalty notice given under subsection (5) Other provisions
7: To avoid doubt, this section—
a: does not prevent the EPA, when requiring the surrender or repayment of units, or the payment of a penalty or interest, under this section, from taking into account any earlier surrender, repayment, or payment by the person; and
b: does not prevent section 134 or (if applicable) section 134AA
8: In this section,— amended emissions return section 120 amendment notice section 123(1) interest section 137 original emissions return penalty notice
a: means a notice given to a person under section 134(3) section 134AA(7)
b: does not include a notice given to a person under section 134AA(7) section 144 Section 120A inserted 1 January 2021 section 215 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 120A(3)(c) amended 25 August 2023 section 5(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 120A(5)(a) amended 25 August 2023 section 5(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 120A(5)(a)(i) amended 25 August 2023 section 5(3) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 120A(5)(a)(ii) amended 25 August 2023 section 5(4) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 120A(7)(b) amended 25 August 2023 section 5(5) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 120A(8) penalty notice replaced 25 August 2023 section 5(6) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
121: Assessment if default made in submitting emissions return
1: This section applies if—
a: a participant fails to submit an emissions return when required to do so under this Act; or
b: the EPA
2: If this section applies, the EPA Section 121 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 121(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 121(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
122: Amendment or assessment presumed to be correct
An amendment made to an emissions return under section 120 section 121 Section 122 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
123: Effect of amendment or assessment
1: If the EPA section 120 section 121 EPA
a: the particulars of the amendment or assessment; and
b: any grounds or information upon which the amendment or assessment was based; and
c: the right of the person to seek a review of the decision under section 144
2: A notice under subsection (1) must, if relevant, be accompanied by a penalty notice under section 134A 134C section 120A
3: If the amendment or assessment results in a liability for the person to surrender units or any additional units, the participant must surrender those units within 60 working days of
4: If the amendment shows that a participant has surrendered too many units, the EPA days of section 124
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 EPA
6: If the amendment shows that a participant was transferred too many New Zealand units for the participant’s removal activities, the participant must, within 60 working days of EPA
7: Units repaid by any person under subsection (6) must be of a type that may be transferred to a surrender account at the time the unit is repaid.
8: The EPA section 124(3) Section 123 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 123(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 123(2) amended 1 January 2021 section 216 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 123(3) amended 1 January 2013 section 48(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 123(4) amended 1 January 2013 section 48(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 123(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 123(5) substituted 8 December 2009 section 39 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 123(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 123(6) amended 1 January 2013 section 48(3) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 123(6) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 123(8) amended 1 January 2013 section 48(4) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 123(8) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
124: Reimbursement of units by
EPA
1: If the EPA is required by this Act to arrange for the reimbursement of units to a person, the EPA must direct the Registrar to transfer the applicable number of New Zealand units or approved overseas units from the appropriate surrender account or Crown holding account to the person's holding account.
2: However, subsection (1) does not apply to the extent that subsection (2A) requires units to be transferred elsewhere.
2A: The EPA must apply section 64A
a: the units the person is entitled to be reimbursed are the potential transfer units
b: the person is the recipient
c: the time when the requirement to reimburse arose is the relevant time
3: The EPA Section 124 substituted 8 December 2009 section 40 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 124 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 124(1) replaced 23 June 2020 section 113 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 124(2) replaced 23 June 2020 section 113 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 124(2A) inserted 23 June 2020 section 113 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 124(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
125: Repayment of units by persons in case of error
1: The EPA may, if satisfied that, as a result of an error, units to which a person is not entitled under the ETS participant provisions have been transferred from a Crown holding account or other account held by the Crown to the person's holding account, give a notice to the person requiring that person to repay that number of units.
2: The person must, within 30 days after the notice is given, repay that number of units by transferring units to the Crown holding account designated in the notice.
3: The repaid units must be of a type that may be transferred to a surrender account when they are repaid. Section 125 replaced 23 June 2020 section 114 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
126: Obligation to surrender or repay units not suspended by review or appeal
1: The obligation to surrender or repay units under section 123 125
2: If the applicant for a review or the appellant in proceedings is successful in the review or the proceedings, the EPA
3: However, any obligation on the EPA EPA section 146 Section 126 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 126(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 126(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
127: Time bar for amendment of emissions returns
1: If a participant has complied with the participant’s obligation to surrender units in relation to an emissions return required or permitted by
a: any section except those specified in paragraph (b) EPA required by section 182A 186B
i: increase the number of units required to be surrendered by the participant; or
ii: alter the number of New Zealand units that the participant is entitled to receive for removal activities:
b: section 183 183A 187 188 189 192A 192Q 193A 193K EPA
i: increase the number of units required to be surrendered by the participant; or
ii: alter the number of New Zealand units that the participant is entitled to receive for removal activities.
2: However,—
a: the EPA may amend an emissions return or assessment at any time to give effect to the correction of a unique emissions factor under section 91A
b: if the EPA is satisfied that an emissions return was fraudulent, was wilfully misleading, or deliberately omitted mention of emissions or removals in respect of which an emissions return was required to be submitted, the EPA may amend the emissions return at any time, under section 120
i: increase the number of units required to be surrendered by the participant:
ii: decrease the number of New Zealand units to which the participant is entitled in respect of removal activities.
c: if a person submits an emissions return on receiving a notice from the EPA under section 134A(1)
3: Without limiting subsection (2)(b), that paragraph applies in respect of all emissions returns by a person for an activity if the EPA is satisfied that the person’s application to be registered was fraudulent or wilfully misleading. Section 127 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 127(1) amended 23 June 2020 section 115(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 127(1)(a) amended 1 January 2023 section 253(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 127(1)(a) amended 23 June 2020 section 115(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 127(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 127(1)(b) amended 1 January 2023 section 253(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 127(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 127(2) replaced 23 June 2020 section 115(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 127(2)(c) inserted 1 January 2021 section 217 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 127(3) inserted 23 June 2020 section 115(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
128: Amendments and assessments made by electronic means
Any amendment or assessment made by the EPA
a: must be treated as an amendment or assessment made by or under the properly delegated authority of the EPA
b: is not invalid by virtue of the fact that it is made automatically by such means. Section 128 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 128 amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 128(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Notices required from participants Heading inserted 1 January 2023 section 254 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
128A: EPA may act if participant fails to give notice
1: The EPA may act under this section if it is satisfied that a participant has failed to give a notice in accordance with section 181G 192J 193K notice provision
2: The EPA may,—
a: if no notice has been given, prepare the notice that ought to have been given; or
b: if a notice has been given but is not complete, complete the notice.
3: The EPA may do the following when preparing or completing the notice:
a: if the notice must include an emissions return (including any new unit balance report), the EPA may apply—
i: section 120
ii: section 121
b: if the notice must include any other information, prepare or complete that information by making any required assumptions or estimates.
4: Before taking action under this section, the EPA must notify the participant of its intention to do so, and give them at least 60 working days to give or correct the required notice.
5: If the participant gives or corrects the required notice by that deadline, the notice must be treated as having been given to the EPA—
a: in accordance with the notice provision; and
b: on the last day on which it could have been given under that provision.
6: The EPA may still take action under this section if it is unable to notify the participant of its intention to do so because it is not reasonably practicable to identify or locate them or their address.
7: Despite subsection (2),—
a: for a notice under section 181G
i: the EPA cannot identify any land as area 2 (excess) land; and
ii: if any land in area 2 that is qualifying forest land is not identified as area 2 (forested land), the EPA must identify it as area 2 (non-ETS) land; and
b: for a notice required by section 192J Section 128A inserted 1 January 2023 section 254 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: Offences and penalties
Subpart 4 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
129: Offences in relation to failure to comply with various provisions
1: A person commits an offence against this Act if the person—
a: is a participant in any year and, without reasonable excuse, fails to comply with section 62 (other than by submitting an emissions return containing incorrect calculations)
b: without reasonable excuse,—
i: fails to notify the EPA section 56 Schedule 3
ii: fails to submit an emissions return when required to do so
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 83 84 EPA
iii: fails to keep records as required—
A: under section 67 86D
B:
C: by the
iv: fails to notify the EPA section 112
v: fails to notify the EPA section 84(2)(b) 187(4)
2: Every person who is convicted of an offence against subsection (1) is liable on
a: the first time the person is convicted of that offence, to a fine not exceeding $8,000:
b: the second time the person is convicted of that offence, to a fine not exceeding $16,000:
c: on every subsequent occasion that the person is convicted of that offence, to a fine not exceeding $24,000. Section 129 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 129 heading replaced 1 January 2013 section 50 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 129(1)(a) amended 1 January 2021 section 218 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 129(1)(b)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 129(1)(b)(ii) amended 23 June 2020 section 116(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 129(1)(b)(iia) inserted 8 December 2009 section 42(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 129(1)(b)(iia) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 129(1)(b)(iii) substituted 8 December 2009 section 42(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 129(1)(b)(iii)(B) repealed 23 June 2020 section 116(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 129(1)(b)(iii)(C) amended 23 June 2020 section 116(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 129(1)(b)(iv) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 129(1)(b)(v) substituted 8 December 2009 section 42(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 129(1)(b)(v) amended 1 January 2023 section 255 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 129(1)(b)(v) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 129(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
130: Offence for breach of section 99
Every person to whom section 99(1)
a: imprisonment for a term not exceeding 6 months; or
b: a fine not exceeding $15,000; or
c: both. Section 130 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 130 amended 1 July 2013 section 413 Criminal Procedure Act 2011
131: Offence for failure to provide information or documents
1: A person commits an offence against this Act if the person, without reasonable excuse,—
a: fails to provide information to the EPA section 94
b: fails to appear before the EPA section 95
2: Every person who is convicted of an offence against subsection (1) is liable on
a: in the case of an individual, to a fine not exceeding $12,000; or
b: in the case of a body corporate, to a fine not exceeding $24,000. Section 131 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 131(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 131(1)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 131(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
132: Other offences
1: A person commits an offence against this Act if the person—
a: refuses to take an oath when required to do so under section 95
b: refuses to answer any question when required to do so under section 95
c: is a participant in any year and knowingly fails to comply with section 62 (other than by submitting an emissions return containing incorrect calculations)
d: knowingly fails to submit an emissions return when required to do so
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 83 84 EPA
e: knowingly fails to keep records as required—
i: under section 67 86D
ii:
iii: by the
f: knowingly provides altered, false, incomplete, or misleading information (including emissions returns) to the Minister or EPA the ETS participant provisions
g: wilfully obstructs, hinders, resists, or deceives a person exercising a power conferred on that person under the ETS participant provisions
h: wilfully interferes with any survey, investigation, test, or measurement carried out by an enforcement officer or a person assisting an enforcement officer under section 100
i: refuses to provide information that an enforcement officer has demanded from that person under section 100(2)(d)
2: Every person who is convicted of an offence against subsection (1) is liable on
a: in the case of an individual, to a fine not exceeding $25,000; or
b: in the case of a body corporate, to a fine not exceeding $50,000. Section 132 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 132(1)(c) amended 1 January 2021 section 219 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 132(1)(d) amended 23 June 2020 section 117(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 132(1)(da) inserted 8 December 2009 section 43(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 132(1)(da) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 132(1)(e) substituted 8 December 2009 section 43(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 132(1)(e)(ii) repealed 23 June 2020 section 117(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 132(1)(e)(iii) amended 23 June 2020 section 117(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 132(1)(f) amended 23 June 2020 section 117(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 132(1)(f) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 132(1)(f) amended 8 December 2009 section 43(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 132(1)(g) amended 23 June 2020 section 117(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 132(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
133: Evasion or similar offences
1: A person commits an offence against this Act if the person, with intent to deceive and for the purpose of either obtaining any material benefit or avoiding any material detriment,—
a: fails to comply with any of the requirements specified in section 62
b: fails to submit an emissions return when required to do so
ba: fails to comply with the requirements relating to calculation and application for or notification of an annual allocation adjustment or a closing allocation adjustment under section 83 84 EPA
c: fails to keep records as required—
i: under section 67 86D
ii:
iii: by the
d: fails to provide information to the EPA the ETS participant provisions
e: provides altered, false, incomplete, or misleading information (including emissions returns) to the Minister or EPA the ETS participant provisions
2: Every person who commits an offence against subsection (1) is liable on conviction
a: imprisonment for a term not exceeding 5 years; or
b: a fine not exceeding $50,000; or
c: both imprisonment and a fine. Section 133 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 133(1)(b) amended 23 June 2020 section 118(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 133(1)(ba) inserted 8 December 2009 section 44(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 133(1)(ba) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 133(1)(c) substituted 8 December 2009 section 44(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 133(1)(c)(ii) repealed 23 June 2020 section 118(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 133(1)(c)(iii) amended 23 June 2020 section 118(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 133(1)(d) amended 23 June 2020 section 118(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 133(1)(d) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 133(1)(e) amended 23 June 2020 section 118(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 133(1)(e) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 133(1)(e) amended 8 December 2009 section 44(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 133(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011
134: Penalty for failing to surrender or repay units by due date
(general rule)
1: This section applies if—
a: a person fails, by the due date,—
i: to surrender units that the person is required to surrender; or
ii: to repay units that the person is required to repay; and
b: section 134AA
2: The person must (in addition to surrendering or repaying the units) pay to the EPA a penalty calculated as follows: 3 × a × b where— a is the number of units that the person failed to surrender or repay by the due date b is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W
3: The EPA must give a notice to the person that—
a: refers to the person’s failure to surrender or repay units by the due date and the provision under which the person is liable to surrender or repay the units; and
b: refers to any relevant notice that the EPA has given the person in respect of the requirement to surrender or repay the units (for example, a notice given under section 123(1)
c: specifies the number of units that the person must surrender or repay; and
d: specifies the amount of the penalty that the person must pay under this section; and
e: advises that the person may request to enter into a deferred payment arrangement under section 135A
f: advises that, unless the units are surrendered or repaid and the penalty is paid in full within 20 working days after the notice is given, interest on the amount of the penalty will accrue in accordance with section 137
4: In this section, due date Section 134 replaced 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 134 heading amended 25 August 2023 section 6(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 134(1) replaced 25 August 2023 section 6(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
134AA: Penalty for failing to surrender or repay units by due date (where liability is for lower amount)
1: This section applies if—
a: a person fails, by the due date,—
i: to surrender units that the person is required to surrender; or
ii: to repay units that the person is required to repay; and
b: that liability to surrender or repay the units resulted from—
i: a forestry activity carried out on or after 1 January 2025; and
ii: 1 or more of the following things in relation to the forestry activity:
A: an emissions return with an emissions return period and under which the average liability per year of that period is less than 25,000 units:
B: an emissions return without an emissions return period and under which the liability is less than 25,000 units:
C: any other requirement in this Act or secondary legislation made under this Act (for example, the requirement to repay units under section 125 Initial notice
2: The EPA must give a notice to the person that—
a: refers to the person’s failure to surrender or repay units by the due date and the provision under which the person is liable to surrender or repay the units; and
b: advises that the person may submit to the EPA a document containing information for the purpose of satisfying the EPA that the failure occurred through no fault of the person; and
c: advises that, no earlier than 20 working days after issuing the notice, the EPA will make a decision under subsection (6) on the person’s liability to pay a penalty under this section and will then give a further notice advising whether the penalty applies. Liability for penalty
3: The person must (in addition to surrendering or repaying the units) pay to the EPA a penalty calculated as follows: a × b × c where— a is the multiplier determined under subsection (4) b is the number of units that the person failed to surrender or repay by the due date c is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W
4: The multiplier for a person liable to pay a penalty under this section is—
a: 0.5 if—
i: the activity in respect of which the person is liable for a penalty is an activity listed in Part 1 1A
ii: the person’s liability to surrender or repay units resulted only from a requirement of the type referred to in subsection (1)(b)(ii)(C) and the requirement does not relate to a specific forestry activity carried out by the person; or
b: 0.25 if the activity in respect of which the person is liable for a penalty is an activity listed in Part 1 1A
5: However, a person is not liable to pay a penalty under this section if the EPA is satisfied that the failure to surrender or repay units occurred through no fault of the person.
6: The EPA must decide, no earlier than 20 working days after issuing the notice under subsection (2), if it is satisfied that the person’s failure to surrender or repay units occurred through no fault of the person. Notice of penalty
7: The EPA must, as soon as practicable after making the decision under subsection (6), give a further notice to the person that—
a: refers to the person’s failure to surrender or repay units by the due date and the provision under which the person is liable to surrender or repay the units; and
b: refers to the initial notice that the EPA has given to the person under subsection (2); and
c: refers to any relevant notice that the EPA has given the person in respect of the requirement to surrender or repay the units (for example, a notice given under section 123(1)
d: specifies the number of units that the person must surrender or repay; and
e: sets out the following in relation to the EPA’s decision under subsection (6):
i: the particulars of the decision:
ii: any grounds and information on which the decision was based:
iii: the advice that the person may seek a review of the decision under section 144
f: if a penalty is payable,—
i: specifies the amount of the penalty that the person must pay under this section; and
ii: advises that the person may request to enter into a deferred payment arrangement under section 135A
iii: advises that, unless the units are surrendered or repaid and the penalty is paid in full within 20 working days after the notice is given, interest on the amount of the penalty will accrue in accordance with section 137 Part year treated as full year
8: For the purposes of subsection (1)(b)(ii)(A), any part of a calendar year in an emissions return period must be treated as a full calendar year. Meaning of due date
9: In this section, due date Section 134AA inserted 25 August 2023 section 7 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
134AB: Determining penalty for failing to surrender or repay additional units by due date
1: This section applies if—
a: the EPA amends an emissions return in relation to which it has already given a penalty notice; and
b: the amendment results in a liability for the person to whom the notice was given to surrender or repay additional units; and
c: the person fails to surrender or repay the additional units by the due date.
2: If, at the time of the failure to surrender or repay the additional units, the most recently issued penalty notice specified a penalty calculated under section 134
3: If, at the time of the failure to surrender or repay the additional units, the most recently issued penalty notice specified a penalty calculated under section 134AA
4: In this section,— additional units section 120A(3)(b) base units section 120A(3)(b) due date penalty notice section 120A(8) Section 134AB inserted 25 August 2023 section 7 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
134A: Penalty for failing to submit emissions return by due date
1: This section applies if—
a: a person fails to submit an emissions return by the due date; and
b: the EPA is satisfied that the person has not taken reasonable care; and
c: the EPA gives a notice to the person stating that—
i: the person has failed to submit the emissions return by the due date; and
ii: if the person does not submit the return within 20 working days after the notice is given, the EPA will make an assessment under section 121
d: the person fails to submit the emissions return within 20 working days after the notice is given.
2: If the emissions return is for an activity of standard forestry or permanent forestry
a: emissions
b: removals
3: If the emissions return is for any other activity, the person has either—
a: emissions
b: removals
4: If the person has—
a: emissions, they must pay to the EPA the penalty calculated under subsection (5)
b: removals, they must pay to the EPA the penalty calculated under subsection (5)
c: neither emissions nor removals, no penalty is payable.
5: The calculation is— a × b × c where— a is the person’s emissions or removals in tonnes (whichever applies) b is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W c is the culpability factor determined under subsection (6)
6: The culpability factor for a person is the greatest culpability factor that the EPA is satisfied applies under this table: The following table is small in size and has 3 columns. Column 1 is headed Person’s level of culpability. Column 2 is headed Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Column 3 is headed Culpability factor. Person’s level of culpability Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Culpability factor Person did not take reasonable care Yes 0.1 No 0.2 Person was grossly careless Yes 0.2 No 0.4 Person knowingly failed Yes 1.0 No 1.0 Notice of penalty
7: If the person must pay a penalty, the EPA must give a notice to the person that—
a: refers to the person’s failure to submit the emissions return by the due date and the provision under which the person is required to submit the return; and
b: refers to the notice issued under subsection (1)(c)
c: specifies the amount of the penalty that the person must pay under this section; and
d: advises that the person may request to enter into a deferred payment arrangement under section 135A
e: advises that, unless the penalty is paid in full within 20 working days after the notice is given, interest on the amount of the penalty will accrue in accordance with section 137 Meaning of due date
8: In this section, due date
a: means the final date by which the person—
i: was originally required to submit the emissions return; or
ii: would have been required to submit the emissions return had they complied with this Act in all respects; and
b: excludes any extension under subsection (1)(d) Section 134A replaced 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 134A(2) amended 1 January 2023 section 256 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
134B: Penalty for failing to submit annual or closing allocation adjustment by due date
1: This section applies if—
a: a person fails to submit an annual allocation adjustment under section 83 section 84
b: the EPA is satisfied that the person has not taken reasonable care; and
c: the EPA gives a notice to the person stating that—
i: the person has failed to submit the allocation adjustment by the due date; and
ii: if the person does not submit the allocation adjustment within 20 working days after the notice is given, the EPA will make a decision under section 86B(4)
d: the person fails to submit the allocation adjustment within 20 working days after the notice is given.
2: If the result of a decision made under section 86B(4)
a: the person is liable to surrender or repay units, they must pay to the EPA the penalty calculated under subsection (3)
b: the person is entitled to receive units, they must pay to the EPA the penalty calculated under subsection (3)
c: there is no change in the person’s liability or entitlement, no penalty is payable.
3: The calculation is— a × b × c where— a is the number of units that the person—
i: is liable to surrender or repay; or
ii: is entitled to receive b is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W c is the culpability factor determined under subsection (4)
4: The culpability factor for a person is the greatest culpability factor that the EPA is satisfied applies under this table: The following table is small in size and has 3 columns. Column 1 is headed Person’s level of culpability. Column 2 is headed Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Column 3 is headed Culpability factor. Person’s level of culpability Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Culpability factor Person did not take reasonable care Yes 0.1 No 0.2 Person was grossly careless Yes 0.2 No 0.4 Person knowingly failed Yes 1.0 No 1.0
5: If the person must pay a penalty, the EPA must give a notice to the person that—
a: refers to the person’s failure to submit the allocation adjustment by the due date and the provision under which the person is required to submit the allocation adjustment; and
b: refers to the notice issued under subsection (1)(c)
c: specifies the amount of the penalty that the person must pay under this section; and
d: advises that the person may request to enter into a deferred payment arrangement under section 135A
e: advises that, unless the penalty is paid in full within 20 working days after the notice is given, interest on the amount of the penalty will accrue in accordance with section 137
6: In this section, due date
a: means the final date by which the person was originally required to submit the allocation adjustment; and
b: excludes any extension under subsection (1)(d) Section 134B inserted 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
134C: Penalty for submitting incorrect emissions return
1: This section applies if—
a: the EPA amends a person’s emissions return under section 120
b: the EPA is satisfied that the amendment was needed because the person failed to take reasonable care.
2: In particular,—
a: subsections (3) to (5) of standard forestry or permanent forestry
b: subsections (6) to (8) Activities relating to post-1989 forestry
3: The person has either—
a: emissions
b: removals
4: If the effect of the amendment is that—
a: the person’s emissions are greater, removals are lesser, or removals have become emissions, they must pay to the EPA the penalty calculated under subsection (5)
b: the person’s removals are greater, emissions are lesser, or emissions have become removals, they must pay to the EPA the penalty calculated under subsection (5)
c: there is no change in the person’s emissions or removals, no penalty is payable.
5: The calculation is— a × b × c where— a is the lesser of—
a: the person’s emissions or removals under the emissions return, as amended; and
b: the difference between (whichever applies)—
i: the person’s emissions under the emissions return before and after amendment; or
ii: the person’s removals under the emissions return before and after amendment; or
iii: the person’s emissions and removals under the emissions return before and after amendment, with the emissions converted to a negative number b is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W c is the culpability factor determined under subsection (9) Other activities
6: The person has either—
a: emissions
b: removals
7: If the effect of the amendment is that—
a: the person’s emissions are greater or removals are lesser, they must pay to the EPA the penalty calculated under subsection (8)
b: the person’s removals are greater or emissions are lesser, they must pay to the EPA the penalty calculated under subsection (8)
c: there is no change in the person’s emissions or removals, no penalty is payable.
8: The calculation is— a × b × c where— a is the lesser of—
a: the person’s emissions or removals under the emissions return, as amended; and
b: whichever of the following applies:
i: the difference between the person’s emissions under the emissions return before and after amendment; or
ii: the difference between the person’s removals under the emissions return before and after amendment b is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W c is the culpability factor determined under subsection (9) Culpability factor
9: The culpability factor for a person is the greatest culpability factor that the EPA is satisfied applies under this table: The following table is small in size and has 3 columns. Column 1 is headed Person’s level of culpability. Column 2 is headed Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Column 3 is headed Culpability factor. Person’s level of culpability Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Culpability factor Person did not take reasonable care Yes 0.1 No 0.2 Person was grossly careless Yes 0.2 No 0.4 Person knowingly failed Yes 1.0 No 1.0 Notice of penalty
10: If the person must pay a penalty, the EPA must give a notice to the person that—
a: refers to the amendment under section 120
b: specifies the amount of the penalty that the person must pay under this section; and
c: advises that the person may request to enter into a deferred payment arrangement under section 135A
d: advises that, unless the penalty is paid in full within 20 working days after the notice is given, interest on the amount of the penalty will accrue in accordance with section 137 Meaning of due date
11: In this section, due date
a: means the final date by which the person—
i: was originally required to submit the emissions return; or
ii: would have been required to submit the emissions return had they complied with this Act in all respects; and
b: excludes any extension under section 134A(1)(d) Section 134C inserted 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 134C(2)(a) amended 1 January 2023 section 257 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
134D: Penalty for providing incorrect information in allocation application or adjustment
1: This section applies if—
a: the EPA reconsiders, varies, or revokes ( changes section 86C
b: the EPA is satisfied that the change was needed because the person failed to take reasonable care.
2: If the effect of the change is that—
a: the person is liable to surrender or repay additional units, or is entitled to receive fewer units, they must pay to the EPA the penalty calculated under subsection (3)
b: the person is liable to surrender or repay fewer units, or is entitled to receive additional units, they must pay to the EPA the penalty calculated under subsection (3)
c: there is no change in the person’s liability or entitlement, no penalty is payable.
3: The calculation is— a × b × c where— a is the lesser of—
a: the total number of units the person is liable to surrender or repay, or is entitled to receive, under the decision, as changed; and
b: the number of units that the person—
i: is now liable to surrender or repay as additional units, or is no longer entitled to receive, as a result of the change (if subsection (2)(a)
ii: is no longer liable to surrender or repay, or is now entitled to receive as additional units, as a result of the change (if subsection (2)(b) b is the price, in dollars, of carbon per tonne on the due date, as set by or in accordance with regulations made under section 30W c is the culpability factor determined under subsection (4)
4: The culpability factor for a person is the greatest culpability factor that the EPA is satisfied applies under this table: The following table is small in size and has 3 columns. Column 1 is headed Person’s level of culpability. Column 2 is headed Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Column 3 is headed Culpability factor. Person’s level of culpability Did person voluntarily disclose failure or error to EPA before being informed of it by EPA? Culpability factor Person did not take reasonable care Yes 0.1 No 0.2 Person was grossly careless Yes 0.2 No 0.4 Person knowingly failed Yes 1.0 No 1.0
5: If the person must pay a penalty, the EPA must give a notice to the person that—
a: refers to the change under section 86C
b: specifies the amount of the penalty that the person must pay under this section; and
c: advises that the person may request to enter into a deferred payment arrangement under section 135A
d: advises that, unless the penalty is paid in full within 20 working days after the notice is given, interest on the amount of the penalty will accrue in accordance with section 137
6: In this section, due date
a: means the final date by which the person was originally required to submit the allocation application or adjustment; and
b: excludes any extension under section 134B(1)(d) Section 134D inserted 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
135: Date for payment of penalty
1: A person must pay a penalty imposed under sections 134 to 134D
2: However, if a deferred payment arrangement has been made under section 135A Section 135 replaced 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
135A: Deferred payment arrangements for payments of penalties
1: A person who is liable to pay a penalty imposed under sections 134 to 134D , 190E 190H section 135(1) or 190I(3)(a)
2: The EPA must consider the request, taking into account the person’s financial position on the date on which the request is made.
3: The EPA may—
a: accept the request; or
b: request further information from the person; or
c: make a counter offer; or
d: if subsection (5)
4: If the EPA requests further information from the person or makes a counter offer,—
a: the person must provide the information or respond to the offer within 20 working days after the request or offer, or within a longer period allowed by the EPA; and
b: if the person provides the information or responds to the offer later than required, the provision of the information or the response must be treated as a new request to enter into an arrangement.
5: The EPA may decline to enter into an arrangement with the person if the EPA considers that—
a: the person is in a position to pay all of the penalty immediately; or
b: the person is being frivolous or vexatious; or
c: the person has not met their obligations under a previous arrangement.
6: The renegotiation of an arrangement is treated as if it were a new request to enter into an arrangement. Renegotiation may be initiated—
a: by the person at any time; or
b: by the EPA at any time after the end of 12 months after the date on which the arrangement was entered into.
7: The EPA may cancel an arrangement if—
a: it was entered into on the basis of false or misleading information provided by the person; or
b: the person is not meeting their obligations under the arrangement. Section 135A inserted 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 135A(1) amended 1 January 2023 section 258(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 135A(1) amended 1 January 2023 section 258(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
136: Penalties are debt due to Crown
The amount of a penalty imposed under sections 134 to 134D , 190E 190H Section 136 replaced 1 January 2021 section 220 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 136 amended 1 January 2023 section 259 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
137: Interest for late payment
1: This section applies if—
a: a person is liable to pay a penalty imposed under sections 134 to 134D , 190E 190H
b: the person has not paid the penalty by the date on which the penalty was due (as stated in the notice issued under the relevant section); and
c: in the case of a penalty imposed under section 134 134AA
2: If this section applies, the person is liable to pay interest on the full amount of the
a: at the rate prescribed by the Governor-General by Order in Council; and
b: for the period from the date by which the penalty was due to be paid until the penalty and any interest due have been paid in full and, in the case of a penalty imposed under section 134 134AA
3:
4: Despite anything in this section, the EPA EPA
a: the failure of the person to comply with the requirement to surrender or repay units and pay the penalty
b: as a consequence of that event or circumstance, the person has a reasonable justification or excuse for the non-compliance; and
c: the person corrected the failure to comply as soon as practicable.
5: Without limiting the EPA’s
a: an accident or a disaster; or
b: illness or emotional or mental distress.
6: Despite anything in this section, the EPA may remit all or part of an amount of interest that has accrued under this section if the EPA is satisfied that it would be manifestly unfair or unjust to impose all, or that part, of the amount.
7: For the purposes of this section, an event or circumstance
a: an act or omission of an agent of a person, unless the EPA
i: that could not have been anticipated; and
ii: the effect of which could not have been avoided by compliance with accepted standards of business organisation and professional conduct; or
b: a person’s financial position.
8: An order under subsection (2)(a) is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 137 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 137(1) replaced 1 January 2021 section 221(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(1)(a) amended 1 January 2023 section 260 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(1)(c) amended 25 August 2023 section 8(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 137(2) amended 1 January 2021 section 221(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(2)(b) replaced 1 January 2021 section 221(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(2)(b) amended 25 August 2023 section 8(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 137(3) repealed 1 January 2021 section 221(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 137(4)(a) substituted 8 December 2009 section 46(4) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 137(4)(a) amended 1 January 2021 section 221(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 137(6) replaced 1 January 2021 section 221(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 137(7)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 137(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
138: Obligation to pay penalty not suspended by appeal
1: The obligation to pay and the right to receive and recover any penalty imposed under sections 134 to 134D , 190E 190H section 137
2: If the applicant or appellant is successful in the review or appeal, the amount of any EPA section 124
3: However, any obligation on the EPA section 146
4: The EPA ((X × Y) ÷ 365) × Z where— X is the number of days in the period that—
a: commences on the day on which the relevant penalty is lodged to the credit of the EPA
b: ends on the day on which the relevant penalty is refunded by the EPA Y is the amount of penalty and interest that, having been paid, is caused to be refunded in accordance with the outcome of a successful appeal; and Z is the rate of interest specified by the Governor-General by Order in Council made under section 137(2)(a) Section 138 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 138(1) replaced 1 January 2021 section 222(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 138(1) amended 1 January 2023 section 261 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 138(2) substituted 8 December 2009 section 47(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 138(2) amended 1 January 2021 section 222(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 138(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 138(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 138(4) amended 1 January 2021 section 222(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 138(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 138(4) formula item X paragraph (a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 138(4) formula item X paragraph (b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
138A: Penalties to be paid into Crown account
1: The EPA must pay the amount of all penalties and interest on the penalties received from a person in accordance with sections 134 to 134D , 137 190E 190H
2: However, this section is subject to a court order that a penalty imposed under section 190E 190H Section 138A replaced 1 January 2021 section 223 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 138A(1) amended 1 January 2023 section 262(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 138A(2) inserted 1 January 2023 section 262(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
139: Liability of body corporate
If, in the course of proceedings against a body corporate for an offence under this Part, it is necessary to establish the state of mind of the body corporate, it is sufficient to show that a director, employee, or agent of the body corporate, acting within the scope of the person’s actual or apparent authority, had that state of mind. Section 139 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
140: Liability of directors and managers of companies
If a body corporate is convicted of an offence under this Part, every director and every person concerned in the management of the body corporate is also guilty of that offence if it is proved that—
a: the act or omission that constituted the offence took place with the authority, permission, or consent of the director or person; or
b: the director or person knew that the offence was to be, or was being, committed and failed to take all reasonable steps to prevent or stop it. Section 140 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
141: Liability of companies and persons for actions of director, agent, or employee
1: Any act or omission on behalf of a body corporate or other person (the principal
2: Despite subsection (1), if a principal is charged under this Part in relation to the act or omission of an agent for an offence against any of sections 132(1)(c) to (f) 133 Section 141 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
142: Limitation period for commencement of proceedings
1: Despite anything to the contrary in section 25
a: section 131 132(1)(a), (b), (g), (h), or (i)
b: section 129 130 132(1)(c) to (f)
2: Nothing in subsection (1) affects the application of section 25 Section 142 replaced 1 July 2013 section 413 Criminal Procedure Act 2011
143: Evidence in proceedings
1: In any proceedings for an offence against the ETS participant provisions
a: a certificate purporting to be signed by a delegate of the EPA
i: a named person is or was, or is not or was not, an enforcement officer or a person or organisation recognised under section 92
ii: a person was, or was not, registered as a participant in relation to an activity listed in Schedule 4
b: a certificate purporting to be signed by any person authorised to delegate to any person, or to persons of any kind or description, the exercise of any power or the performance of any function under the ETS participant provisions
i: the exercise of the power or the performance of the function specified in the certificate to the person specified in the certificate; or
ii: the exercise of the power or the performance of the function specified in the certificate to persons of a kind or description specified in the certificate, and that a named person specified in the certificate is a person of that kind or description.
2: The production of a certificate or document purporting to be a certificate to which subsection (1) applies is prima facie evidence that it is such a certificate or document, without proof of—
a: the signature of the person purporting to have signed the document; or
b: the document’s nature. Section 143 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 143(1) amended 23 June 2020 section 119 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 143(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 143(1)(b) amended 23 June 2020 section 119 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5: Review and appeal provisions
Subpart 5 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
144: Request for review of decisions
1: A person affected by a decision of the EPA under a provision in the ETS participant provisions who is dissatisfied with the decision may request the EPA to review the decision.
1A: The request must be made by notice to the EPA within the following period, or any further period that the EPA allows:
a: within 20 working days after the person receives notice of the decision; or
b: for a decision of the EPA about whether to give an area of land a new or changed forestry classification, within 20 working days after that decision is published in accordance with regulations made under section 196F
2: The request must set out the grounds on which it is believed that the original decision should be reviewed.
3: For the purposes of a review, the EPA may—
a: require the person requesting the review to supply information additional to that contained in the request; and
b: consider any information that the EPA already holds and that is relevant to the review, as long as the EPA—
i: gives a notice to the person requesting the review that describes the information and invites them to comment on or object to it; and
ii: considers any comments or objections.
4: Following a review, the EPA EPA
4A: Before revoking or varying the forestry classification of an area of land, the EPA must, in accordance with regulations made under section 196F
5: The decision requested to be reviewed remains valid unless and until altered by the EPA
6: The EPA
7: A decision by the EPA section 145 146
8: This section does not apply to any decision that the EPA section 90 EPA sections 107 117 Section 144 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 144(1) replaced 23 June 2020 section 120(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 144(1A) inserted 23 June 2020 section 120(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 144(3) replaced 23 June 2020 section 120(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 144(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 144(4A) inserted 23 June 2020 section 120(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 144(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 144(6) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 144(7) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 144(8) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
145: Right of appeal to District Court
1: A person has a right of appeal to the District Court EPA section 144
2: The court may confirm, reverse, or modify the decision appealed against.
