1: Title
This Act is the Climate Change Response (Emissions Trading Reform) Amendment Act 2020.
2: Commencement
This Act comes into force as follows:
a: subpart 1 Part 1 subpart 1 Part 2
b: subpart 2 Part 1 subpart 2 Part 2
c: subpart 3 Part 1
d: subpart 4 Part 1 subpart 3 Part 2
e: subpart 5 Part 1 subpart 4 Part 2
3: Principal Act
This Act amends the Climate Change Response Act 2002 principal Act 2020-06-23 Climate Change Response Act 2002 (a) subpart 1 of Part 1 and subpart 1 of Part 2 come into force on the day after Royal assent 2020-11-30 Climate Change Response Act 2002 (b) subpart 2 of Part 1 and subpart 2 of Part 2 come into force on 30 November 2020 2021-01-01 Climate Change Response Act 2002 (c) subpart 3 of Part 1 comes into force on 1 January 2021 2023-01-01 Climate Change Response Act 2002 (d) subpart 4 of Part 1 and subpart 3 of Part 2 come into force on 1 January 2023 2024-01-01 Climate Change Response Act 2002 (e) subpart 5 of Part 1 and subpart 4 of Part 2 come into force on 1 January 2024
1: Amendments to principal Act
1: Amendments that commence on day after Royal assent
4: Section 2A amended (Application of Schedules 3 and 4)
1: In section 2A(1)(a)(ii) Schedule 3 (for fertiliser–farmer activities or animals–farmer activities)
2: In section 2A(1)(b) 221 219
3: In section 2A(3) Subpart 1 of
4: In section 2A(4) Part 3 Subpart 1 of
5: Replace section 2A(5) and (6)
5A: Subpart 1 of Part 5 of Schedule 3 (for fertiliser–processor activities)—
a: applies on and after 1 January 2011; but
b: is affected by section 219
i: starting on 1 January 2011; and
ii: ending on a date determined by that section (which may be 31 December 2024 or another date as early as 1 July 2022).
5B: Subpart 2 of Part 5 of Schedule 3 (for fertiliser–farmer activities)—
a: applies on and after a date appointed by the Governor-General by Order in Council ( see section 2B
b: is affected by section 219
5C: Subpart 3 of Part 5 of Schedule 3 (for animals–processor activities)—
a: applies on and after 1 January 2011; but
b: is affected by section 219
i: starting on 1 January 2011; and
ii: ending on a date determined by that section (which may be 31 December 2024 or another date as early as 1 July 2022).
5D: Subpart 4 of Part 5 of Schedule 3 (for animals–farmer activities)—
a: applies on and after 1 January 2024 or a later date appointed by the Governor-General by Order in Council ( see section 2B
b: is affected by section 219
6: Replace section 2A(8) and (9)
8: Part 1A
5: Sections 2B and 2C replaced
Replace sections 2B 2C
2B: Orders in Council in relation to subparts 2 and 4 of Part 5 of Schedule 3 (Agriculture)
1: This section relates to an Order in Council made under section 2A(5B) or (5D) subpart
2: The order must—
a: be made on the recommendation of the Minister; and
b: appoint a date that is 1 January in a year; and
c: be made at least 1 year before the date appointed by the order.
3: The order may provide that the subpart applies, on and after the date appointed by the order,—
a: specifically to 1 or more classes of person who carry out an activity listed in the subpart; or
b: generally, to all persons who carry out an activity listed in the subpart.
4: Before recommending the making of the order, the Minister must comply with subsections (5) and (6)
5: The Minister must have regard to—
a: the need for the EPA to be able to verify information contained in emissions returns of the persons who will become participants in an activity listed in the subpart by operation of the order; and
b: the likelihood that, as a result of becoming participants by operation of the order, persons carrying out an activity listed in the subpart will reduce their emissions; and
c: the desirability of minimising—
i: the compliance and administration costs of persons who will become participants in an activity listed in the subpart by operation of the order; and
ii: the administration costs of the Crown in administering the emissions trading scheme.
6: The Minister must consult, or be satisfied that the chief executive has consulted, the persons (or representatives of those persons) that appear to the consulter likely to have an interest in the order.
2C: Effect of overlapping application of subparts of Part 5 of Schedule 3 (Agriculture)
1: This section applies—
a: to the fertiliser–processor and fertiliser–farmer subparts (of Part 5 of Schedule 3) at any time that those subparts apply at the same time (because of an Order in Council made under section 2A(5B)
b: to the animals–processor and animals–farmer subparts (of Part 5 of Schedule 3) on and after—
i: 1 January 2024; or
ii: if an Order in Council is made under section 2A(5D)
2: If this section applies, then regulations made under section 163(1) may require—
a: a person carrying out a fertiliser–processor activity and a person carrying out a fertiliser–farmer activity to—
i: collect data or other information relating to the same synthetic fertiliser; and
ii: calculate emissions relating to the same synthetic fertiliser; or
b: a person carrying out an animals–processor activity and a person carrying out an animals–farmer activity to—
i: collect data or other information relating to the same ruminant animals, pigs, horses, or poultry; and
ii: calculate emissions relating to the same ruminant animals, pigs, horses, or poultry.
3: However,—
a: on and after the first day in respect of which the person carrying out a fertiliser–farmer activity is required to surrender units for emissions relating to the fertiliser, this Act no longer applies to the person carrying out the fertiliser–processor activity in relation to that fertiliser; and
b: on and after the first day in respect of which the person carrying out an animals–farmer activity is required to surrender units for emissions relating to the ruminant animals, pigs, horses, or poultry, this Act no longer applies to the person carrying out the animals–processor activity in relation to those ruminant animals, pigs, horses, or poultry.
4: If an Order in Council is made under section 2A(5B) section 2A(5A)
5: On the first day on which, under section 2A(5D) section 2A(5C)
6: If, by operation of subsection (3), (4), or (5)
a: section 54(4) applies, with any necessary modifications, to any person who has ceased, by operation of that subsection, to be a participant in respect of that activity; and
b: the person is not required to comply with section 59, but the EPA may, for the purposes of section 59(2), determine that the person has ceased to carry out the activity.
7: In this section and sections 2A, 2B, 216, and 219 animals–farmer subpart animals–farmer activity animals–processor subpart animals–processor activity fertiliser–farmer subpart fertiliser–farmer activity fertiliser–processor subpart fertiliser–processor activity
6: Section 3 amended (Purpose)
1: In section 3(1)(a) and the Protocol , the Protocol, and the Paris Agreement
2: In section 3(1)(a)(i) period starting on 1 January 2008 and ending on 31 December 2012
3: In section 3(1)(a)(ii) Article 7 of the Protocol and Article 12 of the Convention Article 12 of the Convention, Article 7 of the Protocol, and Article 13 of the Paris Agreement
4: In section 3(1)(b)(i) and the Protocol , the Protocol, and the Paris Agreement
5: Replace section 3(1)(b)(ii)
ii: assisting New Zealand to meet its 2050 target and emissions budgets:
6: In section 3(1)(c)(i) and the Protocol , the Protocol, and the Paris Agreement
7: Replace section 3(1)(c)(ii)
ii: assisting New Zealand to meet its 2050 target and emissions budgets.
8: Repeal section 3(3)
7: Section 3A amended (Treaty of Waitangi (Te Tiriti o Waitangi))
1: Repeal section 3A(a)
2: Replace section 3A(b) and (c)
b: with respect to the following provisions (which relate to powers to make regulations or Orders in Council or to give notice in the Gazette Gazette
i: section 2A(5B) or (5D)
ii: section 30G(1)(b)(i), (c), (j), or (k) (dealings with units under Part 2):
iii: section 30GA
iv: section 30GB
v: section 30GD
vi: section 30M
vii: section 60 (exemptions in respect of activities listed in Schedule 3):
viii: section 60A
ix: section 84A or 84B
x: section 161D(1)(a) (notice specifying description of activity in relation to industrial allocations), unless the only purpose of the notice is to require persons to provide electricity-related contracts or any information related to those contracts:
xi: section 161G (eligible agricultural activities):
xii: section 162 (adding further activity to Part 2 of Schedule 4):
xiii: section 163 (methodologies and verifiers):
xiv: section 164 (unique emissions factors):
xv: section 168(1)(nb)
xvi: section 186F (pre-1990 offsetting forest land):
xvii: section 194C
xviii: section 196F
xix: section 244 (exemptions from payment of synthetic greenhouse gas levy):
xx: section 246(1)(a) to (e) (synthetic greenhouse gas levy):
xxi: section 258 (verifiers):
3: Repeal section 3A(e) to (j)
8: New section 3B inserted (Consultation about certain regulations, orders, and notices)
After section 3A
3B: Consultation about certain regulations, orders, and notices
1: The Minister must comply with this section before recommending the making of regulations or an Order in Council, or giving notice in the Gazette
a: section 30G(1)(b)(i), (c), (j), or (k) (dealings with units under Part 2):
b: section 30GA
c: section 30GB
d: section 30GD
e: section 30M
f: section 60 (exemptions in respect of activities listed in Schedule 3), unless the Crown has signed a negotiated greenhouse agreement with the person exempted:
g: section 60A
h: section 84A or 84B
i: section 161D(1)(a) (notice specifying description of activity in relation to industrial allocations), unless the only purpose of the notice is—
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:
j: section 161G(1)(a)(ii) (allocative baseline of eligible agricultural activity):
k: section 162 (adding further activity to Part 2 of Schedule 4):
l: section 163 (methodologies and verifiers):
m: section 164 (unique emissions factors):
n: section 168(1)(nb)
o: section 186F (pre-1990 offsetting forest land):
p: section 194C
q: section 196F
r: section 216
s: section 233(4)(a) (methodology for specifying price of carbon):
t: section 244 (exemptions from payment of synthetic greenhouse gas levy):
u: section 246(1)(a) to (e) (synthetic greenhouse gas levy):
v: section 258 (verifiers).
2: The Minister must also comply with this section before recommending the revocation of an Order in Council under section 60, 60A
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, or 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) (dealings with units under 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.
9: Section 4 amended (Interpretation)
1: In section 4(1) allocation plan approved overseas unit assigned amount unit Australian eligible industrial activity carbon dioxide equivalent carry-over CDM registry certified emission reduction unit clean development mechanism project commitment period reserve conversion account convert designated operational entity elect eligible land emission reduction unit emissions budget period emissions return executive board expire expiry first commitment period fishing allocation plan greenhouse gas initial assigned amount international transaction log joint implementation project Kyoto units long-term certified emission reduction replacement account long-term certified emission reduction unit New Zealand Greenhouse Gas Inventory non-compliance cancellation account overseas registry Paris Agreement Party post-1989 forest land pre-1990 forest land allocation plan previous commitment period relevant commitment period removal unit retire retirement account sink cancellation account subsequent commitment period supervisory committee temporary certified emission reduction replacement account temporary certified emission reduction unit unit
2: In section 4(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 auction carbon dioxide equivalent emissions budget period emissions return
a: means—
i: an annual emissions return submitted under section 65; or
ii: a quarterly emissions return submitted under section 66; or
iii: a final emissions return submitted under section 118; or
iv: an emissions return submitted under a provision of Part 5
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; and
ii: the EPA’s assessment under section 121 of the matters that should have been in an emissions return; and
c: includes an emissions return that shows nil liability emissions trading scheme ETS participant provisions 5D forestry activity
a: an activity listed in Part 1 or 1A of Schedule 3 (deforesting certain pre-1990 forest land or pre-1990 offsetting forest land); or
b: an activity listed in Part 1 of Schedule 4 (forestry on post-1989 forest land) forestry classification section 196 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 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 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 New Zealand Greenhouse Gas Inventory 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 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 of Schedule 3 has been satisfied:
iv: land that was pre-1990 forest land, other than exempt land, that was deforested on or after 1 January 2013 and offset by pre-1990 offsetting forest land:
v: land that was pre-1990 offsetting forest land that was deforested after 1 January 2013 and in respect of which any liability to surrender units arising in relation to an activity listed in Part 1A of Schedule 3 has been satisfied:
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 of Schedule 3, had the land not been exempt land, have been surrendered under section 187(2):
vii: land that was exempt land that has been deforested more than 8 years ago; and
b: is not offsetting forest land or pre-1990 offsetting forest land pre-1990 forest land allocation plan unit
3: In section 4(1) account number section 15(1)(a) section 15(1)
4: In section 4(1) eligible person
d: the pre-1990 forest land allocation plan
5: In section 4(1) exempt land
i: under section 183 or 183B
6: In section 4(1) general cancellation account other than sink activities being a source of emissions or a determination that New Zealand is not in compliance with Article 3.1 of the Protocol
7: In section 4(1) holding account that have not been retired, surrendered, converted, or cancelled
8: In section 4(1) surrender section 18CA(3) or (4) section 18CA(2)
9: In section 4(2) or Protocol , the Protocol, or the Paris Agreement
10: In section 4(6) sections 62, 65, 66, 67, 118, 187, 189, 191, 192, and 193, activity activities a provision of this Act that relates to a participant who submits an emissions return that shows nil liability, activity activities
10: New section 4AA inserted (Greenhouse gas definition may be amended to add gases)
After section 4
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 to add 1 or more other gases; and
b: if necessary, amend Schedule 1AA to set out transitional provisions for the addition.
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.
11: Section 5D amended (Membership of Commission)
Replace section 5D(1)(c)
c: no fewer than 3, and no more than 7, other members.
12: Section 5J amended (Commission’s functions)
1: After section 5J(f)
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
2: After section 5J(h)
ha: to provide advice to the Minister (as required by section 220
i: meeting the primary sector climate change commitments set out in Schedule 5
ii: participants in the activities listed in subpart 4 of Part 5 of Schedule 3 (for animals–farmer participants) being ready to start complying with reporting and surrender obligations under this Act:
13: Section 5N amended (Consultation)
Replace section 5N(2)(a)
a: make publicly available, and invite submissions on, discussion papers and draft reports; and
14: Section 5ZA amended (Commission to advise Minister)
Replace section 5ZA(4)(a)
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
15: Section 5ZG amended (Requirement for emissions reduction plan)
Replace section 5ZG(2)
2: The plan must be prepared and made publicly available by the deadlines specified in section 5ZI.
16: Section 5ZH amended (Commission to advise on emissions reduction plans)
Replace section 5ZH(2)
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
17: Section 5ZI amended (Minister to prepare and make emissions reduction plan publicly available)
1: Replace section 5ZI(2)
2: The Minister must—
a: prepare the plan after the relevant emissions budget has been notified under section 5ZD; but
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; and
b: must do the following 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.
2: Repeal section 5ZI(4)
18: Section 5ZL amended (Commission to report at end of emissions budget period)
1: In section 5ZL(1) in the next emissions budget for that
2: Replace section 5ZL(1)(c)
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).
19: New subpart 6 of Part 1B inserted
After section 5ZO
6: Recommendations about making regulations
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 and 30GC section 30GC(5)(e)
ii: its other duties ( see
c: be given to the Minister a reasonable time before the Minister is required to recommend the making of the regulations.
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)
20: Section 6 amended (Minister of Finance may direct Registrar regarding establishment of Crown holding accounts and carry out trading activities with respect to units)
1: In section 6(b) overseas registry or international transaction body
2: In section 6(d) , with any person (including any other Party)
21: Section 6A amended (Minister's power to sell by auction)
1: In section 6A section 30G(1)(p) section 30GA
2: In section 6A(a) prescribed individual limit and
3: After section 6A(b)
c: direct the Registrar to transfer units to any holding account in the Registry for the purposes of selling New Zealand units by auction.
22: Section 7 amended (Minister of Finance may give directions to Registrar regarding accounts and units)
1: Repeal section 7(1)(a)(i), (ii), (iv), (v), (vi), and (viii)
2: Replace section 7(1)(b) to (e)
b: transfer units between holding accounts, subject to any prescribed restriction or prohibition.
3: Replace section 7(2)(b)(i)
i: the transfer is required to comply with international climate change obligations; or
4: Repeal section 7(3)
23: Section 9 amended (Minister of Finance may obtain information from inventory agency and Registrar)
In section 9(b)(ii) retired, replaced, cancelled, and carried-over replaced, and cancelled
24: Section 10 replaced (Purpose of Registry)
Replace section 10
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.
