OZONE LAYER PROTECTION ACT 1996

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1 G22 Report of the Minister for the Environment on the operation of the OZONE LAYER PROTECTION ACT 1996 for the period ended 31 December 2012 Presented to the House of Representatives Pursuant to Subsection (2) of Section 30, of the Ozone Layer Protection Act 1996

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3 CONTENTS 1 PURPOSE HIGHLIGHTS OF ACCOMPLISHMENTS TO DATE OPERATION OF THE ACT Administration Enforcement CONTROLLED SUBSTANCES Hydrochlorofluorocarbons (HCFCs) Domestic Consumption Domestic Wholesaler Permits Comparison with International Obligations Ongoing trend for HCFCs Methyl Bromide Non-Quarantine and Pre-Shipment Use Ongoing trend for QPS Methyl Bromide Alternatives for QPS PROHIBITED SUBSTANCES EXPORTS OF CONTROLLED SUBSTANCES APPENDIX I: EXEMPTIONS LIST OF TABLES Table 1... HCFCs Consumption 6 Table 2... HCFCs: Wholesaler permits 7 Table 3... Methyl Bromide: Imports and Exports 8 Table 4... Import Exemption Summary 10 LIST OF FIGURES Figure 1...Montreal Protocol vs New Zealand Phase-out Schedules 7 ABBREVIATIONS CFC HCFCs ODP ODS QPS chlorofluorocarbon hydrochlorofluorocarbons ozone depleting potential ozone depleting substance quarantine and pre-shipment Page 3 of 20

4 1 PURPOSE This report is provided under section 30 of the Ozone Layer Protection Act 1996 (the Act) to fulfil the requirement to annually prepare and lay before the House of Representatives a report describing the operation of the Act. The purpose of the Act is to: Help protect human health and the environment from adverse effects resulting or likely to result from human activities which modify or are likely to modify the ozone layer; Phase out ozone depleting substances as soon as possible, except for essential uses; Give effect to New Zealand s obligations under the Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances that Deplete the Ozone Layer. 2 HIGHLIGHTS OF ACCOMPLISHMENTS TO DATE New Zealand has phased out all required ozone depleting substances under the Vienna Convention for the Protection of the Ozone Layer, and the subsequent Montreal Protocol on Substances that Deplete the Ozone Layer (the Protocol). The import of non-essential halons was phased out by 1994, and chlorofluorocarbons (CFCs), other fully halogenated CFCs, carbon tetrachloride, methyl chloroform and hydrobromofluorocarbons (HBFCs) by The import of methyl bromide for non-quarantine and pre-shipment (QPS) purposes ended in New Zealand does not manufacture any of the substances controlled under the Protocol. The remaining controlled substances are the import of bulk hydrochlorofluorocarbons (HCFCs). The Montreal Protocol requires phase-out of HCFCs by New Zealand has accelerated this schedule to phase-out the overwhelming majority of HCFC imports by 2015 and is on track to meet this target. The Ozone Layer Protection Regulations 1996 (the Regulations) progressively restrict HCFC import volumes.the previous phase down stage was a 62.5 per cent reduction of base year permits and a 75 per cent reduction of special permits in Overall, the Protocol is working to protect the ozone layer. The most recent United Nations Environment Programme (UNEP) synthesis report found that 2010 global, mid latitude and polar ozone column amounts are lower than 1980 levels. The ozone column amounts have remained relatively constant in the last decade, as the ozone depleting substances decreased only slightly over this period. If the Montreal Protocol had not been successful and emissions of ozone depleting substances had continued to increase, there would have been severe ozone Page 4 of 20

