PART 1 General

Citation and commencement

1. These Regulations may be cited as the Greenhouse Gas Emissions Trading Scheme Regulations 2012 and come into force on 1st January 2013.

Application

1A. From 1st January 2021 these Regulations apply in Northern Ireland only, in relation to any emissions created on or after that date, from a regulated activity at an installation, by the generation of electricity in Northern Ireland for the single wholesale electricity market in Ireland and Northern Ireland.

Duty to review these Regulations

2.—(1) The DAERA must from time to time—

(a) carry out a review of these Regulations;

(b) set out the conclusions of the review in a report; and

(c) publish the report.

(2) In carrying out the review the DAERA must, so far as is reasonable, have regard to how the Directive, and measures adopted under it by the European Commission, are implemented in ... member States.

(3) The report must in particular—

(a) set out the objectives intended to be achieved by the regulatory system established by these Regulations;

(b) assess the extent to which those objectives are achieved; and

(c) assess whether those objectives remain appropriate and, if so, the extent to which they could be achieved with a system that imposes less regulation.

(4) The first report under this regulation must be published before the end of the period of five years beginning with the day on which these Regulations come into force.

(5) Reports under this regulation are afterwards to be published at intervals not exceeding five years.

Interpretation

3. —(1) In these Regulations—

“ the 2005 Regulations ” means the Greenhouse Gas Emissions Trading Scheme Regulations 2005 ;

“ the 2010 Regulations ” means the Aviation Greenhouse Gas Emissions Trading Scheme Regulations 2010 ;

“ the 2018 surrender deadline ” means, subject to paragraphs (1A) to (1C), 10.59 pm on 29th March 2019;

“ allocation ”, in relation to an allowance, means allocation free of charge in accordance with Chapter 2 or 3 of the Directive (and, except in regulation 87A(3), “allocated” has the corresponding meaning) ;

“ allocation period ” means—

“allowance”—

“ annual reportable emissions ” means the reportable emissions arising in any scheme year;

“ 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—

“authority” means DAERA;

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“ bioliquids ” has the meaning given in Article 2(h) of the Renewable Energy Directive;

“ cease operation ”, in relation to an installation, has the meaning given in paragraph (3);

“ change of status notice ” means a notice under—

“ chief inspector ” means the chief inspector constituted under regulation 8(3) of the Northern Ireland Regulations;

...

“ current operator ” has the meaning given by regulation 12(1);

“DAERA” means the Department of Agriculture, Environment and Rural Affairs in Northern Ireland;

“ the Directive ” means Directiveemissionsallowance trading within the Community and amending Council Directive

“ duly made ”, in relation to an application, means made in accordance with the requirements of these Regulations;

“ emissions ” has the meaning given in Article 3(b) of the Directive;

“ 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;

“entry year” means the scheme year following the scheme year in which the operator of an excluded installation is given a change of status notice;

“ excluded installation ” means—

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“ fee ”, in relation to any matter, means the fee or charge prescribed in respect of that matter by a scheme, or regulations, made under—

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“ greenhouse gas emissions permit ” means a permit granted following an application under—

“ installation ” has the meaning given in Article 3(e) of the Directive (and references to an “installation” include a reference to a part of an installation);

“ KP registry administrator ” has the meaning given by regulation 81(1);

“ monitoring and reporting conditions ” has the meaning given by paragraph 3(8) of Schedule 5;

“ monitoring and reporting requirements ” has the meaning given by paragraph 2(3) of Schedule 4;

“ the Monitoring and Reporting Regulation ” means Commission Regulation (EU) No 601/2012 of 21 June 2012 on the monitoring and reporting of greenhouse gas emissions pursuant to Directive

“ 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/EC of the European Parliament and of the Council and amending Commission Regulation (EU) No 601/2012, as amended from time to time;

“ new operator ” has the meaning given by regulation 12(1);

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“ Northern Ireland Regulations ” means the Pollution Prevention and Control (Industrial Emissions) Regulations (Northern Ireland) 2013;

“ notice of surrender ” has the meaning given in regulation 13(7);

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“ operator ”, in relation to an installation, has the meaning given in paragraph (2) (and “operate” has the corresponding meaning);

“ partial transfer ” has the meaning given by regulation 12(2);

“permit” (except in paragraph 1(2)(b) of Schedule 4 ...) means—

“ the Planning Appeals Commission ” means the Planning Appeals Commission established under article 110 of the Planning (Northern Ireland) Order 1991 ;

“prescribed” (in relation to a fee) means specified in, or determined under, the scheme or regulations in question;

“ the Registries Regulation 2010 ” means Commission Regulation (EU) No 920/2010 of 7 October 2010 for a standardised and secured system of registries pursuant to Directive

...

“the Registries Regulation 2013” means Commission Regulation ( EU ) No 389/2013 of 2 May 2013 establishing a Union Registry pursuant to Directive 2003/87/EC of the European Parliament and of the Council, Decisions No 280/2004/ EC and No 406/2009/ EC of the European Parliament and of the Council and repealing Commission Regulations ( EU ) No 920/2010 and No 1193/2011, as amended from time to time;

“the Registries Regulation 2019” means Commission Delegated Regulation (EU) 2019/1122 of 12 March 2019 supplementing Directive 2003/87/EC of the European Parliament and of the Council as regards the functioning of the Union Registry, as amended from time to time;

“ registry administrator ” has the meaning given by regulation 8(1);

“ registry account ” means an operator holding account ... in the Union Registry (and “open”, “blocked” , “excluded” or “closed” status, in relation to such an account, have the meanings given by Article 10 of the Registries Regulation 2013 );

“ regulated activity ” means an activity ... that—

“regulator” means the chief inspector;

“ the Renewable Energy Directive ” means DirectiveDirectives

“ reportable emissions ” means—

“ revocation notice ” has the meaning given by regulation 14(1);

“ scheme year ” means the year beginning with 1st January 2013 or any subsequent calendar year;

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“ specified emissions ”, in relation to an activity listed in Annex 1 to the Directive, means emissions of gases specified in Annex 1 in respect of that activity;

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“ surrender requirements ” has the meaning given by paragraph 2(4) of Schedule 4;

“ tonne of carbon dioxide equivalent ” has the meaning given in Article 3(j) of the Directive;

“ trading period ” means one of the following ... periods—

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...

“ the Union Registry ” means the registry established by Article 4 of the Registries Regulation 2013 ;

“ the UK Registry ” means the registry operated by the Environment Agency for the purposes specified in Article 3(1) of the Registries Regulation 2010 immediately before the coming into force of these Regulations;

“ variation ”, in relation to a permit or a plan, means the amendment of its provisions (and “vary” has the corresponding meaning);

“ the Verification Regulation ... ” 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/EC of the European Parliament and of the Council, as amended from time to time;

“ working day ” means any day other than—

“ written procedures ” means the written procedures required by Article 11(1) of the Monitoring and Reporting Regulation 2018 .

(1A) This paragraph applies if at any time before 10.59 pm on 29th March 2019 an enactment (“enactment 1”) has made provision, in any form, which has the effect that exit day, within the meaning of section 20(1) of the European Union (Withdrawal) Act 2018 (“the 2018 Act”), is to be a date after 29th March 2019.

(1B) This paragraph applies where—

(a) paragraph (1A) applies; and

(b) at any time on or after 10.59 pm on 29th March 2019 but before the 2018 surrender deadline which applies in relation to enactment 1, a subsequent enactment (“enactment 2”) has made provision, in any form, which has the effect that exit day, within the meaning of section 20(1) of the 2018 Act, is to be a date after the date provided for in enactment 1,

and in the event of an enactment subsequent to enactment 2, the references in sub-paragraph (b) to enactment 1 are to be read as references to enactment 2 and so on.

(1C) Where paragraph (1A) or paragraph (1B) applies—

(a) if exit day is a day falling before 1st May 2019, the 2018 surrender deadline is immediately before the UK ’s exit from the European Union; and

(b) if exit day is a day falling on or after 1st May 2019, the 2018 surrender deadline is 30th April 2019.

(2) The “operator” of an installation is the person who has control over its operation; but where—

(a) an installation has not been put into operation, the operator is the person who will have control over the operation of the installation when it is put into operation;

(b) an installation that is not an Article 27a installation has ceased operation, the operator is the person who holds the permit relating to the installation; ...

(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

(c) the holder of a permit has ceased to have control of the installation to which it relates, the operator is that permit holder.

(3) For the purposes of these Regulations, an installation has ceased operation if—

(a) a regulated activity is no longer being carried out at the installation; and

(b) it is technically impossible to resume operation.

(5) References in these Regulations to anything taking effect (or ceasing to have effect) on a particular date are to be read as references to it taking effect (or ceasing to have effect) as from the beginning of that date.

Application to the Crown etc.

4.Schedule 1 (application to the Crown etc.) has effect.

Notices etc.

5.Schedule 2 (notices etc.) has effect.

Applications etc.

6.Schedule 3 (applications etc.) has effect.

Functions of the regulator: Northern Ireland

7.—(1) Regulation 8(4) of the Northern Ireland Regulations (delegation of functions) has effect as if the reference to the chief inspector's functions included a reference to the chief inspector's functions under these Regulations.

(2) Regulation 40(1) of the Northern Ireland Regulations (power of the Department to give directions) has effect as if the reference to functions under those Regulations included a reference to functions under these Regulations.

(3) Any direction of the Department of the Environment that is given by virtue of paragraph (2) must be published in such manner as the Department of the Environment considers appropriate.

Commission Regulations: designations

8.—(1)DAERA is the national administrator designated by the United Kingdom for the purposes of the Registries Regulation 2019 , and in these Regulations is referred to in that capacity as the “registry administrator”.

(2) Subject to paragraph (3), the regulator is the competent authority designated by the United Kingdom for the purposes of the Registries Regulation 2019 (other than for Articles 22(3) and 30(7)) .

(3)DAERA is the competent authority so designated for the purposes of—

(a) Article 28(1);

(b) Article 30(8);

(c) Article 30(11); and

(d) Article 66(1).

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) The regulator is the competent authority designated by the United Kingdom for the purposes of the Monitoring and Reporting Regulation 2018.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8) ... The regulator is the competent authority designated by the United Kingdom for the purposes of the Verification Regulation.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 2 Stationary installations

CHAPTER 1 Permits

Requirement for permit to carry out regulated activities

9.—(1) No person may carry out a regulated activity at an installation except to the extent authorised by a permit held by the operator of the installation.

(2) Paragraph (1) does not apply in relation to a person carrying out a regulated activity at an Article 27a installation.

Applications for and grant of permits

10.—(1) The operator of an installation (other than an excluded installation) may apply to the regulator for a greenhouse gas emissions permit to carry out a regulated activity at the installation.

(2) The operator of an Article 27 installation may apply to the regulator for an Article 27 installationemissionspermit to carry out a regulated activity at the installation.

(3) However, an application may not be made—

(a) under paragraph (1) or (2) where a permit has already been granted in respect of the installation and continues to have effect; or

(b) under paragraph (2) where an Article 27 installationemissionspermit has been granted in respect of the installation and has been surrendered or revoked.

(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) Following an application under paragraph (1) or (2), the permit must be granted if the regulator is satisfied that—

(a) the application is duly made, and

(b) at the time that the permit is granted (or, if later, has effect) the applicant will be capable of monitoring and reporting emissions from the installation in accordance with—

(i) the monitoring and reporting requirements of the greenhouse gas emissions permit, or

(ii) the monitoring and reporting conditions of the Article 27 installationemissionspermit,

but must otherwise be refused.

(5) A permit may be granted under this regulation in respect of more than one installation on the same site, provided that they are operated by the same operator.

(6) Paragraph 1 of Schedule 4 makes further provision about applications for permits.

(7) Paragraph 2 of Schedule 4 makes provision about the contents of greenhouse gas emissions permits, and paragraph 3 of Schedule 5 makes provision about the contents of Article 27 installationemissionspermits.

Review, variation and consolidation of permits

11.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The regulator may, by giving notice to the operator, vary a permit at any time and may in particular make any variation of the permit that the regulator considers necessary in consequence of—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any report made by the operator under Article 69 of the Monitoring and Reporting Regulation 2018 ; or

(c) any notification as mentioned in paragraph 2(7)(b) of Schedule 4 (notification of planned changes in operation etc ).

