1.— In this Act—

“Agency” means National Treasury Management Agency;

“Carbon Fund” has the meaning assigned to it by section 2 ;

“Convention” means United Nations Framework Convention on Climate Change done at New York on 9th May 1992;

“Minister” means Minister for the Environment, Heritage and Local Government;

“Kyoto Protocol” means Kyoto Protocol to the Convention done at Kyoto on 11th December 1997;

“Kyoto Unit” means a unit, equivalent to one metric tonne of carbon dioxide, issued pursuant to the Kyoto Protocol and the decisions adopted pursuant to the Convention and the Kyoto Protocol.

2.— (1) The Minister shall, with the consent of the Minister for Finance, establish a fund to be known as and in this Act referred to as the Carbon Fund for the purpose, subject to subsection (8) , of acquiring on behalf of the State, including on foot of existing or future agreements to which the State is or becomes bound, Kyoto Units and any other such instruments or assets in accordance with the provisions of the Convention and the Kyoto Protocol, and for any purpose associated with or incidental to the fulfilment of that function.

(2) The Minister for Finance shall, when he or she considers it appropriate, establish a bank account at the F1[Central Bank of Ireland] to be known as the Carbon Fund Euro Bank Account, and, subject to subsection (6) , all moneys received for credit of and disbursed from the Carbon Fund shall respectively be paid into and out of that account.

(3) The Minister shall manage and control the Carbon Fund in accordance with this Act and has all powers necessary for or incidental to the performance by him or her of such functions.

(4) Subject to sections 8 and 9 , the management of the Carbon Fund is delegated to the Agency. The Agency has all the powers that are necessary for or incidental to the performance of its function in managing the Carbon Fund.

(5) Notwithstanding subsection (4) , the Minister may give directions to the Agency in relation to acquisition of Kyoto Units or any other instruments or assets acquired under subsection (1) , or any matter associated with or incidental to such acquisition.

(6) The Agency, in connection with the performance of the functions delegated to it under subsection (4) , may—

(a) engage in transactions of a normal banking nature in respect of the management of the Carbon Fund and may, for such purposes, issue such funds from the Carbon Fund as are necessary,

(b) pay into any foreign currency clearing account created by the Minister for Finance under section 139 of the Finance Act 1993 the proceeds of any transaction denominated in a currency other than the currency of the State, and

(c) apply any amounts standing to the credit of any foreign currency clearing account towards the discharging of payment obligations arising under any transaction referred to in paragraph (a) .

(7) The expenses and other costs incurred by the Agency in connection with or arising out of any transactions engaged in by the Agency under subsection (6) (a) shall be charged on the Carbon Fund.

(8) The Agency may, with the consent of the Minister and the Minister for Finance and on such terms as they may specify, dispose of Kyoto Units or any other instruments or assets acquired under subsection (1) , and, subject to subsection (6) , any proceeds of any such disposal shall be paid into the Carbon Fund.

(9) Any surplus arising in the Carbon Fund shall be paid into the Central Fund from time to time as the Agency considers appropriate.

3.— (1) The Minister for Finance may, for the purpose of section 2 , advance moneys to the Carbon Fund from the Central Fund.

(2) Subject to sections 8 and 9 , the function of the Minister for Finance under subsection (1) is delegated to the Agency.

(3) The Minister may, with the consent of the Minister for Finance, having regard to the obligations of the State under the Convention and the Kyoto Protocol, pay into the Carbon Fund in the financial year 2006 and each subsequent financial year, out of moneys provided by the Oireachtas, such amounts as he or she determines.

(4) Any advances from the Central Fund to the Carbon Fund under subsection (1) shall, as soon as practicable, be reimbursed by payments through the Carbon Fund under subsection (3) .

4.— Moneys standing to the credit of the Carbon Fund shall not be used for any purposes other than those specified in this Act.

5.— (1) The Agency shall—

(a) keep, in such form as may be approved by the Minister, with the consent of the Minister for Finance, all proper and usual accounts in relation to the performance by it of the functions delegated or granted to it under this Act, and

(b) whenever requested to do so by the Minister, give to him or her either or both such accounts and such information in relation to such accounts as he or she may specify.

(2) Accounts kept under this section, as signed by the Chief Executive (who shall be the accountable person in relation to the accounts of the Carbon Fund), shall be submitted, as soon as may be, but not later than 4 months after the end of the financial year of the Agency to which they relate, by the Agency to the Comptroller and Auditor General for audit. A copy of the accounts as so audited, together with a copy of the report by the Comptroller and Auditor General on those accounts, shall be presented to the Minister as soon as may be thereafter. The Minister shall cause a copy of those audited accounts and that report to be laid before each House of the Oireachtas.

6.— (1) As soon as may be, but not later than 6 months after the end of each financial year of the Agency, the Agency shall make a report to the Minister of its activities in relation to the performance during the year concerned of the functions delegated to it under this Act, and the Minister shall cause copies of the report to be laid before each House of the Oireachtas.

(2) The Agency shall supply the Minister with such information as he or she may from time to time request relating to the performance by the Agency of the functions delegated to it under this Act.

(3) The Agency shall, when requested by the Minister, make recommendations to the Minister in relation to the functions performed by the Agency under this Act.

7.— (1) The Chief Executive of the Agency shall, in relation to the functions performed by the Agency under this Act, whenever required by the Committee of Public Accounts, give evidence to that Committee on—

(a) the regularity and propriety of the transactions recorded or required to be recorded in any book or other record of account subject to audit by the Comptroller and Auditor General that the Chief Executive is required by or under statute to prepare,

(b) the economy and efficiency of the Agency in the use of resources,

(c) the systems, procedures and practices employed by the Agency for the purpose of evaluating the effectiveness of its operations under this Act, and

(d) any matter affecting the Agency referred to in a special report of the Comptroller and Auditor General under section 11(2) of the Comptroller and Auditor General (Amendment) Act 1993 or in any other report of the Comptroller and Auditor General (in so far as it relates to a matter specified in paragraph (a) , (b) or (c) ) that is laid before Dáil Éireann.

(2) When performing duties under this section, the Chief Executive of the Agency shall not question or express an opinion on the merits of any policy of the Government or a Minister of the Government or on the merits of the objectives of such a policy.

(3) In this section “Committee of Public Accounts” means the Committee of Dáil Éireann established under the Standing Orders of Dáil Éireann to examine and report to Dáil Éireann on the appropriation accounts and reports of the Comptroller and Auditor General.

8.— The Minister may, following consultation with the Minister for Finance, give directions or guidelines to the Agency in relation to the performance by it of the functions delegated or granted to it under this Act. The Agency shall comply with any such directions and perform those functions in accordance with any such guidelines.

9.— Where the Minister feels it is appropriate in the circumstances, and following consultation with the Minister for Finance, the Minister may, by order, revoke some or all of the functions delegated to the Agency under this Act.

10.— This Act may be cited as the Carbon Fund Act 2007.