OZONE LAYER PROTECTION ACT 1996

Transcription

1 G22 Report of the Minister of Commerce and Minister for the Environment on the operation of the OZONE LAYER PROTECTION ACT 1996 for the period ended 31 December 2006 Presented to the House of Representatives Pursuant to Subsection (2) of Section 30, of the Ozone Layer Protection Act

2 CONTENTS ABBREVIATIONS BACKGROUND Introduction The Ozone Layer The Vienna Convention The Montreal Protocol London Amendment Copenhagen Amendment Vienna Adjustment Montreal Amendment Beijing Amendment Science and the Effectiveness of the Montreal Protocol New Zealand's Ozone Protection Legislation Ozone Layer Protection Act CONTROLLED SUBSTANCES Hydrochlorofluorocarbons (HCFCs) HCFC Consumption HCFC Wholesaler Permits Methyl Bromide Methyl Bromide Imports and Exports Non-Quarantine and Pre-Shipment Use PROHIBITED SUBSTANCES EXPORTS OF CONTROLLED SUBSTANCES RECYCLED SUBSTANCES ADMINISTRATION AND OPERATION Ministry for the Environment Ministry of Economic Development New Zealand Customs Service APPENDIX I: CONTROLLED SUBSTANCES...20 APPENDIX II: PROHIBITED SUBSTANCES...22 APPENDIX III: EXEMPTIONS...25 Section A LIST OF EXEMPTIONS...26 Section B CONDITIONS

3 LIST OF TABLES Table 1 HCFC Phase-out Schedules...11 Table 2 HCFC Consumption: ODP tonnes...12 Table 3 HCFC Consumption: metric tonnes...13 Table 4 Wholesaler permits in Table 5 Methyl Bromide Phase-out Schedules...14 Table 6 Methyl Bromide Imports and Exports...14 Table 7 Exemption Summary...17 LIST OF FIGURES Figure 1 Montreal Protocol vs Domestic Phase-out Schedules...12 ABBREVIATIONS CFC HCFC ODP QPS UNEP WMO chlorofluorocarbon hydrochlorofluorocarbon ozone depleting potential quarantine and pre-shipment United Nations Environment Programme World Meteorological Organisation

4 1 BACKGROUND 1.1 Introduction This report is provided to meet the requirement of section 30 of the Ozone Layer Protection Act 1996 (the Act). This specifies that the Minister of Commerce and the Minister for the Environment, as soon as practicable after the end of each year, prepare and lay before the House of Representatives a report describing the operation of the Act during that year. Similar reports have been written in previous years on an annual basis pursuant to section 52 of the Ozone Layer Protection Act This report covers the full calendar year from 1 January 2006 to 31 December The purpose of the Act is described in section 4 and is to: Help protect human health and the environment from adverse effects resulting from, 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. The Act came into force on 16 September 1996 and replaced the Ozone Layer Protection Act 1990 as the legislation controlling the phase-out of ozone depleting substances. The Act also allowed for the making of the Ozone Layer Protection Regulations (the Regulations), which came into force on the same day. 1.2 The Ozone Layer A link between increasing emissions of synthetic chlorine compounds and decreasing amounts of stratospheric ozone was suggested as early as 1974, but this linkage was not validated until 1985 when British scientists observed the Antarctic ozone hole for the first time. Loss of stratospheric ozone at mid latitudes was also recorded at this time. Depletion of the ozone layer allows increased levels of ultraviolet radiation to reach the surface of the earth increasing adverse human health and environmental effects. These are now known to include eye damage, skin cancer, reduced plant growth, changes in the competitive balance between species, negative impacts on biomass productivity and community structure in aquatic ecosystems, and changes to biogeochemical processes, air quality and the integrity of building materials 1. The health of the ozone layer is of particular importance to New Zealand because: there is naturally less ozone above the southern hemisphere than above the northern hemisphere; 1 UNEP (2006). Environmental effects of Ozone Depletion and the Interaction with Climate Change 2006 Assessment

5 southern hemisphere countries in general and New Zealand in particular move closer to the sun during late summer and early autumn than do northern hemisphere countries; New Zealand has cleaner air than many countries (air pollution absorbs ultraviolet radiation); many New Zealanders are fair-skinned and therefore are at greater risk of skin cancers; and as a country reliant on agricultural and fishing resources we depend on good plant growth and a healthy marine environment. 1.3 The Vienna Convention The degree of international concern that followed the scientific confirmation of widespread stratospheric ozone depletion was reflected in the finalisation of the Vienna Convention for the Protection of the Ozone Layer (the Convention) in The Convention promotes international co-operation and action, based on relevant scientific and technical considerations, to protect the ozone layer from modifications due to human activities. New Zealand signed the Convention in March 1986 and ratified it in June By 31 December 2006, 191 countries had ratified, accepted or approved the Convention. 1.4 The Montreal Protocol New Zealand played a significant role in the formulation of a subsequent Protocol to the Convention, which aimed to protect the ozone layer by controlling global emissions of substances that deplete it. The ultimate objective is to eliminate these substances on the basis of developments in scientific knowledge, taking into account technical and economic considerations and bearing in mind the development needs of developing countries. The Montreal Protocol on Substances that Deplete the Ozone Layer (the Protocol) was agreed to on 16 September 1987, and New Zealand was the sixth country to ratify it. The Protocol required developed countries to reduce the consumption of chlorofluorocarbons (CFCs) by 1998 to 50 percent of the level of consumption in 1986, and to freeze the production of halons (fire extinguishing agents containing bromine) at 1986 levels by the end of There are different requirements for developing countries, putting in practice perhaps the first use of the concept of common but differentiated responsibilities. As at 31 December 2006, 191 countries had ratified, accepted or approved the Montreal Protocol London Amendment A revision of the Protocol in London in June 1990 introduced a 100 percent phaseout of other halogenated CFCs for developed countries by 2000 and placed restrictions on two new chemicals, carbon tetrachloride and methyl chloroform (100 percent phase-out by 2000 and 2005 respectively). A prohibition on trade of certain