(3) The regulator may by giving notice to the operatorvary a permit where the operator—

(a) applies to the regulator for such a variation pursuant to a provision of the permit; or

(b) has failed to comply with a requirement of the permit to apply for such a variation.

(4) The regulator may by giving notice to the operatorvary a permit in order to comply with regulator's duty under—

(a) regulation 88(2) or (4) ; or

(b) any of the following provisions of Schedule 5—

(i) paragraph 2(1);

(ii) paragraph 3(3);

(iii) paragraph 6(5) or (6);

(iv) paragraph 7(4)(b), (6)(b) or (7)(b);

(v) paragraph 8(6) or 8(6A) .

(5) A notice given under paragraph (2), (3)(b) or (4) may specify a period within which a fee for the variation of the permit must be paid.

(6) The regulator may by giving notice to the operator replace a permit with a consolidated permit applying to the same regulated activities, and containing the same or equivalent provisions, in the following circumstances—

(a) where the permit has been varied;

(b) where there is more than one permit applying to installations on the same site operated by the same operator.

Transfer of permits

12. —(1) Subject to paragraph (6), the holder of a permit (“the current operator”) and another person may jointly apply to the regulator for the permit to be transferred to that other person (“the new operator”).

(2) An application may also be made under paragraph (1) for the partial transfer of a permit; and for that purpose a “partial transfer” is a transfer in respect of—

(a) some only of the installations to which the permit relates; or

(b) some only of the parts of an installation to which the permit relates.

(3) Paragraph 3 of Schedule 4 makes further provision about the transfer, or partial transfer, of a permit.

(4) ... An application under paragraph (1) must be granted if the regulator is satisfied that—

(a) the application is duly made, and

(b) the new operator will (from the relevant date) be the operator of the installation and will be capable of monitoring and reporting emissions from the installation in accordance with—

(i) the monitoring and reporting requirements of the greenhouse gas emissions permit, or

(ii) the monitoring and reporting conditions of the Article 27 installationemissionspermit,

but must otherwise be refused.

(5) For the purposes of paragraph (4), the relevant date is the date mentioned in paragraph 3(6), (8) or (10) of Schedule 4 as the case may be.

(6) An application for the transfer (or partial transfer) of a permit may not be made in respect of any installation (or part of an installation) that has ceased operation.

Transfer of permits: underreporting discovered after transfer

12A.—(1) This regulation applies where—

(a) after the transfer of a greenhouse gas emissions permit under regulation 12 takes effect, the regulator becomes aware, following a determination of reportable emissions under regulation 44, of an error in a report submitted for a scheme year by the transferring operator under the monitoring and reporting requirements of the permit; and

(b) as a result of the error, the transferring operator failed to comply with the surrender requirements of the permit in respect of the scheme year to which the error relates.

(2) The regulator must give notice to the transferring operator of the error as soon as reasonably practicable.

(3) The transferring operator must, within the period of one month beginning with the date the transferring operator received the notice, effect a transfer to the new operator of allowances equal to the reportable emissions in respect of which, as a result of the error, the transferring operator failed to comply with the surrender condition of the permit.

(4) The new operator must surrender the allowances within the period of one month beginning with the date of the transfer of the allowances.

(5) In paragraph (1), the reference to the transfer of a permit under regulation 12 includes a reference to an application for a transfer of a permit to which effect is given by a variation of the new operator’s existing permit.

(6) In this regulation—

(a) “transferring operator” means the person who was the current operator for the purposes of regulation 12; and

(b) “new operator” has the same meaning as in regulation 12.

Surrender of permits

13.—(1) Subject to paragraph (4), if an installation has ceased operation the operator must apply to the regulator to surrender the permit authorising regulated activities at the installation.

(1A) Where a permit authorises regulated activity to be carried out at an installation where a regulated activity is no longer being carried out but it is not technically impossible to resume operation, the operator of the installation may apply to the regulator to surrender the permit.

(2) An application under paragraph (1) must be made before the end of the period of one month beginning with the date that the regulated activities at the installation ceased, or such later date as may be agreed with the regulator.

(4) The application need not be made where—

(a) the permit authorises regulated activities at more than one installation, some of which have not ceased operation; and

(b) by the end of the period mentioned in paragraph (2), the operator has applied to vary that permit so that it no longer applies to any of those installations that have ceased operation.

(5) Where the carrying out of regulated activities at an installation mentioned in paragraph (6) has been suspended, but the installation has not ceased operation, the operator may at any time make an application under paragraph (1) but is not obliged to do so.

(6) Those installations are—

(a) an Article 27 installation; or

(b) an installation that, by virtue of Article 10a(3) of the Directive, is not eligible for an allocation.

(7) If the application under paragraph (1) is granted, the notice of determination given to the operator (“notice of surrender”) takes effect on the date specified in the notice.

(8) Paragraph 4 of Schedule 4 makes further provision about the surrender of permits.

Revocation of permits

14.—(1) The regulator—

(a) may at any time revoke a permit by serving on the operator a notice to that effect (a “revocation notice”), and in particular may do so if the operator has failed to pay a fee for the subsistence of the permit; and

(b) must do so where—

(i) the regulator becomes aware that the operator has failed to comply with regulation 13(1) and (2);

(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.

(2) A revocation notice takes effect—

(a) 28 days after the date on which it is served; or

(b) if a later date is specified in the notice, on that date.

(3) Paragraph 5 of Schedule 4 makes further provision about the revocation of permits.

CHAPTER 2 Excluded installations: further provision

Excluded installations : Article 27 installations

15.—(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 to the operator under paragraph 8(1) or (4) of Schedule 5 (in which case the installation ceases to be an Article 27 installation as from the date specified in the notice).

(B1) An installation's status as an Article 27 installation expires at the end of the particular allocation period in relation to which it has been excluded.

(C1) Where an installation ceases to be an Article 27 installation at the end of the first allocation period in accordance with paragraph (B1) and approval is not deemed in accordance with paragraph (A1) in respect of the second allocation period, paragraph 8(6A) of Schedule 5 applies.

(1) Schedule 5 makes further provision about Article 27 installations.

(2) Subject to paragraphs (3) and (4), and unless a contrary intention appears, these Regulations apply to an Article 27 installation as they apply to an installation that is not an excluded installation.

(3) The following provisions do not so apply—

(a) regulation 12(2); ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) The following provisions so apply—

(a) paragraph 4 of Schedule 4, but as if—

(i) any reference in that paragraph to the monitoring and reporting requirements of the greenhouse gas emissions permit were a reference to the monitoring and reporting conditions of the Article 27 installationemissionspermit; and

(ii) sub-paragraph (1)(c) and sub-paragraphs (2)(b)(ii), (3), (4) and (6) to (8) were omitted;

(b) paragraph 5 of Schedule 4, but as if—

(i) any reference in that paragraph to the monitoring and reporting requirements of the greenhouse gas emissions permit were a reference to the monitoring and reporting conditions of the Article 27 installationemissionspermit; and

(ii) sub-paragraph (1)(c) and sub-paragraphs (3)(b)(ii), (4), (5) and (7) to (9) were omitted.

Excluded installations: Article 27a installations

15A.—(1) An installation is an Article 27a installation for the duration of a particular allocation period, if, in relation to that period, the installation is excluded pursuant to Article 27a of the Directive, unless a notice has been given to the operator under paragraph 5(1) of Schedule 5A (in which case the installation ceases to be an Article 27a installation as from the date specified in the notice).

(2) An installation's status as an Article 27a installation expires at the end of the particular allocation period in relation to which it is excluded.

(3) Schedule 5A makes further provision about Article 27a installations.

CHAPTER 3 Allocation of allowances

Allocation of allowances for 2013 to 2020

16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 4 Offshore installations

Powers of entry

17. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charging schemes

18. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Charging schemes: supplementary

19. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 3 Aviation

CHAPTER 1 General

Interpretation

20. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Civil Aviation Authority

21. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 2 UK administered operators, UK aircraft operators and regulators

UK administered operators: power to designate

22. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application to be designated as a UK administered operator

23. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Transfers of operators between member States

24. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Gibraltar operators

25. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

UK aircraft operators

26. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulators: general

27. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulators: assessment of emissions

28. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulators: change in registered office

29. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 3 Allocation of aviation allowances

Allocation of aviation allowances

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 4 Monitoring and reporting aviation emissions

Interpretation

31. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application for an emissions plan by a UK administered operator

32. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application for an emissions plan by a UK administered operator: activities during 2015 to 2023

32A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application for an emissions plan by a UK administered operator: post-2023 activities

32B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application for an emissions plan by a UK administered operator: general

32C. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirement to notify the regulator if an emissions plan is not applied for before 1st January 2015

33. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Requirement to notify the regulator if an emissions plan is not applied for on or after 1st January 2015

33A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Issue of an emissions plan

34. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Monitoring and reporting emissions

35. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Emissions plan conditions

36. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Variation of an emissions plan

37. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Variation of a benchmarking plan

38. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHAPTER 5 Sanctions (other than civil penalties)

Detention and sale of aircraft

39. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Aircraft operating bans

40. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 4 Surrender of allowances

Surrender of allowances: operators of installations

41. For each scheme year, the operator of an installation must surrender allowances in accordance with the surrender requirements of the permit for the installation.

Surrender of allowances: UK aircraft operators

42. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surrender of allowances: UK aircraft operators: 2013, 2014 and subsequent scheme years

42A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surrender of a deficit of allowances: UK administered operators

42B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 5 Enforcement etc.

Enforcement notices

43.—(1) Where the regulator considers that a person (“P”) has contravened, is contravening, or is likely to contravene a relevant provision, the regulator may serve a notice (“enforcement notice”) on P.

(2) For the purpose of paragraph (1), a “relevant provision” is any provision of—

(a) these Regulations;

(b) the Monitoring and Reporting Regulation 2018 ;

(c) a permit; ...

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An enforcement notice must—

(a) state the regulator's view under paragraph (1);

(b) specify the matters constituting the contravention or making a contravention likely;

(c) specify the steps that must be taken to remedy the contravention or to ensure that the likely contravention does not occur; and

(d) specify the period within which those steps must be taken.

(4) P must comply with the requirements of the notice within the period so specified.

(5) The regulator may withdraw an enforcement notice at any time by further notice served on P.

Power to determine reportable emissions

44.—(1) A power of the regulator to make a conservative estimate of emissions in accordance with Article 70 of the Monitoring and Reporting Regulation 2018 (a “determination of emissions”) may also be exercised where—

(a) an operator fails to comply with the requirement to submit—

(i) a surrender report in accordance with paragraph 4(1)(a) and (b) of Schedule 4; or

(ii) a revocation report in accordance with paragraph 5(1)(a) and (b) of Schedule 4;

(b) an operator has failed to satisfy the regulator as required pursuant to paragraph 2(3)(c) of Schedule 4 or paragraph 3(8)(c) of Schedule 5; or

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) the regulator considers that such a determination is necessary for the purpose of imposing, or considering whether to impose, a penalty under Part 7.

(2) In the case referred to in paragraph (1)(b), in making the determination the regulator may substitute an emissions factor of greater than zero for the factor reported in respect of the bioliquids concerned.

(3) The regulator may make a determination of emissions where—

(a) the operator has failed to submit a report as required pursuant to paragraph 3(8)(b) of Schedule 5; or

(b) the regulator has reason to believe that the report submitted is incorrect.

(4) A determination of emissions—

(a) must be notified to the operator ... concerned; and

(b) except where paragraph (5B) applies to that determination, is to be treated as determining all of the reportable emissions from the installation ... for the period to which the determination relates.

(5) A notice under paragraph (4) or under paragraph (5C)(a) —

(a) except where it relates to an Article 27 installation, must be served on the registry administrator (and is in that case to be regarded as an instruction to the registry administrator for the purposes of Article 31(6) of the Registries Regulation 2019 ); and

(b) must, where required by Article 70(2) of the Monitoring and Reporting Regulation 2018 , specify the corrections that are required to the verified report mentioned ... in paragraph 2(3)(b) of Schedule 4.

