Emissions trading scheme

• Implementing the emissions trading scheme
• Input and engagement
  • Transport Fuels Technical Advisory Group
• Emissions trading scheme reporting

Transport Fuels Technical Advisory Group (TF TAG) – Fuel Supply and Aviation
Minutes 5th meeting held on 30 October 10am – 12.45pm at the Ministry of Transport

(including follow-up meetings held on 4 March by teleconference with some members)

Present: David Jacobsen, Barry Blackett, Andrew Saunders (official), Jörn Scherzer (official), Leah Murphy (official), Frank Wong, Aaron Lawson (attending for Geoff Davis of Mobil), Greg Visser, Andrew Campbell (chair)

via video link: Karl Mischewski

Apologies: Dennis Martin (apologies), Paul Kelway (apologies), David White (technical issues), Nicole Williamson (technical issues), John Carnegie (apologies)

1. Meeting commenced with a welcome from the Chair.

• Kirstine Hulse of NZRC has left and Dennis Martin is replacing her as contact at NZRC (yet to confirm if he wishes to be actively involved)
• Ian McDonald of Fonterra is no longer a member of the group
• Andrew Saunders replaces Roger Fairclough as a member of the group from the Ministry of Economic Development
• Karl Mischewski replaces Dave Bodger of Gull as a member of the group

2. Previous minutes

• The minutes were accepted by the group
• No actions

3. Adoption of updated Terms of Reference

• The updated Terms of Reference were discussed
• Some changes to the role and meeting process were noted, including the request to members to respond to feedback requests within a timely fashion
• The Terms of Reference were accepted by the group

4. Update from The Stationary Energy and Industrial Processes (‘SEIP’) TAG

Sarah Arhaim (MED), and Carmen Blacker (Contact) from the SEIP TAG joined the meeting at 10.30am.

MED provided an overview, the TAG has completed its tasks and the regulations are out for consultation. A final report was completed, although an addendum regarding electricity price impacts will be added within the next few weeks.

The regulations cover 17 different activities, and methodologies similar in form to those in the transport fuels sector were developed for each activity.

5. Unique emission factor process

Ian Twomey (expert adviser) joined the meeting at 10.45.

Officials provided a brief overview regarding default and unique emission factors. It was noted that a default emission factor for “any other fuel” had been included in the final regulations to account for potential future fuels. It was also noted that while the inclusions of the item ‘any other fuel’ was discussed with the TAG, the inclusion of a default emission factor was not.  The default factor has been set deliberately high (10% above the highest emission factor (heavy fuel oil)) so that emissions are not underestimated if it gets used.  Also, it will mean that firms are more likley to seek a unique emission factor. 

In order to cater for potential future fuels in the transport sector (and the variability of actual emission factors in the stationary energy, industrial processes, and waste sectors), a regulations will be needed to create a process to obtain a unique emission factor. While a timeframe for developing the regulations has not been defined yet, it is likely that such a process will need to be available by September 2009. This implies that a first draft would need to be available in the first quarter of 2009 to enable consultation. It was noted further that it is not clear yet whether the unique emission factor regulations would be integrated with the regulations for each sector, or whether stand-alone regulations would be developed.

Ian Twomey then presented his report on “Establishing Unique Emission Factors for the Emissions Trading Scheme” and some discussion took place on various issues covered by the report.

Action 1: Barry Blackett to find out about accuracy of test methods regarding liquid fuels, Greg Visser to find out about accuracy of test methods regarding coal.

Action 2: Leah Murphy to send an email with questions from (and regarding) Ian’s report on unique emission factors for which feedback is requested from the group (by 7 November).

Action 3: TF TAG members to provide feedback to questions (and report) by 21 November.

6. Review of default emission factors

Officials briefly reported on how the default emission factors were set and how it is recommended they are changed over time. Some changes to previous policy and discussions with the TF TAG were suggested.  The suggestions are outlined in the explanatory note (Bulletin 9) to the liquid fossil fuel regulations that are available on the climate change solutions website. 

Action 4: Leah Murphy to send out proposals regarding the review of default emission factors (by 7 November).

Action 5: TF TAG members to provide feedback to these proposals (by 21 November).

Sarah Arhaim, Carmen Blacker and Ian Twomey departed the meeting at 11.45.

7. Guidance documentation

Officials briefed the group on the potential development of guidance material to support the annual emissions report, general reporting principles, and guidance documentation for emissions source monitoring. No comments were received by TF TAG members.

Action 6: Leah Murphy to send out an email to the group setting out the work on guidance documentation.

8. Getting ready for emissions trading

Shirley Flaherty of MED joined the meeting at 12pm.

1. Officials alerted the group to the explanatory note for the regulations and the key dates contained therein.
2. Shirley Flaherty briefly demonstrated (and answered questions about) how to register at the New Zealand Emissions Unit Registry.  Please find a link to the emission unit registry website below, the second link provides information about registration:
   
   https://www.eur.govt.nz/eats/nz/
   
   http://www.eur.govt.nz/eats/nz/help/admin/prc_myaccounts_open.html
   
   The key steps include:
   
   
   1. Register as a user. Each user is tagged to an account holder (legal person or other entity who will be the legal owner of emission units/participant in the ETS).  Each account holder can have up to 3 registered users.  If no account holder identified (ie first user) then an account holder declaration form will be sent to the registered user for completion. 
   2. Open a holding account – each account holder can have multiple accounts.  If you are a participant, one holding account must be nominated as you’re your surrender account.  Information about account holdings will not be publically available but totals will be available 1 year later. 
   3. Notification as participant.  A form will be available that can be emailed or faxed.  Information that will be publically available includes name, address, account id and activity.
   4. Notification to opt-in as participant (to check with Shirley if this is same process as previous).

9. Next meeting(s)

1. It was agreed to schedule a meeting late November / early December to follow up on the actions set out above.
2. as per above
3. the review of voluntary reporting, including initial point of data collection will be considered in a meeting of the group in March 2009

Action 7: Leah to liaise with members of the group regarding a suitable date for the next meeting in late Nov / early Dec.

The chair closed the meeting at 12.45pm.

Post meeting follow-up phone calls with some attendees. 

Leah Murphy talked to David White and Nicole Williamson (separately) on Wednesday 5 November regarding the proceedings of the meeting.  An interest in information about how to register as a participant was noted, no other comments or actions were noted in either discussion. 

Last updated: 10 December 2008