Infrastructure Bill (HC Bill 987)

(2) In this section “the Extractive Industries Transparency Initiative”
means the international initiative of that name which has the aim of
promoting openness in the management of revenues from natural
resources.””

5Recovery of UK petroleum

37 Maximising economic recovery of UK petroleum

After section 9 of the Petroleum Act 1998 insert—

““Part 1A

Maximising economic recovery of UK petroleum

9A The principal objective and the strategy

(1) In this Part the “principal objective” is the objective of maximising the
10economic recovery of UK petroleum, in particular through—

(a) development, construction, deployment and use of equipment
used in the petroleum industry (including upstream petroleum
infrastructure), and

(b) collaboration among the following persons—

(i) 15holders of petroleum licences;

(ii) operators under petroleum licences;

(iii) owners of upstream petroleum infrastructure;

(iv) persons planning and carrying out the commissioning
of upstream petroleum infrastructure.

(2) 20The Secretary of State must produce one or more strategies for enabling
the principal objective to be met.

(3) A strategy may relate to matters other than those mentioned in
subsection (1)(a) and (b).

(4) For provision about producing and revising a strategy, see sections 9F
25and 9G.

9B Exercise of certain functions of the Secretary of State

The Secretary of State must act in accordance with the current strategy
or strategies when—

(a) exercising functions under the other Parts of this Act (except
30Part 4),

(b) exercising functions under Part 4 to the extent that they concern
reduction of the costs of abandonment of offshore installations
and submarine pipelines,

(c) exercising functions under Chapter 3 of Part 2 of the Energy Act
352011 (upstream petroleum infrastructure),

(d) exercising any function or using any power under a petroleum
licence, and

(e) exercising any other function or using any power—

(i) to provide advice or assistance to another person, or

(ii) 40to acquire, use or supply information,

for the purpose of enabling the principal objective to be met.

9C Carrying out of certain petroleum industry activities

(1) A person who is the holder of a petroleum licence must act in
accordance with the current strategy or strategies when planning and
5carrying out activities as the licence holder.

(2) A person who is an operator under a petroleum licence must act in
accordance with the current strategy or strategies when planning and
carrying out activities as the operator under the licence.

(3) A person who is the owner of upstream petroleum infrastructure must
10act in accordance with the current strategy or strategies when planning
and carrying out the person’s activities as the owner of upstream
petroleum infrastructure (including the development, construction,
deployment and use of the infrastructure).

(4) A person must act in accordance with the current strategy or strategies
15when planning and carrying out the commissioning of upstream
petroleum infrastructure.

9D Reports by the Secretary of State

(1) As soon as practicable after the end of each reporting period, the
Secretary of State must—

(a) 20consider the extent to which, during that period, these persons
have followed section 9C by acting in accordance with the
current strategy or strategies—

(i) licence holders,

(ii) operators under petroleum licences,

(iii) 25owners of upstream petroleum infrastructure, and

(iv) persons planning and carrying out the commissioning
of upstream petroleum infrastructure; and

(b) produce a report on the results of the consideration of that
question.

(2) 30The report may contain other material, including a statement of action
which the Secretary of State has taken, or is proposing to take, in
response to any matter included in the report (including changes to a
strategy).

(3) The Secretary of State must publish, and lay before each House of
35Parliament, a copy of each report produced under this section.

(4) In this section “reporting period” means—

(a) the period of two years beginning with the day when this
section comes into force, and

(b) each subsequent period of one year beginning with the day after
40the end of a previous reporting period.

9E Secretary of State’s security and resilience functions

(1) This Part does not limit the exercise of the Secretary of State’s security
and resilience functions.

(2) This Part is subject to the exercise of the security and resilience
45functions by the Secretary of State.

(3) In this section “security and resilience function” means any function
which relates to—

(a) the security of petroleum supplies, or

(b) the resilience of the petroleum industry.

9F 5Producing and revising a strategy

(1) The Secretary of State must produce the first strategy before the end of
the period of one year beginning with the day on which this section
comes into force.

(2) The Secretary of State may subsequently—

(a) 10produce a new strategy, or

(b) revise a current strategy,

whenever the Secretary of State thinks appropriate.

(3) The Secretary of State must review each current strategy before the end
of each relevant four year period.

(4) 15In reviewing a current strategy, the Secretary of State must (in
particular) take account of the results of any consideration undertaken
under section 9D in respect of reporting periods falling within the
relevant four year period.

