Climate Change Response Amendment Act 2006 Public Act 2006 No 59 Date of assent 13 November 2006 Contents Page 1 Title 4 2 Commencement 4 3 Principal Act amended 4 Part 1 Amendments to principal Act 4 Purpose 5 5 Interpretation 5 6 Minister of Finance may give directions to Registrar 7 regarding accounts and units 7 New section 8A inserted 8 8A Minister of Finance must publish directions 8 8 Minister of Finance may obtain information from 8 inventory agency and Registrar 9 Purpose of Registry 9 10 New section 13 substituted 9 13 Registrar may refuse access to, or suspend 9 operation of, Registry 11 Registrar must give effect to directions 9 12 New section 16 substituted 9 16 Carryover of units 9 13 Form and content of unit register 10 14 New sections 18A to 18E inserted 10 1 Climate Change Response AmendmentAct 2006 2006 No 59 18A Opening holding accounts 10 18B Closing holding accounts 11 18C Transfer of units 12 18D Succession 12 18E Trusts, representatives, and assignees of 13 bankrupts 15 Transactions must be registered 13 16 Registration procedure 13 17 New sections 21A and 21B inserted 14 21A Electronic registration 14 21B Defective applications 15 18 Receiving units from overseas registries 15 19 Priority of registration 15 20 New section 25 substituted 15 25 Correction of unit register 15 21 Unit register must be open for search 16 22 Information accessible by search 16 23 New sections 28 and 29 substituted 17 28 Search of unit register 17 29 Printed search result receivable as evidence 17 24 New sections 30A to 30D and heading inserted 17 30A Crown or Registrar not liable in relation to 17 searches in certain cases Expiry of longterm certified emission reduction units and temporary certified emission reduction units 30B Expiry of longterm certified emission reduction 18 units 30C Replacement of certain longterm certified 18 emission reduction units 30D Expiry of temporary certified emission reduction 19 units 25 Primary functions of inventory agency 20 26 Inventory agency under direction of Minister responsible 20 for inventory agency 27 New section 35 substituted 20 35 Publication 20 28 New section 48A inserted 20 48A Providing false or misleading information to 20 Registrar 29 Regulations 21 2 Climate Change Response Amendment2006 No 59 Act 2006 30 Incorporation by reference 21 Part 2 Amendments to other Acts 31 Amendments to Forests Act 1949 22 Part3B Mechanism allowing landowners to access value created by Kyoto Protocol of carbon sequestration onlandthroughestablishmentof forest sink covenants 67W Purpose of Part 23 67X Interpretation of Part 23 Subpart 1—Forest sink covenants 67Y Regulationmaking powers for forest sink 23 covenants 67Z Content of forest sink covenants 25 67ZA Landowner must obtain written consent of 26 interested persons to enter into, vary, or cancel forest sink covenants 67ZB Nothing in Part makes Crown liable 26 67ZC Section 126G of Property Law Act 1952 does not 26 apply to forest sink covenants 67ZD RegistrarGeneral of Land to register forest sink 27 covenants 67ZE The Crown may register charges with respect to 28 land subject to forest sink covenants in certain circumstances 67ZF Liability to the Crown of persons who have or 30 had landholding subject to registered forest sink covenants 67ZG Minister must give notice to RegistrarGeneral 31 of Land if forest sink covenants are varied, cancelled, or terminated Subpart 2—Cost recovery 67ZH Principles of cost recovery 31 67ZI Methods of cost recovery 32 67ZJ Costrecoverytorelategenerallytofinancialyear 33 67ZK Minister may review levels and methods of cost 34 recovery 67ZL Feesandchargestobeprescribedbyregulations 34 67ZM Levies 35 3 s 1 Climate Change Response AmendmentAct 2006 2006 No 59 67ZN Contents of levy order 35 67ZO Trust accounts required to be kept by persons 36 collecting levies 67ZP Exemptions, waivers, and refunds 36 67ZQ Fees, levies, and charges to constitute debt due to 37 Secretary 67ZR Penalties for failure to pay fee, levy, or charge 37 67ZS Obligation to pay fee, levy, charge, or penalty not 38 suspended by dispute 67ZT Levy orders to be confirmed 38 67ZU Relationship of Part with Resource Management 39 Act 1991 32 Amendments to Forestry Rights Registration Act 1983 39 33 Consequential amendment to Privacy Act 1993 39 The Parliament of New Zealand enacts as follows: 1 Title This Act is the Climate Change Response Amendment Act 2006. 2 Commencement (1) (2) (3) (4) Section 6 comes into force on the date that section 7 of the principal Act comes into force. Sections 13, 16, 20, and 22 come into force on the date that section 10 of the principal Act comes into force. Each provision of sections 5, 7 to 12, 14, 15, 17 to 19, 21, 27, and 28 comes into force on the date that the provision of the principal Act that it amends comes into force. The rest of this Act comes into force on the day after the date on which it receives the Royal assent. 3 Principal Act amended This Act amends the Climate Change Response Act 2002. Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 5 Part 1 Amendments to principal Act Purpose Section 3(1)(a) is amended by inserting “first” after “New Zealand in the”. 5 Interpretation (1) Section 4(1) is amended by— (a) insertinginthedefinitionofcarryover“relevant”after “unit from the”; and (b) omitting from the definition of clean development mechanism project “that results in certified emission reductions”; and (c) omitting from the definition of holding account “on behalf of the Crown”; and (d) omitting from the definition of independent transaction log “, transfer, and acquisition” and substituting “and transfer”. (2) Section4(1)isamendedbyinsertingthefollowingdefinitions in their appropriate alphabetical order: “designated operational entity means an operational entity designated under Article 12(5) of the Protocol “executive board means the board established under Article 12(4) of the Protocol “expire or expiry, in relation to a longterm certified emission reduction unit or a temporary certified emission reduction unit, means a unit that is no longer capable of being— “(a) transferred to any account other than the general cancellation account; or “(b) retired “longterm certified emission reduction replacement account means an account in the Registry— “(a) for the purpose of— “(i) replacing longterm certified emission reduction units in that account or the retirement account, before they are due to expire, with assigned amount units, certified emission reduction units, emission reduction units, or removal units; or 5 Climate Change Response Amendment Part 1 s 5 Act 2006 2006 No 59 “(ii) replacing longterm certified emission reduction units, nomorethan30daysbeforetheyareduetoexpireasa resultofareversalofsinksornonreceiptofacertification report, with— “(A) assigned amount units, certified emission reduc tion units, emission reduction units, or removal units; or “(B) longtermcertifiedemissionreductionunitsfrom the samecleandevelopmentmechanism project; and “(b) that is limited to the relevant commitment period “longterm certified emission reduction unit means a unit derived from a clean development mechanism project, issued by the CDM registry, and designated as a longterm certified emission reduction unit (or lCER) by the CDM registry “previouscommitmentperiodmeansacommitmentperiod,includ ing (but not limited to) the first commitment period, that— “(a) is specified or determined under the Protocol; and “(b) begins and ends before a subsequent commitment period “relevant commitment period means a commitment period that is specified or determined under the Protocol, and— “(a) in which a particular activity or transaction occurs; or “(b) to which an account or unit is associated “subsequent commitment period means a commitment period that— “(a) is specified or determined under the Protocol; and “(b) begins and ends after a previous commitment period “temporary certified emission reduction replacement account means an account in the Registry— “(a) for the purpose of replacing temporary certified emission re duction units, before they are due to expire, with assigned amount units, certified emission reduction units, emission reduction units, removal units, or temporary certified emission reductionunitsthatareduetoexpireinasubsequentcommitment period; and “(b) that is limited to the relevant commitment period “temporarycertifiedemissionreductionunitmeansaunitderived from a clean development mechanism project issued by the CDM Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 6 registry, and designated as a temporary certified emission reduction unit (or tCER) by the CDM registry”. (3) Section 4(1) is amended by repealing the definition of commitment period and substituting the following definition in its appropriate alphabetical order: “first commitment period means the commitment period from 1 January 2008 to 31 December 2012 (inclusive)”. (4) Section 4(1) is amended by repealing the definition of units and substituting the following definition: “unitsmeansalloftheunittypesspecifiedin,orinaccordancewith, the Protocol (namely, assigned amount units, certified emission reductionunits, emissionreduction units, longterm certifiedemission reduction units, removal units, and temporary certified emission reduction units).” 