Climate Change Response (Moderated Emissions Trading) Amendment Bill
Hon Dr Nick Smith moved, and the question was proposed, That the Climate Change Response (Moderated Emissions Trading) Amendment Bill be now read a second time.
On the question, That the bill be now read a second time, the votes were recorded as follows:
Motion agreed to.
The Climate Change Response (Moderated Emissions Trading) Amendment Bill was read a second time and set down for Committee stage forthwith.
The Speaker declared the House in Committee for consideration of the Climate Change Response (Moderated Emissions Trading) Amendment Bill.
(In the Committee)
Part 1 read.
Chris Tremain moved, That the question be now put. The Chairperson declined the motion.
The sitting was suspended between 10.00 pm and 9.00 am.
Wednesday, 25 November 2009
Part 1 read again.
Chris Tremain moved, That the question be now put. The Chairperson declined the motion.
Craig Foss moved, That the question be now put.
On the question, That the question be now put, the votes were recorded as follows:
Resolved, That the question be now put.
The following amendments to amendments were put:
Supplementary Order Paper No 98:
To add after clause 5, new section 2B(3), the following subsection:
“(4) Before recommending the making of an Order in Council under section 2A(8) or (9), the Minister must consult, or be satisfied that the chief executive has consulted, persons (or their representatives) that appear to the Minister or the chief executive likely to have an interest in the order.”
To insert the following clause after new clause 5A:
5B New section 3A inserted
The following section is inserted after section 3:
“3ATreaty of Waitangi (Te Tiriti o Waitangi)
In order to recognise and respect the Crown’s responsibility to give effect to the principles of the Treaty of Waitangi,—
“(a) with respect to section 2B (which relates to Orders in Council in relation to Part 5 of Schedule 3), before recommending the making of an Order in Council under section 2A(8) or (9), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the order:
“(b) with respect to section 76 (which relates to consultation on a pre-1990 forest land allocation plan), before making a recommendation under section 73, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the pre-1990 forest land allocation plan:
“(c) with respect to section 77 (which relates to consultation on a fishing allocation plan), before making a recommendation under section 75, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the fishing allocation plan:
“(d) with respect to section 161 (which relates to the appointment and conduct of a review panel),—
“(i) the Minister must, when appointing members to a review panel under section 160(6), ensure that the review panel has at least 1 member who, in the Minister’s opinion, has the appropriate knowledge, skill, and experience relating to the principles of the Treaty of Waitangi and tikanga Māori to conduct the review; and
“(ii) the review panel must consult with the representatives of iwi and Māori that appear to the panel likely to have an interest in the review; and
“(iii) the terms of reference for the review panel must incorporate reference to the principles of the Treaty of Waitangi:
“(e) with respect to section 161G (which relates to regulation-making powers in relation to eligible agricultural activities), before recommending the making of a regulation under section 16lG(l), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:
“(f)with respect to section 162 (which relates to regulations adding further activity to Part 2 of Schedule 4), before recommending the making of a regulation under section 162(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:
“(g) with respect to section 163 (which relates to regulations relating to methodologies and verifiers), before recommending the making of a regulation under section 163(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:
“(h) with respect to section 164 (which relates to regulations relating to unique emissions factors), before recommending the making of a regulation under section 164, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation:
“(i) with respect to section 224 (which relates to the gazetting of targets), before the Minister responsible for the administration of this Act may set, amend, or revoke a target, the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the target:
“(j) with respect to section 225 (which relates to regulations relating to targets), before recommending the making of a regulation under section 225(1), the Minister must consult, or be satisfied that the chief executive has consulted, representatives of iwi and Māori that appear to the Minister or chief executive likely to have an interest in the regulation.”
(Rahui Katene)
Resolved, That the amendments to the amendments be agreed to.
Supplementary Order Paper No 98:
To insert in clause 6(2), new section 4(1), before the definition of animal welfare export certificate, the following definition:
“1990 baseline means the level of New Zealand emissions in 1990”.
To insert after the definition of animal welfare, the following definition:
“Committee means the Climate Change Advisory Committee established by section 245”.
To insert after the definition of Crown holding account, the following definitions:
“emissions for which New Zealand is responsible, in relation to a period, means net New Zealand emissions reduced by the quantity of Kyoto Units retired during that period
“intermediate target means a target set for the level emissions for which New Zealand is responsible for a target period under section 225
“New Zealand emissions means emissions of greenhouse gases from sources in New Zealand
“New Zealand removals means removals of greenhouse gases from the atmosphere due to land use, land-use change or forestry activities in the New Zealand
“net New Zealand emissions in respect of a period means the amount of New Zealand emissions in the period reduced by the amount of New Zealand removals in the period”.