6 substances and goods to or from a state not a Party to the Protocol was also agreed. As at 31 December 2006, 184 countries had ratified, accepted or approved the London Amendment Copenhagen Amendment In 1992 the Protocol was again revised at the Fourth Meeting of Parties held in Copenhagen. The Copenhagen Amendment required developed countries to cease consumption of halons by 1 January 1994 and consumption of CFCs, methyl chloroform and carbon tetrachloride by 1 January The Amendment also introduced three new groups of chemicals. These were hydrobromofluorocarbons, which were to be phased-out by 1 January 1996, hydrochlorofluorocarbons (HCFCs) to be phased-out by Consumption of methyl bromide for non-quarantine and pre-shipment use was to be capped at 1991 levels by Methyl bromide for quarantine and pre-shipment use (QPS) use was exempted from control by the Protocol for biosecurity and trade reasons. This exemption is still in place. New Zealand was the first developed country to ratify the Copenhagen Amendment. As at 31 December 2006, 175 countries had ratified, accepted or approved it Vienna Adjustment At the December 1995 meeting of Parties to the Montreal Protocol held in Vienna, it was agreed that methyl bromide consumption in developed countries be phased-out by The Parties agreed in principle that there could be exemptions after 2010 for then undefined critical agricultural uses. The Parties also reduced the total amount of HCFC that developed countries could consume, from 1989 HCFC consumption plus 3.1 percent of 1989 CFC consumption, to 1989 HCFC consumption plus 2.8 percent of 1989 CFC consumption. The Parties also confirmed that for developing countries, CFCs, halons and carbon tetrachloride will be phased-out by 2010, and methyl chloroform by HCFCs were to be phased-out by 2040, and from 2002, methyl bromide consumption would be frozen at an average of the 1995 to 1998 (inclusive) levels. Because the changes agreed to in Vienna were adjustments to the Protocol rather than amendments, they are automatically binding on any country which has ratified the relevant earlier amendments, and did not have to be ratified in their own right to come into force Montreal Amendment At the Ninth Meeting of Parties held in Montreal, Canada, in September 1997, the Protocol decided to advance the final phase-out date for methyl bromide from 2010 to 2005, with strengthened interim cuts, and a critical uses exemption for nonquarantine and pre-shipment uses after the final phase-out date (see Section 2.2.2). A ban on trade in methyl bromide with non-parties was also adopted

7 During 1997, a New Zealand CFC metered dose inhaler strategy was submitted to the United Nations Environment Programme (UNEP), as requested by the Parties to the Protocol. The Montreal Amendment also required Parties to establish systems for licensing imports and exports of ozone depleting substances. As at 31 December 2006, 149 countries had ratified the Montreal Amendment. The 10 th Meeting of Parties held in Cairo in November 1998 made few substantive decisions but commenced debating the links between the Montreal and Kyoto Protocols (ozone depletion and climate change issues) that continue to the present day. One decision, however, requested the development of national or regional strategies for halon management and for these strategies to be submitted to the Secretariat by 30 July A New Zealand strategy was developed and submitted by the due date Beijing Amendment The 11 th Meeting of Parties, held in Beijing in December 1999, agreed to amend the Protocol to require all Parties to: ban trade in HCFCs with non Parties from 1 January 2004; phase-out the fire extinguishing agent bromochloromethane by 1 January 2002; report annually to the Protocol the quantities of methyl bromide used for QPS purposes and to adopt a revised definition of pre-shipment. As at 31 December 2006, 121 countries had ratified the Beijing Amendment. New Zealand has ratified all amendments. There have been no amendments or adjustments to the Protocol arising from the Meetings of the Parties, from 1999 to Science and the Effectiveness of the Montreal Protocol The Montreal Protocol has been hailed as the perhaps the single most successful international environmental agreement to date. 2 The most recent report from the UNEP Scientific Assessment Panel 3 indicates that levels of ozone depleting substances in the atmosphere peaked in the early 1990s and are declining as expected and in line with decreasing ozone-depleting substance production. Global ozone depletion is currently at its peak level and recovery to pre-1980 levels at midlatitudes is expected by approximately The Antarctic ozone hole is expected to disappear by Without action under the Protocol it is calculated that the total quantity of ozone depleting substances in the atmosphere would, by 2050, be five times today s level. 2 United Nations Secretary General Kofi Annan (2003). 3 WMO/UNEP, Scientific Assessment of Ozone Depletion: 2006, prepared by the Scientific Assessment Panel of The Montreal Protocol on Substances That Deplete the Ozone Layer