6 Minister of Finance may give directions to Registrar regarding accounts and units (1) Section 7(a) is amended by adding the following subparagraphs: “(v) alongtermcertifiedemissionreductionreplacementaccount: “(vi) a temporary certified emission reduction replacement ac count:”. (2) Section 7 is amended by repealing paragraph (b) and substituting the following paragraph: “(b) issue assigned amount units in the Registry:”. (3) Section 7 is amended by repealing paragraph (d) and substituting the following paragraphs: “(d) transfer units (other than longterm certified emission reduction units or temporary certified emission reduction units) fromholdingaccountstothegeneralcancellationaccount,the longterm certified emission reduction replacement account, the noncompliance cancellation account, the retirement account, thetemporarycertifiedemissionreductionreplacement account, or the sink cancellation account: “(da) transferlongtermcertifiedemissionreductionunitsortemporary certified emission reduction units from holding accounts to the general cancellation account, the longterm certified emission reduction replacement account, the temporary certi 7 Climate Change Response Amendment Part 1 s 7 Act 2006 2006 No 59 fiedemissionreductionreplacementaccount,ortheretirement account:”. (4) Section7isamendedbyrepealingparagraph(e)andsubstituting the following paragraph: “(e) carryoverassignedamountunits,certifiedemissionreduction units,andemissionreductionunitsheldinholdingaccounts:” (5) Section7isamendedbyadding,assubsections(2)and(3),the following subsections: “(2) Despitesubsection(1),oranyregulationsmadeunderthisAct, the Minister of Finance may not give a direction to transfer unitsfromanaccountheldbyanaccountholderotherthanthe Crown to another account in the Registry, unless— “(a) the Minister of Finance has the written consent of the account holder; or “(b) where written consent is not given,— “(i) the Minister of Finance gives the account holder reasonable notice; and “(ii) the transfer is required to comply with New Zealand’s obligations under the Protocol. “(3) For the purposes of subsection (2)(b)(i), reasonable notice meanssufficientopportunityinthecircumstancesfortherelevant accountholder to make a written submission to theMinisterofFinanceonthetransferoftheunitsbeforetheunitsare transferred.” 7 New section 8A inserted The following section is inserted after section 8: “8A Minister of Finance must publish directions As soon as practicable after giving a direction under section 6 or 7, the Minister of Finance must publish a copy of the direction on the Registry’s Internet site.” 8 Minister of Finance may obtain information from inventory agency and Registrar (1) Section 9 is amended by inserting “and discharging New Zealand’s obligations under section 32(1)(b)” after “holding of units”. (2) Section 9(b)(ii) is amended by— 8 Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 12 (a) omitting “acquired” and substituting “issued or acquired” ; and (b) inserting “replaced,” after “retired,”. 9 Purpose of Registry (1) Section 10(a) is amended by inserting “first” after “for the”. (2) Section 10(a)(i) is amended by omitting “acquisition,”. (3) Section 10(a) is amended by adding the following subparagraph after subparagraph (ii): “(iii) thereplacementofexpiredlongtermcertifiedemissionreduction units and expired temporary certified emission reduction units; and”. 10 New section 13 substituted Section 13 is repealed and the following section substituted: “13 Registrar may refuse access to, or suspend operation of, Registry The Registrar may refuse access to the Registry, or otherwise suspend theoperation ofthe Registry(inwhole or in part),— “(a) for maintenance; or “(b) in response to technical difficulties; or “(c) to ensure the security or integrity of the Registry; or “(d) to give effect to New Zealand’s international obliga tions.” 11 Registrar must give effect to directions Section 14(2) is amended by omitting “in the Gazette” and substituting “on the Registry’s Internet site”. 12 New section 16 substituted Section 16 is repealed and the following section substituted: “16 Carryover of units “(1) Anaccountholdermay,subjecttoregulationsmadeunderthis Act,applytotheRegistrartocarryoverassignedamountunits, certifiedemissionreductionunits,oremissionreductionunits held in that account holder’s holding account. 9 Climate Change Response Amendment Part 1 s 13 Act 2006 2006 No 59 “(2) Longterm certified emission reduction units, removal units, and temporary certified emission reduction units may not be carried over.” 13 Form and content of unit register (1) Section 18(1)(b) is amended by omitting “Internet” and substituting “Registry’s Internet site”. (2) Section 18(2)(b)(i) is amended by omitting “acquisition” and substituting “issue”. (3) Section 18(2)(b) is amended by inserting the following subparagraph after subparagraph (ii): “(iii) the replacement of longterm certified emission reduction units and temporary certified emission reduction units; and”. (4) Section 18 is amended by adding the following subsection: “(3) A unit recorded in the unit register is— “(a) indivisible; and “(b) transferable,subjecttoanyregulationsmadeunderthis Act,— “(i) within the unit register; or “(ii) betweentheunitregisterandoverseasregistries.” 14 New sections 18A to 18E inserted The following sections are inserted after section 18: “18A Opening holding accounts “(1) AnypersonmaysubmitanapplicationtotheRegistrartoopen 1 or more holding accounts in the unit register by using the form and paying the fees (if any) prescribed in regulations made under this Act. “(2) The Registrar may approve the opening of a holding account subject to any regulations made under this Act. “(3) If the Registrar approves an application to open a holding account, the Registrar must, as soon as practicable,— “(a) open a holding account in the applicant’s name; and “(b) provide the applicant with a representative identifier. “(4) Iftheapplicationisincomplete,theRegistrarmust,assoonas practicable,asktheapplicanttoprovidetheinformationorfee (if any) that is required to make the application complete. 