To insert after the definition of solid biofuel, the following definitions:
“target for 2050 means the target set for the level emissions for which New Zealand is responsible in 2050 in section 224
“target period means each succeeding period of five years beginning with the period 2013–2017”.
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 82, the formula “PA = LA × AB × OSY” and substitute the following:
To insert after the definition of “OSY”, the following:
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 82, the definition of “LA” and substitute the following:
LA is the level of assistance for the activity for the specified year, being,—
(a) for a moderately emissions-intensive eligible industrial activity,—
(i) 0.6 in 2010, 2011, and 2012; and
(ii) in each year after 2012 and before 2030, the level of assistance from the previous year less 0.033 (the phase-out rate for a moderately emissions-intensive eligible industrial activity) (expressed to 2 decimal places):
(b) for a highly emissions-intensive eligible industrial activity,—
(i) 0.9 in 2010, 2011, and 2012; and
(ii) in each year after 2012 and before 2030, the level of assistance from the previous year less 0.05 (the phase-out rate for a highly emissions-intensive eligible industrial activity) (expressed to 2 decimal places).
(Charles Chauvel)
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to the amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 84, the formula “FA = LA × AB × OSY” and substitute the following:
To insert after the definition of “OSY”, the following:
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 85A, the definition of “LA” and substitute the following:
LA is the level of assistance for the activity for the specified year, being,—
(a) for a moderately emissions-intensive eligible industrial activity,—
(i) 0.6 in 2010, 2011, and 2012; and
(ii) in each year after 2012 and before 2030, the level of assistance from the previous year less 0.033 (the phase-out rate for a moderately emissions-intensive eligible industrial activity) (expressed to 2 decimal places):
(b) for a highly emissions-intensive eligible industrial activity,—
(i) 0.9 in 2010, 2011, and 2012; and
(ii) in each year after 2012 and before 2030, the level of assistance from the previous year less 0.05 (the phase-out rate for a highly emissions-intensive eligible industrial activity) (expressed to 2 decimal places).
(Charles Chauvel)
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 85A, the formula “FA = LA × AB × OSY” and substitute the following:
To insert after the definition of “OSY”, the following:
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 86(2), the formula “A = LA × AB × OSY” and substitute the following:
To insert after the definition of “OSY”, the following:
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 22, new section 86(2), the definition of “LA” and substitute the following:
LA is the level of assistance for the activity for the specified year, being,—
(a) 0.9 in 2013; and
(b) in each year after 2013 and before 2030, the level of assistance from the previous year less 0.053 (the phaseout rate for an eligible agricultural activity) (expressed to 2 decimal places).
(Charles Chauvel)
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 38, new section 160(3)(a)(ii), “5” and substitute “3”.
To omit new section 160(4).
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 46, new section 188(1)(c)(ii) and substitute the following:
“(ii) the post-1989 forest land in respect of which the application is submitted contains no areas with significant numbers of tree species that are identified as a pest or unwanted organism under the Biosecurity Act 1993.”
(Dr Kennedy Graham)
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 61A, new section 222A (Charles Chauvel).
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 61A, new section 222B (Charles Chauvel).
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 61A, new section 222C(2)(a)(ii), “$25” and substitute “$100”.
To omit from paragraph (a)(iii)(B), “$25” and substitute “$100”.
To omit from paragraph (b)(ii), “$25” and substitute “$100”.
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 61A, new section 222D(1), “$25” and substitute “$100”.
To omit from subsection (1)(a), “$25” and substitute “$100”.
To omit from subsection (2), “$25” and substitute “$100”.
To omit from subsection (3), “$25” and substitute “$100”.
To omit from subsection (3)(a), “$25” and substitute “$100”.
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To omit from clause 61A, new section 222F(b), “4” and substitute “2”.
To omit paragraph (c).
(Charles Chauvel)
On the question, That the amendments to the amendments be agreed to, the votes were recorded as follows:
Amendments to amendments not agreed to.
Supplementary Order Paper No 98:
To insert in clause 61A, after new section 222G, the following new section:
“222GA Transitional provisions regarding prohibition on banking of New Zealand Units
“(1) Despite anything in this Act, no New Zealand Unit issued in the period 1 July 2010 to 31 December 2012 may be surrendered after 31 December 2012.
“(2) Despite anything in this Act, the registrar must not convert any New Zealand unit issued in the period 1 July 2010 to 31 December 2012 into a designated assigned amount unit for the purposes of transferring that assigned amount unit to an account in an overseas registry.
“(3) The Registrar must not transfer to an account in an overseas registry under section 18C any New Zealand unit issued in the period 1 July 2010 to 31 December 2012.
“(4) This section does not apply to New Zealand units—
“(a) received in respect of removals for an activity in Part 1 of Schedule 4; or
“(b) transferred following a determination of the Minister under sections 78 or 79 in accordance with an allocation plan providing for the matters in section 73.”