8 New Zealand contributes to the science on ozone depletion through the research undertaken by the National Institute of Water and Atmospheric Research at Lauder, Central Otago. New Zealand is also represented on the United Nations Environmental Effects Assessment Panel. The results are tempered with the uncertainty over future emissions of CFCs from banks (building insulation and heat transfer units still in use), the currently increasing production of HCFCs and a full understanding of the future atmospheric system including makeup, circulation and temperature. The net effect of climate change is also hard to model effectively because the interactions between ozone depletion and climate change are complex and have potential multiple and contradictory effects. Increased concentrations of greenhouse gases cool the stratosphere and thus potentially could increase ozone levels, but some greenhouse gases also have direct impacts on ozone depletion and in addition many ozone depleting substances are themselves potent greenhouse gases. 1.6 New Zealand's Ozone Protection Legislation New Zealand does not manufacture any of the substances controlled under the Protocol. Domestic controls reduce New Zealand s reliance on ozone depleting substances by progressively restricting volumes that are imported. Initial controls on CFCs were introduced through the Customs Prohibition (Chlorofluorocarbons) Order The more comprehensive Ozone Layer Protection Act 1990 was passed on 3 July The Act, which included some provisions ahead of Montreal Protocol obligations: established a schedule for phasing out imports of CFCs and made methyl chloroform and carbon tetrachloride subject to control under the Act; banned the import of halons and fire extinguishers using these substances from 3 October 1990; banned the import and manufacture of aerosols containing CFCs and HCFC-22 and banned the use of CFCs as blowing agents in some plastic foams; enabled the Minister for the Environment to call for codes of practice from users of controlled substances; made it an offence to release a controlled substance to the atmosphere while servicing, modifying or dismantling any refrigeration or air conditioning equipment or fire extinguisher; provided for the granting of exemptions by the Minister of Commerce where these were necessary for human health or safety or involve transhipment of substances outside New Zealand. The general philosophy behind the controls was that as a substance became more difficult to obtain the price would rise compared to any alternatives and substitutes. This would then encourage transition to the alternatives and substitutes

9 Two amendments and an Order-in-Council introduced additional controls agreed to by the Parties to the Montreal Protocol. In 1991 a further 12 substances were made subject to the Act and reduction timetables for methyl chloroform, carbon tetrachloride and some additional types of CFCs were included. In 1992 an Order-in-Council made halon-1201 (a hydrobromofluorocarbon), a prohibited substance and subject to the same controls as other halon gases. Three changes were made to the Ozone Layer Protection Act during These were as follows: In March 1993 the Ozone Layer Protection Amendment Act 1993 (1993/3) came into effect. This was intended primarily to streamline the administration of the existing Act. It also implemented the requirement of the London Amendment to the Protocol to prevent trade in controlled substances with countries which are not Parties to the Montreal Protocol. Two further Orders-in-Council came into effect in May The first (the Ozone Layer Protection Order 1993 (1993/116)) amended the phase-out schedules for existing controlled substances, requiring that imports of CFCs, methyl chloroform and carbon tetrachloride cease by 31 December 1995, and also brought the phase-out schedules into line with those agreed through the Copenhagen Amendment. Hydrobromofluorocarbons were also added to the list of controlled substances and made subject to the same controls as those already existing for halons. The second Order of May 1993 (1993/117) prohibited trade in specified goods with countries which were not party to the Montreal Protocol. This was also a requirement of the London Amendment. In April 1994 a further amendment to the Act (1994/1) allowed the importation and exportation of recycled substances, as agreed by the Montreal Protocol. It also tightened controls on the importation of halons in line with the Copenhagen Amendment. In November 1994 the Import Control (Methyl Bromide) Conditional Prohibition Order 1994 capped the level of imports of methyl bromide at 1991 levels from 1 January 1995, with exemptions for QPS applications. This Order also gave effect to the Copenhagen Amendment. By 31 December 1995, New Zealand s imports of CFCs, hydrobromofluorocarbons, methyl chloroform, carbon tetrachloride and halon were reduced to zero. Holders of CFC permits in 1995 were allowed to convert these to import the replacement HCFCs until 31 December 2005 when they were withdrawn as part of the HCFC phase-out schedule. Under the Import Control (Hydrochlorofluorocarbons) Conditional Prohibition Order 1995, HCFCs became controlled substances from 1 January These were to be phased-out by The phase-out schedule is ahead of the timetable required

10 by the Montreal Protocol (see Section 2.1) The Order was later replaced by the Ozone Layer Protection Regulations under the revised Ozone Layer Protection Act Ozone Layer Protection Act 1996 The primary aim of the new Act was to accommodate more easily adjustments to the detail of the system and changing obligations under the Protocol. The new Act contained regulation-making powers and was accompanied by strengthened obligations to consult with those who might be affected by any proposed regulation. Other changes were also made. Fines for all offences were increased to bring them into line with other environmental legislation, and provision was made for the Minister for the Environment, if needed, to prepare regulations requiring workers handling ozone depleting substances to be accredited. There have been a number of changes to the Regulations: 1996/345: On 1 January 1997 the regulations concerning non-qps methyl bromide imports for 1997, came into force. This clarified the point that 1991 was the base year for the phase-out of this use of methyl bromide. 1997/304: In November 1997 a further amendment established a reduction timetable for non-qps methyl bromide which required a complete phase-out by 1 January This phase-out was in line with the 1997 Montreal Amendment to the Montreal Protocol. 1999/32: This Amendment prohibited the import of a specified number of standalone manufactured products containing CFCs. The items concerned included new and used dehumidifiers, refrigerators, freezers, air conditioners, supermarket refrigerated display cases, heat pumps and water coolers. 1999/358: The second amendment in 1999 introduced an export licensing system for ozone depleting substances, effective from 10 February The introduction of export licensing systems was a requirement of the Montreal Amendment. Although the Amendment also required import controls New Zealand already had these in place and no additional controls were required. 2000/211: This amendment gave effect to obligations: under the Montreal Amendment to prohibit the export of controlled substances to non-complying countries; under the Beijing Amendment to ban the import/export of bromochloromethane from 1 January 2002 and to ban the import and export of HCFCs to or from non Parties to the Copenhagen Amendment from 1 January This amendment also made a technical adjustment to the definition of pre-shipment for methyl bromide. 2001/40: Further amendment to the Regulations came into force in 2001 to enable the Minister to allocate Special Permits for HCFCs. The reallocation can not exceed