(5) In this section “relevant four year period”, in relation to a current
20strategy, means a period of four years beginning with—

(a) the date on which the strategy was issued, or

(b) if later, the date on which the last review under subsection (3)
was concluded.

9G Procedure for producing and revising a strategy

(1) 25Before—

(a) producing the first strategy,

(b) producing a new strategy, or

(c) revising a current strategy,

the Secretary of State must prepare a draft of the strategy or revised
30strategy.

(2) The Secretary of State must—

(a) consult such persons as the Secretary of State thinks appropriate
about the draft, and

(b) consider any representations made by them.

(3) 35If, after complying with that duty, the Secretary of State decides to
proceed with the draft (in its original form or with modifications), the
Secretary of State must lay a copy of the draft before each House of
Parliament.

(4) The Secretary of State may not take any further steps in relation to the
40draft if, within the 40 day period, either House resolves not to approve
the draft (a “negative resolution”).

(5) If neither House passes a negative resolution, the Secretary of State may
issue the strategy or revised strategy in the form laid before Parliament.

(6) The strategy or revised strategy comes into force on the date specified
by the Secretary of State (which must not be before the date when it is
issued).

(7) Subsection (4) does not prevent a new draft of a strategy or revised
5strategy from being laid before Parliament.

(8) In this section “40 day period”, in relation to the draft of a strategy or
revised strategy, means the period of 40 days beginning with the day
on which the draft is laid before Parliament (or if the draft is not laid
before each House on the same day, the later of the 2 days on which it
10is laid).

(9) For the purposes of calculating the 40 day period, no account is to be
taken of any period during which Parliament is dissolved or prorogued
or during which both Houses are adjourned for more than four days.

9H “Upstream petroleum infrastructure” and its owners

(1) 15In this Part “upstream petroleum infrastructure” means—

(a) a gas processing facility,

(b) an oil processing facility, or

(c) an upstream petroleum pipeline,

if and in so far as it meets conditions A and B.

(2) 20A facility or pipeline meets condition A if and in so far as it is situated
in Great Britain or relevant UK waters.

(3) A facility or pipeline meets condition B if and in so far as it is used in
relation to UK petroleum (including such petroleum after it has been
got).

(4) 25But an upstream petroleum pipeline is not “upstream petroleum
infrastructure” if it is a pipeline to which section 17GA applies
(petroleum pipelines subject to Norwegian access system).

(5) In this section, the following expressions have the same meanings as in
Chapter 3 of Part 2 of the Energy Act 2011 (see section 90 of that Act)—

(a) 30“gas processing facility”;

(b) “oil processing facility”;

(c) “upstream petroleum pipeline”.

(6) In this Part, “owner”, in relation to upstream petroleum infrastructure,
means—

(a) 35a person in whom the pipeline or facility is vested;

(b) a lessee and any person occupying or controlling the pipeline or
facility; and

(c) a person who has the right to have things conveyed by the
pipeline or processed by the facility.

9I 40Other interpretation

In this Part—

• “current strategy”, in relation to any particular time, means a
  strategy under section 9A(2) in force at that time;

• “operator under a petroleum licence” means a person who is
  45responsible for organising or supervising any of the operations

  Infrastructure BillPage 44

  of searching for, boring for, or getting UK petroleum in
  pursuance of the petroleum licence;

• “owner”, in relation to upstream petroleum infrastructure, has the
  meaning given in section 9H;

• 5“petroleum” has meaning given in section 1;

• “petroleum licence” means a licence granted under—

  (a)

  section 3 of this Act, or

  (b)

  section 2 of the Petroleum (Production) Act 1934;

• “principal objective” has the meaning given in section 9A;

• 10“relevant UK waters” means—

  (a)

  the territorial sea adjacent to the United Kingdom, and

  (b)

  the sea in any area designated under section 1(7) of the
  Continental Shelf Act 1964;

• “UK petroleum” means petroleum which for the time being exists
  15in its natural condition in strata beneath relevant UK waters;

• “upstream petroleum infrastructure” has the meaning given in
  section 9H.””

38 Levy on holders of certain energy industry licences

(1) The Secretary of State may, by regulations, provide for a levy to be imposed on,
20and be payable by, one or more of the following kinds of persons—

(a) persons who hold licences under section 2 of the Petroleum
(Production) Act 1934 or licences under section 3 of the Petroleum Act
1998 (exploitation of petroleum);

(b) persons who hold licences under section 4 of the Energy Act 2008
25(unloading and storing gas);

(c) persons who hold licences under section 18 of the Energy Act 2008
granted by the Secretary of State (storage of carbon dioxide).

