This is an HTML version of an attachment to the Official Information request 'Procurement advice'.

In-Confidence 
Office of the Associate Minister of Transport 
Chair 
Cabinet  Legislation Committee  
ELECTRIC VEHICLES - SUBORDINATE LEGISLATION 
Proposal 
1.
This paper asks the Cabinet Legislation Committee to approve the submission to the
Executive Council of the following (the Orders):
1.1.  Land Transport (Road User) Amendment Rule 2017
1.2.  Land Transport Rule: Traffic Control Devices Amendment 2017
1.3.  Road User Charges (Exemption Period for Heavy Electric RUC Vehicles) Order
2017. 
Executive summary 
2.
This paper seeks approval to submit two land transport amendment rules and a road
user charges exemption order to the Executive Council. These instruments are
consequential on the passage of the Energy Innovation (Electric Vehicles and Other
Matters) Amendment Act 2017 and contain subordinate detail necessary to implement
government policy to encourage the uptake of electric vehicles. This is by amending
land transport rules to make it lawful for electric vehicles to be driven in special vehicle
lanes (subject to the road controlling authority making a bylaw permitting this) and by
making an Order under the Road User Charges Act 2012 exempting heavy electric
RUC vehicles from the payment of road user charges until the end of 2025.
Policy 
3.
On 21 March 2016, Cabinet agreed to a package of measures to encourage the
uptake of electric vehicles [CAB-16-MIN-0108.01 refers]. These measures, forming
the Government’s Electric Vehicles Programme, included two aspects requiring
change to transport legislation:
3.1.  to clarify that the Land Transport Act 1998 empowers road controlling
authorities to make bylaws allowing electric vehicles (EVs) to use special 
vehicle lanes and make amendments to the Land Transport (Road User) Rule 
2004, and related provisions in Land Transport Rule: Traffic Control Devices 
2004, to enable road controlling authorities to allow EVs access to special 
vehicle lanes  
3.2.  to create a new road user charges exemption for heavy EVs extending, subject 
to review in 2019, to 31 December 2025.  
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4. 
The necessary changes to primary legislation have been effected through the Energy 
Innovation (Electric Vehicles and Other Matters) Amendment Act 2017, which: 
4.1.  amends the Land Transport Act 1998 to clarify that road controlling authorities 
can make bylaws that permit drivers of EVs to drive in special vehicle lanes  
4.2.  amends the Road User Charges Act 2012 to empower the Governor-General, 
to make Orders in Council that specify the period during which road user 
charges are not payable in respect of heavy electric RUC vehicles.  
5. 
The Orders support these changes to primary legislation and complete the legislative 
changes: 
5.1.  the Land Transport (Road User) Amendment Rule 2017 amends the Land 
Transport (Road User) Rule 2004 to make it lawful for drivers of EVs to drive in 
bus lanes and high occupancy vehicle lanes (when permitted by a road 
controlling authority bylaw) 
5.2.  Land Transport Rule: Traffic Control Devices Amendment 2017 amends Land 
Transport Rule: Traffic Control Devices 2004 to prescribe road signs and road 
markings applicable to the use of EVs 
5.3.  The Road User Charges (Exemption Period for Heavy Electric RUC Vehicles) 
Order 2017 specifies  the period, from 1 September 2017 to 31 December 
2025, during which road user charges are not payable in respect of heavy 
electric RUC vehicles. 
Timing and the 28-day rule 
6. 
The Orders will come into force on 1 September 2017, which is at least 28 days after 
their notification in the New Zealand Gazette
Compliance 
7. 
The Orders comply with each of the following: 
7.1.  the principles of the Treaty of Waitangi; 
7.2.  the rights and freedoms contained in the New Zealand Bill of Rights Act 1990 
and the Human Rights Act 1993; 
7.3.  the principles and guidelines set out in the Privacy Act 1993;  
7.4.  the relevant international standards and obligations; 
7.5.  the LAC Guidelines on the Process and Content of Legislation (2014 edition), 
which are maintained by the Legislation Design and Advisory Committee. 
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8. 
Having considered, as required by section 152A(2) of the Land Transport Act 1998, 
the matters in section 164(2) of that Act, I recommend that Her Excellency the 
Governor-General make the Land Transport (Road User) Amendment Rule 2017 and 
Land Transport Rule: Traffic Control Devices Amendment 2017.  
9. 
In recommending that Her Excellency the Governor-General make the Road User 
Charges (Exemption Period for Heavy Electric RUC Vehicles) Order 2017, I have 
considered the requirements of section 37A of the Road User Charges Act 2012 and I 
am satisfied that the purpose of the exemption is to encourage and support the uptake 
of heavy electric RUC vehicles. 
Regulations Review Committee 
10. 
There are no grounds for the Regulations Review Committee to draw the Orders to 
the attention of the House of Representatives under Standing Order 319. 
Certification by Parliamentary Counsel 
11. 
The Parliamentary Counsel Office have certified drafts of the Orders as being in order 
for submission to Cabinet. 
Regulatory Impact Analysis 
12. 
A Regulatory Impact Statement, “Road user charges exemptions and discounts for 
electric vehicles”, was prepared in accordance with the necessary requirements, and 
was submitted in March 2016 when Cabinet approval was sought for the policy 
relating to the regulations. [EGI-16-SUB-0034 refers].  
13. 
A Regulatory Impact Statement has not been prepared in respect of these Orders, 
which come within the exemption for technical “revisions” or consolidations that 
substantially re-enact the current law in order to improve legislative clarity or 
navigability (including the fixing of errors, the clarification of the existing legislative 
intent, and the reconciliation of inconsistencies).    
Publicity 
14. 
The Land Transport (Road User) Amendment Rule 2017 and the Road User Charges 
(Exemption Period for Heavy Electric RUC Vehicles) Order 2017 will be notified as 
Legislative Instruments in the New Zealand Gazette (the Gazette). 
15. 
The New Zealand Transport Agency (the Transport Agency) will notify Land Transport 
Rule: Traffic Control Devices Amendment 2017 in the Gazette as required by section 
161(3) of the Act. 
16. 
The Transport Agency will give both general notice, and a specific notice to owners of 
heavy EVs, of the RUC exemption. The Transport Agency is already liaising with 
Road Controlling Authorities on allowing EVs to use special vehicle lanes. 
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Consultation 
17. 
Submissions were received on the proposal to allow road controlling authorities to 
make bylaws prescribing that electric vehicles can use special vehicle lanes during 
the Select Committee stage of the Energy Innovation (Electric Vehicles and Other 
Matters) Bill. In addition, the Ministry of Transport sought informal feedback on the 
proposed rule changes from the general public and notified key stakeholders of this 
process. 
18. 
The Ministry of Business, Innovation, and Employment, the Department of Internal 
Affairs, the Ministry of Justice, the Parliamentary Counsel Office, the New Zealand 
Police, The Treasury, and the New Zealand Transport Agency were consulted on this 
paper. The Department of Prime Minister and Cabinet was informed. 
19. 
The Minister of Transport has been consulted on this paper and agrees to it being 
lodged. 
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Recommendations 
20. 
The Associate Minister of Transport recommends that the Committee: 
1. 
note that on 21 March 2016 Cabinet agreed [CAB-16-MIN-0108.01 refers] to: 
1.1 
make amendments to the Land Transport (Road User) Rule   
 
