it is added to their stockpile. If, in subsequent years they do not import or mine 2,000 tonnes of coal, they are not an NZ ETS participant, and are able to sell stockpiled coal without reporting or paying an NZ ETS obligation. The Government seeks to maintain the integrity of the NZ ETS by closing this loophole and ensuring that NZ ETS obligations cover all coal emissions. Options Resolution of this problem may require amending the NZ ETS legislation. Three options to resolve this issue are considered. 1. Remove the ability to make stockpiling adjustments. 2. Require the reporting of all coal sold or used from the stockpile in the year, regardless of whether the participant meets the threshold for coal importing, purchasing or mining 3. Remove the threshold for coal mining, importing and purchasing. This would require all coal to be accounted for annually (including stockpile adjustments). The Government prefers option 2. This is because it has the least impact on participants as it still allows stockpile adjustments to be made, does not capture those below the thresholds and is administratively efficient. The Government seeks views on the impacts of these options. Questions Do you agree with the proposal that all coal sold or used from a stockpile be reported, regardless of whether the participant meets the threshold for coal importing or mining in the year the coal was sold or used? If not, why not? Other proposals that we would like your feedback on A further six issues are summarised below. Issue 4 – Ability to amend unique emissions factor errors from previous years Some participants have the option of using unique emissions factors (UEFs) instead of prescribed default emissions factors. Applications for new UEFs need to be made by 31 January in the year they will be used. There are many requirements for UEF applicants, including the need to monitor the accuracy of each UEF. The NZ ETS legislation prevents amendments to UEFs that were used in previous years even if an error is found. The only alternative is to revert the participant back to the default emissions factor. Other areas of the NZ ETS legislation provide ways to resolve errors with ‘make good’ provisions (eg, through amendments of emissions returns) and penalties, if appropriate. The Government seeks the ability to amend UEFs from previous years if an error is found. This would result in amendments to emissions returns, and penalties would then be applicable.
it is added to their stockpile. If, in subsequent years they do not import or mine 2,000 tonnes of coal, they are not an NZ ETS participant, and are able to sell stockpiled coal without reporting or paying an NZ ETS obligation. The Government seeks to maintain the integrity of the NZ ETS by closing this loophole and ensuring that NZ ETS obligations cover all coal emissions. Options Resolution of this problem may require amending the NZ ETS legislation. Three options to resolve this issue are considered. 1. Remove the ability to make stockpiling adjustments. 2. Require the reporting of all coal sold or used from the stockpile in the year, regardless of whether the participant meets the threshold for coal importing, purchasing or mining 3. Remove the threshold for coal mining, importing and purchasing. This would require all coal to be accounted for annually (including stockpile adjustments). The Government prefers option 2. This is because it has the least impact on participants as it still allows stockpile adjustments to be made, does not capture those below the thresholds and is administratively efficient. The Government seeks views on the impacts of these options. Questions Do you agree with the proposal that all coal sold or used from a stockpile be reported, regardless of whether the participant meets the threshold for coal importing or mining in the year the coal was sold or used? If not, why not? Other proposals that we would like your feedback on A further six issues are summarised below. Issue 4 – Ability to amend unique emissions factor errors from previous years Some participants have the option of using unique emissions factors (UEFs) instead of prescribed default emissions factors. Applications for new UEFs need to be made by 31 January in the year they will be used. There are many requirements for UEF applicants, including the need to monitor the accuracy of each UEF. The NZ ETS legislation prevents amendments to UEFs that were used in previous years even if an error is found. The only alternative is to revert the participant back to the default emissions factor. Other areas of the NZ ETS legislation provide ways to resolve errors with ‘make good’ provisions (eg, through amendments of emissions returns) and penalties, if appropriate. The Government seeks the ability to amend UEFs from previous years if an error is found. This would result in amendments to emissions returns, and penalties would then be applicable.