11 the total consumption of HCFCs allowed under the Protocol, as modified by the reduction timetables set out in the Regulations, or prevent New Zealand from meeting its target of phasing-out consumption of HCFCs by /434: In 2004 the Regulations were amended to allow an exemption for the import of a controlled substance for a use determined by the Parties to be a critical use. This gave effect to the critical use exemption process permitted under the Protocol for the use of methyl bromide for non-qps purposes after the phase-out date of 31 December This amendment came into effect in January

12 2 CONTROLLED SUBSTANCES A full list of the individual controlled substances is found in Appendix I. Note that the Protocol measures ozone depleting substances in ozone depleting potential (ODP) tonnes as listed in Annexes to the Protocol. ODP tonnes are metric tonnes multiplied by the relevant ODP factor, and are a measure of relative environmental damage, not physical quantity. The standard measurement of ODP is CFC-11 which equals one ODP unit. 2.1 Hydrochlorofluorocarbons (HCFCs) HCFCs are the refrigerant gases used in refrigeration and air conditioning units and in foam products such as meat trays and building insulation. HCFCs largely replaced the more ozone depleting CFC gases, however many of them are still highly potent greenhouse gases. Table 1 HCFC Phase-out Schedules New Zealand Montreal Protocol Year Schedule Schedule 1996 Base quota established using data from the users nominated year, Imports capped at 1989 levels plus 2.8 percent of 1989 CFC imports. 1991, 1992 or CFC import permits converted to allow a percentage import of replacement HCFCs % % 2006 Complete withdrawal of converted CFC permits % 65% % 90% % % In 2001, a quantity of unused entitlement was cancelled under the Regulations and, along with entitlement previously unallocated, reissued as special permits. The allocation was mainly to the foam blowing sector that had missed out on sufficient entitlement in Special permits total 3.5 ODP tonnes and have been incorporated into the general phase-out timetable. The possibility of accelerating the phase-out schedule of HCFCs under the Protocol is currently being discussed at the international level

13 Figure 1 Montreal Protocol vs Domestic Phase-out Schedules Montreal Protocol vs Domestic Phase-Out Schedules ODP tonnes HCFC Consumption Year Protocol Phase Out Domestic Phase Out Imports The import and export figures used below for the HCFC consumption tables are best estimate calculations from data supplied by the New Zealand Customs Service and checked by the Ministry of Economic Development against separate data from the licensing system, and as supplied from a survey of the known importers. Consumption is defined as manufacture plus imports minus exports. HCFCs vary in ODP from between to An entitlement to import HCFCs (under base year, special or the now obsolete converted CFC permits) allows import up to a specified maximum ODP value. There are many different types of HCFCs (see Appendix I) but the ones that have been imported into New Zealand are listed in the following tables. Table 2 HCFC Consumption: ODP tonnes Substance HCFC-22 HCFC-123 HCFC-124 HCFC-141b HCFC142b Total ODP ODP tonnes

14 Table 3 HCFC Consumption: metric tonnes Year HCFC-22 HCFC-123 HCFC-124 HCFC-141b HCFC142b Total (metric tonnes) HCFC Wholesaler Permits As required by section 11(3) of the Regulations, the names of the persons to whom wholesaler permits were granted in 2006 and the ODP amount permitted is set out in Table 4. Table 4 Wholesaler permits in 2006 Name Amount (ODP tonnes) BOC NZ Ltd Danfoss NZ Ltd Heatcraft New Zealand Ltd Patton Refrigeration Ltd Refrigerated Engineering Co Ltd TOTAL In January 2006 Danfoss NZ Ltd ceased to be a wholesaler for the purposes of the Regulations but had already been allocated an initial amount of HCFC wholesaler permit

15 2.2 Methyl Bromide There are two uses of methyl bromide under the Protocol, non-qps, which is controlled, and QPS which is not controlled and for which there is no phase-out schedule. The following table therefore refers to non-qps methyl bromide only. Table 5 Methyl Bromide Phase-out Schedules New Zealand Montreal Protocol Year Reduction Exemptions Reduction Exemptions 1991 Base Year % QPS 0% QPS % QPS 0% QPS % QPS 25% QPS % QPS 25% QPS % QPS 50% QPS % QPS 70% QPS % QPS + Critical Uses 100% QPS + Critical Uses Methyl Bromide Imports and Exports The import and export figures used below are best estimate calculations from data supplied by the New Zealand Customs Service and checked by the Ministry of Economic Development against separate data from the licensing system, and as supplied from a survey of the known importers. The ODP of methyl bromide is 0.6 ODP units. For methyl bromide the Protocol defines consumption as manufacture plus imports minus exports but excludes the amounts used for quarantine and pre-shipment applications. While the QPS use of methyl bromide is exempted, the Regulations still require an import permit for any amount of methyl bromide to be imported for QPS use. This enables more accurate monitoring and reporting. Table 6 Methyl Bromide Imports and Exports Year QPS Imports Non-QPS Imports Total Imports Exports Net Use (Imports less exports) metric tonnes Net Use (Imports less exports) ODP tonnes