25: Section 13 amended (Registrar may refuse access to, or suspend operation of, Registry)
In section 13(d) New Zealand's international obligations international climate change obligations
26: Section 14 replaced (Registrar must give effect to directions)
Replace section 14
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.
27: Section 15 amended (Registrar to allocate unique numbers)
1: Replace section 15(1)
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.
2: Repeal section 15(2)
28: Sections 16 and 17 repealed
Repeal sections 16 17
29: Section 18 amended (Form and content of unit register)
1: Replace section 18(2)(b)
b: the particulars of transactions, including, but not limited to, the issue, transfer, replacement, surrender, conversion, and cancellation of units; and
2: In section 18(3)(a) retirement, replacement, surrender, carry-over, replacement, surrender,
3: In section 18(3)(b)(ii) registries or international transaction bodies
30: Section 18B amended (Closing holding accounts)
Repeal section 18B(2)(b)(ii)(A)
31: Section 18C amended (Transfer of units)
1: In section 18C(1)(b) registry or international transaction body
2: Repeal section 18C(3)
32: Section 18CA replaced (Effect of surrender, retirement, cancellation, and conversion)
Replace section 18CA
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 or 7 or a direction of the EPA given under section 124.
33: Sections 18CB, 18CC, and 18CD repealed
Repeal sections 18CB 18CC 18CD
34: Section 18D amended (Succession)
1: Replace section 18D(2)(b)
b: the Registrar has registered the successor as the account holder.
2: Replace section 18D(3)
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) of the Companies Act 1993,—
a: subsections (2) and (3)
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) of that Act, direct the Registrar to transfer the units to a Crown holding account and close the account holder’s holding account.
35: Section 19 repealed (Retirement of Kyoto units by the Crown)
Repeal section 19
36: Section 20 amended (Transactions must be registered)
1: In section 20(1) retire,
2: In section 20(2)(a) the international transaction log an international transaction body
37: Section 21 repealed (Registration procedure for Kyoto units)
Repeal section 21
38: Section 21AA amended (Registration procedure for New Zealand units and approved overseas units)
1: In section 21AA(1) a Minister authorised to give the direction under a provision of this Act or the EPA the EPA or a Minister authorised to give the direction under this Act
2: Replace section 21AA(1)(b)
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
3: In section 21AA(1)(c) registry or international transaction body
4: In section 21AA(1)(c)(ii)(A) the Minister or the EPA the EPA or the Minister
5: In section 21AA(2) an overseas registry or international transaction body
6: In section 21AA(2) the overseas registry it
7: In section 21AA(2)(b) registry or international transaction body
8: In section 21AA(2)(c)(i) the Minister or the EPA who gave the direction the EPA or the Minister who gave the direction
9: In section 21AA(3) from the overseas registry or international transaction body
10: In section 21AA(3)(c) registry or international transaction body
39: Section 21A amended (Electronic registration)
In section 21A a provision of
40: Section 21B amended (Defective applications)
Replace section 21B(1)
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.
41: Section 23 repealed (Receiving Kyoto units from overseas registries)
Repeal section 23
42: Section 23A amended (Receiving New Zealand units and approved overseas units from overseas registries)
1: In the heading to section 23A registries or international transaction bodies
2: In section 23A(1), (2), and (3) overseas registry or international transaction body
43: Section 24 amended (Priority of registration)
In section 24(1) a provision of
44: Section 25 amended (Correction of unit register)
1: In section 25(1)(a) the Minister or the EPA who gave the direction the EPA or the Minister who gave the direction
2: Replace section 25(3)(c)(ii)
ii: an international transaction body (if required to do so); and
45: Section 27 amended (Information accessible by search)
1: Replace section 27(1)(c)
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
2: Repeal section 27(2)(a) and (b)
3: Replace section 27(2)(h) and (i)
h: the total quantity of each type of approved overseas units issued during that year; and
4: In section 27(2)(j) to the Registry from overseas registries into the Registry
5: In section 27(2)(j)(iii) overseas registries registry or body
6: In section 27(2)(j)(iii)(A) and (B) overseas registry registry or body
7: In section 27(2)(k) from the Registry to overseas registries out of the Registry
8: In section 27(2)(k)(iii) overseas registries registry or body
9: In section 27(2)(k)(iii)(A) and (B) overseas registry registry or body
10: Replace section 27(2)(n), (o), and (p)
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
11: In section 27(2)(q) to the to each
12: Repeal section 27(2)(r)
13: Replace section 27(2)(u), (v), and (w)
u: the total quantity of each type of unit into which New Zealand units are converted in accordance with regulations made under this Act.
14: Replace section 27(3)(a) and (b)
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.
46: Section 30A amended (The Crown or Registrar not liable in relation to searches in certain cases)
Replace section 30A(b)(i)
i: an international transaction body; or
47: Sections 30B to 30D and cross-heading repealed
Repeal sections 30B to 30D
48: Section 30E repealed (Conversion of New Zealand units into designated assigned amount units for sale overseas or cancellation)
Repeal section 30E
49: Section 30G amended (Regulations relating to Part 2)
1: In section 30G(1)(b)(i)(A) and (C) registry or international transaction body
2: After section 30G(1)(b)(ii)
iii: the registration of a successor as an account holder:
3: Repeal section 30G(1)(d)
4: In section 30G(1)(e)(vi)(B) the international transaction log an international transaction body
5: In section 30G(1)(f) and (i) Part or regulations made under this Part
6: After section 30G(1)(i)
ia: prescribing, for the purpose of the definition of international transaction body
7: In section 30G(1)(j) and to which units may be transferred to and or to which units may be transferred to or
8: In section 30G(1)(k) overseas registry or international transaction body
9: In section 30G(1)(n) the terms of the Convention and the Protocol international climate change obligations
10: In section 30G(1)(n) the Convention or the Protocol international climate change obligations
11: Repeal section 30G(1)(p) and (q)
12: In section 30G(4) the Convention and the Protocol international climate change obligations
50: Sections 30GA to 30H replaced
Replace sections 30GA to 30H
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 to sell New Zealand units by auction.
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.
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.
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) are not counted as New Zealand units available by other means; and
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)
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 at which units may 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)
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)
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)
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 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.
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.
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 auction monitor subsection (2)(a) auction participant
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.
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)
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.
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.
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) (dealings with units under Part 2):
b: section 30GA
c: section 30GB
d: section 30GD
2: See 3B
3: The regulations come into force—
a: 3 months after the date of their notification in the Gazette
b: if the Minister considers it is in the national interest that they be made urgently, on any earlier date specified in the regulations.
51: Section 30I amended (Incorporation by reference in regulations made under section 30G)
1: In section 30I(1)(a) and (b)(i) and (ii) the Convention or the Protocol international climate change obligations
2: In section 30I(4) sections 163 to 165, 167, and 168 a relevant empowering section
52: New section 30IA inserted (Minister must obtain greenhouse gas reductions to match certain excess units)
After section 30I
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 activities, or provided to participants under negotiated greenhouse agreements, in that period.
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.
53: Section 30J amended (Signing false declaration with respect to regulations made under section 30G)
1: In the heading to section 30J section 30G or 30GA
2: In section 30J section 30G or 30GA
54: New subpart 3 of Part 2 inserted
After section 30K
3: Infringement offences
30L: Meaning of infringement offence and infringement fee
In this subpart,— infringement fee infringement offence
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), and 264; and
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)
3: A person may be prosecuted for, and convicted of, an offence against any provision referred to in subsection (1)(a)(i)
30N: Consultation and commencement for regulations about infringement offences
1: This section applies to regulations made under section 30M
2: See 3B
3: The regulations come into force 3 months after the date of their notification in the Gazette
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 of the Criminal Procedure Act 2011; or
b: be issued with an infringement notice under section 30Q
2: Proceedings commenced in the way described in subsection (1)(a)
3: See
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) applies in relation to the appointment.
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.
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 of the Summary Proceedings Act 1957.
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.
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) of the Summary Proceedings Act 1957:
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)
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)
30U: Payment of infringement fees
All infringement fees paid in respect of infringement offences must be paid into a Crown Bank Account.
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.
55: Section 31 amended (Meaning of greenhouse gas)
1: In section 31 subpart Part
2: In section 31 , but does not include a gas that is covered by the Montreal Protocol on Substances that Deplete the Ozone Layer
56: Section 32 amended (Primary functions of inventory agency)
1: After section 32(1)(b)(i)
ia: any report of information by New Zealand under Article 13 of the Paris Agreement; and
2: Repeal section 32(1)(b)(iii)
57: Section 35 amended (Publication)
In section 35 and its national communication (or periodic report) in electronic form by placing the report , national inventory report, and national communication (or periodic report) in electronic form by placing the reports
58: Section 36 amended (Authorisation of inspectors)
In section 36(1)(c) New Zealand Pastoral Agriculture Research Institute AgResearch
59: Section 48 amended (Signing false declaration in respect of regulations made under section 50)
In section 48 section 50 and that is false
60: Section 49 amended (Reporting)
In section 49 under the Convention and the Protocol in accordance with international climate change obligations
61: Section 50 amended (Regulations)
1: In section 50(1)(j) the terms of the Convention and the Protocol international climate change obligations
2: In section 50(1)(j) with the Convention or the Protocol with international climate change obligations
3: In section 50(2) If recommended by the Minister, the Governor-General may, by Order in Council The Governor-General may, by Order in Council made on the recommendation of the Minister
4: In section 50(2)(k) the Convention or the Protocol international climate change obligations
5: In section 50(3) If recommended by the Minister, the Governor-General may, by Order in Council The Governor-General may, by Order in Council made on the recommendation of the Minister
6: Replace section 50(7)(b) and (c)
b: international climate change obligations.
7: Replace section 50(8)
8: The Governor-General may, by Order in Council, amend or replace Schedule 1, 2, or 2A
62: Section 51 amended (Incorporation by reference in regulations made under section 50)
1: In section 51(1)(a) and (b)(i) and (ii) the Convention or the Protocol international climate change obligations
2: In section 51(4) sections 163 to 165, 167, and 168 a relevant empowering section
63: Section 52 amended (Inventory agency must report to Minister on certain matters before certain regulations are made)
1: In section 52(3)(b) make, as he or she thinks fit, recommendations to the Governor-General to make recommend the making of
2: In section 52(4) obligations under the Convention or the Protocol international climate change obligations
64: Section 53 repealed (Consequential amendments)
Repeal section 53
65: Section 54 amended (Participants)
1: In section 54(1)(a)(i) and (2) section 180, 186I,
2: In section 54(1)(b)(ii) section 192 Part 5
3: In section 54(2) this Part or Part 5 the ETS participant provisions
66: Section 55 amended (Associated persons)
In section 55(3)(b) this Part and Part 5 the ETS participant provisions
67: Section 56 amended (Registration as participant in respect of activities listed in Schedule 3)
After section 56(4)
5: To avoid doubt, a person does not carry out an activity listed in Schedule 3, and so does not have to notify the EPA under subsection (1)(a), merely because they—
a: deforest pre-1990 forest land that may not be treated as deforested under section 179A(1)(b); or
b: deforest land that has ceased to be forest land (and pre-1990 forest land) because it has been offset by pre-1990 offsetting forest land.
68: Section 57 amended (Applicant to be registered as participant in respect of activities listed in Schedule 4)
1: In section 57(4)(b) this Part or Part 5 the ETS participant provisions
2: Replace section 57(6)
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.
3: In section 57(8) section 198(2)(b), or 209(2)(b) section 198(2) or 209(2)
69: Section 58 amended (Removal from register of participants in respect of activities listed in Schedule 4)
1: Repeal section 58(3)(c)
2: In section 58(4) section 188(7)(a)(ii), 198(3)(b), or 209(3)(b) section 188(7), 198(3), or 209(3)
70: Section 59 amended (Removal from register of participants in respect of activities listed in Schedules 3 and 4)
In section 59(2)(b) , and any other person specified in section 188(7)(a)(i), 198(3)(a), or 209(3)(a), as the case may require,
71: New section 59A inserted (Removal from register if participant never carried out activity)
After section 59
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.
72: Section 60 amended (Exemptions in respect of activities listed in Schedule 3)
1: After section 60(1A)
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: In section 60(2)(a), and (3)(a) and (b) greenhouse gas emissions trading scheme established under this Act emissions trading scheme
3: In section 60(4) this Part and Part 5 the ETS participant provisions
4: Replace section 60(5)
5: See 3B
5: In section 60(6) make a recommendation for recommend
6: Repeal section 60(7) and (8)
73: New sections 60A and 60B inserted
After section 60
60A: Exemption for participants in activity listed in Part 1 of Schedule 4
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 Part 1 of Schedule 4 from any provision or provisions of—
a: Part 4 or 5; or
b: regulations made for the purposes of Part 4 or 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 3B
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 or 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 apply to material incorporated by reference in the order as if—
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 or 60A
b: sections 173(2)(c) and (4)(b) and 174(1)(d) required a targeted notice instead of a notice in the Gazette
5: In subsection (4)(b) targeted notice
74: Section 61 amended (Requirement to have holding account)
In section 61(1)(a) and (b) this Part or Part 5 the ETS participant provisions
75: Section 63 amended (Liability to surrender units to cover emissions)
After section 63(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.
76: Section 64 amended (Entitlement to receive New Zealand units for removal activities)
1: After section 64(1)
1A: Subsection (1) does not apply to removals for which a participant is not entitled to receive units under section 197
2: Replace section 64(3)
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 requiring the participant to provide information in respect of any matter contained in the emissions return; or
b: to the extent that subsection (4)
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
77: New section 64A inserted (Transfer of units allocated, or entitled to be received or reimbursed, less any units that must be surrendered or repaid)
After section 64
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)
b: any specified units under subsection (3)(a) or (b)
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).
78: Section 65 amended (Annual emissions returns)
1: In section 65(2A)(a) do does
2: Replace section 65(4) and (5)
4: Following the submission of an annual emissions return under subsection (1),—
a: a participant (other than a participant carrying out an activity listed in Part 5 of Schedule 3) must, by 31 May, surrender the number of units listed in the participant’s assessment under subsection (2)(c)(i) or recorded under subsection (2A)(b); and
b: a participant carrying out an activity listed in Part 5 of Schedule 3 must, by 31 May, surrender the number of units listed in the participant’s assessment under subsection (2)(c)(i) less the number of units allocated to the participant for the year to which the assessment relates under section 86BA
5: To avoid doubt, a person does not carry out an activity listed in Schedule 3, and so does not have to submit an annual emissions return under subsection (1)(a)
a: deforest pre-1990 forest land that may not be treated as deforested under section 179A(1)(b); or
b: deforest land that has ceased to be forest land (and pre-1990 forest land) because it has been offset by pre-1990 offsetting forest land.
79: Section 68 amended (Issuing New Zealand units)
1: Replace section 68(2)(b)(i) and (ii)
ii: international climate change obligations; and
2: In section 68(2)(b)(iii) greenhouse gas emissions trading scheme established under this Act emissions trading scheme
3: In section 68(2)(c) 1 January 2013, and if there is no subsequent commitment period specified or determined under the Protocol or no successor international agreement to the Protocol 1 January 2031, and if the Paris Agreement does not provide for a commitment period that starts on that date
4: Replace section 68(2)(c)(iii)
iii: international climate change obligations; and
80: Section 69 repealed (Notification of intention regarding New Zealand units)
Repeal section 69
81: Cross-heading above section 70 amended
In the cross-heading above section 70 and fishing
82: Sections 70 to 79 replaced
Replace sections 70 to 79
70: Allocation plan issued
1: The Climate Change (Pre-1990 Forest Land Allocation Plan) Order 2010 was made under this section to issue an allocation plan in respect of pre-1990 forest land.
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 a legislative instrument and a disallowable instrument for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.