2004, and related provisions in Land Transport Rule: Traffic Control 
 
Devices 2004, to enable road controlling authorities to allow electric 
 
vehicles access to bus and high occupancy vehicle lanes;  
1.2 
create a new road user charges exemption for heavy electric  
 
vehicles, to end (subject to review in 2019) on 31 December 2025; 
2. 
note that the Land Transport (Road User) Amendment Rule 2017 and Land 
Transport Rule: Traffic Control Devices Amendment 2017 will give effect to the 
decision referred to in paragraph 1.1 above; 
3. 
note that the Road User Charges (Exemption Period for Heavy Electric RUC 
Vehicles) Order 2017 will give effect to the decision referred to in paragraph 1.2 
above; 
4. 
authorise the submission to the Executive Council of the Land Transport 
(Road User) Amendment Rule 2017, Land Transport Rule: Traffic Control 
Devices Amendment 2017 and the Road User Charges (Exemption Period for 
Heavy Electric RUC Vehicles) Order 2017; 
5. 
note that the Land Transport (Road User) Amendment Rule 2017, Land 
Transport Rule: Traffic Control Devices Amendment 2017 and the Road User 
Charges (Exemption Period for Heavy Electric RUC Vehicles) Order 2017 will 
come into force on 1 September 2017. 
 
 
 
 
 
Hon Tim Macindoe 
 
Associate Minister of Transport 
 
 
Dated: ________________________  
 
 
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