5 depletion and substantial increases of ultraviolet radiation. This would have had serious impacts on both human health and the environment. 3 OPERATION OF THE ACT 3.1 Administration The Ministry for the Environment is responsible for administering the Act and the Regulations. The Environmental Protection Authority (EPA) has responsibility for enforcing the Act, and implementing the permit system for imports and exports under the Regulations. The New Zealand Customs Service enforces the import and export controls at New Zealand s borders. 3.2 Enforcement In 2008 two refrigeration engineers were successfully prosecuted under section 13(f) of the Act for reckless discharge of an ozone depleting substance. Each was fined NZ$750 plus court costs. No prosecutions have been undertaken in subsequent years. 4 CONTROLLED SUBSTANCES The Protocol measures ozone depleting substances in ozone depleting potential (ODP) tonnes. ODP is a relative measure of how much a substance depletes the ozone layer rather than physical quantity. 1 An ozone depleting substance means any controlled substance or any other substance that has an ODP of 0.01 or greater. Under the Act a controlled substance means any substance defined as such in Schedule 1 of the regulations. Controlled substances fall into three categories: Phased out substances for which no further permits may be issued: CFCs, halons, carbon tetrachloride, methyl chloroform, HBFCs and all QPS uses of methyl bromide; HCFCs, which are still being phased out and for which import levels are periodically reduced and controlled; Imports of methyl bromide for QPS purposes; these require permits under the Regulations to meet reporting obligations under the Protocol. QPS methyl bromide is not restricted under the Protocol, or required to be phased out under the Act. 1 CFC-11 (Trichlorofluoromethane) is the standard measurement where one metric tonne is equal to one ODP tonne. The ODP represents the amount of ozone destroyed by emission of a gas over its entire atmospheric lifetime relative to that due to the same mass of CFC-11. global change on ozone due to compound ODP of a compound = global change in ozone due to CFC-11 Page 5 of 20

6 4.1 Hydrochlorofluorocarbons (HCFCs) HCFCs are gases used in refrigeration and air conditioning units, heat pumps and other heat transfer equipment. HCFCs are also used in foam products such as building insulation. HCFCs have replaced the more ozone depleting CFCs. While the Montreal Protocol requires a phase-out of HCFCs by 2030, New Zealand has accelerated this schedule to phase out the import of bulk HCFCs by Domestic Consumption As New Zealand does not manufacture ozone depleting substances, consumption is measured as imports minus exports. There are many different types of HCFCs which are imported into New Zealand, either singly or in blends. Table 1 shows HCFCs consumption in both metric and ODP tonnes. Table 1 HCFCs Consumption Year HCFC-22 HCFC-123 HCFC-124 HCFC- 141b Metric tonnes HCFC- 142b Total Total ODP tonnes New Zealand s baseline consumption was 56.0 ODP tonnes (as of 1989). Table 1 shows that New Zealand s total consumption of HCFCs has reduced to 9.5 ODP tonnes in 2012, an 83 per cent reduction in consumption from baseline levels. From 2011 to 2012, HCFC consumption decreased by 17 per cent Domestic Wholesaler Permits Under the Act, HCFCs are imported under the authority of a base year permit, a special permit (transferred from an existing base year permit) or a wholesaler permit, granted by the EPA. The EPA may issue wholesaler permits not exceeding a total of 2.5 ODP tonnes of HCFCs per year, divided as the EPA considers fair among the applicants for the permits. Holders of wholesaler permits are permitted to sell HCFCs to new or non-entitled users. Page 6 of 20

7 %HCFC consumed relative to baseline year As required by clause 11(3) of the Regulations, the names of the persons to whom HCFCs wholesaler import permits were granted in 2012 and the ODP amount permitted are set out in Table 2. Table 2 HCFCs: Wholesaler permits Name Amount (ODP tonnes) BOC NZ Ltd Heatcraft New Zealand Ltd Patton Refrigeration Ltd Refrigerated Engineering CO Ltd AHI Carrier NZ Ltd Total Comparison with International Obligations The following graph illustrates the Montreal Protocol phase-out schedule, the New Zealand phase-out schedule and New Zealand s actual consumption. Figure 1 Montreal Protocol vs New Zealand Phase-out Schedules for HCFCs New Zealand's Consumption of base year HCFCs vs Phase-out schedules NZ schedule Protocol Schedule NZ Consumption Page 7 of 20

8 4.1.4 Ongoing trend for HCFCs The most recent phase-down of HCFCs consumption was 1 January This phase down reduced base year permits by 62.5 per cent and special permits by 75 per cent. The graph shows that New Zealand s consumption of HCFCs continues to decline and indicates that New Zealand will be in a position to meet its 2015 phase-out schedule. 4.2 Methyl Bromide There are two uses of methyl bromide under the Protocol: Non-QPS use (prohibited in New Zealand from 1 January 2008); and QPS use (not controlled under the Montreal Protocol or Act). Globally, approximately 90% of methyl bromide for non QPS methyl bromide use has been phased out; with a deadline of 2015 for full phase-out. Just over 50% of global methyl bromide consumption is for QPS use, which is not controlled by the Protocol. In New Zealand, methyl bromide is used for QPS purposes to protect the environment and primary industries from harmful overseas organisms and to meet the requirements of trading partners importing New Zealand products. The most common goods fumigated with methyl bromide are log and timber products for export, and imported fruits and vegetables, contaminated shipping containers, scrap metal consignments, wood products, bamboo, contaminated vehicles, used car parts and stock food. The following table shows New Zealand s import, export and net consumption of methyl bromide in both metric and ODP tonnes: Table 3 Year Methyl Bromide: Imports and Exports Non-QPS Imports QPS Imports Total Imports Exports Net Consumption (metric tonnes) Net Consumption (ODP tonnes) Page 8 of 20