10 Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 14 “(5) The Registrar may refuse to provide a holding account to any applicant who provides an incomplete application. “(6) A holding account is subject to any regulations made under this Act. “18B Closing holding accounts “(1) An account holder may submit a request to the Registrar to close 1 or more of that account holder’s holding accounts in the unit register by using the form and paying the fee (if any) prescribed in regulations made under this Act. “(2) TheMinisterresponsiblefortheRegistrymaygiveadirection totheRegistrartocloseanaccountholder’sholdingaccount— “(a) iftheMinisterresponsiblefortheRegistryhasthewritten consent of the account holder; or “(b) where written consent is not given,— “(i) if the Minister responsible for the Registry has given the account holder reasonable notice; and “(ii) if— “(A) theclosureisrequiredtocomplywithNew Zealand’s obligations under the Protocol; or “(B) the account holder has failed to comply with this Act or any regulations made under this Act; or “(C) theMinisterresponsiblefortheRegistryis satisfied that the account holder no longer requires the account. “(3) If there are any units remaining in a holding account when it is closed,— “(a) the units are forfeited to the Crown; and “(b) the Registrar must, as soon as practicable, transfer the units to a Crown holding account. “(4) Ifarequestisincomplete,theRegistrarmust,assoonaspracticable, ask the account holder to provide the information or fee (if any) that is required to make the request complete. “(5) The Registrar may not close a holding account if the account holder provides an incomplete request. Climate Change Response Amendment Part 1 s 14 Act 2006 2006 No 59 “(6) For the purposes of subsection (2)(b)(i), reasonable notice means sufficient opportunity in the circumstances to transfer theunitstoanother account beforetheholdingaccountthat is the subject of the closure direction is closed. “18C Transfer of units “(1) Anaccountholdermay,byusingtheformandpayingthefees (if any) prescribed in regulations made under this Act, apply to the Registrar to transfer units from that account holder’s holding account to another account in— “(a) the unit register; or “(b) an overseas registry. “(2) The Registrar must transfer the specified units as requested, subject to any regulations made under this Act. “(3) Despitesubsection(2),iftheRegistrarisaskedtotransferunits heldinanaccountholder’sholdingaccounttothegeneralcancellation account, the Registrar must— “(a) seek a direction from the Minister of Finance as to whether the units may be transferred to the general cancellation account; and “(b) transfer the units to the general cancellation account if the Minister of Finance so directs. “(4) An account holder who receives units is under no obligation to initiate any registration process. “18D Succession “(1) This section applies if an account holder— “(a) is a natural person and dies; or “(b) isnotanaturalpersonandiswoundup,liquidated,dis solved, or otherwise ceases to exist. “(2) Ifthissectionapplies,thepersonlistedontheholdingaccount astheaccountholder’srepresentativemayoperatetheholding account until— “(a) a successor is determined; and “(b) the Registrar is informed of that determination in writing. Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 16 “(3) If a successor is determined, and the Registrar is informed of that determination in writing, the Registrar must register the successor as the account holder. “18E Trusts, representatives, and assignees of bankrupts “(1) Noticeofatrust,whetherexpressed,implied,orconstructive, may not be entered on the unit register. “(2) Despiteanythinginsection18D,theexistenceofarepresentativethatmayoperatetheholdingaccountofanaccountholder who has died, or that has been wound up, liquidated, or dissolved, or otherwise has ceased to exist, does not constitute notice of a trust. “(3) The assignee of the property of a bankrupt may be entered on the unit register as the assignee of the bankrupt’s units.” 15 Transactions must be registered (1) Section 20(1) is amended by omitting “transfer, cancel, or retire” and substituting “issue, transfer, cancel, retire, or replace”. (2) Section20isamendedbyrepealingsubsection(2)andsubstituting the following subsection: “(2) However, the Registrar may not register a transaction on the unit register if— “(a) theRegistrarreceivesanotificationfromtheindependent transaction log that there is a discrepancy with the transaction; or “(b) the transaction is not submitted in the prescribed form; or “(c) the prescribed fees (if any) have not been paid to the Registrar (unless arrangements for payment have been made in accordance with regulations made under this Act).” 16 Registration procedure (1) Section21isamendedbyrepealingsubsections(1)and(2)and substituting the following subsections: “(1) On receipt of a direction given by the Minister of Finance, or an application for the registration of a transaction by an ac 13 Climate Change Response Amendment Part 1 s 17 Act 2006 2006 No 59 countholderthatiscompletedtothesatisfactionoftheRegistrar and in accordance with any regulations made under this Act, the Registrar must— “(a) create an unique transaction number; and “(b) send a record of the proposed transaction to the inde pendent transaction log if required by the independent transaction log. “(2) Onreceiptofnotificationfromtheindependenttransactionlog thattherearenodiscrepanciesintheproposedtransaction,the Registrar must, as soon as practicable,— “(a) record in the unit register the particulars set out in the direction or the application and the particulars of the transaction; and “(b) send notification that the transaction has been recorded in the unit register to the independent transaction log; and “(c) send electronic verification to the Minister of Finance or the account holder who has applied to register the transaction.” (2) Section 21(3)(c)(ii) is repealed. (3) Section 21(3)(c) is amended by repealing subparagraph (iii) and substituting the following subparagraph: “(iii) theMinisterofFinanceortheaccountholderwhohasapplied to enter the transaction on the unit register.” 17 New sections 21A and 21B inserted The following sections are inserted after section 21: “21A Electronic registration AdirectionbytheMinisterofFinanceoranapplicationbyan account holder to register a transaction must be— “(a) made electronically in the prescribed form via the Registry’s Internet site, and contain the particulars specified in the form; and “(b) accompanied by the fee (if any) prescribed in regulations made under this Act; and “(c) made in accordance with regulations made under this Act. 14 Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 20 “21B Defective applications “(1) If an application is defective, the Registrar may— “(a) correct the defect; or “(b) direct, in writing by electronic notification, the appli cant to correct the defect within a specified period of time. “(2) If a direction to correct a defect is not complied with within the specified period of time, the Registrar may refuse to— “(a) proceed with the registration; or “(b) register the transaction. “(3) Any fees paid to the Registrar in relation to an uncorrected defective application are forfeited.” 18 Receiving units from overseas registries (1) Section 23(1)(b) is repealed. (2) Section 23(2)(c) is amended by omitting “and the overseas registry”. (3) Section 23 is amended by adding the following subsection: “(3) A transfer of units from an overseas registry is subject to any regulations made under this Act.” 19 Priority of registration (1) Section24(1)isamendedbyomitting“Applications”andsubstituting “A direction or an application”. (2) Section 24(2) is amended by omitting “An” and substituting “A direction or an”. 20 New section 25 substituted Section 25 is repealed and the following section substituted: “25 Correction of unit register “(1) AnaccountholderwhohasregisteredatransactionortheMinisterofFinancemaysubmitarequesttotheRegistrartocorrect any inaccuracy recorded in the unit register in relation to that transaction. “(2) The request— “(a) may be made at any time; and “(b) must specify— “(i) the inaccuracy; and 15 Climate Change Response Amendment Part 1 s 21 Act 2006 2006 No 59 “(ii) the correction required; and “(c) must be in the form, and accompanied by the fees (if any), prescribed in regulations made under this Act. “(3) If the Registrar is satisfied that the unit register is inaccurate in any respect, the Registrar must— “(a) correct the unit register accordingly; and “(b) record on the unit register— “(i) the nature of the correction; and “(ii) the time that the correction was made; and “(c) give notification of the correction, as soon as practicable, to— “(i) any person whom the Registrar considers to be affected by the correction; and “(ii) the independent transaction log; and “(iii) any otherpersons, by postingiton theRegistry’s Internet site.” 21 Unit register must be open for search Section 26 isamended by omitting“Internet” and substituting “Registry’s Internet site”. 