The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 3) Regulations 2019
| Year | 2019 |
2019 No. 1440
Climate Change
The Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 3) Regulations 2019
Made 30th October 2019
Laid before Parliament 31th October 2019
Coming into force in accordance with regulation 1
The Secretary of State has been designated1for the purposes of making regulations under section 2(2) of the European Communities Act 19722in relation to the environment.
The Secretary of State makes these Regulations3in exercise of the powers conferred by sections 2 and 7(9) of, and Schedule 1 to, the 1999 Act4and by section 2(2) of the European Communities Act 1972 and paragraph 1A of Schedule 2 to the European Communities Act 19725,
In accordance with section 2(4) of the Pollution Prevention and Control Act 1999 (“the 1999 Act”)6, the Secretary of State has consulted the Environment Agency, the Natural Resources Body for Wales, the Scottish Environment Protection Agency, and such bodies or persons appearing to the Secretary of State to be representative of the interests of local government, industry, agriculture and small businesses, and such other bodies and persons, as the Secretary of State considers appropriate.
These Regulations make provision for a purpose mentioned in section 2(2) of the European Communities Act 1972, and it appears to the Secretary of State that it is expedient for the references to EU instruments in these Regulations to be construed as references to those instruments as amended from time to time.
Citation and commencement
1.—(1) These Regulations may be cited as the Greenhouse Gas Emissions Trading Scheme (Amendment) (No. 3) Regulations 2019 and come into force in accordance with paragraphs (2) to (4).
(2) This regulation and regulations 3(2)(g) and (l), 4(4) and (5), 15(3), 18(3) to (5), 20, 24(3), 25 and 26 come into force 21 days after the day on which these Regulations are laid.
(3) Regulation 27, which substitutes regulation 88 of the Greenhouse Gas Emissions Trading Scheme Regulations 20127comes into force on 1st May 2020, to the extent that it relates to the making of arrangements under paragraph (5) of regulation 88 (as substituted), but otherwise comes into force on 1st January 2021.
(4) The remainder of these Regulations come into force on 1st January 2021.
(5) These Regulations will cease to have effect and are revoked on exit day8, and the provisions amended by the regulations referred to in paragraph (2) are deemed never to have been amended.
Amendment of the Greenhouse Gas Emissions Trading Scheme Regulations 2012
2. These Regulations amend the Greenhouse Gas Emissions Trading Scheme Regulations 2012 in accordance with regulations 3 to 30.
Amendment of regulation 3
3.—(1) Regulation 3 is amended as follows.
(2) In paragraph (1)—
(a)
(a) after the definition of “allocation”, insert—
““allocation period” means—
(a) the period which begins with 1st January 2021 and ends with 31st December 2025 (“the first allocation period”);
(b) the period which begins with 1st January 2026 and ends with 31st December 2030 (“the second allocation period”);”;
(b)
(b) after the definition of “annual reportable emissions”, insert—
““Article 27 installation” means an installation of the kind described in regulation 15(A1);
“Article 27a installation” means an installation of the kind described in regulation 15A(1);
“Article 27 installation emissions permit” means a permit which—
(a) is granted following an application under regulation 10(2); or
(b) results from a variation made under regulation 88 or paragraph 2 of Schedule 5;”;
(c)
(c) for the definition of “change of status notice”9substitute—
““change of status notice” means a notice under—
(a) paragraph 8(1) or 8(4) of Schedule 5 that an installation will cease to be treated as an Article 27 installation;
(b) paragraph 5(1) of Schedule 5A, that an installation will cease to be treated as an Article 27a installation;”;
(d)
(d) after the definition of “emissions”, insert—
““emissions target”, in relation to a scheme year, means an amount of reportable emissions specified in an Article 27 installation emissions permit as the target for that excluded installation in that year;”;
(e)
(e) for the definition of “excluded installation” substitute—
““excluded installation” means—
(a) an Article 27 installation; or
(b) an Article 27a installation;”;
(f)
(f) omit the definition of “excluded installation emissions permit”;
(g)
(g) after the definition of “the Free Allocation Decision”, insert—
““the Free Allocation Regulation” means Commission Delegated Regulation (EU) 2019/331 of 19 December 2018 determining transitional Union-wide rules for harmonised free allocation of emission allowances pursuant to Article 10a of Directive 2003/87/ECof the European Parliament and of the Council, as amended from time to time10;”;
(h)
(h) after the definition of “the Monitoring and Reporting Regulation”, insert—
““the Monitoring and Reporting Regulation 2018” means Commission Implementing Regulation (EU) 2018/2066 of 19 December 2018 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive 2003/87/ECof the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012, as amended from time to time11;”;
(i)
(i) in the definition of “permit”, in paragraph (b), for “excluded” substitute “Article 27”;
(j)
(j) in the definition of “sub-installation” for “Article 3(b)” to the end substitute “Article 2, points (2), (3), (5), (6), and (10) and Article 10 of the Free Allocation Regulation”;
(k)
(k) in the definition of “trading period”—
(i) in the words before paragraph (a), omit “eight-year”; and
(ii) in paragraph (b), for “eight” substitute “ten”;
(l)
(l) for the definition of “the Verification Regulation”, substitute—
““the Verification Regulation 2018” means Commission Implementing Regulation (EU) 2018/2067 of 19 December 2018 on the verification of data and on the accreditation of verifiers pursuant to Directive 2003/87/ECof the European Parliament and of the Council, as amended from time to time12;”;
(m)
(m) in the definition of “written procedures”, at the end, insert “2018”.