(5A) Paragraph (5B) applies where –

(a) a determination of emissions has been notified to the operator ... under paragraph (4); and

(b) the regulator is satisfied that there is a defect in the estimate of the reportable emissions in that determination.

(5B) The regulator must withdraw the determination and make a further determination of emissions (the “rectified determination”).

(5C) A rectified determination—

(a) must be notified to the operator ... concerned; and

(b) is to be treated as determining all of the reportable emissions from the installation ... for the period to which the determination relates.

(5D) Where—

(a) any rectified determination is notified to the operator ... concerned; and

(b) the regulator is satisfied that there is a defect in the estimate of the reportable emissions in that determination,

the regulator must withdraw the rectified determination and make one or more further rectified determinations.

(6) A regulator who makes a determination of emissions under the Monitoring and Reporting Regulation 2018 , or by virtue of this regulation, may recover the cost of doing so from the operator ... concerned.

PART 6 Information

Provision of information

45.—(1) An authority ... may, by notice served on a regulator (“R”), require R to furnish such information about the discharge of R's functions as the authority ... may require.

(2) For the purposes mentioned in paragraph (4), an authority, the Secretary of State, the registry administrator, the KP registry administrator or a regulator (a “relevant body”) may, by notice served on any person, require that person (“P”) to furnish such information as is specified in the notice, in such form and within such period following service of the notice or at such time as is so specified.

(3) The information which P may be required to furnish by a notice under paragraph (2) includes information, which, although it is not in P's possession or would not otherwise come into P's possession, is information which it is reasonable to require P to compile for the purpose of complying with the notice.

(4) The purposes referred to in paragraph (2) are—

(a) the discharge of the relevant body's functions; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) In this regulation, “ functions ” means functions under or by virtue of—

(a) these Regulations;

(b) the Monitoring and Reporting Regulation 2018 ;

(c) the Verification Regulation;

(d) the Registries Regulation 2010; ...

(e) the Registries Regulation 2013 ; or

(ea) the Registries Regulation 2019

Disclosure of information

46.—(1) Subject to paragraph (2) a relevant body (within the meaning of regulation 45(2)) must not disclose or publish any information provided to the relevant body under these Regulations except where—

(a) disclosure or publication is—

(i) required in these Regulations or otherwise by law;

(ii) necessary for the performance of the relevant body's functions (as defined by regulation 45(6)); or

(iii) made with the consent of the person by or on behalf of whom the information was provided; or

(iv) necessary for the performance of the Environment Agency’s functions in England under the Emissions Performance Standard Regulations 2015; or

(iv) necessary for the performance of the NRBW’s functions in Wales under the Emissions Performance Standard (Enforcement) (Wales) Regulations 2015.

(v) necessary for the performance of the chief inspector’s functions in Northern Ireland under the Emissions Performance Standard Monitoring and Enforcement Regulations (Northern Ireland) 2016; or

(b) disclosure is between one relevant body and another.

(2) The Secretary of State may use any information held or obtained for the purposes of these Regulations, and may share such information with other government bodies, for the purpose of preparing and publishing national energy and emissions statistics, including the preparation and publication of a national inventory.

(3) For the purpose of paragraph (2), “ national inventory ” means the estimation, under Article 4(1)(a) of the United Nations Framework Convention on Climate Change , of anthropogenic emissions of greenhouse gases by sources and removals of all greenhouse gases by sinks not controlled by the Montreal Protocol.

National security

47.—(1) No information may be published—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) by the regulator under regulation 71,

if, in the opinion of the Secretary of State, the publication of that information would be contrary to the interests of national security.

(2) For the purposes of paragraph (1)(b), the Secretary of State may give to the regulator directions specifying information which may not be published under regulation 71.

(3) The regulator must notify the Secretary of State of any information which is excluded from publication in accordance with directions under paragraph (2).

PART 7 Civil Penalties

Interpretation

48. In this Part—

“ carbon price ”, in relation to a tonne of carbon dioxide equivalent, is the price referred to in regulation 49;

“ penalty notice ” means a notice served under regulation 50(1);

“ additional penalty notice ” means a notice served under regulation 50(3).

Carbon Price

49.—(1) In respect of the scheme year beginning with 1st January 2013, the carbon price is £6.70.

(2) From the scheme year beginning with 1st January 2021, and for each subsequent scheme year, DAERA must determine a price as the carbon price for that year, based on the sterling equivalent of the average end of day settlement price (in Euro per tonne of carbon dioxide equivalent) of the December futures contracts for that scheme year.

(3) For that purpose—

“ average end of day settlement price ” means the average over the 12 months ending with the relevant date;

“ futures contract ” means the futures contract as traded on the single largest carbon market exchange (as determined by volume of sales in the 12 months ending with the relevant date);

“ sterling equivalent ” means the sterling equivalent converted by reference to the Bank of England annual average spot exchange rate for the 12 months ending with the relevant date;

“ the relevant date ”, in relation to the year for which the carbon price is set, is 11th November in the preceding year.

(4)DAERA must publish a determination made under paragraph (2) one month before the beginning the scheme year in question.

Penalty notices

50.—(1) Where the regulator is satisfied that a person (“P”) is liable to a civil penalty under this Part the regulator must (subject to regulation 51) serve a notice on P.

(2) The penalty notice must specify—

(a) the regulation under which that liability arises;

(b) the amount of the civil penalty due;

(c) where appropriate, how that amount is calculated;

(d) whether or not P may be liable to a civil penalty in accordance with regulation 53(3)(b), 56(2)(b) , 68(2)(b), or 69(2)(b) (an “additional daily penalty”); and

(e) if P will not be liable to an additional daily penalty, the date by which the penalty for which P is liable must be paid.

(3) Subject to regulation 51 ..., where the regulator is satisfied that P is liable to an additional daily penalty the regulator must, when the amount of that additional daily penalty can be determined, serve a notice on P specifying—

(a) the total amount of the civil penalties due; and

(b) the date by which that amount must be paid.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) A civil penalty imposed by a penalty notice or an additional penalty notice must be paid to the regulator by the date specified in the notice.

(6) Any such civil penalty is recoverable by the regulator—

(a) as a civil debt; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) the regulator must, as soon as is reasonably practicable—

(a) give notice to the authority of the service of any penalty notice or additional penalty notice; and

(b) pass to the authority any civil penalty that has been paid to the regulator.

Discretion in imposing civil penalties

51. —(1) Where the regulator considers it appropriate to do so, the regulator may (subject to paragraph (2))—

(a) refrain from imposing a civil penalty;

(b) reduce the amount of a penalty (including the amount of an additional daily penalty);

(c) extend the time for payment specified in the penalty notice or additional penalty notice;

(d) withdraw a penalty notice or an additional penalty notice;

(e) modify the notice by substituting a lower penalty.

(2) The powers under paragraph (1) do not apply in relation to any penalty arising under regulation 54(1).

Carrying out a regulated activity contrary to regulation 9

52. —(1) Where in any scheme year a regulated activity is carried out that is not authorised by a permit, contrary to regulation 9, the operator of the installation (“P”) is at the end of that year liable to the civil penalty in paragraph (2).

(2) Subject to paragraph (3), for each such year, the civil penalty is A + (B × C), where—

• A is the estimated amount of the costs avoided by P in that year as a result of carrying out a regulated activity without such authorisation;

• B is the estimated amount of reportable emissions from the installation in the period during which a regulated activity was carried out without such authorisation;

• C is the carbon price for that year.

(2A) In paragraph (2), the reference to “ costs ” includes a reference to carbon emissions tax.

(3) In imposing the penalty under paragraph (2), the regulator may increase the amount determined under that paragraph by a percentage designed to ensure that the penalty exceeds the amount of any economic benefit that P has obtained as result of the failure to comply with regulation 9.

(4) The authority must exercise powers under ... regulation 40 of the Northern Ireland Regulations to give the regulator directions as to—

(a) the estimation by the regulator of A and B in paragraph (2); and

(b) the exercise of the regulator's powers under paragraph (3).

Failure to comply with a condition of a permit

53.—(1) An operator is liable to the civil penalties in paragraph (3) where the operator fails to comply (or comply on time) with a condition of a permit included pursuant to—

(a) paragraph 2(1)(e)(ii) or (iv) of Schedule 4 ...;

(b) paragraph 3(1)(g), (h) or (i) of Schedule 5; or

(c) regulation 10 of the 2005 Regulations, other than regulation 10(3) and (4) (or such a condition as modified by virtue of regulation 88 of these Regulations).

(2) However, an operator is not liable to those civil penalties where the failure to comply gives rise to a penalty under regulation 57.

(3) The civil penalties are—

(a) £20,000 ; and

(b) £500 for each day that the operator fails to comply with the condition following service of a penalty notice, up to a maximum of £45,000 .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to transfer or surrender allowances where underreporting discovered after transfer

53A.—(1) A person is liable to a civil penalty where the person fails—

(a) to effect a transfer (or to effect a transfer on time) of allowances, contrary to regulation 12A(3) (transfer of permits: underreporting discovered after transfer);

(b) to surrender (or to surrender on time) allowances, contrary to regulation 12A(4).

(2) The civil penalty is the sterling equivalent of 20 Euros for each allowance that the person failed to transfer or surrender.

Failure to surrender allowances

54. —(1) A person (“P”) is liable to the civil penalty in paragraph (2) where P fails to surrender sufficient allowances, contrary to regulation 41 ....

(2) The civil penalty (“excess emissions penalty”) is the sterling equivalent of 100 Euros for each allowance that P failed so to surrender.

(2A) Any—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) deemed increase in an installation's annual reportable emissions in a recovery year pursuant to paragraph 2(5) of Schedule 4,

must be disregarded for the purpose of calculating the excess emissions penalty.

(3) But paragraph (1) is subject to paragraphs (4) to (6).

(4) Where paragraph (5) applies, P is not liable to the excess emissions penalty for a failure to surrender allowances in respect of those reportable emissions in a scheme year exceed P's verified annual reportable emissions for that year .

(5) This paragraph applies where—

(a) the regulator becomes aware that P's annual reportable emissions in a scheme year exceed P's verified annual reportable emissions in respect of that year; and

(b) P failed to surrender a number of allowances equal to the unreported emissions by 30th April in the following scheme year.

(6) Where paragraph (5) applies, P is liable to the civil penalty of the sterling equivalent of 20 Euros for each allowance that P failed to surrender in respect of the unreported emissions ....

(7) In this regulation—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) “ unreported emissions ” means the emissions mentioned in paragraph (4);

(ca) “ verified annual reportable emissions ” means annual reportable emissions that are—

(i) verified pursuant to ... paragraph 2(3)(b) of Schedule 4;

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . or

(iii) determined by the regulator pursuant to regulation 44;

(d) “ sterling equivalent ” means, subject to paragraph (8), the sterling equivalent converted by reference to the applicable rate of conversion; and

(e) for that purpose the applicable rate is the first rate of conversion to be published in September of the year preceding the scheme year in which P is liable to the penalty in the C series of the Official Journal of the European Union, adjusted in accordance with paragraph (8).

(8) If the last Harmonised Index of Consumer Prices for the member States of the European Union (“HICP”) published by Eurostat before the end of April in the year in which P failed to surrender the allowances shows an average percentage price increase as compared with the last HICP published before the end of April 2012, the sterling equivalent is increased by the same percentage.

(9) Where—

(a) a person was liable to a civil penalty under this regulation for a failure to surrender a number of allowances equal to the unreported emissions in any relevant year; and

(b) a penalty notice has not been served in respect of that penalty,

the provisions of paragraphs (4) to (7) apply in respect of such emissions.

(10) In paragraph (9), “ relevant year ” means a scheme year during the years 2013 to 2018.

Exceeding an emissions target for an Article 27 installation

55. —(1) An operator of an Article 27 installation is liable to the civil penalty in paragraph (2) where in any scheme year the operator fails to comply with paragraph 5 of Schedule 5.

(2) The civil penalty is (A – B) × C, where—

• A is the amount of annual reportable emissions arising in the scheme year;

• B is the emissions target for that year;

• C is the carbon price for that year.

Failure to pay a penalty for exceeding an emissions target for an Article 27 installation

56.—(1) An operator of an Article 27 installation is liable to the civil penalties in paragraph (2) where the operator fails to pay a penalty imposed under regulation 55 by the date specified in the penalty notice.