22 Information accessible by search (1) Section 27 isamended by omitting“Internet” and substituting “Registry’s Internet site”. (2) Section 27(a) is amended by repealing subparagraph (iii) and substituting the following subparagraph: “(iii) the relevant commitment period of any— “(A) generalcancellationaccountorretirementaccount;and “(B) longterm certified emission reduction replacement account or temporary certified emission reduction replacement account.” (3) Section 27(b) is amended by omitting “, by serial number,”. (4) Section27(b)(iv)isamendedbyomitting “acquired” andsubstituting “transferred”. (5) Section 27(b) is amended by inserting the following subparagraphs after subparagraph (xi): “(xia) the total quantity of longterm certified emission reduction units in each account; and Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 24 “(xib) the total quantity of temporary certified emission reduction units in each account; and “(xic) the expiry date of each longterm certified emission reduc tionunitandeachtemporarycertifiedemissionreductionunit; and”. (6) Section 27(b)(xii) is repealed. 23 New sections 28 and 29 substituted Sections28and29arerepealedandthefollowingsectionsare substituted: “28 Search of unit register A person may, by using the form and paying the fees (if any) prescribed by regulations made under this Act, search the unit register, and obtain a printed search result, in accordance with this Act and any regulations made under this Act. “29 Printed search result receivable as evidence Aprintedsearchresult,oracopyofaprintedsearchresult,that purportstobeissuedbytheRegistrarisreceivableasevidence and is, inthe absence of evidence to the contrary, proofofany matter recorded in the unit register, including (but not limited to)— “(a) the ownership of units; and “(b) thedateandtimeoftheregistrationofatransaction;and “(c) information that the Registry holds.” 24 New sections 30A to 30D and heading inserted The following sections are inserted after section 30: “30A Crown or Registrar not liable in relation to searches in certain cases No action may be brought against the Crown or the Registrar for any loss or damage resulting from— “(a) an inaccuracy in a search of the unit register; or “(b) aninaccurateentryoromissionintheunitregisterifthe inaccuracy or omission arises from reasonable reliance on information received by the Registrar from— “(i) the independent transaction log; or “(ii) an account holder. Climate Change Response Amendment Part 1 s 24 Act 2006 2006 No 59 “Expiry of longterm certified emissionreduction units and temporary certified emissionreduction units “30B Expiry of longterm certified emission reduction units “(1) A longterm certified emission reduction unit expires at the end of the last crediting period for the clean development mechanism project to which it relates. “(2) A person who holds a longterm certified emission reduction unit in a retirement account or a longterm certified emission reductionreplacementaccountmustreplacethatunitbeforeit expiresbytransferring1ofthefollowingunitstothelongterm certified emission reduction replacement account: “(a) an assigned amount unit; or “(b) a certified emission reduction unit; or “(c) an emission reduction unit; or “(d) a removal unit. “(3) Thirty days before a longterm certified emission reduction unit in a retirement account or a longterm certified emission reductionreplacementaccountexpires,theRegistrarmustnotify in writing the person who holds that unit that it is due to expire and must be replaced. “(4) Ifalongtermcertifiedemissionreductionunitisnotheldina retirementaccountoralongtermcertifiedemissionreduction replacement account, the Registrar must transfer that unit to the general cancellation account when that unit expires. “(5) If subsection (4) applies, then section 18C(3) does not apply. “30C Replacement of certain longterm certified emission reduction units “(1) A person who holds a longterm certified emission reduction unitmustreplacethatunitinaccordancewiththissectionifthe designatedoperatingentityoftherelevantcleandevelopment mechanism project— “(a) provides a certification report that indicates a reversal ofnetanthropogenicgreenhousegasremovalsbysinks since the previous certification; or “(b) does not provide a certification report. “(2) If subsection (1) applies,— Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 24 “(a) each identified longterm certified emission reduction unit, as notified by the executive board, must be replaced by 1 of the following units: “(i) assigned amount units; or “(ii) certified emission reduction units; or “(iii) emission reduction units; or “(iv) removal units; or “(v) longtermcertifiedemissionreductionunitsfrom the samecleandevelopmentmechanism project; and “(b) the Registrar must notify in writing the person who holds the affected longterm certified emission reduction unit. “(3) Apersonnotifiedundersubsection(2)(b)mustreplacetheaffected longterm certified emission reduction unit within 30 days of receiving the notice. “(4) Section152ofthePropertyLawAct1952applies,withallnecessarymodifications, toanynoticerequiredundersubsection (2)(b). “30D Expiry of temporary certified emission reduction units “(1) A temporary certified emission reduction unit expires at the end of the subsequent commitment period that immediately follows the relevant commitment period. “(2) A person who holds a temporary certified emission reduction unit in a retirement account or a temporary certified emission reductionreplacementaccountmustreplacethatunitbeforeit expires by transferring 1 of the following units to the temporary certified emission reduction replacement account: “(a) an assigned amount unit; or “(b) a certified emission reduction unit; or “(c) an emission reduction unit; or “(d) a removal unit; or “(e) atemporarycertifiedemissionreductionunitthatisdue to expire in a subsequent commitment period. “(3) Thirty days before a temporary certified emission reduction unit in a retirement account or a temporary certified emission reductionreplacementaccountexpires,theRegistrarmustno Climate Change Response Amendment Part 1 s 25 Act 2006 2006 No 59 tify in writing the person who holds that unit that it is due to expire and must be replaced. “(4) Ifatemporarycertifiedemissionreductionunitisnotheldina retirementaccountoratemporarycertifiedemissionreduction replacement account, the Registrar must transfer that unit to the general cancellation account when that unit expires. “(5) Ifsubsection(4)applies,thensection18C(3)doesnotapply.” 25 Primary functions of inventory agency Section32(1)(b)(i)isamendedbyadding“,including(butnot limited to) the quantities of longterm certified emission reductionunitsandtemporarycertifiedemissionreduction units thathaveexpiredorhavebeenreplaced,retired,orcancelled”. 26 Inventory agency under direction of Minister responsible for inventory agency Section 33(2) is amended by omitting “publish a copy of the direction in the Gazette” and substituting “make a copy of the direction accessible via the inventory agency’s Internet site”. 27 New section 35 substituted “35 Section 35 is repealed and the following section substituted: Publication The inventory agency must publish New Zealand’s annual inventoryreportanditsnational communication(orperiodicreport) in electronic form by placing the report on a publicly accessible portion of the inventory agency’s Internet site.” 28 New section 48A inserted The following section is inserted after section 48: “48A Providing false or misleading information to Registrar “(1) EverypersonwhoknowinglyprovidesfalseormisleadinginformationtotheRegistrarcommitsanoffence, andisliableon conviction to a fine not exceeding,— “(a) in the case of an individual, $50,000: “(b) in the case of a body corporate, $200,000. Climate Change Response Amendment 2006 No 59 Act 2006 Part 1 s 30 “(2) Every person who recklessly provides false or misleading informationtotheRegistrarcommitsanoffence, andisliableon conviction to a fine not exceeding $2,000.” 