3: Every decision appealed against under this section continues in force pending the determination of the appeal, and no person is excused from complying with any of the provisions of this Act on the ground that any appeal is pending. Section 145 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 145(1) amended 1 March 2017 section 261 District Court Act 2016 Section 145(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
146: Appeals to High Court on questions of law only
If a party to any proceedings before the District Court under section 145 Section 146 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
6: Miscellaneous provisions
Subpart 6 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
147: Giving of notices by
EPA
1: This section applies if this Act requires the EPA
2: If this section applies, the EPA
a: must give the notice in writing to—
i: the person; or
ii: a representative authorised to act on behalf of the person; and
b: may give notice by—
i: personal delivery to a person that is not a body corporate:
ii: personal delivery to a person that is a body corporate, if the personal delivery is made to the person’s office during working hours:
iii: an electronic means of communication to the person, if the EPA Part 4
iv: post to—
A: the street address of the person’s usual or last known place of residence; or
B: the street address of any of the person’s usual or last known places of business; or
C: any other address, if the person has notified the EPA
3: A notice given by post under subsection (2)(b)(iv) is to be treated as having been given at the time the notice would have been delivered in the ordinary course of the post. Section 147 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 147 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 147(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 147(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 147(2)(b)(iii) amended 1 September 2017 section 347 Contract and Commercial Law Act 2017 Section 147(2)(b)(iii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 147(2)(b)(iv)(C) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
148: Giving of notices to
EPA
1: This section applies if this Act requires a person to give a notice to the EPA
2: If this section applies, the notice must be given in writing in 1 of the following ways to the EPA’s office:
a: by personal delivery during working hours:
b: by an electronic means of communication in accordance with Part 4
c: by post to the post office box number for the office.
3: A notice given by post under subsection (2)(c) Section 148 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 148 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 148(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 148(2) replaced 23 June 2020 section 121(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 148(3) amended 23 June 2020 section 121(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
149: Sharing information
1: The purpose of subsection (2)
2: A person referred to in subsection (1) ( person A person B
a: is requested by person B; and
b: is required by person B to assist person B to carry out his or her functions under this Act.
3: The purpose of subsection (4) is to facilitate the provision of information that is held by the EPA and relevant to the allocation of New Zealand units for an eligible industrial activity (including any application, adjustment, response to a requirement for further information, or review of an allocation decision) to the Climate Change Commission and to the chief executive.
4: The EPA must provide information described in subsection (3), on request, to—
a: the Commission:
b: the chief executive.
5: Subsections (3) and (4) do not limit subsections (1) and (2). Section 149 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 149(1) amended 25 August 2023 section 13(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 149(3) inserted 25 August 2023 section 13(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 149(4) inserted 25 August 2023 section 13(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 149(5) inserted 25 August 2023 section 13(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
150: Formation of consolidated group
1: Any 2 or more members of a group may elect to form and be treated as a consolidated group, for the purposes of the ETS participant provisions, in respect of any activity or activities listed in Schedule 3 4
2: A consolidated group may consist of any of the following:
a: 1 or more participants:
b: 1 or more eligible persons for an eligible industrial activity
c: 1 other member that is not a participant or an eligible person, if that entity is to act as the nominated entity.
3: An election under subsection (1) must be made by giving notice to the EPA
4: A notice given under subsection (3) must—
a: include—
i: the names of each of the entities that are to be members of the consolidated group (and contact details of any member that is not registered as a participant); and
ii: the activities in respect of which the members elect to be treated as a consolidated group; and
b: nominate one of the entities listed in the notice (the nominated entity the ETS participant provisions
c: contain an agreement by each entity listed in the notice as a member of the consolidated group—
i: to be jointly and severally liable with the other members of the consolidated group for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to,
ii: to the transfer to the consolidated group's holding account on behalf of the group of any units to which any member of the consolidated group may become entitled in respect of any removal activity , or by an allocation relating to an eligible industrial activity
5: The EPA EPA's
6: Two or more entities who make an election under subsection (1) must be treated, for the purposes of the ETS participant provisions,
a: if notice of the formation of the consolidated EPA that
b: if notice of the formation of the consolidated EPA following year
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 to which subsection (1) applies EPA
a: at the same time they all give notice to the EPA section 56
b: at the same time they all submit an application under section 57
c: at the same time they all submit an application under section 86 eligible industrial activity
6B: Despite sections 56(1) 57(3) 61 EPA or an eligible person or making an application under section 86 eligible industrial activity
a: the notice given in accordance with subsection (6A) is received by the EPA
b: the nominated entity specified in the notice given in accordance with subsection (6A) has, or has applied for, a holding account in the name of the consolidated group.
7: To avoid doubt, a participant or an eligible person Section 150 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 150(1) replaced 23 June 2020 section 122(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(2) replaced 23 June 2020 section 122(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(2)(b) amended 26 November 2024 section 22 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 150(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(4)(b) amended 23 June 2020 section 122(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(4)(c)(i) amended 23 June 2020 section 122(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(4)(c)(ii) amended 26 November 2024 section 22 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 150(4)(c)(ii) amended 23 June 2020 section 122(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(6) amended 23 June 2020 section 122(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(6)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(6)(a) amended 8 December 2009 section 48(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 150(6)(a) amended 8 December 2009 section 48(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 150(6)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(6)(b) amended 8 December 2009 section 48(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 150(6)(b) amended 8 December 2009 section 48(4) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 150(6A) inserted 8 December 2009 section 48(5) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 150(6A) amended 23 June 2020 section 122(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(6A) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(6A)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(6A)(c) inserted 23 June 2020 section 122(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(6A)(c) amended 26 November 2024 section 22 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 150(6B) inserted 8 December 2009 section 48(5) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 150(6B) amended 26 November 2024 section 22 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 150(6B) amended 23 June 2020 section 122(8)(a) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(6B) amended 23 June 2020 section 122(8)(b) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 150(6B) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(6B)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 150(7) amended 23 June 2020 section 122(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
151: Changes to consolidated groups
1: If a consolidated group has been formed and still has at least 1 member, any other person referred to in section 150(2)(a) to (c)
2: A notice given under subsection (1) must—
a: include—
i: the name of the entity that elects to join the consolidated group (and the entity’s contact details if it is not registered as a participant) and sufficient information for the EPA
ii:
b: contain the agreement of the entity—
i: to be jointly and severally liable with the other members of the consolidated group for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to,
ii: , or by an allocation relating to an eligible industrial
c: contain the agreement of every existing member of the consolidated group—
i: to be jointly and severally liable with the other members of the group for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations relating to,
ii: to the transfer to the consolidated group’s holding account, on behalf of the group, of any units to which the joining entity may become entitled in respect of the activity or activities of that entity , or by an allocation relating to an eligible industrial
3: The EPA EPA's
4: Subject to subsection (6), a participant or eligible person that elects under subsection (1) to join a consolidated group must be treated, for the purposes of the ETS participant provisions, as being a member of that consolidated group from 1 January of the year in which they gave the notice under subsection (1).
5: An entity other than a participant or eligible person that elects under subsection (1) to join a consolidated group must be treated for the purposes of this Part as being a member of that consolidated group from the date of receipt by the EPA of the notice under subsection (1), or from any later date that may be specified in the notice.
6: A participant in respect of an activity, or an eligible person in respect of an eligible industrial activity EPA
a: at the same time as giving notice to the EPA section 56
b: when submitting an application under section 57
c: when submitting an application under section 86 industrial
7: Despite sections 56(1) 57(3) 61 EPA or an eligible person
a: giving notice to the EPA section 56
b: submitting an application under section 57
c: submitting an application under section 86 industrial Section 151 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 151(1) replaced 23 June 2020 section 123(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(2)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151(2)(a)(ii) amended 23 June 2020 section 123(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(2)(b)(i) amended 23 June 2020 section 123(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(2)(b)(ii) amended 26 November 2024 section 23(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 151(2)(b)(ii) amended 23 June 2020 section 123(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(2)(b)(ii) amended 23 June 2020 section 123(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(2)(c)(i) amended 23 June 2020 section 123(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(2)(c)(ii) amended 26 November 2024 section 23(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 151(2)(c)(ii) amended 23 June 2020 section 123(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151(4) replaced 23 June 2020 section 123(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(5) replaced 23 June 2020 section 123(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(6) added 8 December 2009 section 49(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 151(6) amended 26 November 2024 section 23(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 151(6) amended 23 June 2020 section 123(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(6) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151(6)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151(6)(c) inserted 23 June 2020 section 123(10) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(6)(c) amended 26 November 2024 section 23(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 151(7) added 8 December 2009 section 49(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 151(7) amended 23 June 2020 section 123(11) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(7) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151(7)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151(7)(c) inserted 23 June 2020 section 123(12) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151(7)(c) amended 26 November 2024 section 23(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
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 EPA
2: A notice given under subsection (1) must—
a: include the name of the member and the activity or activities the member is electing to add to the activities in respect of which the member is treated as a member of the consolidated group; and
b: contain the agreement of every existing member of the consolidated group—
i: to be jointly and severally liable with the other members of the group for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to,
ii: to the transfer to the consolidated group’s holding account, on behalf of the group, of any units to which the adding member may become entitled in respect of the activity or activities , or by an allocation relating to an eligible industrial
3: The EPA EPA's
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,—
a: if the notice of the election is received by the EPA
b: if the notice of the election is received by the EPA Section 151A inserted 8 December 2009 section 50 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 151A(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151A(2)(b)(i) amended 23 June 2020 section 124(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151A(2)(b)(ii) amended 26 November 2024 section 24 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 151A(2)(b)(ii) amended 23 June 2020 section 124(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 151A(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151A(4)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 151A(4)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
152: Nominated entities
1: The nominated entity for a consolidated group at any time is to be treated for the purposes of the ETS participant provisions
2: No entity is at any time a nominated entity for a consolidated group unless, at the time, the entity is a member of the consolidated group.
3: An entity that is a nominated entity for a consolidated group may give notice to the EPA EPA
a: the entity is to cease to be the agent for the consolidated group; and
b: another member entity is to become the agent for the consolidated group.
4: If an entity gives notice under subsection (3), then, from the date of receipt by the EPA
a: the notifying entity ceases to be the agent for the consolidated group; and
b: the other entity becomes the agent (nominated entity) for the consolidated group. Section 152 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 152(1) amended 23 June 2020 section 125 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 152(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 152(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
153: Effect of being member of consolidated group
1: The nominated entity of a consolidated group—
a: must have a holding account in the name of the consolidated group for the purposes of meeting the members’ obligations under the ETS participant provisions; and
b: must record in that holding account the names of all the members of the consolidated group; and
c: must submit a single annual emissions return for the consolidated group in respect of a year, which must—
i: meet the requirements of section 65(2) section 150(4)(a)(ii) 151(2)(a)(ii)
ii: be signed by the nominated entity in accordance with section 65(2)(f)
d: is responsible for applying for any allocation of units under section 86 eligible industrial activity
2: Each member of a consolidated group is jointly and severally liable to surrender or repay the amount of units assessed for the consolidated group or its members in any year.
3: Each member of a consolidated group is jointly entitled to be transferred, for removal activities or for allocations of New Zealand units, the amount of units assessed for the consolidated group or its members in any year.
4: The joint and several liability, or the joint entitlement,—
a: applies to a member only as it relates to a period when they were a member of the consolidated group; and
b: replaces the member’s sole liability or entitlement; and
c: must be met by transferring units from, or to, the consolidated group’s holding account.
5: Despite this section, in calculating an allocation or provisional allocation of New Zealand units (including a related adjustment or repayment) for an eligible industrial
5A: However, subsection (5) does not apply to any calculation of offset units under section 86BB
5B: Each member of a consolidated group is jointly and severally liable to pay any penalty or interest imposed on the consolidated group in relation to a period when they were a member of the consolidated group.
6: This section—
a: does not prevent the nominated entity submitting—
i: a quarterly emissions return under section 66
ii: submitting an emissions return under section 182A
b: applies with any necessary modifications to the period of an emissions return in either of those circumstances.
7: To avoid doubt, an emissions return for a consolidated group or any member of a consolidated group may be submitted only by the nominated entity of the consolidated group. Section 153 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 153(1) replaced 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(1)(d) amended 26 November 2024 section 25(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 153(2) replaced 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(3) replaced 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(4) replaced 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(5) replaced 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(5) amended 26 November 2024 section 25(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 153(5A) inserted 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(5B) inserted 23 June 2020 section 126 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(6)(a)(ii) amended 1 January 2023 section 263 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 153(6)(a)(ii) amended 8 December 2009 section 51(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 153(7) added 8 December 2009 section 51(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
154: Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4
Section 154 repealed 23 June 2020 section 127 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
155: Ceasing to be member of consolidated group
1: An entity that is a member of a consolidated group ceases to be a member of the consolidated group if—
a: the entity so elects, by notice to the EPA EPA
b: the entity ceases to be a member of the group in respect of which it is eligible to be a member of the consolidated group; or
c: the entity ceases to be a participant or an eligible person
d: the entity ceases to be the nominated entity and is not a participant or an eligible person
e: the entity is a member of a consolidated group that has ceased to have a nominated entity.
2: An entity is treated as having ceased to be a member of a consolidated group,—
a: if subsection (1)(a) applies and the notice of election to cease to be a member of the consolidated group is received by the EPA
i: by 30 September in any year, on and after 1 January of that year; or
ii: after 30 September in any year, on and after 1 January of the following year; and
b: if subsection (1)(b) applies, with effect from the date on which the entity ceased to be a member of the group in respect of which it is eligible to be a member of the consolidated group; and
c: if subsection (1)(c) applies, with effect from the date that,—
i: in the case of a participant, their name is removed from the register of participants under section 58 59
ii: in the case of an eligible person, they ceased to be an eligible person; and
d: if subsection (1)(d) applies, with effect from the date of receipt by the EPA section 152(3) consolidated
e: if subsection (1)(e) applies, with effect from the date on which the consolidated group ceased to have a nominated entity.
3: Subsection (1)(e) does not apply if—
a: the nominated entity ceases to be the nominated entity by reason of being liquidated; and
b: within 20 working days of EPA EPA
4: An entity that ceases to be a member of a group in respect of which it is eligible to be a member of the consolidated group, or is a member of a consolidated group that ceases to have a nominated entity, must as soon as practicable give notice to the EPA
5: The EPA
a: the EPA
i: subsection (1)(a); or
ii: section 152(3)
b: the EPA
c: the member being removed from the register of participants under section 58 59
6: Subsection (7) applies to an entity that—
a: ceases to be a member of a consolidated group but remains a participant or an eligible person
b: does not have its own holding account.
7: An entity to which this subsection applies must,—
a: immediately upon ceasing to be a member of the consolidated group, apply to open a holding account under section 18A
b: supply the account number of the holding account, or ensure the account number of the holding account is supplied, to the EPA Section 155 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 155(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(1)(c) amended 23 June 2020 section 128(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 155(1)(d) amended 23 June 2020 section 128(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 155(2)(a) substituted 8 December 2009 section 53(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 155(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(2)(c) replaced 23 June 2020 section 128(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 155(2)(d) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(2)(d) amended 8 December 2009 section 53(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 155(3)(b) amended 1 January 2013 section 59 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 155(3)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(4) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(5) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(5)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(5)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 155(6) added 8 December 2009 section 53(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 155(6)(a) amended 23 June 2020 section 128(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 155(7) added 8 December 2009 section 53(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 155(7)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
156: Effect of ceasing to be member of consolidated group
If an entity ceases to be a member of a consolidated group, the entity—
a: continues to be jointly and severally liable with other members of the consolidated group for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to, the activities of the members of the consolidated group, and jointly entitled to any units transferred for the removal activities, or for allocations relating to the eligible industrial
b: is not liable for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to, the activities of other members of the group, or entitled to the benefit of any units transferred for the removal activities, or for allocations relating to the eligible industrial Section 156 replaced 23 June 2020 section 129 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 156(a) amended 26 November 2024 section 26 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 156(b) amended 26 November 2024 section 26 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
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 EPA
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,—
a: if the notice of the election is received by the EPA
b: if the notice of the election is received by the EPA
3: The EPA EPA's
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 the ETS participant provisions in respect of emissions, removals, and allocations or an eligible industrial
5: Subsection (6) applies to a member of a consolidated group that—
a: removes 1 or more activities from the activities in respect of which the member is treated as a member of the consolidated group; and
b: remains a participant in respect of 1 or more of those activities; but
c: does not have its own holding account.
6: A member of a consolidated group to which this subsection applies must—
a: apply to open a holding account under section 18A
b: supply the account number of the holding account, or ensure the account number of the holding account is supplied, to the EPA Section 156A inserted 8 December 2009 section 54 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 156A(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 156A(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 156A(2)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 156A(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 156A(4) amended 26 November 2024 section 27 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 156A(4) amended 23 June 2020 section 130(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 156A(4) amended 23 June 2020 section 130(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 156A(6)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
157: Unincorporated bodies
1: This section applies if the members of an unincorporated body—
a: jointly carry out an eligible industrial
b: are required under section 180 or 204 Schedule 3
c: if paragraph (b) does not apply, jointly carry out an activity listed in Schedule 3 or 4
2: If this section applies,—
a: the members of the unincorporated body are not individually to be treated as persons carrying out the activity; and
b: if the activity is an eligible industrial
i: the members of the unincorporated body may not apply individually for an allocation of New Zealand units for the eligible industrial section 86
ii: the unincorporated body may, as the eligible person, make such an application under section 86
c: if the activity is an activity listed in Schedule 3 or 4
i: the members of the unincorporated body—
A: are not liable to, and may not, be registered as a participant under section 56
B: may not be registered as a participant under section 57
ii: the unincorporated body—
A: must notify the EPA section 56 Schedule 3
B: may apply to be registered as the participant under section 57 Schedule 4
C: when notifying under section 56 section 57 must EPA
iii: the EPA section 56(3) 57(5)
d: the unincorporated body must, when applying for an allocation, or notifying the EPA section 56 EPA section 57 EPA
i: the names and contact details of the members of the unincorporated body; and
ii: the name and contact details of the person to whom notices are to be given under this Act on behalf of the unincorporated body; and
e: subject to subsections (3) to (5), any change of members of the unincorporated body has no effect for the purposes of this Act.
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,—
a: jointly and severally liable for the obligations of the unincorporated body as an eligible person (or a person to whom units have been allocated) or as a participant in respect of the activity; and
b: jointly entitled to the benefits of the unincorporated body as an eligible person or as a participant in respect of the activity.
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,—
a: it is the joint and several liability of all the members of the unincorporated body to do the thing; and
b: any such thing done by 1 member of the unincorporated body is sufficient compliance with the requirement.
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)
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 industrial Schedule 3 or 4
a: must together be treated as the person carrying out the activity for the purposes of this Act; and
b: are, as relevant, together the eligible person in respect of the eligible industrial activity Schedule 3 Schedule 4
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. Section 157 substituted 8 December 2009 section 55 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 157(1)(a) amended 26 November 2024 section 28(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 157(1)(b) amended 26 November 2024 section 28(2) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 157(2)(b) amended 26 November 2024 section 28(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 157(2)(b)(i) amended 26 November 2024 section 28(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 157(2)(c)(ii)(A) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157(2)(c)(ii)(C) amended 23 June 2020 section 131 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 157(2)(c)(ii)(C) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157(2)(c)(iii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157(2)(d) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157(6) amended 26 November 2024 section 28(1) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 157(6)(b) amended 26 November 2024 section 28(3) Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
157A: Changes to unincorporated bodies that are participants
1: This section applies if—
a: a member of an unincorporated body joins or leaves an unincorporated body that is registered as a participant; or
b: the name or contact details of the person to whom notices are to be given changes; or
c: an unincorporated body wishes to change the name under which the body is registered as a participant.
2: If this section applies,—
a: the unincorporated body must, as relevant,—
i: within 20 working days of a person joining or leaving the unincorporated body, give the EPA
A: the name and contact details of the person joining or leaving; and
B: the date on which the person joined or left the unincorporated body; or
ii: within 20 working days of a change in the name or contact details of the person to whom notices are to be given, give the EPA
iii: give the EPA section 56 57
b: the EPA
i: amend—
A: the EPA's
B: the register kept under section 56 57
ii: notify the Registrar of the change in membership of the unincorporated body, the change in the name or contact details of the person to whom notices are to be given, or the change in the unincorporated body’s name; and
iii: notify the unincorporated body of the amendment to the EPA's
3: A notice given under subsection (2) must—
a: be in the prescribed form; and
b: contain any other information the EPA
c: be accompanied by the prescribed fee (if any).
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 187(1)(a)
a: the transfer of 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; and
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. Section 157A inserted 8 December 2009 section 55 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 157A(2)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(2)(a)(ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(2)(a)(iii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(2)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(2)(b)(i)(A) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(2)(b)(iii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(3)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 157A(4) amended 1 January 2023 section 264 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
158: Compensation for participants where public works result in liability to surrender units
1: This section applies if a person becomes a participant in respect of an activity listed in Schedule 3
2: If this section applies, the person who exercised the power must, to the extent that the participant is not compensated under any other Act, compensate the participant for any liability to surrender units that the participant incurs as a result of the exercise of the power.
3: All claims for compensation under subsection (2) must, unless settled by agreement, be determined in the manner provided by the Public Works Act 1981
4: For the purposes of this section, public work section 2 Section 158 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
159: Recovery of costs
1: This section applies if a person—
a: is required to surrender or repay units and does not do so, or does not surrender or repay the total number of units required to be surrendered or repaid, within 90 days after the date of a penalty notice given under section 134 or a notice under section 134AA(2)
b: is a participant and enters into an insolvency process.
2: If this section applies, the chief executive may seek to recover from the person, in a court of competent jurisdiction,—
a: the cost of the units owed by the person as a debt; and
b: the cost of the units that the insolvent participant would be required to surrender or repay under this Act (other than this provision)
c: any costs associated with bringing and carrying out the action to recover the debt.
3: For the purposes of subsection (2)(a), the following formula must be used to calculate the total cost of the units: A = B × C where— A is the total cost of the units B is the number of units C is the price, in dollars, of carbon per tonne on the relevant date, as set by or in accordance with regulations made under section 30W
4: Any administrative costs incurred in the recovery of costs under subsection (2) and any penalties incurred under section 134 to 134D , 190E 190H
5: In this section,— insolvency process Receiverships Act 1993 Companies Act 1993 Insolvency Act 2006 relevant date
a: the date that is 90 days after the date of the penalty notice; and
b: the date on which the person enters into an insolvency process. Section 159 replaced 1 January 2013 section 60 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 159(1)(a) amended 25 August 2023 section 9 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 159(1)(a) amended 1 January 2021 section 224(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 159(2)(b) amended 23 June 2020 section 132 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 159(3) replaced 1 January 2021 section 224(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 159(4) amended 1 January 2023 section 265 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 159(4) amended 1 January 2021 section 224(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 159(5) replaced 1 January 2021 section 224(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
160: Review of operation of emissions trading scheme
1: The Minister may, at any time, initiate a review of the operation and effectiveness of the emissions trading scheme
2: A review may be undertaken by any method the Minister considers appropriate.
3: Without limiting the Minister's discretion under subsections (1) and (2), the Minister may appoint a review panel—
a: to conduct a review under subsection (1); and
b: to report in accordance with the terms of reference.
4: If the Minister appoints a panel, the Minister must—
a: specify the written terms of reference for the review; and
b: make the report of the panel publicly available; and
c: present a copy of the report to the House of Representatives.
5: If the Minister initiates a review but does not appoint a panel, the Minister must—
a: consult persons (or their representatives) who appear to the Minister likely to have an interest in the review; and
b: consult representatives of iwi and Māori who appear to the Minister to be likely to have an interest in the review; and
c: specify the written terms of reference for the review; and
d: establish a procedure that the Minister is satisfied is appropriate, fair in the circumstances, and in accordance with the terms of reference. Section 160 replaced 1 January 2013 section 61 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 160(1) amended 23 June 2020 section 133(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 160(4)(b) replaced 23 June 2020 section 133(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
161: Appointment and conduct of review panel
1: If the Minister appoints section 160
a: ensure that there are a minimum of 3 and a maximum of 7 members; and
b: ensure that the majority of the members are not employees under the Public Service Act 2020
c: consider whether the members have, in the Minister's opinion, the appropriate knowledge, skill, and experience to conduct the review, including knowledge, skill, and experience of—
i: this Act; and
ii: international climate change obligations and any other relevant international agreement; and
iii: the operation of the emissions trading scheme
d: appoint 1 member as the chairperson of the panel.
2: The Minister must, by written notice to the panel, specify the terms of reference for the review to be conducted by the panel.
3: A review panel must complete a draft report on the review and provide the report to the Minister by the date set out in the terms of reference.
4: The review panel must—
a: allow the Minister at least 10 working days within which to respond to and comment on the contents of the draft report; and
b: after considering the Minister's response and comments (if any), prepare a final report and provide it to the Minister by the date set out in the terms of reference
5: In conducting a review, the review panel—
a: must establish a procedure that is appropriate, fair in the circumstances, and in accordance with the terms of reference for the review; and
b: must consult persons (or their representatives) that appear to the panel likely to have an interest in the review; and
c: may call for submissions. Section 161 substituted 8 December 2009 section 56 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 161(1) amended 1 January 2013 section 62(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 161(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 161(1)(b) amended 7 August 2020 section 135 Public Service Act 2020 Section 161(1)(c)(ii) replaced 23 June 2020 section 134(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 161(1)(c)(iii) amended 23 June 2020 section 134(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 161(3) replaced 1 January 2013 section 62(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 161(4)(b) amended 1 January 2013 section 62(3) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
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:
a: prescribing, for the purposes of subpart 2
b: prescribing in respect of each eligible industrial activity, as appropriate,—
i: a description of the activity, including (but not limited to)—
A: the input or inputs:
B: the output or outputs:
C: the physical, chemical, or biological transformation that takes place to transform the inputs into the outputs:
ii: whether the activity is—
A: highly emissions-intensive; or
B: moderately emissions-intensive:
iii: the products to be used as the basis for an allocation of New Zealand units in respect of the activity:
iv: a methodology or methodologies for calculating the amount of each prescribed product for the purposes of sections 81 to 84
c: prescribing, for each prescribed product,—
i: 1 or more allocative baselines; and
ii: for the purpose of sections 81 to 84
d: prescribing an allocation factor or factors for—
i: electricity:
ii: natural gas feedstock:
e: prescribing information that must be kept for the purposes of section 86D
2: Before recommending the making of regulations under subsection (1)(a) that prescribe an activity as an eligible industrial activity, the Minister must be satisfied that—
a: the effect of those regulations is—
i: likely to contribute to achieving—
A: any targets or budgets set for reducing emissions of greenhouse gases; and
B: New Zealand’s nationally determined contributions under the Paris Agreement; and
ii: more likely to contribute to those targets, budgets, and nationally determined contributions than the current allocation that is provided in accordance with regulations made under this section; and
iii: that the anticipated cost to the taxpayer of providing the allocation for the activity is likely to be less than the cost to the taxpayer of the current allocation that is provided in accordance with regulations made under this section; and
b: the activity is—
i: moderately emissions-intensive or highly emissions-intensive; and
ii: trade-exposed.
2A: However, subsection (2)(a) does not apply to regulations made under subsection (1)(a) to the extent that they relate to an eligible industrial activity prescribed before 1 July 2023.
3: The Minister may recommend the making of regulations under subsection (1) that have the effect of removing an activity from the regulations only if, in relation to the activity, the Minister is no longer satisfied of 1 or both of the matters described in subsection (2)(b).
3A: Regulations made under subsection (1) must not amend an allocative baseline for a prescribed product of an eligible industrial activity that has been prescribed under subsection (1)(c) unless—
a: at least 5 years have passed—
i: since the baseline was most recently amended after the Minister issued a notice under section 161D(1)
ii: if subparagraph (i) does not apply, since the baseline for the product was first prescribed; and
b: before recommending the making of the regulations that amend the baseline, the Minister has issued a notice under section 161D(1)
c: the Minister is satisfied that the current allocation setting for the product, as calculated in accordance with the formula in subsection (4C)(a), is equal to or greater than the prospective allocation setting for the product, as calculated in accordance with the formula in subsection (4C)(b).
3B: However, subsection (3A) does not apply to an amendment of an allocative baseline—
a: due to a change to any 1 or more of the following:
i: an emissions factor:
ii: an electricity allocation factor:
iii: an exemption set out in an order made under section 60
b: on the basis of information received in response to a notice issued in accordance with section 161F(5)
4: Despite anything in this section or section 161C
4A: The Minister may recommend the making of regulations under subsection (1)(d)(i) that prescribe an electricity allocation factor only if the allocation factor has been notified to the Minister under section 161FA
4B: Regulations made under subsection (1)—
a: may permit persons to apply for and receive an allocation in respect of a period beginning on 1 January of the year in which regulations are made even if the regulations come into force on a later date in that year:
b: may affect the level of allocation a person is entitled to receive for a year in which the person has received a provisional allocation even if the regulations come into force in the year following the year for which the person received the provisional allocation:
c: may, if they are of a kind described in section 84AA(1)(b)
4C: For the purposes of subsection (3A)(c),—
a: the current allocation setting for the product must be calculated in accordance with the following formula: CAS = AB × LA where— CAS is the current allocation setting AB is the allocative baseline for the product prescribed in regulations made under this section as in force immediately before the recommendation is made LA is the level of assistance for the eligible industrial activity for the current year, which is the level of assistance described in item LA in the formula in section 83(2)
b: the prospective allocation setting for the product must be calculated in accordance with the following formula: PAS = PB × OLA where— PAS is the prospective allocation setting PB is the prospective allocative baseline for the product as calculated in accordance with section 161C(2) to (5) OLA is the original level of assistance for the activity, which is,—
i: for a moderately emissions-intensive eligible industrial activity, 0.6:
ii: for a highly emissions-intensive eligible industrial activity, 0.9.
5: The following regulations made under subsection (1) come into force on the day 2 years publication under the Legislation Act 2019
a: a regulation that revokes a regulation prescribing an activity as an eligible industrial activity:
b: a regulation that amends a regulation providing that an eligible industrial activity is highly emissions-intensive to provide that the eligible industrial activity is moderately emissions-intensive.
6: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 161A inserted 8 December 2009 section 56 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 161A(1)(d) replaced 23 June 2020 section 135(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 161A(2) replaced 25 August 2023 section 14(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(2A) inserted 25 August 2023 section 14(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(3) replaced 25 August 2023 section 14(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(3A) inserted 25 August 2023 section 14(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(3B) inserted 25 August 2023 section 14(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(4) amended 23 June 2020 section 135(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 161A(4A) inserted 25 August 2023 section 14(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(4B) inserted 25 August 2023 section 14(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(4C) inserted 25 August 2023 section 14(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(5) amended 25 August 2023 section 14(3) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161A(5) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 161A(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
161B: Australian eligible industrial activities
Section 161B repealed 23 June 2020 section 136 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
161C: Eligible
1: For the purposes of section 161A(2)
a: moderately emissions-intensive if the specified emissions from the activity are equal to or greater than 800 whole tonnes per $1 million of specified revenue from the activity, but less than 1 600 whole tonnes per $1 million of specified revenue from the activity:
b: highly emissions-intensive if the specified emissions from the activity are equal to or greater than 1 600 whole tonnes per $1 million of specified revenue from the activity:
c: trade-exposed unless, in the Minister’s opinion,—
i: there is no international trade of the output of the activity across oceans; or
ii: it is not economically viable to import or export the output of the activity.
2: If an activity meets the criteria in section 161A(2) 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,—
a: the specified revenue from an activity is the amount of revenue obtained by adding together the revenue from the activity of persons who provided the information referred to in section 161D(1)(e)(i)(A)
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)
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)
d: the specified total amount of product from the activity is the amount of the product obtained by adding together the amount of the product produced by each person who provided the information referred to in section 161D(1)(e)(i)(D)
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)
a: after taking into account—
i: any electricity-related contract that—
A: 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; and
B: was in force on the date of the notice; or
ii: any information relating to any such contracts:
b: as a consequence of any change that occurred on or after the date of the notice to any 1 or more of the following:
i: an emissions factor:
ii: an electricity allocation factor:
iii: an exemption set out in an order made under section 60
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. Section 161C inserted 8 December 2009 section 56 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 161C heading amended 23 June 2020 section 137(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 161C(1) amended 25 August 2023 section 15(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161C(2) amended 25 August 2023 section 15(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161C(4) replaced 25 August 2023 section 15(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
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
a: specify a description of an activity, including the matters listed in section 161A(1)(b)(i)
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
c: specify in respect of the activity—
i: the emissions that must be included in any information provided under paragraph (e) (the included emissions
ii: the emissions that may not be included in any information provided under paragraph (e) (the excluded emissions
d: specify the financial years for which information must be provided under paragraph (e):
e: require any person carrying out the activity specified under paragraph (a) on the date of the notice to provide to the Minister—
i: any or all of the following information for the financial years specified in the notice:
A: financial statements that show the total revenue of the person from the activity in those years, calculated in accordance with any methodology specified under paragraph (g)(i):
B: information showing the number of whole tonnes of included emissions from the activity carried out by the person in those years, calculated in accordance with any methodology specified under paragraph (g)(ii) (emissions-intensity):
C: information showing the number of whole tonnes of included emissions from the activity carried out by the person in those years, calculated in accordance with any methodology specified under paragraph (g)(iii) (allocative baselines):
D: information showing the amount of each specified product produced by the person in those years calculated in accordance with any methodology specified under paragraph (g)(iv):
ii: copies of any electricity-related contracts in force on the date of the notice that affect the electricity cost increase that the persons carrying out the activity will face owing to the obligation imposed by this Act on participants to surrender units, or any information in relation to such contracts:
iii: any other information that would, in the Minister’s opinion, assist the Minister to determine any of the matters listed in subsection (3):
f: specify the date by which the information required to be provided under paragraph (e) must be provided to the Minister, which date must be no earlier than 30 working days from the date of the notice:
g: specify a methodology or methodologies for calculating—
i: revenue from the activity for the purpose of paragraph (e)(i)(A):
ii: emissions from the activity (emissions-intensity) for the purpose of paragraph (e)(i)(B):
iii: emissions from the activity (allocative baselines) for the purpose of paragraph (e)(i)(C):
iv: the amount of any specified product from the activity for the purpose of paragraph (e)(i)(D).
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) sections 169(2) and (3), 170, 177
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:
a: whether an activity meets the criteria listed in section 161A(2)
i: whether the activity is highly emissions-intensive or moderately emissions-intensive; and
ii: the appropriate allocative baseline or baselines for each product of the activity:
b: whether it is necessary to adjust any person's number of whole tonnes of included emissions provided under subsection (1)(e)(i)(C) in accordance with section 161C(4)
c: any other matter listed in section 161A(1)
d: whether any matter should be considered by a review under section 160
e: whether the current allocation setting for the product is equal to or greater than the prospective allocation setting for the product (as described in section 161A(3A)(c)
3A: The Minister must, for the purpose described in subsection (3)(e), issue a notice under this section in respect of an eligible industrial activity at least once in every 10-year period.
4: A notice under this section is secondary legislation ( see Part 3
5: Following the provision of information by any person in accordance with subsection (1)(e), the Minister may give notice to the person—
a: requiring the person to provide any further information that the Minister considers is necessary to enable the verification of the accuracy of the information; and
b: specifying the date by which the further information specified in the notice must be provided to the Minister.
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
a: any person who carried out the activity at the date of the notice and who without reasonable excuse failed to supply the data and information required by the date specified in a notice given under subsection (6); and
b: any associated person of a person referred to in paragraph (a). The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication The maker must publish it in the Gazette LA19 ss 73 74(1)(a) cl 14 Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 161D inserted 8 December 2009 section 56 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 161D(1) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 161D(3)(a) amended 25 August 2023 section 16(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161D(3)(e) inserted 25 August 2023 section 16(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161D(3A) inserted 25 August 2023 section 16(3) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161D(4) replaced 28 October 2021 section 3 Secondary Legislation Act 2021
161E: Requirements in respect of notice given under section 161D
1: Before giving notice of an activity under section 161D(1)
a: the requirement to define each activity by reference to a physical, chemical, or biological transformation of inputs into outputs; and
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
c: the desirability of defining activities—
i: consistently and equitably across industries; and
ii: in a way that takes into account the impact that definitions may have on business investment, geographical location, and the structure of activities; and
iii: in a way that takes into account the potential for intermediate inputs produced when the activity is carried out to be substituted for bought-in inputs; and
d: the desirability of there being no overlap between activity definitions; and
e:
f: any other matters the Minister considers relevant.
