The Greenhouse Gas Emissions Trading Scheme Regulations 2012

[F1 Adjustment of allocation: permanent cessation of regulated activities at an excluded installation U.K.

8.— (1) For the purposes of this paragraph, an installation permanently ceases the carrying out of regulated activities where any of the following conditions are met—

(a) the permit or licence for the installation has been surrendered or revoked, or otherwise ceased to have effect before 1st January in the entry year;

(b) the operation of regulated activities at the installation became technically impossible before 1st January in the entry year;

(c) the installation was carrying out regulated activities, but ceased to do so before 1st January in the entry year, and it is technically impossible for it to resume doing so;

(d) subject to sub-paragraph (2), the operator suspends the carrying out of regulated activities at the installation before 1st January in the entry year; and

(i) the suspension is continuing after 1st January in the entry year; and

(ii) subject to sub-paragraph (5), the carrying out of regulated activities has not recommenced within the period of 6 months following the date of suspension.

(2) Sub-paragraph (1)(d) does not apply if the installation is kept in reserve or on standby, or is operated on a seasonal basis, provided that—

(a) the operator holds a permit and a licence for the installation;

(b) it is technically possible to commence the carrying out of regulated activities without making physical changes to the installation; and

(c) regular maintenance of the installation is carried out.

(3) Subject to sub-paragraph (6), no allocation of allowances may be made to the operator of an installation in any year following the year in which the installation has permanently ceased the carrying out of regulated activities.

(4) For the purpose of sub-paragraph (3), where an installation permanently ceases the carrying out of regulated activities by virtue of meeting the condition in sub-paragraph (1)(d), the date of the permanent cessation is deemed to be the date on which the operator suspends the carrying out of regulated activities at the installation.

(5) The operator may apply to the regulator, before the period of 6 months mentioned in sub-paragraph (1)(d)(ii) expires, for that period of 6 months to be extended to a period not exceeding 18 months where—

(a) the carrying out of regulated activities at the installation cannot be recommenced within that period of 6 months due to exceptional and unforeseeable circumstances; and

(b) those circumstances—

(i) could not have been avoided even if all due care had been exercised; and

(ii) were beyond the control of the operator.

(6) Where regulated activities at the installation recommence after the expiry of the relevant period, the operator may apply for an allocation of allowances under paragraph 2 of Schedule 6.

(7) Where—

(a) the operator suspends the carrying out of regulated activities at the installation before 1st January in the entry year; and

(b) the operator intends to recommence regulated activities before the expiry of the relevant period,

the operator may, within a period of one month beginning with the date of suspension, apply for the suspension to be treated as temporary.

(8) An application under sub-paragraph (7) must include evidence that the carrying out of regulated activities will recommence within the relevant period.

(9) If the application under sub-paragraph (8) is granted, allowances may be issued to the operator notwithstanding that the relevant period has not expired.

(10) Where—

(a) the operator suspends the carrying out of regulated activities at the installation before 1st January in the entry year;

(b) the suspension is continuing after 1st January in the entry year;

(c) the operator does not make an application under sub-paragraph (7); and

(d) the operator has not made an application under regulation 13(1),

the operator must notify the regulator of the suspension.

(11) A notification under sub-paragraph (10) must be made by—

(a) where the entry year is 2015, 31st December 2015;

(b) where the entry year is any other scheme year, 31st January in the entry year.

(12) The regulator must notify the registry administrator to withhold the allocation of allowances to the operator of an installation for as long as any of the following circumstances obtains—

(a) the regulator is investigating whether or not the installation has permanently ceased the carrying out of regulated activities;

(b) sub-paragraphs (10)(a) and (b) apply, but the operator has not made an application under sub-paragraph (7);

(c) an operator has made an application under sub-paragraph (7) but the application—

(i) has not been determined; or

(ii) has been refused and the relevant period has not expired;

(d) an application under regulation 13(1) has been made but has not been determined;

(e) a notice of surrender or revocation has been given but has not taken effect;

(f) an appeal against such a notice has been made but has not been determined or withdrawn;

(g) a notification has been made to the registry administrator under regulation 80(11) but the necessary changes to the allocation table have not been made.

(13) The registry administrator must comply with a notification made under sub-paragraph (12).

(14) Where the regulator makes a notification under sub-paragraph (12) the regulator—

(a) must notify the operator of the decision to do so as soon as is reasonably practicable; and

(b) may, if the regulator considers it appropriate to do so, notify the operator that—

(i) the allocation of allowances will be permanently reduced; or

(ii) the allowances (or a proportion of them) will be issued.

(15) In this paragraph—

(a) a “licence” for an installation is a permit in force issued in relation to that installation in accordance with—

(i) Directive 2008/1/EC of the European Parliament and of the Council concerning integrated pollution prevention and control, as amended for time to time; or

(ii) Directive 2010/75/EU of the European Parliament and of the Council on industrial emissions (integrated pollution prevention and control), as amended for time to time;

(b) “relevant period” means the period of 6 months following the date the operator suspends the carrying out of regulated activities at the installation, or any longer period allowed pursuant to sub-paragraph (5).]

Textual Amendments

F1 Sch. 6A inserted (4.12.2015) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2015 (S.I. 2015/1849), regs. 1(1), 14