The Energy Crops Regulations 2000

Explanatory Note

(This note is not part of the Regulations)

These Regulations, which extend to England only, supplement the Community legislation listed in the Schedule to the Regulations (“the Community legislation”). The Community legislation inter alia provides for assistance to be paid from the Guarantee Section of the European Agricultural Guidance and Guarantee Fund (“Community assistance”) towards investment in agricultural holdings and the afforestation of both agricultural and non-agricultural land. The Regulations operate within the scope of these provisions to encourage the development of the energy crops sector (see below) in the interests of increasing energy production from renewable sources and contributing to the fulfilment of international commitments. The Regulations enable assistance to be paid for projects involving the establishment of miscanthus and short rotation coppice (“energy crops”) for subsequent use in equipment or a plant which produces energy through the use of such crops as a fuel supply. The Regulations also enable assistance to be paid for projects involving the formation of producer organisations for the purposes of managing the production and supply of short rotation coppice.

The Regulations implement a part of the England Rural Development Programme (“ERDP”) approved by the European Commission under Article 44 of Council Regulation (EC) No. 1257/1999 (O.J. No. L160, 26.6.1999, p. 80), and provide for the payment of financial assistance by the Minister of Agriculture, Fisheries and Food (“the Minister”) in respect of those projects which he has approved (regulation 3). Such projects may be approved if they:

(i) are projects for the establishment of energy crops, or involving the formation of a producer organisation for the purposes of managing the production and supply of short rotation coppice;

(ii) are in accordance with that part of the ERDP which relates to expenditure for which support may be granted pursuant to Article 4, 30 or 31 of Council Regulation (EC) No. 1257/1999; and

(iii) satisfy certain criteria as to the nature of the land on which the crops are established and the use of those crops after harvesting; (regulation 5).

In addition, the Regulations provide for the making of claims for, and the payment of, financial assistance following approval (regulations 6 and 7) and also contain provisions creating obligations on those in receipt of financial assistance concerning the provision of information (regulation 8) and record-keeping (regulation 9).

Further provisions concerning enforcement matters and enabling the Minister to withhold or recover assistance in the event of a breach of the Regulations by an applicant or a beneficiary, and those respectively creating and specifying the resultant criminal offences and penalties, are contained in the England Rural Development Programme (Enforcement) Regulations 2000 (S.I. 2000/3044).

No Regulatory Impact Assessment has been prepared in respect of these Regulations.

Copies of the Commission Decision referred to in paragraph 3 of the Schedule, and of the ERDP, are available for inspection during normal office hours at the offices of the Ministry of Agriculture, Fisheries and Food, Nobel House, 17 Smith Square, London SW1P 3JR.