(2) No licensing levy is to be imposed in respect of a time which falls after the end
of the period of 3 years beginning with the first day of the first charging period.

(3) 30The Secretary of State must exercise the power conferred by subsection (1) so
as to secure—

(a) that the total amount of licensing levy which is payable in respect of a
charging period does not exceed the costs incurred by the Secretary of
State in exercising the relevant functions in respect of that period; and

(b) 35that no levy is payable in respect of costs incurred in any exercise of
relevant functions for which a charge is payable under the Gas and
Petroleum (Consents) Charges Regulations 2013 (as those Regulations
stand when this section comes into force).

(4) In determining for the purposes of subsection (3)(a) the total amount of
40licensing levy payable in respect of a charging period, an amount of levy
payable in respect of that period may be ignored if (during that period or
subsequently)—

(a) having been paid, it is repaid or credit for it is given against other
licensing levy that is payable; or

(b) 45having not been paid, the requirement to pay it is cancelled.

(5) The “relevant functions” referred to in subsection (3) are—

(a) functions under the following enactments—

(i) the Pipe-lines Act 1962 (cross-country pipe-lines);

(ii) section 3 and the other provisions of Part 1 of the Petroleum Act
1998 (exploitation of petroleum);

(iii) Part 1A of the Petroleum Act 1998 (maximising economic
5recovery of UK petroleum);

(iv) Part 3 of the Petroleum Act 1998 (submarine pipelines);

(v) Part 4 of the Petroleum Act 1998, in so far as the functions
concern reduction of the costs of abandonment of offshore
installations and submarine pipelines;

(vi) 10section 4 and the other provisions of Chapter 2 of Part 1 of the
Energy Act 2008 (importation and storage of combustible gas);

(vii) section 18 and the other provisions of Chapter 3 of Part 1 of the
Energy Act 2008 (storage of carbon dioxide);

(viii) Chapter 3 of Part 2 of the Energy Act 2011 (upstream petroleum
15infrastructure);

(b) carrying out policy work on matters relating to UK petroleum and its
recovery;

(c) providing advice and assistance to the petroleum industry on matters
relating to UK petroleum and its recovery;

(d) 20collaborating with the petroleum industry on matters relating to UK
petroleum and its recovery;

(e) acquiring, using and supplying information on matters relating to UK
petroleum and its recovery;

(f) encouraging development of the petroleum industry in relation to the
25recovery of UK petroleum;

(g) carrying out, or providing advice and assistance to those carrying out,
research and development in relation to technology and products
relevant to the recovery of UK petroleum;

(h) functions which relate to—

(i) 30the security of petroleum supplies, or

(ii) the resilience of the petroleum industry;

(i) international co-operation on matters relating to UK petroleum and its
recovery, including—

(i) resolution of disputes relating to the entitlements of different
35countries in relation to petroleum fields, and

(ii) openness and accountability in the management of natural
resources.

(6) The matters relating to UK petroleum and its recovery which fall within
paragraphs (b), (c), (d) and (e) of subsection (5) include—

(a) 40maximising the economic recovery of UK petroleum, and

(b) improving the supply chain of UK petroleum.

(7) The amount or amounts of licensing levy payable by licence holders must be—

(a) set out in the regulations, or

(b) calculated in accordance with a method set out in the regulations.

(8) 45The licensing levy is payable to the Secretary of State.

(9) Schedule 7 (the licensing levy) has effect.

(10) Schedule 7 does not limit the provision that may be made by regulations under
this section.

(11) The Secretary of State may, by regulations, amend subsection (3)(b) by adding,
removing or amending a reference to any regulations made under section 188
of the Energy Act 2004.

(12) In this section and Schedule 7—

• 5“charging period” means a period in respect of which licensing levy is
  payable;

• “licensing levy” means the levy provided for in regulations under this
  section;

• “UK petroleum” means petroleum (within the meaning given in section 1
  10of the Petroleum Act 1998) which for the time being exists in its natural
  condition in strata beneath—

  (a)

  the territorial sea adjacent to the United Kingdom, and

  (b)

  the sea in any area designated under section 1(7) of the
  Continental Shelf Act 1964.

15Petroleum and geothermal energy in deep-level land

39 Petroleum and geothermal energy: right to use deep-level land

(1) A person has the right to use deep-level land in any way for the purposes of
exploiting petroleum or deep geothermal energy.

