Legalize / United Kingdom / Public General Act

Energy Act 2023

Type Public General Act

Publication 2023-10-26

State In force

Department Statute Law Database

Source legislation.gov.uk

Reform history JSON API

Part 1 — Licensing of carbon dioxide transport and storage

Chapter 1 — Licensing of activities

General functions

Principal objectives and general duties of Secretary of State and economic regulator

1

(1) The principal objectives of the Secretary of State and the GEMA in carrying out their respective functions under this Part are to—

(a) protect the interests of current and future transport and storage network users;

(b) protect the interests of any consumers whose interests the Secretary of State or the economic regulator (as the case may be) considers may be impacted by the exercise of their respective functions under this Part;

(c) promote the efficient and economic development and operation of transport and storage networks, having regard to the need for licence holders to be able to finance their licensable activities.

(2) In this Part the GEMA is referred to as the “economic regulator”.

(3) The Secretary of State and the economic regulator must carry out their respective functions under this Part in the manner which the Secretary of State or the economic regulator (as the case may be) considers is best calculated to further the principal objectives, wherever appropriate by—

(a) promoting effective competition between persons engaged in, or in commercial activities connected with, the activities mentioned in section 2 (2);

(b) promoting the resilience of transport and storage networks;

(c) protecting the public from dangers arising from the construction, operation and decommissioning of infrastructure used for the purposes of activities mentioned in section 2 (2).

(4) In carrying out functions under this Part in accordance with the preceding provisions of this section, the Secretary of State or the economic regulator (as the case may be) must have regard to—

(a) the principles under which regulatory activities should be transparent, accountable, proportionate, consistent and targeted only at cases in which action is needed, and any other principles appearing to the Secretary of State or the economic regulator to represent the best regulatory practice;

(b) the need to contribute to the achievement of sustainable development.

(5) In carrying out functions under this Part in accordance with the preceding provisions of this section the Secretary of State must have regard to the Secretary of State’s duties under sections 1 and 4(1)(b) of the Climate Change Act 2008 (carbon targets and budgets).

(6) In carrying out functions under this Part in accordance with the preceding provisions of this section, the economic regulator must have regard to—

(a) the need to assist the Secretary of State’s compliance with the duties mentioned in subsection (5);

(b) the targets specified in subsection (8).

(7) In exercising their respective functions in relation to licensable activities, the Secretary of State and the economic regulator may have regard to the desirability of the efficient and effective operation of the energy system (or any part of it) in the United Kingdom or any part of the United Kingdom.

(8) The targets referred to in subsection (6)(b) are—

(a) the net-zero emissions target, as defined in section A1(1) of the Climate Change (Scotland) Act 2009 (asp 12);

(b) the interim targets, as defined in section 2 of that Act;

(d) a target in, or set under, section 29 or 30 of the Environment (Wales) Act 2016 (anaw 3).

(9) In this section—

“transport and storage network user” means a person who is, or seeks to be, a party to arrangements for carbon dioxide to be transported to a relevant site for the purpose of disposal by way of geological storage;

“transport and storage networks” means infrastructure and facilities for— the disposal of carbon dioxide by way of geological storage (or injection for the purposes of geological storage) at a relevant site, or the transportation of carbon dioxide to a relevant site for the purpose of such disposal;

“relevant site” means a site that is— in the United Kingdom, or in, under or over— the territorial sea adjacent to the United Kingdom, or waters in a Gas Importation and Storage Zone (within the meaning given by section 1 of the Energy Act 2008).

(10) For the purposes of this Part activities are “licensable activities” if undertaking them without the authority of a licence or exemption constitutes an offence under section 2 (1).

Licensable activities

Prohibition on unlicensed activities

2

(1) It is an offence for a person to carry on an activity within subsection (2) unless the person is authorised to do so by a licence.

(2) The activities are—

(a) operating a site for the disposal of carbon dioxide by way of geological storage;

(b) providing a service of transporting carbon dioxide by a licensable means of transportation.

(3) In this Part “licensable means of transportation” means—

(a) a pipe or system of pipes, or

(b) any other means of transportation that may be specified by regulations made by the Secretary of State,

which falls within subsection (4).

(4) A means of transportation falls within this subsection if it is used (with or without other means of transportation) for transporting carbon dioxide all or part of the way to a site for the geological storage of carbon dioxide.

(5) A person who commits an offence under this section is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland or Northern Ireland, to a fine not exceeding the statutory maximum;

(6) No proceedings may be instituted in England and Wales in respect of an offence under this section except by or on behalf of the Secretary of State or the economic regulator.

(7) Regulations under subsection (3)(b) may make consequential, transitional, incidental or supplementary provision including—

(a) amendments (or repeals or revocations) in any provision of this Act or any other enactment, and

(b) provision modifying any standard conditions of licences or provision determining the conditions which are to be standard conditions for the purposes of licences authorising the undertaking of activities which are to become licensable activities.

(8) But regulations made by virtue of subsection (7)(a)may not make provision amending (or repealing or revoking) any provision of—

(a) an Act of the Scottish Parliament, or an instrument made under such an Act, unless the Scottish Ministers have consented to the making of that provision;

(b) a Measure or Act of Senedd Cymru, or an instrument made under such a Measure or Act, unless the Welsh Ministers have consented to the making of that provision;

(c) Northern Ireland legislation, or an instrument made under Northern Ireland legislation, unless the Department for the Economy in Northern Ireland has consented to the making of that provision.

