Office of the Minister of Transport
Cabinet Legislation Committee
ROAD USER CHARGES (EXEMPTION PERIOD FOR
LIGHT ELECTRIC RUC VEHICLES) ORDER 2016
I propose that the Cabinet Legislation Committee authorise the submission of the
Road User Charges (Exemption Period for Light Electric RUC Vehicles) Order 2016
(the proposed Order) to Executive Council.
Transport accounts for around 17 percent of New Zealand’s greenhouse gas
emissions. It was the second largest consumer of energy in 2014 and more than 99
percent of transport energy is oil-based. Projections indicate that by 2020, transport
emissions will be 58 percent above 1990 levels.
Electric vehicles (EVs) are part of a response that looks to adopt new technologies as
a means to transition to a low carbon economy without compromising individual
mobility or economic growth. EVs are a technology that is well suited to New Zealand.
They represent an opportunity to leverage New Zealand’s abundance of renewable
electricity to reduce transport emissions.
On 16 April 2012, Cabinet agreed that light electric road user charges (RUC) vehicles
be exempt from paying RUC until 30 June 2020 (CAB Min (12) 12/6A refers).
On 21 March 2016, as part of the EVs package, Cabinet agreed to rescind the
decision referred to in paragraph 4 and instead extend RUC exemption for light
electric RUC vehicles until they comprise two percent of the light vehicle fleet, which is
expected to occur by December 2021. The appropriateness of this date, relative to the
target of two percent of the fleet, is to be reviewed in 2019 (CAB-16-MIN-0108.01
In accordance with Cabinet’s decision, the proposed Order will amend the Road User
Charges (Exemption Period for Light Electric RUC Vehicles) Order 2012 and extend
the RUC exemption period for light electric RUC vehicles from 30 June 2020 to 31
Certification by Parliamentary Counsel
The proposed Order has been certified by Parliamentary Counsel as being in order for
submission to Cabinet.
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Regulatory Impact Analysis
A regulatory impact analysis was prepared in accordance with the necessary
requirements and submitted at the time that Cabinet’s approval of the policy related to
the proposed Order was sought.
Timing and 28 day rule
The proposed Order is timed to come into force on 22 September 2016. No waiver of
the 28 day rule is sought.
The proposed Order complies with the Legislation Advisory Committee Guidelines:
Guidelines on Process and Content of Legislation
, a publication by the Legislation
The proposed Order raises no issues with respect to the principles of the Treaty of
Waitangi, the principles and guidelines set out in the Privacy Act 1933, or international
standards and obligations. It is also consistent with the New Zealand Bill of Rights Act
1990 and the Human Rights Act 1993.
The proposed Order will be notified in the Gazette
and the Ministry of Transport will
arrange appropriate publicity about the extension of the RUC exemption.
The following government agencies were consulted on the policy related to the
proposed Order – the Energy Efficiency and Conservation Authority, Inland Revenue
Department, Ministry of Business, Innovation and Employment, Ministry for the
Environment, Ministry of Foreign Affairs and Trade, NZ Transport Agency and the
Treasury. The NZ Transport Agency was consulted on the content of the proposed
The Department of Prime Minister and Cabinet has been informed.
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The Minister of Transport recommends that the Committee:
that on 21 March 2016, Cabinet agreed to extend the road user charges
exemption for light electric road user charges vehicles until they comprise two
percent of the light vehicle fleet, which is expected to occur by December 2021
the submission to the Executive Council of the Road User Charges
(Exemption Period for Light Electric RUC Vehicles) Order 2016.
Hon Simon Bridges
Minister of Transport
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