Greenhouse Gas Emissions Trading Amendments [UK]

On the 4th December 2015, the Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2015 (S.I. 2015/1849) come into force.

These regulations amend the Greenhouse Gas Emissions Trading Scheme Regulations 2012 (“2012 Regulations”).

The 2015 Regulations are as follows:

  • Regulation 2 adds new definitions to the 2012 Regulations.
  • Regulation 3 amends regulation 13 of the 2012 Regulations, enforcing a deadline for an application to surrender a permit. If an operator suspends activities at an installation while it is an excluded installation, the suspension is ongoing after the installation is no longer classed as “excluded.” The operator should not recommence regulated activities at the installation within the period of 6 months beginning with the date of the suspension.
  • Regulations 4 and 5, and Regulation 14 make provision for the addition of Schedule 6A to the 2012 Regulations. Schedule 6A provides for the allocation of allowances to operators of installations which cease to be excluded. It also calls for adjustment of such allocations in respect of the capacity or activity level of the installation which occurred while it was an excluded.
  • Regulation 6 inserts regulations 58A and 58B into the 2012 Regulations. Regulation 58A calls for a penalty when an operator of an installation which ceases to be excluded fails to notify the regulator of a capacity reduction while the installation was excluded. Regulation 58B imposes a penalty when an operator of an installation which ceases to be excluded fails to notify the regulator that the operator has suspended the installation’s regulated activities.
  • Regulation 7 provides for a penalty for an operator failing to return allowances.
  • Regulation 8 provides for a penalty when an operator of an installation which ceases to be an excluded installation provides false or misleading information in relation to a significant capacity reduction or partial cessation which occurred while the installation was excluded.
  • Regulations 9 and 10 provide for rights of appeal in respect of decisions made by the regulator or notifications give to the operator of an excluded installation about any changes of capacity of activity levels while an installation is excluded.
  • Regulation 11 makes a minor amendment to regulation 80 of the 2012 Regulations.
  • Regulation 12 amends Schedule 4 of the 2012 Regulations, to amend the cross-referencing to Schedule 6.
  • Regulation 13 amends Schedule 6 of the 2012 Regulations. It provides that Schedule 6 does not apply to changes of capacity of activity level while an installation which has ceased to be an excluded was formerly considered an excluded installation. It also finds that an installation permanently ceases regulated activities following a suspension of such activities, the date of the permanent cessation is deemed to be the date on which the suspension occurred.”

No impact assessment has been created due to no foreseen repercussions on private or voluntary entities .

For more detailed information, please refer directly to the amending regulations.

Red-on-line EHS Legalist

Sources:

The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2015 (S.I. 2015/1849) published on www.legislation.gov.uk on 4th November 2015.

Greenhouse Gas Emissions Trading Scheme Regulations 2012 (“2012 Regulations”).

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