Legalize / United Kingdom / Statutory-Instrument

The Greenhouse Gas Emissions Trading Scheme Regulations 2012

Type Statutory-Instrument

Publication 2012-12-05

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

The Secretary of State is a Minister designated for the purposes of section 2(2) of the European Communities Act 1972 in relation to the environment.

In accordance with section 2(4) of the Pollution Prevention and Control Act 1999 (“the 1999 Act”) , the Secretary of State has consulted the Environment Agency, the Scottish Environment Protection Agency, and such bodies or persons appearing to the Secretary of State to be representative of the interests of local government, industry, agriculture and small businesses, and such other bodies and persons, as the Secretary of State considers appropriate.

These Regulations make provision for a purpose mentioned in section 2(2) of the European Communities Act 1972, and it appears to the Secretary of State that it is expedient for the references to EU instruments in these Regulations to be construed as references to those instruments as amended from time to time.

Accordingly the Secretary of State, in exercise of the powers conferred by sections 2 and 7(9) of and Schedule 1 to the 1999 Act and by section 2(2) of the European Communities Act 1972, as read with paragraph 1A of Schedule 2 to the European Communities Act 1972 , makes the following Regulations :

PART 1 — General

Citation and commencement

1

These Regulations may be cited as the Greenhouse Gas Emissions Trading Scheme Regulations 2012 and come into force on 1st January 2013.

Duty to review these Regulations

2

(1) The DAERA must from time to time—

(a) carry out a review of these Regulations;

(b) set out the conclusions of the review in a report; and

(2) In carrying out the review the DAERA must, so far as is reasonable, have regard to how the Directive, and measures adopted under it by the European Commission, are implemented in ... member States.

(3) The report must in particular—

(a) set out the objectives intended to be achieved by the regulatory system established by these Regulations;

(b) assess the extent to which those objectives are achieved; and

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.

(4) The first report under this regulation must be published before the end of the period of five years beginning with the day on which these Regulations come into force.

(5) Reports under this regulation are afterwards to be published at intervals not exceeding five years.

Interpretation

3

(1) In these Regulations—

“the 2005 Regulations” means the Greenhouse Gas Emissions Trading Scheme Regulations 2005 ;

“the 2010 Regulations” means the Aviation Greenhouse Gas Emissions Trading Scheme Regulations 2010 ;

“the 2018 surrender deadline” means, subject to paragraphs (1A) to (1C), 10.59 pm on 29th March 2019;

“allocation”, in relation to an allowance, means allocation free of charge in accordance with Chapter 2 or 3 of the Directive (and, except in regulation 87A(3), “allocated” has the corresponding meaning);

“allocation period” means— the period which begins with 1st January 2021 and ends with 31st December 2025 (“the first allocation period”);the period which begins with 1st January 2026 and ends with 31st December 2030 (“the second allocation period”);

“allowance”—... has the meaning given in Article 3(a) of the Directive, ......

“annual reportable emissions” means the reportable emissions arising in any scheme year;

“Article 27 installation” means an installation of the kind described in regulation 15(A1);

“Article 27a installation” means an installation of the kind described in regulation 15A(1);

“Article 27 installation emissions permit” means a permit which— is granted following an application under regulation 10(2); orresults from a variation made under regulation 88 or paragraph 2 of Schedule 5;

“authority” means DAERA;

“bioliquids” has the meaning given in Article 2(h) of the Renewable Energy Directive;

“cease operation”, in relation to an installation, has the meaning given in paragraph (3);

“change of status notice” means a notice under— paragraph 8(1) or 8(4) of Schedule 5 that an installation will cease to be treated as an Article 27 installation;paragraph 5(1) of Schedule 5A, that an installation will cease to be treated as an Article 27a installation;

“chief inspector” means the chief inspector constituted under regulation 8(3) of the Northern Ireland Regulations;

“current operator” has the meaning given by regulation 12(1);

“DAERA” means the Department of Agriculture, Environment and Rural Affairs in Northern Ireland;

“the Directive” means Directive 2003/87/EC of the European Parliament and of the Council establishing a scheme for greenhouse gas emissions allowance trading within the Community and amending Council Directive 96/61/EC , as amended from time to time and as adapted by Annex 20 to the EEA agreement ;

