The purpose of this consultation document is to seek your views on proposed updates to the
Climate Change (Stationary Energy Industrial
Processes) Regulations (2009) (SEIP regulations) under the New Zealand Emissions Trading Scheme
(NZ ETS).
The proposed changes will affect participants within the NZ ETS who are required to report emissions arising from the use of geothermal fluid.
This consultation will close on 30 June 2014.
This consultation document covers proposed minor and technical changes to the SIEP regulations. The proposed changes will update the default emissions factors (DEFs) for the extraction of geothermal fluid.
Other changes proposed for the SEIP regulations include updating natural gas DEFs and correcting an error in a global warming potential. A separate consultation is being undertaken with parties affected by these changes.
Background
The SEIP regulations define the DEFs to be used in the reporting of emissions from the utilisation of geothermal fluid extracted from particular wells in
New Zealand. The composition of the extracted geothermal fluid changes over time, therefore the
DEFs used in the NZ ETS are required to be updated periodically to maintain the accuracy of the scheme. The geothermal DEFs were last updated when the regulations were established in
2009.
Participants also have the option to apply for a unique emissions factor if they consider the DEFs inaccurate.
Problem definition
Geothermal emission factors tend to change over time, generally lower as the field is exploited. The intention of this initiative is to refresh geothermal
DEFs, where the information is available. This enhances the accuracy of the NZ ETS and reduces the need for participants to continue applying for new UEFs with the associated costs.
In March and April of 2014, geothermal participants were given the opportunity to provide measured emissions data from their geothermal wells where sufficient data existed.
The data submitted following that request has been used to determine the proposed updates to the DEFs in the regulations.
The revised DEFs have been calculated based on the most recent four years of emissions data where this is available. Where such data is not available, the proposed DEFs have been calculated from the best available data.
A common DEF is proposed for developments based on the Kawerau field.
Preferred option
The proposed changes align the geothermal fluid
DEFs in the SEIP regulations with the composition of geothermal fluid extracted from each field.

The DEFs for the extraction of geothermal fluid are set out in Table 6 of the SEIP regulations. The proposed revisions to the DEF figures in Table 6 are set out in Annex A to this document.
Impact assessment
With the update to Table 6 in the SEIP regulations,
DEFs for the extraction of geothermal fluid will be more accurate and the number of UEF applications may be reduced.
Those who have not supplied emissions data for consideration in this update to regulations, but who wish to do so, can submit that information during the consultation period.
Additional data supplied will be considered for inclusion in the current round of regulations amendments. If the changes are not able to be included in the current round of amendments, they will be considered in the next round of regular NZ ETS regulations updates, anticipated to be in 2015.
Geothermal fluid extraction
1.
Is there any other information you would like to be considered before the updates to the geothermal DEFs are undertaken?
2.
Are there any matters concerning the estimation of the revised DEFs or timing that you would like to be considered?
The proposed regulations changes are intended to take effect from 1 January 2015.
The timing of the General Election (20 September
2014) means that there is some uncertainty about when the proposed amendments to the regulations can be made.
There will be more certainty of timing of the amendments after the General Election. If the anticipated timetable is not achievable, then affected participants will be notified in November.
The intended timetable is set out below.
Consultation 9 June-30 June 2014
Regulations amended Late 2014
Regulations in force 1 January 2015
Responses will be analysed by the Ministry for the
Environment and reported to the Minister for
Climate Change Issues for final decisions

The Ministry for the Environment may publish all or part of any written submission on the Government’s climate change website. We will consider you to have consented to such publishing by making a submission, unless you clearly specify otherwise in your submission.
The content of submissions is subject to the Official Information Act 1982. Copies of submissions sent to us will normally be released in response to an Official Information Act request from a member of the public. If you object to the release of any information contained in your submission, please clearly state this in your submission, including which part(s) you consider should be withheld, together with the reason(s) for withholding the information. We will take into account all such objections when responding to requests for copies of, and information on, submissions to this document.
If you do not wish your name and any identifying details in your submission to be released in response to a request, please clearly state this in your submission. At your request, we will make your submission anonymous before it is published on the climate change website. However, please note that the Ministry for the Environment will not be able to withhold any information if doing so would contravene the requirements of the Official Information Act.
Published in June 2014 by the Ministry for the Environment
PO Box 10362, Wellington 6143
Publication No: INFO 715
Have your say
Please send your submission by email to: etsconsultation@climatechange.govt.nz
If you are unable to email your submission then please post it to:
ETS Regulations Updates 2014
Ministry for the Environment
PO Box 10362, Wellington 6143
About the submission process
The closing date for submissions is:
5pm Monday 30 June 2014.
Find out more
Phone: +64 4 439 7400
Email: etsconsultation@climatechange.govt.nz

Please note that for clarity the current emissions factors have been included in this table alongside the proposed revisions.
Revised Table 6
Geothermal fluid
Part A
Class
Geothermal fluid used by
Kawerau II
Kawerau Industrial
Kawerau KA24
Mokai I and II
Nga Awa Purua
Ngawha I and II
Ohaaki
Poihipi Road
Rotokawa I
Wairakei station site
Any other plant or process using geothermal steam to produce electricity or industrial heat
Emissions factor Emissions factor
(current) (proposed) Unit
0.0199 0.0286
0.0286
0.0286
0.0088
-
0.0199
0.0199
0.0053
0.0180 tCO
2 e/t steam tCO
2 e/t steam tCO
2 e/t steam tCO
2 e/t steam tCO
2 e/t steam
0.2223
0.0591
0.0049
0.0220
0.0050
0.0930
0.0591
0.0049
0.0220
0.0050 tCO
2 e/t steam tCO
2 e/t steam tCO
2 e/t steam tCO
2 e/t steam tCO
2 e/t steam
0.0300 0.0300 tCO
2 e/t steam
Part B
Class
Geothermal fluid used by
Mokai Greenhouse
Tauhara Tenon
Any other plant or process using geothermal fluid to produce electricity or industrial heat through a process other than production of geothermal steam
Emissions factor
(current)
0.0000
0.0008
Emissions factor
Unit
(proposed)
0.0000
0.0008 tCO
2 e/t2-phase fluid tCO
2 e/t2-phase fluid
0.0008 0.0008 tCO
2 e/t2-phase fluid