(2) The civil penalties are—

(a) 10% of the penalty imposed under regulation 55; and

(b) £150 for each day that the operator fails to pay that penalty following service of a penalty notice in respect of the penalty under sub-paragraph (a), up to a maximum of £13,500.

Under-reporting of emissions from an Article 27 installation

57. —(1) An operator of an Article 27 installation is liable to the civil penalty in paragraph (2) where there are reportable emissions in a scheme year (“the unreported emissions”) that—

(a) were not reported in the report submitted for that year under paragraph 3(8)(b) of Schedule 5; but

(b) have been determined by the regulator under regulation 44(3).

(2) The civil penalty is A + (B × C) where—

• A is £5,000 ;

• B is the amount of the unreported emissions;

• C is the carbon price for that year.

Failure to notify when an Article 27 installation ceases to meet the criteria for being Article 27

58. —(1) An operator of an Article 27 installation (“P”) is liable to the civil penalties in paragraphs (2) and (3) where P fails to comply (or comply on time) with a notification requirement under—

(a) a condition of a permit included pursuant to paragraph 3(4) or (5) of Schedule 5; or

(b) paragraph 4(1) or (2) of Schedule 5.

(2) For the first scheme year in which P fails to comply with the requirement to notify by 31st March in that year, the civil penalty is £2,500.

(3) For the first and each subsequent scheme year in which P has still failed to comply with the notification requirement by 31st October in that year, P is at the end of the following scheme year (“S”) liable to the civil penalty in paragraph (4).

(4) The civil penalty is 2 × (A + B), where—

• A is £2,500;

• B is the avoided compliance costs.

(5) In paragraph (4) “ avoided compliance costs ” means ((W – X) × Y) – Z, where—

• W is the amount of annual reportable emissions arising in S;

• X is the number of allowances for S to which P would have been entitled in accordance with Article 10a of the Directive, if the installation had not been an Article 27 installation and had been carrying out regulated activities;

• Y is the carbon price for S;

• Z is any penalty due under regulation 55 in respect of S.

Exceeding the maximum amount for an Article 27a installation

58ZA.—(1) The operator of an Article 27a installation is liable to the civil penalty in sub-paragraph (2) where in any scheme year the installation exceeds the maximum amount.

(2) The civil penalty is (A – B) x C, where—

A is the reportable emissions arising in the scheme year; B is the maximum amount; C is the carbon price for that year.

(3) In this regulation, “ maximum amount ” has the meaning given in paragraph 1(a) of Schedule 5A.

Carrying out regulated activity without the necessary permit

58ZB.—(1) Where the regulator is satisfied that the operator of an Article 27a installation has—

(a) exceeded the maximum amount in any scheme year; and

(b) failed to notify the regulator under paragraph 4(1) of Schedule 5A,

the operator of the installation (“P”) is subject to the civil penalty in paragraph (2) in respect of any penalty year.

(2) Subject to paragraph (3), the civil penalty is A + (B x C), where— A is the estimated amount of the costs avoided by P in any penalty year as a result of carrying out a regulated activity without the necessary permit; B is the estimated amount of reportable emissions from the installation in the period during which a regulated activity was carried out without the necessary permit; C is the carbon price for that penalty year.

(3) In imposing the penalty under paragraph (2), the regulator may increase the amount determined under that sub-paragraph by a percentage designed to ensure that the penalty exceeds the amount of any economic benefit that P has obtained as a result of carrying out a regulated activity without the necessary permit.

(4) The authority must exercise powers under regulation 40 of the Northern Ireland Regulations to give the regulator directions as to—

(a) the estimation by the regulator of A and B in paragraph (2); and

(b) the exercise of the regulator's powers under paragraph (3).

(5) In this regulation—

(a) “ maximum amount ” has the meaning given in paragraph 1(a) of Schedule 5A;

(b) “ necessary permit ” means the Article 27 installation emissions permit or the greenhouse gas emissions permit which P would have been required to comply with under paragraph 5(3) or (4) of Schedule 5A if P had not failed to notify the regulator under paragraph 4(1) of that Schedule;

(c) “ penalty year ” means any scheme year during which P would have been required to comply with the conditions of the necessary permit, if P had not failed to notify the regulator under paragraph 4(1) of Schedule 5A.

Failure to notify when an excluded installation has had a significant capacity reduction or partial cessation of regulated activities

58A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to notify when the operator of an excluded installation has suspended the carrying out of regulated activities at the installation

58B. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to surrender a permit

59. Where an operator fails to make an application to surrender a permit, contrary to regulation 13(1) and (2), the operator is liable to a civil penalty of £5,000.

Failure to submit or resubmit an application for an emissions plan

60. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to notify the regulator if an emissions plan is not applied for

61. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to comply with a condition of an emissions plan

62. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to monitor aviation emissions

63. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to report aviation emissions

64. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to provide assistance and advice

65. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to comply with a direction relating to an operating ban

66. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to return allowances

67. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Failure to comply with an enforcement notice

68. —(1) A person (“P”) is liable to the civil penalties in paragraph (2) where P fails to comply (or to comply on time) with the requirements of an enforcement notice, contrary to regulation 43(4).

(2) The civil penalties are—

(a) £20,000; and

(b) £1,000 for each day that P fails to comply with the requirements of the enforcement notice, following service of a penalty notice, up to a maximum of £30,000.

Failure to comply with an information notice

69.—(1) A person (“P”) is liable to the civil penalties in paragraph (2) where P fails to comply (or to comply on time) with the requirements of a notice served under regulation 45(2) (an “information notice”).

(2) The civil penalties are—

(a) £5,000 ; and

(b) £500 for each day that P fails to comply with the requirements of the information notice, following service of a penalty notice, up to a maximum of £45,000 .

Providing false or misleading information

70.—(1) A person (“P”) is liable to the civil penalty in paragraph (2) where P provides false or misleading information, or makes a statement which is false or misleading in a material particular, where the statement is made or the information is provided—

(a) in any application made under these Regulations, or in response to a notice served under paragraph 1(12) of Schedule 3;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) in response to a notice served under regulation 45(2);

(e) pursuant to a requirement mentioned in regulation 80(2) or (4);

(f) in purported compliance with the conditions of a permit ...; ...

(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) The civil penalty is £50,000 .

Publication of names of persons subject to penalties under regulation 54(1)

71. —(1) As soon as possible after—

(a) the expiry of the period for appealing the imposition of a penalty by the regulator under regulation 54(1), or

(b) if such an appeal is made, the determination or withdrawal of the appeal,

the regulator must (subject to paragraph (2)) publish the name of the person on whom that penalty was imposed.

(2) The name must not be published if, following such an appeal, the person is found not to be liable to any of the penalty imposed under regulation 54(1).

(3) Paragraph (1) is subject to regulation 47 (national security).

PART 8 Appeals

CHAPTER 1 General

Interpretation

72. In this Part—

(a) “ appeal body ” has the meaning given by regulation 75;

(b) “ decision ” means—

(i) a notice or deemed refusal under these Regulations; or

(ii) an action or decision of the registry administrator or the KP registry administrator;

(c) “ notice ” includes—

(i) in the case of a notice determining an application for a permit or the transfer of the permit, the provisions of any permit attached to the notice; ...

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Rights of appeal

73.—(1) Subject to paragraph (3), the following persons may appeal to the appeal body—

(a) a person who is aggrieved by a decision determining any application made by them under these Regulations;

(b) a person who is aggrieved by a notice served on them or notification given to them under any provision mentioned in paragraph (2).

(2) Those provisions are—

(a) regulation 11(2), (3)(b) or (4);

(b) regulation 14(1);

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) regulation 43(1);

(f) regulation 44(4);

(g) regulation 45(2);

(h) regulation 50(1) or (3);

(i) paragraph 8(1) or (4) of Schedule 5;

(j) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(k) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(l) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(m) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(n) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(na) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(nb) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(nc) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(nd) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ne) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(o) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) An appeal under paragraph (1) may not be made to the extent that the decision implements—

(a) a direction given by the authority under ... regulation 40 of the Northern Ireland Regulations , or

(b) a direction given by an appeal body under these Regulations.

Rights of appeal: registries

74.—(1) A person who is aggrieved by a decision of the registry administrator or KP registry administrator referred to in a provision of the Registries Regulation 2019 mentioned in paragraph (2) may exercise the right to object given by that provision by appealing to the appeal body.

(2) Those provisions are—

(a) Article 19(4);

(b) Article 21(6);

(c) Article 22(3);

(d) Article 28(5);

(e) Article 30(7);

(f) Article 80(8).

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) On receiving notice under regulation 80(10), the account holder may appeal to the appeal body against the decision to set a registry account to blocked status.

Appeal body

75.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In the case of an appeal against a decision of the chief inspector or the registry administrator , the appeal body is the Planning Appeals Commission.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Effect of an appeal

76.—(1) Subject to paragraphs (2) and (3) , the bringing of an appeal under regulation 73 suspends the effect of the decision pending the final determination or withdrawal of the appeal.

(2) The bringing of an appeal does not suspend the effect of—

(a) a decision refusing an application;

(b) a deemed refusal;

(c) a notice or notification under—

(i) regulation 11(2), (3)(b) or (4);

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) regulation 43(1);

(iv) paragraph 8(1) or (4) of Schedule 5; ...

(v) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(vi) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Where (following an application for a permit or for the transfer of a permit) a permit has been granted or varied, the bringing of an appeal against the provisions of the permit or the terms of the variation does not suspend the effect of those provisions or terms.

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) The bringing of an appeal against a determination of emissions under regulation 44(4) suspends the effect of the decision only for the purpose of assessing whether there has been compliance with regulation 41 or 42.

(6) The bringing of an appeal under regulation 74 does not suspend the effect of the decision pending the final determination or withdrawal of the appeal.

Determination of an appeal

77.—(1) In determining an appeal under regulation 73(1) the appeal body may, subject to paragraph (3)—

(a) affirm the decision;

(b) quash the decision or vary any of its terms;

(c) substitute a deemed refusal with a decision of the appeal body; or

(d) give directions to the regulator as to the exercise of the regulator's functions under these Regulations.

(2) In determining an appeal under regulation 74, the appeal body may give directions to the registry administrator or the KP registry administrator as to the exercise of their functions under the Registries Regulation 2019 .

(3) The appeal body may not make a determination that would result in a decision which could not otherwise have been made under these Regulations or under the Registries Regulation 2019 .

CHAPTER 2 Appeals: ... Northern Ireland

Procedure for appeals

78.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Schedule 12 has effect in relation to the making and determination of an appeal to the Planning Appeals Commission.

PART 9 The Union Registry ...

Interpretation

79.—(1) In this Part, a reference to a numbered Article is to that Article of the Registries Regulation 2019 .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The Union Registry

80.—(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) It is the duty of the account holder to comply with the requirement to enter emissions data in accordance with Article 31(2) ; furthermore, an amount of zero must be entered by the account holder if the latter is—

(a) an operator who carried out no regulated activity in the year to which the data would relate; ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The verifier is responsible under Article 31(4) and (5) for—

(a) approving the annual verified emissions; and

(b) marking the emissions as verified.

(4) The operator ... is responsible for complying with the requirement under Article 14(1) to provide information to the registry administrator and request the opening of a registry account.

(5) In complying with the requirement mentioned in paragraph (4), the operator ... must provide such evidence of identity and address as may be required by the registry administrator.

(6) Where—

(a) an operator fails to comply with regulation 41, or

(b) a UK aircraft operator fails to comply with regulation 42,

the registry administrator must set the relevant registry account to blocked status until the compliance status figure for the installation or UK aircraft operator, calculated in accordance with Article 37 , is greater than or equal to zero.

(7) This paragraph applies where—

(a) an operator is required to submit a report to the regulator by the terms of a notice of surrender or a revocation notice; and

(b) the operator—

(i) fails to submit the report to the regulator within the time specified in the report;

(ii) submits an incomplete report to the regulator within the time so specified; or

(iii) submits within the time so specified a report to the regulator that cannot be verified in whole or in part in accordance with the monitoring and reporting requirements for the installation.