83: Section 81 amended (Entitlement to provisional allocation for eligible industrial activities)
1: In section 81 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
2: In section 81
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
84: Section 83 amended (Annual allocation adjustment)
1: In section 83(2) 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
2: After section 83(2)
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: Replace section 83(7)
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.
85: New sections 84A to 84C inserted
After section 84
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)
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) and 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.
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)
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) and 83(2A)(a)
84C: Procedure for regulations setting phase-out rates
1: Before recommending the making or amendment of regulations under section 84A or 84B
2: See 3B section 84A or 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)
a: the Minister decides to recommend the making of regulations under section 84A or 84B
b: the Minister decides to recommend the amending of regulations under section 84A or 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 or 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.
86: Section 85 amended (Allocation of New Zealand units in relation to agriculture)
In section 85(2) 0.9 0.95
87: Section 85A amended (Temporary suspension of phase-out rates for assistance under sections 81, 83(2), and 85(2))
1: Replace the heading to section 85A Temporary suspension of phase-out rate for assistance under section 85(2)
2: In section 85A(1) rates rate
3: In section 85A(1) and (2) sections 81, 83(2), and 85(2) section 85(2)
4: In section 85A(2)(a) rates in those sections may not reduce the level of assistance for an eligible activity from its 2012 level or the level in the first year in which full surrender obligations are applicable for the activity (as the case may be) rate in that section may not reduce the level of assistance for an eligible activity from the level in the first year in which full surrender obligations are applicable for the activity
5: In section 85A(2)(b) relevant
6: Replace section 85A(3)
2A: Before recommending the making of an Order in Council under subsection (2)(a)(ii), the Minister must consider the advice of the Climate Change Commission about whether the phase-out rates should continue to be suspended.
3: The Minister must not make a recommendation under subsection (2)(a)(ii) before surrender obligations for the relevant participants start.
88: Section 86 amended (Applications for allocation of New Zealand units for industry and agriculture)
Replace section 86(1)
1: An eligible person who wishes to be allocated New Zealand units for an eligible industrial activity or eligible agricultural activity under this subpart must apply to the EPA in the relevant period under subsection (1A)
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: for an allocation for an eligible agricultural activity, in the period starting on 1 January and ending on 31 March in the year after the year in respect of which the allocation is sought.
89: Section 86A amended (Provisional allocation to industry in and after 2013)
In section 86A section 86(1)(a) section 86(1A)(a)
90: Section 86B amended (Decisions on applications for allocations of New Zealand units to industry and agriculture)
1: In the heading to section 86B and agriculture
2: In section 86B(1) section 86 in respect of an eligible industrial activity
3: In section 86B(2)(a)(i) , in the case of an eligible industrial activity,
4: Replace section 86B(2)(b)
b: comply with section 86BB
91: New sections 86BA to 86BC inserted
After section 86B
86BA: Decisions on applications for allocations of New Zealand units to agriculture
1: This section applies if—
a: the EPA receives an application under section 86 in respect of an eligible agricultural activity; and
b: the applicant has submitted any emissions returns that are due.
2: The EPA must decide—
a: whether the applicant is eligible to receive an allocation in respect of the application:
b: if in the EPA's opinion the applicant is eligible for an allocation, the number of units the applicant is entitled to be allocated.
3: If the EPA decides that an applicant is entitled to receive an allocation, then the EPA must—
a: notify the applicant of—
i: the number of units the applicant has been allocated; and
ii: the person's right under section 144 to seek a review of the allocation decision; and
b: comply with section 86BC
4: If the EPA decides that an applicant is not eligible to receive an allocation, then the EPA must notify the applicant of—
a: the EPA's decision; and
b: the reasons for the decision; and
c: the person's right under section 144 to seek a review of the allocation decision.
5: The EPA must, as soon as practicable after deciding an eligible person’s allocation for an eligible agricultural activity in respect of a year,—
a: publish the decision in the Gazette
b: ensure that it is accessible via the Internet site of the EPA.
6: However, the EPA is not required to publish the allocation of an eligible person for an eligible agricultural activity in respect of a year, or ensure that it is accessible via the Internet, if the EPA considers that publishing that information would be likely to prejudice unreasonably the commercial position of the eligible person who received the allocation.
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, after any adjustment made under section 86B(1), are the potential transfer units
b: the applicant is the recipient
c: the start of the year to which the allocation relates is the relevant time
86BC: Transfer of allocated units to agriculture, less any units that must be surrendered or repaid
1: This section applies to the units allocated to an applicant under section 86BA potential transfer units
2: The EPA must calculate the specified units
a: first, the units required for surrender as a result of the assessment for the year to which the allocation relates:
b: second, the units (if any) that the applicant was required to, but did not, surrender, or repay to a Crown holding account, as a result of an assessment for an earlier year, starting from the units that were required to be surrendered or repaid by the earliest dates.
3: The EPA must notify the applicant of the following:
a: the number of specified units calculated under subsection (2)(a)
b: the number of specified units calculated under subsection (2)(b)
c: the number of specified units calculated under subsection (2)(b)
d: that the specified units will be deducted from the potential transfer units when they are transferred to the applicant, excluding any specified units that have already been surrendered or repaid by then.
4: The EPA must direct the Registrar to transfer—
a: the specified units required for surrender to a surrender account designated by the EPA; and
b: the specified units required for repayment to a Crown holding account designated by the EPA; and
c: any potential transfer units left after the specified units are deducted to the applicant’s holding account.
5: However, the Registrar, in transferring—
a: any units under subsection (4)
b: any specified units under subsection (4)(a) or (b)
6: The transfer of any specified units for surrender or repayment satisfies—
a: the applicant’s entitlement to be transferred those units; and
b: the applicant’s obligation to surrender or repay the related units.
7: To avoid doubt, the applicant remains liable to surrender or repay any units that are not counted as specified units (because they exceed the number of potential transfer units).
92: Section 86C amended (Reconsideration of allocation decisions)
1: In section 86C(1) section 86B or 86BA
2: Repeal section 86C(5A)
93: Section 86E amended (Minister or EPA or chief executive may require further information for purpose of carrying out functions under subpart)
1: In the heading to section 86E Minister or EPA or chief executive EPA
2: In section 86E(1) a determination under section 77 or 78 or a decision under section 86B, the Minister or EPA or chief executive, as appropriate, a decision under section 86B or 86BA
3: In section 86E(1) the Minister or EPA or chief executive the EPA
4: In section 86E(1)(c) a determination or decision the decision
5: In section 86E(2) determination or
6: Replace section 86E(4)
4: The EPA may, for the purpose of verifying whether a decision made under section 86B or 86BA
7: Replace section 86E(6)
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, is not entitled to receive an allocation in respect of that application.
94: Section 87 amended (Functions of EPA)
1: In section 87(1)(b), (e), and (g) this Part and Part 5 the ETS participant provisions
2: In section 87(1)(e) and the provisions of any regulations made under this Part and any regulations made under those provisions
95: Section 88 amended (Directions to EPA)
In section 88(1) this Part, Part 5, or any regulations made under this Part or Part 5 the ETS participant provisions or any regulations made under those provisions
96: Section 89 amended (EPA to publish certain information)
1: In section 89(1) in accordance with subsection (2) for each reporting year
2: In section 89(1)(e) subsections (3) and (4) subsection (4)
3: In section 89(1)(f)(i) under section 65(1), 118(2), 189(4), 191, or 193 required by this Act
4: In section 89(1)(f)(ii) under section 65(4), 118(5), 123(3) or (6), 125, 189, 191, or 193 as required by this Act
5: Repeal section 89(3)
97: New section 89A inserted (EPA to publish participant data on emissions and removals)
After section 89
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)
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)
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.
98: Section 90 amended (EPA may prescribe form of certain documents)
1: In section 90(1) this Part and Part 5 the ETS participant provisions and Part 2
2: Replace section 90(1)(b)
b: different forms or formats for different classes of participant or person or for different activities or purposes; and
3: In section 90(1)(c) this Part or Part 5 the ETS participant provisions or Part 2
99: New section 91A inserted (Correction of unique emissions factors)
After section 91
91A: Correction of unique emissions factors
1: If the EPA is satisfied that the unique emissions factor approved for a participant under section 91 is incorrect for any reason, the EPA may amend the approval to correct the unique emissions factor.
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 (so that the EPA may amend the emissions return under that section to reflect the corrected unique emissions factor).
100: Section 93 amended (Appointment of enforcement officers)
In section 93(1) Part (which relate to verification and inquiry about compliance with the ETS participant provisions)
101: Section 94 amended (Power to require information)
1: In section 94(1)(a) this Part and Part 5 the ETS participant provisions
2: Replace section 94(1)(b)
b: ascertaining whether, or how, the EPA or the chief executive, as appropriate, should exercise any powers under the ETS participant provisions.
102: Section 95 amended (Power to inquire)
In section 95(1) this Part or Part 5 the ETS participant provisions
103: Section 96 amended (Inquiry before District Court Judge)
In section 96(1) this Part or Part 5 the ETS participant provisions
104: Section 99 amended (Obligation to maintain confidentiality)
1: In section 99(1)(a), (2)(a), and (4)(a) this Part and Part 5 the ETS participant provisions
2: In section 99(2)(b)(vi) any obligation under the Convention or the Protocol international climate change obligations
3: Replace section 99(4)(c)
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)
105: Section 100 amended (Power of entry for investigation)
1: In section 100(1) this Part or Part 5 the ETS participant provisions
2: In section 100(2)(d) this Part and Part 5 the ETS participant provisions
106: Section 104 amended (Information obtained under section 100 or 101 only admissible in proceedings for alleged breach of obligations imposed under this Part and Part 5)
1: In the heading to section 104 this Part and Part 5 ETS participant provisions
2: In section 104 this Part or Part 5 the ETS participant provisions
107: Section 107 amended (Applications for emissions rulings)
1: Replace section 107(1)(b) and (c)
b: whether the person—
i: is a participant in respect of an activity listed in Schedule 3 or is eligible to register as a participant in respect of an activity listed in Schedule 4; or
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, 161G, 163, 164, 167, 168, 186F, 194C, 196F, or 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 184(5)(a) (exemptions for deforestation of land with tree weeds):
iii: for the EPA to approve an application relating to forest land:
2: Repeal section 107(3)
108: New section 107A inserted (Insufficient information provided for ruling on entire application)
After section 107
107A: Insufficient information provided for ruling on entire application
1: If the EPA is satisfied that an application under section 107 does not include all information that is relevant to a proper consideration of the application, the EPA must give notice to the applicant—
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 in respect of only that part of the matter.
109: Section 108 amended (Matters in relation to which EPA may decline to make emissions rulings)
1: In section 108(1)(b) section 107(3) section 107A(1)
2: In section 108(2)(g)(i) ruling but subject to section 107A
110: Section 109 amended (Making of emissions rulings)
1: In section 109(1) in respect of which a ruling is sought under section 107 applied for
2: In section 109(1)(b) section 107(3) section 107A
3: Replace section 109(3) and (4)
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 listed in Part 1 of Schedule 4 on the condition that the relevant land is planted in forest species and meets the definition of forest land.
4: Subsection (1) is subject to section 108 and the EPA’s discretion in section 107A(3)(b)
111: Section 116 amended (Effect of emissions rulings)
1: In section 116(1) in respect of which a ruling is sought under section 107 that is ruled on
2: In section 116(2)(a) in relation to which the ruling was sought that is ruled on
3: After section 116(2)
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).
112: Section 117 amended (EPA may publish certain aspects of emissions rulings)
1: In section 117(1) this Part or Part 5 the ETS participant provisions
2: In section 117(1) ruling in whatever manner and format that the EPA considers appropriate
113: Section 124 amended (Reimbursement of units by EPA)
Replace section 124(1) and (2)
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) subsection (2A)
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
114: Section 125 replaced (Repayment of units by persons in case of error)
Replace section 125
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.
115: Section 127 amended (Time bar for amendment of emissions returns)
1: In section 127(1) submitted under required or permitted by
2: In section 127(1)(a) section 189 or 193 those specified in paragraph (b)
3: Replace section 127(2)
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, so as to—
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.
3: Without limiting subsection (2)(b)
116: Section 129 amended (Offences in relation to failure to comply with various provisions)
1: In section 129(1)(b)(ii) under section 65, 118, 189, 191, or 193
2: Repeal section 129(1)(b)(iii)(B)
3: In section 129(1)(b)(iii)(C) by a by the
117: Section 132 amended (Other offences)
1: In section 132(1)(d) under section 65, 118, 189, 191, or 193
2: Repeal section 132(1)(e)(ii)
3: In section 132(1)(e)(iii) by a by the
4: In section 132(1)(f) and (g) this Part or Part 5 the ETS participant provisions
118: Section 133 amended (Evasion or similar offences)
1: In section 133(1)(b) under section 65, 118, 189, 191, or 193
2: Repeal section 133(1)(c)(ii)
3: In section 133(1)(c)(iii) by a by the
4: In section 133(1)(d) this Part or Part 5 the ETS participant provisions
5: In section 133(1)(e) this Part and Part 5 the ETS participant provisions
119: Section 143 amended (Evidence in proceedings)
In section 143(1) this Part or Part 5 the ETS participant provisions
120: Section 144 amended (Request for review of decisions)
1: Replace section 144(1)
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: Replace section 144(3)
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.
3: After section 144(4)
4A: Before revoking or varying the forestry classification of an area of land, the EPA must, in accordance with regulations made under section 196F
121: Section 148 amended (Giving of notices to EPA)
1: Replace section 148(2)
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 of the Contract and Commercial Law Act 2017:
c: by post to the post office box number for the office.
2: In section 148(3) subsection (2)(b)(ii)(C) subsection (2)(c)
122: Section 150 amended (Formation of consolidated group)
1: Replace section 150(1) and (2)
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 or 4 other than forestry activities.
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 activity:
c: 1 other member that is not a participant or an eligible person, if that entity is to act as the nominated entity.
2: In section 150(4)(b) this Part and Part 5 the ETS participant provisions
3: In section 150(4)(c)(i) this Part or Part 5 in respect of emissions and removals resulting from the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to,
4: In section 150(4)(c)(ii) activity , or by an allocation relating to an eligible activity,
5: In section 150(6) If 2 or more participants have elected under subsection (1) to form a consolidated group, those participants must be treated for the purposes of this Part and Part 5 Two or more entities who make an election under subsection (1)
6: In section 150(6A) an activity to which subsection (1)
7: After section 150(6A)(b)
c: at the same time they all submit an application under section 86 in respect of that eligible activity.
8: In section 150(6B)
a: after participant or an eligible person
b: after section 57 in respect of an activity, or making an application under section 86 in respect of an eligible activity,
9: In section 150(7) participant or an eligible person
123: Section 151 amended (Changes to consolidated groups)
1: Replace section 151(1)
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: In section 151(2)(a)(ii) if the entity is a participant,
3: In section 151(2)(b)(i) this Part or Part 5 in respect of emissions and removals resulting from the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to,
4: In section 151(2)(b)(ii) if the entity is a participant,
5: In section 151(2)(b)(ii) activities , or by an allocation relating to an eligible activity,
6: In section 151(2)(c)(i) this Part or Part 5 in respect of emissions and removals resulting from the ETS participant provisions in respect of emissions and removals resulting from, or allocations relating to,
7: In section 151(2)(c)(ii) that entity , or by an allocation relating to an eligible activity of that entity,
8: Replace section 151(4) and (5)
4: Subject to subsection (6), a participant or eligible person that elects under subsection (1) subsection (1)
5: An entity other than a participant or eligible person that elects under subsection (1) subsection (1)
9: In section 151(6) An entity may, if the entity elects to be treated as a member of a consolidated group on and after the date the entity is registered as a participant in respect of an activity, A participant in respect of an activity, or an eligible person in respect of an eligible activity, may
10: After section 151(6)(b)
c: when submitting an application under section 86 in respect of that eligible activity.
11: In section 151(7) participant or an eligible person
12: After section 151(7)(b)
c: submitting an application under section 86 in respect of that eligible activity.
