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[F1Article 10U.K.Derogations for certain manufacturers

1.An application for a derogation from the specific emissions target calculated in accordance with Annex I may be made by a manufacturer [F2where the number of new passenger cars or new light commercial vehicles registered in [F3the United Kingdom] for which that manufacturer is responsible per calendar year is less than the small volume derogation threshold (calculated in accordance with Annex 4), and where the manufacturer]:

(a)is not part of a group of connected manufacturers; or

(b)is part of a group of connected manufacturers [F4where the number of new passenger cars or new light commercial vehicles registered in [F5the United Kingdom] for which that group is responsible per calendar year is less than the small volume derogation threshold]; or

(c)is part of a group of connected manufacturers but operates its own production facilities and design centre.

2.A derogation applied for under paragraph 1 may be granted for a maximum period of five calendar years, which is renewable. An application shall be made to the [F6Secretary of State] and shall include:

(a)the name of, and contact person for, the manufacturer;

(b)evidence that the manufacturer is eligible for a derogation under paragraph 1;

(c)details of the passenger cars or light commercial vehicles which it manufactures including the test mass and specific emissions of CO2 of those passenger cars or light commercial vehicles; and

(d)a specific emissions target consistent with its reduction potential, including the economic and technological potential to reduce its specific emissions of CO2 and taking into account the characteristics of the market for the type of passenger car or light commercial vehicle manufactured.

3.Where the [F7Secretary of State] considers that the manufacturer is eligible for a derogation applied for under paragraph 1 and is satisfied that the specific emissions target proposed by the manufacturer is consistent with its reduction potential, including the economic and technological potential to reduce its specific emissions of CO2, and taking into account the characteristics of the market for the type of passenger car or light commercial vehicle manufactured, the [F7Secretary of State] shall grant a derogation to the manufacturer.

The application shall be submitted at the latest by 31 October of the first year in which the derogation shall apply.

4.An application for a derogation from the specific emissions target calculated in accordance with points 1 to 4 and 6.3 of Part A of Annex I may be made by a manufacturer [F8where the number of new passenger cars registered in [F9the United Kingdom] for which that manufacturer, together with all of its connected undertakings, is responsible per calendar year is not less than the small volume derogation threshold and is not more than the niche volume derogation threshold (calculated in accordance with Annex 4)].

Such application may be made by a manufacturer in respect of itself or in respect of itself together with any of its connected undertakings. An application shall be made to the [F10Secretary of State] and shall include:

(a)all of the information referred to in points (a) and (c) of paragraph 2, including, where relevant, information about any connected undertakings;

(b)in relation to applications referring to points 1 to 4 of Part A of Annex I, a target which is a 45 % reduction on the average specific emissions of CO2 in 2007 or, where a single application is made in respect of a number of connected undertakings, a 45 % reduction on the average of those undertakings' average specific emissions of CO2 in 2007;

(c)in relation to applications referring to point 6.3 of Part A of Annex I to this Regulation, a target applicable in the calendar years 2025 to 2028 which is the reduction specified in point (a) of Article 1(4) of this Regulation on the target calculated in accordance with point (b) of this paragraph taking into account the CO2 emissions measured pursuant to Regulation (EU) 2017/1151 [F11, as it has effect F12... in EU law as amended from time to time and by virtue of the Northern Ireland Protocol].

Where information on a manufacturer's average specific emissions of CO2 does not exist for the year 2007, the [F10Secretary of State] shall determine an equivalent reduction target based upon the best available CO2 emissions reduction technologies deployed in passenger cars of comparable mass and taking into account the characteristics of the market for the type of car manufactured. That target shall be used by the applicant for the purposes of point (b) of the second subparagraph.

The [F10Secretary of State] shall grant a derogation to the manufacturer where it is demonstrated that the criteria for the derogation referred to in this paragraph have been met.

5.A manufacturer which is subject to a derogation in accordance with this Article shall notify the [F13Secretary of State] immediately of any change which affects or may affect its eligibility for a derogation.

6.Where the [F14Secretary of State] considers, whether on the basis of a notification under paragraph 5 or otherwise, that a manufacturer is no longer eligible for the derogation, [F15the Secretary of State] shall revoke the derogation with effect from 1 January of the next calendar year and shall notify the manufacturer thereof.

7.Where the manufacturer does not attain its specific emissions target, the [F16Secretary of State] shall impose the excess emissions premium on the manufacturer, as set out in Article 8.

8.[F17Regulations may] supplement paragraphs 1 to 7 of this Article, as regards the interpretation of the eligibility criteria for derogations, the content of the applications, and the content and assessment of programmes for the reduction of specific emissions of CO2.

[F18Regulations may] amend Part A of Annex I for the purpose of setting out the calculation formulae of the derogation targets referred to in point (c) of the second subparagraph of paragraph 4 of this Article.

9.Applications for a derogation, including the information supporting it, notifications under paragraph 5, revocations under paragraph 6, any imposition of an excess emissions premium under paragraph 7 and measures adopted pursuant to paragraph 8, shall be made publicly available [F19by the Secretary of State, subject to any relevant provisions of the data protection legislation (within the meaning of section 3(9) of the Data Protection Act 2018)]M1.]

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