Citation, commencement and interpretation

1. —(1) These Regulations may be cited as the Climate Change Agreements (Administration) (Amendment and Related Provision) Regulations 2016 and come into force on 30th December 2016.

(2) In these Regulations, “the 2012 Regulations” means the Climate Change Agreements (Administration) Regulations 2012 ( 2 ).

Amendment to Regulation 2 of the 2012 Regulations

2. In regulation 2 of the 2012 Regulations (interpretation), after the definition of “target period” insert—

“ “target period 1” means the target period from 1st January 2013 to 31st December 2014;

“target period 2” means the target period from 1st January 2015 to 31st December 2016;

“target period 3” means the target period from 1st January 2017 to 31st December 2018;

“target period 4” means the target period from 1st January 2019 to 31st December 2020. ”

Amendment to Regulation 12 of the 2012 Regulations

3. —(1) Regulation 12 of the 2012 Regulations (terms to be included in an underlying agreement relating to the buy-out fee) is amended as follows.

(2) For paragraph (2)(c), substitute—

“ (c) if sub-paragraph (a)(i) applies, the amount of the fee is—

(3) For paragraph (2)(d), substitute—

“ (d) if sub-paragraph (a)(ii) applies, the amount of the fee is—

Amendment to insert new Regulation 12A in the 2012 Regulations

4. After regulation 12 of the 2012 Regulations insert—

“ Terms to be included in an umbrella agreement relating to the buy-out fee

12A. —(1) This regulation applies to an umbrella agreement if it contains terms corresponding with the terms set out in regulation 12(2).

(2) The terms must provide that, where the administrator’s finding is of a failure to meet a target for target period 3 or target period 4, the fee is to be calculated in accordance with paragraph (3) or (4).

(3) If the circumstances set out in regulation 12(2)(a)(i) apply, the amount of the fee is—

(4) If the circumstances set out in regulation 12(2)(a)(ii) apply, the amount of the fee is—

Administrator’s power to vary an agreement relating to the buy-out fee terms

5. —(1) The administrator may vary an agreement to take account of the specified changes in the terms that must be included in an agreement.

(2) If the administrator varies an umbrella agreement, the administrator must also vary each underlying agreement with which it forms a combination of agreements for the purposes of paragraph 48 of Schedule 6 to the Finance Act 2000( 3 ).

(3) If the administrator varies an umbrella agreement, the administrator must give notice in writing of the variation to the sector association which is a party to that agreement.

(4) If the administrator varies an underlying agreement, the administrator must give notice in writing of the variation to the operator which is a party to that agreement.

(5) Notice may be given by first class post or by electronic communication to the address of the sector association or operator as notified to the administrator.

(6) In this regulation—

“the administrator” means the Environment Agency;

“agreement” means an umbrella agreement or an underlying agreement;

“operator” means a party to an underlying agreement other than the administrator;

“sector association” means a party to an umbrella agreement other than the administrator;

“the specified changes” means the changes made by regulations 3 and 4 to the terms which must be included in an agreement;

“umbrella agreement” means an agreement that is an umbrella agreement for the purposes of paragraph 48 of Schedule 6 to the Finance Act 2000 ;

“underlying agreement” means an agreement that is an underlying agreement for the purposes of paragraph 48 of Schedule 6 to the Finance Act 2000 or, if there is no umbrella agreement, an agreement falling within paragraph 47 of Schedule 6 to the Finance Act 2000 ( 4 ).