124: Section 151A amended (Addition of activities to consolidated groups)
1: In section 151A(2)(b)(i) this Part or Part 5 in respect of emissions and removals resulting from the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to,
2: In section 151A(2)(b)(ii) activities , or by an allocation relating to an eligible activity,
125: Section 152 amended (Nominated entities)
In section 152(1) this Part and Part 5 the ETS participant provisions
126: Section 153 amended (Effect of being member of consolidated group)
Replace section 153(1) to (5)
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) in respect of the activities listed in the notice under section 150(4)(a)(ii) or 151(2)(a)(ii) carried out by each member of the consolidated group:
ii: be signed by the nominated entity in accordance with section 65(2)(f) on behalf of the consolidated group; and
d: is responsible for applying for any allocation of units under section 86 for an eligible activity, in place of the eligible person who is a member of the consolidated group.
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 activity, only the member’s liabilities and entitlements must be used.
5A: However, subsection (5) 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.
127: Section 154 repealed (Emissions returns by consolidated group in respect of activities in Part 1 of Schedule 4)
Repeal section 154
128: Section 155 amended (Ceasing to be member of consolidated group)
1: In section 155(1)(c) and (d) participant or an eligible person
2: Replace section 155(2)(c)
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 or 59; or
ii: in the case of an eligible person, they ceased to be an eligible person; and
3: In section 155(6)(a) participant or an eligible person
129: Section 156 replaced (Effect of ceasing to be member of consolidated group)
Replace section 156
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 activities, of the consolidated group, during the period in which the entity was a member of the consolidated group; but
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 activities, of other members of the group, for any period during which the entity is not a member of the consolidated group.
130: Section 156A amended (Removal of activities from consolidated groups)
1: In section 156A(4) this Part or Part 5 in respect of emissions and removals the ETS participant provisions in respect of emissions, removals, and allocations
2: In section 156A(4) removal activity or an eligible activity
131: Section 157 amended (Unincorporated bodies)
In section 157(2)(c)(ii)(C) may be, must
132: Section 159 amended (Recovery of costs)
In section 159(2)(b) any other provision of this Act this Act (other than this provision)
133: Section 160 amended (Review of operation of emissions trading scheme)
1: In section 160(1) established by this Act
2: Replace section 160(4)(b)
b: make the report of the panel publicly available; and
134: Section 161 amended (Appointment and conduct of review panel)
1: Replace section 161(1)(c)(ii)
ii: international climate change obligations and any other relevant international agreement; and
2: In section 161(1)(c)(iii) established under this Act
135: Section 161A amended (Regulations in relation to eligible industrial activities)
1: Replace section 161A(1)(d)
d: prescribing an allocation factor or factors for—
i: electricity:
ii: natural gas feedstock:
2: Replace section 161A(3)
3: The Minister may recommend the making of regulations under subsection (1)(a) that prescribe an activity as an eligible industrial activity if the Minister is satisfied that the activity is—
a: moderately emissions-intensive or highly emissions-intensive; and
b: trade-exposed.
3: In section 161A(4) 161B or
136: Section 161B repealed (Australian eligible industrial activities)
Repeal section 161B
137: Section 161C amended (Other eligible industrial activities)
1: In the heading to section 161C Other eligible Eligible
2: In section 161C(1) and (2) section 161A(3)(a) section 161A(3)
138: Section 161D amended (Power to require information for purposes of allocation to industry)
In section 161D(3)(a) section 161A(3)(a) section 161A(3)
139: Section 161E amended (Requirements in respect of notice given under section 161D)
1: Repeal section 161E(1)(e)
2: After section 161E(3)
4: However, subsection (3) does not apply if the purpose of the notice under section 161D is to provide the Minister with the information necessary to determine whether any matter should be considered by a review under section 160.
5: See section 3B
140: Section 161F repealed (Consultation on activities that may be prescribed as eligible industrial activities)
Repeal section 161F
141: Section 161G amended (Regulations in relation to eligible agricultural activities)
Replace section 161G(3) to (6)
3: Before recommending the making of regulations under subsection (1)(a)(ii) prescribing the allocative baseline or baselines of an eligible agricultural activity, the Minister must—
a: have regard to the most recent New Zealand Greenhouse Gas Inventory; and
b: comply with the consultation requirements in sections 3A and 3B
4: See
5: For each eligible agricultural activity, the Minister—
a: must recommend the making of regulations under this section before surrender obligations for participants in that activity start; and
b: must review those regulations at least once in every 5-year period; and
c: must not recommend the making of regulations that would result in there being no regulations in force under this section for the activity while surrender obligations for the activity exist.
6: In conducting a review under subsection (5)(b) subsections (3) and (4)
142: Section 162 amended (Regulations adding further activity to Part 2 of Schedule 4)
1: In the heading to section 162 Regulations Order in Council
2: Replace section 162(2) and (3)
2: See 3B
143: Section 163 amended (Regulations relating to methodologies and verifiers)
1: In section 163(1)(ab) an activity listed in Part 1 or 1A of Schedule 3 or Part 1 of Schedule 4 a forestry activity
2: In section 163(5) making a recommendation in relation to a regulation recommending the making of regulations
3: In section 163(5) New Zealand’s international obligations international climate change obligations
144: Section 166 replaced (Procedure for regulations relating to methodologies, verification, unique emissions factors, and offsetting)
Replace section 166
166: Consultation and commencement for regulations about methodologies, verifiers, and unique emissions factors
1: This section applies to regulations made under—
a: section 163 (methodologies and verifiers):
b: section 164 (unique emissions factors).
2: See 3B
3: The regulations come into force 3 months after the date of their notification in the Gazette
145: Section 167 amended (Regulations relating to fees and charges)
1: In section 167(1) this Part or Part 5 the ETS participant provisions
2: Replace section 167(2)(b)
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 194A section 194B
3: Replace section 167(3)(b)(ii)
ii: the administration of the ETS participant provisions in relation to a removal activity; or
iii: input returns:
146: Section 168 amended (Other regulations)
1: In section 168(1)(k), (l), and (o) this Part and Part 5 the ETS participant provisions
2: After section 168(1)(n)
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; and
3: After section 168(2)
3: See 3B subsection (1)(nb)
147: Section 169 amended (Incorporation by reference in regulations made under section 163, 164, 167, or 168)
1: In the heading to section 169 regulations made under section 163, 164, 167, or 168 certain regulations
2: In section 169(1) section 163, 164, 167, or 168 a relevant empowering section
3: After section 169(3)
4: In this section and sections 170 to 174, relevant empowering section 194C, 196F, or 197A
148: Section 170 replaced (Effect of amendments to, or replacement of, material incorporated by reference in regulations)
Replace section 170
170: Effect of amendments to, or replacement of, material incorporated by reference in regulations
1: Subsection (2)
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)
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).
149: Section 172 replaced (Effect of expiry of material incorporated by reference)
Replace section 172
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.
150: Section 173 amended (Requirement to consult)
Replace section 173(1)
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)
151: Section 174 amended (Public access to material incorporated by reference)
1: Replace section 174(1)(d)(i)
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)
2: In section 174(2)(a) section 163, 164, 165, 167, or 168 a relevant empowering section
152: Section 175 amended (Application of Legislation Act 2012 to material incorporated by reference)
In section 175(1) or replacement or a replacement
153: Section 178A amended (Option to pay money instead of surrendering units to cover emissions)
1: In the heading to section 178A units to cover emissions , repaying, or reimbursing units
2: Replace section 178A(1)
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) or 183A(2)(b); or
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 on post-1989 forest land, emissions or removals that are attributed by 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)
3: In section 178A(2)(a)(i) section 65(4), 118(5), 183A(2)(b), 186H, 187, 189(8), 191, or 193, as applicable the relevant provision
4: In section 178A(2)(a)(ii) and (b)(ii) a sum of $25 the fixed price
5: After section 178A(4)
5: In this section and sections 178B and 178C fixed price section 178C start date for auctions section 30GA(2)(a)
154: Section 178B amended (Issuing New Zealand units to meet surrender obligations)
1: In section 178B(1), (1)(a), (2), (3), and (3)(a) a sum of $25 the fixed price
2: In section 178B(3) to reimburse a person units under section 123(4), 186H, or 189(7)(d) by this Act to reimburse units to any person
3: In section 178B(5) $25 the fixed price
4: In section 178B(6) section 18CA(4) section 18CA(2)
155: Section 178C replaced (Prohibition on ability to export New Zealand units)
Replace section 178C
178C: Fixed price (for option to pay money instead of surrendering, repaying, or reimbursing units)
1: This section determines the fixed price
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, if an emissions return covers more than 1 calendar year of an activity on post-1989 forest land, emissions and removals are attributed to, and treated as having occurred in, each year in the proportion that the year bears to the emissions return period.
156: Part 5 divided into Parts 5 to 5D and new Part 5 divided into subparts
1: In Part 5 subpart 1 section 179
5: Sector-specific provisions: forestry
1: Deforestation
2: Replace the cross-heading above section 180
2: Pre-1990 forest land
3: Replace the cross-heading above section 186A
3: Pre-1990 offsetting forest land
4: Replace the cross-heading above section 187
4: Post-1989 forest land
5: Replace the cross-heading above section 195
5: General
6: In Part 5 subpart 2
5A: Sector-specific provisions: liquid fossil fuels
7: In Part 5 subpart 3
5B: Sector-specific provisions: stationary energy
8: In Part 5 subpart 4
5C: Sector-specific provisions: agriculture
9: In Part 5 subpart 5
5D: Sector-specific provisions: transitional provisions
157: Section 179A amended (Forest land may not be treated as deforested in certain cases)
After section 179A(3)
4: If regulations prescribe any meaning for New Zealand’s best practice forest management
158: Section 183 amended (Applications for exemption for land holdings of less than 50 hectares of pre-1990 forest land)
1: In section 183(1)(a) allocation plan referred to in section 72 pre-1990 forest land allocation plan
2: Replace section 183(1)(b)
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.
3: In section 183(2)(c) an allocation plan under section 72 the pre-1990 forest land allocation plan
4: In section 183(7) this section and section 183B
159: Section 183A amended (Certain applications not otherwise permitted by section 183)
1: In section 183A(1)(b) and (3) an allocation plan under section 72 the pre-1990 forest land allocation plan
2: In section 183A(5)(b) the allocation plan the pre-1990 forest land allocation plan
160: New section 183B inserted (Applications for exemption for some Maori land or land with 10 or more owners)
After section 183A
183B: 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 or, if there was no such document, in another instrument of title; and
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 with the power to apply under this section; and
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)
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 or, if there was no such document, in another instrument of title; and
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) subsection (1)(a) to (e)
a: declare the land to be exempt land; and
b: notify the applicant that the land has been declared exempt land.
161: Section 184 amended (Exemptions for deforestation of land with tree weeds)
1: Replace section 184(1) to (4)
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 applies.
2: In section 184(5) every application received under subsection (4) against the criteria, and priorities in, and the number of whole tonnes of emissions that are to be covered by exemptions granted in respect of, the relevant notice given under subsection (1) the application against the prescribed criteria and priorities
3: Replace section 184(5)(b)
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: Replace section 184(6)(b)
b: completed by the end of the mandatory emissions return period in which the exemption was granted.
162: Section 186F amended (Regulations relating to offsetting)
In section 186F
2: See 3B
3: The regulations come into force 3 months after the date of their notification in the Gazette
163: Section 186H amended (Treatment of allocations in respect of pre-1990 forest land that is offset)
1: In section 186H(1)(b) and (5) an allocation plan the pre-1990 forest land allocation plan
2: Replace section 186H(6)
6: For the purposes of subsection (2), second tranche
164: Section 187 amended (Conditions on registration as participant in respect of certain activities relating to post-1989 forest land)
1: In section 187(2) been deforested 8 or less years ago
2: Replace section 187(2)(b)
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
3: In section 187(6) the commencement of this section 1 January 2013
165: Section 188 amended (Registration as participant in respect of post-1989 forest land)
1: In section 188(6)(a) under section 57(6)(b),— the person in accordance with section 57(6)
2: Repeal section 188(6)(a)(i) and (ii), and (b)(i)
3: Repeal section 188(7)(a)(i)
4: In section 188(7)(a)(ii)(A) section 58(3)(c) section 58(3)(b)
5: Repeal section 188(7)(b)(i)
6: In section 188(7A) subsection (7)(b)(i) to (iii) subsection (7)(b)(ii) and (iii)
7: After section 188(10)
11: See also sections 188B and 188C
166: New sections 188B and 188C inserted
After section 188A
188B: 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.
188C: 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.
167: Section 189 amended (Emissions returns for post-1989 forest land activities)
1: In section 189(8)(d)(i) within 20 working days of submitting the emissions return
2: In section 189(8)(d)(ii) , within 60 working days of submitting the emissions return,
3: In section 189(9) mandatory emissions return period
168: Section 191 amended (Ceasing to be registered as participant in respect of post-1989 forest land)
In section 191(3)(b)(i)(A) (as defined in section 189(9))
169: New section 191A inserted (If participant has never carried out activity in carbon accounting area)
After section 191
191A: 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 in Part 1 of Schedule 4 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, and the records of carbon accounting areas kept under section 188(2), to remove the person’s registration in respect of the carbon accounting area, or part carbon accounting area.
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.
170: Section 192 amended (Effect of transmission of interest in post-1989 forest land)
After section 192(5)
5A: However, if the transmitted interest is part of a deceased participant’s estate,—
a: for the transfer to the executor or administrator,—
i: subsections (3)(a), (4), and (5) do not apply (so that no notice or emissions return is required); but
ii: subsection (3)(b) still applies and the EPA must act under subsection (6); and
b: for the transfer from the executor or administrator to a successor,—
i: the transferee (not the transferor) must submit the emissions return required by section 193; and
ii: for the purposes of that emissions return, the affected carbon accounting areas are those 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.
171: Section 193 amended (Emissions returns in relation to transmitted interests)
In section 193(2)(b)(i)(A) (as specified in section 189(9))
172: New cross-heading above section 194 inserted
Before section 194 Information about status of forest land
173: New sections 194A to 194C and cross-headings inserted
Before section 195 Input returns may be submitted before actual emissions returns
194A: 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 194C
194B: EPA may do calculations based on input return
1: This section applies if the EPA receives an input return in accordance with section 194A
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).
194C: 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 by notice in the Gazette paragraphs (b) to (d)
2: See 3B
3: Any guidelines or standards issued by the EPA under regulations made under subsection (1)(e)
4: A person who has complied with guidelines or standards issued by the EPA under regulations made under subsection (1)(e) Notification of status of forest land
174: Sections 196 and 197 and cross-heading replaced
Replace sections 196 197 Forestry classifications of land
196: Meaning of forestry classification
In this Act, forestry classification
a: classifies the area by whether or how—
i: a definition or matter in the Act that relates to forestry applies to the area; or
ii: the area is eligible to have a definition or matter in the Act apply to it if certain requirements are satisfied; and
b: is given—
i: by the EPA under section 196A 196C 196D
ii: by the decision of the District Court or High Court under section 145 or 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): pre-1990 offsetting forest land: land that has been deforested, or deforested on specified dates: land that is eligible to be declared exempt land under section 184 (because of tree weeds): 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.
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
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 the 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.
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
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
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
b: by the decision of a court on appeal under section 145 or 146.
2: The forestry classification must be ignored in respect of the period before the date of the decision—
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)
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
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)
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) also applies to regulations made under subsection (1)(b)(ii)
4: See 3B
5: Regulations made under this section come into force 3 months after the date of their notification in the Gazette Grant-funded forests
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
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)
a: stem directly from the activity; or
b: are associated with a product or other thing that is the subject of the activity.
175: Section 198 amended (Registration as participant by purchasers of obligation fuel)
Replace section 198(2) and (3)
2: If the EPA registers a person as a participant under section 57 in respect of an activity listed in Part 3 of Schedule 4, the registration takes effect 12 months after the date of the notice issued under section 57(6)
3: If the EPA has received an application under section 58 for removal of a person’s name from the register as a participant in respect of an activity listed in Part 3 of Schedule 4, the EPA must remove, under section 58(4), the applicant’s name from the register on the date that is 48 months after the notice issued under section 58(3)(b).
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 in respect of an activity in Part 2 of Schedule 3.