9 4.2.1 Non-Quarantine and Pre-Shipment Use New Zealand phased out all non-qps methyl bromide by 1 January New Zealand was permitted critical use exemptions from to import methyl bromide for specified uses in the horticultural industry, but these stocks could only be used before 31 December Ongoing trend for QPS Methyl Bromide New Zealand s consumption of methyl bromide for QPS increased from ODP tonnes in 2011 to ODP tonnes in 2012, a 20.4 per cent increase. This increase in QPS methyl bromide reflects an increased level of log exports (including a 15% increase in logs exported to China between 2011 and 2012) Alternatives for QPS While not yet controlled by the Montreal Protocol, there is international interest in removing QPS methyl bromide from use once there are viable alternatives available. New Zealand is actively working to ensure methyl bromide use is well managed and monitored in New Zealand. The controls on methyl bromide use are among the strictest on any chemical in New Zealand, and cover its importation, transport, storage, use and disposal. The Ministry for Primary Industries (MPI) works closely with key trading partners to negotiate lower rates of methyl bromide for the treatment of export logs. For example New Zealand is working with China through the New Zealand China Free Trade Agreement SPS working group. This working group is actively pursuing reductions in the QPS methyl bromide treatment rate for products (particularly logs) exported between New Zealand and China, and exchanging information and research on alternative treatments to methyl bromide. MPI has also pioneered the use of phosphine for treating logs, which is replacing approximately 1,200 tonnes of methyl bromide per annum. MPI continues to negotiate with other countries to build acceptance for methyl bromide alternatives such as phosphine. In addition, New Zealand is also funding research into methyl bromide alternatives through the Stakeholders in Methyl Bromide Reduction Group (STIMBR), a collaboration between industry groups (lead by the forest industry) and research institutions. STIMBR aims to reduce use and emissions of methyl bromide in New Zealand. STIMBR has received funding from industry via a voluntary levy on each kilo of methyl bromide used and on phosphine treated logs. In September 2011, MPI provided STIMBR with Primary Growth Partnership funding of NZ$2.5 million matched by NZ$3 million levy funding. In October 2012, STIMBR started work on a new NZ$8.2 million programme. This programme was co-funded by MBIE for NZ$5.2 million over four years, with the balance funded by the levy. MPI chairs a Methyl Bromide Alternative Project Working Group involving officials from Australia, Canada, Japan, New Zealand and the USA. The group shares information on QPS alternatives treatment research being undertaken in each Page 9 of 20

10 country. The group meets via teleconference and in conjunction with the annual Conference on Methyl Bromide Alternatives and Emissions Reductions in the USA. New Zealand also has a technical representative on the Methyl Bromide Technical Options Committee that reports to the parties of the Montreal Protocol. There is currently no single alternative fumigant, method of treatment or alternative approach to replace methyl bromide for all intended QPS uses. While a number of possible alternatives have been identified, work is required to ensure the technical and economic suitability of these; including in regard to potential toxicity to humans, efficacy for all life stages of target pests and acceptance by trading partners. New Zealand continues to commit a significant level of resourcing into research for methyl bromide alternatives and reduction, and is committed to moving away from methyl bromide use where feasible alternatives are available and widely accepted. 5 PROHIBITED SUBSTANCES Prohibited substances are controlled ozone depleting substances that have been phased out in New Zealand. The import of certain goods containing these substances is also prohibited. Under clause 28 of the Regulations, certain prohibited substances and goods may be permitted if the EPA grants an exemption. Section 30(3)(a) of the Act and clause 36 of the Regulations require the details of these exemptions to be published, and they are listed in Appendix I. There were 34 exemptions granted in 2012, as shown in Table 5: Table 4 Import Exemption Summary Aerosol/extinguisher (necessary for human health or safety) Replacement of export Transhipment Purpose of Exemption Granted under Regulation 31(1) in respect of the importation of any aerosol or fire extinguisher that is to be used only for a use that is necessary for human health or safety. Granted under Regulation 32 in respect of any substance or good that is imported into New Zealand only for the purpose of replacing any substance or goods already transhipped into another ship or aircraft for carriage to a destination that was outside the territorial limits of New Zealand. Granted under Regulation 29(c) for HCFCs used in the manufacture of aerosols that are to be used only for a use that is necessary for human health or safety. Number Page 10 of 20