2: For the purposes of section 161D(1)(c)
a: the emissions that must be included in any information provided under section 161D(1)(e)(i)(B) and (C)
i: emissions of greenhouse gases resulting from—
A: the direct use of any coal, natural gas, geothermal fluid, used oil, or waste oil as part of the activity; and
B: the direct use of any coal, natural gas, geothermal fluid, used oil, or waste oil to generate steam that is used as part of the activity; and
C: any of the activities listed in Part 4
D: the direct use of any liquid fossil fuel in stationary equipment; and
E: fugitive coal seam gas from coal that is used as part of, or to generate steam that is used as part of, the activity; and
F: the combustion of used tyres for the purpose of generating electricity or industrial heat; and
G: the consumption of carbon dioxide as a feedstock if that carbon dioxide is derived from an activity in Schedule 3 4
ii: a number of whole tonnes of emissions, which must be treated for the purpose of this section and sections 161C 161D E = MWh × pEAF where— E is the number of whole tonnes of emissions from the activity that may be included in any information submitted under section 161D(1)(e)(i)(B) and (C) MWh is the number of megawatt hours of electricity used when the activity is carried out pEAF is a prescribed electricity allocation factor; and
b: the emissions that may not be included in any information provided under section 161D(1)(e)(i)(B) and (C)
i: the use of machinery and equipment, and other processes, that are not integral to, nor essential to, the physical, chemical, biological, or other transformation taking place when the activity is carried out; and
ii: any extraction or production of raw materials that are subsequently used when the activity is carried out; and
iii: the transportation of inputs used in the activity to storage at the location where the activity is carried out; and
iv: the transportation of outputs of the activity from storage at the location where the activity is carried out to another location; and
v: the transportation of intermediate products between different locations where the activity is carried out; and
vi: operations that are complementary to the activity, including (but not limited to) packaging, head office operations, and administration and marketing (whether carried out at the same location where the activity is carried out or at another location); and
vii: the generation of electricity at the location where the activity is carried out; and
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
i: the matters listed in subsection (1); and
ii: the desirability of all notices given under section 161D
3:
4:
5: See section 3B section 161D(1)(a) Section 161E inserted 8 December 2009 section 56 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 161E(1)(e) repealed 23 June 2020 section 139(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 161E(2)(a) amended 1 January 2013 section 65(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 161E(2)(a)(i)(D) inserted 1 January 2013 section 65(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 161E(2)(a)(i)(E) inserted 1 January 2013 section 65(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 161E(2)(a)(i)(F) inserted 25 August 2023 section 17(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161E(2)(a)(i)(G) inserted 25 August 2023 section 17(1) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161E(2)(a)(ii) amended 25 August 2023 section 17(2) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161E(2)(b) amended 25 August 2023 section 17(3) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161E(3) repealed 25 August 2023 section 17(4) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161E(4) repealed 25 August 2023 section 17(4) Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023 Section 161E(5) inserted 23 June 2020 section 139(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
161F: When projected data may be provided
1: Subsection (2) applies if actual data is not (or may not be) available in respect of an activity for the years specified in a notice made under section 161D
a: an activity (a new activity
b: an eligible industrial activity—
i: that involves a product (a new product section 161A(1)
ii: that includes an allocative baseline (a different allocative baseline section 161A(1)
iii: for which actual data is (or may not be) available for some other reason.
2: A notice made under section 161D sections 161D and 161E
3: If a new activity is prescribed as an eligible industrial activity in reliance (in whole or in part) on projected information provided in accordance with subsection (2), the activity must be prescribed as moderately emissions-intensive (regardless of whether any information indicates that the activity is highly emissions-intensive).
4: Subsection (3) is subject to section 84AA(2)
5: The Minister must issue a notice under section 161D section 161A
6: The notice must require the information described in section 161D(1)(e)
7: In this section,— first relevant financial year
a: regulations have been made under section 161A
i: prescribing a new activity as an eligible industrial activity; or
ii: including a new product or setting a different allocative baseline in relation to an eligible industrial activity; and
b: a person has applied for industrial allocation under section 86 second relevant financial year Section 161F inserted 25 August 2023 section 18 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
161F: Consultation on activities that may be prescribed as eligible industrial activities
Section 161F repealed 23 June 2020 section 140 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
161FA: Determining electricity allocation factors
1: The Minister may recommend the making of regulations under section 161A(1)(d)(i)
2: The Electricity Authority must notify the Minister of the allocation factor for a year on or before 31 July in that year determined in accordance with the following formula: a = (b + c + d) ÷ 3 where— a is the allocation factor for the relevant year b is the ETS impact on the price of electricity in the financial year that ends on 30 June in the relevant year c is the ETS impact on the price of electricity in the financial year preceding the financial year described in the definition of variable b d is the ETS impact on the price of electricity for the financial year preceding the financial year described in the definition of variable c.
3: The Electricity Authority must use a market model to determine the ETS impact on the price of electricity for each of the financial years described in the definitions of variables b, c, and d.
4: The market model must—
a: be consistent with the market clearing algorithm set out in the Electricity Industry Participation Code 2010; and
b: use, as the counterfactual input, a reasonable estimate of the offers that would have been made for the electricity actually offered in the financial year if there were no liability to surrender units to cover emissions; and
c: comply with any regulations made under subsection (6).
5: The Electricity Authority must ensure that the market model, and any input data necessary to operate the model, is publicly available.
6: The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations prescribing modelling assumptions for the purpose of the market model.
7: In this section, ETS impact
8: Regulations made under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 161FA inserted 1 January 2024 section 19 Climate Change Response (Late Payment Penalties and Industrial Allocation) Amendment Act 2023
161G: Regulations in relation to eligible agricultural activities
Section 161G repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
161H: Power to request information showing output from eligible agricultural activities
Section 161H repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
162: Order in Council
1: The Governor-General may, by Order in Council, in accordance with a recommendation of the Minister, amend Part 2
2: See sections 3A 3B
3:
4: An Order in Council made under subsection (1) takes effect for the removal activity or activities concerned on and from—
a: 1 January of the next year, if made on or before 30 June in any year; or
b: 1 July of the next year, if made on or after 1 July in any year.
5: An order under this section—
a: is secondary legislation ( see Part 3
b: must be confirmed by an Act ( see subpart 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 162 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 162 heading amended 23 June 2020 section 142(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 162(2) replaced 23 June 2020 section 142(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 162(3) repealed 23 June 2020 section 142(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 162(4) replaced 1 January 2016 section 14 Legislation (Confirmable Instruments) Amendment Act 2015 Section 162(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
162A: Orders are confirmable instruments
Section 162A repealed 28 October 2021 section 3 Secondary Legislation Act 2021
163: Regulations relating to methodologies and verifiers
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:
a: prescribing the data or other information that must be collected under section 62(1)(a)
ab: authorising, in respect of a forestry activity EPA
b: prescribing a methodology or methodologies for calculating emissions or removals from an activity for the purposes of section 62(1)(b)
c: prescribing the data or other information, or the calculations of emissions or removals, that must be verified by a person or organisation recognised by the EPA section 92
d: authorising the EPA to issue guidelines or standards by notice
i: the matters prescribed under paragraph (a); and
ii: the method and format for determining the spatial extent of an area of forest land; and
e: prescribing, for the purposes of section 92
i: the process by which a person or organisation may be recognised as being able to verify information or calculations for the purposes of section 62(1)(a) section 164
ii: the expertise, technical competence, or qualifications required for recognition as a person or organisation able to verify unique emissions factors or information relating to 1 or more types of data or information, the calculations of certain types of emissions or removals, or 1 or more activities; and
iii: any additional—
A: requirements for recognition of an organisation; and
B: restrictions on the employees of the organisation who may carry out the duties of the organisation in respect of the recognition; and
iv: the period for which a person or organisation may be recognised, and the process for the renewal of recognition; and
v: conditions of recognition, which may include (but are not limited to) ongoing competency and professional standard requirements, membership of a professional body, and the provision of reports to the EPA
vi: the procedure for, and circumstances in which, recognition may be suspended or revoked; and
vii: fees to enable the recovery of the direct and indirect costs of the EPA in recognising
2: A regulation made under subsection (1) may apply—
a: generally or with respect to different classes of activity, persons, parts of New Zealand, or other things; or
b: in respect of the same classes of activity, persons, parts of New Zealand, or other things, in different circumstances; or
c: generally or at any specified time of each year.
3: A regulation made under subsection (1)(a) to (d) may have retrospective effect if the regulation is expressed to apply from the commencement of the year in which it is made, or in respect of a period after any particular date within the year in which it is made.
4: A regulation made under subsection (1)(b), and any associated regulations made under other paragraphs of subsection (1),—
a: may, without limiting subsection (1), relate to emissions or removals that—
i: stem directly from an activity; or
ii: are associated with a product or other thing that is the subject of the activity; and
b: may require the use of a computer programme available via the Internet site of the EPA
c: must not cover any emissions in respect of which another person is required to surrender units or any removals of greenhouse gases in respect of which another person is entitled to a transfer of New Zealand units under this Act.
5: In recommending the making of regulations international climate change obligations
6:
7: A person who has complied with guidelines or standards issued by the EPA in regulations made under subsection (1)(d) is, in the absence of proof to the contrary, presumed to have complied with the relevant requirements specified in regulations corresponding to those guidelines or standards.
8: Regulations under this section—
a: are secondary legislation ( see Part 3
b: have effect in accordance with subsection (3) even if they are not yet published.
9: If regulations authorise the EPA to issue guidelines or standards under subsection (1)(d),—
a: those guidelines or standards are secondary legislation ( see Part 3
b: the regulations must contain a statement to that effect. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (8). Legislation Act 2019 requirements for secondary legislation referred to in subsection (8) Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (9)(a). Legislation Act 2019 requirements for secondary legislation referred to in subsection (9)(a) Publication See the relevant publication, presentation, and disallowance table in the secondary legislation referred to in subsection (8) LA19 ss 73 74 cl 14 Presentation The Minister must present it to the House of Representatives, unless a transitional exemption applies under Schedule 1 LA19 s 114 cl 32 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 163 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 163(1)(a) amended 1 January 2023 section 266(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 163(1)(ab) inserted 8 December 2009 section 57 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 163(1)(ab) amended 23 June 2020 section 143(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 163(1)(ab) amended 5 December 2011 section 18(1) Climate Change Response Amendment Act 2011 Section 163(1)(b) amended 1 January 2023 section 266(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 163(1)(c) amended 5 December 2011 section 18(1) Climate Change Response Amendment Act 2011 Section 163(1)(d) replaced 1 January 2013 section 66(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 163(1)(d) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 163(1)(e)(i) amended 1 January 2023 section 266(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 163(1)(e)(v) amended 5 December 2011 section 18(1) Climate Change Response Amendment Act 2011 Section 163(1)(e)(vii) amended 5 December 2011 section 18(2) Climate Change Response Amendment Act 2011 Section 163(4)(b) amended 5 December 2011 section 18(3) Climate Change Response Amendment Act 2011 Section 163(5) amended 23 June 2020 section 143(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 163(5) amended 23 June 2020 section 143(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 163(6) repealed 28 October 2021 section 3 Secondary Legislation Act 2021 Section 163(7) inserted 1 January 2013 section 66(4) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 163(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 163(9) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
164: Regulations relating to unique emissions factors
1: If regulations made under section 163(1)(b)
a: providing for a process by which a participant may apply to the EPA
b: prescribing the information that must be collected to support an application for use of a unique emissions factor:
c: prescribing the criteria for a unique emissions factor, which may include (but are not limited to)—
i: the percentage by which a unique emissions factor must vary from the default emissions factor, before an application for a unique emissions factor may be made:
ii: the types of greenhouse gases to be reflected in the unique emissions factor:
iii: how the unique emissions factor is to be calculated:
iv: any criteria by which the default emissions factor has been set, that reflect the matters in section 163(4)
v: a requirement that the unique emissions factor be verified by a recognised verifier.
2: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 164 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 164(1)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 164(2) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
165: Regulations relating to offsetting of pre-1990 forest land
Section 165 repealed 1 January 2013 section 67 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
166: Consultation and commencement for regulations about methodologies, verifiers, and unique emissions factors
1: This section applies to regulations made under—
a: section 163
b: section 164
2: See sections 3A 3B
3: The regulations come into force 3 months after the date of their publication under the Legislation Act 2019 Section 166 replaced 23 June 2020 section 144 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 166(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021
167: Regulations relating to fees and charges
1: The Governor-General may, by Order in Council, make regulations prescribing the amount of any fees payable under the ETS participant provisions
2: The Governor-General may, by Order in Council, make regulations prescribing the fees or charges payable by a person—
a: who has made an application for an emissions ruling under section 107 EPA
i: receiving and processing the application; and
ii: considering whether to make the ruling, making the ruling, or declining to make the ruling; or
b: who is a participant, or who has applied to be a participant, in respect of a removal activity, to enable the recovery of all or part of the direct and indirect costs of the EPA in doing 1 or more of the following in relation to the activity:
i: publicising and informing people about the operation of the ETS participant provisions:
ii: administering the operation of the ETS participant provisions:
iii: enforcing and monitoring compliance with the ETS participant provisions:
iv: doing anything else authorised or required under the ETS participant provisions; or
c: who submits an input return under section 194 section 194A
3: Examples of the costs that may be recovered under subsection (2) include (but are not limited to)—
a: the cost of processing applications and returns:
b: the costs of providing, operating, and maintaining systems, databases, and other processes in connection with—
i: the making of emissions rulings; or
ii: the administration of the ETS participant provisions in relation to a removal activity; or
iii: input returns:
c: the costs of services provided by third parties.
4: Regulations made under subsection (2) may—
a: specify the persons or classes of persons by whom any fees and charges prescribed or fixed are payable; and
b: provide for partial cost recovery from one class of persons and full cost recovery from another (if this is desirable to further the purposes of this Act); and
c: prescribe the matters for which direct and indirect costs may be recovered; and
d: prescribe a scale of fees and charges, or a rate based on the time involved in carrying out the function or duty or in exercising the power; and
e: prescribe a scale of fees and charges, or a fee or charge for a prescribed function, power, or duty; and
f: prescribe a formula for fixing fees and charges; and
g: prescribe an annual fee or charge, or classes of fees or charges, payable by participants or classes of participants; and
h: prescribe the time of payment of fees and charges, the means of collection of fees and charges, and the person who is responsible for paying a fee or charge ; and
i: authorise the EPA
j: authorise the EPA
5: Subsection (2) is subject to sections 173(2) 174(1)
6: Regulations under this section are secondary legislation ( see Part 3
7: If regulations authorise the EPA to grant exemptions, waivers, or refunds referred to in subsection (4)(j),—
a: an instrument granting an exemption or a waiver or refund is secondary legislation ( see Part 3
b: the regulations must contain a statement to that effect. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (6). Legislation Act 2019 requirements for secondary legislation referred to in subsection (6) Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (7)(a). Legislation Act 2019 requirements for secondary legislation referred to in subsection (7)(a) Publication See the relevant publication, presentation, and disallowance table in the secondary legislation referred to in subsection (6) LA19 ss 73 74 cl 14 Presentation The Minister must present it to the House of Representatives, unless a transitional exemption applies under Schedule 1 LA19 s 114 cl 32 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 167 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 167(1) amended 23 June 2020 section 145(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(2) substituted 8 December 2009 section 58(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 167(2)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 167(2)(b) replaced 23 June 2020 section 145(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(2)(c) inserted 23 June 2020 section 145(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(2)(c) amended 1 January 2023 section 267(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(2)(c) amended 1 January 2023 section 267(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(3)(b) substituted 8 December 2009 section 58(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 167(3)(b)(ii) replaced 23 June 2020 section 145(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(3)(b)(iii) inserted 23 June 2020 section 145(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 167(4)(h) amended 8 December 2009 section 58(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 167(4)(i) added 8 December 2009 section 58(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 167(4)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 167(4)(j) added 8 December 2009 section 58(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 167(4)(j) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 167(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Section 167(7) inserted 28 October 2021 regulation 40 Legislation Act (Amendments to Legislation) Regulations 2021
168: Other regulations
1: The Governor-General may, by Order in Council, make regulations for 1 or more of the following purposes:
a: specifying the fuel that is obligation fuel and the jet fuel that is obligation jet fuel for the purposes of this Act; and
b: prescribing matters in respect of which applications for emissions rulings may be made; and
c:
ca: prescribing a date by which an application to the EPA section 180B
d: prescribing forest species that are tree weeds
e: prescribing criteria for carbon accounting areas; and
f: requiring notification by the EPA section 195
g: providing for the circumstances in which a notice of the status of forest land must be cancelled by the Registrar-General of Land, a Registrar of the Maori Land Court, or the Registrar of Deeds; and
h:
i:
j: prescribing a format or formats for the keeping of records under section 62(1)(d)
k: prescribing the form and manner in which any application, return, information, or other document must be submitted or notified under the ETS participant provisions
l: prescribing the information that must be provided in or with applications or other documents under the ETS participant provisions
m: prescribing a threshold for the purposes of any removal activity listed in Part 2
n: prescribing criteria for registering as a participant in relation to an activity listed in—
i: subpart 1
ii: subpart 2
iii: subpart 3
naa: prescribing additional criteria for the approval of—
i: an application to reconfigure carbon accounting areas for standard or permanent forestry, for the purposes of section 188A(2)(c)
ii: an application to change activity on post-1989 forest land, for the purposes of section 189A(2)(d)
na: prescribing rules for the rounding of amounts of units calculated under, or referred to in, this Act; and
nb: prescribing the meaning (or things that are included within the meaning) of New Zealand’s best practice forest management for the purposes of section 179A
o: providing for any other matters contemplated by the ETS participant provisions Schedules 3 4
2: The power to prescribe the form of any application, return, information, or other document under subsection (1) includes the power to prescribe an electronic format to be used for the electronic transmission of data to or between computers.
3: See sections 3A 3B
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 168 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 168(1)(c) repealed 8 December 2009 section 59(1) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 168(1)(ca) inserted 1 July 2009 section 4 Climate Change Response (Emissions Trading Forestry Sector) Amendment Act 2009 Section 168(1)(ca) amended 1 January 2023 section 268(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(ca) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 168(1)(ca) amended 8 December 2009 section 59(2) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 168(1)(d) amended 1 January 2013 section 69(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 168(1)(f) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 168(1)(h) repealed 8 December 2009 section 59(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 168(1)(i) repealed 8 December 2009 section 59(3) Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 168(1)(j) amended 1 January 2023 section 268(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(k) amended 23 June 2020 section 146(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(l) amended 23 June 2020 section 146(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(n) replaced 1 January 2013 section 69(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 168(1)(naa) inserted 1 January 2023 section 268(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(na) inserted 23 June 2020 section 146(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(nb) inserted 23 June 2020 section 146(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(1)(o) amended 23 June 2020 section 146(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(3) inserted 23 June 2020 section 146(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 168(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
169: Incorporation by reference in
certain regulations
1: The following written material may be incorporated by reference in regulations made under a relevant empowering section
a: decisions, computer programmes, rules, guidelines, principles, measures, methodologies, modalities, procedures, mechanisms, or other matters; and
b: any standards, requirements, or recommended practices of a government agency, standard-setting organisation, or professional body.
2: Material may be incorporated by reference in regulations—
a: in whole or in part; and
b: with modifications, additions, or variations specified in the regulations.
3: Material incorporated by reference in regulations has legal effect as part of the regulations.
4: In this section and sections 170 to 174 relevant empowering section section 161A 163 164 167 168 180G 181W 190F 191I 192U 193R 194B 196F 197A Section 169 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 169 heading amended 23 June 2020 section 147(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 169(1) amended 23 June 2020 section 147(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 169(4) inserted 23 June 2020 section 147(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 169(4) amended 26 November 2024 section 29 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024 Section 169(4) amended 1 January 2023 section 269 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
170: Effect of amendments to, or replacement of, material incorporated by reference in regulations
1: Subsection (2) applies to an amendment to, or a replacement of, material if the material—
a: is incorporated by reference in regulations made under a relevant empowering section (the original regulations
b: is adopted, agreed on, made, or approved by an international government agency, international organisation, or international professional body.
2: The amendment or replacement of the material has legal effect as part of the regulations only if regulations made under the relevant empowering section after the original regulations were made state that the particular amendment or replacement has that effect.
3: Subsection (4) applies to an amendment to, or a replacement of, material if the material—
a: is incorporated by reference in regulations made under a relevant empowering section (the original regulations
b: is not material described by subsection (1)(b).
4: The amendment or replacement of the material has immediate legal effect as part of the original regulations (without the need for an amendment to the original regulations, or the making of other regulations, to state that effect). Section 170 replaced 23 June 2020 section 148 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
171: Proof of material incorporated by reference
1: A copy of any material incorporated by reference in regulations, including any amendment to, or replacement of, the material ( material
a: certified as a correct copy of the material by the chief executive; and
b: retained by the chief executive.
2: The production in proceedings of a certified copy of the material incorporated by reference is, in the absence of evidence to the contrary, sufficient evidence that the material produced is the material incorporated by reference in regulations. Section 171 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
172: Effect of expiry of material incorporated by reference
1: This section applies to material incorporated by reference in regulations, made under a relevant empowering section, that expires, is revoked, or ceases to have effect without being amended or replaced.
2: The material ceases to have legal effect as part of the regulations only if regulations made under the relevant empowering section state that the material ceases to have legal effect. Section 172 replaced 23 June 2020 section 149 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
173: Requirement to consult
1: This section applies to regulations made under a relevant empowering section that—
a: incorporate material by reference; or
b: state, as required by section 170(2)
2: Before regulations to which this section applies are made, the chief executive must—
a: make copies of the material proposed to be incorporated by reference, or the proposed amendment to or replacement of material incorporated by reference ( proposed material
b: make copies of the proposed material available for purchase at a reasonable price; and
c: give notice in the Gazette
i: that the proposed material is available for inspection during working hours, free of charge; and
ii: the place where the proposed material can be inspected, and the period during which it can be inspected; and
iii: that copies of the proposed material can be purchased; and
iv: the place where the proposed material can be purchased; and
d: allow a reasonable opportunity for persons to comment on the proposal to incorporate the proposed material by reference; and
e: consider any comments these persons make.
3: The reference in subsection (2) to the proposed material
4: Before regulations to which this section applies are made, the chief executive—
a: may make copies of the proposed material available in any other way that the chief executive considers appropriate in the circumstances (for example, via an Internet site); and
b: must, if paragraph (a) applies, give notice in the Gazette
5: A failure to comply with this section does not invalidate regulations that incorporate material by reference. Section 173 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 173(1) replaced 23 June 2020 section 150 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
174: Public access to material incorporated by reference
1: The chief executive—
a: must make the material specified in subsection (2) ( material
b: must make copies of the material available for purchase at a reasonable price at the office of the chief executive; and
c: may make copies of the material available in any other way that the chief executive considers appropriate in the circumstances (for example, via an Internet site); and
d: must give notice in the Gazette
i: that the material is incorporated in the regulations and—
A: the date on which the regulations were made; or
B: if the material has immediate legal effect under section 170(4)
ii: that the material is available for inspection during working hours, free of charge; and
iii: the place where it can be inspected; and
iv: that copies of the material can be purchased; and
v: the place where the material can be purchased; and
vi: that, if copies of the material are made available under paragraph (c), the material is available in other ways and the details of where or how the material can be accessed or obtained.
2: The material is—
a: material incorporated by reference in regulations made under a relevant empowering section
b: any amendment to, or replacement of, that material that is incorporated in the regulations or the material specified in paragraph (a) with the amendments or replacement material incorporated:
c: if the material specified in paragraph (a) or (b) is not in an official New Zealand language, an accurate translation of the material in an official New Zealand language.
3: A failure to comply with this section does not invalidate regulations that incorporate material by reference. Section 174 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 174(1)(d)(i) replaced 23 June 2020 section 151(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 174(2)(a) amended 23 June 2020 section 151(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
175: Application of Legislation Act 2019 to material incorporated by reference
Subpart 1 section 114 Section 175 replaced 28 October 2021 section 3 Secondary Legislation Act 2021
176: Application of Regulations (Disallowance) Act 1989 to material incorporated by reference
Section 176 repealed 5 August 2013 section 77(3) Legislation Act 2012
177: Application of
Standards and Accreditation Act 2015 Sections 169 to 176 sections 29 to 32 Section 177 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 177 heading amended 1 March 2016 section 45(1) Standards and Accreditation Act 2015 Section 177 amended 1 March 2016 section 45(1) Standards and Accreditation Act 2015
178: Recovery of fees or charges
1: A fee or charge that is not paid in accordance with regulations made under this Part may be recovered from the person liable to pay the fee or charge by the EPA
2: The EPA EPA Section 178 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 178(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 178(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
178A: Option to pay money instead of surrendering
, repaying, or reimbursing units
1: This section applies if—
a: either—
i: a person is required to surrender or repay units—
A: as a result of submitting an emissions return; or
B: under section 123(3) or (6) 180C(2)(b)
ii: the EPA is required by this Act to reimburse units to any person; and
b: the units that must be surrendered, repaid, or reimbursed are in respect of,—
i: for an activity of standard forestry section 178C(3)
ii: for any other activity, emissions or removals that occurred in a calendar year that ends before the start date for auctions; or
iii: an activity that the person ceased to participate in, and for which the person has submitted an emissions return, before the start date for auctions.
1A: If subsection (1)(b)(i) applies, for the purposes of this section, the units in respect of the emissions or removals attributed to a calendar year must be rounded to the nearest whole number (where 0.5 is rounded up).
2: Despite anything in this Act, if this section applies, a person may satisfy the person’s obligation to surrender, repay, or reimburse units,—
a: in the case of a person other than the EPA, by—
i: surrendering or repaying the units in accordance with the relevant provision
ii: paying the fixed price
iii: a combination of the actions provided for in subparagraphs (i) and (ii); or
b: in the case of the EPA, by—
i: reimbursing units to a person in accordance with the procedure specified in section 124
ii: paying the fixed price
iii: a combination of the actions provided for in subparagraphs (i) and (ii).
3: For the purposes of subsection (2)(a)(ii) and (iii), 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 178B(1)
5: In this section and sections 178B 178C fixed price section 178C start date for auctions section 30GA(2)(a) Section 178A inserted 1 January 2013 section 71 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 178A heading amended 23 June 2020 section 153(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(1) replaced 23 June 2020 section 153(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(1)(a)(i)(B) amended 1 January 2023 section 270(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(1)(b)(i) amended 1 January 2023 section 270(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(1A) inserted 23 June 2020 section 153(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(2)(a)(i) amended 23 June 2020 section 153(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(2)(a)(ii) amended 23 June 2020 section 153(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(2)(b)(ii) amended 23 June 2020 section 153(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178A(5) inserted 23 June 2020 section 153(5) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
178B: Issuing New Zealand units to meet surrender obligations
1: If, in accordance with section 178A(2)(a)(ii) or (iii) the fixed price
a: issue a number of New Zealand units into a Crown holding account equal to the number of units in respect of which the person has paid the fixed price
b: transfer the New Zealand units into the person’s holding account held for the purpose of section 61(1)
c: immediately following the transfer under paragraph (b), transfer the New Zealand units to a surrender account designated by the EPA.
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 the fixed price section 178A(2)(a)(ii) or (iii)
3: If the EPA is required by this Act to reimburse units to any person the fixed price section 178A(2)(b)(ii) or (iii)
a: transfer from the appropriate surrender account to the person’s holding account held for the purpose of section 61(1) the fixed price
b: immediately following the transfer under paragraph (a), transfer the New Zealand units from the person’s holding account to a cancellation account.
4: For the avoidance of doubt, section 68
5: If subsection (1) applies, this Act applies with any necessary modification as if the payment of the fixed price
6: Despite anything in section 18CA(2) Section 178B inserted 1 January 2013 section 71 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 178B(1) amended 23 June 2020 section 154(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(1)(a) amended 23 June 2020 section 154(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(2) amended 23 June 2020 section 154(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(3) amended 23 June 2020 section 154(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(3) amended 23 June 2020 section 154(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(3)(a) amended 23 June 2020 section 154(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(5) amended 23 June 2020 section 154(3) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178B(6) amended 23 June 2020 section 154(4) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
178C: Fixed price (for option to pay money instead of surrendering, repaying, or reimbursing units)
1: This section determines the fixed price sections 178A 178B
2: If the unit that must be surrendered, repaid, or reimbursed is in respect of emissions or removals that occurred in a calendar year that is—
a: 2019 or earlier, the fixed price is $25; or
b: 2020 or later, but that ends before the start date for auctions, the fixed price is $35.
3: For the purposes of section 178A activity of standard forestry Section 178C replaced 23 June 2020 section 155 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 178C(3) amended 1 January 2023 section 271 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5: Sector-specific provisions: forestry
Part 5 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
1: Deforestation
Subpart 1 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
179: Forest land to be treated as deforested in certain cases
1: Without limiting paragraph (a) of the definition of deforest in section 4(1)
a: 4 years after clearing, none of the following apply:
i: the hectare has at least 500 stems of exotic forest species growing:
ii: the hectare has been replanted with at least 100 stems of willows or poplars in a manner consistent with managing soil erosion:
iii: the hectare has predominantly indigenous forest species growing in a manner in which the hectare is likely to be forest land 10 years after the hectare was cleared; or
b: 10 years after clearing,—
i: predominantly exotic forest species are growing, but that hectare does not have tree crown cover of more than 30% from trees that have reached 5 metres in height; or
ii: predominantly indigenous forest species are growing, but that hectare is not forest land; or
c: 20 years after clearing, predominantly indigenous forest species are growing, but that hectare does not have tree crown cover of more than 30% from trees that have reached 5 metres in height.
2: Subsection (1)(a)(ii) applies only if the EPA is satisfied that the relevant local authority has determined that the soil erosion risk of the land is at least moderate.
3: If forest land is to be treated as deforested under subsection (1),—
a: the deforestation is to be treated as having been carried out 4 years, 10 years, or 20 years after the clearing of the forest species, as the case may be; but
b: the liability in respect of the deforestation must be calculated by reference to the age and forest species of the trees cleared 4 years, 10 years, or 20 years earlier, as the case may be.
4: Nothing in this section limits the EPA's ability to exercise powers under section 121
a: the hectare has been converted to land that is not forest land; and
b: any obligations imposed under this Act in respect of the deforestation have not been complied with. Section 179 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
179A: Forest land may not be treated as deforested in certain cases
1: Despite section 179 section 4(1)
a: in the case of pre-1990 forest land, pre-1990 forest land that is cleared may not be treated as deforested for the purposes of this Act if the cleared land is exempt land or—
i: is contiguous with the edge of pre-1990 forest land that existed on 31 December 2007; and
ii: is an area that is less than 1 hectare or that is less than 30 metres wide at its widest point; and
iii: is required to be or remain cleared to implement New Zealand's best practice forest management; and
iv: is used only for the purpose of implementing New Zealand's best practice forest management:
b: in the case of pre-1990 forest land in relation to which a P90 offset application has been submitted under section 181A
i: starting on the date on which the application is submitted; and
ii: ending on the P90 offset date for the land under section 181F(3)
c: in the case of post-1989 forest land, the post-1989 forest land that is cleared may not be treated as deforested if the cleared land—
i: is contiguous with the edge of post-1989 forest land that existed on the date of the first registration of any person as a participant in standard forestry or permanent forestry in respect of the cleared land; and
ii: is an area that is less than 1 hectare or that is less than 30 metres wide at its widest point; and
iii: is required to be or remain cleared to implement New Zealand's best practice forest management; and
iv: is used only for the purpose of implementing New Zealand's best practice forest management.
2: However, in relation to subsection (1)(b), see section 181D
3: If subsection (1)(c) applies (where land is cleared for forest management), see sections 182G 186A 186C
4: This section applies to land that was cleared before, on, or after the commencement of this section.
5: If regulations prescribe any meaning for New Zealand’s best practice forest management, then that term has (or includes) that meaning in this section. Section 179A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
2: Pre-1990 forest land
Subpart 2 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180: Participant in respect of pre-1990 forest land
1: If the activity listed in Part 1
a: the right to decide to deforest the pre-1990 forest land was vested by the landowner in a third party, whether before or after 1 January 2008; and
b: the landowner had no control over the decision.
2: If the EPA is satisfied that the criteria specified in subsection (1)(a) and (b) are met, the third party is to be treated as the person carrying out the activity.
3: To avoid doubt, for the purposes of this Act, no person, other than a landowner or, in the circumstances in subsection (2), a third party, is to be treated as carrying out an activity listed in Part 1 Section 180 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180A: When deforestation to be treated as occurring in respect of pre-1990 forest land
1: This section applies to any hectare of pre-1990 forest land that is being converted to land that is not forest land.
2: The hectare of forest land is to be treated as being deforested on the date of the first action on it that is inconsistent with it remaining forest land.
3: However, subsection (4) applies if the hectare of forest land was cleared but not deforested prior to—
a: the forest land being transferred to the landowner; or
b: control of the forest land reverting to that landowner following the expiry or termination of a forestry right, Crown forestry licence, lease, or other agreement that relates to the land.
4: The hectare of forest land is to be treated as being deforested on the date of the first action on it that—
a: is inconsistent with the hectare remaining forest land; and
b: happens after the date of transfer of the land or the date of the expiry or termination of the forestry right, Crown forestry licence, lease, or other agreement relating to the land.
5: In any case, the liability in respect of the deforestation must be calculated by reference to the age and forest species of the trees when they were cleared, unless section 180H(2)
6: This section applies only if section 4(5)
7: To avoid doubt, this section does not apply—
a: to land to which section 179A
b: to land to which section 181N(3) Section 180A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180B: Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land
1: This section applies to a person who—
a: is a landowner of an area of pre-1990 forest land at the date of issue of the pre-1990 forest land allocation plan; or
b: was the landowner of an area of pre-1990 forest land at the date (if any), between 1 January 2008 and the date of issue of the pre-1990 forest land allocation plan, on which the area was converted to land that is not forest land.
2: A person to whom this section applies may apply to the EPA for the area of pre-1990 forest land to be declared exempt land if—
a: the area is less than 50 hectares; and
b: the area was owned on 1 September 2007 by a person or persons who, along with any associated persons, owned in total less than 50 hectares of pre-1990 forest land; and
c: no allocation of units to a landowner has been made in respect of the area under the pre-1990 forest land allocation plan.
3: An application under subsection (2) must—
a: be submitted to the EPA by—
i: the date prescribed by regulations made under section 168(1)(ca)
ii: in the absence of a date prescribed by regulations made under section 168(1)(ca)
b: be in the prescribed form and accompanied by the prescribed fee (if any); and
c: contain details of the area of pre-1990 forest land to which the application relates; and
d: be accompanied by evidence showing that the land is pre-1990 forest land; and
e: be accompanied by a statutory declaration,—
i: in the case of land owned by a sole professional trustee or owned by professional trustees only, from the trustee of the trust that is the subject of the exemption application stating that the total of pre-1990 forest land held in the trust on 1 September 2007—
A: was less than 50 hectares; and
B: was owned by a sole professional trustee or owned by professional trustees only:
ii: in any other case, from each person who owned the land on 1 September 2007 (other than a joint tenant who is a professional trustee) stating that the person, together with any persons associated with that person, owned less than a total of 50 hectares of pre-1990 forest land on 1 September 2007; and
f: be signed by the applicant; and
g: be accompanied by any other prescribed information.
4: If the EPA is satisfied that the applicant is a person to whom this section applies, the land is pre-1990 forest land, and each of the criteria specified in subsection (2)(a) to (c) is met, the EPA must—
a: declare the land to be exempt land; and
b: notify the applicant that the land has been declared exempt land.
