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32.—(1) Schedule 8 is amended as follows.
(2) For “2026-2030 allocation period” in each place (including in paragraph headings) substitute “2026-2030 period”.
(3) In paragraph 2(5)—
(a)after “paragraph 7(2)” insert “or 7A”;
(b)for “in the allocation period” substitute “in the period”.
(4) For paragraph 3(4) substitute—
“(4) The relevant condition is that—
(a)a regulated activity begins to be carried out at the installation on or before 1st January 2024; and
(b)the installation’s reportable emissions in each relevant scheme year do not exceed the maximum amount.
(4A) In sub-paragraph (4)(b), “relevant scheme year” means—
(a)if a regulated activity begins to be carried out at the installation on or before 1st January 2021, the 2021, 2022 and 2023 scheme years;
(b)if a regulated activity begins to be carried out at the installation in the period beginning with 2nd January 2021 and ending with 1st January 2022, the 2022, 2023 and 2024 scheme years;
(c)if a regulated activity begins to be carried out at the installation in the period beginning with 2nd January 2022 and ending with 1st January 2023, the 2023 and 2024 scheme years;
(d)if a regulated activity begins to be carried out at the installation in the period beginning with 2nd January 2023 and ending with 1st January 2024, the 2024 scheme year.”.
(5) In paragraph 7(7)—
(a)in paragraph (a) for “same allocation period” substitute “same period (that is to say, either the 2021-2025 allocation period or the 2026-2030 period)”;
(b)in paragraph (b) omit “allocation” in both places.
(6) After paragraph 7 insert—
7A.—(1) This paragraph applies where the operator of an installation included in the ultra-small emitter list for 2026-2030 notifies the regulator on or before 30th June 2026 as part of the second stage of an application for free allocation in the 2027-2030 allocation period under Article 4(1a)(b)(i) of the Free Allocation Regulation that—
(a)the operator wishes the application to proceed because the operator does not wish the installation to be an ultra-small emitter for the scheme years in the 2027-2030 allocation period; and
(b)the UK ETS authority informs the regulator under Article 15a(4) of that Regulation that the application is valid.
(2) The regulator must, as soon as reasonably practicable, give a notice to the operator stating that—
(a)the installation is not an ultra-small emitter for the 2027 scheme year;
(b)the operator must apply for a greenhouse gas emissions permit and comply with the conditions of the permit from 1st January 2027.”.
(7) In paragraph 8(1)(a) after “paragraph 7(2)” insert “or 7A”.
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