(8) Where paragraph (7) applies, the registry administrator must set the relevant operator holding account to blocked status until—

(a) the report has been prepared and verified in accordance with the requirements of paragraph 4(1)(b) or 5(1)(b) of Schedule 4 and has been submitted to the regulator; or

(b) the regulator has notified, in accordance with regulation 44(4)(a), a determination of the reportable emissions referred to in paragraph 4(1)(a) or 5(1)(a) of that Schedule.

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) Where the registry administrator sets a registry account to blocked status pursuant to paragraph (6), or (8) it must notify the account holder specifying the reason why, and the period during which, the relevant registry account will be blocked.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) The registry administrator must, as soon as is reasonably practicable, notify the European Commission in accordance with Article 52(2) or 55(2) of any changes to the allocation table or aviation allocation table (other than those falling within paragraph (11)(a)).

(13) This paragraph applies where—

(a) a notice of surrender or a revocation notice has been given and has taken effect; and

(b) the operator is unable to comply with the requirement to surrender allowances imposed by that notice by the date specified in the notice, due to the suspension of access to the relevant registry account by the registry administrator ....

(14) Where paragraph (13) applies, the registry administrator must, if so requested by the operator, surrender the number of allowances specified in the notice of surrender or the revocation notice.

(15) The registry administrator or the KP registry administrator may refuse to—

(a) open any account in the Union Registry or the UK Registry, or

(b) approve an authorised representative or an additional authorised representative in relation to such an account,

where it is not satisfied that the proposed account holder, authorised representative or additional authorised representative is ... a fit and proper person to hold such an account or, as the case may be, act as such a representative.

(16) The registry administrator may decide that national public holidays in Northern Ireland are not working days under Article 35(8) , provided that the decision to do so is published by the registry administrator by 1st December in the previous scheme year.

The UK Registry

81.—(1) The Environment Agency must continue to operate the UK Registry for the purposes of meeting the obligations of the United Kingdom referred to in Article 5(1) of the Registries Regulation 2013 (obligations as a Party to the Kyoto Protocol and under Article 6 of Decision No 280/2004/ EC ), and in that capacity is referred to in these Regulations as the “ KP registry administrator ”.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 10 Supplementary

Recovery of fees

82. Any fee payable by virtue of these Regulations may be recovered by the regulator as a civil debt.

Consequences of non-payment

83. The regulator is not required to perform a function for which a fee is payable in relation to a person who has not paid a fee which that person is liable to pay.

Guidance

84. —(1) The authority may issue guidance to the regulator with respect to the carrying out of any of the regulator's functions under these Regulations, the Monitoring and Reporting Regulation or the Verification Regulation.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The regulator ... must have regard to any guidance issued under paragraph (1) ....

Duty of Secretary of State to publish information

84A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PART 11 Revocations, savings and transitional provisions.

Revocations

85. The following enactments are revoked—

(a) the 2005 Regulations;

(b) the following enactments amending the 2005 Regulations—

(i) S.I. 2006/737;

(ii) S.I. 2007/465;

(iii) S.I. 2007/1096;

(iv) S.I. 2007/3433;

(v) regulation 3 of S.R. (N.I.) 2010/92;

(vi) regulation 4 of S.I. 2005/2903;

(vii) regulation 8 of S.I. 2010/1513;

(viii) regulations 3 and 4 of S.I. 2011/1506;

(ix) paragraphs 1 to 20 of the Schedule to S.I. 2011/2911;

(c) the Greenhouse Gas Emissions Data and National Implementation Measures Regulations 2009 ;

(d) the 2010 Regulations;

(e) the Aviation Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2011 .

Savings and transitional provisions: the 2005 Regulations

86.—(1) Notwithstanding the revocations made by regulation 85, the following provisions of the 2005 Regulations (“ the relevant provisions ”) continue to have effect to the extent specified below.

("1A) the relevant provisions have effect as if—

(a) in regulation 2(1) the definition of “regulator” was amended as follows—

(i) in sub-paragraph (i) omit “and Wales”;

(ii) after sub-paragraph (i) insert—

“ (ia) in relation to an installation (other than an offshore installation) which is (or will be) situated in Wales, the Natural Resources Body for Wales; ” ;

(b) regulation 35(5) was amended as follows—

(i) in sub-paragraph (a) omit “and Wales”; and

(ii) in sub-paragraph (b) after “in relation to” insert “Wales,”.

(2) Part 1 and Schedule 1 have effect for the purpose of the relevant provisions.

(3) Regulations 16 and 17 have effect for the purposes of making an application for the surrender of a permit, or the service of a notice of revocation in respect of a failure to make such an application, where the circumstances giving rise to the requirement to make the application occurred before 1st January 2013.

(4) Regulation 18(3) to (5) has effect in relation to the charging schemes referred to in that regulation.

(5)Regulation 22 (other than paragraph (2)) has effect for the purpose of allowing an operator to make an application for an allocation from the new entrant reserve (as defined by regulation 2 of the 2005 Regulations).

(6) But for the purpose of paragraph (5) above, the reference in regulation 22(22) to regulation 15(1) of the 2005 Regulations is to be read as a reference to regulation 12(1) of these Regulations (and the reference to the proposed transferee is accordingly to be read as a reference to the new operator).

(7) Subject to paragraph (8) below, regulation 26 has effect for all purposes relating to the registry referred to in Article 3(2) of the Registries Regulation 2010.

(8) In regulation 26—

(a) paragraphs (2) to (5) do not have effect; and

(b) paragraph (8) has effect as if the references to Articles 18, 20(4) and 27(5) were omitted.

(9) The following provisions have effect in so far as they relate to any activities carried out, or emissions arising, prior to 1st January 2013—

(a) regulation 27A;

(b) Part 4.

(10) Subject to paragraph (11) below, Part 5 and Schedules 2 to 4 have effect in relation to any appeal brought against a decision or notice specified in regulation 32(1) to (5) of the 2005 Regulations.

(11) Regulation 32(4) has effect as if the reference to the appropriate authority were a reference to the First-tier tribunal (and the reference to the appropriate authority in regulation 32(7) is to be construed accordingly).

(12) Regulation 35 has effect in so far as it relates to functions carried out before 1st January 2013 or under the relevant provisions.

(13) Regulation 36 has effect in so far as it relates to a civil penalty in respect of emissions arising before 1st January 2013.

(14) Regulation 37 has effect.

(15) Paragraph (1)(c) to (f) of regulation 38 has effect in so far as it relates to the relevant provisions, but where the conduct giving rise to the offence occurs after 31st December 2012 the following civil penalties apply (subject to the regulator’s discretion under regulation 51 above) instead of the offences under that paragraph—

(a) the penalty in regulation 59 above applies instead of the offence of failing to making an application to surrender a permit;

(b) the penalties in regulation 53 above apply instead of the offence of failing to comply with a notice under regulation 22(13)(a) (and for that purpose the condition of the notice is deemed to be a condition falling within paragraph (1)(c) of regulation 53);

(c) the penalties in regulation 68 above apply instead of the offence of failing to comply with an enforcement notice; and

(d) the penalty in regulation 70 above applies instead of an offence under paragraph (1)(f) of regulation 38.

(16) Subject to paragraph (17) below, regulation 38(2) and (3) has effect.

(17) No prosecution may be brought in respect of an offence under regulation 38(1)(a) if—

(a) the conduct that gave rise to the offence continues after 31st December 2012; and

(b) the person who has committed the offence will be liable to a civil penalty under regulation 52 above.

(18) Subject to regulation 87B below, regulations 39 to 41 have effect in relation to a failure to surrender allowances in respect of emissions arising before 1st January 2013, and regulation 40 has effect in relation to an understatement of such emissions.

(19) Parts 8 to 10 have effect in so far as they relate to functions carried out, or powers exercised, under the relevant provisions or as national administrator under the Registries Regulation 2010.

Savings and transitional provisions: the 2010 Regulations

87. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Obligations in relation to aviation emissions arising before 2013

87A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Obligations in relation to aviation emissions arising before 2013: deficits

87AA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Unreported emissions arising before 2013

87B.—(1) Where paragraph (2) applies, a person (“P”) is not liable to an excess emissions penalty for a failure to surrender allowances in respect of those reportable emissions in a relevant year (“Y”) that exceed P's verified annual reportable emissions for that year.

(2) This paragraph applies where—

(a) the regulator becomes aware that P's reportable emissions in Y exceed P's verified annual reportable emissions in respect of that year; and

(b) P failed to surrender a number of allowances equal to the unreported emissions by 30th April in the year following Y.

(3) Where paragraph (2) applies, P is liable to the civil penalty of the sterling equivalent of 20 Euros for each allowance that P failed to surrender by 30th April in the year following Y in respect of the unreported emissions.

(4) Regulation 51(1) above applies to a penalty under paragraph (3) as it applies to a penalty under Part 7.

(5) In this regulation—

(a) “allowance” includes—

(i) where the excess emission penalty would arise under the 2010 Regulations, an aviation allowance; and

(ii) within the limits allowed by regulation 27A of the 2005 Regulations or regulation 26 of the 2010 Regulations, a project credit as defined by regulation 27 of the 2010 Regulations;

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) “excess emissions penalty” means the penalty under regulation 39 of the 2005 Regulations or regulation 38(1)(a) of the 2010 Regulations;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) “relevant year” means a calendar year prior to 2013;

(ea) “ verified annual reportable emissions ” means—

(i) reportable emissions that are verified pursuant to regulation 10 of the 2005 Regulations or regulation 21 of the 2010 Regulations;

(ii) reportable emissions that are determined by the regulator under regulation 30 of the 2005 Regulations or regulation 22 of the 2010 Regulations;

(f) “unreported emissions” means the emissions mentioned in paragraph (1);

(g) “sterling equivalent” has the meaning given in regulation 54(7) above.

Transitional provisions: permits

88.—(1) A permit granted under regulation 9 of the 2005 Regulations that is in force immediately before 1st January 2021, continues to have effect until it is revoked or surrendered under these Regulations.

(2) The regulator must vary the content of a greenhouse gas emissions permit that is in force immediately before 1st January 2021 to comply with the requirements of paragraph 2 of Schedule 4.

(3) Subject to paragraphs (4) and (5), an excluded installationemissionspermit that is in force immediately before 1st January 2021 continues to have effect as if it were an Article 27 installation emissions permit until it is revoked, surrendered or varied under these Regulations.

(4) The regulator must vary the excluded installationemissionspermit as necessary to bring it into a form in which it could have been granted under regulation 10(2).

(5) The regulator must, where an excluded installation is not eligible to obtain an Article 27 installation emissions permit, vary the excludedemissionspermit with effect from 1st January 2021 so that the provisions of the permit that satisfy the requirements of paragraph 3 of Schedule 5 are replaced by provisions satisfying the requirements of paragraph 2 of Schedule 4.

(6) The regulator may make any arrangements it considers necessary during the transitional period to—

(a) vary a permit under paragraph (2), (4) or (5);

(b) grant an Article 27 installation emissions permit under regulation 10(2);

(c) revoke a permit under regulation 14(1)(b)(ii) or (iii);

(d) vary a greenhouse gas emissions permit under paragraph 2 of Schedule 5.

(7) In this regulation, the “ transitional period ” means the period which—

(a) begins with 1st May 2020; and

(b) ends with 31st December 2020.

Transitional provisions: aviation emissions plans

89. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 4

SCHEDULE 1 Application to the Crown etc.

Crown application

1. Subject to paragraphs 2 and 3, these Regulations bind the Crown.

Entry to Crown premises

2. —(1) If the Secretary of State considers that in the interests of national security particular powers of entry must not be used in relation to particular Crown premises, the Secretary of State may certify that those powers must not be used in relation to those premises.

(2) In this paragraph—

“ Crown premises ” means premises held or used by or on behalf of the Crown;

“ power of entry ” means a power of entry exercisable under section 108 of the Environment Act 1995 or regulation 30 of the Northern Ireland Regulations, in relation to a function under these Regulations.

Service on certain Crown operators

3. —(1) This paragraph applies in relation to an installation operated by a person acting on behalf of—

(a) the Royal Household;

(b) the Duchy of Lancaster; or

(c) the Duke of Cornwall or other possessor of the Duchy of Cornwall.