5: Despite subsection (3)(a), the EPA may, at its discretion, accept applications after the date specified in the public notice given under subsection (3)(a)(ii) or prescribed by regulations under section 168(1)(ca)
6: The following rules apply for the purposes of determining, under subsection (2)(b), whether an area of pre-1990 forest land was owned on 1 September 2007 by a person or persons who, along with any associated persons, owned in total less than 50 hectares of pre-1990 forest land:
a: the EPA must consider only pre-1990 forest land in respect of which the person or associated person was a landowner on 1 September 2007; and
b: if land was owned by persons as joint tenants,—
i: in the case where 1 or more of the joint tenants is a professional trustee, each of the joint tenants other than the professional trustee or trustees must individually have been a landowner of less than 50 hectares of pre-1990 forest land; or
ii: in the case where none of the joint tenants is a professional trustee, each of the joint tenants must individually have been a landowner of less than 50 hectares of pre-1990 forest land; and
c: if land was owned by persons as tenants in common, each tenant in common’s interest in the land is to be treated as a divided interest on 1 September 2007; and
d: if land was owned by a sole professional trustee or owned by professional trustees only, the total pre-1990 forest land held in the trust on 1 September 2007 was less than 50 hectares.
7: For the purposes of this section and section 180D own professional trustee
a: means a trustee whose profession, employment, or business is or includes acting as a trustee or investing money on behalf of others; and
b: includes a trustee in whom property is vested under Te Ture Whenua Maori Act 1993 Section 180B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180C: Certain applications not otherwise permitted by section 180B
1: Despite section 180B(2)(c) and (3)(a)
a: the area concerned was owned, as at 1 September 2007, by a sole professional trustee or by professional trustees only; and
b: an allocation of units has been made before the commencement of the Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
2: If the EPA proposes to accept the application, the EPA must notify the applicant that—
a: it proposes to accept the application; but
b: the applicant must first, within 30 working days after receiving the notice, surrender or repay to the Crown holding account specified in the notice the number of units specified in the notice; and
c: if the units are not surrendered or repaid in accordance with paragraph (b), then the application will be declined.
3: The units referred to in subsection (2) must be the same number of units that have been allocated and transferred under the pre-1990 forest land allocation plan in relation to the land concerned.
4: The EPA must—
a: accept the application and declare the area concerned to be exempt land if, by the expiry of the 30 days, the units have been surrendered or repaid; or
b: decline the application if, by the expiry of the 30 days, the units have not been surrendered or repaid.
5: To avoid doubt,—
a: section 180B
b: if an application is granted and an area is declared to be exempt land, the entitlement to units under the pre-1990 forest land allocation plan in respect of the land is cancelled. Section 180C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180D: Applications for exemption for some Maori land or land with 10 or more owners
1: This section applies to an area of pre-1990 forest land that—
a: is less than 50 hectares; and
b: on 1 September 2007,—
i: was all of the pre-1990 forest land held in a document that is equivalent to a record of title under the Land Transfer Act 2017
ii: was Maori land or was owned by more than 10 persons; and
c: was an area of pre-1990 forest land on the following date (the qualifying date
i: the date of issue of the pre-1990 forest land allocation plan; or
ii: the date (if any), between 1 January 2008 and the date of issue of the pre-1990 forest land allocation plan, on which the area was converted to land that is not forest land; and
d: after the qualifying date,—
i: became owned by the trustees of a trust; or
ii: in the case of Maori freehold land, had an agent appointed for it under Te Ture Whenua Maori Act 1993
e: has not been the subject of an allocation of units to a landowner under the pre-1990 forest land allocation plan.
2: The trustees or agent described in subsection (1)(d) may apply to the EPA for the area of pre-1990 forest land to be declared exempt land.
3: The application—
a: may be submitted to the EPA at any time; and
b: must be in the prescribed form and accompanied by the prescribed fee (if any); and
c: must contain details of the area of pre-1990 forest land to which the application relates; and
d: must be accompanied by evidence showing that the land is pre-1990 forest land; and
e: must be accompanied by a statutory declaration from the applicant stating that the area of pre-1990 forest land was, on 1 September 2007, all of the pre-1990 forest land held in a document that is equivalent to a record of title under the Land Transfer Act 2017
f: must be signed by the applicant; and
g: must be accompanied by any other prescribed information.
4: If the EPA is satisfied that the applicant is 1 or more trustees or an agent described in subsection (1)(d), that the land is pre-1990 forest land, and that each of the criteria specified in subsection (1)(a) to (e) is met, the EPA must—
a: declare the land to be exempt land; and
b: notify the applicant that the land has been declared exempt land. Section 180D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180E: Exemptions for deforestation of land with tree weeds
1: An application may be made under this section for pre-1990 forest land to be declared exempt land (in relation to deforestation) if a prescribed type of tree weed—
a: is growing on the land; or
b: was cleared from the land as part of the deforestation process on or after 1 January 2008.
2: The application may be made by—
a: the landowner of the pre-1990 forest land; or
b: a third party to whom section 180
3: The EPA must consider the application against the prescribed criteria and priorities and—
a: may declare the land, or any part of the land, to be exempt land, if satisfied that—
i: the applicant is eligible to apply for the exemption under subsection (2); and
ii: the land is pre-1990 forest land; and
iii: the criteria specified in subsection (1) are met; and
b: must, if the EPA declares any land to be exempt land, notify the applicant of—
i: the declaration; and
ii: any requirements or conditions that the EPA has decided to impose on the person whose land is exempted.
4: The EPA—
a: may declare that a person’s land ceases to be exempt land (under this section) if the person breaches any requirement or condition that the EPA imposed on them for the exempt land; and
b: if it does so, must notify the person of the declaration.
5: If a person is convicted of an offence under section 132 133
a: the person must be treated as a person who has failed to submit an annual emissions return in respect of an activity listed in Part 1
b: the EPA must make an assessment of the matters that should have been in the person’s annual emissions return and the number of units the person would have been liable to surrender if the land had not been exempt land; and
c: the person is liable to surrender the number of units in the assessment under paragraph (b); and
d: section 123(1) to (3) section 121 Section 180E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180F: Effect of exemption
The status of pre-1990 forest land as exempt land runs with the land and is not affected by any change in the ownership of the land. Section 180F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180G: Regulations about exemptions for deforestation of land with tree weeds
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 in relation to exemptions under section 180E
a: prescribing the types of tree weed for which an application may be made for pre-1990 forest land to be declared exempt land:
b: defining those types of tree weed based on any matter, such as the following:
i: the species of tree weed:
ii: the geographical location of the tree weed:
iii: whether a weed control programme applies to the tree weed:
c: prescribing processes for making applications to the EPA for an exemption, including fees for applications:
d: prescribing the information required in an application, including—
i: information to properly describe or define the land:
ii: evidence about the land and the forest species on the land:
e: prescribing the criteria and priorities that the EPA must consider in deciding whether to grant an exemption:
f: prescribing any requirements or conditions that the EPA may impose on a person whose land is exempted, including for weed control on the land:
g: specifying that 1 or more of the following is different for different types of tree weed:
i: the process for making the application:
ii: the information required in the application:
iii: the criteria and priorities that the EPA must consider:
iv: any requirements or conditions that the EPA may impose on a person whose land is exempted:
h: providing for any other matters contemplated by sections 180E 180F
2: See sections 3A 3B
3: The regulations come into force 3 months after the date of their publication under the Legislation Act 2019
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 180G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
180H: Methodology for pre-1990 forest land cleared in 8 years or less
1: Subsection (2) applies where the trees cleared from pre-1990 forest land by a person carrying out the activity in Part 1
2: If this subsection applies, the participant must,—
a: for the purposes of sections 62(1)(b) 65(2)(b) section 163
b: surrender units under this Act based on emissions calculated and recorded in accordance with paragraph (a).
3: A methodology for calculating emissions from the activity in Part 1 section 163 Section 180H inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
3: P90 offsetting land
Subpart 3 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181: Interpretation
In this subpart,— area 1 (approved) land
a: has become area 1 (approved) land under section 181C(2)(a)
b: has not ceased to be area 1 (approved) land under section 181N(2)(a) to (d) area 1 (damaged) land section 181G(3)(a)(iii) area 1 (forested) land section 181G(3)(a)(ii) area 1 (not offset) land section 181G(3)(a)(iv) area 1 (offset) land section 181G(3)(a)(i) area 2 (approved) land
a: has become area 2 (approved) land under section 181C(2)(c) 181J(2)(b)
b: has not ceased to be area 2 (approved) land under section 181N(2)(e) to (i) area 2 (damaged) land section 181G(3)(b)(iii) area 2 (excess) land
a: has become area 2 (excess) land under section 181G(3)(b)(iv)
b: has not ceased to be area 2 (excess) land under section 181N(5) area 2 (forested) land section 181G(3)(b)(i) area 2 (non-ETS) land section 181G(3)(b)(v) area 2 (unforested) land section 181G(3)(b)(ii) baseline carbon stock section 181F(2) baseline date section 181F(3) default P90 offset date section 181F(5)(a) expected carbon stock section 181F(4) P90 offset application section 181A P90 offset application date section 181A P90 offset date section 181F(5) P90 offset release criteria section 181F(1) P90 offsetting land
a: has become P90 offsetting land under section 181N(2)(e)
b: has not ceased to be P90 offsetting land under—
i: section 181R(1)(a)
ii: section 181S(1)(a)
iii: section 181T(1)(a) P90 release criteria notice section 181G(1) required equivalence date section 181F(6) Section 181 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 P90 offset application Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181A: Application to offset land for pre-1990 forest land
1: The owner of pre-1990 forest land may apply to the EPA to offset other land for the pre-1990 forest land.
2: The application must—
a: specify the pre-1990 forest land to which the application relates ( area 1
b: specify the land proposed as offsetting land for that pre-1990 forest land ( area 2
c: include any information prescribed in regulations made under section 181W
3: If area 1 and area 2 are owned by different persons, the application must be made jointly by all the owners of both areas.
4: The application must—
a: be signed by all of the applicants; and
b: be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any). Section 181A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181B: Criteria for P90 offset application
1: If a person submits a P90 offset application, the EPA,—
a: if satisfied that the criteria in subsection (2) were met on the P90 offset application date, must approve the application; or
b: otherwise, may decline the application ( then see section 181D
2: The criteria are that— Area 1 criteria
a: the land in area 1 is pre-1990 forest land that is one or other of the following:
i: land that was first planted before 1 January 1990; or
ii: land that was harvested and re-established after 1 January 1960; and Area 2 criteria
b: the land in area 2 is 1 or more of the following:
i: land that is not forest land on the P90 offset application date but, if it were to become forest land,—
A: would be post-1989 forest land; and
B: if it were in a carbon accounting area, would meet the criteria in section 191C
ii: post-1989 forest land that—
A: became post-1989 forest land less than 2 years before the P90 offset application date; and
B: meets the criteria in section 191C
iii: area 2 (excess) land, unless the re-use period prescribed in regulations made under section 181W
iv: P89 offsetting (excess) land (as defined in section 192 section 181W
c: if any of the land in area 2 is in a carbon accounting area, all of the land in the carbon accounting area—
i: is land to which paragraph (b) applies; and
ii: is part of area 2; and
d: the total area (whether contiguous or not) of area 2 is equal to or greater than the total area (whether contiguous or not) of area 1; and
e: each individual parcel that makes up area 2 has an area of at least 1 hectare with an average width of at least 30 metres; and Participant criteria
f: each person who will be a participant in respect of land in area 2 would be eligible to be a participant under section 57 Part 1 P90 offset release criteria
g: the EPA is satisfied that, if all of the land in area 1 becomes area 1 (offset) land, on the P90 offset date the P90 offset release criteria are likely to be met; and Prescribed criteria
h: any other criteria prescribed in regulations made under section 181W Section 181B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181C: Effect of approval of P90 offset application
1: This section applies if the EPA approves a P90 offset application.
2: Starting on the P90 offset application date,—
a: area 1 is area 1 (approved) land
b: if any of the land in area 2 is in a carbon accounting area, the participant for that land—
i: is liable to surrender the number of units equal to the unit balance of that carbon accounting area; and
ii: ceases to be a participant in the relevant activity on that carbon accounting area; and
c: area 2 is the area 2 (approved) land
3: If subsection (2)(b) applies, the EPA must amend the register kept under section 57 section 182C(2)
4: If subsection (2)(b)(i) applies,—
a: the notice requiring those units to be surrendered (referred to in section 63(4)
b: if the units are not surrendered by the due date, the EPA may revoke the approval by giving written notice to the participant.
5: If an approval is revoked under subsection (4), this Act applies as if the application had never been made.
6: However, despite subsection (5), the effect of subsection (2)(b)(ii) is not reversed (so the person is not reinstated as a participant for the carbon accounting area). Section 181C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181D: Effect of P90 offset application being declined
1: This section applies if—
a: the EPA declines a P90 offset application; and
b: an activity listed in Part 1 affected land date D
2: The owner of the affected land on date D—
a: is liable to surrender the number of units they would have been required to surrender when that activity was carried out if the application had not been made; and
b: must comply with sections 56 65
3: The emissions return required under subsection (2)(b) must cover the period starting on the P90 offset application date and ending on date D, as if that period were all part of the immediately preceding year. Section 181D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Liability to surrender allocation Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181E: Allocations for pre-1990 forest land to be surrendered when application approved
1: This section applies in relation to pre-1990 forest land if—
a: the land becomes area 1 (approved) land; and
b: an allocation was made in respect of the land as part of the second tranche (whether or not the units were actually transferred when allocated).
2: The owner of the land must,—
a: if they do not have a holding account under section 18A
b: surrender or repay the number of units equal to the number allocated as part of the second tranche by transferring them to a Crown holding account.
3: The owner must do so within 30 working days after the EPA gives them a notice requiring them to do so.
4: The notice must specify—
a: the number of units to be surrendered or repaid; and
b: the Crown holding account to which the units must be transferred.
5: In this section, second tranche Section 181E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Offsetting on P90 offset date Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181F: P90 offset release criteria
1: The P90 offset release criteria
a: the area of the area 2 (forested) land and any area 2 (damaged) land is equal to or greater than the area of the area 1 (offset) land; and
b: the expected carbon stock of the area 2 (forested) land and any area 2 (damaged) land is equal to or greater than the baseline carbon stock for the area 1 (offset) land; and
c: any other criteria prescribed in regulations made under section 181W
2: The baseline carbon stock section 181W
3: The baseline date
a: if, on the P90 offset application date, every hectare of land in area 1 had forest species on it that had tree crown cover of more than 30%, the P90 offset application date; or
b: if not, the date on which the clearing of area 1 started most recently before the P90 offset application date.
4: The expected carbon stock
a: of area 2 (forested) land, is the carbon stock that the land is expected to have achieved on the required equivalence date determined in accordance with regulations made under section 181W
b: of area 2 (damaged) land, is the carbon stock that the land would have been expected to have achieved on the required equivalence date had it not been affected by the adverse natural event determined in accordance with regulations made under section 181W
5: The P90 offset date
a: the date 4 years after the baseline date (the default P90 offset date
b: if a P90 release criteria notice is given before the default P90 offset date, the date on which the notice is given.
6: The required equivalence date
a: starts when the forest species on area 2 (approved) land are first established; and
b: ends at the end of the usual rotation period prescribed in regulations made under section 181W Section 181F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181G: P90 release criteria notice
1: The owners of the land in area 1 and area 2 must give notice ( P90 release criteria notice section 181H
2: The P90 release criteria notice—
a: may be given before the default P90 offset date (under section 181F(5)(a)
b: if not given before that date, must be given within 60 working days after the default P90 offset date.
3: The P90 release criteria notice must—
a: identify all of the land in area 1 as one of the following:
i: area 1 (offset) land
A: has ceased to be forest land; or
B: has been cleared with the intention that it will cease to be forest land:
ii: area 1 (forested) land
iii: area 1 (damaged) land
iv: area 1 (not offset) land section 181L
b: identify all of the land in area 2 as one of the following:
i: area 2 (forested) land
ii: area 2 (unforested) land
iii: area 2 (damaged) land
iv: area 2 (excess) land
A: is qualifying forest land on the P90 offset date (but see
B: does not need to be included in the area 2 (forested) land in order for the P90 offset release criteria to be met; and
C: the owners want to be excluded from the area 2 (forested) land and to be available for re-use under section 181B(2)(b)(iii) 192B(2)(c)(iii)
v: area 2 (non-ETS) land
A: is qualifying forest land on the P90 offset date (but see
B: does not need to be included in the area 2 (forested) land in order for the P90 offset release criteria to be met; and
C: the owners want to be excluded from the area 2 (forested) land but not to be available for re-use under section 181B(2)(b)(iii) 192B(2)(c)(iii)
c: specify—
i: the baseline carbon stock for the area 1 (offset) land; and
ii: the expected carbon stock of the area 2 (forested) land; and
d: include any information prescribed in regulations made under section 181W
4: If an application is made under section 181H
5: The P90 release criteria notice must—
a: be made jointly by all of the persons who, on the P90 offset date, own land in area 1 or area 2 (including any additional land in relation to which an application is made under section 181H
b: be signed by all of the owners; and
c: be given within 60 working days after the P90 offset date; and
d: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
6: Land is qualifying forest land
a: each hectare of the land has forest species on it that have, or are likely to have, tree crown cover of more than 30%; and
b: those forest species were established by direct planting activities, including direct seeding but excluding natural forest regeneration; and
c: each individual parcel that makes up the land has an area of at least 1 hectare and has an average width of at least 30 metres. Section 181G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181H: Application to add area 2 (approved) land
1: An application to add more land ( additional land
2: The application must—
a: be made jointly by all of the persons who own land in area 1, area 2, or the additional land; and
b: be signed by all of the applicants; and
c: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any). Section 181H inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181I: Criteria for adding area 2 (approved) land
1: If an application is made under section 181H
a: if satisfied that the criteria in subsection (2) are met, must approve the application; or
b: otherwise, may decline the application.
2: The criteria are that—
a: the additional land—
i: is land of a kind specified in section 181B(2)(b)(ii), (iii), or (iv)
ii: is qualifying forest land (as defined in section 181G(6)
b: if the application is not approved, on the P90 offset date the P90 offset release criteria in section 181F(1)(a) or (b)
c: the area of the additional land is not more than is necessary to enable the P90 offset release criteria to be met; and
d: any other criteria prescribed in regulations made under section 181W Section 181I inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181J: Effect of approval of application to add area 2 (approved) land
1: This section applies if the EPA approves an application under section 181H
2: On the P90 offset date (but before section 181N
a: if any of the additional land is a carbon accounting area, the participant for that land—
i: is liable to surrender the number of units equal to the unit balance of that carbon accounting area; and
ii: ceases to be a participant in the relevant activity on that carbon accounting area; and
b: the additional land becomes part of the area 2 (approved) land (and is therefore part of area 2 and becomes area 2 (forested) land ( see section 181G(3)(b)(i) and (4)
3: If subsection (2)(a) applies, the EPA must amend the register kept under section 57 section 182C(2)
4: If subsection (2)(a)(i) applies,—
a: the notice requiring those units to be surrendered (referred to in section 63(4)
b: if the units are not surrendered by the due date, the EPA may revoke the approval by giving written notice to the participant.
5: If an approval is revoked under subsection (4), this Act applies as if the application had never been made, except that—
a: the effect of subsection (2)(a)(ii) is not reversed (so the person is not reinstated as a participant for the carbon accounting area); and
b: section 181M Section 181J inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181K: Effect of application to add area 2 (approved) land being declined
1: This section applies if the EPA declines an application under section 181H
2: The EPA must notify the applicants of—
a: the decision and the reasons for it; and
b: the owners’ right under section 144
c: the effect of subsection (3) and section 128A
3: If the EPA gives a notice under subsection (2),—
a: the P90 release criteria notice that was accompanied by the application is taken not to have been given; and
b: the owners must give the EPA—
i: a revised P90 release criteria notice for area 1 and area 2; and
ii: if they wish to do so, another application under section 181H
c: the deadline for giving the P90 release criteria notice under section 181G(2)(b)
4: However, if the owners have previously given a revised notice under subsection (3)(b)(i) that was accompanied by an application under section 181H
a: subsection (3)(b)(ii) does not apply and the owners cannot make another application under section 181H
b: section 181M Section 181K inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181L: Land that must be identified as area 1 (not offset) land
1: Land in area 1 must be identified as area 1 (not offset) land if, in the absence of this section,—
a: the land would be identified as area 1 (offset) land; and
b: either or both of the following would apply:
i: the area of the area 1 (offset) land would be greater than the area of the area 2 (forested) land and any area 2 (damaged) land:
ii: the baseline carbon stock for the area 1 (offset) land would be greater than the expected carbon stock of the area 2 (forested) land and any area 2 (damaged) land.
2: The area of any land identified as area 1 (not offset) land must be the minimum area necessary to result in the P90 offset release criteria being met. Section 181L inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181M: Extension of time to add area 2 (approved) land
1: This section applies if—
a: a P90 release criteria notice is given to the EPA within the time required by section 181G(2)
b: an application under section 181H
c: the P90 release criteria notice is not a revised notice given under section 181K(3)(b)
d: the EPA is not satisfied that the P90 release criteria notice identifies the land in a way that results in the P90 offset release criteria being met.
2: The EPA may, by giving a notice to the owners of area 1 and area 2, offer them an opportunity to submit a revised P90 release criteria notice with an application under section 181H
3: The EPA’s notice must set out—
a: the reasons for the EPA’s decision that the P90 release criteria notice is not correct; and
b: the owners’ right under section 144
c: the effect of subsection (4) and section 128A
4: If the EPA gives a notice under subsection (2),—
a: the P90 release criteria notice referred to in subsection (1)(a) is taken not to have been given; and
b: the owners must give the EPA—
i: a revised P90 release criteria notice for area 1 and area 2; and
ii: if they wish to do so, an application under section 181H
c: the deadline for giving the P90 release criteria notice under section 181G(2)(b) Section 181M inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181N: Effect on P90 offset date
1: This section applies if a P90 release criteria notice is given to the EPA in accordance with section 181G
2: With effect on the P90 offset date,—
a: the area 1 (offset) land—
i: ceases to be area 1 (approved) land; and
ii: is the land against which the area 2 (forested) land and area 2 (damaged) land are compared to determine whether the P90 offset release criteria are met; and
b: the area 1 (forested) land—
i: ceases to be area 1 (approved) land; and
ii: is not part of the land used to determine whether the P90 offset release criteria are met; and
c: the area 1 (damaged) land—
i: ceases to be area 1 (approved) land; and
ii: is not part of the land used to determine whether the P90 offset release criteria are met; and
d: the area 1 (not offset) land—
i: ceases to be area 1 (approved) land; and
ii: is not part of the land used to determine whether the P90 offset release criteria are met; and
e: the area 2 (forested) land—
i: is part of the land used to determine whether the P90 offset release criteria are met; and
ii: becomes P90 offsetting land then see sections 181P to 181T Part 1A
iii: ceases to be area 2 (approved) land; and
f: the area 2 (unforested) land—
i: is not part of the land used to determine whether the P90 offset release criteria are met; and
ii: ceases to be area 2 (approved) land; and
g: the area 2 (damaged) land—
i: is part of the land used to determine whether the P90 offset release criteria are met; and
ii: ceases to be area 2 (approved) land; and
h: the area 2 (excess) land—
i: is not part of the land used to determine whether the P90 offset release criteria are met; and
ii: ceases to be area 2 (approved) land, but remains area 2 (excess) land subject to subsection (5); and
i: the area 2 (non-ETS) land—
i: is not part of the land used to determine whether the P90 offset release criteria are met; and
ii: ceases to be area 2 (approved) land and area 2 (non-ETS) land.
3: Starting on the P90 offset date, the owner of the area 1 (not offset) land on the P90 offset date—
a: is liable to surrender units as a result of the deforestation of the land as if that deforestation had occurred on the P90 offset date ( see also section 180A(7)(b)
b: must comply with sections 56 65
4: To avoid doubt,—
a: the owner of the area 1 (offset) land incurs no liability under section 63 section 179A(1)(b)
b: the owner of the area 1 (forested) land is not liable to surrender any units (because the land has not been deforested); and
c: the owner of the area 1 (damaged) land is not liable to surrender any units (because the land is excluded from Part 1
5: Land ceases to be area 2 (excess) land if the land—
a: becomes area 2 (approved) land as a result of being included in a P90 offset application under section 181B(2)(b)(iii)
b: becomes P89 offsetting (approved) land as a result of being included in a P89 offset application under section 192B(2)(c)(iii)
c: becomes part of a carbon accounting area as a result of an application under section 182C(1) or (3)
6: The EPA must update the register kept under section 181U Section 181N inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181O: Reimbursement of surrendered allocation
1: This section applies if—
a: a person surrendered units in respect of area 1 (approved) land in accordance with section 181E(2)
b: on the P90 offset date, any of that land is area 1 (forested) land or area 1 (damaged) land.
2: Starting on the P90 offset date, the EPA is liable to reimburse to that person (whether or not they still own the land) the number of units surrendered under section 181E(2) Section 181O inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 P90 offsetting land Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181P: Participant in respect of P90 offsetting land
If an activity listed in Part 1A Section 181P inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181Q: Clearing or deforestation before required equivalence date
1: This section applies if—
a: a P90 offset application was approved; and
b: on the P90 offset date, the area 2 (approved) land became P90 offsetting land for the area 1 (offset) land; and
c: before the required equivalence date, either or both of the following occur on some or all of the P90 offsetting land (the affected land
i: the land is cleared:
ii: an activity listed in Part 1A Part 1A activity
2: If the affected land is cleared, section 181R
3: If a Part 1A activity is carried out on the affected land, section 181S
4: If the affected land is cleared and later (but still before the required equivalence date) a Part 1A activity is carried out on the affected land,—
a: if, before the Part 1A activity is carried out, the owner submits an emissions return as required by section 181R(1)(b)(ii)
i: section 181R
ii: section 181S
b: if the owner does not submit an emissions return as required by section 181R(1)(b)(ii)
i: section 181R
ii: section 181S
5: For the purposes of this section and section 181R Section 181Q inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181R: Clearing before required equivalence date
1: If this section applies in relation to the clearing of affected land, starting on the date on which the clearing occurred,—
a: the affected land ceases to be P90 offsetting land; and
b: the owner of the affected land—
i: is liable to surrender the units as if the affected land were deforested on the date on which it was cleared; and
ii: must submit an emissions return as required by section 65
iii: if they do not have a holding account under section 18A
2: However, the number of units the owner is liable to surrender under subsection (1)(b)(i) is the number calculated under subsection (3) instead of the number of units they would otherwise be liable to surrender under section 63
3: The number of units to be surrendered ( s s = (d ÷ a) × n where— d is the area of the affected land (in hectares) a is the total area of all of the area 1 (approved) land referred to in section 181Q(1)(b) n is the baseline carbon stock of the area 1 (offset) land, as recorded under section 181U(2)(d)
4: In the emissions return required under subsection (1)(b)(ii), the relevant portion of the emissions from the area 1 (offset) land is to be recorded as if it were the emissions from deforestation of the affected land.
5: The liability under subsection (1)(b)(i) is to be treated as a liability to surrender units for emissions from the deemed deforestation on the P90 offsetting land.
6: The EPA must update the register under section 181U
7: To avoid doubt, the affected land is not to be treated as having been deforested other than as required by this section. Section 181R inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181S: Deforestation before required equivalence date
1: If this section applies in relation to the carrying out of a Part 1A activity on affected land, starting on the date on which the activity was carried out,—
a: the affected land ceases to be P90 offsetting land; and
b: the owner of the affected land—
i: must submit an emissions return as required by section 65
ii: is liable to surrender the number of units calculated under subsection (2) instead of the number of units they would otherwise be liable to surrender under section 63
2: The number of units to be surrendered ( s s = (d ÷ a) × n where— d is the area of the affected land (in hectares) a is the total area of all of the area 1 (approved) land referred to in section 181Q(1)(b) n is the baseline carbon stock of the area 1 (offset) land, as recorded under section 181U(2)(d)
3: In the emissions return required under subsection (1)(b)(i), the relevant portion of the emissions from the area 1 (offset) land is to be recorded as if it were the emissions from the carrying out of the activity.
4: The liability under subsection (1)(b)(ii) is to be treated as a liability to surrender units for emissions from the carrying out of the activity on the P90 offsetting land.
5: The EPA must update the register under section 181U Section 181S inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181T: P90 offsetting land becomes pre-1990 forest land
1: On the required equivalence date, the P90 offsetting land—
a: ceases to be P90 offsetting land; and
b: becomes pre-1990 forest land.
2: The EPA must update the register under section 181U Section 181T inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Administrative matters Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181U: P90 offsetting land register
1: The EPA must keep a register of the following:
a: P90 offsetting land:
b: land that has become pre-1990 forest land under section 181T section 56
c: area 2 (excess) land.
2: The register must include the following information about the registered land:
a: whether it is P90 offsetting land, pre-1990 forest land, or area 2 (excess) land:
b: a description of the land:
c: the area of the land (in hectares):
d: for P90 offsetting land, the baseline carbon stock of the relevant area 1 (offset) land (in tonnes):
e: for pre-1990 forest land, the date on which it became pre-1990 forest land:
f: for area 2 (excess) land, the date on which it became area 2 (excess) land. Section 181U inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181V: EPA to give information on request
1: The EPA must, on request, give a copy of the information on the register under section 181U
2: The EPA must, on request, give the owner of pre-1990 forest land a statement of the number of units (if any) the owner would be liable to surrender under section 181E
3: In this section,— owner request Section 181V inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
181W: Regulations for P90 offsetting
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:
a: prescribing the information to be included in, and other requirements for,—
i: P90 offset applications ( section 181A
ii: P90 release criteria notices ( section 181G
iii: applications to add land to area 2 (approved) land ( section 181I
b: prescribing re-use periods for area 2 (excess) land or P89 offsetting (excess) land ( section 181B(2)(b)(iii) and (iv)
c: prescribing additional criteria for approval of—
i: P90 offset applications ( section 181B(2)(h)
ii: applications to add land to area 2 (approved) land ( section 181I
d: prescribing additional P90 offset release criteria ( section 181F(1)(c)
e: prescribing the methodology for determining—
i: baseline carbon stock ( section 181F(2)
ii: expected carbon stock ( section 181F(4)
f: prescribing usual rotation periods for forest species ( section 181F(6)
g: providing for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.
2: See sections 3A 3B
3: The regulations come into force 3 months after the date of their publication under the Legislation Act 2019
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 181W inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: Post-1989 forest land (standard and permanent forestry)
Subpart 4 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182: Standard and permanent forestry on post-1989 forest land
1: In this subpart,— final forestry emissions return section 183B permanent forestry Part 1A provisional forestry emissions return section 183 standard forestry Part 1
2: To avoid doubt, standard forestry and permanent forestry comprise the same list of activities carried out in respect of post-1989 forest land, but the difference is that the person carrying out the activity has chosen the relevant Part of Schedule 4 Section 182 inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182A: Conditions on registration as participant in certain activities of standard or permanent forestry in respect of post-1989 forest land
1: A person may not be registered as a participant under section 57
a: owning any post-1989 forest land, unless the person is the landowner of the post-1989 forest land and—
i: there is no forestry right or lease registered in respect of that land; or
ii: the person has the written agreement of any holder of a registered forestry right or registered lease in respect of that land to the person registering as a participant; or
b: holding a registered forestry right or being the leaseholder under a registered lease in respect of any post-1989 forest land, unless the person—
i: is the holder of the registered forestry right or the leaseholder of the registered lease; and
ii: has the written agreement of the landowner of the land to the forestry right holder or leaseholder, as the case may be, registering as a participant.
2: A person may not be registered as a participant under section 57
a: has submitted an emissions return to the EPA that—
i: records the emissions from the deforestation of the land—
A: that would have been required to have been recorded in an annual emissions return under section 65
B: calculated in accordance with the methodology or methodologies prescribed for the deforestation activity listed in Part 1
ii: contains an assessment of the liability to surrender units that would have arisen in relation to the deforestation had the land not been declared to be exempt land; and
iii: is accompanied by the prescribed fee (if any) and any other prescribed information; and
iv: is signed by the person submitting the application; and
b: has surrendered, within 60 working days after the EPA gives the person a notice requiring the surrender, the number of units listed in the assessment under paragraph (a)(ii); and
c: complies with subsection (1), if applicable.
3: To avoid doubt, if any person is registered as a participant carrying out an activity of standard forestry or permanent forestry in respect of any post-1989 forest land, no person (including that person) can be registered as a participant carrying out a different activity of standard forestry or permanent forestry in respect of that land.
4: A person may not be registered as a participant under section 57
a: any action taken by the person in respect of the post-1989 forest land since 1 January 2008 (including, but not limited to, removal of any existing vegetation before planting of a forest species on the land) complied with the Resource Management Act 1991 Forests Act 1949
b: if the post-1989 forest land is subject to a pest management plan under the Biosecurity Act 1993
i: complied with the requirements; or
ii: verified that any other person required to comply with the requirements has done so.
5: A person may not be registered as a participant under section 57
6: Subsection (5) does not apply to any person who has registered as a participant before 1 January 2013. Section 182A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 182A(4)(a) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
182B: EPA to give public notice of criteria for assessing risk of tree weed spread
The EPA must give public notice of the criteria for assessing the risk of tree weed spread from land that is the subject of an application for registration under section 57 Section 182B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182C: Registration as participant in standard or permanent forestry
1: An application under section 57
a: may be submitted for all post-1989 forest land in respect of which the applicant carries out the activity, or any part of the land in respect of which the applicant carries out the activity; and
b: must define the carbon accounting area or areas in respect of which the applicant wishes to be a participant; and
c: must be accompanied by a declaration, in the prescribed form, that—
i: any action taken by the applicant since 1 January 2008 in relation to the post-1989 forest land in respect of which the application is submitted (including, but not limited to, removal of any existing vegetation before planting of a forest species on the land) complied with the Resource Management Act 1991 Forests Act 1949
ii: if the post-1989 forest land is subject to a pest management plan under the Biosecurity Act 1993
A: complied with the requirements; or
B: verified that any other person required to comply with the requirements has done so; and
d: must be accompanied by any information prescribed by regulations made under this Act.
2: The EPA must keep the following records for the activity of standard forestry or permanent forestry for which a person is a participant (whether by registration under section 57
a: the carbon accounting area or areas in respect of which the person is a participant; and
b: for each carbon accounting area used for an activity of standard forestry, whether or not it is a carbon accounting area (averaging); and
c: the unit balance of each carbon accounting area in respect of which the person is a participant, as calculated under the last emissions return submitted for the area.
3: A person who is a participant in standard forestry or permanent forestry (whether by registration under section 57
4: An application under subsection (3) must be—
a: in the prescribed form; and
b: accompanied by any prescribed fee and any prescribed information.
5: The EPA may (under this section) add a carbon accounting area to the post-1989 forest land in respect of which a person is recorded as a participant only if—
a: the EPA is satisfied that the person would (if appropriate) qualify to be registered as a participant in respect of that land under section 182A
b: where the forest species on that land is predominantly naturally regenerated tree weeds, the EPA is satisfied that the risk of tree weed spread from the land is low.
6: If the EPA—
a: registers a person as a participant under section 57
b: receives an application to add a carbon accounting area and subsection (5) is satisfied, the EPA must—
i: update the participant's record to reflect the addition of the carbon accounting area; and
ii: notify the participant accordingly.
7: The addition of a carbon accounting area under subsection (6)(b)(i) has effect on and after the date of the notice given under subsection (6)(b)(ii).
8: See also sections 182D 182E Section 182C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 182C(1)(c)(i) amended 23 December 2023 section 6 Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023
182D: Notice to forestry participant if their registration added or removed
The EPA must give written or electronic notice to a participant, or former participant, of the following matters as soon as practicable after the EPA carries them out under any of Parts 5 to 5D
a: the participant’s registration or removal from registration in respect of an activity, and the date on which this took or takes effect:
b: the addition or removal of any area or land for which the participant is registered, and the date on which this took or takes effect. Section 182D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182E: Notice to interested party if forestry participant’s registration added or removed
1: A participant must notify the interested party (if any) of the following matters under this section, in writing or electronically, as soon as practicable after receiving the EPA’s notice about, or becoming aware of, the matter:
a: the participant’s registration, or removal from registration, in respect of an activity, and the date that this took or takes effect:
b: the addition or removal of any area or land for which the participant is registered, and the date that this took or takes effect.
2: The EPA must provide the participant with any address that it has recorded for the interested party.
