Energy Act 2023

97 Change of use relief: carbon storage network pipelines U.K.

(1) Section 30B of the Energy Act 2008 (submarine pipelines converted for CCS demonstration projects) is amended as follows.

(2) For the heading substitute “Change of use relief: carbon storage network pipelines”.

(3) For “CCS pipeline”, in each place it occurs, substitute “carbon storage network pipeline”.

(4) In subsection (1), for “by order” insert “, on an application made by a relevant person, by notice”.

(5) After subsection (1) insert—

“(1A) The Secretary of State must consult the Oil and Gas Authority before deciding—

(a) whether to designate a pipeline under subsection (1);

(b) whether to make a certification under subsection (3)(b).”

(6) For subsection (2) substitute—

“(2) An eligible carbon storage network pipeline qualifies for change of use relief if—

(a) the Secretary of State has given a CCS-related abandonment programme notice to a person in relation to the abandonment of the pipeline, and

(b) the trigger event has occurred in relation to the pipeline.

(2A) In subsection (2) “CCS-related abandonment programme notice” means an abandonment programme notice under section 29 of the 1998 Act given at a time when the pipeline is used, or is to be used wholly or mainly—

(a) for the purpose of disposing of carbon dioxide by way of geological storage, or

(b) as a licensable means of transportation.”

(7) For subsection (3) substitute—

“(3) The trigger event occurs in relation to an eligible carbon storage network pipeline when—

(a) a decommissioning fund (as defined in section 92(7) of the Energy Act 2023) has been established for providing security for the discharge of liabilities in respect of decommissioning costs in relation to the pipeline, and

(b) the Secretary of State certifies by notice in writing (an “approval notice”) that one or more relevant persons have paid into the fund an amount or amounts the total of which is not less than the required amount.

(3A) In subsection (3)—

(a) “relevant person” means a person of a description specified in regulations made by the Secretary of State;

(b) “the required amount” means an amount determined by the Secretary of State in accordance with regulations made by the Secretary of State.

(3B) Where the Secretary of State gives an approval notice in relation to an eligible carbon storage network pipeline, the Secretary of State must—

(a) give a copy of the approval notice to every person to whom a notice has been given under section 29(1) of the 1998 Act in relation to the pipeline, and

(b) publish a notice that—

(i) specifies the pipeline, and

(ii) states that the Secretary of State has given an approval notice under subsection (3)(b) in relation to it.”

(8) In subsection (6), for “an order made” substitute “a notice given”.

(9) After subsection (6) insert—

“(6A) The Secretary of State must publish a notice given under subsection (1).”

(10) In subsection (7)—

(a) for “and “CCS demonstration project” have the same meanings” substitute “has the same meaning”;

(b) omit the definition of “carbon storage facility”;

(c) at the appropriate places insert—

• ““decommissioning costs” has the meaning given by section 92 of the Energy Act 2023;”;

• “““geological storage”, in relation to carbon dioxide, has the same meaning as in Part 1 of the Energy Act 2023 (see section 55 of that Act);”;

• “““licensable means of transportation” has the meaning given by section 2(3) of the Energy Act 2023;”;

• “““relevant person” means a person to whom a notice may be given under section 29(1) of the 1998 Act in relation to a submarine pipeline;”.

Commencement Information

I1 S. 97 in force at 26.12.2023, see s. 334(3)(b)