Transport Fuels Technical Advisory Group (TF TAG) – Fuel Supply and Aviation
Minutes 6th meeting held on 5 December 10am – 12pm at the Ministry of Transport (Minutes of follow-up meeting for those not present noted below)
Present: Andrew Campbell (Fuel Technology, Chair), Leah Murphy (MoT), Jörn Scherzer (MoT), David Jacobsen (Shell), Barry Blackett (BP),
via phone link: Karl Mischewski (Gull)
Guests: Janet Humphris and Robin Brasell (from the emissions trading group at the Ministry for the Environment) and Ian Twomey (Hale and Twomey, expert advisory to the TF TAG).
Apologies: Dennis Martin (NZRC), Paul Kelway (Air NZ), Andrew Saunders (MED), Greg Visser (Solid Energy), Frank Wong (Chevron)
Not present due to technical problems with teleconference link: David White (Pacific Blue), Glenn Toogood (for Nicole Williamson) (Qantas), Geoff Davis (Exxon Mobil)
1) Meeting commenced at 10.10am with a welcome from the Chair.
2) Previous minutes
- The minutes were accepted by the group
- Discussion of actions from previous meeting minutes:
Action 1 (30 October): Barry Blackett / Greg Visser to find out about test methods re liquid fuels / coal: Due to Greg Visser’s absence only liquid fuels were discussed. Barry Blackett reported back that while there are standard tests for density of standard fuels but it is unclear what the standard method is for measuring carbon content in liquid fuels, in part because the test does not appear to be a routine test.
Action 1 (5 December): Leah Murphy to find out about emission factors and test methods in the EU ETS; Barry Blackett, Andrew Campbell and Greg Visser to clarify information regarding test methods for liquid fuels and coal, and their accuracy.
Actions 2 & 3 (30 October): Leah Murphy to distribute consultation questions listed in Hale and Twomey report seeking TAG members feedback: to be discussed under agenda item 4.
Actions 4 & 5 (30 October): Leah to distribute proposals regarding the review of default emission factors and members to provide feedback: Proposals had not yet been sent; this will be done as soon as possible.
Action 2 (5 December): Leah to send proposals re the review of default emissions factors.
3) Update from ETG re SEIP TAG
Officials provided a brief overview of the SEIP TAG work status. The final report by the Technical Advisory Group is now available (see http://www.climatechange.govt.nz/emissions-trading-scheme/input-and-engagement/stationary-energy-industrial-technical-advisory-group/emission-trading-scheme-final-report/seip-tag-final-report.pdf).
A subgroup has done further work on electricity price impacts that has not been included in the final report. This work has now been completed and reported back to the ETG. The SEIP TAG has formally completed its original tasks.
Further to the above, the deadline for submissions to the exposure draft regulations for the sector is on 15 December.
4) Unique emission factor process
Ian Twomey presented a revised version of his report on “Establishing Unique Emission Factors for the Emissions Trading Scheme”. The report now also covers the feedback received from TAG members. Some discussion took place on various issues covered by the report.
The following issues were raised:
- Emulsions may be outside of the existing default factors and the UEF process may be useful for them (ie water and diesel emulsions).
- Backdating: The report proposes limited backdating; however, officials noted that potentially backdating could occur up to 13 months (i.e. during an emissions year and up to end of January for the previous emissions year).
- The turn around time for UEF applications was raised; this may require mandatory time limits for the responsible agency to ensure quick turn around times (e.g. less than 2 months)
- Some questions remain about who will be able to use UEF; only the participant who obtained the UEF and who carried out the testing or other participants as well
Action 3: Ian to include Greg Vissers and officials’ feedback in the report, and cover the findings regarding standards and their accuracy (see action 1). Once done, officials are to resend the report to all participants.
The TF TAG concluded that a formal endorsement of the report was not possible as some views differed on certain points. However, the report can be referred to by the TF TAG as a useful reference document as a basis for future work.
5) Update regarding the new government and the ETS (added agenda item)
Officials provided a brief overview regarding the change in government and the possible effects of this on the ETS. It was noted that the government intends to carry out a review of the ETS although details about the scope of this review are not yet available. Nevertheless, at present and regardless of the review and possible outcomes, existing deadlines relevant to the liquid fossil fuel sector still apply.
6) Update on potential guidance documentation
Officials noted that work on the preparation of guidance documentation for 1) emissions reporting 2) general reporting principles and 3) emissions source monitoring has not progressed sufficiently to warrant a discussion at this stage. However, their development has commenced. It was noted that the TF TAG could provide input to this guidance documentation in due course.
7) Getting ready for emissions trading
Leah Murphy alerted to the notification/registration forms that potential participants will need to fill in (so as to become participants) that were circulated to members with the agenda. It was noted that these forms are not yet available on www.climatechange.govt.nz. It was noted that TF TAG members may not be quite the right people within their organisations to receive information about the activities associated with the registry or emissions reporting. Members noted that in participant organisations there is generally an ETS implementation manager (TF TAG members are usually in the fuel supply/technical area). A method to communication with implementation team members was discussed.
Action 4: Leah to write up an email designed to inform implementation staff of represented companies highlighting information about relevant dates.
Action 5: ensure that either via the forwarding of the above email or other means, TF TAG members to supply to Leah Murphy the contact details for their relevant staff working on implementation of the ETS within represented organisations.
8) Communication (added agenda item)
It was noted that again some TF TAG members were unable to participate in the meeting due to technical problems with the phone/videoconferencing gear. It was suggested to test communication beforehand, and to follow up with those members that were unable to attend so that they are aware of the discussions that have taken place.
Action 6: Leah to follow up with TF TAG members who were not able to attend. Officials are to ensure phone/video conferencing gear is workable.
9) Next meeting(s)
It was agreed not to schedule a meeting at this stage. A further meeting may be required following the release of the UEF exposure draft, likely in February or March 09.
The chair closed the meeting at 11.51pm.
Follow- up TF TAG meeting on Thursday 11 December 2008.
Present: Frank Wong (Exxon Mobil), Leah Murphy (MoT), Jörn Scherzer (MoT)
via phone link: David White (Pacific Blue), Nicole Williamson (Qantas)
Leah Murphy read through the minutes of the meeting held on 5 December. Items were discussed in turn with attendees. The following comments/actions were noted at the meeting:
Emulsions could be treated like biofuels. The water content could be excluded in the same fashion as biofuels from obligation fuels especially as they are likely to be mixed in New Zealand rather than imported as emulsions.
It is proposed that the domestic aviation sector be treated in a similar manner in the Australian Carbon Pollution Reduction Scheme, in that, domestic aviation will have a liability for 100% of its emissions from day one. Also noted was the price cap in the Australian scheme (note from officials after the meeting: The Australian White Paper was released on 15 December. A price cap of $40 per tonne of carbon dioxide equivalent is proposed). It was noted that the present legislation does not include a price cap in the New Zealand scheme.
Members asked officials to update the TF TAG in the event that any changes/alterations occur in the New Zealand setting that are of particular note to the transport sector.
Last updated: 5 January 2009