(9) Regulations under subsection (3)(b) are subject to the affirmative procedure.

(10) For the purposes of this Part the person who “operates” a site for the geological storage of carbon dioxide is the person who carries on or (where different) controls activities at the site.

Consultation on proposals for additional activities to become licensable

3

(1) Before making regulations under section 2 (3)(b), the Secretary of State must give notice—

(a) stating that the Secretary of State proposes to make regulations providing for the means of transportation in question to become a licensable means of transportation, and

(b) specifying a reasonable period (of not less than 28 days from the date of publication of the notice) within which representations or objections may be made with respect to the proposal,

and must consider any representations or objections duly made and not withdrawn.

(2) The notice must be given—

(a) by sending a copy of the notice to the economic regulator, the appropriate devolved authorities and any other body the Secretary of State considers appropriate, and

(b) by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of persons likely to be affected by such regulations.

(3) For the purposes of this section the “appropriate devolved authorities” are—

(a) the Welsh Ministers, if the regulations contain provision that would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(b) the Scottish Ministers, if the regulations contain provision that would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(i) would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii) would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.

Territorial scope of prohibition

4

Section 2 (1) applies to activities in, above or below—

(a) the territorial sea adjacent to the United Kingdom, or

(b) waters in a Gas Importation and Storage Zone (within the meaning given by section 1 of the Energy Act 2008),

as it applies to activities in the United Kingdom.

Exemption from prohibition

5

(1) The Secretary of State may by regulations grant exemption from the prohibition under section 2 (1).

(2) An exemption may be granted—

(a) to a specified person, or persons of a specified class;

(b) generally or to such extent as may be specified;

(3) Before making regulations under subsection (1) the Secretary of State must give notice—

(a) stating that the Secretary of State proposes to make such regulations and setting out the terms of the proposed regulations,

(b) stating the reasons why the Secretary of State proposes to make the regulations in the terms proposed, and

(c) specifying the time (which must be not less than 28 days from the date of publication of the notice) within which representations with respect to the proposals may be made,

and must consider any representations which are duly made in respect of the proposals and not withdrawn.

(4) The notice required by subsection (3) must be given—

(a) by serving a copy of it on the economic regulator and any appropriate devolved authority, and

(b) by publishing it in such manner as the Secretary of State considers appropriate for bringing it to the attention of those likely to be affected by the proposed regulations.

(5) Notice of an exemption granted to a person is to be given—

(a) by serving a copy of the exemption on the person, and

(b) by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of other persons who may be affected by it.

(6) Notice of an exemption granted to persons of a class must be given by publishing the exemption in such manner as the Secretary of State considers appropriate for bringing it to the attention of—

(a) persons of that class, and

(b) other persons who may be affected by it.

(7) An exemption may be granted—

(a) indefinitely, or

(b) for a period specified in, or determined by or under, the exemption.

(8) Conditions subject to which an exemption is granted may (in particular) require any person carrying on any activity in pursuance of the exemption—

(a) to comply with any direction given by a relevant authority as to such matters as are specified in the exemption or are of a description so specified,

(b) to do (or not do) such things as are specified in the exemption or are of a description so specified, except so far as the Secretary of State or a relevant authority consents to the person’s not doing (or doing) them, and

(c) to refer for determination by the Secretary of State or a relevant authority such questions arising under the exemption as are specified in the exemption or are of a description so specified.

(9) For the purposes of this section the “appropriate devolved authorities” are—

(a) the Scottish Ministers, if the regulations under subsection (1) contain provision that would be within the legislative competence of the Scottish Parliament if it were contained in an Act of that Parliament;

(b) the Welsh Ministers, if those regulations contain provision that would be within the legislative competence of Senedd Cymru if it were contained in an Act of the Senedd (ignoring any requirement for the consent of a Minister of the Crown imposed under Schedule 7B to the Government of Wales Act 2006);

(i) would be within the legislative competence of the Northern Ireland Assembly if it were contained in an Act of that Assembly, and

(ii) would not, if it were contained in a Bill in the Northern Ireland Assembly, result in the Bill requiring the consent of the Secretary of State under section 8 of the Northern Ireland Act 1998.

(10) In subsection (8) “relevant authority” means a person specified in the conditions.

Revocation or withdrawal of exemption

6

(1) The Secretary of State may by regulations revoke regulations by which an exemption was granted to a person or vary regulations by which more than one exemption was so granted so as to terminate any of the exemptions—

(a) at the person’s request,

(b) in accordance with any provision of the regulations by which the exemption was granted, or

(2) The Secretary of State may by regulations revoke regulations by which an exemption was granted to persons of a class or vary regulations by which more than one exemption was so granted so as to terminate any of the exemptions—

(a) in accordance with any provision of the regulations by which the exemption was granted, or

(b) if it appears to the Secretary of State inappropriate that the exemption should continue to have effect.

(3) The Secretary of State may by regulations withdraw an exemption granted to persons of a class from any person of that class—

(a) at the person’s request,

(b) in accordance with any provision of the regulations by which the exemption was granted, or

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.