8.—(1) For the purposes of this paragraph, an installation partially ceases regulated activities where sub-paragraph (2) applies in relation to that installation.
(2) This sub-paragraph applies where one sub-installation of the installation which contributes to—
(a)at least 30% of the final annual amount of allowances allocated to the installation, or
(b)the allocation of more than 50,000 allowances,
reduces its activity level in a given year by at least 50% compared to the activity level originally used for calculating the sub-installation's allocation (“initial activity level”).
(3) However, following a partial transfer, sub-paragraph (2) applies as follows—
(a)the amount of allowances transferred to the transferred units, in accordance with paragraph 3(2) of Schedule 4, is to be treated as the final annual amount of allowances allocated to the installation for the purposes of this paragraph; and
(b)the activity level calculated in accordance with paragraph 3(2)(b)(i) of Schedule 4 is to be treated as the initial activity level for the purposes of this paragraph.
(4) Where an installation partially ceases regulated activities—
(a)the operator must notify the regulator that such a reduction in activity level has occurred, stating the amount of that reduction and the sub-installation to which it applies—
(i)by 31st December in the year in which the reduction occurred, or
(ii)within one month after the date on which it occurred, if later; and
(b)the regulator must—
(i)adjust the allocation of allowances in accordance with sub-paragraph (6),
(ii)revise the preliminary annual number of allowances allocated to each sub-installation; and
(iii)revise the preliminary total annual amount of allowances to be allocated, commencing with the year following the year in which the reduction in activity level occurred.
(5) Where a sub-installation of an installation that contributes as described in sub-paragraph (2)(a) or (b) reduced its activity level in 2012 by at least 50% compared to the initial activity level—
(a)the operator must by 1st February 2013 notify the regulator that such a reduction in activity level has occurred, stating the amount of that reduction and the sub-installation to which it applies; and
(b)the regulator must take the action described in sub-paragraph (4)(b).
(6) Where the activity level of a sub-installation is reduced—
(a)by 50% or more but less than 75% compared to the initial activity level, the operator is entitled to receive a quantity of allowances representing half of the final annual amount of allocated allowances in respect of that sub-installation, commencing with the year following the year during which the reduction took place;
(b)by 75% or more but less than 90% compared to the initial activity level, the operator is entitled to receive a quantity of allowances representing 25% of the final annual amount of allocated allowances in respect of that sub-installation, commencing with the year following the year during which the reduction took place;
(c)by 90% or more, the operator is entitled to no allowances in respect of that sub-installation, commencing with the year following the year during which the reduction took place.
(7) Where, following such reduction, the activity level of a sub-installation subsequently reaches more than—
(a)50% compared to the initial activity level, the operator is entitled to receive a quantity of allowances equal to the full quantity of the final annual amount of allowances allocated in respect of that sub-installation, commencing with the year following the year during which the activity level exceeded 50%;
(b)25% compared to the initial activity level, the operator is entitled to receive a quantity of allowances equal to half of the final annual amount of allowances allocated in respect of that sub-installation, commencing with the year following the year during which the activity level exceeded 25%.
(8) Where sub-paragraph (7) applies—
(a)the operator must take the action described in sub-paragraph (4)(a) in relation to the subsequent change; and
(b)the regulator must—
(i)adjust the allocation of allowances in accordance with sub-paragraph (7);
(ii)revise the preliminary annual number of allowances allocated to each sub-installation; and
(iii)revise the preliminary total annual amount of allowances to be allocated, commencing with the year following the year in which the subsequent change occurred.
(9) The regulator must request 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 partially ceased regulated activities;
(b)the information required under sub-paragraph (4)—
(i)has not been submitted in accordance with that sub-paragraph; or
(ii)has been submitted but is insufficient;
(c)the regulator is carrying out functions under sub-paragraph (4)(b);
(d)a notification has been given to the European Commission pursuant to paragraph 9(3)(d) and the notified amount of allowances has not yet been approved by it;
(e)a notification has been made to the registry administrator under regulation 80(11) but the necessary changes to the allocation table have not yet been made.
(10) The registry administrator must comply with a request made under sub-paragraph (9).
(11) Where the regulator has made a request under sub-paragraph (9) 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, subsequently 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.
(12) In this paragraph “activity level” means (subject to sub-paragraph (3)(b)) the activity level used for calculating the sub-installation's allocation in accordance with Article 9 of the Free Allocation Decision (or, where applicable, Article 18).