“duly made”, in relation to an application, means made in accordance with the requirements of these Regulations;

“emissions” has the meaning given in Article 3(b) of the Directive;

“emissions target”, in relation to a scheme year, means an amount of reportable emissions specified in an Article 27 installation emissions permit as the target for that excluded installation in that year;

“entry year” means the scheme year following the scheme year in which the operator of an excluded installation is given a change of status notice;

“excluded installation” means— an Article 27 installation; oran Article 27a installation;

“fee”, in relation to any matter, means the fee or charge prescribed in respect of that matter by a scheme, or regulations, made under—......regulation 4 of the Greenhouse Gas Emissions Trading Scheme Charging Scheme Regulations (Northern Ireland) 2010 ; orArticle 127 of the Planning (Northern Ireland) Order 1991 ;

“greenhouse gas emissions permit” means a permit granted following an application under—regulation 10(1); orregulation 8 of the 2005 Regulations;

“installation” has the meaning given in Article 3(e) of the Directive (and references to an “installation” include a reference to a part of an installation);

“KP registry administrator” has the meaning given by regulation 81(1);

“monitoring and reporting conditions” has the meaning given by paragraph 3(8) of Schedule 5;

“monitoring and reporting requirements” has the meaning given by paragraph 2(3) of Schedule 4;

“the Monitoring and Reporting Regulation” means Commission Regulation (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council , as amended from time to time;

“the Monitoring and Reporting Regulation 2018” means Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012, as amended from time to time;

“new operator” has the meaning given by regulation 12(1);

“Northern Ireland Regulations” means the Pollution Prevention and Control (Industrial Emissions) Regulations (Northern Ireland) 2013;

“notice of surrender” has the meaning given in regulation 13(7);

“operator”, in relation to an installation, has the meaning given in paragraph (2) (and “operate” has the corresponding meaning);

“partial transfer” has the meaning given by regulation 12(2);

“permit” (except in paragraph 1(2)(b) of Schedule 4 ...) means—a greenhouse gas emissions permit; oran Article 27 installation emissions permit;

“the Planning Appeals Commission” means the Planning Appeals Commission established under article 110 of the Planning (Northern Ireland) Order 1991 ;

“prescribed” (in relation to a fee) means specified in, or determined under, the scheme or regulations in question;

“the Registries Regulation 2010” means Commission Regulation (EU) No 920/2010 of 7 October 2010 for a standardised and secured system of registries pursuant to Directive 2003/87/EC of the European Parliament and of the Council and Decision No 280/2004/EC of the European Parliament and of the Council ;

“the Registries Regulation 2013” means Commission Regulation (EU) No 389/2013 of 2 May 2013 establishing a Union Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/EC and No 406/2009/EC of the European Parliament and of the Council and repealing Commission Regulations (EU) No 920/2010 and No 1193/2011, as amended from time to time;

“the Registries Regulation 2019” means Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry, as amended from time to time;

“registry administrator” has the meaning given by regulation 8(1);

“registry account” means an operator holding account ... in the Union Registry (and “open”, “blocked” , “excluded” or “closed” status, in relation to such an account, have the meanings given by Article 10 of the Registries Regulation 2013);

“regulated activity” means an activity ... that—is listed in Annex 1 to the Directive, andresults in specified emissions;

“regulator” means the chief inspector;

“the Renewable Energy Directive” means Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC , as amended from time to time;

“reportable emissions” means—in relation to an installation, the total specified emissions (expressed in tonnes of carbon dioxide equivalent) which arise from the regulated activities carried out at that installation; ......

