An operator shall surrender allowances for an installation by requesting or, where provided in Member State legislation, be deemed to have requested, the registry administrator to:

1. (a)

   transfer a specified number of allowances for a specified year from the relevant operator holding account into the Party holding account of that registry;

2. (b)

   enter the number of transferred allowances into the section of the surrendered allowance table designated for that installation for that year.

The transfer and entry shall take place in accordance with the allowance surrender process set out under Annex IX.

The use of CERs and ERUs by an operator in accordance with Article 11a of Directive 2003/87/EC in respect of an installation shall take place through an operator requesting the registry administrator to:

1. (a)

   transfer a specified number of CERs or ERUs for a specified year from the relevant operator holding account into the Party holding account of that registry;

2. (b)

   enter the number of transferred CERs and ERUs into the section of the surrendered allowance table designated for that installation for that year.

F3The registry administrator shall only accept requests to surrender CERs and ERUs up to the percentage of allocation to each installation specified by Member State legislation. The CITL shall reject any request to surrender CERs and ERUs that would surpass the maximum allowed amount of CERs and ERUs to be surrendered in the Member State, or that would result in surrendering CERs or ERUs that are barred from surrendering in accordance with Article 11a of Directive 2003/87/EC.

The transfer and entry shall take place in accordance with the allowance surrender process set out under Annex IX.

F2A CER or ERU that was already surrendered may not be surrendered again nor transferred to an operator or person holding account in the EU ETS.

Surrendered CERs and ERUs shall only be transferred into a retirement account.

Upon an entry being made into the section of the surrendered allowance table or verified emissions table designated for an installation, the registry administrator shall determine the following:

1. (a)

   for the years 2005, 2006 and 2007, the compliance status figure for that installation and for each year by calculating the sum of all allowances surrendered pursuant to Articles 52, 53 and 54 for the 2005 to 2007 period minus the sum of all verified emissions in the current five-year period up to and including the current year;

2. (b)

   for the year 2008 and each year thereafter, the compliance status figure for that installation and for each year by calculating the sum of all allowances surrendered pursuant to Articles 52, 53 and 54 for the current period minus the sum of all verified emissions from the year 2008 up to and including the current year, plus a correction factor.

The correction factor referred to in point (b) shall be zero if the 2007 figure was greater than zero, but shall remain as the 2007 figure if the 2007 figure is less than or equal to zero.

Where, on 1 May 2006 and on 1 May of each year thereafter, no verified emissions figure has been entered into the verified emissions table for an installation for a previous year, any substitute emissions figure determined pursuant to Article 16(1) of Directive 2003/87/EC which has not been calculated as closely as possible in accordance with the detailed requirements established by the Member State pursuant to Annex V of Directive 2003/87/EC shall not be entered into the verified emissions table.