(3) In paragraph (2)—
(a)
(a) in sub-paragraph (b), after “an installation”, insert “that is not an Article 27a installation”;
(b)
(b) after sub-paragraph (b)—
(i) omit “and”;
(ii) insert—
“(ba)
“(ba) an Article 27a installation has ceased operation, the operator is the person who had control over its operation immediately before the installation ceased operation; and”.
Amendment of regulation 8
4.—(1) Regulation 8 is amended as follows.
(2) For paragraph (6) substitute—
“6 The regulator is the competent authority designated by the United Kingdom for the purposes of the Monitoring and Reporting Regulation 2018.”.
(3) Omit paragraph (7).
(4) For paragraph (9) substitute—
“9 The Environment Agency is designated as the focal point authorised by the United Kingdom for the purpose of Article 70(2) of the Verification Regulation 2018.”.
(5) After paragraph (9), insert—
“10 The regulator is the competent authority designated by the United Kingdom for the purposes of the Free Allocation Regulation.”.
Amendment of regulation 9
5.—(1) Regulation 9 is amended as follows.
(2) Number the existing text as paragraph (1) of that regulation.
(3) After paragraph (1), insert—
“2 Paragraph (1) does not apply in relation to a person carrying out a regulated activity at an Article 27a installation.”.
Amendment of regulation 10
6.—(1) Regulation 10 is amended as follows.
(2) In paragraphs (2) and (3), for “excluded”, in each place it occurs, substitute “Article 27”.
(3) After paragraph (3), insert—
“3A An Article 27 installation emissions permit that is granted for the purposes of the first allocation period continues to have effect for the purposes of the second allocation period if the installation is deemed to be approved by the European Commission under the first subparagraph of Article 27(2) of the Directive in relation to that period.”.
(4) In paragraph (4), for “excluded installations” substitute “Article 27 installation emissions”.
(5) In paragraph (7), for “excluded” substitute “Article 27”.
Amendment of regulation 11
7.—(1) Regulation 11 is amended as follows.
(2) Omit paragraph (1).
(3) In paragraph (2)—
(a)
(a) omit sub-paragraph (a);
(b)
(b) in sub-paragraph (b), at the end, insert “2018”.
(4) In paragraph (4)—
(a)
(a) in sub-paragraph (a), for “88(6)” substitute “88(2) or (4)”;
(b)
(b) in sub-paragraph (b)(v), at the end, insert “or 8(6A)”.
Amendment of regulation 12
8. In regulation 12(4)(b)(ii), for “excluded installations” substitute “Article 27 installation”.
Amendment of regulation 13
9. In regulation 13(6)(a), for “excluded” substitute “Article 27”.
Amendment of regulation 14
10. In regulation 14(1), for sub-paragraph (b) substitute—
“(b)
“(b) must do so where—
(i) the regulator becomes aware that the operator has failed to comply with regulation 13(1) to (3);
(ii) a greenhouse gas emissions permit is held by the operator of an Article 27a installation;
(iii) an Article 27 installation emissions permit is held by the operator of an Article 27a installation.”.
Amendment of regulation 15
11.—(1) Regulation 15 is amended as follows.
(2) In the heading, at the end, insert “: Article 27 installations”.
(3) Before paragraph (1), insert—
“A1 An installation is an Article 27 installation for the duration of a particular allocation period if, in relation to that period, it is deemed to be approved by the European Commission under the first subparagraph of Article 27(2) of the Directive, unless a notice has been given...
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