“revocation notice” has the meaning given by regulation 14(1);

“scheme year” means the year beginning with 1st January 2013 or any subsequent calendar year;

“specified emissions”, in relation to an activity listed in Annex 1 to the Directive, means emissions of gases specified in Annex 1 in respect of that activity;

“surrender requirements” has the meaning given by paragraph 2(4) of Schedule 4;

“tonne of carbon dioxide equivalent” has the meaning given in Article 3(j) of the Directive;

“trading period” means one of the following ... periods—2013 to 2020; andsubsequent consecutive periods of ten calendar years;

“the Union Registry” means the registry established by Article 4 of the Registries Regulation 2013;

“the UK Registry” means the registry operated by the Environment Agency for the purposes specified in Article 3(1) of the Registries Regulation 2010 immediately before the coming into force of these Regulations;

“variation”, in relation to a permit or a plan, means the amendment of its provisions (and “vary” has the corresponding meaning);

“the Verification Regulation ...” means Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/EC of the European Parliament and of the Council, as amended from time to time;

“working day” means any day other than—a Saturday, Sunday, Good Friday, or Christmas Day; ora day which is a bank holiday under the Banking and Financial Dealings Act 1971 ;

“written procedures” means the written procedures required by Article 11(1) of the Monitoring and Reporting Regulation 2018.

(1A) This paragraph applies if at any time before 10.59 pm on 29th March 2019 an enactment (“enactment 1”) has made provision, in any form, which has the effect that exit day, within the meaning of section 20(1) of the European Union (Withdrawal) Act 2018 (“the 2018 Act”), is to be a date after 29th March 2019.

(1B) This paragraph applies where—

(a) paragraph (1A) applies; and

(b) at any time on or after 10.59 pm on 29th March 2019 but before the 2018 surrender deadline which applies in relation to enactment 1, a subsequent enactment (“enactment 2”) has made provision, in any form, which has the effect that exit day, within the meaning of section 20(1) of the 2018 Act, is to be a date after the date provided for in enactment 1,

and in the event of an enactment subsequent to enactment 2, the references in sub-paragraph (b) to enactment 1 are to be read as references to enactment 2 and so on.

(1C) Where paragraph (1A) or paragraph (1B) applies—

(a) if exit day is a day falling before 1st May 2019, the 2018 surrender deadline is immediately before the UK’s exit from the European Union; and

(b) if exit day is a day falling on or after 1st May 2019, the 2018 surrender deadline is 30th April 2019.

(2) The “operator” of an installation is the person who has control over its operation; but where—

(a) an installation has not been put into operation, the operator is the person who will have control over the operation of the installation when it is put into operation;

(b) an installation that is not an Article 27a installation has ceased operation, the operator is the person who holds the permit relating to the installation; ...

(ba) an Article 27a installation has ceased operation, the operator is the person who had control over its operation immediately before the installation ceased operation; and

(c) the holder of a permit has ceased to have control of the installation to which it relates, the operator is that permit holder.

(3) For the purposes of these Regulations, an installation has ceased operation if—

(a) a regulated activity is no longer being carried out at the installation; and

(b) it is technically impossible to resume operation.

(5) References in these Regulations to anything taking effect (or ceasing to have effect) on a particular date are to be read as references to it taking effect (or ceasing to have effect) as from the beginning of that date.

Application to the Crown etc.

4

Schedule 1 (application to the Crown etc.) has effect.

Notices etc.

5

Schedule 2 (notices etc.) has effect.

Applications etc.

6

Schedule 3 (applications etc.) has effect.

Functions of the regulator: Northern Ireland

7

(1) Regulation 8(4) of the Northern Ireland Regulations (delegation of functions) has effect as if the reference to the chief inspector's functions included a reference to the chief inspector's functions under these Regulations.

(2) Regulation 40(1) of the Northern Ireland Regulations (power of the Department to give directions) has effect as if the reference to functions under those Regulations included a reference to functions under these Regulations.

(3) Any direction of the Department of the Environment that is given by virtue of paragraph (2) must be published in such manner as the Department of the Environment considers appropriate.

Commission Regulations: designations

8

(1) DAERA is the national administrator designated by the United Kingdom for the purposes of the Registries Regulation 2019, and in these Regulations is referred to in that capacity as the “registry administrator”.

(2) Subject to paragraph (3), the regulator is the competent authority designated by the United Kingdom for the purposes of the Registries Regulation 2019 (other than for Articles 22(3) and 30(7)).

(3) DAERA is the competent authority so designated for the purposes of—

(a) Article 28(1);

(b) Article 30(8);

(d) Article 66(1).

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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