(2) In relation to the serving or giving of notices or other documents under these Regulations, the following person must be treated as the operator—

(a) in relation to sub-paragraph (1)(a), the Keeper of the Privy Purse;

(b) in relation to sub-paragraph (1)(b), the person appointed by the Chancellor of the Duchy of Lancaster;

(c) in relation to sub-paragraph (1)(c), the person appointed by the Duke of Cornwall or other possessor of the Duchy of Cornwall.

Regulation 5

SCHEDULE 2 Notices etc.

1. In this Schedule, “ instrument ” means any notice or direction served or given under these Regulations (but does not include a notice or direction required to be given to the regulator or registry administrator).

2. An instrument must be in writing.

3. An instrument may be served on or given to a person (“P”) by—

(a) delivering it to P in person;

(b) sending it to a postal or email address n provided by P for the purpose of service of instruments;

(c) leaving it at P's proper address; or

(d) sending it by post or electronic means to P's proper address.

4. In the case of a body corporate, an instrument may be served on or given to the secretary or clerk of that body.

5. In the case of a partnership, an instrument may be served on or given to a partner or a person having control or management of the partnership business.

6. If a person (“Q”) to be served with or given an instrument has specified an address in the United Kingdom (other than Q's proper address) at which Q or someone on Q's behalf will accept instruments of that description, that address must instead be treated as Q's proper address.

7. For the purposes of this Schedule, “ proper address ” means (subject to paragraph 6)—

(a) in the case of a body corporate or its secretary or clerk—

(i) the registered or principal office of that body, or

(ii) the email address of the secretary or clerk;

(b) in the case of a partnership or a partner or person having control or management of the partnership business—

(i) the principal office of the partnership, or

(ii) the email address (or, in the case of a partnership established outside the United Kingdom, the last known address) of a partner or a person having that control or management;

(c) in any other case, a person's last known address (which for the purpose of this paragraph and paragraph (b) includes an email address).

8. For the purposes of paragraph 7, where a body corporate registered outside the United Kingdom or a partnership established outside the United Kingdom has an office in the United Kingdom, the principal office of that body corporate or partnership is its principal office in the United Kingdom.

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 6

SCHEDULE 3 Applications etc.

Applications etc. : general

1. —(1) This paragraph applies—

(a) to any application, notice or report submitted to the regulator under any provision of—

(i) these Regulations, or

(ii) a permit, ...

(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) notwithstanding any further provision made under or by virtue of these Regulations in respect of such application, notice or report.

(2) Sub-paragraph (10) also applies to applications—

(a) to the registry administrator to open an account in the Union Registry, and

(b) to the KP registry administrator to open an account in the UK Registry,

and for that purpose the provision of updated information in relation to such an account is to be treated as an application.

(3) For the purposes of this paragraph, an application includes any proposed plan required to be submitted as part of the application.

(4) An application, report or notice—

(a) must be in writing; and

(b) unless agreed otherwise in writing with the regulator, must be submitted on a form made available by the regulator for that purpose.

(5) Such a form must specify, as the case may be—

(a) the information required by the regulator to determine the application; or

(b) the matters required to be included in the report or notice .

(6) Unless agreed otherwise in writing with the regulator, the form must be sent to the regulator electronically.

(7) A form provided by the regulator which specifies an electronic address for submission must, if submitted electronically, be sent to that address.

(8) A form provided by the regulator for submission through a website must, unless the regulator agrees otherwise in writing, be submitted through that site and in accordance with the instructions given there for completion and submission.

(9) Unless the information has been provided in a previous application made to the regulator, an application must contain the name, postal address (including postcode) and telephone number of the applicant, together with—

(a) an email address for service, or

(b) a postal address for service (including postcode) in the United Kingdom,

and in the case of an application under regulation 12 (transfer of permits) those requirements apply to each of the joint applicants.

(10) An application must be accompanied by the feeprescribed, but—

(a) where the application is sent electronically, the fee may be sent to the regulator separately from the application (and in that case the application is deemed not to have been received by the regulator until the fee has also been received); ...

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(11) An application may be withdrawn at any time before it is determined.

(12) The regulator may, by notice to the applicant, require the applicant to provide such further information specified in the notice, within the period so specified, as the regulator may require for the purpose of determining the application.

(13) The application is deemed to have been withdrawn where—

(a) the applicant has failed to provide that information by the end of that period (or by such later date as may be agreed with the regulator); and

(b) the regulator gives notice to the applicant that the application is treated as having been withdrawn.

Determination of applications

2. —(1) Subject to sub-paragraph (2), where an application to the regulator under these Regulations is duly made it must be determined by the regulator within—

(a) the period of two months beginning with the date on which the application was received, or

(b) such longer period as may be agreed in writing with the applicant.

(2) For the purposes of sub-paragraph (1)—

(a) an application is determined when notice of the determination is given to the applicant by the regulator; and

(b) in calculating the period of two months, no account is to be taken of any period beginning with the date on which a notice under paragraph 1(12) is served on the applicant and ending with the date on which the applicant provides the information specified in the notice.

(3) If the regulator fails to determine the application within the period allowed by sub-paragraphs (1) and (2)—

(a) the applicant may give to the regulator notice that the applicant treats the application as having been refused, and

(b) the application is then deemed to have been refused at the end of that period.

(4) Where the application is an application for a permit or the transfer of a permit, any permit that is granted as a result of the application must be attached to the notice given under sub-paragraph (2)(a).

Regulations 10, 12, 13 and 14

SCHEDULE 4 Permits

Applications for permits

1. —(1) An application for a permit must contain—

(a) as well as the address for service required under Schedule 3, any address to which correspondence relating to the application should be sent; and (if the applicant is a body corporate)—

(i) its registered number and the postal address of its registered or principal office, and

(ii) if that body corporate is a subsidiary of a holding company within the meaning of section 1159 of the Companies Act 2006 , the name of the holding company (other than a holding company which is itself a subsidiary) and the postal address of its registered or principal office;

(b) in relation to the site of the installation—

(i) the postal address and national grid reference of the site (or equivalent information identifying the installation and its location);

(ii) a description of the site and the location of the installation on it; and

(iii) the name of any local authority in whose area the site is situated;

(c) a description of the installation, including a description of—

(i) the regulated activities to be carried out at the installation and the specified emissions from those activities; and

(ii) any directly associated activities (within Article 3(e) of the Directive) that are also to be carried out;

(d) a description of the raw and auxiliary materials used in carrying out regulated activities in the installation, the use of which is likely to lead to specified emissions;

(e) a description of the sources of specified emissions from the regulated activities carried out in the installation;

(f) a monitoring plan submitted under Article 12 of the Monitoring and Reporting Regulation 2018 , together with—

(i) the supporting documents under Article 12(1) of that Regulation;

(ii) the summary of a procedure ensuring fulfilment of the requirements referred to in Article 12(3)(a) and (b) of that Regulation; and

(iii) the uncertainty assessment carried out under Article 28(1)(a) of that Regulation;

(g) a description, including the reference number, of any environmental licence issued in relation to the installation;

(h) any additional information which the applicant wishes the regulator to take into account in considering the application; and

(i) a non-technical summary of the information referred to in paragraphs (c) to (h).

(2) For the purposes of sub-paragraph (1)(g), “ environmental licence ” means—

(a) an authorisation under ... the Industrial Pollution Control (Northern Ireland) Order 1997 ; or

(b) a permit under—

(i) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iv) the Northern Ireland Regulations.

(3) Where an application is for a permit in respect of more than one installation, the application must contain the information required by sub-paragraph (1) in respect of each installation.

Content of a greenhouse gas emissions permit

2. —(1) A greenhouse gas emissions permit granted under regulation 10 must contain—

(a) the name and postal address in the United Kingdom (including postcode) of the operator;

(b) the postal address and national grid reference of the installation (or equivalent information identifying the installation and its location);

(c) a description of the installation, including—

(i) the regulated activities to be carried out at the installation and the specified emissions from those activities; and

(ii) any directly associated activities (within Article 3(e) of the Directive) that are also to be carried out;

(d) a description of the site and the location of the installation on that site; and

(e) as defined below—

(i) the monitoring plan;

(ii) the monitoring and reporting requirements;

(iii) the surrender requirements; and

(iv) the supplementary requirements.

(2) The monitoring plan is the plan approved in accordance with Articles 11 to 13 of the Monitoring and Reporting Regulation 2018 .

(3) The monitoring and reporting requirements are—

(a) a requirement to monitor the annual reportable emissions of the installation in accordance with—

(i) the Monitoring and Reporting Regulation 2018 ; and

(ii) the monitoring plan (including the written procedures supplementing that plan);

(b) a requirement to prepare, for each scheme year, a verified report of those emissions in accordance with the Monitoring and Reporting Regulation 2018 and the Verification Regulation and to submit that report to the regulator—

(i) for the scheme year 2018, by 11th March 2019; or

(ii) for any other scheme year, by 31st March in the following year;

(c) a requirement to satisfy the regulator, if an emission factor of zero has been reported in respect of the use of bioliquids, that the sustainability criteria set out in Article 17(2) to (5) of the Renewable Energy Directive have been fulfilled in accordance with Article 18(1) of that Directive; and

(d) any further conditions that the regulator considers necessary to give proper effect to the Monitoring and Reporting Regulation 2018 or the Verification Regulation.

(4) The surrender requirements are conditions obliging the operator to surrender a number of allowances equal to the annual reportable emissions of the installation in a scheme year by—

(a) for the scheme year 2018, the 2018 surrender deadline ; or

(b) for any other scheme year, the following 30th April.

(5) For the purposes of the surrender requirements the amount of the annual reportable emissions of the installation in a recovery year is deemed to be increased by an amount equal to the amount of annual reportable emissions, arising in the non-compliance year, in respect of which the operator failed to comply with the surrender requirements.

(6) For the purposes of sub-paragraph (5)—

(a) a “non-compliance year” is a scheme year in respect of which an operator fails to comply with the surrender requirements; and

(b) the “recovery year” is—

(i) the scheme year following the non-compliance year; or

(ii) where the non-compliance results from an error in the verified emissions report submitted by the operator, the scheme year in which the error is discovered.

(7) The supplementary requirements are—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) any other conditions that the regulator considers necessary to ensure that the operator notifies the regulator of any planned or effective changes to the ... operation of the installation, by 31st December in the year in which the change was planned or has occurred; and

(c) any other conditions that the regulator considers appropriate to include in the permit.

Transfer of permits

3. —(1) An application under regulation 12 must—

(a) contain the information mentioned in sub-paragraph (3); and

(b) identify the installations, or parts of an installation, to which the application relates (“the transferred units”) and the regulated activities authorised to be carried out at them (“the transferred activities”).

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) The information referred to in sub-paragraph (1)(a) is—

(a) in relation to each applicant, as well as the address for service required under Schedule 3 any address to which correspondence relating to the application should be sent;

(b) in relation to the new operator, the information mentioned in paragraph 1(1)(a)(i) and (ii); and

(c) a monitoring plan and other information mentioned in paragraph 1(1)(f) submitted by the new operator, or a specification by that operator of the parts of the existing monitoring plan that it is proposed should be varied and any necessary corresponding updating of that information.

(4) Where the application relates to a partial transfer, a transfer of the permit is effected by the regulator giving notice—

(a) granting a permit to the new operator (“the new permit”) which—

(i) authorises the carrying out of the transferred activities;

(ii) identifies the transferred units at which they may be carried out; and

(iii) includes such other provisions as the regulator (subject to sub-paragraph (5)) considers appropriate; and

(b) making such corresponding variations to the provisions of the permit held by the current operator (“the original permit”) as the regulator (subject to sub-paragraph (5)) considers appropriate.

(5) In exercising the powers given by sub-paragraph (4)(a)(iii) and (b), the regulator must ensure that the conditions of the new permit, or the original permit as varied, are (so far as relevant) the same as the conditions that were included in the original permit, subject to such modifications as in the opinion of the regulator are necessary to take account of the transfer.

(6) For the purposes of sub-paragraph (4) the new permit, and the variations of the original permit, have effect from a date agreed with the applicants and specified in the new permit and in the original permit as so varied.