16 The increase over time of methyl bromide imports for QPS uses can be attributed to increases in imports and exports and therefore increased biosecurity requirements. Methyl bromide is an extremely effective fumigant used to kill biosecurity risk organisms, including rodents, insects and pathogens and is a requirement of New Zealand s own biosecurity policy and that of our trading partners. Methyl bromide is used mainly for log and timber products, vehicles and fruits and vegetables Non-Quarantine and Pre-Shipment Use Methyl bromide for non-qps use is now prohibited and it is only imported as an exemption for critical uses in amounts as permitted by the Parties to the Protocol. Non-QPS methyl bromide is generally used for either soil fumigation of horticultural crops such as strawberries and tomatoes or for structural fumigation of buildings such as mills and historic buildings. Technically and economically feasible alternatives have proved difficult to find. In December 2003 Cabinet agreed that New Zealand apply to the Parties to the Montreal Protocol for three critical use exemptions for specified uses in the horticultural industry (strawberry fruiting beds, strawberry runner beds and nursery fumigation) to enable the import of methyl bromide for these uses beyond 31 December Decision IX/6 of the Parties sets out the criteria for assessing critical use exemptions for methyl bromide use beyond The criteria for an exemption require that Parties to the Protocol determine that for the nominated use: the lack of methyl bromide would result in a significant economic disruption; and that there are no technically and economically feasible alternatives or substitutes available. Parties must also take steps to minimise the critical use, take into account stockpiles of methyl bromide, and demonstrate that appropriate efforts have been made to provide alternatives and substitutes. Two nominations were accepted by the assessment Panel of the Protocol and at the Sixteenth Meeting of the Parties to the Montreal Protocol held in Prague in November 2004, 40.5 metric tonnes in total of methyl bromide was permitted to be imported by New Zealand for the strawberry industry in An application process was completed in December 2004 to allocate this amount to strawberry fruit and runner stock growers. The nomination for use by New Zealand s strawberry industry in 2006 was reconsidered at the Second Extraordinary Meeting of the Parties in Montreal in June The amount permitted to be imported for the two critical uses was reduced to 30.5 metric tonnes. This was allocated amongst industry in November In December 2005 Cabinet agreed to support the two strawberry industry nominations for further use of methyl bromide in Cabinet also decided that these are the last nominations that will be supported. The industry was then required

17 to complete a National Management Strategy to clearly illustrate how it intended to stop using methyl bromide by 31 December This strategy was submitted for consideration by the Parties in January Decisions on the nominations were made at the Eighteenth Meeting of Parties in Delhi in November 2006 where metric tonnes in total was permitted to be imported by New Zealand in 2007 for the strawberry industry. This was allocated to individual growers in late

18 3 PROHIBITED SUBSTANCES The import of the substances listed in Appendix II is prohibited. The import of certain goods containing some of these substances is also prohibited. Exemptions to import prohibited substances may be granted under the Regulations for specific reasons, and certain essential and critical uses provided these uses are determined as essential or critical by the Parties to the Montreal Protocol. As required by Section 30(3) (a) of the Act, details of all exemptions to import prohibited substances or products, are listed in Appendix III. In summary, there were 66 exemptions granted in 2006 as follows: Table 7 Exemption Summary Purpose of Exemption Number Essential or critical use 5 Aerosol or fire extinguisher necessary 57 for human health or safety Transhipment 4 4 EXPORTS OF CONTROLLED SUBSTANCES New Zealand does not manufacture any controlled substances but does periodically export quantities of substances that have previously been imported. A quantity of 6.7 tonnes in total of HCFC was exported to the Pacific region in 2006 while 6.5 tonnes were exported to Australia. Exports of methyl bromide to the Pacific region totalled 7.3 tonnes in In addition, shipments made to Australia of unwanted refrigerants in 2006 by the Recovery Trust for the Destruction of Ozone Depleting Substances for the purpose of recycling or destruction were 10.6 tonnes of HCFCs and 1.4 tonnes of CFCs. 5 RECYCLED SUBSTANCES Recycled substances may also be imported on production of evidence that the substances can be proved to be recycled. There were no notifications received relating to the import of recycled ozone depleting substances for the 2006 year

19 6 ADMINISTRATION AND OPERATION The Act and Regulations are administered by the Ministry for the Environment. The Regulations are implemented by the Ministry of Economic Development. The New Zealand Customs Service enforces the import and export controls at New Zealand s borders. The advice of other departments is sought as specific issues arise. Efficient channels of communication have been established between these departments. In addition, co-operation at the domestic level with the Ministries of Health and Labour, the Environmental Risk Management Authority, the New Zealand Food Safety Authority as well as the industries concerned and other stakeholders is also critical. 6.1 Ministry for the Environment Halons Since the introduction of the New Zealand Halon Management Strategy in 2000, the Ministry has worked in partnership with the fire protection industry to collect and ensure the safe destruction of unwanted halons 1211 and Over 30,000 tonnes of halons, with the potential to destroy well over 1.6 billion tonnes of atmospheric ozone, have been collected for safe destruction. The Sustainable Management Fund granted a total of $401,000 over a four year period up to June 2005, for a Halon Recovery Programme. With this programme completed the Ministry for the Environment has reduced the resources it allocates to activities relating to halon management under the Act but will continue to assist with other ad hoc information requests. Ozone layer protection is well-established and the phase-out of most ozone depleting substances welladvanced, so it is now appropriate to shift resources to other policy priorities. Methyl bromide With regard to methyl bromide, the Ministry for the Environment will continue to work with the Ministry of Economic Development towards facilitating phase-out of methyl bromide use by that industry. The Ministry for the Environment s resources in relation to the Ozone Layer Protection Act will increasingly be directed towards developing New Zealand s position on methyl bromide for quarantine and pre-shipment purposes. 6.2 Ministry of Economic Development The Ministry of Economic Development manages, under delegated authority from the Minister of Commerce, the import and export system and the controls relating to manufacture and sales of substances. This includes the administration and monitoring of base consumption levels, and the consideration of permit applications for imports and exports of controlled substances, as well as requests for exemption permits for import of prohibited substances and products

