Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
Public Act |
2024 No 50 |
|
Date of assent |
25 November 2024 |
|
Commencement |
see section 2 |
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024.
2 Commencement
This Act comes into force on the day after Royal assent.
Part 1 Amendments to Climate Change Response Act 2002 to remove agricultural obligations
3 Principal Act
This Part amends the Climate Change Response Act 2002.
4 Section 2A amended (Application of Schedules 3 and 4)
(1)
Replace section 2A(1) with:
(1)
Any provision in this Act that imposes an obligation on, or provides an entitlement to, a person in respect of an activity listed in Schedule 3 or 4—
(a)
does not apply to that person unless the Part or subpart in Schedule 3 or 4 in which the activity is listed applies; and
(b)
applies subject to sections 178A and 178B.
(2)
Repeal section 2A(5A) to (5D).
5 Section 3A amended (Treaty of Waitangi (Te Tiriti o Waitangi))
Repeal section 3A(b)(i) and (xi).
6 Section 3B amended (Consultation about certain regulations, orders, and notices)
Repeal section 3B(1)(j) and (r).
7 Section 4 amended (Interpretation)
In section 4(1), repeal the definitions of animal material, animal product, animal welfare export certificate, dairy processing, eligible activity, eligible agricultural activity, and farm dairy.
8 Section 5J amended (Commission’s functions)
Repeal section 5J(ha).
9 Section 30GB amended (Regulations about limits and price control settings for units)
In section 30GB(8), definition of New Zealand units available by other means, after “eligible”
, insert “industrial”
.
10 Section 30IA amended (Minister must obtain greenhouse gas reductions to match certain excess units)
In section 30IA(1)(b), after “eligible”
, insert “industrial”
.
11 Section 54 amended (Participants)
(1)
In section 54(1)(a)(i), replace “204, or 213”
with “or 204”
.
(2)
In section 54(2), replace “204, or 213”
with “or 204”
.
12 Section 59 amended (Removal from register of participants in respect of activities listed in Schedules 3 and 4)
In section 59(3), after “211”
, insert “and Part 4 of Schedule 1AA”
.
13 Section 65 amended (Annual emissions returns)
Replace section 65(4) with:
(4)
Following the submission of an annual emissions return under subsection (1), a participant must, by 31 May, surrender the number of units listed in the participant’s assessment under subsection (2)(c)(i).
14 Cross-heading above section 80 amended
In the cross-heading above section 80, delete “and agriculture”
.
15 Section 86 amended (Applications for allocation of New Zealand units for industry and agriculture)
(1)
In the heading to section 86, delete “and agriculture”
.
(2)
In section 86(1), delete “or eligible agricultural activity”
.
(3)
Repeal section 86(1A)(c).
(4)
Replace section 86(2)(b) with:
(b)
contain, as relevant, the applicant’s assessment of their—
(i)
provisional allocation entitlement in respect of the year calculated in accordance with section 81:
(ii)
final allocation entitlement in respect of the previous year calculated in accordance with section 83(2):
(iii)
annual allocation adjustment relating to the previous year calculated in accordance with section 83(3) or 84(4):
(iv)
closing allocation adjustment for the year calculated as required under section 84(1)(b); and
16 Section 86B amended (Decisions on applications for allocations of New Zealand units to industry)
In section 86B(5) and (6)(b), replace “eligible activity”
with “eligible industrial activity”
.
17 Section 86C amended (Reconsideration of allocation decisions)
In section 86C(1), delete “or 86BA”
.
18 Section 86D amended (Retention of records and materials in relation to allocation)
In section 86D(1) and (1)(c), after “eligible”
, insert “industrial”
.
19 Section 86E amended (EPA may require further information for purpose of carrying out functions under subpart)
In section 86E(1) and (4), delete “or 86BA”
.
20 Section 87 amended (Functions of EPA)
In section 87(1)(ba), delete “and agriculture”
.
21 Section 107 amended (Applications for emissions rulings)
In section 107(1)(c), delete “161G,”
.
22 Section 150 amended (Formation of consolidated group)
In section 150(2)(b), (4)(c)(ii), (6A)(c), and (6B), replace “eligible activity”
with “eligible industrial activity”
.
23 Section 151 amended (Changes to consolidated groups)
(1)
In section 151(2)(b)(ii) and (c)(ii), (6)(c), and (7)(c), after “eligible”
, insert “industrial”
.
(2)
In section 151(6), replace “eligible activity”
with “eligible industrial activity”
.
24 Section 151A amended (Addition of activities to consolidated groups)
In section 151A(2)(b)(ii), after “eligible”
, insert “industrial”
.
25 Section 153 amended (Effect of being member of consolidated group)
(1)
In section 153(1)(d), replace “eligible activity”
with “eligible industrial activity”
.
(2)
In section 153(5), after “eligible”
, insert “industrial”
.
26 Section 156 amended (Effect of ceasing to be member of consolidated group)
In section 156(a) and (b), after “eligible”
, insert “industrial”
.