(Charles Chauvel)
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To omit from clause 61A, new sections 222C and 222D (Hon David Parker).
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Supplementary Order Paper No 98:
To add to clause 61A, new section 222C, the following subsection:
“(5) That before the 2 for 1 emissions discount for electricity emissions is allowed, the emitter must prove to the satisfaction of the Commerce Commission that, but for the 2 for 1 discount, electricity prices would have been higher.”
(Hon David Parker)
On the question, That the amendment to the amendment be agreed to, the votes were recorded as follows:
Amendment to amendment not agreed to.
Amendments, as amended, set out on Supplementary Order Paper No 98 (Hon Dr Nick Smith).
On the question, That the amendments, as amended, be agreed to, the votes were recorded as follows:
Resolved, That the amendments, as amended, be agreed to.
The following amendments were put:
New clause 10A:
Amendment set out on Supplementary Order Paper No 90 (Dr Russel Norman).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
New clauses 11A to 11D:
Amendment set out on Supplementary Order Paper No 94 (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
The following amendments were tabled:
Clause 22:
Amendment to new section 70 set out on Supplementary Order Paper No 91 (Jeanette Fitzsimons).
Amendment ruled out of order as being inconsistent with a previous decision of the Committee.
Clause 22:
Amendment to new section 70 set out on Supplementary Order Paper No 94 (Charles Chauvel).
Amendment ruled out of order as being inconsistent with a previous decision of the Committee.
The following amendment was put:
Clause 22:
To omit new section 77(1) and substitute the following subsection:
“(1) Before making a recommendation under section 75(1), the Minister must—
“(a) prepare a draft fishing allocation plan; and
“(b) consult, or be satisfied that the chief executive has consulted, persons (or their representatives) that appear to the Minister or the chief executive likely to have an interest in the fishing allocation plan.”
(Rahui Katene)
On the question, That the amendment be agreed to, the votes were recorded as follows:
Resolved, That the amendment be agreed to.
The following amendments were tabled:
Clause 22:
Amendment to new section 86A set out on Supplementary Order Paper No 97 (Charles Chauvel).
Amendment ruled out of order as being outside the scope of the bill.
Clause 23:
Amendment set out on Supplementary Order Paper No 89 (Dr Russel Norman).
Amendment ruled out of order as being inconsistent with a previous decision of the Committee.
The following amendments were put:
New clause 23A:
Amendment set out on Supplementary Order Paper No 97 (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Vote altered by leave having originally been announced as Ayes 53 Noes 69.
Amendment not agreed to.
Clause 38:
To omit from new section 160(5)(g) “including (but not limited to) Australia’s carbon pollution reduction scheme” (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
Clause 38:
To insert in new section 161(5), after paragraph (a), the following paragraph:
“(ab) must consult persons (or their representatives) that appear to the panel likely to have an interest in the review; and”
(Rahui Katene)
Resolved, That the amendment be agreed to.
The following amendments were tabled:
Clause 38:
Amendments to new section 160(5)(j), set out on Supplementary Order Paper No 92 (Dr Kennedy Graham).
Amendments ruled out of order as being inconsistent with a previous decision of the Committee.
Clause 38:
Amendment set out on Supplementary Order Paper No 94 (Charles Chauvel).
Amendment ruled out of order as being inconsistent with a previous decision of the Committee.
Clause 38:
To omit from new section 161A (2) “or paragraph (c) or paragraphs (c) and (d)”.
To omit subsections (2)(c) and (d), (6), (7)(f), and (8).
To omit from subsection (9) “on the day 5 years after the date of their notification in the Gazette or any later date that may be set by regulations” and substitute “immediately”.
To insert, after new subsection (9), the following subsection:
“(10) For the avoidance of doubt, no compensation is payable as a result of any change referred to in subsection (9).”
(Charles Chauvel)
Amendments ruled out of order as being inconsistent with a previous decision of the Committee.
The following amendments were put:
New clause 41A:
Amendment set out on Supplementary Order Paper No 94 (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
New clause 41B:
Amendment set out on Supplementary Order Paper No 94 (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
The following amendment was tabled:
Clause 44:
Amendment set out on Supplementary Order Paper No 102 (Jeanette Fitzsimons).
Amendment ruled out of order as being inconsistent with a previous decision of the Committee.
The following amendment was put:
Clause 57:
To omit from new section 217(1)(d) “1 January 2015 to 31 December 2015” and substitute “1 January 2013 to 31 December 2013” (Charles Chauvel).
On the question, that the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
The following amendments were tabled:
Clause 61:
Amendments set out on Supplementary Order Paper No 95 (Charles Chauvel).
Amendments ruled out of order as being inconsistent with a previous decision of the Committee.