(7) Where the application does not relate to a partial transfer, the transfer of the permit is effected by the regulator giving notice varying the permit so that it includes—

(a) the name and other particulars of the new operator;

(b) the date referred to in sub-paragraph (8); and

(c) such variations to the monitoring plan as the regulator considers appropriate.

(8) From a date agreed with the applicants, the new operator is to be treated as the holder of the permit as varied under sub-paragraph (7).

(9) If the new operator already holds a permit (an “existing permit”) for an installation that is on the same site as the transferred unit the regulator may effect a transfer within sub-paragraph (7) by—

(a) giving notice of such variations to the existing permit as in the opinion of the regulator are necessary to take account of the transfer; and

(b) cancelling the permit held by the current operator.

(10) For the purposes of sub-paragraph (9)—

(a) the variations of the existing permit have effect from a date agreed with the applicants and specified in the existing permit as so varied; and

(b) the cancelled permit ceases to have effect on that date.

(11) A regulator who effects the transfer of a permit in accordance with this paragraph must notify the registry administrator of the transfer.

(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Surrender of permits

4. —(1) The notice of surrender must require the operator, in relation to the scheme year in which it takes effect (“ the relevant year ”), to—

(a) submit to the regulator by a date specified in the notice a report (“the surrender report”) specifying the reportable emissions from the beginning of the relevant year until the date on which the notice takes effect;

(b) ensure that the surrender report is prepared and verified in accordance with the monitoring and reporting requirements of the greenhouse gas emissions permit to which the application to surrender relates (“the permit”); and

(c) by a date specified in the notice, surrender allowances equal to—

(i) the reportable emissions specified in the surrender report;

(ii) where an operator has failed to comply with the surrender requirements of the permit imposed in respect of the last scheme year for which the date for surrendering allowances in accordance with those requirements has passed, the annual reportable emissions in respect of which the operator failed so to comply;

(iii) where the notice of surrender is served in a scheme year in which an error in the report submitted by an operator under the monitoring and reporting requirements in relation to any earlier scheme year has been discovered, the annual reportable emissions in respect of which, as a result of that error, the operator failed to comply with the surrender requirements of the permit in respect of the scheme year to which the error relates; and

(iv) where an operator has failed to comply with regulation 13(2), the total number of allowances which by the date on which the notice of surrender is served have been issued in respect of the installation which would not have been issued if the operator had so complied.

(2) From the date on which the notice of surrender takes effect—

(a) the permit ceases to have effect to authorise the carrying out of a regulated activity or to require the monitoring of emissions; but

(b) any conditions of the permit continue to have effect so far as they are not superseded by the requirements of that notice in accordance with sub-paragraphs (5) to (7) until the regulator certifies—

(i) that those requirements and any surrender requirements of the permit have been complied with, or

(ii) that there is no reasonable prospect of further allowances being surrendered by the operator in respect of the installation to which the notice relates.

(3) From the scheme year following the relevant year, for the purposes of assessing compliance with any surrender requirements of the permit the amount of reportable emissions of the installation (before any increase in accordance with paragraph 2(5)) is deemed to be zero.

(4) Where the regulator certifies in accordance with sub-paragraph (2)(b)(ii) that there is no reasonable prospect of further allowances being surrendered by the operator, the regulator must notify the registry administrator.

(5) The requirements specified in a notice of surrender pursuant to sub-paragraph (1)(a) and (b) are to be treated as if they were monitoring and reporting requirements of the permit.

(6) Subject to paragraph (7), the requirements specified in a notice of surrender pursuant to sub-paragraph (1)(c) are to be treated as if—

(a) they were surrender requirements of the permit, and

(b) the number of allowances required to be surrendered by the notice of surrender were the annual reportable emissions of the installation in respect of the scheme year to which the notice relates.

(7) Where the surrender report understates any reportable emissions, the requirement to surrender allowances equal to the amount of the understatement is not superseded by the requirements specified in the notice of surrender.

(8) Where the operator fails to comply with the requirements of a notice of surrender included pursuant to sub-paragraph (1), the regulator must notify the registry administrator.

Revocation of permits

5. —(1) The revocation notice must require the operator, in relation to the scheme year in which it takes effect (“ the relevant year ”), to—

(a) submit to the regulator by a date specified in the notice a report (“the revocation report”) specifying the reportable emissions from the beginning of the relevant year until the date on which the notice takes effect;

(b) ensure that the revocation report is prepared and verified in accordance with the monitoring and reporting requirements of the greenhouse gas emissions permit to which the revocation notice relates (“the permit”); and

(c) by a date specified in the notice, surrender allowances equal to—

(i) the reportable emissions specified in the revocation report;

(ii) where an operator has failed to comply with the surrender requirements of the permit imposed in respect of the last scheme year for which the date for surrendering allowances in accordance with those requirements has passed, the annual reportable emissions in respect of which the operator failed so to comply;

(iii) where the revocation notice is served in a scheme year in which an error in the report submitted by an operator under the monitoring and reporting requirements in relation to any earlier scheme year has been discovered, the annual reportable emissions in respect of which, as a result of that error, the operator failed to comply with the surrender requirements of the permit in respect of the scheme year to which the error relates; and

(iv) where the notice has been served under regulation 14(1)(b), the total number of allowances which by the date on which the revocation notice is served have been issued in respect of the installation which would not have been issued if the operator had so complied.

(2) A revocation notice must specify a period within which the fee for the revocation of the permit must be paid.

(3) From the date on which the revocation notice takes effect—

(a) the permit ceases to have effect to authorise the carrying out of a regulated activity or to require the monitoring of emissions; but

(b) any conditions of the permit continue to have effect so far as they are not superseded by the requirements of that notice in accordance with sub-paragraphs (6) to (8) until the regulator certifies—

(i) that those requirements and any surrender requirements of the permit imposed have been complied with, or

(ii) that there is no reasonable prospect of further allowances being surrendered by the operator in respect of the installation to which the notice relates.

(4) From the scheme year following the relevant year, for the purposes of assessing compliance with the surrender requirements of the permit the amount of reportable emissions of the installation (before any increase in accordance with paragraph 2(5)) is deemed to be zero.

(5) Where the regulator certifies in accordance with sub-paragraph (3)(b)(ii) that there is no reasonable prospect of further allowances being surrendered by the operator, the regulator must notify the registry administrator.

(6) The requirements specified in a revocation notice pursuant to sub-paragraph (1)(a) and (b) are to be treated as if they were monitoring and reporting requirements of the permit.

(7) Subject to paragraph (8), the requirements specified in a revocation notice pursuant to sub-paragraph (1)(c) are to be treated as if—

(a) they were surrender requirements of the permit, and

(b) the number of allowances required to be surrendered by the revocation notice were the annual reportable emissions of the installation in respect of the scheme year to which the notice relates.

(8) Where the revocation report understates any reportable emissions, the requirement to surrender allowances equal to the amount of the understatement is not superseded by the requirements specified in the revocation notice.

(9) Where the operator fails to comply with the requirements of a revocation notice included pursuant to sub-paragraph (1), the regulator must notify the registry administrator.

(10) A regulator who has served a revocation notice may, at any time before the date on which it takes effect, withdraw the notice.

Regulations 10(7) and 15

SCHEDULE 5 Excluded installations : Article 27 installations

Interpretation

1. —(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) In this Schedule—

“ emissions report ” has the meaning given by paragraph 3(8)(b)(i);

...

“ maximum amount ” means annual reportable emissions of 24,999 tonnes of carbon dioxide equivalent in any scheme year.

Conversion of a greenhouse gas emissions permit

2. —(1) Where a greenhouse gas emissions permit has been granted in respect of an installation that is an Article 27 installation, the regulator must vary the greenhouse gas emissions permit (with effect from a date to be included in the permit) so that the provisions of the permit are replaced by provisions that satisfy the requirements of paragraph 3.

(2) When a permit is varied under sub-paragraph (1)—

(a) the regulator may make only such variations as appear to the regulator to be necessary in consequence of the installation being an Article 27 installation; but

(b) that is without prejudice to the duty to vary the permit in accordance with regulation 88(2) or (4) .

(3) A variation of a permit under this paragraph does not affect any obligations of the operator under the permit in respect of emissions arising prior to 1st January 2021 .

Content of an Article 27 installation emissions permit

3. —(1) An Article 27 installationemissionspermit must contain—

(a) the name and postal address in the United Kingdom (including postcode) of the operator and any other address for correspondence specified by the operator;

(b) the postal address and national grid reference of the installation (or for offshore installations equivalent information identifying the installation and its location);

(c) a description of the installation, including—

(i) the regulated activities to be carried out at the installation and the specified emissions from those activities; and

(ii) the directly associated activities (within Article 3(e) of the Directive) that are also to be carried out;

(d) a description of the site and the location of the installation on that site;

(e) an emissions target for each scheme year over the first or second allocation period, as the case may be ;

(f) a monitoring plan (as defined in sub-paragraph (7));

(g) the monitoring and reporting conditions (as defined in sub-paragraph (8));

(h) the record keeping requirements (as defined in sub-paragraph (9)); and

(i) any other conditions that the regulator considers appropriate to include in the permit.

(2) The authority must exercise powers under ... regulation 40 of the Northern Ireland Regulations , to give the regulator directions as to the calculation of the emissions targets included under sub-paragraph (1)(e).

(3) If the regulator has been directed to do so under an enactment mentioned in sub-paragraph (2) before 30th September in any scheme year, the regulator must vary the permit by substituting new emissions targets for the existing targets for each subsequent scheme year over the allocation period to which the direction relates in order to take into account (to the extent and in the manner specified in the direction)—

(a) any amendments to the Directive;

(b) any relevant changes to the determinations in respect of the sectors and subsectors made by the European Commission pursuant to Article 10b(5) of the Directive;

(c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(d) any measures relating to carbon budgets under the Climate Change Act 2008 ; or

(e) any other matters mentioned in the direction.

(4) An Article 27 installationemissionspermit ... must contain a condition requiring the operator to give notice to the regulator by the relevant date if the annual reportable emissions from the installation in any scheme year exceed the maximum amount.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) For the purposes of sub-paragraph (4) , the relevant date is 31st March in the year following the scheme year in question.

(7) The monitoring plan is the plan approved in accordance with Articles 11 to 13 of the Monitoring and Reporting Regulation 2018 .

(8) The monitoring and reporting conditions are—

(a) a requirement to monitor the annual reportable emissions of the installation in accordance with—

(i) the relevant provisions of the Monitoring and Reporting Regulation 2018 ; and

(ii) the monitoring plan (including the written procedures supplementing that plan);

(b) a requirement to submit to the regulator, for each scheme year, by 31st March in the following year a report of the annual reportable emissions from the installation in accordance with the relevant provisions of the Monitoring and Reporting Regulation 2018 (“the emissions report”) that is either—

(i) verified in accordance with the Verification Regulation, or

(ii) accompanied by a notice declaring that—

(aa) in preparing the emissions report the operator has complied with the relevant provisions of the Monitoring and Reporting Regulation 2018 ;

(bb) the operator has complied with the monitoring plan for the installation; and

(cc) the report is free from material misstatements;

(c) a requirement to satisfy the regulator, if an emission factor of zero has been reported in respect of the use of bioliquids, that the sustainability criteria set out in Article 17(2) to (5) of the Renewable Energy Directive have been fulfilled in accordance with Article 18(1) of that Directive; and

(d) any further conditions that the regulator considers necessary to ensure that the operator complies with the relevant provisions of the Monitoring and Reporting Regulation 2018 .

(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10) In this paragraph, “ relevant provisions ” means the provisions specified in the permit as relevant for the purposes of monitoring and reporting emissions from Article 27 installations.

(11) The authority must exercise powers under ... regulation 40 of the Northern Ireland Regulations, to give the regulator directions as to the provisions that are to be specified in accordance with sub-paragraph (10).

Activities during 2012: duty to notify regulator

4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Emissions target: duty not to exceed

5. An operator must ensure that annual reportable emissions from an Article 27 installation in a scheme year do not exceed the emissions target for that year.

Emissions target: increase in the capacity of an Article 27 installation

6. —(1) Where a capacity increase has occurred at an Article 27 installation after 30th June 2019, the operator may apply to the regulator for an increase in the emissions targets for the installation for the subsequent scheme years within the first allocation period.