3: In this section, interested party
a: the landowner, in relation to a participant who is registered for an activity relating to—
i: holding a registered forestry right or registered lease over land; or
ii: being a party to a Crown conservation contract over land; or
b: any person with a registered forestry right or registered lease in respect of the land, in relation to a participant who is registered for an activity relating to owning post-1989 forest land. Section 182E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182F: Removing registration as participant in standard or permanent forestry
1: This section sets out some situations in which section 186 186B
2: Section 186
a: receives an application under section 58
b: is satisfied under section 59(2)
3: Section 186 section 59AA section 59A
4: A person who is a participant in standard forestry or permanent forestry—
a: may apply to the EPA to—
i: remove any carbon accounting area or areas from the post-1989 forest land in respect of which the person is recorded as a participant; or
ii: remove post-1989 forest land from any carbon accounting area or areas in respect of which the person is recorded as a participant; and
b: must, as soon as practicable, notify the EPA if the person ceases to carry out the activity in respect of—
i: a carbon accounting area in respect of which the person is recorded as a participant; or
ii: any land in a carbon accounting area in respect of which the person is recorded as a participant.
5: An application or a notice under subsection (4) must be—
a: in the prescribed form; and
b: accompanied by any prescribed fee and any prescribed information.
6: Section 186
a: receives and approves an application to remove a carbon accounting area for which a person is recorded as a participant; or
b: receives a notice that a person has ceased to carry out standard forestry or permanent forestry on all of a carbon accounting area; or
c: is satisfied that a person has ceased to carry out standard forestry or permanent forestry on all of a carbon accounting area.
7: Section 186B
a: receives and approves an application to remove land from a carbon accounting area for which a person is recorded as a participant; or
b: receives a notice that a person has ceased to carry out standard forestry or permanent forestry on part of a carbon accounting area; or
c: is satisfied that a person has ceased to carry out standard forestry or permanent forestry on part of a carbon accounting area.
8: This section is subject to section 190A Section 182F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182G: Removing registration as participant in standard or permanent forestry in certain natural events or clearance for forest management
1: A person who is a participant in standard forestry or permanent forestry may, as soon as practicable, notify the EPA if all or part of the post-1989 forest land on which the person carries out the activity—
a: is affected by a natural event that permanently prevents re-establishing a forest on that land; or
b: is cleared land to which section 179A(1)(c)
2: The notice must—
a: include the prescribed information (if any); and
b: be signed by the person; and
c: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
3: If the EPA is satisfied that the post-1989 forest land is land to which subsection (1)(a) or (b) applies, then whichever of section 186 186B Section 182G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
182: Offsetting in relation to pre-1990 forest land
Section 182 repealed 1 January 2013 section 76 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Provisional and final forestry emissions returns Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
183: Provisional forestry emissions return in any year
1: This section applies to a person who is a participant in an activity of standard forestry or permanent forestry.
2: The person may, once before 1 July in each year, submit a provisional forestry emissions return prepared under section 183B
a: that covers 1 or more of the carbon accounting areas for which the person is a participant in the activity (each a CAA1
b: that uses the last day of the previous calendar year as the relevant date Section 183 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
183A: Final forestry emissions return at end of mandatory emissions return period
1: This section applies to a person who is a participant in an activity of standard forestry or permanent forestry on the last day of a mandatory emissions return period.
2: The person must submit a final forestry emissions return prepared under section 183B
a: that covers each carbon accounting area for which the person was a participant in the activity on the last day of the mandatory emissions return period (each a CAA1
b: that uses the last day of the mandatory emissions return period as the relevant date
3: The deadline for submitting the emissions return is 6 months after the end of the mandatory emissions return period.
4: However, subsection (2) does not apply in relation to a carbon accounting area in relation to which a participant is not required to submit an emissions return under—
a: section 191G(b)
b: section 193F(3)(b) Section 183A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
183B: Preparing provisional or final forestry emissions return
1: An emissions return prepared under this section must—
a: specify the CAA1s that the emissions return covers; and
b: specify the activity for which the person was a participant on the CAA1s; and
c: for each CAA1,—
i: specify the emissions return period that applies, by using subsection (4) and the relevant date from the provision that requires the return; and
ii: specify the emissions and removals during the emissions return period; and
iii: set out the calculation under section 184
iv: specify the person’s net liability or entitlement for emissions and removals during the emissions return period by,—
A: for a provisional forestry emissions return, specifying the same value as the person’s gross liability or entitlement; or
B: for a final forestry emissions return, setting out the calculation of that value under section 184A
v: set out the calculation under section 184B
d: set out the calculation under section 184C
2: The emissions return must—
a: include the prescribed information (if any); and
b: be signed by the participant; and
c: when submitted under the relevant provision, be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
3: See section 62(1)(b) and (c)
4: In this section, emissions return period
a: starts on the latest of the following:
i: the first day of the mandatory emissions return period in which the relevant date falls:
ii: if the CAA1 was constituted by registration under section 182C
iii: if the CAA1 was constituted in another way, the constitution date of the CAA1:
iv: the day after the last day of the emissions return period for the CAA1 under,—
A: for a provisional forestry emissions return, the last provisional or final forestry emissions return submitted for the CAA1; and
B: for a final forestry emissions return, the last final forestry emissions return submitted for the CAA1; and
b: ends on the relevant date.
5: If subsection (4)(a)(ii) applies, the person must be treated as if they became a participant in respect of the CAA1 on the date under that subparagraph (before the CAA1 was actually constituted) for the purposes of calculating—
a: emissions and removals from the CAA1; and
b: the unit balance of the CAA1. Section 183B replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Calculations for provisional and final forestry emissions returns Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
184: Gross liability or entitlement for each CAA1 in emissions return
1: A person’s gross liability or entitlement g g = r − e where— r is the number of units required for removals from the CAA1 during the emissions return period e is the number of units required for emissions from the CAA1 during the emissions return period. Recalculation based on unit balance for provisional forestry emissions return (see section 185A)
2: However, in preparing a provisional forestry emissions return, if—
a: the g calculated under subsection (1) is a negative number, giving a gross liability; and
b: that gross liability is greater than the value p calculated for the CAA1 under section 184B then g is recalculated as the negative of p. Section 184 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
184A: Net liability or entitlement for each CAA1 in final forestry emissions return
Calculation based on overlapping provisional forestry emissions returns
1: A person’s net liability or entitlement h h = g − g n where— g is the person’s gross liability or entitlement for the CAA1 (under that same final forestry emissions return) g n is the sum of the person’s gross liability or entitlement for the CAA1 under each overlapping provisional forestry emissions return (if any).
2: To avoid doubt, if there is no overlapping provisional forestry emissions return, a person’s net liability or entitlement is the same as their gross liability or entitlement for a CAA1. Recalculation based on liability for changes involving averaging accounting
3: However, if section 189F 189G h = h a where— h a is the person’s net liability or entitlement calculated under subsection (1) s is the number of units the person is liable to surrender under section 189F 189G Recalculation based on unit balance (see section 185A)
4: Finally, if—
a: the h calculated under subsection (1), or as recalculated under subsection (3) (if it applies), is a negative number, giving a net liability; and
b: that net liability is greater than the value p calculated for the CAA1 under section 184B then h is recalculated as the negative of p. Definition
5: In this section, overlapping provisional forestry emissions return Section 184A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
184B: Unit balance calculation for each CAA1 in emissions return
The unit balance u u = p + h where— p is—
a: the previous unit balance of the CAA1 calculated under the last emissions return submitted for the CAA1; or
b: zero, if there is no such return h is the person’s net liability or entitlement for the CAA1 under the emissions return for which u is calculated. Section 184B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
184C: Total liability or entitlement for all CAA1s in emissions return
A person’s total liability or entitlement Section 184C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Total liability or entitlement and unit balance has effect for all emissions returns Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
184D: Total liability or entitlement has effect, and unit balance updated, when emissions return submitted
1: This section applies when a person submits a provisional or final forestry emissions return.
2: If the person’s total liability or entitlement for the CAA1s covered by the emissions return is—
a: a positive number, the person is entitled to receive (or be reimbursed) that number of New Zealand units; or
b: a negative number, the person is liable to surrender (or repay) that number of units.
3: For a final forestry emissions return, the person—
a: is entitled to be reimbursed (instead of to receive) units; or
b: is liable to repay (instead of to surrender) units— to the extent that they surrendered, or received, more units for a CAA1 under provisional forestry emissions returns than required to satisfy their net liability or entitlement for the CAA1 under the final forestry emissions return.
4: The unit balance of each CAA1 covered by the emissions return is updated to the unit balance calculated under the return. Section 184D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 New unit balance report for certain applications or notices Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
185: New unit balance report
1: A new unit balance report prepared under this section must—
a: specify the CAA2s that the report covers and, for each CAA2 whose boundaries are not the same as a CAA1, define the CAA2; and
b: specify the CAA1s (that are replaced by the CAA2s); and
c: set out the calculation under this section of the opening unit balance of each CAA2; and
d: if any CAA1 forms a notional CAA2 and a remainder CAA2 (because participation ceases for part of the CAA1 under section 186B
2: However, subsection (1) is subject to the following provisions (which limit reconfiguration):
a: section 191H
b: section 192G
c: section 193H Opening unit balance if CAA2 has same boundaries as CAA1
3: If a CAA2 has the same boundaries as a CAA1, the opening unit balance v v = u where— u is the unit balance of the CAA1 (under the emissions return for the CAA1 that includes the report). Opening unit balance if CAA2 formed from land in 1 or more CAA1s
4: If a CAA2 is formed from land in 1 or more CAA1s, the opening unit balance v u n n n where— u n is the unit balance of the overlapping CAA1 (under the emissions return for the CAA1 that includes the report) a n is the area of overlap between the CAA2 and the overlapping CAA1 (in hectares) b n is the area of the overlapping CAA1 (in hectares). Final liability or entitlement if CAA1 forms notional CAA2 and remainder CAA2
5: A person’s final liability or entitlement f f = t − u n where— t is the person’s total liability or entitlement for the CAA1s (under the emissions return for the CAA1s that includes the report) u n is the sum of the opening unit balance of each notional CAA2 formed from a CAA1. Section 185 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Maximum liability is unit balance of carbon accounting area Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
185A: Maximum liability is unit balance of carbon accounting area
Despite section 63 Section 185A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Ceasing participation in standard or permanent forestry Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186: Ceasing participation for whole carbon accounting areas
1: This section applies if a person ceases, or is to cease, participation in an activity of standard forestry or permanent forestry (on the end date CAA1
2: However, this section does not apply if another provision of this Act requires an emissions return to be prepared for the situation.
3: To avoid doubt, this section applies whether—
a: the person is ceasing to be a participant in the activity in a CAA1, or is removing a CAA1 for which the person is recorded as a participant; or
b: the person is giving notice to the EPA, the EPA has approved an application from the person, or the EPA is acting under a provision of this Act; or
c: the CAA1s are some or all of the carbon accounting areas on which the person participates in the activity. Section 186 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186A: Effect of ceasing participation for whole carbon accounting areas
1: If section 186
a: the person ceases to be a participant in the activity in the CAA1s; and
b: the person is liable to surrender the number of units equal to the unit balance of each CAA1 (calculated under the last emissions return submitted for the CAA1).
2: However, subsection (1)(b) does not apply if the person has ceased to be a participant because of section 182G
3: The EPA must amend the register kept under section 57 section 182C(2)
4: See sections 182D 182E Section 186A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186B: Ceasing participation for part carbon accounting areas
1: This section applies if a person ceases, or is to cease, participation in an activity of standard forestry or permanent forestry (on the end date CAA1
2: To avoid doubt, this section applies whether—
a: the person ceases to be a participant in the activity in part of a CAA1, or is removed from being recorded as a participant in respect of part of a CAA1; or
b: the person is giving notice to the EPA, the EPA has approved an application from the person, or the EPA is acting under a provision of this Act.
3: However, this section does not apply to a situation for which another provision of this Act already requires an emissions return to be prepared.
4: The person must—
a: prepare a final forestry emissions return under section 183B
i: that covers each CAA1; and
ii: that uses the end date as the relevant date
b: include in that return a new unit balance report under section 185 CAA2
i: a notional CAA2
ii: a remainder CAA2
5: The person must—
a: include the emissions return with the application or notice when it is made or given; or
b: if there is no application or notice, provide the emissions return when required by the EPA.
6: The land in a notional CAA2 must be treated as forest land if the person has ceased to be a participant because of section 182G Section 186B replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186C: Effect of ceasing participation for part carbon accounting areas
1: This section applies if a final forestry emissions return (for the CAA1s) is provided to the EPA in accordance with section 186B
2: Starting on the end date,—
a: the emissions return is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA1s under section 184D
b: the person ceases to be a participant in the activity on the notional CAA2s; and
c: the person is liable to surrender the number of units equal to the opening unit balance calculated for each notional CAA2 in the new unit balance report; and
d: the person is a participant in the activity in the remainder CAA2s (instead of the CAA1s); and
e: the unit balance of each remainder CAA2 is the opening unit balance calculated for it in the new unit balance report; but
f: any entitlement to receive units because of paragraph (a) is offset against any liability to surrender units under paragraph (c), so that the person’s final liability or entitlement is as calculated in the new unit balance report.
3: However, subsection (2)(c) and (f) does not apply if the person has ceased to be a participant because of section 182G
4: The EPA must amend the register kept under section 57 section 182C(2)
5: See sections 182D 182E Section 186C replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186D: If participant has never carried out activity in carbon accounting area
1: This section applies if the EPA is satisfied that a person is not carrying out, and has never carried out, the activity of standard or permanent forestry in a carbon accounting area, or part of an accounting area, for which they are registered.
2: The EPA must amend the register kept under section 57 section 182C(2)
3: The person must surrender the unit balance that relates to the carbon accounting area (or part area).
4: At least 60 days before amending the register, the EPA must notify the person—
a: that the EPA proposes to remove the person’s registration in respect of the carbon accounting area, or part carbon accounting area; and
b: of the reason for the proposed removal; and
c: of the actions that the person may take to prevent the removal (for example, provide evidence that the person carries out the activity in the carbon accounting area).
5: The EPA may still take action under this section if it is unable to notify the person of its proposal to do so because it is not reasonably practicable to locate them or their address. Section 186D replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186E: Deforesting pre-1990 offsetting forest land before usual rotation period of forest species on pre-1990 forest land
Section 186E repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186F: Regulations relating to offsetting
Section 186F repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186G: EPA may revoke approval in certain circumstances
Section 186G repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186H: Treatment of allocations in respect of pre-1990 forest land that is offset
Section 186H repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186I: Participant in respect of pre-1990 offsetting forest land
Section 186I repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
186J: Methodology for pre-1990 offsetting forest land cleared after usual rotation period is completed
Section 186J repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Transmission of interest relating to standard or permanent forestry Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
187: Transmission of interest in post-1989 forest land
1: This section applies—
a: if, subject to section 157A(4)
b: if a person registered as a participant in respect of an activity of standard forestry or permanent forestry and who is described in the first column of Part B of the following table grants an interest or enters into a contract described in the second column of Part B 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 of standard forestry or permanent forestry: The following table is small in size and has 4 columns. Columns 1 to 4 are grouped under the heading Part A. Column 1 is headed Existing participant. Column 2 is headed Interest transferred. Column 3 is headed New participant. Column 4 is headed New activity of standard or permanent forestry. Part A Existing participant Interest transferred New participant New activity of standard or permanent forestry 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 The following table is small in size and has 4 columns. Columns 1 to 4 are grouped under the heading Part B. Column 1 is headed Existing participant. Column 2 is headed Interest entered into. Column 3 is headed New participant. Column 4 is headed New activity of standard or permanent forestry. Part B Existing participant Interest entered into New participant New activity of standard or permanent forestry Landowner 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 (only if agreed under subsection (2) Being the holder of a registered forestry right over post-1989 forest land (only if agreed under subsection (2) 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 (only if agreed under subsection (2) Being a lessee under a registered lease of post-1989 forest land (only if agreed under subsection (2) 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 The following table is small in size and has 4 columns. Columns 1 to 4 are grouped under the heading Part C. Column 1 is headed Existing participant. Column 2 is headed Interest expired or terminated. Column 3 is headed New participant. Column 4 is headed New activity of standard or permanent forestry. Part C Existing participant Interest expired or terminated New participant New activity of standard or permanent forestry 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: Despite subsection (1)(b), if a transferor covered by that paragraph grants a registered forestry right or registered lease described in the second column of Part B of the table in that subsection, this section applies only if, before the date of transmission,—
a: the transferor and the transferee have agreed in writing that the transferee is to become the participant in relation to the post-1989 forest land to which the transmitted interest relates; and
b: the transferor has given written notice of the agreement to the EPA.
3: In this section and section 187A
a: CAA1
i: means a carbon accounting area that contains post-1989 forest land to which a transmitted interest relates; and
ii: includes, where a transmitted interest relates to post-1989 forest land in part of a carbon accounting area, that carbon accounting area:
b: each of the persons described in the first column of the table in subsection (1) is a transferor
c: each of the persons described in the third column of the table in subsection (1) is a transferee
d: transmitted interest
i: in the circumstances described in subsection (1)(a), the post-1989 forest land, registered forestry right over post-1989 forest land, registered lease of post-1989 forest land, or Crown conservation contract that is transferred:
ii: in the circumstances described in subsection (1)(b), the registered forestry right over post-1989 forest land, registered lease of post-1989 forest land, or Crown conservation contract that is granted or entered into:
iii: in the circumstances described in subsection (1)(c), the interest in the registered forestry right over post-1989 forest land, registered lease of post-1989 forest land, or Crown conservation contract that has expired or been terminated:
e: date of transmission
i: in the circumstances described in subsection (1)(a), the date of transfer of—
A: the post-1989 forest land:
B: the registered forestry right over post-1989 forest land:
C: the registered lease of post-1989 forest land:
D: the Crown conservation contract:
ii: in the circumstances described in subsection (1)(b), the date of registration of the registered forestry right over post-1989 forest land, the date of registration of the registered lease of post-1989 forest land, or the date the Crown conservation contract is entered into:
iii: in the circumstances described in subsection (1)(c), the date that the registered forestry right over post-1989 forest land, registered lease of post-1989 forest land, or Crown conservation contract expires or is terminated.
4: The transferor and transferee must give notice of the transmission to the EPA—
a: within 20 working days of the date of transmission; or
b: if the transmission occurred by operation of law, as soon as practicable after the date of transmission.
5: The notice must—
a: include a final forestry emissions return prepared by the transferor under section 183B
i: that covers each CAA1; and
ii: that uses the date of transmission as the relevant date
b: include in that return a new unit balance report prepared by the transferor under section 185 CAA2
i: for each CAA1 where the transmitted interest applies to its entire area, a transferee CAA2
ii: for each other CAA1,—
A: a transferee CAA2
B: a transferor CAA2
6: The notice must be—
a: in the prescribed form; and
b: accompanied by any prescribed fees or charges and any prescribed information; and
c: signed by both the transferor and the transferee.
7: However, if the transmitted interest is part of a deceased participant’s estate,—
a: for the transfer to the executor or administrator,—
i: subsections (4) to (6) do not apply (so that no notice, final forestry emissions return, or new unit balance report is required); but
ii: section 187A(2)(b) and (c) and (3)
b: for the transfer from the executor or administrator to a successor,—
i: the transferee (not the transferor) must prepare the final forestry emissions return and new unit balance report required by subsection (5); and
ii: for the purposes of those documents, the CAA1s are the CAA1s that relate to the transfer to the executor or administrator; and
c: in every case, the executor or administrator of more than 1 deceased participant’s estate is treated under this Act as if they were a separate participant for each of those estates.
8: To avoid doubt,—
a: for the purposes of section 54(4) section 187D
b: a transferor is not required to notify the EPA separately under section 59
c: the EPA is not required to notify any person under section 182C(6)(a) section 57 Section 187 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
187A: Effect of transmission of interest in post-1989 forest land
1: This section applies if notice of a transmission is given to the EPA in accordance with section 187
2: Starting on the date of transmission,—
a: the emissions return is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA1s under section 184D
b: the transferee becomes a participant on the transferee CAA2s in the relevant activity referred to in the fourth column of the table in section 187(1)
c: the transferor,—
i: if there is 1 or more transferor CAA2s, is a participant in the relevant activity described in section 187(1)
ii: otherwise, ceases to be a participant in that activity on the CAA1s; and
d: the unit balance of each CAA2 is the opening unit balance calculated for it in the new unit balance report.
3: The EPA must amend the register kept under section 57 section 182C(2) Section 187A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Non-compliance for transmitted interests Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
187B: EPA may act if person fails to give notice of transmitted interest
1: This section applies if—
a: the EPA is satisfied that a notice has not been given in accordance with section 187(4)
b: section 187D
2: In particular, this section applies to whichever of the following notices (forming part of that overall notice required by section 187(4) failed notice
a: the part that requires information from the transferor (the transferor notice
b: the part that requires information from the transferee (the transferee notice EPA may correct matters
3: The EPA may act under section 187C(2) and (3)
a: the EPA notifies the transferor or transferee of its intention to do so; and
b: the EPA specifies the following deadline for them to give or correct the required notice: the end of the 90th working day after the EPA gives its notice; and
c: they do not give or correct the required notice by the deadline. EPA may correct matters, remove relevant registration after transmission registered, or do both
4: The EPA may act under 1 or both of section 187C(2) and (3)
a: the following requirements are met:
i: the EPA notifies the transferor or transferee of its intention to do so; and
ii: the EPA specifies the following deadline for them to give or correct the required notice:
A: 6 months after the end of the mandatory emissions return period in which the date of transmission falls; or
B: if the EPA gives its notice after the deadline in subsubparagraph (A), the end of the 90th working day after the EPA gives its notice; and
iii: they do not give or correct the required notice by the deadline; or
b: the EPA is unable to notify the transferor or transferee of its intention to do so because it is not reasonably practicable to identify or locate them or their address. EPA may remove relevant registration where transmission not registered
5: The EPA may act under section 187C(6) and (7)
a: the following requirements are met:
i: the EPA notifies the transferor or transferee of its intention to do so; and
ii: the EPA specifies the following deadline for them to give or correct the required notice:
A: 6 months after the end of the mandatory emissions return period in which the date of transmission falls; or
B: if the EPA gives its notice after the deadline in subsubparagraph (A), the end of the 90th working day after the EPA gives its notice; and
iii: they do not give or correct the required notice by the deadline; or
b: the EPA is unable to notify the transferor or transferee of its intention to do so because it is not reasonably practicable to identify or locate them or their address.
6: However, where this section also applies to 1 or more other transmissions of interest for different parts of the same CAA1, the EPA must not act under section 187C(6) and (7) Transferor or transferee gives or corrects notice
7: If the transferor or transferee gives or corrects the required notice by the deadline specified in a notice given by the EPA under this section, their notice must be treated as having been given to the EPA—
a: in accordance with section 187(4)
b: on the last day on which it could have been given under that provision. Section 187B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
187C: How EPA may act
1: In acting under this section in relation to a failed notice, the EPA may—
a: use subsections (2) and (3) to correct matters:
b: use subsections (4) and (5) to remove registration in relation to relevant CAA2s (after the transmission is registered):
c: use subsections (6) and (7) to remove registration in relation to relevant CAA1s (where the transmission is not registered). Correcting matters
2: The EPA may,—
a: if the failed notice has not been given, prepare the notice that ought to have been given; or
b: if the failed notice has been given but is not complete, complete the notice.
3: The EPA may do the following when preparing or completing the notice:
a: if the notice must include an emissions return (including any new unit balance report), the EPA may apply—
i: section 120
ii: section 121
b: if the notice must include any other information, the EPA may prepare or complete that information by making any required assumptions or estimates. Removing registration for relevant areas after transmission registered
4: If the transmission of interest has had effect in accordance with section 187A section 57 section 182C(2)
a: the transferee ceased to be a participant in the relevant activity on each transferee CAA2 immediately after becoming a participant for those, if the transferee notice is a failed notice:
b: the transferor ceased to be a participant in the relevant activity on the transferor CAA2s immediately after becoming a participant for those, if—
i: there are 1 or more transferor CAA2s; and
ii: the transferor notice is a failed notice.
5: If the EPA acts under subsection (4),—
a: the person who ceases to be a participant on certain CAA2s is liable to surrender the number of New Zealand units equal to the unit balance of each of those CAA2s (calculated under the last emissions return submitted for the CAA2); and
b: see sections 182D 182E Removing registration for relevant areas where transmission not registered
6: If the transmission of interest has not had effect in accordance with section 187A section 57 section 182C(2)
7: If the EPA acts under subsection (6),—
a: the transferor is liable to surrender the number of New Zealand units equal to the unit balance of each of those CAA1s (calculated under the last emissions return submitted for the CAA1); and
b: see sections 182D 182E Section 187C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
187D: EPA may attribute liability and entitlement to final transferee after earlier non-compliant transmission
1: This section applies if a person would have been a transferee of a transmitted interest (the final transmission section 187
a: the failure of any person to give notice in accordance with section 187(4) first transmission
b: if there were 1 or more other transmissions of interest between the first and final transmissions, those other transmissions not becoming subject to (and compliant with) the requirements of section 187
2: The EPA must treat the transferee of the final transmission as if they were liable to surrender units for all emissions, and entitled to receive units for all removals, from the land in their transferee CAA2s in the period that—
a: starts immediately after the emissions return period of the last emissions return submitted for the CAA1s of the first transmission; and
b: ends on the date of transmission of the final transmission.
3: The EPA must do so by acting under section 187C(2) to (5)
a: calculate that liability and entitlement; and
b: amend the register kept under section 57 section 182C(2)
4: The EPA must also act under section 187C(2) to (5)
a: calculate the liability and entitlement of the transferor of the transferor CAA2:
b: amend the register kept under section 57 section 182C(2) Section 187D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Application to reconfigure carbon accounting areas for standard or permanent forestry Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
188: Application to reconfigure carbon accounting areas for standard or permanent forestry
1: A participant in an activity of standard forestry or permanent forestry may apply to reconfigure any of the carbon accounting areas for the activity.
2: The application must—
a: specify the activity; and
b: specify the land to which the application relates, which must be 1 or more whole carbon accounting areas for the activity (each a CAA1
c: include a final forestry emissions return prepared under section 183B
i: that covers the CAA1s; and
ii: that uses the date on which the application is submitted to the EPA as the relevant date
d: include in that return a new unit balance report prepared under section 185 CAA2s
3: The application must also—
a: be signed by the applicant; and
b: be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
4: However, subsection (1) is subject to the following provisions (which limit reconfiguration):
a: section 191H
b: section 192G
c: section 193H Section 188 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
188A: Criteria to reconfigure carbon accounting areas for standard or permanent forestry
1: If a person submits an application under section 188
a: if satisfied that the criteria in subsection (2) are met, must approve the application; or
b: otherwise, may decline the application.
2: The criteria are—
a: that the application complies with section 188
b: that the applicant has paid any prescribed fees or charges; and
c: that any other criteria prescribed in regulations made under section 168(1)(naa)
3: In considering the application, the EPA must treat the land to which it relates as post-1989 forest land. Section 188A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
188B: Approval of application to reconfigure carbon accounting areas for standard or permanent forestry
1: This section applies if the EPA approves a person’s application under section 188
2: Starting on the day on which the application was submitted to the EPA,—
a: the emissions return for the CAA1s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA1s under section 184D
b: the person is a participant in the activity on the CAA2s (instead of the CAA1s); and
c: the person is not liable to surrender the unit balance of each CAA1; and
d: the unit balance of each CAA2 is the opening unit balance calculated for it in the new unit balance report.
3: The EPA must amend the register kept under section 57 section 182C(2) Section 188B replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
188C: Restriction start date of reconfigured carbon accounting area for permanent forestry
1: This section applies if a person reconfigures carbon accounting areas for permanent forestry by approval of an application under section 188
2: For the purposes of section 190 Section 188C replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Application to change activity on post-1989 forest land Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189: Application to change activity on post-1989 forest land
1: A participant in an initial activity on any post-1989 forest land may apply to become a participant in—
a: a final activity on the land, if the initial activity is standard forestry or permanent forestry; or
b: 1 or more final activities on the land, if the initial activity is PFSI activity.
2: To avoid doubt, a change in activity carries over the unit balance of each carbon accounting area (or the net number of units transferred for PFSI land) from the initial activity to the final activity. Change from standard or permanent forestry
3: If the initial activity is standard forestry or permanent forestry, the application must—
a: specify the initial activity and the final activity; and
b: specify the land to which the application relates, which must be 1 or more whole carbon accounting areas for the initial activity (each a CAA1
c: include a final forestry emissions return prepared under section 183B
i: that covers the CAA1s; and
ii: that uses the date on which the application is submitted to the EPA as the relevant date
iii: that includes any liability required to be included by section 189F(4) 189G(4)
d: include in that return a new unit balance report prepared under section 185 CAA2
i: CAA2s that have the same boundaries as the CAA1s, to the extent that subparagraph (ii) does not apply:
ii: if the clear-fell exception applies and any land that is now in 1 or more CAA1s was clear-felled after the forest sink covenant was terminated,—
A: a CAA2 for all of the land that was clear-felled; and
B: a CAA2 for each CAA1 to the extent it was not clear-felled. Change from PFSI activity
4: If the initial activity is PFSI activity, the application must—
a: specify the initial activity and the 1 or more final activities; and
b: specify the land to which the application relates (the PFSI land
c: include an emissions return prepared under section 189C section 189E
d: include in that return a new unit balance report prepared under section 189D CAA2
i: if the final activity for any of the land is standard forestry, one CAA2 for all of that land:
ii: if the final activity for any of the land is permanent forestry, one CAA2 for all of that land, unless subparagraph (iii) applies:
iii: if the final activity for any of the land is permanent forestry (the PF land
A: one CAA2 for all of the PF land that was clear-felled; and
B: one CAA2 for the rest of the PF land. General provisions
5: The application must also—
a: be signed by the applicant; and
b: be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
6: The following table specifies the matters referred to in this section (under the relevant headings): The following table is small in size and has 4 columns. Column 1 is headed Previous activity. Column 2 is headed Initial activity. Column 3 is headed Final activity. Column 4 is headed Clear-fell exception. Previous activity Initial activity Final activity Clear-fell exception PFSI activity Standard forestry PFSI activity Permanent forestry Exception applies Standard forestry Permanent forestry PFSI activity Standard forestry Permanent forestry Exception applies Permanent forestry Standard forestry
7: As indicated in the table, the clear-fell exception applies
a: a change from PFSI activity (initial activity) to permanent forestry (final activity):
b: a change from standard forestry (initial activity) to permanent forestry (final activity), if the activity on the land was previously changed from PFSI activity (previous activity) to standard forestry under this section. Section 189 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189A: Criteria to change activity on post-1989 forest land
1: If a person submits an application under section 189
a: if satisfied that the criteria in subsection (2) are met, must approve the application; or
b: otherwise, may decline the application.
2: The criteria are—
a: that the application complies with section 189
b: that the applicant has paid any prescribed fees or charges; and
c: if the initial activity is PFSI activity, that the EPA is satisfied that the person would (if appropriate) qualify to be registered as a participant in respect of the land under section 182A
d: that any other criteria prescribed in regulations made under section 168(1)(naa)
3: In considering the application,—
a: if the initial activity is standard forestry or permanent forestry, the EPA must treat the land to which the application relates as post-1989 forest land; or
b: if the initial activity is PFSI activity, the EPA must treat the forest land to which the application relates as post-1989 forest land. Section 189A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189B: Approval of application to change activity on post-1989 forest land
1: This section applies if the EPA approves a person’s application under section 189
2: If the initial activity is standard forestry or permanent forestry, then, starting on the day on which the application was submitted to the EPA,—
a: the emissions return for the CAA1s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA1s under section 184D
b: the person ceases to be a participant in the initial activity on the CAA1s; and
c: the person becomes a participant in the final activity on the CAA2s; and
d: the person is not liable to surrender the unit balance of each CAA1; and
e: the unit balance of each CAA2 is the opening unit balance calculated for it in the new unit balance report.
3: If the initial activity is PFSI activity, then, starting on the day on which the application was submitted to the EPA,—
a: the forest sink covenant registered against the PFSI land is terminated; and
b: if section 189E
c: for each CAA2, the person becomes a participant in the final activity specified for that CAA2 in the application; and
d: the unit balance of each CAA2 is the opening unit balance calculated for it in the new unit balance report.
4: The EPA must amend the register kept under section 57 section 182C(2) Section 189B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189C: Emissions return for application to change from PFSI activity
1: An emissions return prepared under this section must—
a: specify the PFSI land that the return covers; and
b: specify that the person carried out PFSI activity on the PFSI land; and
c: set out the calculation under subsection (2) of the PFSI unit balance from transfers of units while the forest sink covenant was registered against the PFSI land; and
d: if applicable, set out the calculation under section 189E s
2: The PFSI unit balance g g = r − e where— r is the number of units that were transferred by the Crown in respect of the PFSI land while the forest sink covenant was registered against it e is the number of units that were transferred to the Crown in respect of the PFSI land while the forest sink covenant was registered against it.
3: The emissions return must—
a: include the prescribed information (if any); and
b: be signed by the participant; and
c: when submitted under the relevant provision, be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any). Section 189C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189D: New unit balance reports for application to change from PFSI activity
1: A new unit balance report prepared under this section for a final activity must—
a: specify the CAA2 that the report covers or, if the final activity is permanent forestry to which section 189(4)(d)(iii)
b: specify the PFSI land (all or part of which will form the CAA2 or CAA2s); and
c: set out the calculation under this section of the opening unit balance and, if applicable, the provisional unit balance of the CAA2 or each CAA2. One final activity and 1 CAA2
2: If there is only 1 final activity for the PFSI land and 1 CAA2 (formed from all the PFSI land), and section 189E opening unit balance v
3: If there is only 1 final activity for the PFSI land and 1 CAA2 (formed from all the PFSI land), and section 189E
a: the provisional unit balance h
b: the opening unit balance v v = h − s where— h is the provisional unit balance of the CAA2 s is the number of units (if any) that the person is liable to surrender under section 189E Two final activities or 2 CAA2s
4: Subsections (5) and (6) apply if there are 2 final activities for the PFSI land or 2 CAA2s for a final activity.
5: If section 189E opening unit balance v v = g × (a ÷ b) where— g is the PFSI unit balance (under the emissions return for the PFSI land that includes the report) a is the area of the CAA2 (in hectares) b is the area of the PFSI land (in hectares).
6: If section 189E
a: the provisional unit balance h h = g × (a ÷ b) where— g is the PFSI unit balance (under the emissions return for the PFSI land that includes the report) a is the area of the CAA2 (in hectares) b is the area of the PFSI land (in hectares); and
b: the opening unit balance v v = h − s where— h is the provisional unit balance of the CAA2 s is the number of units (if any) that the person is liable to surrender under section 189E Section 189D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189E: Liability to surrender units on transfer from PFSI activity to standard forestry in carbon accounting area (averaging)
1: This section applies to a CAA2 if—
a: a person submits an application under section 189
b: the initial activity is PFSI activity and the final activity for the CAA2 is standard forestry; and
c: on the constitution date for the CAA2, any land in it ( area A
2: If the EPA approves the application, the person is liable to surrender the number of units ( s s = (d − n) × a where— d is the determined carbon stock of area A, determined as if it were in a carbon accounting area (averaging) (in tonnes per hectare) n is what the nominal average carbon stock for area A will be when the CAA2 is constituted (in tonnes per hectare) a is the area (in hectares) of area A.
3: If the CAA2 will have 2 or more areas of land that the regulations require to be treated separately for the purpose of determining their nominal average carbon stock or determined carbon stock (or both), subsection (2) applies separately in respect of each area.
4: However, if the s calculated under subsection (2), or the sum of each s where subsection (3) applies, is greater than the provisional unit balance of the CAA2 under section 189D(3)(a) or (6)(a)
5: The liability to surrender units under this section—
a: is to be treated as a liability for emissions from the PFSI land; and
b: must be included in the emissions return under section 189(4)(c)
6: In this section, terms defined in section 191 Section 189E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189F: Liability to surrender units on transfer from permanent forestry to standard forestry in carbon accounting area (averaging)
1: This section applies if—
a: a person submits an application under section 189
b: the initial activity is permanent forestry and the final activity is standard forestry; and
c: on the constitution date for any CAA2, any land in it ( area A
2: If the EPA approves the application, the person is liable to surrender the number of units ( s s = (d − n) × a where— d is the determined carbon stock of area A, determined as if it were in a carbon accounting area (averaging) (in tonnes per hectare) n is what the nominal average carbon stock for area A will be when the CAA2 is constituted (in tonnes per hectare) a is the area (in hectares) of area A.