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.
176: Section 202 amended (Activities added to Part 2 of Schedule 3)
1: In section 202(2) that an Order in Council be made recommend the making of an Order in Council
2: In section 202(2)(b)(ii) New Zealand's international obligations international climate change obligations
177: Section 209 amended (Registration as participant by purchasers of coal or natural gas)
Replace section 209(2) to (4)
2: If the EPA registers a person as a participant under section 57 in respect of an activity listed in Part 4 of Schedule 4, the registration takes effect 12 months from the date of the notice issued under section 57(6)
3: If the EPA has received an application under section 58 for removal of a person’s name from the register as a participant in respect of an activity listed in Part 4 of Schedule 4, the EPA must remove, under section 58(4), the applicant’s name from the register on the date that is 48 months after the date of the notice issued under section 58(3)(b).
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.
178: Section 213 amended (Participant in respect of subpart 4 of Part 5 of Schedule 3)
In section 213(1)(b)(i) and (ii) section 2A(9) section 2A(5D)
179: New sections 215 and 216 inserted
After section 214
215: Ministers to report on alternative pricing system for farm-level agriculture emissions
1: The Minister and the Minister of Agriculture must prepare a report that outlines a system to put a price on emissions from agricultural activities (including, but not limited to, the activities listed in Part 5 of Schedule 3) as an alternative to the emissions trading scheme currently provided for in this Act.
2: The report must be prepared and made publicly available by 31 December 2022.
3: The report must discuss the following matters in relation to the emissions trading scheme and the alternative system outlined under subsection (1)
a: how emissions from those activities would be priced and accounted for:
b: whether other activities or participants would be included in the system:
c: what methodologies would be used for calculating emissions and removals:
d: what assistance, if any, would be given to participants:
e: how emissions of methane would be treated relative to other greenhouse gases, including whether, how, and what types of removals would be recognised:
f: what information participants would need to provide and how that information would be used, shared, or made publicly available:
g: how participants and relevant industry groups would be engaged with in designing, implementing, and operating the system:
h: who would be responsible for administering the system:
i: what amendments would need to be made to legislation to enable the system to work.
4: Before preparing the report, the Ministers must—
a: request a report from the Climate Change Commission under section 5K about what assistance, if any, should be given to participants; and
b: consider that advice.
5: In this section, Minister of Agriculture
216: Regulations for voluntary reporting or surrender for animals–farmer or fertiliser–farmer activity
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: providing for a process by which a person carrying out an activity described by the fertiliser–farmer subpart or animals–farmer subpart (of Part 5 of Schedule 3) may choose to be treated as a participant in the activity described:
b: providing that the person may choose to be treated in that way in respect of 1 or both of—
i: obligations to report under this Act on the emissions from the activity:
ii: obligations to surrender units under this Act for the emissions from the activity:
c: providing for the following participants in corresponding processor activities
i: a participant in a fertiliser–processor activity that corresponds to a fertiliser–farmer activity for which a participant has become subject to obligations to surrender units under this Act:
ii: a participant in an animals–processor activity that corresponds to an animals–farmer activity for which a participant has become subject to obligations to surrender units under this Act:
d: if regulations are made under paragraph (b)(ii)
i: ceases to be subject to obligations to surrender units under this Act in respect of that activity, or becomes subject to such obligations as varied to ensure that only 1 person is liable to surrender units in respect of the corresponding processor activities or the activities to which they correspond; and
ii: ceases to be entitled to allocations of units in respect of the activities for which they are no longer liable to surrender units.
2: Before recommending the making of the regulations, the Minister must consult the Minister of Agriculture.
3: See section 3B
180: Section 217 amended (Transitional provision for penalties)
1: Replace section 217(1)
1: This section applies in respect of the first year in which a participant is required to surrender units for emissions in respect of an activity listed in subpart 2 or 4 of Part 5 of Schedule 3.
1A: Subsection (2) applies—
a: to the participant if they submit an annual emissions return that relates to that first year; and
b: in respect of the units that the participant is required to surrender in respect of the activity.
2: Repeal section 217(2)(a)
181: Section 218 repealed (Transitional provision for voluntary reporting)
Repeal section 218
182: Sections 219 to 222 replaced
Replace sections 219
219: Transitional provision for surrender obligations of certain participants
1: This section applies to a person who carries out the following in the specified period (the excluded period
a: a fertiliser–processor activity in the period starting on 1 January 2011 and ending on—
i: 31 December 2024, if by that date no earlier end date has been appointed for that activity; or
ii: an earlier end date appointed for that activity by an Order in Council made under subsection (3)(a)
b: a fertiliser–farmer activity in the first year in which the fertiliser–farmer subpart applies to persons, or the class of persons, carrying out that activity (starting on a date appointed by an Order in Council made under section 2A(5B)
c: an animals–processor activity in the period starting on 1 January 2011 and ending on—
i: 31 December 2024, if by that date no earlier end date has been appointed for that activity; or
ii: an earlier end date appointed for that activity by an Order in Council made under subsection (3)(b)
d: an animals–farmer activity in the first year in which the animals–farmer subpart applies to persons, or the class of persons, carrying out that activity (starting on 1 January 2024 or a later date appointed by an Order in Council made under section 2A(5D)
2: Even if the person’s emissions return reports emissions for the excluded period, the person is not liable under this Act to surrender units for those emissions.
3: The Governor-General may, by Order in Council made on the recommendation of the Minister, appoint 1 or both of the following (an earlier end date
a: a date for the purpose of subsection (1)(a)(ii)
b: a date for the purpose of subsection (1)(c)(ii)
4: Before recommending the making of an order appointing an earlier end date, the Minister must—
a: consult with the Minister of Agriculture (as defined in section 215
b: consider the report provided by the Climate Change Commission under section 220
c: be satisfied that progress of the kind referred to in section 220(b)
5: In recommending the making of an order appointing an earlier end date, the Minister must not recommend a date that is before 1 July 2022.
220: Commission to report on progress towards meeting farm-level obligations
The Commission must, not later than 30 June 2022, provide written advice to the Minister on—
a: the progress that has been made towards meeting the primary sector climate change commitments set out in Schedule 5
b: the progress that has been made towards participants in an activity listed in subpart 4 of Part 5 of Schedule 3 being ready to start complying with reporting and surrender obligations under this Act in respect of that activity; and
c: any barriers to those participants being ready to start complying with those obligations; and
d: what further steps (if any) are required by the primary sector or the Government for those participants to be ready to start complying with those obligations.
183: Section 222H amended (Transitional provision for unincorporated bodies)
Repeal section 222H(3) to (5)
184: Section 233 amended (Rate of synthetic greenhouse gas levy)
1: In section 233(1) B is the price of carbon specified under subsection (4)(b) or, if section 236(2)
2: In section 233(3) item A variable A
3: In section 233(4) item B variable B
4: Replace section 233(5)
5: Regulations made under subsection (4)(a)—
a: must be made in accordance with the consultation requirements in section 3B
b: come into force 3 months after the date of their notification in the Gazette
5: In section 233(6) making a recommendation under subsection (4) recommending the making of the regulations
185: Section 234 repealed (Transitional provision for synthetic greenhouse gas levy)
Repeal section 234
186: Section 236 replaced (Maximum price of carbon for purpose of levy calculation)
Replace section 236
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 233(4)(a) would result in a price of carbon that is higher than the following price (the maximum price
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)
187: Section 243 amended (Circumstances where levy may be refunded)
In section 243(1)(b) greenhouse gas emissions emissions
188: Section 244 amended (Exemptions from payment of synthetic greenhouse gas levy)
Replace section 244(6)
6: See 3B
189: Section 245 amended (Regulations specifying levy rates)
Replace section 245(4)
4: Regulations made under subsection (1) come into force 3 months after the date of their notification in the Gazette
190: Section 246 amended (Regulations relating to synthetic greenhouse gas levy)
Replace section 246(2) and (3)
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 3B
4: Regulations made under subsection (1)(a) to (e) come into force 3 months after the date of their notification in the Gazette
191: Section 247 repealed (Process for making orders and regulations)
Repeal section 247
192: Section 249 amended (Application of section 88 (Directions to EPA))
In section 249 Part 5 the ETS participant provisions
193: Section 252 amended (Enforcement officers)
In section 252 under Part 4 in relation to this Part under this Part (which relates to verification and inquiry about compliance with this Part)
194: Section 257 amended (Power of entry for investigation, warrants, etc)
In section 257 Part 5 the ETS participant provisions
195: Section 258 amended (Regulations relating to verifiers)
Replace section 258(3)
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 3B
196: Section 269 amended (Review of operation and effectiveness of levy)
Replace section 269(4)(b)
b: make the report of the panel publicly available; and
197: Section 270 amended (Appointment and conduct of independent panel)
Replace section 270(1)(c)(ii)
ii: international climate change obligations and any other relevant international agreement; and
198: Schedule 1AA amended
In Schedule 1AA clause 3
2: Provisions relating to Climate Change Response (Emissions Trading Reform) Amendment Act 2020
4: Interpretation
In this Part,— amendment Act third mandatory emissions return period
1: Provisions that commence on day after Royal assent
5: Satisfying requirements for making regulations
1: This clause applies to any requirement for the making of any regulations under this Act as amended by the amendment Act.
2: Anything done before the commencement of this clause satisfies the requirement as long as it would have satisfied the requirement if it had been done after the commencement.
6: New regulations may commence on or after commencement of clause
Any regulations made under this Act before the commencement of this clause may come into force on, or at any time after, that commencement, despite anything in this Act that prevents them from coming into force within a certain period after the date of their notification in the Gazette
7: Making first regulations about limits and price controls for units
1: If regulations are to be made under section 30GB section 30GC(2)(a)
2: When an emissions budget is first set,—
a: the Minister must recommend the making of regulations under section 30GB section 30GC(2)
b: the Minister may recommend prescribing a new limit or price control settings for 1 or both of the 2 calendar years after the year in which the amendment is made, despite section 30GB(5)
8: Existing accounts continue
If any account established in the Registry (under section 7(1)(a), for example) existed immediately before the commencement of this clause, it continues to exist after the commencement.
9: Information accessible by search of unit register
If section 27 applies to information immediately before its amendment by the amendment Act, it continues to apply in accordance with that section as if it were not amended.
10: Information to be published by EPA
1: For a reporting year beginning before 1 January 2023, the EPA is not required to publish the information required under section 89(1)(e) in respect of an activity or the information required under section 89(1)(i) if the EPA is satisfied that publishing the information would result in the disclosure of a participant’s individual emissions or an eligible person's own allocation, unless—
a: the participant or eligible person to whom the information relates has consented to the publication of the information; or
b: the information is already in the public domain.
2: Section 89A
a: the return also relates to a period after 1 January 2020; and
b: it is possible for emissions or removals occurring before 1 January 2020 to be excluded from the published information.
3: Section 89A
a: applies in respect of emissions returns submitted under section 189, 191, or 193 for emissions or removals on or after 1 January 2020; but
b: does not apply in respect of any other emissions returns in relation to post-1989 forest land during a mandatory emissions returns period commencing before 1 January 2023.
11: Members of existing consolidated groups jointly and severally liable
1: The joint and several liability to which each member of a consolidated group has agreed, immediately before the commencement of this clause, is treated as if it were joint and several liability for any obligations under the ETS participant provisions in respect of emissions and removals resulting from, or allocations, penalties, or interest relating to, the relevant activities.
2: The transfer of units to the consolidated group's holding account (on behalf of the group) to which each member of a consolidated group has agreed, immediately before the commencement of this clause, is treated as if it included the transfer of any units to which a member becomes entitled by an allocation relating to a relevant eligible activity.
12: Consolidated group for activity relating to forestry
1: In this clause, an existing forestry consolidated group
a: was formed in respect of an activity or activities listed in Part 1 or 1A of Schedule 3 or Part 1 of Schedule 4; and
b: exists immediately before the commencement of this clause.
2: Sections 150 and 151A do not apply to an existing forestry consolidated group (so that no members or activities may be added to the group).
3: The nominated entity of an existing forestry consolidated group—
a: may submit a single emissions return under section 189(3) in respect of 1 or more of the activities listed in Part 1 of Schedule 4 carried out by a member of the group in a year; and
b: must submit any emissions return required under a provision of Part 5
c: must sign any emissions return submitted by the nominated entity in accordance with section 65(2)(f) on behalf of the group.
4: In relation to an existing forestry consolidated group, section 153(2) to (4) subclause (3)
5: To avoid doubt, only the nominated entity for an existing forestry consolidated group may submit an emissions return for the group.
13: Fixed price (for option to pay money instead of surrendering or repaying)
Section 178A does not apply if the person’s emissions return described by section 178A(1)(a)(i)(A)
a: is in respect of an activity listed in Part 1 of Schedule 4; and
b: does not impose a net liability to surrender or repay units for all of the carbon accounting areas covered by the return (for example, under section 189(8)).
199: New Schedule 2A inserted
After Schedule 2 Schedule 2A Schedule 1
200: Schedule 3 amended
1: In Schedule 3, Part 1 the 5-year period commencing on 1 January 2008, or in any subsequent 5-year period after that any mandatory emissions return period
2: In Schedule 3 Part 2 , subject to sections 218 and 219,
3: In Schedule 3 Part 3 subpart 1 Mining coal where the volume of coal mined exceeds 2 000 tonnes in a year Satisfying 1 or both of the following in respect of a year ( mining coal
a: mining more than 2,000 tonnes of coal in the year ( direct coal mining
b: owning at least 2,000 tonnes of coal, from the person’s direct coal mining, at the start of the year, and where the year is immediately after ( coal stockpiling
i: a year of direct coal mining; or
ii: 1 or more consecutive years of owning at least 2,000 tonnes of coal (from the person’s direct coal mining) at the start of the year, after an initial year of direct coal mining.
4: In Schedule 3 Example
A person mines 2,500 tonnes of coal in 2022, which is direct coal mining mining coal coal stockpiling mining coal paragraph (b)(i) and (ii)
5: In Schedule 3 , subject to sections 218 and 219,
6: In Schedule 3 (applies, subject to sections 218 and 219, on and after 1 January 2011 unless subpart 2 brought into force) (applies on and after 1 January 2011, but is subject to section 219
7: In Schedule 3 (applies, subject to sections 218 and 219, from 1 January 2011, if determined by Order in Council) (applies on and after a date appointed by Order in Council, but is subject to section 219
8: In Schedule 3 (applies, subject to sections 218 and 219, on and after 1 January 2011 unless subpart 4 brought into force) (applies on and after 1 January 2011, but is subject to section 219
9: In Schedule 3 (applies, subject to sections 218 and 219, from 1 January 2011, if determined by Order in Council) (applies on and after 1 January 2024 or a later date appointed by Order in Council, but is subject to section 219
10: In Schedule 3 , subject to sections 218 and 219,
201: Schedule 4 amended
1: In Schedule 4 New Zealand's annual inventory report under the Convention or Protocol or any emissions report from New Zealand under a successor international agreement any emissions report provided by New Zealand under its international climate change obligations
2: In Schedule 4 New Zealand’s annual inventory report under the Convention or Protocol or any emissions report from New Zealand under a successor international agreement any emissions report provided by New Zealand under its international climate change obligations
3: In Schedule 4 , subject to sections 218, 219, and 220,
202: New Schedule 5 inserted
After Schedule 4 Schedule 5 Schedule 2
2: Amendments that commence on 30 November 2020
203: Section 30G amended (Regulations relating to Part 2)
Replace section 30G(3)
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).
204: Section 183A amended (Certain applications not otherwise permitted by section 183)
In section 183A(2)(b) New Zealand units units
205: Section 186H amended (Treatment of allocations in respect of pre-1990 forest land that is offset)
1: In section 186H(2)(b) New Zealand units equivalent to the portion of New Zealand units equivalent to the portion of
2: In section 186H(3)(a), (4), and (6) New Zealand
206: Section 189 amended (Emissions returns for post-1989 forest land activities)
In section 189(8)(b) New Zealand
207: Section 191 amended (Ceasing to be registered as participant in respect of post-1989 forest land)
Repeal section 191(1)(c) and (1A)
208: Schedule 1AA amended
In Schedule 1AA
2: Provisions that commence on 30 November 2020
14: Cancellation of historic approved overseas units
1: This clause applies to approved overseas units that were issued in the first commitment period starting on 1 January 2008 and ending on 31 December 2012, other than those that are held by the Crown in a Crown holding account or an account established under section 7.
