The Greenhouse Gas Emissions Trading Scheme Regulations 2005

Applications to retain allocation

24.—(1) Where the approved national allocation plan provides that, if conditions specified in the approved national allocation plan are met, an operator which ceases to carry out a Schedule 1 activity in an installation may retain the allowances, or a proportion of the allowances, allocated in respect of that installation under these Regulations, the operator may apply to the regulator to retain its allocation.

(2) An application under paragraph (1) shall contain such information as the regulator may reasonably require for the purpose of determining the application in accordance with the provisions of the approved national allocation plan.

(3) Subject to paragraph (4), the regulator shall give notice under paragraph (7) of its determination of an application which is duly made under paragraph (1) within a period of two months beginning on the day on which the regulator received the application or within such longer period as may be agreed in writing with the applicant.

(4) For the purposes of calculating the period of two months mentioned in paragraph (3) no account shall be taken of any period beginning with the date on which notice is served on the applicant under paragraph (6) and ending on the date on which the applicant furnishes the information specified in the notice.

(5) If the regulator fails to give notice of its determination of an application under paragraph (1) within the period allowed by paragraph (3), the application shall, if the operator notifies the regulator that it treats the application as having been refused, be deemed to have been refused.

(6) The regulator may, by notice to the applicant, require him to furnish such further information specified in the notice, within the period so specified, as the regulator may require for the purpose of determining the application and if the applicant fails to furnish the specified information within the period specified, the application shall, if the regulator gives notice to the applicant that it treats the application as having been withdrawn, be deemed to have been withdrawn at the end of that period.

(7) Where an application is duly made under paragraph (1), the regulator shall, in accordance with the provisions of the approved national allocation plan—

(a) accept the application and provide, subject to such conditions as the regulator considers appropriate, for either–

(i) all the allowances allocated in respect of the installation for the scheme phase to which the application relates to be retained, or

(ii) a proportion of the allowances allocated in respect of the installation for the scheme phase to which the application relates to be retained; or

(b) refuse the application,

by serving a notice on the operator.

(8) A notice under paragraph (7)(a) (a “retention notice”) shall—

(a) specify such variations to the provisions of the greenhouse gas emissions permit as the regulator considers appropriate which shall take effect from the date on which the notice takes effect;

(b) specify the number of hours which the regulator required to determine the application under paragraph (1) and shall require the operator to pay, within such period as may be specified in the notice, the fee prescribed in Schedule 5 in respect of the determination of the application.

(9) Where—

(a) a retention notice provides for only a proportion of the allowances allocated under regulation 22(13)(b) or (18) in respect of the installation to be retained, the regulator shall take such steps as are necessary to ensure that from the date on which the retention notice takes effect only such proportion of the allowances as is specified in the notice are issued in respect of the installation;

(b) a retention notice provides for only a proportion of the allowances allocated under regulation 21(1)(b) or, if applicable, (1)(c) in respect of the installation to be retained, the regulator shall notify the Secretary of State who shall take such steps as she considers necessary to ensure that from the date on which the retention notice takes effect only such proportion of the allowances as is specified in the notice are issued in respect of the installation.

(10) Subject to regulation 32(10), where a retention notice provides for a proportion of the allowances allocated in respect of the installation to which the application relates to be retained, the provision of the notice specifying the proportion of the allowances to be retained shall take effect from the expiry of a period of 15 working days beginning on the date of the notice.

(11) Where—

(a) an application under paragraph (1) is withdrawn by the operator or refused by the regulator; or

(b) any conditions specified in a notice under paragraph (7)(a) are no longer met,

the regulator shall revoke the greenhouse gas emissions permit in accordance with regulation 17(1).