(2) Land is subject to the right of use (whether for the purposes of exploiting
20petroleum or deep geothermal energy) only if it is—

(a) deep-level land, and

(b) within a landward area.

(3) But that does not prevent deep-level land that is within a landward area from
being used for the purposes of exploiting petroleum or deep geothermal
25energy outside a landward area.

(4) Deep-level land is any land at a depth of at least 300 metres below surface level.

(5) This section confers the right to use Scottish deep-level land for the purposes
of exploiting deep geothermal energy only in cases where the sole, or main, use
of that energy is to be, or is, the generation of electricity.

40 30Further provision about the right of use

(1) The ways in which the right of use may be exercised include—

(a) drilling, boring, fracturing or otherwise altering deep-level land;

(b) installing infrastructure in deep-level land;

(c) keeping, using or removing any infrastructure installed in deep-level
35land;

(d) passing any substance through, or putting any substance into, deep-
level land or infrastructure installed in deep-level land;

(e) keeping, using or removing any substance put into deep-level land or
into infrastructure installed in deep-level land.

(2) 40The purposes for which the right of use may be exercised include—

(a) searching for petroleum or deep geothermal energy;

(b) assessing the feasibility of exploiting petroleum or deep geothermal
energy;

(c) preparing for exploiting petroleum or deep geothermal energy;

(d) decommissioning, and other activity which falls to be continued or
undertaken, in consequence of activities undertaken for the purposes of
exploiting petroleum or deep geothermal energy.

(3) 5The right of use includes the right to leave deep-level land in a different
condition from the condition it was in before an exercise of the right of use
(including by leaving any infrastructure or substance in the land).

(4) The right of use—

(a) does not give a person (“R”) any power which is greater than, or
10different from, the power which R would have had if the right had been
granted by a person legally entitled to grant it; and

(b) does not relieve a person (“R”) from any obligation or liability to which
R would have been subject if the right had been granted by a person
legally entitled to grant it.

(5) 15A person (“L”) who owns land (the “relevant land”) is not liable, as the owner
of that land, in tort or delict for any loss or damage which is attributable to the
exercise, or proposed exercise, of the right of use by another person (whether
in relation to the relevant land or any other land).

(6) For that purpose, loss or damage is not attributable to the exercise, or proposed
20exercise, of the right of use (in particular) if, or to the extent that, the loss or
damage is attributable to a deliberate omission by L.

(7) There is a “deliberate omission by L” if L, as owner of the relevant land,
decides—

(a) not to do an act, or

(b) 25not to allow another person to do an act,

and the circumstances at the time of that decision were such that L would not
have had to bear any of the costs incurred (whether by L or any other person)
in doing or allowing the act.

(8) Section 39 and this section bind the Crown.

41 30Payment scheme

(1) The Secretary of State may, by regulations, require relevant energy
undertakings to make payments in respect of the proposed exercise, or
exercise, of the right of use.

(2) The regulations may require payments to be made—

(a) 35to owners of relevant land or interests in relevant land;

(b) to other persons for the benefit of areas in which relevant land is
situated.

(3) The regulations may—

(a) specify the amount or amounts of payments;

(b) 40make provision for determining the amount or amounts of payments.

(4) The regulations may require relevant energy undertakings to provide the
Secretary of State, or any other specified person, with specified information
about—

(a) the proposed exercise, or exercise, of the right of use;

(b) the making of payments in accordance with regulations under this
section.

(5) Before making any regulations under this section, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

42 5Notice scheme

(1) The Secretary of State may, by regulations, require relevant energy
undertakings to give notice of the proposed exercise, or exercise, of the right of
use.

(2) The regulations may require relevant energy undertakings—

(a) 10to give notice—

(i) to owners of relevant land or interests in relevant land;

(ii) to persons of other specified descriptions;

(b) to display notice within the area in which relevant land is situated or
elsewhere;

(c) 15to publish notice (otherwise than by displaying the notice).

(3) The regulations may make provision about the information which the notice is
to contain, including provision about information relating to—

(a) any payment scheme regulations which are in force;

(b) the application of any payment scheme regulations to the proposed
20exercise, or exercise, of the right of use;

(c) the method for obtaining a payment under any payment scheme
regulations.

(4) The regulations may make provision about the manner in which notice is to be
given, displayed or published, including provision requiring notice to be—

(a) 25displayed at specified places or places of specified descriptions;

(b) published in specified publications or publications of specified
descriptions.