20 No formal action in terms of manufacture, sale or unlawful import or export or release was undertaken in During 1997 the Ministry contributed to the CFC metered dose inhaler strategy and in 2000 to the Halon Management Strategy. Also in 2000 the Ministry implemented the programmed 33% reduction to individual import permits. Total imports in 2000, however, reduced by less than 33% because previously high levels of permit under-utilisation allowed actual imports, in part, to be maintained. The Ministry also held consultations with industry and others over an amendment to the Regulations relating to the re-allocation of unused import quota and entitlement. These Special Permits, totalling 3.5 ODP tonnes were issued in The New Zealand phase-out of HCFCs has remained on schedule and is ahead of Montreal Protocol requirements. The Ministry commissioned a report in late 2005 to assess the readiness of industry to manage smoothly the smaller 2006 phase-down of converted CFC permits and then to meet the phase-out schedule out to The report highlighted some issues that will be followed up closer to the 2010 phasedown. Over 2004/06 the Ministry oversaw the critical use nomination and exemption process for methyl bromide, including application of nominations to the Parties, amendment and implementation of the Regulations, allocation of methyl bromide and follow-up monitoring and reporting. 6.3 New Zealand Customs Service The New Zealand Customs Service uses electronic alerts against the tariff codes of its computer system to ensure that importers and exporters comply with the requirements of the Ozone Layer Protection Act For the year ended 31 December 2006, the New Zealand Customs Service did not intercept any shipments which breached the provisions of the Ozone Layer Protection Act

21 APPENDIX I: CONTROLLED SUBSTANCES 1. Hydrochlorofluorocarbons (HCFCs) Name ODP Chemical Formula HCFC CHFCI HCFC CHF 2 CI HCFC CH 2 FCI HCFC C 2 FCHI 4 HCFC C 2 HF 2 CI 3 HCFC C 2 HF 3 CI 2 HCFC CHCI 2 CF 3 HCFC C 2 HF 4 CI HCFC CHFCICF 3 HCFC C 2 H 2 FCI HCFC C 2 H 2 F 2 CI 2 HCFC C 2 H 2 F 3 CI HCFC C 2 H 3 FCI 2 HCFC-141b 0.11 CH 3 CFCI 2 HCFC C 2 H 3 F 2 CI HCFC-142b CH 3 CF 2 CI HCFC C 2 H 4 FCI HCFC C 3 HFCI 6 HCFC C 3 HF 2 CI 5 HCFC C 3 HF 3 CI 4 HCFC C 3 HF 4 CI 3 HCFC C 3 HF 5 CI 2 HCFC-225ca CF 3 CF 2 CHCI 2 HCFC-225cb CF 2 CICF 2 CHCIF HCFC C 3 H 2 F 6 CI HCFC C 3 H 2 FCI 5 HCFC C 3 H 2 F2CI 4 HCFC C 3 H 2 F 3 CI 3 HCFC C 3 H 2 F 5 CI HCFC C 3 H 3 FCI 4 HCFC C 3 H 3 F 2 CI 2 HCFC C 3 H 3 F 3 CI 2 HCFC C 3 H 3 F 4 CI HCFC C 3 H 4 FCI 3 HCFC C 3 H 4 F 2 CI 2 HCFC C 3 H 4 F 3 CI HCFC C 3 H 5 FCI 2 HCFC C 3 H 5 F 2 CI HCFC C 3 H 6 FCI Note: Where a range of ODP is indicated the highest ODP value in that range is used by the Protocol and for the purpose of calculating ODP tonnage under the Regulations

22 2. Methyl Bromide for QPS use (note is controlled domestically only and is not a Protocol requirement) Name ODP Chemical Formula Methyl bromide 0.6 CH 3 Br

23 APPENDIX II: PROHIBITED SUBSTANCES 1. CFCs (Chlorofluorocarbons) Name ODP Chemical Designation CFC Trichlorofluoromethane CFC Dichlorodifluoromethane CFC ,1,2-Trichloro-1,2,2-trifluoroethane CFC ,2-Dichlorotetrafluoroethane CFC Chloropentafluoroethane 2. Halons and Bromochloromethane Name ODP Chemical Designation Halon Bromotrifluoromethane Halon Dibromotetrafluoroethane Halon Bromochlorodifluoromethane Halon Bromodifluoromethane BCM 0.12 Bromochloromethane 3. Other CFCs (Chlorofluorocarbons) Name ODP Chemical Designation CFC Chlorotrifluoromethane CFC Fluoropentachloroethane CFC ,1-difluoro 1,2,2,2-tetrachloroethane CFC fluoro heptachloropropane CFC ,3-difluorohexachloropropane CFC ,1,2,3,3-pentachloro-1,2,2 trifluoropropane CFC ,2,2,3-tetrachloro-1,1,3,3-tetrafluoropropane CFC ,1,2,3,3-pentafluoro-1,2,3-trichloropropane CFC ,2-dichloro-1,1,1,3,3,3-hexafluoropane CFC chloro heptafluoropropane 4. Carbon Tetrachloride Name ODP Chemical Formula Carbon- 1.1 CCl4 Tetrachloride 5. Methyl Chloroform Name ODP Chemical Designation Methyl 0.1 1,1,1 Trichloroethane Chloroform