11 6 EXPORTS OF CONTROLLED SUBSTANCES New Zealand periodically exports quantities of substances to the Pacific that have been previously imported. In 2012, HCFC exports totalled 1 metric tonne. Exports of methyl bromide for QPS use totalled 6.6 metric tonnes in Page 11 of 20

12 APPENDIX I: EXEMPTIONS Import Exemption Reasons Note Shorthand Reason 1 Necessary aerosol/extinguisher This exemption is granted under Regulation 31(1) in respect of the importation of any aerosol or fire extinguisher that is to be used only for a use that is necessary for human health or safety. 2 Replacement of export This exemption is granted under Regulation 32 in respect of any substance or goods that are imported into New Zealand only for the purpose of replacing any substance or goods already transhipped into another ship or aircraft for carriage to a destination that was outside the territorial limits of New Zealand. 3 Necessary HCFC aerosol This exemption is granted under Regulation 29(c) for HCFC that is to be used in the manufacture of aerosols that are to be used only for a use that is necessary for human health or safety. 4 Transhipment 5 ODS fire extinguisher 6 Halon for refrigeration This exemption is granted under Regulation 32 in respect of any substance or goods that are imported into New Zealand only for the purpose of being transhipped into another ship or aircraft for carriage to a destination that is outside the territorial limits of New Zealand. This exemption is granted under Regulation 29(d) for any bulk recycled substance, or any bulk controlled substance that is not a halon, that is to be used only in the servicing of fire extinguishers in circumstances where the substance cannot be obtained from supplies in New Zealand and where the servicing is required either because the fire extinguisher was used in a fire or as a result of a loss of halon that was outside the control of the applicant. This exemption is granted under Regulation 29(a) for bulk recycled halon-1301 that is to be used only for refrigeration purposes and only in circumstances where the use of halon-1301 for refrigeration purposes is necessary for human health or safety and halon-1301 cannot be obtained from supplies in New Zealand. 7 Essential aerosol/extinguisher This exemption is granted under Regulation 29(b) for bulk CFC, halon, carbon tetrachloride, methyl chloroform, or HBFC that is to be used in the manufacture of aerosols or fire extinguishers for a used determined by the Parties to the Montreal Protocol to be an essential use and that use is necessary for human health or safety. Page 12 of 20

13 Note Shorthand Reason 8 Essential or Critical use This exemption is granted under Regulation 29(e) for any bulk controlled substance that is to be used only for a use determined by the Parties to the Montreal Protocol to be an essential use or a critical use. Page 13 of 20

14 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Conditions NZ Defence Force 1 Halon Fire Not specified Not specified 1 12/01/ This exemption is for the import of a Halon Fire fitted to a military helicopter Air National Ltd Auckland Halon Fire 20kg Halon 1 16/01/ This exemption is for the import of a Halon Fire fitted to a military helicopter Vincent Aviation Limited Halon Fire 10kg Halon 1 24/01/ This exemption is for Halon Fire s to be fitted to aircraft to be imported into New Zealand 2. The exemption is valid for a period of 12 months from the Airwork (NZ) 1984 Limited Halon Fire 25 kg Halon /01/ This exemption is for re-importing Halon Fire s serviced in Australia to be fitted to aircraft maintained by Airwork NZ Ltd Air Nelson Ltd Halon Fire kg Halon /01/ This exemption is for importing Halon 1301 for fire extinguishers fitter to Air Nelson Aircraft D & K Properties Ltd Halon fire 1 litre (Halon 1301: 1.57 kg/l Halon 1211: 1.80 kg/l) Not specified 1 9/02/2012 Page 14 of 20