(5) The regulations may require relevant energy undertakings to provide the
Secretary of State, or any other specified person, with specified information
30about—

(a) the proposed exercise, or exercise, of the right of use;

(b) the giving of notice in accordance with regulations under this section.

(6) Before making regulations under this section, the Secretary of State must
consult such persons as the Secretary of State considers appropriate.

(7) 35In this section “payment scheme regulations” means regulations under section
41.

43 Payment and notice schemes: supplementary provision

(1) Regulations under section 41 or 42 may make provision about the enforcement
of relevant requirements, including provision for the imposition of financial
40penalties in respect of breach of relevant requirements.

(2) Regulations under section 41 or 42 may confer a function on—

(a) the Secretary of State, or

(b) any other person, apart from the Scottish Ministers or the Welsh
Ministers.

(3) The functions that may be imposed include—

(a) a duty (including a restriction or prohibition);

(b) 5a function involving the exercise of a discretion;

(c) a requirement to consult.

(4) The provisions of sections 41 and 42 and this section which specify particular
kinds of provision that may be made in regulations under section 41 or 42 do
not limit the powers conferred by that section to make such regulations.

(5) 10The Secretary of State must carry out a review of sections 41 and 42 and the
preceding provisions of this section as soon as reasonably practicable after the
end of the period of 5 years beginning with the day on which they come into
force.

(6) The Secretary of State must by regulations—

(a) 15repeal section 41, and make any consequential amendments (including
repeals) of the other provisions of this Act that the Secretary of State
considers appropriate, if the relevant conditions are met in relation to
the power under section 41;

(b) repeal section 42, and make any consequential amendments (including
20repeals) of the other provisions of this Act that the Secretary of State
considers appropriate, if the relevant conditions are met in relation to
the power under section 42.

(7) The relevant conditions are met in relation to the power under section 41 or the
power under section 42 if—

(a) 25that power is not exercised within the period of 7 years beginning with
the day on which that section comes into force, and

(b) the Secretary of State is satisfied that there is no convincing case for
retaining that power.

44 Interpretation

(1) 30For the purposes of deciding whether land is deep-level land—

(a) the depth of a point in land below surface level is the distance between
that point and the surface of the land vertically above that point; and

(b) in determining what is the surface of the land, any building or other
structure on the land, and any water covering the land, must be
35ignored.

(2) In sections 39 to 43 and this section—

• “deep geothermal energy” means geothermal energy in deep-level land
  (including in water or any other fluid in deep-level land);

• “deep-level land” has the meaning given in section 39(4);

• 40“landward area” has the same meaning as in the Petroleum Licensing
  (Exploration and Production) (Landward Areas) Regulations 2014 (see
  regulation 1(2) of those Regulations);

• “petroleum” has the same meaning as in Part 1 of the Petroleum Act 1998
  (see section 1 of that Act);

• 45“relevant energy undertaking” means a person who proposes to exercise,
  or exercises, the right of use;

Infrastructure BillPage 50

• “relevant land” means land in respect of which the right of use is
  proposed to be, or is, exercised;

• “relevant requirement” means a requirement imposed by regulations
  under section 41 or 42;

• 5“right of use” means the right conferred by section 39;

• “Scottish deep-level land” means deep-level land in Scotland or beneath
  waters adjacent to Scotland;

• “specified” means specified in regulations under section 41 or 42;

• “substance” includes electricity and any other intangible thing.

(3) 10The power of the Secretary of State to make regulations under section 4 of the
Petroleum Act 1998 includes power to make such amendments of the
definition of “landward area” in subsection (2) above as the Secretary of State
considers appropriate in consequence of any other exercise of the power under
section 4 of the 1998 Act.

15Renewable heat incentives

45 Renewable heat incentives

(1) Section 100 of the Energy Act 2008 (renewable heat incentives) is amended in
accordance with subsections (2) to (4).

(2) After subsection (1) insert—

“(1A) 20Regulations under this section may confer any function on any person.

(1B) Regulations under this section may provide for a function conferred on
a person to be exercisable on behalf of another person.””

