The Greenhouse Gas Emissions Trading Scheme Regulations 2012

Regulation 30(a)

SCHEDULE 7 Allocation of aviation allowances

Purpose of this Schedule

1.—(1) This Schedule sets out the requirements that must be satisfied by a UK administered operator (“ P”) who wishes to apply for an allocation of aviation allowances issued under Article 3e of the Directive in any trading period other than 2013 to 2020.

(2) Paragraph 10 provides for the recovery of aviation allowances to which a UK administered operator is not entitled, and applies to aviation allowances issued following an application made under Schedule 8 as well as one made under this Schedule.

Application for a benchmarking plan

2.—(1) P must apply to the regulator for a plan in accordance with Article 51(2) of the Monitoring and Reporting Regulation (a “benchmarking plan”).

(2) That application must contain a plan to monitor tonne-kilometre data from P’s aviation activity (together with supporting documents) submitted under Article 12(1) of the Monitoring and Reporting Regulation.

Issue of a benchmarking plan

3.—(1) Where P has made an application under paragraph 2 the regulator must, by notice given to P—

(a) issue a benchmarking plan to P; or

(b) where sub-paragraph (2) applies, refuse the application.

(2) This sub-paragraph applies where—

(a) the regulator is not satisfied that the plan proposed in the application complies with the Monitoring and Reporting Regulation; and

(b) P has not agreed to amendments of the plan that so satisfy the regulator.

(3) Where the regulator by notice refuses to issue a benchmarking plan under sub-paragraph (1)(b), the notice must state what changes must be made to the proposed plan for the purposes of any fresh application under paragraph 2.

Amendment of a benchmarking plan

4.—(1) P must apply to the regulator to vary P’s benchmarking plan where any significant modifications of that plan are necessary by virtue of Articles 14 and 15 of the Monitoring and Reporting Regulation.

(2) Where the regulator varies the plan following an application under paragraph (1), any reference in this paragraph or in paragraph 5 to a benchmarking plan is a reference to the plan as so varied.

Monitoring tonne-kilometre data

5.  P must monitor tonne-kilometre data from P’s aviation activity carried out in the benchmarking year in accordance with—

(a) the benchmarking plan issued under paragraph 3 (including the written procedures supplementing that plan); and

(b) the Monitoring and Reporting Regulation.

Reporting tonne-kilometre data

6.  P must—

(a) prepare a verified report of tonne-kilometre data monitored in accordance with paragraph 5;

(b) ensure that the report complies with the Monitoring and Reporting Regulation and the Verification Regulation; and

(c) make an application for an allocation by submitting the report to the regulator by 31st March in the year after the benchmarking year.

Submission of the report to the Secretary of State and the European Commission

7.—(1) Where P has made an application under paragraph 6(c) the regulator must—

(a) grant the application and submit the report to the Secretary of State; or

(b) subject to sub-paragraph (2), refuse the application where the regulator is not satisfied that P has complied with the requirements of this Schedule.

(2) The regulator may grant the application under sub-paragraph (1)(a) where P has otherwise complied with the requirements of this Schedule but failed to comply with the deadline in Article 51(2) of the Monitoring and Reporting Regulation or in paragraph 6(c).

(3) Where the regulator refuses the application under sub-paragraph (1)(b), the notice of determination must state the regulator’s reasons for doing so.

(4) The Secretary of State must, by 30th June in the year after the benchmarking year, submit to the European Commission any report submitted under sub-paragraph (1)(a).

Publication of aviation allowances

8.—(1) Within the period of 3 months beginning with the date on which the Commission adopts a decision under Article 3e(3) of the Directive in respect of a trading period, the Secretary of State must (in accordance with Article 3e(4)) calculate and publish—

(a) the total allocation of aviation allowances for the period to each UK administered operator whose report was submitted under paragraph 7(4); and

(b) the allocation of aviation allowances to each such UK administered operator for each year of the period.

(2) Sub-paragraph (1) is subject to regulation 47 (national security).

Force majeure

9.—(1) Paragraphs 4 to 8 are subject to the provisions of Article 68 of the Monitoring and Reporting Regulation (which apply where a person cannot monitor and report tonne-kilometre data because of serious and unforeseeable circumstances outside that person’s control).

(2) The Secretary of State must notify to the registry administrator any revised allocation of aviation allowances published by the Secretary of State under Article 68(3) of that Regulation.

Recovery of allowances

10.—(1) This sub-paragraph applies where a UK administered operator (“ Q”)—

(a) has a duty to return excess aviation allowances under Article 68(3) of the Monitoring and Reporting Regulation; or

(b) has otherwise been issued aviation allowances to which Q is no longer entitled as a result, in particular, of—

(i) Q having ceased to perform an aviation activity; or

(ii) an error of the regulator or registry administrator.

(2) Where sub-paragraph (1) applies, the regulator must give notice to Q instructing Q to return a sum of aviation allowances equal to those to which Q is not entitled.

(3) The notice under sub-paragraph (2) must specify—

(a) the number of aviation allowances to which Q is not entitled;

(b) the reason why Q is not entitled to them;

(c) the process by which they must be returned; and

(d) the date by which they must be returned.

(4) Q must comply with a notice given under sub-paragraph (2).