15 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Conditions Fieldair Engineering Ltd 6 Fire 9lb = kg Halon /02/ Customs Aeronautical Support 1 Halon Fire Not specified Halon /02/ This exemption is for the import and then export of one Halon Fire Jetstar Airways Ltd Halon Fire 100 kg /03/ Patton Ltd HCFC 22 = 1985 kg HCFC 406a = 463 kg HCFC 22 HCFC 406a 4 19/04/ This exemption is for the import of HCFC to replace amounts sent out by Patton from their entitlement Patton Ltd HCFC 22 = 489 kg HCFC 406a = 22 kg HCFC 22 HCFC 406a 4 19/04/ This exemption is for the import of HCFC to replace amounts sent out by Patton from their entitlement stock in Vincent Aviation Halon Fire Halon 1301 = 4 kg Halon 1211 = 2 kg Halon 1301 and /05/2012 Page 15 of 20

16 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Conditions Hawker Pacific NZ Limited Halon Fire 2-3 kg Not specified 1 25/05/ Hawker Pacific NZ Limited 2 Halon Fire s 1.134kg Halon /06/ Hawker Pacific NZ Limited 2 Halon Fire s 3.62 kg each Halon /06/ Hawker Pacific NZ Limited 2 Halon Fire s 3.62 kg each Halon /06/ Vincent Aviation Ltd Halon Fire s Halon Fire 4 with 1kg in each 1 with 1.5kg Halon 1301 and /06/ Jetconnect Ltd 3 Halon Fire s 3 with 2 kg in each Halon /07/2012 Page 16 of 20

17 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Conditions The University of Auckland Halon grams 8 25/07/ This exemption is for the import of Halon 2402 for research and development at Auckland University only 2. The pure substance is supplied only in re-closable containers or high pressure cylinders smaller than three litres or in 10 millilitre or smaller glass ampoules, marked clearly as substances that deplete the ozone layer 3. The used or surplus substance should be collected and recycled if practical or the material should be destroyed if recycling is not practical 4. The release of this substance to the atmosphere is not allowed while it is being handled or used 5. A report must be submitted to the EPA by the permit holder on the following: The purity of the substance The quantity of the substance The application of the substance The specific test standard or procedure requiring the substance 6. This exemption is valid for a period of 12 months from the Virgin Australia (NZ) Ltd Halon Fire 5.1kg Halon /08/ Virgin Australia (NZ) Ltd 25 Halon 1211 Fire s 1.7 kg each Halon /08/2012 Page 17 of 20

18 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Conditions Airwork Flight Operations 20 Halon 1211 Fire 12 of 1.5kg each 8 of 2kg each Halon /08/ Jetconnect Ltd Fire s Fire 40 Halon 1211 of 1.5kg 1 Halon 1301 of 36.28kg Halon 1211 and /08/ Hawker Pacific NZ Limited 1 Halon fire extinguisher of Halon Fire of Halon 1211 of 1.134kg 1 Halon 1301 of 3.62 kg Halon 1211 and /08/ Hawker Pacific NZ Limited 1 Halon fire extinguisher of Halon Fire of Halon 1211 of 1.134kg 1 Halon 1301 of 3.62 kg Halon 1211 and /08/ Helicopters NZ Ltd Halon 1211 Fire 1.04 kg Halon /08/2012 Page 18 of 20

19 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Conditions Air New Zealand Technical Operations 21 Halon 1301 Fire s 235 kg Halon /09/ Royal New Zealand Air Force 12 Halon 1301 Fire s 18 Halon 1211 fire s 12 Halon 1301 of 2.611kg each 18 Halon 1211 of 1.5kg each Halon 1301 and /09/ Peters and May Customs Brokers on behalf of Trevor Russo A halon fire suppression system Not specified Not specified 1 3/10/ Vincent Aviation Ltd 4 Halon 1301 fire extinguishers 2 Halon 1211 fire extinguisher 4 Halon 1301 of 1kg each 2 Halon 1211 of 1.5kg each Halon 1301 and /10/ Realcold Ltd HCFC kg HCFC /10/ This Exemption is for the replacement of the amount of HCFC Realcold has sent to Samoa Page 19 of 20

20 # Company Name Product Name Quantity (in Kgs) Substance Reason for exemption (Note #) Issue Date Realcold Ltd HCFC kg HCFC /10/2012 Conditions 1. This Exemption is for the replacement of the amount of HCFC Realcold has sent to Samoa New Zealand Defence Force Halon 1211 and 1301 Fire s Halon 1211 = 283 kg Halon 1301 = 1640 kg Halon 1301 and /10/ Eagle Airways Ltd 6 Halon 1211 Fire s 2.5lbs each = total kg Halon /12/ Air National Corporate Ltd Halon kg Halon /12/2012 Page 20 of 20

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