2: If any person holds any of the approved overseas units, the Registrar must transfer the units to a cancellation account.
3: The EPA must direct the Registrar to transfer a New Zealand unit from a Crown holding account to a person’s holding account for each of that person’s approved overseas units—
a: that is a New Zealand assigned amount unit (as defined by regulation 3 of the Climate Change (Unit Register) Regulations 2008); and
b: that the Registrar transfers to a cancellation account under this clause.
4: No compensation is payable for any other units that the Registrar transfers to a cancellation account under this clause.
3: Amendments that commence on 1 January 2021
209: Section 3A amended (Treaty of Waitangi (Te Tiriti o Waitangi))
After section 3A(b)(vi)
via: section 30W(1)(a)
210: Section 3B amended (Consultation about certain regulations, orders, and notices)
1: After section 3B(1)(e)
ea: section 30W(1)(a)
2: Repeal section 3B(1)(s)
211: Section 4 amended (Interpretation)
In section 4(1) deforest deforest
a: means to convert forest land to land that is not forest land ( see
b: includes deforestation after forest land is cleared, where section 179 applies
212: New subpart 4 of Part 2 inserted
After section 30V
4: Regulations setting price of carbon
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 3B subsection (1)(a)
4: Regulations made under subsection (1)(a) Gazette
213: Section 89 amended (EPA to publish certain information)
1: Repeal section 89(1)(e)
2: After section 89(1)
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
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
b: a penalty imposed under sections 134A to 134D
3: In section 89(2)(a) and (b) subsection (1) subsections (1) to (1B)
4: Repeal section 89(4)
214: Section 120 amended (Amendment to emissions returns by EPA)
In section 120
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 applies as if the EPA had assessed the matters in the emissions return under section 121.
215: New section 120A inserted (Liabilities, penalties, and interest when emissions returns amended)
After section 120
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 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
i: specifying the amended penalty as required by section 134(3)(d)
ii: specifying the new due date as required by section 134(3)(f)
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
8: In this section,— amended emissions return amendment notice interest original emissions return penalty notice section 134(3)
216: Section 123 amended (Effect of amendment or assessment)
In section 123(2) section 134(3)(b) section 134A or 134C section 120A
217: Section 127 amended (Time bar for amendment of emissions returns)
After section 127(2)(b)
c: if a person submits an emissions return on receiving a notice from the EPA under section 134A(1)
218: Section 129 amended (Offences in relation to failure to comply with various provisions)
In section 129(1)(a) (requirement to collect data or other information, calculate emissions and removals, and keep records) (other than by submitting an emissions return containing incorrect calculations)
219: Section 132 amended (Other offences)
In section 132(1)(c) (requirement to collect data or other information, calculate emissions and removals, and keep records) (other than by submitting an emissions return containing incorrect calculations)
220: Sections 134 to 136 replaced
Replace sections 134 to 136
134: Penalty for failing to surrender or repay units by due date
1: This section applies if a person fails, by the due date,—
a: to surrender units that the person is required to surrender; or
b: to repay units that the person is required to repay.
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)); and
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
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 and a penalty may apply; and
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 listed in Part 1 of Schedule 4 (for post-1989 forestry), the person has either—
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)
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 or a closing allocation adjustment under section 84 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 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) and a penalty may apply; and
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) is that—
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)
134C: Penalty for submitting incorrect emissions return
1: This section applies if—
a: the EPA amends a person’s emissions return under section 120; and
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)
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; and
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)
134D: Penalty for providing incorrect information in allocation application or adjustment
1: This section applies if—
a: the EPA reconsiders, varies, or revokes ( changes
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; and
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)
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
135A: Deferred payment arrangements for payments of penalties
1: A person who is liable to pay a penalty imposed under sections 134 to 134D section 135(1)
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.
136: Penalties are debt due to Crown
The amount of a penalty imposed under sections 134 to 134D
221: Section 137 amended (Interest for late payment)
1: Replace section 137(1)
1: This section applies if—
a: a person is liable to pay a penalty imposed under sections 134 to 134D
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
2: In section 137(2) excess emissions
3: Replace section 137(2)(b)
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
4: Repeal section 137(3)
5: In section 137(4)(a) or to transfer units to a Crown holding account under section 136 and pay the penalty in full and pay the penalty
6: Replace section 137(6)
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.
222: Section 138 amended (Obligation to pay penalty not suspended by appeal)
1: Replace section 138(1)
1: The obligation to pay and the right to receive and recover any penalty imposed under sections 134 to 134D
2: In section 138(2) and (4) excess emissions
223: Section 138A replaced (Penalties to be paid into Crown account)
Replace section 138A
138A: Penalties to be paid into Crown account
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
224: Section 159 amended (Recovery of costs)
1: In section 159(1)(a) 1 year of the date of a penalty notice given under section 134 or 136 90 days after the date of a penalty notice given under section 134
2: In section 159(3) 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
3: In section 159(4) section 134, 134A, or 136 section 134 to 134D
4: Replace section 159(5)
5: In this section,— insolvency process 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.
225: Section 179 amended (Forest land to be treated as deforested in certain cases)
1: Replace section 179(1)(a)
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
2: In section 179(1)(b)(i) and (c) at least more than
3: In section 179(1A) Subsection (1)(a)(iii) Subsection (1)(a)(ii)
226: Section 181 amended (When deforestation to be treated as occurring in respect of pre-1990 forest land)
1: Replace section 181(1)
1: This section applies to any hectare of pre-1990 forest land that is being converted to land that is not forest land.
1A: 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.
2: In section 181(2) Subsection (3) applies to a landowner converting a hectare of pre-1990 forest land that However, subsection (3)
3: Replace section 181(3)
3: 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.
3A: 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 186(2) applies.
227: Section 189 amended (Emissions returns for post-1989 forest land activities)
In section 189(8)(d)(ii) sections 134 and 135 sections 134, 134A, and 134C
228: Section 192 amended (Effect of transmission of interest in post-1989 forest land)
1: In section 192(1) forest land (only if agreed under subsection (1A)
2: After section 192(1)
1A: 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 section 192(2) In subsections (1) In subsections (1), (1A)
229: Section 217 amended (Transitional provision for penalties)
1: In section 217(2)(b)(ii) an excess emissions penalty under section 134(2)(b)(ii) or 134A(2)(b) a penalty under section 134, 134A, or 134C
2: In section 217(2)(c) section 134, 134A, or 136 section 134
3: After section 217(2)
3: The participant—
a: is not liable to pay a penalty under section 134B or 134D
b: is not liable for any infringement offence (as defined by section 30L
230: Section 233 amended (Rate of synthetic greenhouse gas levy)
1: In section 233(1) B is the price of carbon specified by or under regulations made under section 30W section 236(2)
2: Repeal section 233(4) to (6)
231: Section 236 amended (Maximum price of carbon for purpose of levy calculation)
In section 236(2)
a: replace section 233(4)(a) section 30W(1)(a)
b: after for that levy year but only for the purposes of the calculation in section 233
232: Schedule 1AA amended
1: In Schedule 1AA clause 10(3)
4: Section 89(1A) and (1B)
2: In Schedule 1AA
3: Provisions that commence on 1 January 2021
15: Existing regulations about price of carbon
1: This clause applies to any regulations made under section 233(4) that, immediately before the commencement of this clause,—
a: prescribe the methodology for specifying the price of carbon; or
b: specify the price of carbon by applying the methodology.
2: On and after the commencement of this clause, the regulations continue in force and must be treated as if they were made under section 30W
16: Penalties
1: This clause applies in respect of a person who, before the commencement of this clause,—
a: fails to surrender or repay units by the due date; or
b: fails to submit an emissions return or annual or closing allocation adjustment; or
c: submits an incorrect emissions return, allocation application, or allocation adjustment.
2: Sections 134 to 134D
3: This Act, as in force immediately before the commencement of this clause, applies in respect of the person for the failure or error.
17: Penalties for forestry activities before 2023 with liability for lower amounts
1: This clause applies if—
a: new section 134
b: that liability to surrender or repay the units resulted from—
i: a forestry activity carried out before 1 January 2023; 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 (for example, the requirement to repay units under section 125
2: Under this clause, instead of new section 134 Excess emissions penalty for failing to surrender or repay units
a: former section 134(1)(a) and (c), (2)(a) and (b)(i) and (iii), (3)(a), and (4), as if—
i: former section 134(1)(a) applied to the failure to surrender the units (if any); and
ii: former section 134(1)(c) applied to the failure to repay the units (if any): Further excess emissions penalty for failing to surrender or repay units when required by notice under section 134
b: former section 134A: Reductions in penalty
c: former section 135(1) and (1A): Deferred payment arrangements for payments of penalties
d: new section 135A
i: a penalty imposed under former section 134, 134A, or 136 were imposed under new section 134
ii: new section 135A(1) section 135(1) Additional excess emissions penalty for knowing failure to comply
e: former section 136(1)(a)(ii) and (b)(ii), (2)(a)(ii) and (b), and (3) to (5): Interest for late payment
f: former section 137(1)(a)(i) and (iii) and (b), (2) to (5), and (7), and new section 137(6) Obligation to pay penalty not suspended by appeal
g: former section 138: Penalties to be paid into Crown account
h: former section 138A: Review and appeal
i: former sections 144 to 146: Recovery of costs
j: former section 159, as if its subsection (3) specified that variable C is the price, in dollars, of carbon per tonne 1 year after the date of the penalty notice given under former section 134 or 136 in relation to the units, as set by or in accordance with regulations made under new section 30W Transitional provision
k: former section 217(2)(b)(ii) and (c): Other former provisions
l: any other former provision of this Act that provides for a process that applies to any former provision applied by this clause: EPA to publish certain information
m: new section 89, as if a penalty imposed under former section 134, 134A, or 136 were a qualifying penalty.
3: In this section,— former new
4: Amendments that commence on 1 January 2023
233: Section 3A amended (Treaty of Waitangi (Te Tiriti o Waitangi))
1: Replace section 3A(b)(viii)
viii: section 60A
2: Replace section 3A(b)(xvi) and (xvii)
xva: section 180G
xvi: section 181W
xvia: section 190F
xvib: section 191I
xvic: section 192U
xvid: section 193R
xvii: section 194B
234: Section 3B amended (Consultation about certain regulations, orders, and notices)
1: Replace section 3B(1)(g)
g: section 60A
2: Replace section 3B(1)(o) and (p)
na: section 180G
o: section 181W
oa: section 190F
ob: section 191I
oc: section 192U
od: section 193R
p: section 194B
235: Section 4 amended (Interpretation)
1: In section 4(1) carbon accounting area carbon equivalence clear exempt land forestry activity offsetting forest land pre-1990 forest land pre-1990 offsetting forest land removal activity usual rotation period
2: In section 4(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 in relation to an activity of standard forestry or permanent forestry; and
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) 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) 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 constitution date
a: for a carbon accounting area that is defined in an application referred to in section 182C(1)
b: for a carbon accounting area that a participant applies to add under section 182C(3) section 182C(6)(b)(ii)
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 exempt land
a: means pre-1990 forest land that has been declared to be exempt land—
i: under section 180B or 180D
ii: under section 180E
b: does not include any forest land that met the definition in paragraph (a) section 182A(2) first rotation forest section 191C(3) and (4) forest sink covenant forestry activity
a: an activity listed in Part 1 or 1A of Schedule 3 (deforesting certain pre-1990 forest land or P90 offsetting land); or
b: an activity listed in Part 1 or 1A permanent forestry section 182 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 of Schedule 3 has been satisfied; or
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 of Schedule 3, had the land not been exempt land, have been surrendered under section 182A(2)(b) 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 of Schedule 4 (other removal activities) standard forestry section 182 subsequent rotation forest section 191C(6) temporary adverse event land section 193(1)
3: In the definition of deforest section 181 section 180A
4: In section 4(1) post-1989 forest land paragraph (a)(iv)
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:
5: In section 4(1) post-1989 forest land pre-1990 offsetting forest land P90 offsetting land
6: In section 4(1) post-1989 forest land section 187 section 182A
7: In section 4(1) post-1989 forest land
b: is not area 1 (approved) land (as defined in section 181
8: In section 4(1) tree weed a tree a forest species
9: In section 4(7)(c) section 183(7) section 180B(7)
236: Section 54 amended (Participants)
In section 54(1)(a)(i) and (2) 186I 181P
237: Section 56 amended (Registration as participant in respect of activities listed in Schedule 3)
Replace section 56(5)
5: To avoid doubt, a person carrying out an activity on land to which section 179A
238: Section 57 amended (Applicant to be registered as participant in respect of activities listed in Schedule 4)
After section 57(4)(ba)
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
239: Section 58 amended (Removal from register of participants in respect of activities listed in Schedule 4)
In section 58(4) section 188(7) section 186A
240: New section 59AA inserted (Removal from register for persistent non-compliance (standard forestry participants only))
After section 59
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 in respect of an activity of standard forestry if—
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)
a: the person has submitted an emissions return under section 183 section 183A
b: the EPA has made an assessment under section 121 of the matters that should have been in the person’s emissions return, and—
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.
241: Section 60A amended (Exemption for participants in activity listed in Part 1 of Schedule 4)
1: In the heading to section 60A activity listed in Part 1 of Schedule 4 standard forestry or permanent forestry
2: In section 60A(1) an activity listed in Part 1 of Schedule 4 standard forestry or permanent forestry
242: Section 62 amended (Monitoring of emissions and removals)
In section 62
2: Subsection (1)(b)
a: section 191G
b: section 193F(3)
243: Section 63 amended (Liability to surrender units to cover emissions)
1: After section 63(1)
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 and 192L(3)
d: section 191F(2)
e: section 193F(1)
2: Repeal section 63(3)
3: After section 63(4)
5: See also sections 189E, 189F, and 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).
244: Section 64 amended (Entitlement to receive New Zealand units for removal activities)
Replace section 64(1A)
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
245: Section 65 amended (Annual emissions returns)
1: Replace section 65(1) and (1A)
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 or Part 2, 3, or 4 of Schedule 4 that the participant carried out in the immediately preceding year.