29 Regulations (1) Section50(1)isamendedbyrepealingparagraph(c)andsubstituting the following paragraphs: “(c) prescribing matters, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, or prohibitions, in respect of— “(i) the transfer of units, including (but not limited to)— “(A) the transfer of units from an account holder’s holding account to another account in an overseas registry: “(B) the transfer of units within the unit register: “(C) the transfer of units from an overseas registry: “(D) prohibitions on the transfer of units for the purposes of holding those units in an account in the Registry: “(ii) the opening or closing of holding accounts: “(ca) prescribing matters in respect of the holding, cancellation, and carryover of units, including (but not limited to) limitations, restrictions, conditions, exemptions, requirements, procedures, or thresholds:”. (2) Section50(1)(d)isamendedbyaddingthefollowingsubparagraph: “(vii) the form and content of the unit register:”. (3) Section 50(1)(e) is amended by omitting “section 28(1)” and substituting “this Act”. 30 Incorporation by reference Section 51(3) is amended by omitting “at the Registry’s head officeandviatheInternet”andsubstituting“viatheRegistry’s Internet site”. Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 Part 2 Amendments to other Acts 31 Amendments to Forests Act 1949 (1) Section 2(1) of the Forests Act 1949 is amended by repealing the definition of landholding and substituting the following definition: “landholding,— “(a) inthecaseoflandsubjecttoaforestsinkcovenantasdefined in section 67X, means a registered— “(i) freehold estate in that land; or “(ii) leasehold estate in that land; or “(iii) interestinthatlandthatentitlesapersontoreceiveunits or the value of units based on carbon sequestration by thatforestsink;butdoesnotincludearegisteredinterest by way of charge or security: “(b) inanyothercase,meansanestate,right,title,orinterestofany kind in or over an area of land by or under which indigenous timber may be harvested; but does not include an interest by way of charge or security”. (2) Section 67C(1)(g) of the Forests Act 1949 is amended by adding “; or” and also by adding the following subparagraph: “(iii) harvestedfromaforestsubjecttoaforestsinkcovenantestablished in accordance with Part 3B.” (3) Section 67D(1)(b)(i) of the Forests Act 1949 is amended by adding the following subsubparagraph: “(D) aforestsubjecttoaforestsinkcovenantestablishedinaccordance with Part 3B; or”. (4) The Forests Act 1949 is amended by inserting the following Part after Part 3A: “Part3B “Mechanism allowing landowners to access value created by Kyoto Protocol Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 of carbon sequestration on land through establishment of forest sink covenants “67W Purpose of Part The purpose of this Part is to provide a mechanism to allow landownerstoaccessthevalueofcarbonsequestrationonland through the establishment of forest sink covenants. “67X Interpretation of Part In this Part, unless the context otherwise requires,— “carbon sequestration means the removal of greenhouse gases from the atmosphere by a forest sink “forest sink means a forest prescribed in regulations made under section 67Y “forest sink covenant means any covenant established under regulations made under section 67Y, or any variation of that covenant, for the purpose of establishing and maintaining a forest sink; including, but not limited to, controlling the harvesting of timber from the forest sink “greenhouse gas has the same meaning as in section 4(1) of the Climate Change Response Act 2002 “landowner means the owner of a freehold estate “Protocol has the same meaning as in section 4(1) of the Climate Change Response Act 2002 “units hasthesamemeaningasinsection4(1) oftheClimate Change Response Act 2002. “Subpart 1—Forest sink covenants “67Y Regulationmaking powers for forest sink covenants “(1) The GovernorGeneral may make regulations to— “(a) establishaframeworktofacilitatetheestablishmentand ongoingadministrationofforestsinkcovenantsthatallowlandownerstoaccessthevalueofcarbonsequestrationonland, including(butnotlimitedto)Crownland: “(b) prescribeandupdatemethodologiesormechanismsfor measuring carbon sequestration or emissions of greenhouse gases from a forest sink: Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 “(c) prescribethemanner,quantity,type,andtimingofunits that may be transferred to or by a landowner: “(d) prescribe requirements that a forest must meet to be a forest sink: “(e) establish a dispute resolution process for disputes arisinginrelationtoaforestsinkoraforestsinkcovenant: “(f) prescribe reporting and verification requirements in relation to a forest sink or forest sink covenant: “(g) prescribe harvesting restrictions in relation to a forest sink: “(h) establish penalties for breaches of a forest sink covenant: “(i) prescribeanyformsrequiredtofacilitatetheframework specified in paragraph (a): “(j) prescribe procedures and requirements relating to the selection, appointment, and performance of persons who carry out functions in relation to a forest sink covenant: “(k) prescribe records, returns, or information in relation to a forest sink covenant that a person or class of persons must keep or provide to the Minister: “(l) prescribe requirements, including (but not limited to) ongoing obligations, or criteria for a landowner to provide a guarantor or insurer, or any other risk management arrangement that the Minister considers appropriate, to meet any obligations of the landowner under the Act or the forest sink covenant in the event of the landowner’s default. “(2) Withoutlimitingsubsection(1)(a),theframeworkmaypermit the Minister, on behalf of the Crown, to negotiate, and enter into, a forest sink covenant. “(3) Despite subsection (1)(h), a penalty— “(a) may only be imposed in respect of the proportion of forest on land subject to a forest sink covenant that is harvested in breach of the covenant; and “(b) may not exceed the sum of— “(i) all units received in respect of that proportion of the forest (or their monetary equivalent); and Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 “(ii) anyadditionalunitscalculatedonthebasisofan annualcompoundingrateof10%appliedtoeach year’s carbon sequestration from that proportion of the forest for the periodbeginning on thedate that the covenant came into force and ending on thedatethatthebreachoccurred(ortheirmonetary equivalent). “(4) However, nothing in this Part requires the Minister to negotiate, enter into, or enforce any provisions of, any forest sink covenant. “67Z Content of forest sink covenants Without limiting the content of forest sink covenants, a forest sink covenant may— “(a) specify any or all of the following: “(i) the obligations of any landowner for monitoring and administrative costs: “(ii) the rights of any landowner with respect to receiving units based on carbon sequestration: “(iii) anyexceptionstothecovenanttocontroltheharvesting of timber, including (but not limited to) the use of plants for traditional Maori purposes: “(iv) access to the land by the Secretary, or any of its contractors or agents, to— “(A) verify carbon inventories; and “(B) monitor compliance with the forest sink covenant: “(v) the obligations of any landowner to meet any liabilities to the Crown arising if there is a loss of carbon from the landowner’s forest sink: “(vi) a requirement, including (but not limited to) an ongoing obligation, for the landowner to provide a guarantor or insurer, or any other risk management arrangement that the Minister considers appropriate, to meet any obligations of the landowner under the Act or the forest sink covenantintheeventofthelandowner’sdefault: “(vii) arequirementtocontroltheharvestingoftimber: Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 “(viii) a requirement to include a forest sink management plan: “(b) be expressed to— “(i) have effect in perpetuity; and “(ii) terminateifcertaincircumstancesariseorcertain conditions are met; and “(iii) provideobligationsifcertaincircumstancesarise or certain conditions are met; and “(iv) come into effect when registered; and “(v) expireunlessregisteredwithin180daysofbeing agreed: “(c) be varied or cancelled by agreement between the landowner and the Minister if that agreement is registered under section 67ZD. “67ZA Landowner must obtain written consent of interested personstoenterinto,vary,orcancelforestsinkcovenants A landowner intending to enter into, vary, or cancel a forest sink covenant must obtain the written consent of each person witharegisteredinterestintheaffectedlandtoenterinto,vary, or cancel that forest sink covenant. “67ZB Nothing in Part makes Crown liable “(1) Provided the Crown has acted in good faith and with reasonable care, nothing in this Part makes the Crown liable to any person for compensation or damages in respect of any matter arising from a forest sink covenant. “(2) However,theCrownandtheotherparty(orparties)toaforest sink covenant may agree to a different liability regime in that forest sink covenant. “67ZC Section 126G of Property Law Act 1952 does not apply to forest sink covenants Nothinginsection126GofthePropertyLawAct1952applies toanyforestsinkcovenantenteredintoinaccordancewiththis Act. Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 “67ZD RegistrarGeneral of Land to register forest sink covenants “(1) A landowner who has entered into a forest sink covenant must, within 180 days of that covenant being agreed, submit thatcovenanttotheRegistrarGeneralofLandforregistration under the Land Transfer Act 1952. “(2) Ifaforestsinkcovenantrelatestolandforwhichnocomputer freehold register has been created, the RegistrarGeneral of Landmustcreateacomputerinterestregisterforthecovenant if— “(a) there is endorsed on the register a certificate by a licensed cadastral surveyor to the effect that the land to which the covenant relates is within the boundaries of an identified parcel of land; and “(b) the RegistrarGeneral of Land is satisfied that the certificate is correct. “(3) If a forest sink covenant relates to Maori land (within the meaningofsection4ofTeTureWhenuaMaoriAct1993)for whichnocomputerfreeholdregisterorprovisionalregisterhas been created, the Registrar of the Maori Land Court must enteronthememorialscheduleoftheTitleBinderrelatingtothe Maori land a notification of the forest sink covenant. “(4) If, in respect of a forest sink covenant, the RegistrarGeneral ofLandreceivesasubmissionundersubsection(1)oranotice from the Minister under section 67ZG, the RegistrarGeneral of Land must enter in the computer register for the district in which the affected land is located notification of— “(a) that forest sink covenant; or “(b) the variation, cancellation, or termination of that forest sink covenant. “(5) For the purposes of the Land Transfer Act 1952, a forest sink covenant,oranagreementtovaryaforestsinkcovenant,isan instrument that— “(a) may be registered; and “(b) if registered, creates an interest in land that runs with that land. “(6) IfaforestsinkcovenantisregisteredundertheLandTransfer Act 1952, and any provision of that covenant has terminated, or has been varied or cancelled by an agreement,— Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 “(a) theRegistrarGeneralofLandmust, ifsatisfiedthatthe provision has terminated, or has been varied or cancelled, make an entry in the computer register noting that the provision has terminated, or has beenvaried or cancelled; and “(b) theforestsinkcovenanttakeseffectasvariedorceases to have effect (as the case may be). “(7) The landowner must provide the RegistrarGeneral of Land with— “(a) a diagram or an aerial photo that shows the boundaries of the land to which the forest sink covenant applies; and “(b) if required by the RegistrarGeneral of Land, a deposit plan. “(8) Alandownersubjecttoaregisteredforestsinkcovenantmay, at any time, deposit a plan in accordance with section 167(5) of the Land Transfer Act 1952 and any relevant regulations that,— “(a) withtheagreementoftheMinister,redefinestheboundaries of the land subject to the covenant; and “(b) supercedes any previously submitted diagram or aerial photograph,oranypartofanypreviouslysubmitteddiagram or aerial photograph. “(9) If a plan is deposited under section 167 of the Land Transfer Act1952withrespecttoaforestsinkcovenant,theRegistrarGeneral of Land must, if necessary, endorse, on any relevant computer register, a memorial that indicates that the boundariesofthelandsubjecttothecovenant, asdefined,havebeen surveyed. “(10) A forest sink covenant may not be treated as a subdivision of land for the purposes of theResourceManagement Act 1991. “67ZE The Crown may register charges with respect to land subject to forest sink covenants in certain circumstances “(1) The Minister may register a charge under the Statutory Land ChargesRegistrationAct1928againstlandsubjecttoaforest sink covenant if— Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 “(a) liabilitiesareowedtotheCrownbyanownerofalandholding arising from the emission of greenhouse gases in relation to the forest sink on that land: “(b) penalties are imposed for breaches by an owner of a landholding of the harvesting restrictions in relation to the forest sink on that land: “(c) costs are incurred by the Crown in— “(i) remedying a breach of the covenant; or “(ii) enforcing its right to payment in relation to the covenant: “(d) the covenant is breached. “(2) If the owner of a landholding fails or refuses, within the time providedforpaymentintheforestsinkcovenantorotherwise, to make any payment for which a charge may be registered under subsection (1), the failed or refused payment is an unpaid statutory debt owed to the Crown, and the amount by which it, or any unpaid part of it, is deemed to have been increased is the sum of— “(a) 10% of the debt (or that part of the debt that remained unpaid after the expiry of the time provided for the debt’s payment); and “(b) foreverycompleteperiodof12monthsafterthatexpiry during which the debt or any part of it (including any deemed increase calculated under this subsection) has remained unpaid, 10% of the debt or that part of the debt. “(3) Iftheownerofalandholdingpaysthestatutorydebt(including any deemed increase) or the Crown releases the owner of the landholding from the obligation to pay the debt, the Minister must release the relevant charge on the land (if any). “(4) For the purposes of this section, a charge that is registered by the Minister under the Statutory Land Charges Registration Act 1928 against land subject to a forest sink covenant— “(a) has priority over any subsequently registered mortgages, charges, and encumbrances with respect to that land; but “(b) does not have priority over any prior registered mortgages, charges, and encumbrances with respect to that land. Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 “67ZF Liability to the Crown of persons who have or had landholding subject to registered forest sink covenants “(1) If a person has a landholding in land that is subject to a registered forest sink covenant,— “(a) the person is, unless a contrary intention appears in the covenant, personally liable to the Crown for the observance of all the obligations in the covenant: “(b) theCrownmay,intheeventofabreachofanobligation in the covenant, seek any appropriate remedy directly against the person as if the person were a party to the covenant. “(2) If a person acquires a landholding in land that is subject to a registered forest sink covenant,— “(a) the person is, unless a contrary intention appears in the covenant, personally liable to the Crown for— “(i) the observance of all the obligations in the covenant: “(ii) anyliabilitiesarisingfromtheemissionofgreenhousegasesfromthatforestsinkthatareowedto theCrownbyanypersonwhowasanownerofa landholding in that land before the acquisition: “(iii) any penalties imposed for breaches of the harvesting restrictions in relation to the forest sink on that land by any person who was an owner of alandholdingin thatlandbefore the acquisition: “(iv) any costs incurred by the Crown in— “(A) remedyingabreachofthecovenantbyany personwhowasanownerofalandholding in that land before the