24 6. HBFCs (Hydrobromofluorocarbons) Name ODP Chemical Formula HBFCs 1.0 CHFBr CHF2Br 0.73 CH2FBr C2HFBr C2HF2Br C2HF3Br C2HF4Br C2H2FBr C2H2F2Br C2H2F3Br C2H3FBr C 2 H 3 F 2 Br C 2 H 4 FBr C 3 HFBr C 3 HF 2 Br C 3 HF 3 Br C 3 HF 4 Br C 3 HF 5 Br C 3 HF 6 Br C 3 H 2 FBr C 3 H 2 F 2 Br C 3 H 2 F 3 Br C 3 H 2 F 4 Br C 3 H 2 F 5 Br C 3 H 3 FBr C 3 H 3 F 2 Br C 3 H 3 F 3 Br C 3 H 3 F 4 Br C 3 H 4 FBr C 3 H 4 F 2 Br C 3 H 4 F 3 Br C 3 H 5 FBr C 3 H 5 F 2 Br C 3 H 6 F 3 Br Note: Where a range of ODP is indicated the highest ODP value in that range is used by the Protocol and for the purpose of calculating ODP tonnage under the Regulations

25 2. Methyl Bromide for non-qps use Name ODP Chemical Formula Methyl bromide 0.6 CH 3 Br

26 APPENDIX III: EXEMPTIONS Under Clause 28 of the Ozone Layer Protection Regulations 1996 certain prohibited controlled substances and goods may be imported if the Minister of Commerce grants an exemption. Under Clause 29 the Minister may grant exemptions for controlled substances only as follows: (a) For recycled Halon 1301 that is to be used only for refrigeration purposes in circumstances where this is necessary for human health or safety and Halon 1301 cannot be obtained from supplies in New Zealand; (b) For CFC, Halon, carbon tetrachloride, methyl chloroform, or HBFC that is to be used in the manufacture of aerosols or fire extinguishers for a use determined by the Parties to the Montreal Protocol to be an essential use and that use is necessary for human health or safety; (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. (d) For any recycled substance, or any 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. (e) Any 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. Under Clause 31 the Minister may only grant exemptions for goods as follows: (1) The only exemptions that may be granted by the Minister in respect of the importation of any aerosol or fire extinguisher are for those that are to be used only for a use that is necessary for human health or safety. (2) No exemption shall be granted by the Minister in respect of the importation or manufacture of any dry cleaning machine which contains or is designed to use a controlled substance as a solvent. (3) No exemption shall be granted by the Minister in respect of the importation from a non-complying country of any goods specified in the Third Schedule to these Regulations that contain any controlled substance other than HCFC or methyl bromide. Under Clause 32 an exemption can also be granted in respect of the importation or exportation 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. The applications in the following list were granted exemptions in 2006 from obligations imposed by the Ozone Layer Protection Regulations

27 Section A LIST OF EXEMPTIONS KEY TO LIST Note 1. Note 2. Note 3. Note 4. Note 5. Note 6. Note 7 Note 8 Note 9 Note 10 Note 11 Replacement of unused expired exemption. Halon fire extinguishers and systems already fitted to aircraft. Halon fire extinguishers and systems already fitted to marine vessel. Halon fire extinguishers required under Civil Aviation regulations. Halon fire extinguishers and systems required for racing cars under FIA and FISA regulations. Replacement valves required on Halon fire extinguishers in for safety checks. (This classifies the extinguisher as new). Medicinal aerosols or Metered Dose Inhalers. Trans-shipment. Non flammable freeze sprays required in hospitals and medical laboratories. Insecticide sprays. Essential use or critical use under Montreal Protocol determination. In all cases the period of validity was 12 months from the date of issue

28 Issue Date Applicant Substance or Goods Amount Reason for Exemption (valid for 12 months) Conditions 1 Hawkes Bay Aviation Ltd Fire extinguisher(s) 1.14 kg Halon 1301 Note 4 12-Jan-06-2 Hawkes Bay Aviation Ltd Fire extinguisher(s) 1.14 kg Halon 1301 Note 4 12-Jan-06-3 Boehringer Ingelheim (N.Z.) Limited Metered dose inhalers 4 GlaxoSmithKline Metered dose inhalers 300,000 units Combivent Inhaler (4,656 kg CFC-11 & CFC-114 combined) Note 7 13-Jan ,000 units Serevent Inhaler (1,300 kg CFC-11 & CFC-12 combined) Note 7 13-Jan-06-5 Agricultural Fumigations Methyl bromide 3,700 kg methyl bromide Note 8 17-Jan-06-6 Air New Zealand Fire extinguisher(s) 9.0 kg Halon 1211 Note 4 15-Feb-06-7 Seabird Aeromarine Fire extinguisher(s) 3.0 kg Halon 1211 Note 4 17-Feb-06-8 Robert Fry Ltd Fire extinguisher(s) 5.025kg Halon 1211 & kg Halon 1301 Note 4 23-Feb-06 Yes - see Section B 9 Air New Zealand Fire extinguisher(s) 14.5 kg Halon 1211 Note 4 23-Feb Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 12.5 kg Halon 1301 Note 4 28-Feb Air Nelson Fire extinguisher(s) 8.0 kg Halon 1301 Note 4 2-Mar Air Freight NZ Fire extinguisher(s) 12.0 kg Halon 1301 Note 4 28-Mar Vincent Aviation Fire extinguisher(s) 1.2 kg Halon 1301 Note 4 13-Apr Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 12.5 kg Halon 1301 Note 4 13-Apr Robert Fry Fire extinguisher(s) 0.9 kg Halon 1301 Note 4 21-Apr Fieldair Engineering Fire extinguisher(s) 4.0 kg Halon 1301 Note 4 9-May Air New Zealand Fire extinguisher(s) 6.0 kg Halon 1211, 36.9 kg Halon 1301 Note 4 16-May Air New Zealand Fire extinguisher(s) 6.0 kg Halon 1211, 36.9 kg Halon 1301 Note 4 16-May New Zealand Defence Force Fire extinguisher(s) 24.5 kg Halon 1301 Note 4 18-May Flightline Aviation Fire extinguisher(s) 2.5 kg Halon 1211 Note 4 23-May Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 12.5 kg Halon 1301 Note 4 29-May Aviall NZ Ltd Fire extinguisher(s) 2.4 kg Halon 1211 Note 4 29-May Aviall NZ Ltd Fire extinguisher(s) 1.2 kg Halon 1211 Note 4 9-Jun Vincent Aviation Fire extinguisher(s) 1.0 kg Halon 1301 Note 4 14-Jun Air Nelson Fire extinguisher(s) 2.5 kg Halon 1301 Note 4 15-Jun Air New Zealand Fire extinguisher(s) 25.7 kg Halon 1301 Note 4 23-Jun Page 27