3: If the CAA2 will have 2 or more areas of land that the regulations require to be treated separately for the purpose of determining their nominal average carbon stock or determined carbon stock (or both), subsection (2) applies separately in respect of each area.
4: The liability to surrender units equal to the s calculated under subsection (2), or the sum of each s where subsection (3) applies,—
a: is to be treated as a liability for emissions from the CAA1 that includes area A during the emissions return period for the emissions return under section 189(3)(c)
b: must be included in that emissions return as part of the calculation under section 184A section 183B(1)(c)(iv)
5: In this section, terms defined in section 191 Section 189F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
189G: Liability to surrender units on transfer from standard forestry in carbon accounting area (averaging) to permanent forestry
1: This section applies if—
a: a person submits an application under section 189
b: the initial activity is standard forestry and the final activity is permanent forestry; and
c: any land ( area A
i: has a subsequent rotation forest; and
ii: has a determined carbon stock that is less than the nominal average carbon stock for area A.
2: If the EPA approves the application, the person is liable to surrender the number of units ( s s = (n − d) × a where— n is the nominal average carbon stock for area A (in tonnes per hectare) d is the determined carbon stock of area A (in tonnes per hectare) a is the area (in hectares) of area A.
3: If the CAA1 has 2 or more areas of subsequent rotation forest that the regulations require to be treated separately for the purpose of determining their nominal average carbon stock or determined carbon stock (or both), subsection (2) applies separately in respect of each area.
4: The liability to surrender units equal to the s calculated under subsection (2), or the sum of each s where subsection (3) applies,—
a: is to be treated as a liability for emissions from the CAA1 during the emissions return period for the emissions return under section 189(3)(c)
b: must be included in that emissions return as part of the calculation under section 184A section 183B(1)(c)(iv)
5: In this section, terms defined in section 191 Section 189G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Restrictions for permanent forestry land Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190: Permanent forestry period for land
1: If a person becomes registered as a participant carrying out permanent forestry in respect of any land, the permanent forestry period
a: an initial period of 50 years starting on the restriction start date; and
b: any 1 or more consecutive periods of a further 25 years for which a participant chooses the option under section 190J(1)(a)
2: The restriction start date
a: if no initial activity is specified (in column 2), it means the person became registered for the permanent forestry without reference to any initial activity on the land:
b: if an initial activity is specified (in column 2) and no previous activity is specified (in column 1), it means—
i: the person became registered for the permanent forestry by acceptance of an application under section 189
ii: the person previously became registered for the initial activity without reference to any previous activity:
c: if an initial activity is specified (in column 2) and a previous activity is specified (in column 1), it means—
i: the person became registered for the permanent forestry by acceptance of an application under section 189
ii: the person previously became registered for the initial activity by acceptance of an application under section 189
3: However, as indicated in column 5 of the table, the restriction start date
a: the clear-fell exception applied in the application under section 189
b: any of the land in the application was clear-felled after the forest sink covenant was terminated.
4: After any land’s permanent forestry period has started, its permanent forestry period—
a: may change under section 188C
b: does not change if the land becomes part of a new carbon accounting area when—
i: a person ceases to be a participant on other land because of section 182G
ii: an interest is transmitted under section 187
iii: other land is removed in accordance with section 190B
iv: any of the land in the carbon accounting area becomes temporary adverse event land under section 193C
5: In this section,— covenant date registration date
6: The following table contains the columns referred to in this section: The following table is small in size and has 5 columns. Column 1 is headed Previous activity. Column 2 is headed Initial activity. Column 3 is headed Final activity. Column 4 is headed Restriction start date. Column 5 is headed Later restriction start date (for clear-felled land). Column 1 Column 2 Column 3 Column 4 Column 5 Previous activity Initial activity Final activity Restriction start date Later restriction start date (for clear-felled land) Permanent forestry Registration date PFSI activity Permanent forestry Covenant date Registration date Standard forestry Permanent forestry Registration date PFSI activity Standard forestry Permanent forestry Covenant date Registration date Section 190 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190A: Restriction on ceasing to be registered for permanent forestry
1: The only ways in which a person may cease to be registered as a participant carrying out permanent forestry in respect of any land are as follows:
a: the person is exempted from this section by an Order in Council under section 60A
b: the person ceases to be a participant because of—
i: section 182G
ii: section 193L(2)(e)
c: the land becomes land for which a transferee under section 187
d: the registration is removed in accordance with section 190B
e: the registration for the whole carbon accounting area that includes the land is removed because of section 190G
f: after the permanent forestry period ends,—
i: the EPA removes the registration under section 190K
ii: the person changes from permanent forestry to standard forestry on the land by application under section 189
2: This section overrides any other provision of this Act. Section 190A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190B: Minister may approve removal of land from permanent forestry
1: This section sets out an exception by which a person can cease to be registered as a participant carrying out permanent forestry in respect of any land (the removal of land
2: The person must—
a: first obtain the Minister’s approval in writing to the removal of land; and
b: then apply for the removal of land under section 182F(4)(a)(i) or (ii) sections 186 186A sections 186B 186C
3: The provisions referred to in subsection (2)(b), and the provisions applied by them, apply as if the land subject to the removal of land were forest land.
4: The Minister may approve the removal of land only to the extent that the Minister is satisfied that—
a: it would be unreasonable in the circumstances to require the person to remain registered in respect of the land; and
b: the removal will not materially undermine the environmental integrity of 1 or both of the following:
i: the activity of permanent forestry as a whole (not just by that person):
ii: the emissions trading scheme.
5: In considering those matters, the Minister must have regard to—
a: the desirability of minimising any compliance and administrative costs associated with the emissions trading scheme; and
b: the relative costs of approving or not approving the removal of land, and who bears the costs; and
c: any other matters the Minister considers relevant. Section 190B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190C: Exception from prohibition on clear-felling and deforestation
1: Sections 190D to 190H
a: land for which a person ceases to be a participant because of—
i: section 182G
ii: section 193L(2)(e)
b: temporary adverse event land.
2: However, if land ceases to be temporary adverse event land and section 193Q sections 190D to 190H
3: For that purpose,—
a: any clear-felling or deforestation that occurred while the land was temporary adverse event land is to be treated as having occurred on the date the land ceased to be temporary adverse event land; but
b: any penalty must be calculated by reference to the pre-event carbon stock rate for the land under section 193A(3)(d)(i) Section 190C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190D: Permanent forestry land must not be clear-felled
1: A person who is registered as a participant carrying out permanent forestry on any land must ensure that the land is not clear-felled.
2: If any of the land is clear-felled (the clear-felled land
a: the person must, as soon as practicable, notify the EPA of the clear-felling; and
b: the EPA must apply section 190E Section 190D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190E: Pecuniary penalty for clear-felling of permanent forestry land
1: This section applies after—
a: a person has notified the EPA of clear-felling under section 190D(2)
b: a final forestry emissions return has been submitted that covers the 1 or more carbon accounting areas that include the clear-felled land.
2: The EPA must apply to the court for a pecuniary penalty order against the person for contravening section 190D(1)
3: The court—
a: must determine whether the person has contravened section 190D(1)
b: must determine whether the person has established, on the balance of probabilities, that the defence applies; and
c: if it is satisfied that the person has contravened the provision without a defence,—
i: must make a declaration of contravention; and
ii: must order the person to pay a pecuniary penalty to the Crown.
4: The amount of the pecuniary penalty—
a: must be the deemed value of the part of the forest on the clear-felled land that was cleared or killed below the requirement for tree crown cover from forest species of 30% in each hectare, as determined in accordance with regulations; but
b: may be reduced, at the court’s discretion, if the court is satisfied that the person has a reasonable excuse for the contravention.
5: In this section, defence
a: the clear-felling was beyond the person’s control; and
b: the person could not reasonably have foreseen the clear-felling; and
c: the person could not reasonably have taken steps to prevent the clear-felling. Section 190E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190F: Regulations for pecuniary penalty for clear-felling
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 in relation to a pecuniary penalty under section 190E
a: setting out how to calculate the deemed value of the part of the forest on clear-felled land that was cleared or killed below the requirement for tree crown cover from forest species of 30% in each hectare:
b: specifying different factors that affect the calculation of the deemed value, for example,—
i: the area of the clear-felled land, in hectares:
ii: the geographic region of the clear-felled land:
iii: the forest species, or the type of forest, that was on the clear-felled land:
iv: the age or size of the forest that was on the clear-felled land:
c: providing for any other matters contemplated by section 190E
2: Before recommending the making of regulations under this section, the Minister must—
a: consider—
i: the differences in value between forests of different types or ages or with trees of different forest species or sizes; and
ii: the market value of the wood and other products removed from forests, and the historic variation in the market value; and
iii: the need to assign an appropriate value for forests with no market, or for which no market price is available, so as to deter clear-felling on all land in permanent forestry; and
iv: any need to deem the volume of the harvest from a forest; and
b: comply with the consultation requirements in sections 3A 3B
3: Regulations made under this section come into force 3 months after the date of their publication under the Legislation Act 2019
4: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 190F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190G: Permanent forestry land must not be deforested
1: A person who is registered as a participant carrying out permanent forestry on any land must ensure that the land is not deforested.
2: If any of the land is deforested (the deforested land
a: the person ceases to be a participant in permanent forestry in respect of each carbon accounting area that includes any deforested land (each a CAA1
b: accordingly,—
i: the person must notify the EPA under section 182F(4)(b)
ii: sections 186 186A
c: the EPA must apply section 190H Section 190G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190H: Pecuniary penalty for deforestation of permanent forestry land
1: If this section applies, the EPA must apply to the court for a pecuniary penalty order against the person for contravening section 190G(1)
2: The court—
a: must determine whether the person has contravened section 190G(1)
b: must determine whether the person has established, on the balance of probabilities, that the defence applies; and
c: if it is satisfied that the person has contravened the provision without a defence,—
i: must make a declaration of contravention; and
ii: must order the person to pay a pecuniary penalty to the Crown.
3: The amount of the pecuniary penalty, in dollars ( a a = b × c where— b is the number of units equal to the sum of the unit balance of each CAA1 that was calculated under the last emissions return submitted for the CAA1 before the clearing that caused the deforestation c is the price, in dollars, of carbon per tonne on the final date on which deforestation occurred, as set by or in accordance with regulations made under section 30W
4: However, the amount may be reduced, at the court’s discretion, if the court is satisfied that the person has a reasonable excuse for the contravention.
5: In this section, defence
a: the deforestation was beyond the person’s control; and
b: the person could not reasonably have foreseen the deforestation; and
c: the person could not reasonably have taken steps to prevent the deforestation. Section 190H inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190I: Due dates for payment of penalties and recovery of EPA’s costs
1: This section applies if the court orders that a person pay a pecuniary penalty under section 190E 190H
2: The court must also order that the penalty be applied first to pay the EPA’s actual costs in bringing the proceedings.
3: The person must pay the penalty—
a: within 20 working days after the date on which the order is made, or by any later date specified by the order; or
b: by the date or dates agreed under a deferred payment arrangement under section 135A Section 190I inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190J: Option must be chosen at end of permanent forestry period
1: After the permanent forestry period ends, the participant carrying out permanent forestry on post-1989 forest land must choose an option CAA1
a: giving notice to the EPA that they will carry out permanent forestry on the CAA1 for a further 25 years; or
b: removing the CAA1 from permanent forestry by any means available under this Act.
2: The participant must choose an option before or when the first of the following documents is submitted for the CAA1:
a: a provisional forestry emissions return:
b: a final forestry emissions return under section 183A
3: If the participant does not choose an option before or when submitting an emissions return described by subsection (2), or does not submit the final forestry emissions return described by subsection (2), the EPA must give notice to the participant.
4: The EPA’s notice must state—
a: that the participant must choose an option for each CAA1 within 30 working days after the EPA gave its notice; and
b: that a CAA1 will be removed from permanent forestry if the participant does not choose an option for it by then. Section 190J inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
190K: Removal of carbon accounting area from permanent forestry
1: This section applies to a CAA1 if the participant does not choose an option for the CAA1 by the deadline in the EPA’s notice given under section 190J(3)
2: As a result,—
a: the participant ceases to be a participant in permanent forestry on the CAA1; and
b: the participant is liable to surrender the number of units equal to the unit balance of the CAA1 (calculated under the last emissions return submitted for the CAA1).
3: The EPA must amend the register kept under section 57 section 182C(2) Section 190K inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5: Averaging accounting methodology
Subpart 5 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191: Interpretation
In this subpart,— carbon accounting area (averaging) section 191B(2) DCS section 191D(2) first rotation forest section 191C(3) and (4) NACS section 191D(3) subsequent rotation forest section 191C(6) TACS section 191D(4) Section 191 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191A: Overview of averaging accounting methodology
1: The object of averaging accounting methodology is to account for emissions and removals from an activity of standard forestry—
a: by reference to the expected long-term average level of carbon stock of the land over multiple forest rotations, rather than by reference to short-term changes in the actual carbon stock of the land (as required by sections 63 64
b: in a way that achieves approximately the same result in the long term as would have been achieved using carbon stock change accounting but without the repeated receipt and surrender of units for each forest rotation.
2: The number of units that a participant for a carbon accounting area (averaging) is entitled to receive, or is liable to surrender,—
a: is determined by reference to the expected long-term average carbon stock of the land over multiple forest rotations and changes in that average ( see sections 191E 191F
b: will vary depending on whether the land has a first rotation forest or a subsequent rotation forest ( see section 191C Section 191A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191B: Averaging accounting applies to carbon accounting areas (averaging)
1: Averaging accounting methodology applies in respect of emissions and removals from an activity of standard forestry in a carbon accounting area (averaging).
2: A carbon accounting area in respect of which a participant is registered in respect of an activity of standard forestry is a carbon accounting area (averaging)
a: its constitution date is after 31 December 2022; and
b: it was constituted—
i: under section 182C
ii: under section 189B
iii: from a reconfiguration of 1 or more carbon accounting areas (averaging) (and no other land).
3: See also clause 33 Section 191B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191C: First rotation forest and subsequent rotation forest
1: Land in a carbon accounting area (averaging) has either a first rotation forest or a subsequent rotation forest.
2: Different parts of a carbon accounting area (averaging) may have different rotation forests.
3: Land has a first rotation forest
a: the land has not been cleared since it became forest land; or
b: the land,—
i: having been forest land, was deforested; and
ii: remained deforested for at least the stand-down period prescribed in regulations made under section 191I see
iii: was re-established as forest land; and
iv: has not been cleared since that re-establishment; or
c: the land—
i: is post-1989 forest land because of paragraph (a)(iii) to (vii) of the definition of post-1989 forest land in section 4
ii: has not been cleared since it became post-1989 forest land; or
d: the land is declared by regulations made under section 191I
4: However, land that would otherwise have a first rotation forest under subsection (3) does not have a first rotation forest if it is declared by regulations made under section 191I
5: Subsection (3)(b)(ii) does not apply if the deforestation referred to in subsection (3)(b)(i) occurred before 1 January 2021.
6: Land has a subsequent rotation forest Section 191C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191D: Carbon stock measures for land
1: There are 3 measures of carbon stock for land in a carbon accounting area (averaging)—
a: the determined carbon stock:
b: the nominal average carbon stock:
c: the typical average carbon stock.
2: The determined carbon stock ( DCS
3: The nominal average carbon stock ( NACS
a: if the land has a first rotation forest, the current age of the forest species on the land:
b: if the land has a subsequent rotation forest, the prior clearing age, determined in accordance with the prescribed methodology.
4: The typical average carbon stock ( TACS
a: if the land has a first rotation forest, the average expected rotation length for land of that kind:
b: if the land has a subsequent rotation forest, the prior clearing age, determined in accordance with the prescribed methodology.
5: In this section,— average carbon stock prescribed methodology section 191I prior clearing age Section 191D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191E: Entitlement to receive units
1: The participant in respect of a carbon accounting area (averaging) is entitled to receive New Zealand units for removals from the carbon accounting area in accordance with regulations made under section 191I
2: In general terms, the participant will be entitled to receive units as follows:
a: in the case of land that has a first rotation forest,—
i: for removals that occur while the land’s DCS is less than its TACS; and
ii: if—
A: the land’s DCS is equal to or greater than its TACS; and
B: the land’s NACS increases to an amount that is greater than its TACS:
b: in the case of land that has a second rotation forest, if its NACS increases to an amount that is greater than its TACS.
3: If the regulations prescribe different NACS or TACS (or both) for different classes of land, the participant may also be entitled to receive units if the land changes from one class to another with a different NACS or TACS (or both). Section 191E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191F: Liability to surrender units
1: The participant in respect of a carbon accounting area (averaging) is liable to surrender units for emissions from the carbon accounting area in accordance with regulations made under section 191I
2: In general terms, the participant is liable to surrender units as follows:
a: in the case of land that has a first rotation forest, for emissions that occur when—
i: the land’s DCS is greater than its NACS; and
ii: the land’s NACS is less than its TACS:
b: in the case of land that has a subsequent rotation forest, if the land’s NACS decreases to an amount that is less than its TACS.
3: If the regulations prescribe different NACS or TACS (or both) for different classes of land, the participant may also be liable to surrender units if the land changes from one class to another with a different NACS or TACS (or both).
4: The participant is also liable to surrender units if the land is deforested. Section 191F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191G: Calculating and reporting emissions and removals
If provided in the regulations, the participant in respect of a carbon accounting area (averaging) is not required to—
a: calculate emissions and removals for which they are not liable to surrender, or entitled to receive, units; or
b: submit emissions returns covering a carbon accounting area (averaging) in relation to which they are not liable to surrender, or entitled to receive, units. Section 191G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191H: Restriction on reconfiguration
Carbon accounting areas cannot be reconfigured (whether by application under section 188 Section 191H inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
191I: Regulations for averaging
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:
a: prescribing—
i: how emissions and removals from an activity of standard forestry in a carbon accounting area (averaging) must be calculated and reported:
ii: the circumstances in which a participant is or is not liable to surrender units, or entitled to receive New Zealand units, for those emissions and removals:
iii: the methodology for determining the number of units the participant is entitled to receive or liable to surrender in those circumstances:
b: providing that a participant for a carbon accounting area (averaging) is not required to—
i: calculate emissions and removals for which they are not liable to surrender, or entitled to receive, units:
ii: submit emissions returns for a carbon accounting area (averaging) in relation to which they are not liable to surrender, or entitled to receive, units:
c: for the purposes of the definition of first rotation forest ( see section 191C
i: prescribing the stand-down period:
ii: declaring land to have a first rotation forest or a subsequent rotation forest:
d: prescribing methodologies for determining DCS, NACS, TACS, and prior clearing age ( see section 191D
e: providing for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.
2: Regulations made under this section may make different provision for different cases on any differential basis, including—
a: for different forest species:
b: for forest species of different ages:
c: for different rotation periods:
d: for different parts of New Zealand.
3: Regulations made under this section may have retrospective effect as follows:
a: regulations may apply on and from the commencement of the mandatory emissions return period in which they are made or a later date in that period:
b: regulations made under subsection (1)(c)(i) may prescribe a stand-down period that begins before the regulations are made.
4: However, regulations cannot be made under subsection (1)(c)(i) that would increase the length of the stand-down period for a carbon accounting area whose constitution date is before those regulations come into force.
5: Regulations made under this section may require the use of a computer programme available via the Internet site of the EPA.
6: Regulations made under subsection (1)(b) may relate to emissions or removals that—
a: stem directly from an activity; or
b: are associated with a product or other thing that is the subject of an activity.
7: See sections 3A 3B
8: See also sections 169 to 175
9: Regulations made under this section come into force 3 months after the date of their publication under the Legislation Act 2019
10: Regulations under this section—
a: are secondary legislation ( see Part 3
b: have effect in accordance with subsection (3) even if they are not yet published. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 191I inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
6: P89 offsetting
Subpart 6 inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192: Interpretation
In this subpart,— expected carbon stock section 192I P89 offset application section 192A P89 offset application date section 192A P89 offset date section 192C(2)(g) P89 offset release criteria section 192I P89 offsetting (approved) land
a: has become P89 offsetting (approved) land under section 192C(2)(f) 192S(2)(c)
b: has not ceased to be P89 offsetting (approved) land under a provision referred to in section 192D P89 offsetting (excess) land
a: has become P89 offsetting (excess) land under section 192J(2)(a)(iii)
b: has not ceased to be P89 offsetting (excess) land under section 192N(3) P89 offsetting (forested) land section 192J P89 offsetting (unforested) land section 192J P89 release criteria notice section 192J(1) qualifying forest land section 192J(3) reference carbon stock section 192A(2)(e) Section 192 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 P89 offset applications Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192A: Application to offset land for land in carbon accounting area (averaging)
1: A participant in an activity of standard forestry on 1 or more carbon accounting areas (averaging) may apply to the EPA to offset other land for those areas (to transfer the unit balance from the carbon accounting areas (averaging) to the new land).
2: The application must—
a: specify the carbon accounting areas (averaging) to which the application relates (each a CAA1
b: specify the land proposed to be used to offset each CAA1; and
c: include a final forestry emissions return prepared under section 183B
i: that covers the CAA1s; and
ii: that uses the P89 offset application date as the relevant date
d: include in that return a new unit balance report prepared under section 185 CAA2
e: include—
i: the carbon stock of each CAA1 on the P89 offset application date determined in accordance with regulations made under section 192U reference carbon stock
ii: if the person proposed as the participant in respect of any of the CAA2s is not already registered as a participant, the information necessary for that person to become registered; and
iii: any other information prescribed in regulations made under section 192U
3: If the person proposed as the participant in respect of any of the CAA2s is not the participant in respect of the CAA1s, the application must be made jointly with that other person.
4: The application must—
a: be signed by all of the applicants; and
b: be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any). Section 192A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192B: Criteria for P89 offset application
1: If a person submits a P89 offset application, the EPA,—
a: if satisfied that the criteria in subsection (2) were met on the P89 offset application date, must approve the application; or
b: otherwise, may decline the application.
2: The criteria are that— CAA1 criteria
a: the land in each CAA1 is 1 or both of the following:
i: land that has a first rotation forest and whose NACS is equal to or greater than its TACS (as those terms are defined in section 191D
ii: land that has a subsequent rotation forest; and
b: the predominant forest species on each CAA1 were established by direct planting activities, including direct seeding but excluding natural forest regeneration; and CAA2 criteria
c: the land in each CAA2 is 1 or more of the following:
i: land that is not forest land on the P89 offset application date, but if it were to become forest land—
A: would be post-1989 forest land; and
B: if it were in a carbon accounting area, would meet the criteria in section 191C
ii: post-1989 forest land that—
A: became post-1989 forest land less than 2 years before the P89 offset application date; and
B: meets the criteria in section 191C
iii: area 2 (excess) land (as defined in section 181 section 192U
iv: P89 offsetting (excess) land, unless the re-use period prescribed in regulations made under section 192U
d: the total area (whether or not contiguous) of the CAA2s for a CAA1 is equal to or greater than the area of that CAA1; and
e: each individual parcel that makes up the CAA2 has an area of at least 1 hectare and has an average width of at least 30 metres; and Participant criteria
f: the participant in respect of each CAA2 would, if the land in the CAA2 were forest land,—
i: if they are not already registered as a participant in the activity, qualify to be registered under section 57
ii: qualify under section 182A P89 offset release criteria
g: the EPA is satisfied that, on the P89 offset date, the P89 offset release criteria are likely to be met in respect of each CAA1 and the CAA2s proposed in respect of it; and Prescribed criteria
h: any other criteria prescribed in regulations made under section 192U Section 192B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192C: Effect of approval of P89 offset application
1: This section applies if the EPA approves a P89 offset application.
2: Starting on the P89 offset application date,—
a: the emissions return for the CAA1s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA1s under section 184D
b: if any of the land proposed to be included in a CAA2 is already in a carbon accounting area, the participant for that land—
i: is liable to surrender the number of units equal to the unit balance of that carbon accounting area; and
ii: ceases to be a participant in the relevant activity in that carbon accounting area; and
c: the persons proposed as participants for CAA2s are participants in the activity in the CAA2s; and
d: the participant in respect of the CAA1s—
i: ceases to be a participant in the activity in the CAA1s; and
ii: is not liable to surrender the unit balances of the CAA1s; and
e: the unit balance of each CAA2 is the opening unit balance calculated for it in the new unit balance report; and
f: the land in the CAA2s for a CAA1 is the P89 offsetting (approved) land
g: the P89 offset date
i: if, on the P89 offset application date, every hectare of land in the CAA1 had forest species on it that had tree crown cover of more than 30%, 4 years after the P89 offset application date; or
ii: if not, 4 years after the clearing of the CAA1 started most recently before the P89 offset application date.
3: The EPA must amend the register kept under section 57 section 182C(2)
4: If subsection (2)(b)(i) applies,—
a: the notice requiring those units to be surrendered (referred to in section 63(4)
b: if the units are not surrendered by the due date, the EPA may revoke the approval by giving written notice to the participant.
5: If an approval is revoked under subsection (4), this Act applies as if the application had never been made.
6: However, despite subsection (5), the effect of subsection (2)(b)(ii) is not reversed (so the person is not reinstated as a participant for the carbon accounting area). Section 192C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 P89 offsetting (approved) land Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192D: Duration of P89 offsetting (approved) land status
1: Land that becomes P89 offsetting (approved) land for a CAA1 under section 192C(2)(f)
a: the land meets the P89 offset release criteria and is released from being P89 offsetting (approved) land on the P89 offset date under section 192N(2)(c)
b: the person ceases to be a participant because of section 182G
c: the land becomes temporary adverse event land under section 193C
d: the land is P89 offsetting (unforested) land and ceases to be P89 offsetting (approved) land under section 192N(2)(d)
e: the land is P89 offsetting (excess) land and ceases to be P89 offsetting (approved) land under section 192N(2)(e)
f: the land is declared to not be P89 offsetting (approved) land under section 192O(3) section 192P(2)(a)
g: the land is removed land and ceases to be P89 offsetting (approved) land under section 192S(2)(d)
2: To avoid doubt, the land continues to be P89 offsetting (approved) land even if the carbon accounting areas containing the land are reconfigured (whether under section 188B Section 192D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192E: Effect of being P89 offsetting (approved) land
All of the provisions of this Act that apply to post-1989 forest land that is in a carbon accounting area (averaging) apply to P89 offsetting (approved) land as if it were post-1989 forest land, subject to sections 192F 192G Section 192E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192F: Subsequent rotation forest
1: P89 offsetting (approved) land is to be treated as having a subsequent rotation forest (despite section 191C(3)
2: Subsection (1) continues to apply to P89 offsetting (forested) land (identified under section 192J
a: it is first cleared after the P89 offset date (even though it ceases to be P89 offsetting (approved) land on the P89 offset date); or
b: the participant becomes registered for an activity of permanent forestry on the land.
3: To avoid doubt, when subsection (1) ceases to apply to any land, section 191C Section 192F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192G: Reconfiguration restrictions
1: A carbon accounting area containing P89 offsetting (approved) land cannot be reconfigured (whether by application under section 188
2: Reconfiguration is permitted—
a: to reconfigure the carbon accounting areas that contain the P89 offsetting (approved) land for the same CAA1 without including any other land:
b: to remove land that is affected by a natural event that permanently prevents re-establishing a forest in accordance with sections 182G 186B
c: to remove land that becomes temporary adverse event land under section 193C
d: on the P89 offset date as required under section 192J
e: to substitute land under sections 192Q to 192S Section 192G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192H: No transfers to permanent forestry
A participant for a carbon accounting area containing P89 offsetting (approved) land cannot apply under section 189 Section 192H inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Offsetting on P89 offset date Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192I: P89 offset release criteria
1: The P89 offset release criteria
a: the area of the P89 offsetting (forested) land is equal to or greater than the area of CAA1; and
b: the expected carbon stock of the P89 offsetting (forested) land is equal to or greater than the reference carbon stock of the CAA1; and
c: any other criteria prescribed in regulations made under section 192U
2: The expected carbon stock section 192U Adjustment if adverse event
3: If any of the P89 offsetting (approved) land ceases to be P89 offsetting (approved) land under section 192D(1)(b) or (c)
a: for subsection (1)(a), the area of the CAA1 on the P89 offset application date is to be treated as reduced in accordance with subsection (4); and
b: for subsection (1)(b), the reference carbon stock for the CAA1 is to be treated as reduced in accordance with subsection (5).
4: The reduced area of the CAA1 (in hectares) ( y y = a × (j ÷ k) where— a is the area of the CAA1 on the P89 offset application date (in hectares) j is the area of the land that ceased to be P89 offsetting (approved) land under section 192D(1)(b) or (c) k is the area of the P89 offsetting (approved) land on the P89 offset application date (being all of the CAA2s under section 192A
5: The reduced reference carbon stock for the CAA1 (in tonnes) ( w w = c × (j ÷ k) where— c is the reference carbon stock for the CAA1 (in tonnes) j is the area of the land that ceased to be P89 offsetting (approved) land under section 192D(1)(b) or (c) k is the area of the P89 offsetting (approved) land on the P89 offset application date (being all of the CAA2s under section 192A Section 192I inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192J: P89 release criteria notice
1: The participants in an activity of standard forestry on the P89 offsetting (approved) land for a CAA1 on the P89 offset date must give notice ( P89 release criteria notice
2: The P89 release criteria notice must—
a: identify all of the P89 offsetting (approved) land that is each of the following:
i: P89 offsetting (forested) land
ii: P89 offsetting (unforested) land
iii: P89 offsetting (excess) land
A: is qualifying forest land on the P89 offset date; and
B: does not need to be part of the P89 offsetting (forested) land in order for the P89 offset release criteria to be met; and
C: the participants want to be excluded from the P89 offsetting (forested) land and to be available for re-use under section 181B(2)(b)(iv) 192B(2)(c)(iv)
b: include final forestry emissions returns under section 183B
i: that covers each carbon accounting area that contains the P89 offsetting (approved) land (each a CAA3
ii: that uses the P89 offset date as the relevant date
c: include in each return a P89 offset date unit balance report under section 192M CAA4
i: 1 or more forested CAA4s
ii: an unforested CAA4
iii: 1 or more excess CAA4s
d: include any information prescribed in regulations made under section 192U
3: Land is qualifying forest land
a: each hectare of land has forest species on it that have, or are likely to have, tree crown cover of more than 30%; and
b: those forest species were established by direct planting activities, including direct seeding but excluding natural forest regeneration; and
c: each individual parcel that makes up the land has an area of at least 1 hectare and has an average width of at least 30 metres; and
d: the land has not been declared not to be qualifying forest land under section 192O(2)
4: The P89 release criteria notice must—
a: be made jointly by the participants in respect of all of the P89 offsetting (approved) land for the CAA1; and
b: be signed by all of the participants; and
c: be given within 60 working days after the P89 offset date; and
d: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
5: In relation to a final forestry emissions return required by subsection (2)(b), sections 183B to 184D
6: Sections 183B to 185 Section 192J inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192K: Liability to surrender units if P89 offset release criteria not met
1: This section applies in relation to the CAA3s for a CAA1 if the P89 offset release criteria under either or both of paragraphs (a) and (b) of section 192I(1)
2: The participants for the CAA3 are liable to surrender the number of units determined under subsections (4) to (6).
3: That liability is apportioned between the CAA3s under section 192L Liability for area insufficiency
4: If the criterion in section 192I(1)(a) s a s a where— c is the area of the CAA1 on the P89 offset application date (reduced under section 192I(3) d is the total area of all of the P89 offsetting (forested) land for the CAA1 (in hectares) u is the unit balance of the CAA1 in the emissions return that accompanied the application under section 192A Liability for carbon insufficiency
5: If the criterion in section 192I(1)(b) s c s c where— e is the reference carbon stock for the CAA1 (reduced under section 192I(3) f is the total expected carbon stock of all of the P89 offsetting (forested) land for the CAA1 (in tonnes). Total liability
6: The total liability under this section ( t t = s a c Section 192K inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192L: Maximum liability and apportionment
1: This section applies if the participants for the CAA3s for a CAA1 have a liability under section 192K One CAA3
2: If there is only one CAA3,—
a: section 185A
b: the liability for that CAA3 is equal to t under section 192K(6) Two or more CAA3s: maximum liability
3: If there are 2 or more CAA3s,—
a: section 185A
b: if the total liability calculated under section 192K(6) Two or more CAA3s: apportionment
4: If there are 2 or more CAA3s, the liability for each CAA3 ( k k = t × (a 3 3 where— t is the total liability under section 192K(6) a 3 is the area of the CAA3 (in hectares) b 3 is the total area of all of the CAA3s (in hectares). Section 192L inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192M: P89 offset date unit balance report
1: A P89 offset date unit balance report required by section 192J(2)(c)
a: specify the CAA4s that the report covers and, for each CAA4 whose boundaries are not the same as a CAA3, define the CAA4; and
b: specify the CAA3s (whose land will form the CAA4s); and
c: specify the opening unit balance of each unforested CAA4 and each excess CAA4 (if any) as zero; and
d: set out the calculation under subsection (2) of the opening unit balance of each forested CAA4.
2: The opening unit balance of a forested CAA4 ( v v = (u − k) × (a 4 4 where— u is the unit balance of the CAA3 in the emissions return under section 192J(2)(b) k is,—
a: if there is only one CAA4, zero; or
b: if there are 2 or more CAA4s, the liability of the CAA3 under section 192L a 4 is the area of the forested CAA4 (in hectares) b 4 is the total area of all of the P89 offsetting (forested) land for the CAA1 (in hectares). Section 192M inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192N: Effect on P89 offset date
1: This section applies if a P89 release criteria notice is given to the EPA in accordance with section 192J
2: Starting on the P89 offset date,—
a: the emissions return for the CAA3s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA3s under section 184D
b: the participants are not liable to surrender the unit balances of each CAA3 (although they may be liable to surrender units under section 192K
c: for each forested CAA4,—
i: the person who was the participant in respect of the CAA3 from which it was formed is the participant in respect of the forested CAA4 (instead of the CAA3); and
ii: the land in the forested CAA4 is released from being P89 offsetting (approved) land; and
iii: the unit balance of each forested CAA4 is the opening unit balance calculated for it in the P89 offset date unit balance report; and
d: for each unforested CAA4,—
i: the person who was the participant in respect of the CAA3 from which it was formed ceases to be a participant in respect of the unforested CAA4; and
ii: the land in the unforested CAA4 ceases to be P89 offsetting (approved) land; and
iii: the unit balance of each unforested CAA4 is zero; and
e: for each excess CAA4,—
i: the person who was the participant in respect of the CAA3 from which it was formed is the participant in respect of the excess CAA4; and
ii: the land in the excess CAA4 ceases to be P89 offsetting (approved) land but remains P89 offsetting (excess) land subject to subsection (3)); and
iii: the unit balance of each excess CAA4 is zero.
3: Land ceases to be P89 offsetting (excess) land if—
a: the land becomes area 2 (approved) land as a result of being included in a P90 offset application under section 181B(2)(b)(iii)
b: the land becomes P89 offsetting (approved) land as a result of being included in a P89 offset application under section 192B(2)(c)(iii)
c: all re-use periods prescribed in regulations made under section 181W 192U
4: The EPA must amend the register kept under section 57 section 182C(2)
5: After the P89 offset date, section 179
6: Subsection (5) ceases to apply when that land is next cleared (after which section 179 Section 192N inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Action if criteria for initial P89 offset application not met Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192O: EPA may take action if original criteria not met
1: This section applies if the EPA—
a: approved a P89 offset application; but
b: is now satisfied that the application should not have been approved because some or all of the P89 offsetting (approved) land did not meet the criteria in section 192B(2)(c) or (e) Action on or before P89 offset date
2: If this section applies to land on or before the P89 offset date, the EPA may declare that the land that did not meet those criteria is not qualifying forest land for the purposes of section 192J Action after P89 offset date
3: If this section applies to land after the P89 offset date, the EPA may declare that section 192P Procedure
4: The EPA cannot make a declaration under this section more than 7 years after the P89 offset application date.
5: Before making a declaration, the EPA must—
a: notify the participant of its intention to do so and the grounds for doing so; and
b: give the participant at least 60 working days to—
i: show cause as to why the EPA should not do so; or
ii: take other remedial action specified in the notice ( see section 192Q
6: If the EPA makes a declaration under this section, it must give the participant notice of—
a: the declaration and the date on which it was made; and
b: the participant’s liability under section 192P
c: the participant’s right under section 144 Section 192O inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192P: Effect of declaration after P89 offset date
1: This section applies if the EPA makes a declaration under section 192O(3) CAA
2: Starting on the date on which the declaration is made, the participant in respect of the CAA—
a: is liable to surrender the number of units equal to the unit balance of the CAA; and
b: ceases to be a participant in respect of the CAA.