acquisition; or “(B) enforcingitsrighttopaymentinrespectof any person who was an owner before the acquisition: “(b) the Crown may, in relation to any matter specified in paragraph (a), seek any appropriate remedy directly against the person. “(3) Ifapersonceasestohavealandholdingsubjecttoaregistered forest sink covenant, the person is no longer personally liable to the Crown for a breach of, or liabilities that arise under, Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 thecovenantunlessthebreachoccurredortheliabilitiesarose while the person had the landholding. “(4) If2ormorepersonshavealandholdingsubjecttoaregistered forestsinkcovenant,thecovenantisdeemedtobindeachperson jointly and severally. “67ZG Minister must give notice to RegistrarGeneral of Land if forest sink covenants are varied, cancelled, or terminated If a forest sink covenant is varied, cancelled, or terminated, theMinistermustgivenoticeofthevariation,cancellation,or terminationintheprescribedformtotheRegistrarGeneralof Land. “Subpart 2—Cost recovery “67ZH Principles of cost recovery “(1) The Minister must take all reasonable steps to ensure that the directandindirectcostsofadministering thisPartthatarenot providedforbymoneyappropriatedbyParliamentforthepurposearerecoveredunderthissubpart, whetherbywayoffees, levies, or otherwise. “(2) In determining the most appropriate method of cost recovery undersection67ZI,theMinistermusthaveregard,asfarasis reasonably practicable, to the following criteria: “(a) equity, in that funding for a particular function, power, or service, ora particular class of functions, powers, or services,shouldgenerally,andtotheextentpracticable, be sourced from the users or beneficiaries of the relevant function, power, or service at a level commensurate with their use or benefit from the function, power, or service: “(b) efficiency, in that costs should generally be allocated andrecoveredinordertoensurethatmaximumbenefits are delivered at minimum cost: “(c) justifiability, in that costs should be collected only to meettheactualandreasonablecosts(includingindirect costs)fortheprovisionorexerciseoftherelevantfunction, power, or service: Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 “(d) transparency, in that costs should be identified and allocated as closely as practicable in relation to tangible service provision for the recovery period in which the service is provided. “(3) Costs should not be recovered under this subpart unless there hasbeenappropriateconsultationwithaffectedpersonsorrepresentatives of persons substantially affected. “(4) Nothing in subsection (3) requires consultation in relation to specific fees or charges, or the specific levels of fees or charges, so long as the fees or charges set are reasonably within the purview of any general consultation; and a failure to comply with subsection (3) does not affect the validity of any regulations made for the purposes of this subpart. “(5) Nothing in this section requires a strict apportionment of the costs to be recovered for a particular function or service based on usage; and, without limiting the way in which fees or charges may be set, a fee or charge may be set at a level or in a way that— “(a) isdeterminedbycalculationsthatinvolveanaveraging of costs or potential costs: “(b) takes into account costs or potential costs of services that are not directly to be provided to the person who pays the fee or charge but which are an indirect or potential cost arising from the delivery of the service in questiontoaclassofpersonsorallpersonswhousethe service. “Compare: 2003 No 114 s 84 “67ZI Methods of cost recovery Themethodsbywhichcostsmayberecoveredunderthissubpart are as follows: “(a) fixed fees or charges: “(b) fees or charges based on a scale or formula or at a rate determined on an hourly or other unit basis: “(c) use of a formula or other method of calculation for fixing fees and charges: “(d) the recovery by way of fee or charge of actual and reasonable costs expended in, or associated with, the performance of a service or function: Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 “(e) estimated fees or charges, or fees or charges based on estimatedcosts,paidbeforetheprovisionoftheservice or function, followed by reconciliation and an appropriate further payment or refund after provision of the service or function: “(f) levies: “(g) any combination of the above. “Compare: 2003 No 114 s 85 “67ZJ Cost recovery to relate generally to financial year “(1) Except as provided in subsection (2), any regulations under this subpart that set a fee, charge, or levy that applies in any financial year— “(a) must have been made before the start of that financial year; but “(b) exceptastheregulationsmayotherwiseprovide,apply in that year and all subsequent years until revoked or replaced. “(2) Subsection(1)doesnotpreventthealterationorsettingduring anyfinancialyearofafee,charge,orlevypayableinthatyear if either— “(a) thefee,charge,orlevyisreduced,removed,orrestated without substantive alteration; or “(b) inthecaseofanincreaseoranewfee,charge,orlevy,— “(i) appropriate consultation has been carried out with persons or representatives of persons substantially affected by the alteration or setting; and “(ii) the Minister is satisfied that those persons, or their representatives, agree or do not substantially disagree with the alteration or setting. “(3) Subsection(1)doesnotpreventtheamendmentofanyregulation setting a fee, charge, or levy if any substantive alteration effected by the amendment is for the purpose of correctingan error. “(4) Recovery may be made in any financial year of any shortfall incostrecoveryforanyofthepreceding4financialyears,and allowancemaybemadeforanyoverrecoveryofcostsinthose Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 years (including any estimated shortfall or overrecovery for the immediately preceding financial year). “Compare: 2003 No 114 s 86 “67ZK Ministermayreviewlevelsandmethodsofcostrecovery “(1) The Minister may, as and when appropriate, review the levels and methods of cost recovery in relation to forest sink covenants. “(2) Areviewmaymakeprovisionforrecoveryinanyrelevantfinancialyearofanyshortfallincostrecoveryforanyofthepreceding 4 financial years, or make allowance for any overrecovery of costs in those years (including any estimated shortfall or overrecovery for the immediately preceding financial year). “(3) Toavoiddoubt,allareasofcostrecoveryneednotbereviewed at the same time, nor is there any time limit on the making of regulations to implement the results of a review. “Compare: 2003 No 114 s 87 “67ZL Fees and charges to be prescribed by regulations “(1) The GovernorGeneral may, by Order in Council and on the recommendationoftheMinister,makeregulationsprescribing fees and charges for the purposes of this Part. “(2) The fees and charges may be prescribed using any 1 or more of the methods specified in section 67ZI, or any combination of those methods. “(3) Differentfeesandcharges,ordifferentratesortypesoffeeor charge, may be prescribed in respect of different forest sink covenants. “(4) Without limiting subsection (3), the fees and charges prescribed may— “(a) differdependingonwhetheraspecialorurgentservice is provided: “(b) include more than 1 level of fee or charge for the same serviceprovidedindifferentways,orprovidedin,orin respect of, different places: “(c) differ for otherwise similar services provided in different ways: Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 “(d) differ depending on the amount of service required or thecomponentsoftheservicerequiredfortheparticular person. “(5) If regulations prescribe a formula for determining a fee or charge, the formula may specify the value attributed to any component of that formula. “(6) The Minister may not recommend the making of regulations underthissectionunlesssatisfiedthat,totheextentappropriate in the circumstances, the requirements of sections 67ZH and 67ZJ have been met. “Compare: 2003 No 114 s 88 “67ZM Levies “(1) The GovernorGeneral may, by Order in Council and on the recommendationoftheMinister,imposealevypayabletothe Secretaryforthepurposesofwhollyorpartiallyfundingaservice provided or function performed by the Ministry or the Secretary for the purposes of this Act. “(2) Every levy order is a regulation for the purposes of the Regulations (Disallowance) Act 1989. “Compare: 1993 No 95 s 137 “67ZN Contents of levy order “(1) Every levy order under section 67ZM must specify— “(a) the persons primarily responsible for paying the levy; and “(b) thebasisonwhichtheamountoflevyistobecalculated or ascertained; and “(c) thepersons(ifany)tobeexemptfrompayingthelevy; and “(d) the persons responsible for collecting the levy from those primarily responsible for paying it; and “(e) the maximum rate of levy; and “(f) how the actual rate of the levy is to be set; and “(g) howtheratesofthelevyandvariationofratesaretobe notified; and “(h) whether or not the persons collecting the levy are entitledto recoverthecostoflevycollection andtheestimated amount. Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 “(2) The levy order may prescribe any of the following matters: “(a) themakingofreturnstotheMinisterforthepurposeof enabling or assisting the determination of amounts of levy payable: “(b) the circumstances in which, and conditions subject to which, persons may be allowed extensions of time for the payment of any levy: “(c) the payment of additional or increased levy when amountsoflevyotherwisepayablehavebeenpaidlate, paid in part, or not paid at all: “(d) the holding of funds from which payments of levy are to be made, on trust in separate accounts. “Compare: 1993 No 95 s 140 “67ZO Trustaccountsrequiredtobekeptbypersonscollecting levies “(1) If a levy order made under section 67ZM requires the operation of a trust account for any levy money by the person responsible for collecting the levy,— “(a) anyamountheldinsuchanaccountthatisduetobepaid to the Secretary by the levy collector is to be treated as levy money held on trust for the Secretary; and “(b) anyamountsoheldontrustisnotavailableforthepaymentofacreditor( otherthantheSecretary)ofthelevy collector,andisnotliabletobeattachedortakeninexecution at the instance of that creditor; and “(c) apersonwhoceasestobeapersonresponsibleforcollecting a levy must continue to maintain the trust account until all the levy money payable to the Secretary inrespectoftheperiodduringwhichthepersonwasresponsible for collecting the levy has been paid. “(2) Nothinginsubsection(1)(c)affectsanyobligationorliability underthisActofanyotherpersonwhohasbecomeresponsible for collecting the levy concerned. “Compare: 2003 No 114 s 90 “67ZP Exemptions, waivers, and refunds Regulations made under this subpart may— Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 31 “(a) provide for exemptions from, or waivers or refunds of, any fee, levy, or charge payable under this subpart, in whole or in part, in any class of case: “(b) authorise the Secretary to grant an exemption, waiver, or refund in any particular case or class of case. “Compare: 2003 No 114 s 92 “67ZQ Fees, levies, and charges to constitute debt due to Secretary Anyfee,levy,orchargethathasbecomepayableisadebtdue to the Secretary, and is recoverable by the Secretary as a debt in any court of competent jurisdiction. Until paid in full, it remains a debt due to the Crown. “Compare: 2003 No 114 s 93 “67ZR Penalties for failure to pay fee, levy, or charge “(1) If a person has failed to pay to the Secretary by the due date any fee, levy, or charge payable under this subpart,— “(a) section14oftheMinistriesofAgricultureandForestry (Restructuring)Act1997appliestoincreasetheamount payable; and “(b) section 15 of that Act applies to allow the Secretary, in appropriatecases,towaivethepaymentofalloranyof the amount of any such increase; and “(c) section 16 of that Act applies to allow the Secretary to withdraw, or refuse to provide the person in default with, any service of the kind to which the debt relates. “(2) For the purposes of subsection (1)(c) and section 16 of the Ministries of Agriculture and Forestry (Restructuring) Act 1997, and without limiting the generality of section 16 of that Act, the references in those provisions to the refusal to provide any service are to be treated as also authorising the Secretary, in an appropriate case, to refuse to perform any functionunderthisActleadingtotheissueofunitsinrelation to the person in default. “(3) IftherefusalrequirestheSecretarytoprovideanyfurtherservice, or perform any further function involved in the refusal, theSecretarymayrecoveranyreasonableamountfortheaddi Climate Change Response Amendment Part 2 s 31 Act 2006 2006 No 59 tionalservice,function,orcostsasadebtduefromtheperson who owns or is responsible for the operation concerned. “Compare: 2003 No 114 s 94 “67ZS Obligation to pay fee, levy, charge, or penalty not suspended by dispute The obligation of a person to pay any fee, levy, charge, or penalty under this subpart, and the right of the Secretary to receive and recover the fee, levy, charge, or penalty, are not suspended by any dispute between the person and the Secretaryregardingtheperson’sliabilitytopaythefee, levy,charge, or penalty, or the amount of the fee, levy, charge, or penalty. “Compare: 2003 No 114 s 95 “67ZT Levy orders to be confirmed “(1) Ifalevyorderimposingalevyhasbeenmadeunderthissubparton orafter1Januaryinanyyearandbefore1Julyinthat year, and— “(a) havenotbeenrevokedwitheffectonorbefore1Julyin the next year; and “(b) havenotceased,andwillnotcease,tohaveeffectonor before 1 July in the next year by virtue of the Regulations (Disallowance) Act 1989,— they are to be treated as having been revoked with the close of 30 June in that next year unless confirmed by an Act of Parliament passed on or before that day. “(2) If any levy order imposing a levy has been made under this subpartafter30Juneinanyyearandonorbefore31December in that year, and— “(a) havenotbeenrevokedwitheffectonorbefore1January in the year after the next year; and “(b) havenotceased,andwillnotcease,tohaveeffectonor before1Januaryintheyearafterthenextyearbyvirtue of the Regulations (Disallowance) Act 1989,— they are to be treated as having been revoked with the closeof31Decemberintheyearaftertheyearinwhich they were made, unless confirmed by an Act of Parliament passed on or before that day. “Compare: 2003 No 114 s 96 Climate Change Response Amendment 2006 No 59 Act 2006 Part 2 s 33 “67ZU Relationship of Part with Resource Management Act 1991 Nothing in this Part derogates from any provision of the Resource Management Act 1991.” 32 Amendments to Forestry Rights Registration Act 1983 (1) Section 2 of the Forestry Rights Registration Act 1983 is amendedbyinsertingthefollowingdefinitions intheirappropriate alphabetical order: “carbonsequestrationmeanstheremovalofgreenhousegasesfrom the atmosphere by a forest sink “forestsinkmeansaforestprescribedinregulationsmadeundersection 67Y of the Forests Act 1949 “forest sink covenant means any covenant established under regulationsmadeundersection67YoftheForestsAct1949, oranyvariation of that covenant, for the purpose of establishing and maintaining a forest sink; including, but not limited to, controlling the harvesting of timber from the forest sink “greenhousegas hasthesamemeaningasinsection4(1)oftheCli mate Change Response Act 2002 “unitshasthesamemeaningasinsection4(1)oftheClimateChange Response Act 2002.” (2) Section 2A(2)(b) of the Forestry Rights Registration Act 1983 is amended by inserting “including units based on carbon sequestration that are received in accordance with a forest sink covenant” after “crop” in the second place where it appears. 33 Consequential amendment to Privacy Act 1993 Part1ofSchedule2ofthePrivacyAct1993isamended byinsertingthefollowingiteminitsappropriatealphabetical order: Climate Change Response Act Sections 18, 20, 26, 27, and 28 2002 Climate Change Response AmendmentAct 2006 2006 No 59 Legislative history 3 May 2005 Introduction (Bill 2581) 10 May 2005 First reading and referral to Commerce Committee 28July2005 ReportedfromCommerceCommittee(Bill2582) 25 October 2006 Second reading 7 November 2006 Committee of the whole House (Bill 2583) 9 November 2006 Third reading