29 Issue Date Applicant Substance or Goods Amount Reason for Exemption (valid for 12 months) Conditions 27 Air New Zealand Fire extinguisher(s) 12.8 kg Halon 1301 Note 4 23-Jun AgriQuality Limited CFC kg (2l) CFC-113 Note Jun-06 Yes - see Section B 29 Garden City Helicopters Fire extinguisher(s) 3.67 kg Halon 1301 Note 4 23-Jun Air Nelson Fire extinguisher(s) 2.13 kg Halon 1301 Note 4 26-Jun Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 15.0 kg Halon 1301 Note 4 28-Jun Pacific Blue Airlines Fire extinguisher(s) 1.58 kg Halon 1211 Note 4 13-Jul Network Jet Ltd Fire extinguisher(s) kg of Halon 1301 Note 4 13-Jul-06 Yes - see Section B 34 Fieldair Engineering Fire extinguisher(s) 2.7 kg Halon 1301 Note 4 17-Jul Air New Zealand Fire extinguisher(s) 21.6 kg Halon 1211 & kg Halon 1301 Note 4 18-Jul Vincent Aviation Fire extinguisher(s) 0.95 kg Halon 1301 Note 4 18-Jul Hawkes Bay Aviation Ltd Fire extinguisher(s) kg Halon 1301 Note 4 25-Jul Pionair Engineering Fire extinguisher(s) 4.0 kg Halon 1301 Note 4 25-Jul Air National Ltd Fire extinguisher(s) kg Halon 1301 Note 4 3-Aug ,500 units Beclasone Inhaler (2, Air Flow Products Ltd Metered dose inhalers kg CFC-11 & CFC-12 combined) Note 7 14-Aug Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 15.0 kg Halon 1301 Note 4 15-Aug Pacific Urethanes HCFC-141b 4,573 kg HCFC-141b Note 8 1-Sep Air New Zealand Fire extinguisher(s) 1.5 kg Halon 1211 & 36.9 kg Halon 1301 Note 4 7-Sep Pacific Blue Airlines Fire extinguisher(s) 3.16 kg Halon 1211 Note 4 7-Sep Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 15.0 kg Halon 1301 Note 4 4-Oct Flightline Aviation Fire extinguisher(s) 1.1 kg Halon 1211 Note 4 4-Oct Air National Ltd Fire extinguisher(s) 0.5 kg Halon 1211 Note 4 13-Oct Air Nelson Fire extinguisher(s) 4.26 kg Halon 1301 Note 4 26-Oct Air National Ltd Fire extinguisher(s) 1.5 kg Halon 1211 Note 4 26-Oct Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 15.0 kg Halon 1301 Note 4 2-Nov Pacific Urethanes HCFC-141b 1,443 kg HCFC-141b Note 8 2-Nov Pionair Adventures Fire extinguisher(s) 4.0 kg Halon 1301 Note 4 3-Nov Page 28

30 Issue Date Applicant Substance or Goods Amount Reason for Exemption (valid for 12 months) Conditions 53 Sanfords Fire extinguisher(s) 34.0 kg Halon 1301 Note 3 3-Nov Pacific Urethanes Fire extinguisher(s) 94 kg HCFC-141b Note 8 10-Nov Air National Ltd Fire extinguisher(s) 2.0 kg Halon 1211 Note 4 15-Nov Air National Ltd Fire extinguisher(s) 5.0 kg Halon 1211 Note 4 28-Nov Air National Ltd Fire extinguisher(s) 0.5 kg Halon 1211 Note 4 28-Nov Fieldair Engineering Fire extinguisher(s) 20.5 kg Halon 1301 Note 4 6-Dec Flightline Aviation Fire extinguisher(s) 1.1 kg Halon 1211 Note 4 6-Dec Air Nelson Fire extinguisher(s) 6.4 kg Halon 1211 & 15.0 kg Halon 1301 Note 4 6-Dec Agricultural Fumigations Methyl bromide 2,023 kg methyl bromide Note Dec Leicesters Methyl bromide 3,202 kg methyl bromide Note Dec Pacific Blue Airlines Fire extinguisher(s) 22.9 kg Halon 1211 Note 4 14-Dec Fieldair Engineering Fire extinguisher(s) 4.08 kg of Halon 1301 Note 4 21-Dec Agricultural Fumigations Methyl bromide 3,271 kg methyl bromide Note Dec Leicesters Methyl bromide 9,632 kg methyl bromide Note Dec Page 29