The following amendments were put:
New clause 61A:
To insert, after clause 61, the following section:
61A Complementary measures
The following new section is inserted after section 223:
“223C Complementary measures
“(1) This section establishes a fund for the purpose of reducing greenhouse gas emissions through the promotion of complementary measures additional to the Emissions Trading Scheme (the Complementary Measures Fund).
“(2) The annual appropriation for the Fund shall be at least—
“(a) 20, 000, 000 New Zealand dollars per year; or
“(b) 10 percent of all revenues accruing from the Emissions Trading Scheme—
whichever is the greater.
“(3) The Complementary Measures Fund may be used for purposes that include (but are not limited to) the delivery, marketing and promotion of, and provision of grants or loans relating to—
“(a) incentives for households to improve energy efficiency; or
“(b) incentives for businesses developing renewable energy projects; or
“(c) incentives to replace energy inefficient home appliances with energy efficient ones; or
“(d) incentives to purchase fuel efficient, low emission vehicles; or
“(e) investment funding to help quickly commercialise new lower-emission technology invented in New Zealand; or
“(f) assistance to sell New Zealand emissions reduction technology to other countries.
“(4) The Minister—
“(a) must, as soon as practicable after this section comes into force, determine the criteria for the use of the Complementary Measures Fund; and
“(b) may re-determine the criteria at any time.
“(5)Before determining or re-determining the criteria for the use of the Complementary Measures Fund, the Minister must seek and consider the advice of the Energy Efficiency and Conservation Authority.
“(6) When advising the Minister on the criteria for the use of the Complementary Measures Fund, the Energy Efficiency and Conservation Authority must have regard to—
“(a) the degree to which any measure will reduce New Zealand’s long-term emissions pathway, including by encouraging broad technological change; and
“(b) the cost-effectiveness of expenditure from the Complementary Measures Fund in relation to the purpose of the Complementary Measures Fund; and
“(c)any other matters that the Authority considers relevant.
“(7) The Energy Efficiency and Conservation Authority must manage and administer the Complementary Measures Fund in accordance with the criteria determined by the Minister.”
(Charles Chauvel)
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
Clauses 62 and 63:
Amendment set out on Supplementary Order Paper No 94 (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
New clause 62A:
To insert the following clause after clause 62:
62A Gazetting of targets
Section 224 is amended by inserting the following subsection after subsection (2):
“(2A)Before the Minister sets, amends, or revokes a target, the Minister must consult, or be satisfied that the chief executive has consulted, persons (or their representatives) that appear to the Minister or the chief executive likely to have an interest in the target.”
(Rahui Katene)
On the question, That the amendment be agreed to, the votes were recorded as follows:
Resolved, That the amendment be agreed to.
Clause 63:
To insert after new section 225(1) the following subsection:
“(1A) Before recommending the making of an Order in Council under subsection (1), the Minister must consult, or be satisfied that the chief executive has consulted, persons (or their representatives) that appear to the Minister or the chief executive likely to have an interest in the order.”
(Rahui Katene)
Resolved, That the amendment be agreed to.
New clause 63A:
The following section is inserted after section 225:
“226 Compensation to pre-1990 forest owners
No additional compensation will be accorded to any pre-1990 forest landowner on the basis that the land was transferred to the owner under a Treaty settlement unless it is proven that the Crown made misrepresentations or withheld material information about emissions pricing at the time of settlement.”
(Hon David Parker)
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to
New clause 63A:
The following section is inserted after section 225:
“226 Nitrous oxide
“(1) Notwithstanding any other provision in this legislation, nitrous oxide emissions from agriculture will be included in the scheme from 1 January 2013 with free allocation based on 90% of 2005 emissions.
“(2) All revenue collected under subclause (1) between 1 January 2013 and December 2014 shall be used to subsidise the use of nitrification inhibitors.”
(Hon David Parker)
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
On the question, That Part 1, as amended, stand part, the votes were recorded as follows:
Resolved, That Part 1, as amended, stand part.
Part 2 read.
The following amendments were put:
Amendment set out on Supplementary Order Paper No 98 (Hon Dr Nick Smith).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Resolved, That the amendment be agreed to.
New clause 67:
Amendment set out on Supplementary Order Paper No 94 (Charles Chauvel).
On the question, That the amendment be agreed to, the votes were recorded as follows:
Amendment not agreed to.
On the question, That Part 2, as amended, stand part, the votes were recorded as follows:
Resolved, That Part 2, as amended, stand part.
New Schedule read.
On the question, That the new Schedule set out on Supplementary Order Paper No 98 (Hon Dr Nick Smith) be agreed to, the votes were recorded as follows:
Resolved, That the new Schedule stand part.
Clauses 1, 2, and 3 read.
The Committee was suspended.