(2) An application under sub-paragraph (1) must be made—

(a) by 31st December in the year during which the capacity increase occurred or within 3 months of the date of the capacity increase, whichever is later; or

(b) where the capacity increase occurred before 1st January 2021 , by 30th June 2021 .

(2A) Where a capacity increase occurs at an Article 27 installation after 30th June 2024, the operator may apply to the regulator for an increase in the emissions targets for the installation for the subsequent scheme years within the second allocation period.

(2B) An application under sub-paragraph (2A) must be made—

(a) by 31st December in the year during which the capacity increase occurred or within 3 months of the date of the capacity increase, whichever is later; or

(b) where the capacity increase occurred before 1st January 2026, by 30th June 2026.

(3) An application under sub-paragraph (1) or (2A) must contain evidence demonstrating the following—

(a) the date on which the capacity increase was put into operation;

(b) that the increase is not temporary;

(c) that the increase is in operation and is required for the purpose of carrying out the operator's primary business activities;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e) any further matters that the regulator is required to take into account by a direction referred to in sub-paragraph (8).

(4) Where the regulator receives an application under sub-paragraph (1) or (2A) , and is satisfied with information provided by the operator under sub-paragraph (3), the regulator may calculate new emissions targets for that and subsequent scheme years within the allocation period to which the application relates .

(5) Where the regulator calculates new emissions targets pursuant to sub-paragraph (4), the regulator must vary the permit by substituting the new emissions targets for the existing targets.

(6) Where after having varied the permit under sub-paragraph (5) the regulator is subsequently satisfied that the evidence provided by the operator under sub-paragraph (3) is incorrect or incomplete, the regulator may recalculate those new emissions targets and vary the permit accordingly by making a new substitution of emissions targets.

(7) However, the increase in an emissions target under sub-paragraph (4) or (6) may not result in an emissions target which exceeds the maximum amount.

(8) The authority must exercise powers under ... regulation 40 of the Northern Ireland Regulations, to give the regulator directions as to—

(a) the further matters required to be taken into account when considering an application under sub-paragraph (1) or (2A) ; and

(b) the calculation or recalculation of emissions targets under sub-paragraphs (4) or (6).

(9) In this paragraph—

(a) “ capacity increase ” means an increase in an installation’s installed capacity whereby one or more identifiable physical changes relating to its technical configuration and functioning other than a replacement of an existing production line takes place;

(b) “ installed capacity ” means—

(i) for the purpose of calculating new emission targets for the first allocation period, the installation’s installed capacity on 30th June 2019;

(ii) for the purpose of calculating new emission targets for the second allocation period, the installation’s installed capacity on 30th June 2024;

(iii) in the case of an installation which has had a capacity increase either since 30th June 2019, or since 30th June 2024, as the case may be, the installed capacity of the installation following the last capacity increase;

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Banking an overachieved emissions target

7. —(1) ... In this paragraph “ bankable amount ” in relation to a scheme year means the difference between—

(a) the emissions target for that year; and

(b) the amount of reportable emissions stated in the emissions report for that year.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) Subject to sub-paragraphs (5) and (8) , where for any scheme year (“S”) the bankable amount is greater than zero the regulator—

(a) may increase the emissions target for the installation for the following scheme year by the bankable amount; and

(b) must in that case vary the permit by substituting that increased emissions target for the existing target.

(5) ... If increasing the emissions target under sub-paragraph (4) would result in an emissions target which exceeds the maximum amount, the increased emissions target must instead be equal to the maximum amount.

(6) Where the amount of reportable emissions stated in the emissions report for S is amended following a determination of emissions under regulation 44(3), the regulator must—

(a) calculate the bankable amount using the data as so determined; and

(b) where an increased emissions target has been substituted under sub-paragraph (4)(b), make a further variation of the permit to substitute a revised emissions target.

(7) Subject to paragraph (8), where an increased emissions target for a scheme year has been substituted following an application under paragraph 6(1), but the application was determined in the following year, the regulator must—

(a) calculate any bankable amount for the scheme year using that increased target; and

(b) vary the permit to substitute a revised emissions target for the following year, based on the amount so calculated.

(8) The regulator may not vary an emissions target under sub-paragraph (4)(a) or (7)(a) for a scheme year which begins after the end of the allocation period during which any increase has occurred.

Termination of an Article 27 installation emissions permit

8. —(1) Where the regulator is satisfied that the annual reportable emissions from an Article 27 installation have exceeded the maximum amount, the regulator must, as soon as is reasonably practicable, give a notice to the operator.

(2) A notice under sub-paragraph (1) must state that, from the beginning of the scheme year following the year in which the notice is given—

(a) the installation will not be treated as an Article 27 installation; and

(b) the operator will be required to comply with the conditions of a greenhouse gas emissions permit in respect of the installation for the remainder of the allocation period during which the notice is given .

(3) This sub-paragraph applies where the regulator is satisfied that the operator of an Article 27 installation has—

(a) committed a sufficiently serious breach of the conditions of the Article 27 installationemissionspermit, or

(b) failed to pay to the regulator the penalty imposed under regulation 56 within one month after the date specified in the penalty notice.

(4) Where sub-paragraph (3) applies the regulator may revoke the permit under regulation 14 or give a notice to the operator in accordance with sub-paragraph (5).

(5) The notice must state that, from the beginning of the scheme year following the year in which notice is given—

(a) the installation will not be treated as an Article 27 installation; and

(b) the operator will be required to comply with the conditions of a greenhouse gas emissions permit in respect of the installation for the remainder of the allocation period during which the notice is given .

(6) Where notice is given under sub-paragraph (1) or (4), the regulator must vary the Article 27 installationemissionspermit, with effect from the 1st January in the scheme year following the year in which the notice was given (“the date of conversion”), so that the provisions of the permit that satisfy the requirements of paragraph 3 are replaced by provisions satisfying the requirements of paragraph 2 of Schedule 4.

(6A) Where regulation 15(C1) applies, the regulator must vary the excluded installationemissionspermit, with effect from 1st January 2026, so that the provisions of the permit that satisfy the requirements of paragraph 3 of this Schedule are replaced by provisions satisfying the requirements of paragraph 2 of Schedule 4.

(7) In varying a permit under sub-paragraph (6), the regulator may make only such variations as appear to the regulator to be necessary in consequence of the installation ceasing to be treated as an Article 27 installation.

(8) A variation of a permit under sub-paragraph (6) does not affect any obligations of the operator under the permit in respect of emissions arising from activities prior to the date of conversion.

(9) Where—

(a) notice is given under sub-paragraph (1) or (4), and

(b) the operator holds a registry account with Article 27 status in respect of the installation,

the regulator must give notice to the registry administrator, in accordance with the Registries Regulation 2019 , to change the status of the account to open from the year beginning with the date of conversion.

(10) Where sub-paragraph (3) applies and the permit is revoked, the regulator must give notice to the registry administrator in accordance with the Registries Regulation 2019 to close the account.

End of excluded installation status

9. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulations 15A, 58ZA, 58ZB

SCHEDULE 5A

Interpretation

1. In this Schedule—

(a) “ maximum amount ” means an amount of less than 2,500 tonnes of carbon dioxide equivalent, disregarding emissions from biomass;

(b) “ the operator's preferred alternative permit ” has the meaning given in paragraph 3(1).

Duty to monitor emissions

2. —(1) The operator of an Article 27a installation must monitor the installation's emissions of carbon dioxide equivalent in accordance with an appropriate monitoring plan.

(2) An appropriate monitoring plan for the first allocation period is a monitoring plan that—

(a) was approved in relation to the installation in accordance with Articles 11 to 13 of the Monitoring and Reporting Regulation, for the purposes of the scheme year immediately before the first allocation period; or

(b) is otherwise approved by the regulator, following an application made by the operator, as a plan that is capable of monitoring whether the installation has exceeded the maximum amount in any scheme year.

(3) An appropriate monitoring plan for the second allocation period is a monitoring plan that—

(a) was approved in relation to the installation in accordance with Articles 11 to 13 of the Monitoring and Reporting Regulation, for the purposes of the scheme year immediately before the first allocation period;

(b) was approved in relation to the installation in accordance with Article 11 to 13 of the Monitoring and Reporting Regulation 2018, for the purposes of the scheme year immediately before the second allocation period; or

(c) is otherwise approved by the regulator, following an application made by the operator, as a plan that is capable of monitoring whether the installation has exceeded the maximum amount in any scheme year.

The operator's preferred alternative permit

3. —(1) The operator of an Article 27a installation may notify the regulator that, if the installation exceeds the maximum amount in any scheme year, the operator prefers to comply with the conditions of an Article 27 installation emissions permit or, alternatively, a greenhouse gas emissions permit in respect of the installation (“the operator's preferred alternative permit”).

(2) A notice under sub-paragraph (1) must be received by the regulator by 31st August 2024, in relation to the second allocation period.

Duty to notify if emissions exceed maximum amount during an allocation period

4. —(1) The operator of an Article 27a installation must notify the regulator by the relevant date if the reportable emissions from the installation in any scheme year exceed the maximum amount.

(2) For the purposes of sub-paragraph (1), the relevant date is 31st March in the year following the scheme year in question.

Termination of Article 27a status

5. —(1) Where the regulator is satisfied that an Article 27a installation has exceeded the maximum amount in any scheme year, the regulator must, as soon as is reasonably practicable, give a notice to the operator.

(2) A notice that is given pursuant to sub-paragraph (1) must state that, from the beginning of the scheme year following the year in which the notice is given—

(a) the installation will not be treated as an Article 27a installation; and

(b) the operator will be required to comply with the conditions of the operator's preferred alternative permit for the remainder of the allocation period during which the notice is given.

(3) Where the regulator has not received notification of the operator’s preferred alternative permit in accordance with paragraph 3, the notice under sub-paragraph (1) must state that, from the beginning of the scheme year following the year in which the notice is given, until the end of the allocation period during which the notice is given, the operator will be required to comply with the conditions of a greenhouse gas emissions permit in respect of the installation.

(4) The operator of an Article 27a installation who has received a notice pursuant to sub-paragraph (1) may apply for—

(a) a greenhouse gas emissions permit, under regulation 10(1); or

(b) an Article 27 installation emissions permit, under regulation 10(2),

whichever is stated in the notice given pursuant to sub-paragraph (2)(b) or sub-paragraph (3).

Regulation 16(3)

SCHEDULE 6 Allocation and adjustment of allowances

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 16(3A)

SCHEDULE 6A Allocation and adjustment of allowances: installations which cease to be excluded installations

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 30(a)

SCHEDULE 7 Allocation of aviation allowances

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 30(b)

SCHEDULE 8 Allocation of aviation allowances from the special reserve

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 39(3)

SCHEDULE 9 Detention and sale of aircraft

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 40

SCHEDULE 10 Aircraft operating bans

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 78(1) and (3)

SCHEDULE 11 Appeals to the Scottish Ministers

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Regulation 78(4)

SCHEDULE 12 Appeals (Northern Ireland)

1. —(1) A person who wishes to appeal to the Planning Appeals Commission (“ the appeals commission ”) under regulation 73(1) or 74(1) against a decision of the chief inspector or registry administrator must give to the appeals commission written notice of the appeal together with a statement of the grounds of appeal.

(2) The appeals commission must as soon as is reasonably practicable send to the regulator or registry administrator a copy of that notice and that statement.

(3) An appellant may withdraw an appeal by notifying the appeals commission; and the appeals commission must as soon as is reasonably practicable notify the regulator or registry administrator of that withdrawal.

2. Notice of appeal in accordance with paragraph 1 is to be given before the expiry of the period of 47 days beginning with the date on which the decision takes effect.

3. —(1) The appeals commission must determine the appeal and section 204(1), (3) and (4) of the Planning Act (Northern Ireland) 2011 applies in relation to the determination of the appeal as they apply in relation to the determination of an appeal under that Order.

(2) The appeals commission must determine the process for determining appeals taking into account any requests of either party to the appeal.

4. An appeal under this Schedule must be accompanied by any fee for the appeal prescribed in regulations made under section 223(7)(b) of the Planning Act (Northern Ireland) 2011; and for that purpose section 223(7)(b) has effect as if a reference to an appeal under that Act included a reference to an appeal under these Regulations.