2: In section 65(2)(b) section 62(b) section 62(1)(b)
3: Repeal section 65(2A)
4: In section 65(4)(a) or recorded under subsection (2A)(b)
5: Replace section 65(5)
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 subsection (1)
246: Section 67 amended (Retention of emissions records)
1: In section 67(1)(b) section 62(b) section 62(1)(b)
2: In section 67(2)(a) section 62(d) section 62(1)(d)
3: In section 67(2)(b) an activity listed in Part 1 of Schedule 3 or 4 a forestry activity
247: Section 89 amended (EPA to publish certain information)
After section 89(1C)(b)
c: a penalty imposed under section 190E or 190H
248: Section 91 amended (Approval of unique emissions factors)
In section 91(1) section 62(b) section 62(1)(b)
249: Section 92 amended (Recognition of verifiers)
In section 92(1) section 62(a) section 62(1)(a)
250: Section 107 amended (Applications for emissions rulings)
1: In section 107(1)(c) 186F, 194C 180G, 181W, 190F, 191I, 192U, 193R, 194B,
2: In section 107(1)(ca)(ii) section 184(5)(a) section 180E(3)(a)
251: Section 109 amended (Making of emissions rulings)
In section 109(3) listed in Part 1 of Schedule 4 of standard forestry
252: Section 118 amended (Submission of final emissions returns)
After section 118(3)
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
253: Section 127 amended (Time bar for amendment of emissions returns)
1: In section 127(1)(a) under section 187 or 191 required by section 182A or 186B
2: In section 127(1)(b) section 189 or 193 section 183, 183A, 187, 188, 189, 192A, 192Q, 193A, or 193K
254: New section 128A and cross-heading inserted
After section 128 Notices required from participants
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, or 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 to amend an emissions return that was included; or
ii: section 121 to assess the matters that should have been in an emissions return that was not included; and
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
255: Section 129 amended (Offences in relation to failure to comply with various provisions)
In section 129(1)(b)(v) 192(3) 187(4)
256: Section 134A amended (Penalty for failing to submit emissions return by due date)
In section 134A(2) listed in Part 1 of Schedule 4 (for post-1989 forestry) of standard forestry or permanent forestry
257: Section 134C amended (Penalty for submitting incorrect emissions return)
In section 134C(2)(a) listed in Part 1 of Schedule 4 (for post-1989 forestry) of standard forestry or permanent forestry
258: Section 135A amended (Deferred payment arrangements for payments of penalties)
1: In section 135A(1) sections 134 to 134D , 190E, or 190H
2: In section 135A(1) section 135(1) or 190I(3)(a)
259: Section 136 amended (Penalties are debt due to Crown)
In section 136 sections 134 to 134D , 190E, or 190H
260: Section 137 amended (Interest for late payment)
In section 137(1)(a) sections 134 to 134D , 190E, or 190H
261: Section 138 amended (Obligation to pay penalty not suspended by appeal)
In section 138(1) sections 134 to 134D , 190E, or 190H
262: Section 138A amended (Penalties to be paid into Crown account)
1: In section 138A or 137 , 137, 190E, or 190H
2: In section 138A
2: However, this section is subject to a court order that a penalty imposed under section 190E or 190H
263: Section 153 amended (Effect of being member of consolidated group)
In section 153(6)(a)(ii) section 187 section 182A
264: Section 157A amended (Changes to unincorporated bodies that are participants)
In section 157A(4) section 192(1)(a) section 187(1)(a)
265: Section 159 amended (Recovery of costs)
In section 159(4) section 134 to 134D , 190E, or 190H
266: Section 163 amended (Regulations relating to methodologies and verifiers)
1: In section 163(1)(a) and (e)(i) section 62(a) section 62(1)(a)
2: In section 163(1)(b) section 62(b) section 62(1)(b)
267: Section 167 amended (Regulations relating to fees and charges)
1: In section 167(2)(c) section 194A section 194
2: In section 167(2)(c) section 194B section 194A
268: Section 168 amended (Other regulations)
1: In section 168(1)(ca) section 183 section 180B
2: In section 168(1)(j) section 62(d) section 62(1)(d)
3: After section 168(1)(n)
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)
269: Section 169 amended (Incorporation by reference in certain regulations)
In section 169(4) 186F, 194C 180G, 181W, 190F, 191I, 192U, 193R, 194B,
270: Section 178A amended (Option to pay money instead of surrendering, repaying, or reimbursing units)
1: In section 178A(1)(a)(i)(B) 183A(2)(b) 180C(2)(b)
2: In section 178A(1)(b)(i) activity on post-1989 forest land activity of standard forestry
271: Section 178C amended (Fixed price (for option to pay money instead of surrendering, repaying, or reimbursing units))
In section 178C(3) activity on post-1989 forest land activity of standard forestry
272: Part 5 replaced
Replace Part 5
5: Sector-specific provisions: forestry
1: Deforestation
179: Forest land to be treated as deforested in certain cases
1: Without limiting paragraph (a) of the definition of deforest
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)
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 in respect of the deforestation of a hectare of forest land whenever the EPA considers that—
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.
179A: Forest land may not be treated as deforested in certain cases
1: Despite section 179
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 subsection (1)(b)
3: If subsection (1)(c) see sections 182G, 186A, and 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.
2: Pre-1990 forest land
180: Participant in respect of pre-1990 forest land
1: If the activity listed in Part 1 of Schedule 3 is carried out, the landowner of the pre-1990 forest land is to be treated as the person carrying out the activity unless the EPA is satisfied that—
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)
3: To avoid doubt, for the purposes of this Act, no person, other than a landowner or, in the circumstances in subsection (2)
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)
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) does not apply.
7: To avoid doubt, this section does not apply—
a: to land to which section 179A
b: to land to which section 181N(3)
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)
a: be submitted to the EPA by—
i: the date prescribed by regulations made under section 168(1)(ca); or
ii: in the absence of a date prescribed by regulations made under section 168(1)(ca), the date specified by public notice given by the EPA; and
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)
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) subsection (3)(a)(ii)
6: The following rules apply for the purposes of determining, under subsection (2)(b)
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.
180C: Certain applications not otherwise permitted by section 180B
1: Despite section 180B(2)(c) and (3)(a) section 180B
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 in respect of the area under the pre-1990 forest land allocation plan.
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)
3: The units referred to in subsection (2)
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.
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 or, if there was no such document, in another instrument of title; and
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 with the power to apply under this section; and
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)
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 or, if there was no such document, in another instrument of title; and
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) subsection (1)(a) to (e)
a: declare the land to be exempt land; and
b: notify the applicant that the land has been declared exempt land.
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)
ii: the land is pre-1990 forest land; and
iii: the criteria specified in subsection (1)
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 or 133 in relation to an application under this section,—
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 of Schedule 3 when required to do so under this Act; and
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)
d: section 123(1) to (3) and the other provisions of this Act apply as if the assessment under paragraph (b)
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.
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 and 180F
2: See sections 3A and 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 of the Legislation Act 2019 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(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 180G(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
180H: Methodology for pre-1990 forest land cleared in 8 years or less
1: Subsection (2)
2: If this subsection applies, the participant must,—
a: for the purposes of sections 62(1)(b)
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 of Schedule 3 prescribed in regulations under section 163 must relate to the trees that are cleared from the pre-1990 forest land as part of the deforestation activity.
3: P90 offsetting land
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) or 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) P90 offset application
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).
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)
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)
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 if the person were carrying out an activity listed in Part 1 of Schedule 4 on that land; and 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
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) section 182C(2)
4: If subsection (2)(b)(i)
a: the notice requiring those units to be surrendered (referred to in section 63(4) paragraph (b)
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)
6: However, despite subsection (5) subsection (2)(b)(ii)
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 of Schedule 3 was carried out on any of the land in area 1 (the 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 and 65 in relation to that liability.
3: The emissions return required under subsection (2)(b) Liability to surrender allocation
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, open a holding account; and
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 Offsetting on P90 offset date
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
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 subparagraph (i)(B)
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 subsection (4)
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) or 192B(2)(c)(iii)
v: area 2 (non-ETS) land
A: is qualifying forest land on the P90 offset date (but see subsection (4)
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) or 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.
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).
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)
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
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) section 182C(2)
4: If subsection (2)(a)(i)
a: the notice requiring those units to be surrendered (referred to in section 63(4) paragraph (b)
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)
a: the effect of subsection (2)(a)(ii)
b: section 181M
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 to seek a review of that decision; and
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) subsection (2)
4: However, if the owners have previously given a revised notice under subsection (3)(b)(i) section 181H
a: subsection (3)(b)(ii) section 181H
b: section 181M
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.
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 to seek a review of that decision; and
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)
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) subsection (2)
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
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)
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 and 65 in relation to that liability.
4: To avoid doubt,—
a: the owner of the area 1 (offset) land incurs no liability under section 63 for the deforestation (because of 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 of Schedule 3).
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
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) P90 offsetting land
181P: Participant in respect of P90 offsetting land
If an activity listed in Part 1A of Schedule 3 is carried out on P90 offsetting land, the landowner is to be treated as the person carrying out the activity.
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 of Schedule 3 (a 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
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 in relation to that deemed deforestation; and
iii: if they do not have a holding account under section 18A, must open a holding account.
2: However, the number of units the owner is liable to surrender under subsection (1)(b)(i) subsection (3)
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)
5: The liability under subsection (1)(b)(i)
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.
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 as a result of the carrying out of the activity; but
ii: is liable to surrender the number of units calculated under subsection (2)
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)
4: The liability under subsection (1)(b)(ii)
5: The EPA must update the register under section 181U
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 Administrative matters
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
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.
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
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 and 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 of the Legislation Act 2019 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(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 181W(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
4: Post-1989 forest land (standard and permanent forestry)
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 to apply to the land.
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 in respect of an activity of standard forestry or permanent forestry that relates to—
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 in respect of an activity of standard forestry or permanent forestry in relation to exempt land that has been deforested 8 or less years ago unless the person—
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, had the land not been declared to be exempt land; and
B: calculated in accordance with the methodology or methodologies prescribed for the deforestation activity listed in Part 1 of Schedule 3 that were applicable when the land was deforested; and
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)
c: complies with subsection (1)
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 in respect of an activity of standard forestry or permanent forestry in relation to post-1989 forest land unless—
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, including any plan under that Act, or the Forests Act 1949 that was in force at the time the action was taken; and
b: if the post-1989 forest land is subject to a pest management plan under the Biosecurity Act 1993 that imposes requirements in respect of any forest species on the land, the person has—
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 in respect of an activity of standard forestry or permanent forestry in relation to post-1989 forest land where the forest species on the land is predominantly naturally regenerated tree weeds unless the EPA is satisfied that the risk of tree weed spread from the land that is the subject of the application for registration is low.
6: Subsection (5)
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.
182C: Registration as participant in standard or permanent forestry
1: An application under section 57 to be registered as a participant in respect of an activity of standard forestry or permanent forestry—
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, including any plan under that Act or the Forests Act 1949 that was in force at the time the action was taken; and
ii: if the post-1989 forest land is subject to a pest management plan under the Biosecurity Act 1993 that imposes requirements in respect of any forest species on the land, the applicant has—
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 or otherwise):
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 or otherwise) may apply to the EPA to add any carbon accounting area or areas to the post-1989 forest land in respect of which the person is recorded as a participant.
4: An application under subsection (3)
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 in relation to an activity of standard forestry or permanent forestry, the EPA must notify the person under section 57(6)
b: receives an application to add a carbon accounting area and subsection (5)
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) subsection (6)(b)(ii)
8: See also sections 182D and 182E
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.
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.
182F: Removing registration as participant in standard or permanent forestry
1: This section sets out some situations in which section 186 or 186B
2: Section 186
a: receives an application under section 58 for the removal of a person’s name from the register as a participant in standard forestry; or
b: is satisfied under section 59(2) that the person has ceased to carry out standard forestry or permanent forestry.
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)
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
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) section 186 or 186B Provisional and final forestry emissions returns
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
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)
a: section 191G(b)
b: section 193F(3)(b)
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)
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)
a: emissions and removals from the CAA1; and
b: the unit balance of the CAA1. Calculations for provisional and final forestry emissions returns
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)
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.
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 or 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 or 189G Recalculation based on unit balance (see section 185A
4: Finally, if—
a: the h calculated under subsection (1) subsection (3)
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
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.
184C: Total liability or entitlement for all CAA1s in emissions return
A person’s total liability or entitlement Total liability or entitlement and unit balance has effect for all emissions returns
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. New unit balance report for certain applications or notices
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)
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. Maximum liability is unit balance of carbon accounting area
185A: Maximum liability is unit balance of carbon accounting area
Despite section 63, a person who is or was a participant in respect of an activity of standard forestry or permanent forestry is not liable to surrender more units in relation to any carbon accounting area or part of a carbon accounting area than the unit balance of that carbon accounting area or part of a carbon accounting area. Ceasing participation in standard or permanent forestry
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.
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) section 182G
3: The EPA must amend the register kept under section 57, and the records of carbon accounting areas kept under section 182C(2)
4: See sections 182D and 182E
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
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) paragraph (c)
3: However, subsection (2)(c) and (f) section 182G
4: The EPA must amend the register kept under section 57, and the records of carbon accounting areas kept under section 182C(2)
5: See sections 182D and 182E
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, and the records of carbon accounting areas kept under 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. Transmission of interest relating to standard or permanent forestry
187: Transmission of interest in post-1989 forest land
1: This section applies—
a: if, subject to section 157A(4), a person registered as a participant in respect of an activity of standard forestry or permanent forestry and who is described in the first column of Part A Part A Part A
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 Part B
c: if an interest described in the second column of Part C Part C 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) Part B
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) transferor
c: each of the persons described in the third column of the table in subsection (1) transferee
d: transmitted interest
i: in the circumstances described in subsection (1)(a)
ii: in the circumstances described in subsection (1)(b)
iii: in the circumstances described in subsection (1)(c)
e: date of transmission
i: in the circumstances described in subsection (1)(a)
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)
iii: in the circumstances described in subsection (1)(c)
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)
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)
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), but subject to section 187D
b: a transferor is not required to notify the EPA separately under section 59 if the result of the transfer is that the transferor is ceasing to carry out the activity; and
c: the EPA is not required to notify any person under section 182C(6)(a)
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, and the records of carbon accounting areas kept under section 182C(2) Non-compliance for transmitted interests
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) section 187C(4) and (5)
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)
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)
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) subsection (5) 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.
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)
b: use subsections (4) and (5)
c: use subsections (6) and (7) 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 to amend an emissions return that was included; or
ii: section 121 to assess the matters that should have been in an emissions return that was not included; and
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 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 and 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 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 and 182E
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, and the records of carbon accounting areas kept under 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, and the records of carbon accounting areas kept under section 182C(2) Application to reconfigure carbon accounting areas for standard or permanent forestry
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)
a: section 191H
b: section 192G
c: section 193H
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)
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.
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, and the records of carbon accounting areas kept under section 182C(2)
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 Application to change activity on post-1989 forest land
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) or 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)
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)
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.
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)
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.
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, and the records of carbon accounting areas kept under section 182C(2)
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)
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).
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)
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
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)
4: However, if the s calculated under subsection (2) subsection (3) 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
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)
4: The liability to surrender units equal to the s calculated under subsection (2) subsection (3)
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
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)
4: The liability to surrender units equal to the s calculated under subsection (2) subsection (3)
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 Restrictions for permanent forestry land
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
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.
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 and 186A sections 186B and 186C
3: The provisions referred to in subsection (2)(b)
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.
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)
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
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.
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 and 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 of the Legislation Act 2019 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(3) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 190F(4) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
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 and 186A
c: the EPA must apply section 190H
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.
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 or 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
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) subsection (2)
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.
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, and the records of carbon accounting areas kept under section 182C(2)
5: Averaging accounting methodology
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)
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 and 64); and
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 and 191F
b: will vary depending on whether the land has a first rotation forest or a subsequent rotation forest ( see section 191C
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
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 subsection (5)
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
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) section 191I
5: Subsection (3)(b)(ii) subsection (3)(b)(i)
6: Land has a subsequent rotation forest
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
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).
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.
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.
191H: Restriction on reconfiguration
Carbon accounting areas cannot be reconfigured (whether by application under section 188
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)
4: However, regulations cannot be made under subsection (1)(c)(i)
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)
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 and 3B
8: See also
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 of the Legislation Act 2019
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(9) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 191I(10) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
6: P89 offsetting
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) or 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) P89 offset applications
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 paragraph (b)
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).
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)
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; and
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
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, and the records of carbon accounting areas kept under section 182C(2)
4: If subsection (2)(b)(i)
a: the notice requiring those units to be surrendered (referred to in section 63(4) paragraph (b)
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)
6: However, despite subsection (5) subsection (2)(b)(ii) P89 offsetting (approved) land
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
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 and 192G
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) 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) section 191C
192G: Reconfiguration restrictions
1: A carbon accounting area containing P89 offsetting (approved) land cannot be reconfigured (whether by application under section 188 subsection (2)
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 and 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
192H: No transfers to permanent forestry
A participant for a carbon accounting area containing P89 offsetting (approved) land cannot apply under section 189 Offsetting on P89 offset date
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) subsection (4)
b: for subsection (1)(b) 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
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) or 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
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
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) subsection (3) a 3 is the area of the CAA3 (in hectares) b 3 is the total area of all of the CAA3s (in hectares).
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)
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).
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)
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 or 192U
4: The EPA must amend the register kept under section 57, and the records of carbon accounting areas kept under section 182C(2)
5: After the P89 offset date, section 179 subsection (1)(a)
6: Subsection (5) section 179 Action if criteria for initial P89 offset application not met
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) section 192B(2)(h) 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 to seek a review of the decision to make the declaration.