3: The EPA must amend the register kept under section 57 section 182C(2) Section 192P inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192Q: Remedial action: land substitution
1: In a notice under section 192O(5) non-compliant land
2: A participant given that option may apply to the EPA to do so.
3: The application must—
a: specify the carbon accounting areas (each a CAA5
b: identify all the land in each CAA5 as either—
i: removed land
ii: remaining land
c: identify the land that is proposed to be substituted for the removed land ( substitute land
d: include a final forestry emissions return prepared under section 183B
i: that covers the CAA5s; and
ii: that uses the date on which the application is submitted to the EPA as the relevant date
e: include in that return a new unit balance report that—
i: relates to the following carbon accounting areas (each a CAA6
A: a removed CAA6
B: a remaining CAA6
C: a substitute CAA6
ii: specifies the opening unit balance of the removed CAA6 as zero; and
iii: calculates the opening unit balance for the remaining CAA6s and substitute CAA6s in accordance with section 185(4)
iv: is otherwise prepared under section 185
f: include any information prescribed in regulations made under section 192U
4: The application must—
a: be signed by the participant; and
b: be given within the period specified in the notice under section 192O(5)
c: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
5: In relation to the final forestry emissions return and new unit balance report required by subsection (3)(d) and (e), sections 183B to 185
a: the references in those sections to CAA1 were references to CAA5; and
b: the references in those sections to CAA2 were references to CAA6.
6: Sections 183B to 185 Section 192Q inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192R: Criteria for land substitution
1: If a person submits an application under section 192Q
a: if satisfied that the criteria in subsection (2) are met, must approve the application; or
b: otherwise, may decline the application.
2: The criteria are that—
a: the substitute land is land of a kind specified in 1 or more of subparagraphs (i) to (iv) of section 192B(2)(c)
b: the area of the substitute land is equal to or greater than the area of the removed land; and
c: the EPA is satisfied that,—
i: if the substitution date is before the P89 offset date, the P89 offset release criteria are likely to be met in respect of the CAA1 and the new P89 offsetting (approved) land; or
ii: if the substitution date is on or after the P89 offset date, the expected carbon stock of the new P89 offsetting (approved) land as at the substitution date was equal to or greater than the reference carbon stock of the CAA1; and
d: any other criteria prescribed in regulations made under section 192U
3: In this section,— new P89 offsetting (approved) land substitution date section 192Q Section 192R inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192S: Effect of approval of land substitution
1: This section applies if the EPA approves an application under section 192R
2: Starting on the date on which the application was submitted,—
a: the emissions return for the CAA5s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA5s under section 184D
b: if any of the land in a substitute CAA6 is already in a carbon accounting area, the participant for that land—
i: is liable to surrender the number of units equal to the unit balance of that carbon accounting area; and
ii: ceases to be a participant in the relevant activity on that carbon accounting area; and
c: in respect of the remainder CAA6s and substitute CAA6s,—
i: the person becomes a participant in the activity in those CAA6s (instead of the CAA5s); and
ii: the unit balance of each of those CAA6s is the opening unit balance calculated for it in the new unit balance report; and
iii: the land in those CAA6s is P89 offsetting (approved) land for the original CAA1 (together with any P89 offsetting (approved) land for the CAA1 that was not included in this application); and
d: in respect of each removed CAA6,—
i: the person ceases to be a participant in the activity of the removed CAA6; and
ii: the land ceases to be P89 offsetting (approved) land; and
iii: the person is not liable to surrender units (because the unit balance is zero).
3: If subsection (2)(b)(i) applies,—
a: the notice requiring those units to be surrendered (referred to in section 63(4)
b: if the units are not surrendered by the due date, the EPA may revoke the approval by giving written notice to the participant.
4: If an approval is revoked under subsection (3), this Act applies as if the application had never been made.
5: However, despite subsection (4), the effect of subsection (2)(b)(ii) is not reversed (so the person is not reinstated as a participant for the carbon accounting area).
6: The EPA must amend the register kept under section 57 section 182C(2)
7: To avoid doubt, the substitution of land under this section does not affect the P89 offset date for the CAA1. Section 192S inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192T: Effect of application to substitute land being declined
1: This section applies if the EPA declines an application under section 192R
2: The participant cannot make another application under section 192Q
3: The EPA—
a: may make the declaration under section 192O
b: if it does so, the notice under section 192O(6)
i: the decision to decline the application under section 192R
ii: the participants’ right under section 144 Section 192T inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Regulations Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
192U: Regulations for P89 offsetting
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:
a: prescribing the methodology for determining—
i: reference carbon stock ( section 192A
ii: expected carbon stock ( section 192I(2)
b: prescribing the information to be included in, and other requirements for,—
i: P89 offset applications ( section 192A
ii: P89 release criteria notices ( section 192J
iii: applications to substitute land ( section 192Q
c: prescribing re-use periods for area 2 (excess) land or P89 offsetting (excess) land ( section 192B(2)(c)(iii) and (iv)
d: prescribing additional criteria for the approval of—
i: P89 offset applications ( section 192B(2)(h)
ii: land substitution applications ( section 192R(2)(d)
e: prescribing additional P89 offset release criteria ( section 192I(1)(c)
f: prescribing the period for the purposes of the definition of expected carbon stock ( section 192I(2)
g: providing for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.
2: Regulations made under this section may make different provision for different cases on any differential basis, including—
a: for different forest species:
b: for forest species of different ages:
c: for different rotation periods:
d: for different parts of New Zealand.
3: Regulations made under this section may have retrospective effect to the extent that they may apply on and from the commencement of the mandatory emissions return period in which they are made or a later date in that period.
4: Regulations made under this section may require the use of a computer programme available via the Internet site of the EPA.
5: See sections 3A 3B
6: See also sections 169 to 175
7: Regulations under this section—
a: are secondary legislation ( see Part 3
b: have effect in accordance with subsection (3) even if they are not yet published. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 192U inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
7: Temporary adverse events
Subpart 7 inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193: Interpretation for this subpart
1: In this subpart,— adverse event section 193A(1)(b) affected land section 193A(1) carbon recovery section 193M event date
a: if the event occurs—
i: on only 1 day, that day; or
ii: over 2 or more days, the first of those days (even if land in a particular carbon accounting area is not affected until the second or a later day of the event); and
b: if the event occurs in circumstances specified in regulations made under section 193R non-established land section 193K permanently affected land section 193K pre-event carbon stock rate section 193R re-established land section 193K re-establishment section 193J re-establishment date section 193J temporary adverse event land section 193C(2)(e) section 193D
2: For the purposes of the definition of pre-event carbon stock rate
a: if land that is temporary adverse event land in relation to an adverse event ( event 1 event 2
b: if P89 offsetting (approved) land becomes temporary adverse event land, the pre-event carbon stock rate for the land is the reference carbon stock (under section 192A Section 193 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Application Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193A: Application for temporary adverse event suspension
1: Post-1989 forest land is affected land
a: the land is in a carbon accounting area (a CAA1
b: the land is affected by an event of a kind prescribed in regulations made under section 193R adverse event
c: the event results in each hectare of land ceasing to have forest species on it that have, or are likely to have, tree crown cover of more than 30%; and
d: the area of land in each CAA1 that is affected by the event is equal to or greater than any minimum prescribed in regulations made under section 193R
e: the extent of carbon stock lost from the land affected by the event is equal to or greater than any minimum prescribed in regulations made under section 193R
2: A participant in an activity of standard forestry or permanent forestry in a CAA1 may apply for a temporary adverse event suspension for the affected land in that CAA1.
3: The application must—
a: specify the CAA1s to which the application relates; and
b: include a final forestry emissions return prepared under section 183B
i: that covers the CAA1s; and
ii: that uses the day before the event date as the relevant date
c: include in that return a new unit balance report prepared under section 185 CAA2s
i: an affected CAA2
ii: a remainder CAA2
d: include—
i: the pre-event carbon stock rate for the affected land; and
ii: any other information prescribed in regulations made under section 193R
4: The application must—
a: be signed by the participant; and
b: be submitted by the deadline prescribed in regulations made under section 193R
c: be submitted—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any). Section 193A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193B: Criteria of temporary adverse event suspension
1: If a person submits an application under section 193A
a: if satisfied that the criteria in subsection (2) are met, must approve the application; or
b: otherwise, may decline the application.
2: The criteria are that—
a: the land in the affected CAA2s is affected land; and
b: the participant notified the EPA of the occurrence of the adverse event in accordance with regulations made under section 193R
c: the EPA is satisfied that the land in the affected CAA2s—
i: is likely to achieve re-establishment under section 193J
ii: is likely to achieve carbon recovery under section 193M
d: any other criteria prescribed in regulations made under section 193R Section 193B inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193C: Approval of temporary adverse event suspension
1: This section applies if the EPA approves an application for a temporary adverse event suspension under section 193B
2: Starting on the day before the event date,—
a: the emissions return for the CAA1s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA1s under section 184D
b: the person is a participant in the activity on the CAA2s (instead of the CAA1s); and
c: the person is not liable to surrender the unit balance of each CAA1; and
d: the unit balance of each CAA2 is the opening unit balance calculated for it in the new unit balance report; and
e: the land in the affected CAA2s formed from a CAA1 is the temporary adverse event land
3: The EPA must amend the register kept under section 57 section 182C(2) Section 193C inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Temporary adverse event land Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193D: Duration of temporary adverse event land status
1: Land that becomes temporary adverse event land under section 193C(2)(e)
a: the land is released from being temporary adverse event land under section 193N
b: the person ceases to be a participant because of section 182G
c: the land is affected by another event and becomes temporary adverse event land under section 193C(2)(e)
d: the land is non-established land and ceases to be temporary adverse event land under section 193L(2)(d)
e: the land is permanently affected land and ceases to be temporary adverse event land under section 193L(2)(e)
f: the land ceases to be temporary adverse event land under section 193O
g: the land ceases to be temporary adverse event land under section 193P
2: To avoid doubt, the land continues to be temporary adverse event land even if the carbon accounting areas containing the land—
a: are reconfigured (whether under section 188B
b: change activity from standard forestry to permanent forestry or vice versa. Section 193D inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193E: Effect of being temporary adverse event land
1: All of the provisions of this Act that apply to post-1989 forest land continue to apply to temporary adverse event land as if it remained forest land, subject to sections 193F to 193I
2: The temporary adverse event land is also subject to any conditions prescribed in regulations made under section 193R Section 193E inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193F: No liability or entitlement
1: A participant in respect of temporary adverse event land is not liable to surrender units, or entitled to receive New Zealand units, for emissions and removals for the land (including emissions resulting from the adverse event).
2: However, subsection (1) is subject to sections 189F 189G
3: If provided in regulations made under section 193R
a: calculate emissions and removals for which they are not liable to surrender, or entitled to receive, units; or
b: submit emissions returns covering a carbon accounting area in relation to which they are not liable to surrender, or entitled to receive, units. Section 193F inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193G: First rotation forest
1: If temporary adverse event land is in a carbon accounting area (averaging), and on the day before the event date the land had a first rotation forest, then the land is to be treated as continuing to have a first rotation forest.
2: Subsection (1) continues to apply in relation to re-established land until it is first cleared after the re-establishment date (even though it ceases to be temporary adverse event land on the re-establishment date).
3: To avoid doubt, when subsection (1) ceases to apply to land, section 191C Section 193G inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193H: Reconfiguration restrictions
1: A carbon accounting area containing temporary adverse event land cannot be reconfigured (whether by application under section 188
2: Reconfiguration is permitted—
a: to reconfigure the carbon accounting areas that contain the temporary adverse event land from the same CAA1 without including any other land:
b: to remove land that is affected by a natural event that permanently prevents re-establishing a forest in accordance with sections 182G 186B
c: to remove land that becomes temporary adverse event land in relation to a different event:
d: on the re-establishment date as required under section 193K
e: to remove land that has ceased to be temporary adverse event land when section 193Q(5) Section 193H inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193I: Damage to land turns out to be permanent
1: If the adverse event was a natural event and it becomes apparent that it permanently prevents the re-establishing of a forest on the land,—
a: if that becomes apparent before the re-establishment date, the participant may notify the EPA under section 182G then see section 193D(1)(b)
b: if that is apparent at the re-establishment date and the participant has not notified the EPA under section 182G section 193K then see section 193L(2)(e)
c: if that becomes apparent after the re-establishment date, the participant may notify the EPA under section 182G then see section 193D(1)(b)
2: To avoid doubt, if P89 offsetting (approved) land is affected by another event that permanently prevents re-establishing a forest on that land, the participant may comply with section 182G Section 193I inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Re-establishment Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193J: Re-establishment criteria
1: A hectare of temporary adverse event land achieves re-establishment
2: The re-establishment date
a: the date 4 years after the event date; and
b: in circumstances specified in regulations made under section 193R Section 193J inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193K: Notice of achievement of re-establishment
1: A participant in an activity of standard forestry or permanent forestry in 1 or more carbon accounting areas that contain temporary adverse event land from a CAA1 (each a CAA3
2: The notice must,—
a: for each CAA3, identify all of the land in the CAA3 that is each of the following:
i: re-established land
ii: non-established land
iii: if the adverse event was a natural event, permanently affected land
A: that, on the re-establishment date, has not achieved re-establishment; and
B: on which the adverse event has permanently prevented re-establishing a forest; and
b: include a final forestry emissions return under section 183B
i: that covers each CAA3; and
ii: that uses the re-establishment date as the relevant date
c: include in that return a new unit balance report under section 185 CAA4
i: 1 or more re-established CAA4s
ii: a non-established CAA4
iii: a permanently affected CAA4
d: include any information prescribed in regulations made under section 193R
3: The notice must—
a: be signed by the participant; and
b: be given within 60 working days after the re-establishment date; and
c: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
4: In relation to the final forestry emissions return and the new unit balance report required by subsection (2)(b) and (c), sections 183B to 185
a: the references in those sections to CAA1 were references to CAA3; and
b: the references in those sections to CAA2 were references to CAA4.
5: Sections 183B to 185 Section 193K inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193L: Effect on re-establishment date
1: This section applies if a person gives the EPA a notice in accordance with section 193K
2: Starting on the re-establishment date,—
a: the emissions return for the CAA3s is treated as being submitted (so that the total liability or entitlement has effect, and the unit balance is updated, for the CAA3s under section 184D
b: the person is not liable to surrender the unit balance of each CAA3; and
c: for each re-established CAA4,—
i: the person is the participant in respect of the re-established CAA4 (instead of the CAA3); and
ii: the land in the re-established CAA4 remains temporary adverse event land; and
iii: the unit balance of the re-established CAA4 is the opening unit balance calculated for it in the new unit balance report; and
d: for each non-established CAA4,—
i: the person is a participant in respect of the non-established CAA4; and
ii: the land in the non-established CAA4 ceases to be temporary adverse event land; and
iii: the unit balance of the non-established CAA4 is the opening unit balance calculated for it in the new unit balance report; and
iv: section 193Q
e: for each permanently affected CAA4,—
i: the person ceases to be a participant in respect of the permanently affected CAA4; and
ii: the land in the permanently affected CAA4 ceases to be temporary adverse event land; and
iii: the person is not liable to surrender the unit balance of each permanently affected CAA4.
3: The EPA must amend the register kept under section 57 section 182C(2) Section 193L inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Carbon recovery Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193M: Carbon recovery criteria
A hectare of temporary adverse event land achieves carbon recovery section 193R Section 193M inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193N: Notice when land achieves carbon recovery
1: When temporary adverse event land achieves carbon recovery, the participant in respect of the land must give notice to the EPA that the land has achieved carbon recovery.
2: The notice must—
a: be signed by the participant; and
b: be given when the next emissions return that covers the land is submitted; and
c: be given—
i: in the prescribed manner and format; and
ii: together with the prescribed fee (if any); and
iii: together with the prescribed information (if any).
3: If the participant gives notice in relation to land under this section before giving the notice required for the land under section 193K section 193L
4: If the participant has given notice in relation to land under section 193K Section 193N inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Ceasing to be temporary adverse event land before recovery Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193O: Cancellation for breach of conditions
1: If the EPA is satisfied that a condition applying under section 193E(2)
2: If the approval is cancelled,—
a: the land ceases to be temporary adverse event land; and
b: section 193Q Procedure
3: Before cancelling an approval, the EPA must—
a: notify the participant of its intention to do so and the grounds for doing so; and
b: give the participant at least 60 working days to—
i: rectify the non-compliance; or
ii: show cause as to why the EPA should not cancel the approval.
4: If the EPA cancels an approval, it must give the participant notice of—
a: its decision and the reasons for it; and
b: the date on which the cancellation occurred; and
c: the person’s right to seek a review of the decision under section 144 Section 193O inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193P: Other circumstances causing land to cease to be temporary adverse event land
Intentional conversion to non-forest land
1: Temporary adverse event land is intentionally converted
a: takes any action that is inconsistent with the land achieving re-establishment; or
b: otherwise takes any action for the purpose of converting the land to land that is not forest land.
2: If temporary adverse event land is intentionally converted,—
a: the land ceases to be temporary adverse event land; and
b: the land is to be treated as deforested (despite section 179A
c: the reversion date for section 193Q Re-established land cleared before carbon recovery
3: If re-established land is cleared after its re-establishment date but before it achieves carbon recovery,—
a: the land ceases to be temporary adverse event land; and
b: the land is to be treated as deforested; and
c: the reversion date for section 193Q Re-established land treated as deforested
4: If re-established land becomes land that is to be treated as deforested under section 179(1)(b) or (c)
a: the land ceases to be temporary adverse event land; and
b: the reversion date for section 193Q section 179 Section 193P inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193Q: Consequences if land ceases to be temporary adverse event land
1: This section applies to the following land:
a: non-established land that ceases to be temporary adverse event land under section 193L(2)(d) reversion date
b: land in a carbon accounting area in respect of which the approval is cancelled under section 193O reversion date
c: land that ceases to be temporary adverse event land under section 193P reversion date Act reapplies
2: Starting on the reversion date, the provisions of this Act apply to the land as if the land had never become temporary adverse event land. Liability or entitlement
3: As a result, the participant must include all the emissions and removals for the land on and after the event date (including as a result of the adverse event) in the next emissions return the participant is required to submit.
4: For that purpose,—
a: all of those emissions and removals are to be treated as having occurred on the reversion date; but
b: the emissions resulting from the adverse event are to be determined by reference to the pre-event carbon stock rate for the land. Reconfiguration
5: Section 193H(2)(e)
a: the land to which this section applies is only part of a carbon accounting area; and
b: as a result of subsection (2), the participant is required to reconfigure that carbon accounting area to remove that land. Permanent forestry
6: If the activity on the land is permanent forestry, see also section 190C(2) Section 193Q inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Regulations Heading inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
193R: Regulations for temporary adverse events
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:
a: prescribing circumstances and dates for the definitions of event date and re-establishment date in sections 193 193J
b: prescribing the methodology for determining—
i: the pre-event carbon stock rate ( section 193
ii: carbon stock loss ( section 193A
iii: carbon stock for the purpose of determining carbon recovery ( section 193M
c: prescribing the kinds of events that are adverse events ( section 193A
d: prescribing—
i: the minimum affected area ( section 193A(1)(d)
ii: the minimum carbon stock loss ( section 193A(1)(e)
e: prescribing other information to be included in, and the submission date and other requirements for, applications made under section 193A
f: prescribing notification requirements and other criteria for approval under section 193B
g: prescribing conditions for the purposes of section 193E(2)
h: providing that a participant for temporary adverse event land is not required to—
i: calculate emissions and removals for which they are not liable to surrender, or entitled to receive, units:
ii: submit emissions returns covering a carbon accounting area in relation to which they are not liable to surrender, or entitled to receive, units ( section 193F(3)
i: prescribing other information to be included in, and other requirements for, notices under section 193K
j: providing for any other matters contemplated by this subpart, necessary for its administration, or necessary for giving it full effect.
2: Regulations under this section may make different provision for different cases on any differential basis.
3: Regulations made under this section may require the use of a computer programme available via the Internet site of the EPA.
4: Regulations made under subsection (1)(g) may relate to emissions or removals that—
a: stem directly from an activity; or
b: are associated with a product or other thing that is the subject of an activity.
5: See sections 3A 3B
6: Regulations made under this section come into force 3 months after the date of their publication under the Legislation Act 2019
7: See also sections 169 to 175
8: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 193R inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
8: General
Subpart 8 inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Input returns may be submitted before actual emissions returns Heading replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
194: Input returns may be submitted for certain emissions returns for forestry activities
1: This section applies before a person submits an emissions return (for a forestry activity) of a type specified in the regulations.
2: The person may first submit, for the activity and 1 or more of the areas or carbon accounting areas covered by the emissions return, an input return that contains the data or information required by the regulations.
3: The input return must be submitted by—
a: the deadline specified in the regulations; or
b: any extended deadline granted by the EPA under the regulations.
4: In this section, regulations section 194B Section 194 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
194A: EPA may do calculations based on input return
1: This section applies if the EPA receives an input return in accordance with section 194
2: As soon as practicable after receipt, the EPA must—
a: calculate for each area or carbon accounting area covered by the input return, as required for the relevant emissions return,—
i: the participant’s emissions and removals; and
ii: the participant’s liability to surrender units for their emissions or entitlement to receive New Zealand units for their removals; and
b: give a notice to the participant that includes—
i: the calculations and the calculated amounts; and
ii: the data, information, or other matters on which the calculations are based; and
iii: a statement that the participant may choose to include the calculations and the calculated amounts in the relevant emissions return; and
iv: a statement about the effect of subsection (3).
3: The EPA is not liable for anything that results from the calculations that it makes in good faith under this section, and the EPA’s calculations and notice do not affect any obligation of the participant under this Act (such as the obligation to submit an accurate emissions return). Section 194A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
194B: Regulations for input returns
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:
a: specifying the 1 or more types of emissions return for a forestry activity for which input returns may be submitted, which may be specified by reference to 1 or more of the following:
i: the type of forestry activity:
ii: any feature of the forest or land to which the activity relates:
iii: any other matter:
b: specifying the data or information that must be contained in any input return or the input return for each type of emissions return:
c: specifying the deadline for submitting the input return for each type of emissions return, which must be a reasonable period before the deadline for submitting the emissions return:
d: providing for how, and for how long, the EPA may extend a deadline for submitting the input return for any emissions return or for each type of emissions return:
e: authorising the EPA to issue guidelines or standards
2: See sections 3A 3B
3: Regulations under this section are secondary legislation ( see Part 3
3A: If regulations authorise the EPA to issue guidelines or standards under subsection (1)(e),—
a: those guidelines or standards are secondary legislation ( see Part 3
b: the regulations must contain a statement to that effect.
4: A person who has complied with guidelines or standards issued by the EPA under regulations made under subsection (1)(e) is, in the absence of proof to the contrary, presumed to have complied with the relevant requirements specified in regulations corresponding to those guidelines or standards. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (3). Legislation Act 2019 requirements for secondary legislation referred to in subsection (3) Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation referred to in subsection (3A)(a). Legislation Act 2019 requirements for secondary legislation referred to in subsection (3A)(a) Publication See the relevant publication, presentation, and disallowance table in the secondary legislation referred to in subsection (3) LA19 ss 73 74 cl 14 Presentation The Minister must present it to the House of Representatives, unless a transitional exemption applies under Schedule 1 LA19 s 114 cl 32 Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 194B replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
194C: Regulations for input returns
Section 194C repealed 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Notification of status of forest land Heading replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
195: Notification of status of forest land
1: The EPA must, if required by regulations made under section 168
a: the Registrar of the Maori Land Court in whose jurisdiction the land is situated in relation to Maori land; and
b: the Registrar-General of Land in relation to land that is registered under the Land Transfer Act 2017
c: the Registrar of Deeds in relation to land that is registered under the Deeds Registration Act 1908
2: The types of land are—
a: the following types of land in respect of which a person is registered as a participant:
i: pre-1990 forest land:
ii: P90 offsetting land:
iii: post-1989 forest land:
b: the following types of post-1989 forest land:
i: P89 offsetting (approved) land (as defined in section 192
ii: temporary adverse event land:
iii: land for which a person is registered as a participant in permanent forestry:
c: land that the EPA has declared to be exempt land.
3: On receipt of a notice under subsection (1), the Registrar-General of Land or the Registrar of the Maori Land Court or the Registrar of Deeds must record the notice on the appropriate register under the Land Transfer Act 2017 Deeds Registration Act 1908
4: The Registrar-General of Land or the Registrar of the Maori Land Court or the Registrar of Deeds must cancel any notices recorded under subsection (3) if required under regulations made under section 168 Section 195 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Information about status of forest land Heading replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
195A: Information about status of forest land
1: Despite anything in this Act, the EPA must, on receipt of a written request for information about the carbon accounting area or areas to which it relates, provide a statement containing the information in subsection (2) to—
a: the landowner of any post-1989 forest land in respect of which the holder of a registered forestry right or registered lease or party to a Crown conservation contract is a participant; or
b: a prospective transferee, holder of a registered forestry right or registered lease, or party to a Crown conservation contract who has the written consent of the participant in respect of any post-1989 forest land.
2: A statement under subsection (1) must set out—
a: the emissions returns (if any) that have been submitted in respect of the carbon accounting area or areas covered by the information request since the carbon accounting area or areas were constituted, and the period covered by those returns; and
b: the unit balance of the carbon accounting area or areas covered by the information request. Section 195A inserted 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Forestry classifications of land Heading replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196: Meaning of forestry classification
In this Act, forestry classification
a: classifies the area by whether or how—
i: a definition or matter in this Act that relates to forestry applies to the area; or
ii: the area is eligible to have a definition or matter in this Act apply to it if certain requirements are satisfied; and
b: is given—
i: by the EPA under section 196A 196C 196D 144
ii: by the decision of the District Court or High Court under section 145 146 Examples
If specified by regulations, an area of land might be classified as— pre-1990 forest land: post-1989 forest land: land that is eligible to become post-1989 forest land (if it becomes forest land): P90 offsetting land: land that has been deforested, or deforested on specified dates: land that is eligible to be declared exempt land under section 180E post-1989 forest land for which a participant is registered for standard forestry that is or is not a carbon accounting area (averaging): post-1989 forest land for which a participant is registered for permanent forestry: land that was forest land on 31 December 1989: exempt land: pre-1990 forest land to which the pre-1990 forest land allocation plan applies: something else. Section 196 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196A: EPA may give forestry classifications to areas of land
The EPA may give 1 or more forestry classifications to an area of land in accordance with regulations made under section 196F Section 196A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196A: Power to withdraw or suspend certain draft allocation plans
Section 196A repealed 8 December 2009 section 69 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
196B: Effect of forestry classifications
1: The forestry classification of an area of land is conclusive evidence of how the relevant definition or matter in this Act applies to the area.
2: The EPA must apply this Act to the area in accordance with the forestry classification.
3: If a person’s application, notice, emissions return, or other document under this Act specifies the forestry classification of an area of land, the document—
a: need not include any information that is covered by the forestry classification; but
b: for a forestry classification that an area of land is eligible for something if certain requirements are satisfied, must include information about whether the requirements are satisfied.
4: The EPA, or any person carrying out its powers, duties, or functions,—
a: does not warrant that any forestry classification is correct and not based on, or affected by, something that is incorrect or that has materially changed; and
b: is not liable for anything that results from a forestry classification being incorrect or based on, or affected by, something that is incorrect or that has materially changed, as long as the forestry classification was given in good faith. Section 196B replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196C: Change of forestry classification to correct error
1: The EPA may change the forestry classification of an area of land to correct any error that the EPA is satisfied is contained in the classification, including where the classification was based on incorrect information.
2: The EPA must make the change in accordance with regulations made under section 196F Section 196C replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196D: Change of forestry classification to update for changes
1: The EPA may change the forestry classification of an area of land if—
a: there is a material change in any of the information or facts on which the classification is based; or
b: there is a material change to this Act, or to any regulations made under this Act, that affects the classification.
2: The EPA must make the change in accordance with regulations made under section 196F Section 196D replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196E: Forestry classification with effect before date classification given
1: This section applies if a forestry classification has effect before the date on which the classification is given, whether—
a: by the EPA under section 196A 196C 196D section 144
b: by the decision of a court on appeal under section 145 146
2: The forestry classification must be ignored in respect of the period before the date on which the classification is given—
a: to the extent that it would increase the number of units that a person is required to surrender, or decrease the number of New Zealand units that a person is entitled to receive, in respect of that period; and
b: in respect of any other matter specified by regulations made under section 196F
3: In all other respects, the forestry classification must be applied to that period.
4: To avoid doubt, where the forestry classification is ignored under subsection (2), the earlier forestry classification (if any) applies instead. Section 196E replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
196F: Regulations for forestry classifications
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:
a: specifying the forestry classifications that the EPA may give to areas of land:
b: prescribing 1 or more methods or processes by which the EPA may give a new or changed forestry classification to an area, and those methods or processes—
i: may or may not provide for a person to apply for a classification; and
ii: may prescribe the fees or charges payable by an applicant for a classification to enable the recovery of all or part of the direct and indirect costs of the EPA in—
A: receiving and processing the application; and
B: considering, granting, or declining the application; and
iii: must require the EPA to first consult the persons that the regulations specify are likely to be substantially affected by the classification, unless the only persons likely to be substantially affected have applied for, or agreed to, the classification:
c: providing for when a forestry classification comes into effect, which may, for example,—
i: subject to section 196E section 196C 196D section 144 section 145 146
ii: differ for different forestry classifications or circumstances, such as whether a person is responsible for a material change described in section 196D(1)(a)
d: specifying matters for the purposes of section 196E(2)(b)
e: providing for the publication of the following in 1 or more notices, instruments, maps, or tools, which may be electronic:
i: any decision to give a forestry classification to an area of land:
ii: the current forestry classifications of all areas of land, and any related matters.
2: Examples of the costs that may be recovered under regulations made under subsection (1)(b)(ii) include (but are not limited to)—
a: the costs of providing, operating, and maintaining systems, databases, and other processes in connection with the application:
b: the costs of services provided by third parties.
3: Section 167(4)
4: See sections 3A 3B
5: Regulations made under this section come into force 3 months after the date of their publication under the Legislation Act 2019
6: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 196F replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Grant-funded forests Heading replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
197: Entitlement to units for removals from grant-funded forests
A participant in an activity of standard forestry or permanent forestry in a carbon accounting area is not entitled to receive New Zealand units for removals that—
a: are attributable to forest species in relation to which the participant has received a grant from the Crown under a grant scheme relating to forestry that is prescribed in regulations made under section 197A grant-funded forest
b: occur during the stand-down period for that forest prescribed in regulations made under section 197A Section 197 replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
197A: Regulations for grant-funded forests
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:
a: prescribing Crown grant schemes relating to forestry:
b: prescribing stand-down periods for grant-funded forests:
c: prescribing methodologies for attributing removals to grant-funded forests:
d: providing for any other matters contemplated by section 197
2: Regulations made under this section may make different provision for different cases on any differential basis, including—
a: for different grant schemes:
b: for different periods of time:
c: for different forest species:
d: for different parts of New Zealand.
3: Regulations made under this section may require the use of a computer programme available via the Internet site of the EPA.
4: Regulations made under subsection (1)(c) may relate to emissions or removals that—
a: stem directly from the relevant activity; or
b: are associated with a product or other thing that is the subject of the relevant activity.
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 197A replaced 1 January 2023 section 272 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5A: Sector-specific provisions: liquid fossil fuels
Part 5A heading inserted 23 June 2020 section 156(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
2: Liquid fossil fuels sector
Subpart 2 heading repealed 23 June 2020 section 156(6) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
198: Registration as participant by purchasers of
obligation
1: An application under section 57 Part 3 EPA
2: If the EPA registers a person as a participant under section 57 Part 3 section 57(6)
3: If the EPA has received an application under section 58 Part 3 section 58(4)
4: The participant who is registered, or removed from registration, under this section must give notice of that matter, and the date that it took or takes effect, to every person who is registered under section 56 Part 2
5: The notice must be given in writing or electronically as soon as practicable after the participant receives the EPA’s notice about, or becomes aware of, the matter.
6: The EPA must provide the participant with any address that it has recorded for each person who must be notified. Section 198 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 198 heading amended 1 July 2013 section 89 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 198(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 198(2) replaced 23 June 2020 section 175 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 198(3) replaced 23 June 2020 section 175 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 198(4) inserted 23 June 2020 section 175 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 198(5) inserted 23 June 2020 section 175 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 198(6) inserted 23 June 2020 section 175 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
199: Historical information sufficient to satisfy
EPA
1: A person who carries out an activity listed in Part 3 section 57
2: If the EPA section 57 EPA itself Part 3
3: Nothing in this section prevents the EPA EPA Part 3 Section 199 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 199 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 199(1) amended 1 July 2013 section 90(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 199(2) amended 1 July 2013 section 90(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 199(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 199(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
200: Effect of purchasing less than
If a person is a participant in respect of the activity listed in Part 3
a: the person is not required to notify the EPA section 59(1)
b: the EPA section 59(2)
c: the person remains a participant in respect of the activity until the person’s name is removed, in accordance with this Act, from the register that is kept for the purposes of section 57 Section 200 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 200 heading amended 1 July 2013 section 91(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 200 amended 1 July 2013 section 91(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 200(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 200(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
201: Effect of registration by purchasers of
obligation A participant in respect of an activity listed in Part 2 Part 3 Section 201 substituted 8 December 2009 section 70 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 201 heading amended 1 July 2013 section 92(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 201 amended 1 July 2013 section 92(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
202: Activities added to Part 2 of Schedule 3
1: The Governor-General may, by Order in Council, made on the recommendation of the Minister, amend Part 2
a: owning or operating a ship onto which goods are loaded at any port in New Zealand for carriage to and unloading at any other port in New Zealand, if the ship consumes fuel that is purchased—
i: outside New Zealand; or
ii: in New Zealand, but in respect of which no participant is required to surrender units under this Act; or
b: fishing within New Zealand’s exclusive economic zone, if the vessel used for fishing consumes fuel that is purchased outside New Zealand.
2: The Minister may only recommend the making of an Order in Council
a: no participant is, prior to making the recommendation, liable to surrender units in respect of the emissions from the fuel consumed while the activity that is to be the subject of the recommendation is carried out; and
b: adding the activity is—
i: necessary to ensure that A is similar to B, where—
A: A is the cost increases that a person carrying out the activity will face, if the activity is added, due to the obligation imposed by this Act on the person to surrender units in respect of the emissions from the fuel consumed while carrying out the activity; and
B: B is the cost increases that a person carrying out a comparable activity faces due to any obligations imposed by this Act on persons carrying out an activity listed in Part 2
ii: not inconsistent with international climate change obligations
c: recommending the order will not result in costs to the Crown that exceed the benefits that the Crown expects to receive after the order is made.
3: An Order in Council made under subsection (1) takes effect for the removal activity or activities concerned on and from—
a: 1 January of the next year, if made on or before 30 June in any year; or
b: 1 July of the next year, if made on or after 1 July in any year.
4: An order under this section—
a: is secondary legislation ( see Part 3
b: must be confirmed by an Act ( see subpart 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 202 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 202(2) amended 23 June 2020 section 176(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 202(2)(b)(ii) amended 23 June 2020 section 176(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 202(3) replaced 1 January 2016 section 14 Legislation (Confirmable Instruments) Amendment Act 2015 Section 202(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
202A: Orders are confirmable instruments
Section 202A repealed 28 October 2021 section 3 Secondary Legislation Act 2021
203: Treatment of obligation fuels
1: This section applies if, in breach of the Customs and Excise Act 2018
2: If this section applies, the obligation fuel that was not removed for home consumption must, for the purposes of this Act, be treated as obligation fuel removed for home consumption under the Customs and Excise Act 2018 Section 203 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 203(1) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 203(2) amended 1 October 2018 section 443(3) Customs and Excise Act 2018
5B: Sector-specific provisions: stationary energy
Part 5B heading inserted 23 June 2020 section 156(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
3: Stationary energy sector
Subpart 3 heading repealed 23 June 2020 section 156(7) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
204: Participant with respect to mining coal or natural gas
1: This section applies if the following activities listed in Part 3
a: mining coal where the volume of coal mined exceeds 2 000 tonnes in a year:
b: mining natural gas, other than for export.