27 Section 156A amended (Removal of activities from consolidated groups)
In section 156A(4), after “eligible”
, insert “industrial”
.
28 Section 157 amended (Unincorporated bodies)
(1)
In section 157(1)(a), (2)(b) and (b)(i), and (6), after “eligible”
, insert “industrial”
.
(2)
In section 157(1)(b), replace “, 204, or 213”
with “or 204”
.
(3)
In section 157(6)(b), replace “eligible activity”
with “eligible industrial activity”
.
29 Section 169 amended (Incorporation by reference in certain regulations)
In section 169(4), delete “161G,”
.
30 Part 5C repealed
Repeal Part 5C.
31 Sections repealed
Repeal the sections specified in Schedule 1.
32 Schedule 1AA amended
(1)
In Schedule 1AA, clauses 11(2) and 39(6), after “eligible”
, insert “industrial”
.
(2)
In Schedule 1AA,—
(a)
insert the Part set out in Schedule 2 of this Act as the last Part; and
(b)
make all necessary consequential amendments.
33 Schedule 3 amended
Repeal Part 5 of Schedule 3.
34 Schedule 5 repealed
Repeal Schedule 5.
Part 2 Consequential revocations and amendments to other legislation
35 Secondary legislation revoked
(1)
The Climate Change (Agriculture Sector) Regulations 2010 (SR 2010/335) are revoked.
(2)
The Climate Change (Animals–Farmer Activities) Order 2023 (SL 2023/282) is revoked.
Related amendments to Climate Change (General Exemptions) Order 2009
36 Principal order
37 Clause 3 amended (Interpretation)
In clause 3, revoke the definitions of calf, cow, heifer, milk solids, slaughter point, synthetic fertilisers containing nitrogen, and vealer.
38 Clauses 8 to 11 revoked
Revoke clauses 8 to 11.
39 Schedule 1 amended
In Schedule 1, revoke the items relating to clauses 8, 10, and 11.
Schedule 1 Sections repealed
Schedule 2 New Part 4 inserted into Schedule 1AA
Part 4 Provisions relating to Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
43 Interpretation
In this Part,—
commencement date means the commencement date of the Climate Change Response (Emissions Trading Scheme Agricultural Obligations) Amendment Act 2024
deregistration date means the date that the EPA enters in the register kept under section 56(3) to record when a participant has been removed from the register
effective removal date means the date on which a participant ceases to be a participant under this Act (which is the commencement date for the purposes of this Part).
44 Existing obligations on agriculture participants
(1)
On and from the commencement date, persons who were participants under section 54(1)(a) by virtue of an activity or activities listed in Part 5 of Schedule 3 will cease to be participants under this Act, subject to subclause (2).
(2)
To avoid doubt,—
(a)
section 54(4) continues to apply to those persons referred to in subclause (1), but only to the extent that it applies to activities carried out before the commencement date; and
(b)
those persons referred to in subclause (1) are not required to submit any emissions returns (as defined in section 4(1)) for activities listed in Part 5 of Schedule 3 that were carried out in the 2024 calendar year or any period after the commencement date.
(3)
For the purposes of section 67(2)(c) if it applies under section 54(4) (as referred to in subclause (2)(a)), the 7-year period starts from 1 January 2025.
(4)
Subclauses (1) to (3) apply regardless of when those persons referred to in subclause (1) are removed from the register under clause 45.
45 Removal of agriculture participants from register
(1)
This clause applies to the EPA.
(2)
Within 6 months of the commencement date, the EPA must remove the names of participants who had been entered on the register in accordance with section 56 for activities listed under Part 5 of Schedule 3.
(3)
In order to avoid triggering automated 2024 returns notifications being sent to the participants referred to in subclause (2), the EPA may use 31 December 2023 as the deregistration date.
(4)
The use of 31 December 2023 as the deregistration date in subclause (3) is for administrative purposes only and does not affect the effective removal date.
(5)
As soon as is reasonably practicable after removing a participant’s name, the EPA must notify the person that the person’s name has been removed from the register in respect of the relevant activity under Part 5 of Schedule 3.
(6)
The EPA must not register any new participants who, before the commencement date, had provided notice under section 56 for activities in respect of Part 5 of Schedule 3, and who have not yet been entered on the register.
(7)
To avoid doubt, this clause does not affect—
(a)
the names of participants on the register for activities other than agriculture listed in Schedule 3 or 4; or
(b)
the option to request the closure of a holding account under section 18B.
(8)
This clause overrides sections 59 and 118.
Legislative history
20 June 2024 |
Introduction (Bill 62–1) |
|
25 June 2024 |
First reading and referral to Primary Production Committee |
|
24 October 2024 |
Reported from Primary Production Committee |
|
5 November 2024 |
Second reading |
|
7 November 2024 |
Committee of the whole House |
|
21 November 2024 |
Third reading |
|
25 November 2024 |
Royal assent |
This Act is administered by the Ministry for the Environment.