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, and the records of carbon accounting areas kept under section 182C(2)
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
192R: Criteria for land substitution
1: If a person submits an application under section 192Q
a: if satisfied that the criteria in subsection (2)
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
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)
a: the notice requiring those units to be surrendered (referred to in section 63(4) paragraph (b)
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)
5: However, despite subsection (4) subsection (2)(b)(ii)
6: The EPA must amend the register kept under section 57, and the records of carbon accounting areas kept under section 182C(2)
7: To avoid doubt, the substitution of land under this section does not affect the P89 offset date for the CAA1.
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 to seek a review of that decision. Regulations
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 and 3B
6: See also
7: Regulations under this section—
a: are secondary legislation ( see Part 3 of the Legislation Act 2019
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(7) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
7: Temporary adverse events
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 subsection (2) 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 Application
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).
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)
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
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, and the records of carbon accounting areas kept under section 182C(2) Temporary adverse event land
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.
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
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) sections 189F and 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.
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)
3: To avoid doubt, when subsection (1) section 191C
193H: Reconfiguration restrictions
1: A carbon accounting area containing temporary adverse event land cannot be reconfigured (whether by application under section 188 subsection (2)
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 and 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)
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 Re-establishment
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
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
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, and the records of carbon accounting areas kept under section 182C(2) Carbon recovery
193M: Carbon recovery criteria
A hectare of temporary adverse event land achieves carbon recovery section 193R
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 193K section 193L
4: If the participant has given notice in relation to land under section 193K Ceasing to be temporary adverse event land before recovery
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.
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 subsection (1)(a) or (b) 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
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) Permanent forestry
6: If the activity on the land is permanent forestry, see also section 190C(2) Regulations
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 and 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)
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 and 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 of the Legislation Act 2019 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(6) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 193R(8) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
8: General
Input returns may be submitted before actual emissions returns
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
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).
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 paragraphs (b) to (d)
2: See sections 3A and 3B
3: Regulations under this section are secondary legislation ( see Part 3 of the Legislation Act 2019
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 of the Legislation Act 2019
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) 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(1)(e) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 194B(3) replaced 28 October 2021 section 3 Secondary Legislation Act 2021 Section 194B(3A) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Notification of status of forest land
195: Notification of status of forest land
1: The EPA must, if required by regulations made under section 168, notify the following persons of the details of the land that the EPA is satisfied is a type of land described in subsection (2)
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; and
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)
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) Information about status of forest land
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)
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)
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. Forestry classifications of land
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
ii: by the decision of the District Court or High Court under section 145 or 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.
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
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.
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
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
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, or 196D
b: by the decision of a court on appeal under section 145 or 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)
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 or 196D
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)
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) also applies to regulations made under subsection (1)(b)(ii)
4: See sections 3A and 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 of the Legislation Act 2019 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(5) amended 28 October 2021 section 3 Secondary Legislation Act 2021 Section 196F(6) inserted 28 October 2021 section 3 Secondary Legislation Act 2021 Grant-funded forests
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
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)
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 of the Legislation Act 2019 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(5) inserted 28 October 2021 section 3 Secondary Legislation Act 2021
273: Part 6 heading repealed
Repeal the Part 6
274: Schedule 1AA amended
1: In Schedule 1AA clause 5(2)
3: If the thing was done in relation to regulations under section 193R
2: In Schedule 1AA clause 10(3)
3: Section 89A
a: applies in respect of emissions returns for an activity of standard forestry or permanent forestry for emissions or removals on or after 1 January 2023; but
b: does not apply in respect of any other emissions returns in relation to post-1989 forest land during a mandatory emissions returns period commencing before 1 January 2023.
3: In Schedule 1AA clause 12(3)(a)
a: may submit a single emissions return under section 183
4: In Schedule 1AA clause 13(a) and (b)
a: both—
i: is in respect of an activity listed in Part 1 of Schedule 4; and
ii: does not impose a net liability to surrender or repay units for all of the carbon accounting areas covered by the return (for example, under section 189(8)); or
b: is prepared under clause 34
5: In Schedule 1AA clause 17(2)(m) Removal from register for persistent non-compliance (by standard forestry participant)
n: new section 59AA(1)(c), (3), and (4) section 134 section 59AA(1)(c)
6: In Schedule 1AA subpart 3
4: Provisions that commence on 1 January 2023
Persistent non-compliance
18: Deregistering participants for persistent non-compliance
The EPA must not remove the name of a person from the register in respect of an activity under section 59AA Time bar for amendment of emissions returns
19: Time bar for amendment of emissions returns
If an emissions return was required or permitted by a section to which section 127(1) applied immediately before the commencement of this clause, section 127 continues to apply, as it was immediately before the commencement of this clause, in relation to that emissions return. Tree weeds
20: Existing exemptions for deforestation of land with tree weeds
1: This clause applies to land for which, immediately before the commencement of this clause, there is an exemption under section 184.
2: The exemption applies as if it had been granted under this Act as amended by the amendment Act, so that the conditions in former section 184(6) no longer apply.
21: Carbon accounting areas with tree weeds already added to post-1989 forest land
Section 182C(5)(b) Existing emissions returns
22: Emissions returns already submitted or assessed
If an emissions return was submitted by a person, or assessed by the EPA under section 121, before the commencement of this clause, the emissions return must be dealt with in accordance with this Act as it was immediately before the commencement of this clause. P90 offsetting land
23: Interpretation
In clauses 23 to 27 commencement date former new offsetting provisions subpart 3 of Part 5 section 179A(1)(b)
24: New offsetting provisions apply to existing offsets
1: Anything done or omitted to be done to, or in relation to, land under former sections 186A to 186J and that is of ongoing effect is to be treated, on and after the commencement date, as having been done or omitted to be done under the new offsetting provisions.
2: For the purposes of subclause (1)
25: Existing approved applications may be amended to include new land
1: The owners of pre-1990 forest land that is the subject of an existing approved application may apply to the EPA to substitute land of the kind referred to in section 181B(2)(b)(ii), (iii), or (iv)
2: The application must—
a: identify the existing approved offset land that is to be replaced ( area A
b: identify the land that is to be substituted for area A ( area B
c: include—
i: any information in relation to area B that would be required in an application under section 181A
ii: any other information prescribed in regulations made under section 181W
3: The application must be made jointly by all of the persons who, on the date of the application, own any of the area 1 (approved) land, area 2 (approved) land, or land in area B.
4: The application must—
a: be signed by all of the applicants; and
b: be submitted before the P90 offset date for the existing approved application; and
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).
5: In this clause, existing approved application
a: that was approved before the commencement date; but
b: in relation to which a declaration under former section 186D had not been given to the EPA before the commencement date.
6: To avoid doubt, nothing in this clause prevents a person who submitted an application under former section 186A that has not yet been approved from withdrawing or amending the application.
26: Approval of application
1: If a person submits an application under clause 25
a: if satisfied that the criteria in subclause (2)
b: otherwise, may decline the application.
2: The criteria are that—
a: the land in area B is land that meets the criteria in section 181B(2)(b) (other than subparagraph (i)) and (c)
b: the area 2 (approved) land under the existing application less area A plus area B ( revised offsetting land section 181B(2)(d) and (e)
c: the EPA is satisfied that if all of the revised offsetting land were to become area 1 (offset) land, the P90 offset release criteria are likely to be met on the P90 offset date:
d: any other criteria prescribed in regulations made under section 181W
3: If the EPA approves the application,—
a: area A ceases to be part of the area 2 (approved) land; and
b: area B becomes part of the approved offset land; and
c: this Act applies as if the existing application had been approved (on its original approval date) in relation to the revised offsetting land.
27: Change of terminology: pre-1990 offsetting forest land to P90 offsetting land
A reference (in an enactment or other document) to pre-1990 offsetting forest land includes, in relation to a time before the commencement date, a reference to P90 offsetting land, unless the context otherwise requires. Non-compliance for transmitted interests
28: Non-compliance for transmitted interests
1: Section 187B(1) to (3)
2: Section 187D
a: does not apply to a final transmission whose date of transmission was before the commencement of this clause; but
b: applies to a final transmission whose date of transmission is on or after the commencement of this clause, even if the first transmission, and any other transmission of interest between the first and final transmissions, was before that commencement. Changing of activity on post-1989 forest land
29: Previous changing of activity on post-1989 forest land
1: If a person satisfied former section 188(9) before the commencement of this clause, they must be treated as having had an application under section 189
2: See sections 189(7)(b) and 190(2)(c)(ii)
30: Application to change from standard to permanent forestry
1: This clause applies to a person who, in the period starting on 1 January 2018 and ending on 31 December 2023,—
a: becomes registered as a participant carrying out standard forestry in respect of any post-1989 forest land, whether or not registered in respect of that land before; and
b: has an application under section 189
2: For each CAA1 covered by the emissions return that accompanied the application, the person may surrender any units that are equal in number to the unit balance of the CAA1.
3: The deadline for surrendering the units is 60 working days after the person submits the application.
4: For each unit surrendered, the person becomes entitled to a unit for removals from permanent forestry.
31: All PFSI activity is changed to permanent forestry in 2024
1: This clause applies to a person’s forest land that a forest sink covenant is registered against immediately before 1 January 2024 (the PFSI land
2: On 1 January 2024,—
a: the EPA must apply sections 189 to 189B section 189
b: the EPA may apply section 121 for the purposes of the application. Carbon accounting areas (averaging)
32: Emissions returns for carbon accounting area (averaging) in third mandatory emissions return period
1: This clause applies in relation to a carbon accounting area ( CAA1 section 191B(2)
2: In any emissions return in respect of a period in the third mandatory emissions return period, the calculations and assessments in relation to the CAA1 must be made as if—
a: the CAA1 had been a carbon accounting area (averaging) since the beginning of the period covered by the emissions return; and
b: the amendment Act had come into force before that date.
33: Carbon accounting areas constituted in 2019–2022: opting in to averaging
1: A participant in an activity of standard forestry on post-1989 forest land in 1 or more carbon accounting areas (each a CAA1
a: it was constituted—
i: by a person being registered as a participant in respect of the land (as referred to in former section 188(1) or section 182C
ii: by the land being added as a carbon accounting area under former section 188(3) or section 182C(3)
b: the application to register the participant, or add the carbon accounting area, was made after 31 December 2018 but before 1 January 2023:
c: its constitution date is before 1 January 2023:
d: it meets the requirements of section 191B(2)(b)
e: before the notice is given under this clause, no final forestry emissions return required by section 183A
f: before the notice is given under this clause, no other emissions return has been (or should have been) submitted covering the CAA1 in relation to a period after 1 January 2023.
2: The notice given under this clause must—
a: specify the CAA1s to which it relates; and
b: include an emissions return prepared under clause 34
3: The notice must—
a: be signed by the participant; and
b: be submitted on or before 30 June 2023; and
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).
4: An emissions return prepared under clause 34 section 183A
5: In this clause, former
34: Preparing emissions return for carbon accounting areas changing to averaging
1: An emissions return prepared under this clause must—
a: specify—
i: the CAA1s that the return covers; and
ii: if the land in a CAA1 has not all been in the CAA1 for the whole of the emissions return period, all of the carbon accounting areas that any of the land has been part of during the emissions return period (the predecessor CAAs
b: for each CAA1,—
i: specify the activity for which the person is a participant on the CAA1s; and
ii: specify the emissions return period that applies under subclause (2)
iii: specify the emissions and removals during the emissions return period from all of the land now in the CAA1 (whether they occurred when the land was part of the CAA1 or part of a predecessor CAA); and
iv: set out the calculation under clause 35(1)
v: set out the averaging unit balance determined under clause 35(3)
vi: set out the calculation under clause 35(4)
c: set out the calculation under clause 35(5)
2: The emissions return period
a: starts on the later of—
i: 1 January 2018; and
ii: the date on which any of the land in the CAA1 became post-1989 forest land; and
b: ends on 31 December 2022.
35: Calculations for CAA1s changing to averaging
1: A person’s averaging liability or entitlement a a = r − e where— r is the number of units required for the removals from the CAA1 during the emissions return period, determined in accordance with subclause (2) e is the number of units required for the emissions from the CAA1 during the emissions return period, determined in accordance with subclause (2)
2: The values of variables r and e in subclause (1)
a: all of the land now in the CAA1 had been a single carbon accounting area since the beginning of the emissions return period; and
b: that carbon accounting area had been a carbon accounting area (averaging) since the beginning of the emissions return period; and
c: the amendment Act had come into force before the beginning of the emissions return period.
3: The averaging unit balance
a: if the person’s averaging liability or entitlement for the CAA1 is positive, that amount; or
b: if the person’s averaging liability or entitlement for the CAA1 is negative, zero.
4: A person’s actual liability or entitlement h h = u − c where— u is the averaging unit balance of the CAA1 under subclause (3) c is—
a: the previous unit balance of the CAA1 calculated under the last emissions return submitted for the CAA1; or
b: if there is no such return, zero.
5: A person’s total liability or entitlement t t = h n where— h n is the sum of the person’s actual liability or entitlement for each CAA1.
36: Effect of changing to carbon accounting areas (averaging)
1: This clause applies if the EPA decides that a notice under clause 33
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 that number of New Zealand units; or
b: a negative number, the person is liable to surrender that number of units.
3: The unit balance of each CAA1 covered by the emissions return is updated to the averaging unit balance calculated under the return.
4: Each CAA1 covered by the notice becomes a carbon accounting area (averaging) and is to be treated as having become so on 1 January 2023.
275: Schedule 3 amended
1: In Schedule 3 Pre-1990 offsetting forest land P90 offsetting land
2: In Schedule 3 pre-1990 offsetting forest land P90 offsetting land
276: Schedule 4 amended
In Schedule 4
Part 1: Standard forestry removal activities
(applies on and after 1 January 2008)
Any of the following activities in respect of post-1989 forest land, where the person carrying out the activity has chosen this Part (instead of Part 1A
a: owning the land, other than post-1989 forest land that is subject to a forest sink covenant:
b: holding a registered forestry right for the land or being the leaseholder under a registered lease of the land, other than post-1989 forest land that is subject to a forest sink covenant:
c: being a party to a Crown conservation contract in respect of the land.
Part 1A: Permanent forestry removal activities
(applies on and after 1 January 2023)
Any of the activities specified in Part 1 Part 1
5: Amendments that commence on 1 January 2024
277: Schedule 4 amended
In Schedule 4 Part 1, paragraphs (a) and (b) , other than post-1989 forest land that is subject to a forest sink covenant
2: Consequential amendments to other enactments
1: Consequential amendments that commence on day after Royal assent
278: Climate Change (Fishing Allocation Plan) Order 2010 revoked
The Climate Change (Fishing Allocation Plan) Order 2010 2020-06-23 Climate Change (Fishing Allocation Plan) Order 2010
279: Consequential amendments
The enactments specified in Schedule 3 2020-06-23 Climate Change Response (Emissions Trading) Amendment Act 2008 Income Tax Act 2007 Summary Proceedings Act 1957 Climate Change (Forestry Sector) Regulations 2008 Climate Change (Pre-1990 Forest Land Allocation Plan) Order 2010 Climate Change (Stationary Energy and Industrial Processes) Regulations 2009 Climate Change (Unit Register) Regulations 2008 Forests (Permanent Forest Sink) Regulations 2007
2: Consequential amendments that commence on 30 November 2020
280: Consequential amendments
The enactments specified in Schedule 4 2020-11-30 Income Tax Act 2007 Climate Change (Unit Register) Regulations 2008
3: Consequential amendments that commence on 1 January 2023
281: Consequential amendments
The enactments specified in Schedule 5 2023-01-01 Forests Act 1949
4: Revocation and consequential amendments that commence on 1 January 2024
282: Forests (Permanent Forest Sink) Regulations 2007 revoked
The Forests (Permanent Forest Sink) Regulations 2007 2024-01-01 Forests (Permanent Forest Sink) Regulations 2007
283: Consequential amendments
The enactment specified in Schedule 6 2024-01-01 Forests Act 1949