2: If this section applies and—
a: a permit is required under the Crown Minerals Act 1991
b: no permit is required to carry out the mining, then the owner of the mine is to be treated as the person carrying out the activity.
3: Despite subsection (2)(a), subsection (4) applies if—
a: a permit relating to mining coal is held by 2 or more persons jointly under terms that entitle the individual holders to a proportion of the coal mined under the permit; or
b: a permit relating to mining natural gas is held by 2 or more persons jointly under terms that entitle the individual holders to a proportion of the gas mined under the permit.
4: If this subsection applies,—
a: section 157
b: each of the individual holders referred to in subsection (3)—
i: is to be treated as the person carrying out the activity referred to in subsection (1) in relation to any natural gas or coal (as applicable) to which the person is entitled under the permit; and
ii: must comply with the obligations of a participant under this Act in relation to the natural gas or coal (as applicable) to which the person is entitled under the permit. Section 204 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 204(2)(a) amended 1 January 2013 section 93 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 204(3) added 8 December 2009 section 71 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 204(4) added 8 December 2009 section 71 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
205: Mining natural gas in exclusive economic zone and continental shelf
1: This Act applies to the activity of mining natural gas, other than for export, listed in Part 3
1A: To avoid doubt, a person who carries out the activity of mining natural gas, other than for export, anywhere within the territorial limits of New Zealand, the exclusive economic zone, or in, on, or above the continental shelf is not to be treated as importing the natural gas mined from that activity for the purposes of this Act.
2: For the purposes of this section,— continental shelf section 2(1) exclusive economic zone section 9 Section 205 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 205(1A) inserted 8 December 2009 section 72 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
206: Obligation with respect to combusting used oil, waste oil, and waste
A participant who carries out the activity of combusting used oil, waste oil, used tyres, or waste for the purpose of generating electricity or industrial heat listed in Part 3
a: emissions that result from the combustion of used oil or waste oil if the used oil or waste oil combusted is an obligation fuel; or
b: carbon dioxide that results from the combustion of waste that is organic waste. Section 206 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
207: Obligation with respect to mining coal
A participant who carries out the activity of mining coal, where the volume of coal mined exceeds 2 000 tonnes in a year, listed in Part 3
a: is not required to surrender units in respect of any carbon dioxide emissions from any coal that is exported:
b: is required to surrender units in respect of any coal seam gas emissions that result from the activity. Section 207 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008
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
a: a wholly owned subsidiary of a participant who mines coal or natural gas:
b: a holding company of which a participant who mines coal or natural gas is a wholly owned subsidiary:
c: another wholly owned subsidiary of a holding company of which a participant who mines coal or natural gas is the wholly owned subsidiary.
2: In subsection (1), subsidiary holding company section 5 Section 208 substituted 8 December 2009 section 73 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
209: Registration as participant by purchasers of coal or natural gas
1: An application under section 57 Part 4 EPA
2: If the EPA registers a person as a participant under section 57 Part 4
3: If the EPA has received an application under section 58 Part 4
4: The participant who is registered, or removed from registration, under this section in respect of an activity must give notice of that matter, and the date that it took or takes effect, to every person who—
a: mines—
i: coal, if the activity is purchasing coal; or
ii: natural gas, if the activity is purchasing natural gas; and
b: is registered under section 56
5: The notice must be given in writing or electronically as soon as practicable after the participant receives the EPA’s notice about, or becomes aware of, the matter.
6: The EPA must provide the participant with any address that it has recorded for each person who must be notified. Section 209 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 209(1) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 209(2) replaced 23 June 2020 section 177 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 209(3) replaced 23 June 2020 section 177 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 209(4) replaced 23 June 2020 section 177 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 209(5) inserted 23 June 2020 section 177 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 209(6) inserted 23 June 2020 section 177 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
210: Historical information sufficient to satisfy
EPA
1: A person who carries out an activity listed in Part 4 section 57
2: If the EPA section 57 EPA itself Part 4
3: Nothing in this section prevents the EPA EPA itself Part 4 Section 210 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 210 heading amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 210(2) amended 1 January 2013 section 94(1) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 210(2) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 210(3) amended 1 January 2013 section 94(2) Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 210(3) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
211: Effect of purchasing less than threshold level of coal or natural gas
If a person is a participant in respect of an activity listed in Part 4
a: the person is not required to notify the EPA section 59(1)
b: the EPA section 59(2)
c: the person remains a participant in respect of the activity until the person’s name is removed, in accordance with this Act, from the register that is kept for the purposes of section 57 Section 211 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 211(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 211(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
212: Effect of registration by purchasers of coal or natural gas
A participant who mines coal or mines natural gas is not required to surrender units Part 4 Section 212 added 26 September 2008 section 50 Climate Change Response (Emissions Trading) Amendment Act 2008 Section 212 amended 8 December 2009 section 74 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
5C: Sector-specific provisions: agriculture
Part 5C repealed 26 November 2024 section 30 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
4: Agriculture
Subpart 4 heading repealed 23 June 2020 section 156(8) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
213: Participant in respect of subpart 4 of Part 5 of Schedule 3
Section 213 repealed 26 November 2024 section 30 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
214: Units not required to be surrendered for fertilisers embedded in products
Section 214 repealed 26 November 2024 section 30 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
215: Ministers to report on alternative pricing system for farm-level agriculture emissions
Section 215 repealed 26 November 2024 section 30 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
215: Effect of purchasing or farming less than threshold level
Section 215 repealed 8 December 2009 section 75 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
216: Regulations for voluntary reporting or surrender for animals–farmer or fertiliser–farmer activity
Section 216 repealed 26 November 2024 section 30 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
216: Effect of registration by farmers
Section 216 repealed 8 December 2009 section 75 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
5D: Sector-specific provisions: transitional provisions
Part 5D heading inserted 23 June 2020 section 156(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
5: Transitional provisions
Subpart 5 heading repealed 23 June 2020 section 156(9) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
217: Transitional provision for penalties
Section 217 repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
218: Transitional provision for voluntary reporting
Section 218 repealed 23 June 2020 section 181 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
219: Transitional provision for surrender obligations of certain participants
Section 219 repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
220: Commission to report on progress towards meeting farm-level obligations
Section 220 repealed 26 November 2024 section 31 Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
221: Additional transitional provisions for Part 3 of Schedule 4 participants
Section 221 repealed 23 June 2020 section 182 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
222: Transitional provisions regarding regulations that replace existing unit register regulations
Section 222 repealed 23 June 2020 section 182 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
222A: Transitional provision for liability to surrender units to cover emissions from activities relating to liquid fossil fuels, stationary energy, and industrial processes
Section 222A repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
222B: Transitional provision for entitlement to receive New Zealand units for removal activities
Section 222B repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
222C: Transitional provision permitting payment of money instead of surrender of units to cover emissions
Section 222C repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
222D: Issuing New Zealand units to meet surrender obligation
Section 222D repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
222E: Transitional provisions relating to reporting
Section 222E repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
222F: Transitional provision for allocation to industry
Section 222F repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
222G: Transitional provision regarding prohibition on ability to export New Zealand units
Section 222G repealed 1 January 2013 section 97 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
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 section 157
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—
i: notify the EPA section 157(2)(c)(ii)(A)
ii: apply to be registered as a participant as specified in section 157(2)(c)(ii)(B)
b: the EPA
i: now members of an unincorporated body for the purposes of this Act:
ii: required to provide the details specified in section 157(2)(c)(ii)(C) and (2)(d) EPA EPA
c: the EPA
3:
4:
5:
6: Despite subsection (2),—
a: until the EPA
b: the joint participants whose names have been removed from a register and the unincorporated body whose name has been substituted on that register are to be treated for the purposes of this Act as the same participant. Section 222H inserted 8 December 2009 section 81 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009 Section 222H(2)(a)(i) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 222H(2)(b) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 222H(2)(b)(ii) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 222H(2)(c) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011 Section 222H(3) repealed 23 June 2020 section 183 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 222H(4) repealed 23 June 2020 section 183 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 222H(5) repealed 23 June 2020 section 183 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 222H(6)(a) amended 5 December 2011 section 19 Climate Change Response Amendment Act 2011
6: Targets
Part 6 repealed 14 November 2019 section 11 Climate Change Response (Zero Carbon) Amendment Act 2019
223: Establishment of Household Fund
Section 223 repealed 8 December 2009 section 82 Climate Change Response (Moderated Emissions Trading) Amendment Act 2009
224: Gazetting of targets
Section 224 repealed 14 November 2019 section 11 Climate Change Response (Zero Carbon) Amendment Act 2019
225: Regulations relating to targets
Section 225 repealed 14 November 2019 section 11 Climate Change Response (Zero Carbon) Amendment Act 2019
7: Synthetic greenhouse gas levy
Part 7 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
226: Overview of functions and responsibilities of EPA and agencies under this Part,
Customs and Excise Act 2018
1: This section is a guide to the functions and responsibilities of the EPA and the agencies in relation to the synthetic greenhouse gas levy, but it does not affect the interpretation or the application of the provisions of this Part, the Customs and Excise Act 2018 Land Transport Act 1998
2: Under this Part,—
a: the functions of the EPA are to—
i: receive and collate information from the agencies under section 241
ii: publish information in accordance with section 250
iii: monitor compliance with subpart 1
b: the function of the Registrar of Motor Vehicles is to receive payment of the motor vehicle levy under section 228
c: the function of the New Zealand Customs Service is to receive payment of the goods levy under section 229
d: it is a function of the EPA and the agencies to recover unpaid levies under section 230
3: Under the Customs and Excise Act 2018
a: assess and collect the levy on goods as if the levy were a duty; and
b: recover unpaid levies as if they were unpaid duties.
4: Under the Land Transport Act 1998 Section 226 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 226 heading amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 226(1) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 226(3) amended 1 October 2018 section 443(3) Customs and Excise Act 2018
1: Synthetic greenhouse gas levy
Subpart 1 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Levy imposed Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
227: Synthetic greenhouse gas levy imposed
1: A levy is imposed on—
a: a leviable motor vehicle that is registered on or after 1 July 2013, but is not imposed on a motor vehicle that was registered before 1 July 2013 and registered again on or after 1 July 2013; and
b: an item of leviable goods that is imported into New Zealand on or after 1 July 2013.
2: However, if a leviable motor vehicle is registered more than once on or after 1 July 2013, it is liable for the levy only once. Section 227 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
228: Person who registers leviable motor vehicle responsible for paying levy
1: The person who registers a leviable motor vehicle on or after 1 July 2013 is responsible for paying the levy.
2: The levy (including any goods and services tax payable on it) must be paid to the Registrar of Motor Vehicles at the same time as the person pays for the registration of the vehicle. Section 228 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
229: Importer of leviable goods must pay levy
1: A person who imports leviable goods on or after 1 July 2013 must pay the levy at the prescribed rate for the goods.
2: The person must pay the levy (including any goods and services tax payable on it) to the New Zealand Customs Service at the same time as duty under the Tariff Act 1988 Section 229 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
230: Levies are debt due to the Crown
1: A levy that becomes payable is a debt due to the Crown.
2: The EPA may, on behalf of the Crown, recover the debt in a court of competent jurisdiction.
3: This section does not limit—
a: the power of the Customs to recover an unpaid amount of goods levy as a debt under the Customs and Excise Act 2018
b: the power of the Registrar of Motor Vehicles to recover an unpaid amount of motor vehicle levy as a debt under the Land Transport Act 1998 Section 230 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 230(3)(a) amended 1 October 2018 section 443(3) Customs and Excise Act 2018
231: Penalties for failure to pay levy
Section 231 repealed 1 October 2018 section 443(3) Customs and Excise Act 2018
232: Application of provisions of
Customs and Excise Act 2018
1: The provisions of the Customs and Excise Act 2018 subpart 8
2: However,—
a: section 138(2)
b: section 138(3) and (4)
3: Despite subsection (1), the following provisions of the Customs and Excise Act 2018
a: section 139
b: section 144
c: section 146
d: section 147
e: section 153 Section 232 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 232 heading amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 232(1) replaced 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 232(2)(a) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 232(2)(b) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 232(3) replaced 1 October 2018 section 443(3) Customs and Excise Act 2018 Calculation of levy Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
233: Rate of synthetic greenhouse gas levy
1: The levy rate that applies to a leviable motor vehicle, a class of leviable motor vehicle, or an item or a class of leviable goods in a levy year must be calculated in accordance with the following formula: R = A × B × GWP where— A is the amount of synthetic greenhouse gas contained in the class of leviable motor vehicle or leviable goods, or the item of leviable goods B is the price of carbon specified by or under regulations made under section 30W section 236(2) GWP is the global warming potential specified in regulations for the specified synthetic greenhouse gas R is the rate of the levy.
2: In this section, amount section 246(1)(c) or (e)
3: For the purpose of variable A
a: the amount specified by regulations for that class of leviable motor vehicle or leviable good, or for an item of leviable good; and
b: if no amount is specified by regulations, the actual amount contained in the leviable motor vehicle or leviable good.
4:
5:
6: Section 233 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 233(1) replaced 1 January 2021 section 230(1) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 233(3) amended 23 June 2020 section 184(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 233(4) repealed 1 January 2021 section 230(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 233(5) repealed 1 January 2021 section 230(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 233(6) repealed 1 January 2021 section 230(2) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
234: Transitional provision for synthetic greenhouse gas levy
Section 234 repealed 23 June 2020 section 185 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
235: Temporary suspension of levy set by section 233
Section 235 repealed 1 January 2019
236: Maximum price of carbon for purpose of levy calculation
1: This section applies to the calculation of variable B of the formula set out in section 233(1)
2: If the methodology prescribed under section 30W(1)(a) maximum price but only for the purposes of the calculation in section 233
a: $25, for a levy year that is 2020 or earlier; or
b: $35, for a levy year that is 2021 or later, but that starts before the start date for auctions.
3: In this section, start date for auctions section 30GA(2)(a) Section 236 replaced 23 June 2020 section 186 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 236(2) amended 1 January 2021 section 231(a) Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 236(2) amended 1 January 2021 section 231(b) Climate Change Response (Emissions Trading Reform) Amendment Act 2020
237: Levy rate exclusive of GST
A levy rate calculated in accordance with section 233 Section 237 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 237 amended 1 January 2019 section 9 Climate Change Response (Removal of Transitional Measure) Amendment Act 2016
238: Levy rate for period from 1 July 2013 to 31 December 2013
Section 238 repealed 1 January 2019 section 9 Climate Change Response (Removal of Transitional Measure) Amendment Act 2016
239: Levy rate to apply for single calendar year on and after 1 January 2014
1: A levy rate applies for 1 levy year.
2:
3: If no rate is set before the beginning of a levy year, the levy rate for that year is the same as it was for the preceding levy year.
4: However, if a levy rate is set for a levy year after the beginning of the levy year, the new levy rate applies from the beginning of the quarter of the levy year following the date on which the levy rate was set until the close of the levy year.
5: For the purposes of this section and section 241
a: a levy rate is set on the date on which the regulations prescribing the rate come into force:
b: the quarters of a levy year are—
i: 1 January to 31 March:
ii: 1 April to 30 June:
iii: 1 July to 30 September:
iv: 1 October to 31 December. Section 239 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 239(2) repealed 1 January 2019 section 9 Climate Change Response (Removal of Transitional Measure) Amendment Act 2016 Levies to be paid into Crown Bank Account Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
240: Agencies to pay levy into Crown Bank Account
The EPA and the agencies must pay the amount of all levies received under this Part into a Crown Bank Account. Section 240 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Information Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
241: Agencies to provide information to EPA quarterly
1: The agencies must, for each quarter of a levy year, keep records of and provide to the EPA all the following information:
a: the amount of levy money received:
b: the number of—
i: leviable motor vehicles registered:
ii: consignments of leviable goods imported:
c: the number of persons who were required to pay the levy by section 228 229
d: the number of persons who failed to pay the levy as required by section 228 229
e: the amount of levy money refunded:
f: the amount of levy money unable to be recovered.
2: The information described in subsection (1) must be provided for each class of leviable motor vehicle or and for each class of leviable goods. Section 241 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
242: Agencies and EPA to share information
Section 149(2) Section 242 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
243: Circumstances where levy may be refunded
1: Subsection (2) applies in relation to a levy paid under section 228
a: a motor vehicle containing a leviable good; or
b: a motor vehicle containing a synthetic greenhouse gas that is, because it is imported after 1 July 2013, subject to the emissions subpart 2
2: The EPA, upon application in an approved manner by the person responsible for the payment required under section 228
a: the motor vehicle levy has been paid in relation to the relevant motor vehicle; and
b: the relevant motor vehicle is one to which subsection (1) applies. Section 243 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 243(1)(b) amended 23 June 2020 section 187 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
244: Exemptions from payment of synthetic greenhouse gas levy
1: The Governor-General may, by Order in Council made on the recommendation of the Minister, exempt any person or class of persons from—
a: paying the whole or part of the levy for certain leviable motor vehicles or leviable goods; or
b: being subject to the whole or part of the levy for certain leviable motor vehicles or leviable goods; or
c: a combination of the matters specified in paragraphs (a) and (b).
2: 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.
3: Before recommending the making of an order under subsection (1), the Minister must be satisfied that—
a: the order will not materially undermine the environmental integrity of the synthetic greenhouse gas levy; and
b: the costs of making the order do not exceed the benefits of making the order.
4: In determining whether to recommend the making of an order under subsection (1), the Minister must have regard to the following matters:
a: the need to maintain the environmental integrity of the synthetic greenhouse gas levy; and
b: the desirability of minimising any compliance and administrative costs associated with the synthetic greenhouse gas levy; and
c: the relative costs of giving the exemption or not giving it, and who bears the costs; and
d: any alternatives that are available for achieving the objectives of the Minister in respect of giving the exemption; and
e: any other matters the Minister considers relevant.
5: While an order made under this section is in force, any person or class of persons in respect of whom the order is made is not required to comply with the obligation to pay the levy.
6: See sections 3A 3B
7: An order under this section is secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives, unless it relates exclusively to an individual (in which case a transitional exemption applies under Schedule 1 LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 244 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 244(6) replaced 23 June 2020 section 188 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 244(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Regulations Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
245: Regulations specifying levy rates
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:
a: prescribing the rate of the levy to apply to 1 or more classes of leviable motor vehicles:
b: prescribing the rate of the levy to apply to 1 or more items or classes of leviable goods.
2: Regulations made under subsection (1)(a) may specify different rates for different classes of leviable motor vehicles.
3: Regulations made under subsection (1)(b) may specify different rates for different classes of leviable goods.
4: Regulations made under subsection (1) come into force 3 months after the date of their publication under the Legislation Act 2019
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 245 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 245(4) replaced 23 June 2020 section 189 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 245(4) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 245(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
246: Regulations relating to synthetic greenhouse gas levy
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: Specified synthetic greenhouse gases
a: specifying a hydrofluorocarbon or perfluorocarbon as a specified synthetic greenhouse gas for the purposes of the levy: Leviable motor vehicles
b: specifying classes of leviable motor vehicles to which the levy may apply (which may be by reference to the amount of synthetic greenhouse gas that they contain):
c: specifying the amount of a specified synthetic greenhouse gas that each class of leviable motor vehicles is to be treated as containing: Leviable goods
d: specifying leviable goods or classes of leviable goods to which the levy may apply (which may be by reference to the amount of synthetic greenhouse gas that they contain):
e: specifying the amount of a specified synthetic greenhouse gas that an item or class of leviable goods is to be treated as containing: General
f: specifying accounts and records that must be kept by persons collecting levies, or persons who are or may be liable to pay a levy:
g: specifying the information that persons collecting levies must provide to the EPA and when the information must be provided:
h: prescribing the data or other information that must be collected under section 248(1)(a)
i: providing for any other matters contemplated by this Part, necessary for its administration, or necessary for giving it full effect.
2: Before recommending the making of regulations under subsection (1)(a), the Minister must have regard to international climate change obligations relating to synthetic greenhouse gases.
3: See sections 3A 3B
4: Regulations made under subsection (1)(a) to (e) come into force 3 months after the date of their publication under the Legislation Act 2019
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 246 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 246(2) replaced 23 June 2020 section 190 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 246(3) replaced 23 June 2020 section 190 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 246(4) inserted 23 June 2020 section 190 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 246(4) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 246(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
247: Process for making orders and regulations
Section 247 repealed 23 June 2020 section 191 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Obligations of importers of leviable goods Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
248: Collecting information and keeping records
1: An importer must, in relation to the importation of leviable goods containing a specified synthetic gas,—
a: collect the prescribed data or other prescribed information (which data or information must, if required by regulations, be verified by a person or an organisation recognised by the EPA for the purpose); and
b: keep records of the data or information in the prescribed format (if any); and
c: keep sufficient records to enable the EPA to verify, in relation to any levy year,—
i: the quantity of leviable goods of each class imported; and
ii: the total amount of levy paid on those goods.
2: The records specified in subsection (1) must be kept for a period of at least 7 years after the end of the year to which they relate. Section 248 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
2: Administrative provisions and verification
Subpart 2 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
249: Application of section 88 (Directions to EPA)
Section 88 the ETS participant provisions Part 7 Section 249 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 249 amended 23 June 2020 section 192 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
250: EPA to publish information relating to levies
1: The EPA must publish the following information in relation to leviable goods imported and leviable motor vehicles registered in each reporting year in accordance with subsection (2):
a: for each class of leviable motor vehicle, the total number of persons who registered a vehicle of that class; and
b: for each specified synthetic greenhouse gas used in the air-conditioning system of a leviable motor vehicle, the total number of leviable motor vehicles registered; and
c: for each class of leviable goods, the total number of persons who imported leviable goods of that class; and
d: for each specified synthetic greenhouse gas treated as contained in a class of leviable goods, the total quantity of goods of that class imported; and
e: in respect of each class of leviable motor vehicle, the number of leviable motor vehicles registered; and
f: in respect of each class of leviable goods, the number of consignments imported; and
g: the total quantity of synthetic greenhouse gas treated as contained in the air-conditioning systems of leviable motor vehicles of each class registered; and
h: the total quantity of synthetic greenhouse gas treated as contained in leviable goods of each class imported; and
i: the total amount of levy money collected; and
j: the number of persons who failed to comply with their obligation to pay a levy.
2: The EPA—
a: must publish the information specified in subsection (1) as soon as practicable after the end of the reporting year; and
b: may publish the information specified in subsection (1), in whole or in part, at any other time and in whatever manner and format that the EPA considers appropriate.
3: The EPA is not required to publish the information required under subsection (1)(b), (d), (g), and (h) in respect of an activity if the EPA is satisfied that publishing the information would result in the disclosure of the amount of synthetic greenhouse gas imported by an identifiable person or in motor vehicles registered by an identifiable person, unless—
a: the person to whom the information relates has consented to the publication of the information; or
b: the information is already in the public domain.
4: In this section, reporting year Section 250 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
251: Recognition of verifiers
1: The EPA may, in accordance with regulations made under section 258 section 248(1)(a)
2: A person or an organisation may be recognised by the EPA as able to verify information in respect of 1 or more classes of leviable motor vehicles or leviable goods, or 1 or more items of leviable goods.
3: The EPA may suspend or revoke any recognition given under this section in accordance with regulations made under section 258 Section 251 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
252: Enforcement officers
The EPA may appoint 1 or more enforcement officers under section 93 under this Part (which relates to verification and inquiry about compliance with this Part) Section 252 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 252 amended 23 June 2020 section 193 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
253: Power to require information
1: The EPA or an enforcement officer may, by notice, require a person to provide any information that is reasonably necessary for the purposes of ascertaining whether—
a: a person is complying with this Part; or
b: the EPA should exercise any powers under this Part.
2: The EPA or an enforcement officer may require the person who is to provide the information to also provide a statutory declaration attesting to the truthfulness of the information provided.
3: The information must be provided—
a: in the form specified by the person who requested it; and
b: within any reasonable time specified in the notice; and
c: free of charge. Section 253 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
254: Power to inquire
1: This section applies for the purpose of obtaining information for a purpose specified in section 253(1)
2: The EPA may, by notice, require a person to—
a: appear before it or an enforcement officer at a time and place specified in the notice to give evidence; and
b: produce a document or class of documents in the person's possession or under the person's control.
3: The EPA or an enforcement officer may require the evidence to be given under oath, and either orally or in writing.
4: For the purpose of subsection (3), the EPA or an enforcement officer may administer an oath.
5: Sections 97 98 Section 254 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
255: Inquiry before District Court Judge
1: The EPA may apply in writing to a District Court Judge to hold an inquiry under this section, if the EPA considers it necessary for the purpose of obtaining information for a purpose specified in section 253(1)
2: Section 96(2) to (4)
3: Section 96(5)
4: Sections 97 98 Section 255 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
256: Obligation to maintain confidentiality
1: The EPA and every enforcement officer—
a: must keep confidential all information that comes into their knowledge when performing any function or exercising any power under this Part; and
b: may not disclose any information described in paragraph (a), except in the circumstances described in section 99(2)(b)
2: However, to avoid doubt, the EPA may,—
a: provide or publish general guidance in relation to the operation of this Part; and
b: with the prior approval of the Minister, prepare statistical information and provide it to any person in a form that does not identify any individual. Section 256 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
257: Power of entry for investigation, warrants, etc
1: Sections 100 102 to 106 the ETS participant provisions Part 7
2: Section 101 section 129 132 133 sections 259 261 263 Section 257 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 257 amended 23 June 2020 section 194 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
258: Regulations relating to verifiers
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:
a: prescribing the data or other information that must be verified by a person or an organisation recognised by the EPA under section 251
b: prescribing, for the purposes of section 251
i: the process by which a person or an organisation may be recognised as being able to verify information or calculations for the purposes of section 248
ii: the expertise, technical competence, or qualifications required for recognition as a person or an organisation able to verify data or information; and
iii: any additional—
A: requirements for recognition of an organisation; and
B: restrictions on the employees of the organisation who may carry out the duties of the organisation in respect of the recognition; and
iv: the period for which a person or an organisation may be recognised, and the process for the renewal of recognition; and
v: conditions of recognition, which may include ongoing competency and professional standard requirements, membership of a professional body, and the provision of reports to the EPA; and
vi: the procedure for, and circumstances in which, recognition may be suspended or revoked; and
vii: fees to enable the recovery of the direct and indirect costs of the EPA in recognising a person or an organisation, which may vary depending on the class of persons or organisations, or the type of verification in respect of which recognition is sought.
2: Regulations made under subsection (1) may apply—
a: generally or with respect to different classes of activity, persons, parts of New Zealand, or other specified things; or
b: in respect of the same classes of activity, persons, parts of New Zealand, or other specified things, in different circumstances; or
c: generally or at any specified time of each year.
3: Before recommending the making of regulations under subsection (1)(a), the Minister must have regard to international climate change obligations in respect of the collection of data and information relating to specified synthetic greenhouse gases.
4: See sections 3A 3B
5: Regulations under this section are secondary legislation ( see Part 3 The following table is small in size and has 3 columns that are grouped under the heading Legislation Act 2019 requirements for secondary legislation made under this section. Legislation Act 2019 requirements for secondary legislation made under this section Publication PCO must publish it on the legislation website and notify it in the Gazette LA19 s 69(1)(c) Presentation The Minister must present it to the House of Representatives LA19 s 114 cl 32(1)(a) Disallowance It may be disallowed by the House of Representatives LA19 ss 115 116 This note is not part of the Act. Section 258 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 258(3) replaced 23 June 2020 section 195 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 258(4) inserted 23 June 2020 section 195 Climate Change Response (Emissions Trading Reform) Amendment Act 2020 Section 258(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
3: Offences and penalties
Subpart 3 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Offences relating to synthetic greenhouse gas levy Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
259: Offence in relation to failure to collect data and keep records
1: A person who is an importer commits an offence against this Act if the person, without reasonable excuse, fails to comply with section 248(1)
2: Every person who is convicted of an offence against subsection (1) is liable on
a: the first time the person is convicted of that offence, to a fine not exceeding $8,000:
b: the second time the person is convicted of that offence, to a fine not exceeding $16,000:
c: on every subsequent occasion that the person is convicted of that offence, to a fine not exceeding $24,000. Section 259 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 259(2) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013
260: Failure to provide information or documents
1: A person commits an offence against this Act if the person, without reasonable excuse,—
a: fails to provide information to the EPA or an enforcement officer when required to do so under section 253
b: fails to appear before the EPA or an enforcement officer, or fails to produce any document or documents, when required to do so under section 254
2: Every person who is convicted of an offence against subsection (1) is liable on
a: in the case of an individual, to a fine not exceeding $12,000:
b: in the case of a body corporate, to a fine not exceeding $24,000. Section 260 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 260(2) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013
261: Other offences
1: A person commits an offence against this Act if the person, without reasonable excuse,—
a: refuses to take an oath when required to do so under section 254
b: refuses to answer any question when required to do so under section 254
c: knowingly fails to comply with section 248(1)
d: knowingly provides altered, false, incomplete, or misleading information to the EPA, an enforcement officer, or any other person in respect of any matter in this Part; or
e: wilfully obstructs, hinders, resists, or deceives—
i: the EPA or an enforcement officer exercising a power conferred on that person under this Part; or
ii: the New Zealand Customs Service, a Customs officer, or a Customs Appeal Authority in relation to a power conferred on that person under the Customs and Excise Act 2018
iii: the Registrar of Motor Vehicles in relation to a power conferred on him or her under the Land Transport Act 1998
2: Every person who is convicted of an offence against subsection (1) is liable on
a: in the case of an individual, to a fine not exceeding $25,000:
b: in the case of a body corporate, to a fine not exceeding $50,000. Section 261 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 261(1)(e)(ii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 261(2) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013
262: Offence for breach of confidentiality
A person who knowingly contravenes section 256
a: imprisonment for a term not exceeding 6 months:
b: a fine not exceeding $15,000. Section 262 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 262 amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013
263: Evasion
1: A person commits an offence against this Act if the person, with intent to deceive and for the purpose of either obtaining any material benefit or avoiding any material detriment,—
a: fails to comply with section 248(1)
b: fails to provide information to—
i: the EPA, an enforcement officer, or any other person when required to do so under this Part; or
ii: the New Zealand Customs Service, a Customs officer, or a Customs Appeal Authority when required to do so under the Customs and Excise Act 2018
iii: the Registrar of Motor Vehicles when required to do so under the Land Transport Act 1998
c: provides altered, false, incomplete, or misleading information to the Minister or the EPA or any other person in respect of a matter in this Part.
2: Every person who is convicted of an offence against subsection (1) is liable on conviction
a: imprisonment for a term not exceeding 5 years:
b: a fine not exceeding $50,000. Section 263 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 263(1)(b)(ii) amended 1 October 2018 section 443(3) Customs and Excise Act 2018 Section 263(2) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013 Offence in relation to release of synthetic greenhouse gases Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
264: Offence in relation to release of synthetic greenhouse gases
1: A person commits an offence against this Act if the person, in the course of undertaking an activity described in subsection (2), knowingly and without lawful justification or excuse releases any hydrofluorocarbon, perfluorocarbon, or sulphur hexafluoride into the atmosphere.
2: The activities are installing, operating, servicing, modifying, dismantling, or disposing of any electrical switchgear, refrigeration or air-conditioning equipment, or other heat-transfer medium.
3: A person who is convicted of an offence against subsection (1) is liable on
a: in the case of an individual, to a fine not exceeding $25,000:
b: in the case of a body corporate, to a fine not exceeding $50,000. Section 264 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 264(3) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013
265: Defence for release of synthetic greenhouse gas
The circumstances in which a person described in section 264(1) Section 265 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Proceedings and liability Heading inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
266: Limitation period for commencement of proceedings
Despite section 25 the limitation period
a: section 260 261(1)(a), (b), or (e) ends on the date that is date on which the offence was committed
b: section 259 261(1)(c) or (d) ends on the date that is date on which the offence was committed Section 266 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 266 amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013 Section 266(a) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013 Section 266(b) amended 4 October 2013 regulation 3(1) Criminal Procedure (Consequential Amendments) Regulations 2013
267: Evidence in proceedings
1: In any proceedings for an offence against this Part, a certificate or document (including an electronic copy) of any of the kinds described in subsection (2)—
a: is admissible in evidence; and
b: in the absence of proof to the contrary, is sufficient evidence of the matter stated in the certificate or the document, as the case may require.
2: The kinds of certificate or document are—
a: a certificate purporting to be signed by a delegate of the EPA to the effect that, at any specified date or during any specified period, a named person is or was, or is not or was not, an enforcement officer or a person or an organisation recognised under section 251
b: a certificate purporting to be signed by any person authorised to delegate to any person, or to persons of any kind or description, the exercise of any power or the performance of any function under this Part, stating that the person has delegated—
i: the exercise of the power or the performance of the function specified in the certificate to the person specified in the certificate; or
ii: the exercise of the power or the performance of the function specified in the certificate to persons of a kind or description specified in the certificate, and that a named person specified in the certificate is a person of that kind or description.
3: The production of a certificate or document purporting to be a certificate to which subsection (2) applies is prima facie evidence that it is such a certificate or document, without proof of—
a: the signature of the person purporting to have signed the document; or
b: the document’s nature. Section 267 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
268: Liability of body corporate, directors, managers of companies, companies, and persons for actions of directors, agents, and employees
1: Sections 139 140 Part 4 Part 7
2: Section 141 sections 132(1)(c) to (f) 133 section 261(1)(c) or (d) 263 Section 268 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
4: Other matters
Subpart 4 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012
269: Review of operation and effectiveness of levy
1: The Minister may, at any time, initiate a review of the operation and effectiveness of the synthetic greenhouse gas levy.
2: A review may be undertaken by any method that the Minister considers appropriate.
3: Without limiting the Minister's discretion under subsection (1), the Minister may appoint an independent panel—
a: to conduct a review under subsection (1); and
b: to report in accordance with the terms of reference.
4: If the Minister appoints a panel, the Minister must—
a: specify in writing the terms of reference for the review; and
b: make the report of the panel publicly available; and
c: present a copy of the report to the House of Representatives.
5: If the Minister initiates a review but does not appoint a panel, the Minister must—
a: consult persons (or their representatives) who appear to the Minister likely to have an interest in the review; and
b: consult representatives of iwi and Māori who appear to the Minister to be likely to have an interest in the review; and
c: specify written terms of reference for the review; and
d: establish a procedure that the Minister is satisfied is appropriate, fair in the circumstances, and in accordance with the terms of reference.
6: The Minister may, but need not, initiate a review under subsection (1) at the same time as he or she initiates a review under section 160 Section 269 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 269(4)(b) replaced 23 June 2020 section 196 Climate Change Response (Emissions Trading Reform) Amendment Act 2020
270: Appointment and conduct of independent panel
1: If the Minister appoints an independent panel under section 269
a: ensure that there is no fewer than 3 but not more than 7 members; and
b: ensure that the majority of the members are not employees under the Public Service Act 2020
c: consider whether the members have, in the Minister's opinion, the appropriate knowledge, skill, and experience to conduct the review, including knowledge, skill, and experience of—
i: this Act; and
ii: international climate change obligations and any other relevant international agreement; and
iii: the operation of the synthetic greenhouse gas levy; and
d: appoint 1 member as the chairperson of the panel.
2: The Minister must, by written notice to the panel, specify the terms of reference for the review to be conducted by the panel.
3: A review panel must complete a draft report on the review and provide the report to the Minister by the date set out in the terms of reference.
4: The review panel must—
a: allow the Minister at least 10 working days within which to respond to and comment on the contents of the draft report; and
b: after considering the Minister's response and comments (if any), prepare a final report and provide it to the Minister by the date set out in the terms of reference.
5: In conducting a review, the review panel—
a: must establish a procedure that is appropriate, fair in the circumstances, and in accordance with the terms of reference of the review; and
b: must consult persons (or their representatives) that appear to the panel likely to have an interest in the review; and
c: may call for submissions.
6: If the Minister initiates a review under section 269(1) section 160 Section 270 inserted 1 January 2013 section 100 Climate Change Response (Emissions Trading and Other Matters) Amendment Act 2012 Section 270(1)(b) amended 7 August 2020 section 135 Public Service Act 2020 Section 270(1)(c)(ii) replaced 23 June 2020 section 197 Climate Change Response (Emissions Trading Reform) Amendment Act 2020