(3) In subsection (2)—

(a) in paragraph (a), for the words before sub-paragraph (i) substitute—

“(a) 25make provision giving any of the following persons
entitlements to payments (“RHI payments”) in specified
circumstances—”;”

(b) in paragraph (b), for “such payments” substitute “RHI payments”;

(c) after paragraph (b) insert—

“(ba) 30make provision about the circumstances in which, and
descriptions of persons to whom, the whole or a part of
an entitlement to an RHI payment may be assigned
(whether the person has the entitlement by virtue of
regulations under paragraph (a) or regulations under
35this paragraph);

(bb) authorise or require the Secretary of State, the
Authority, designated fossil fuel suppliers, or any
person with any other administration function, to make
an RHI payment—

(i) 40to the person who is entitled to the payment by
virtue of regulations under paragraph (a), or

(ii) where that entitlement has been wholly or partly
assigned in accordance with regulations under
this section, to the person or persons for the time
45being enjoying the entitlement or any part of it;”;”

(d) in paragraph (c), for “such payments” substitute “RHI payments”;

(e) for paragraph (d) substitute—

“(d) authorise or require a person to provide specified
information;”;”

(f) in paragraph (e), omit “to the Secretary of State or the Authority”;

(g) 5in paragraph (h), omit “for the Secretary of State or the Authority”;

(h) omit paragraph (i);

(i) at the end insert—

“(j) authorise the Secretary of State to make payments to a
person in respect of the exercise by the person of
10functions under regulations under this section;

(k) make provision about the resolution of disputes relating
to the exercise of functions under regulations under this
section, including provision about arbitration or appeals
(which may, in particular, provide for the person
15conducting an arbitration or determining an appeal to
order the payment of costs or compensation).””

(4) In subsection (3), after the definition of “fossil fuel supplier” insert—

• “““other administration function” means a function relating to the
  administration of a scheme established under this section, other
  20than a function conferred by regulations under subsection
  (2)(bb);”.”

(5) Section 105 of the Energy Act 2008 (Parliamentary control of subordinate
legislation) is amended in accordance with subsections (6) to (8).

(6) In subsection (2)—

(a) 25in paragraph (a), omit sub-paragraph (vi);

(b) after paragraph (aa) insert—

“(ab) regulations which contain (whether alone or together
with other provision) affirmative resolution provision
made under section 100 (renewable heat incentives);”.”

(7) 30In subsection (3), after “(2)(a)” insert “, (ab)”

(8) After subsection (3) insert—

“(3A) Provision made under section 100 is affirmative resolution provision
if—

(a) the provision is made under any of the powers which always
35attract the affirmative resolution procedure, or

(b) the provision—

(i) is not made under any of those powers, and

(ii) meets condition A, B, C or D.

(3B) The powers which always attract the affirmative resolution procedure
40are the powers conferred by—

(a) section 100(2)(c), (e), (f), (g), (h) and (k),

(b) section 100(5), and

(c) section 100(6).

(3C) Provision meets condition A if—

(a) 45it is made under the power conferred by section 100(2)(bb), and

(b) it requires a designated fossil fuel supplier to make a payment
under an RHI scheme.

(3D) Provision meets condition B if—

(a) it confers an administration function on a person who is not the
5Secretary of State or the Authority, and

(b) the time when the provision comes into force will be the first
time that an administration function under the RHI scheme
concerned is exercisable by a person who is not the Secretary of
State or the Authority.

(3E) 10Provision meets condition C if—

(a) it is made under a power conferred by paragraph (ba) or (bb)(ii)
of section 100(2),

(b) it is made in relation to an RHI scheme that was in existence
immediately before the coming into force of this subsection, and

(c) 15it is the first provision to be made under that power in relation
to that RHI scheme.

(3F) Provision meets condition D if—

(a) it is made under a power conferred by paragraph (a), (b), (ba),
(bb), (d) or (j) of section 100(2),

(b) 20it is made in relation to an RHI scheme that was not in existence
immediately before the coming into force of this subsection, and

(c) it is the first provision to be made under that power in relation
to that RHI scheme.

(3G) In deciding whether provision meets condition B, the following matters
25must be ignored—

(a) for the purposes of subsection (3D)(a): any provision which
confers a payment function on designated fossil fuel suppliers;

(b) for the purposes of subsection (3D)(b): any payment function
under the RHI scheme concerned which (before the time when
30the provision comes into force) is, or has been, exercisable by
designated fossil fuel suppliers.

(3H) The fact that provision is to some extent made under a power conferred
by section 100(1), (1A) or (1B) does not prevent that provision from
being taken (for the purposes of subsections (3A) to (3F)) as being made
35under any other power conferred by section 100.

(3I) In subsections (3B) to (3H) and this subsection—

• “administration function” means a function relating to the
  administration of an RHI scheme;

• “designated fossil fuel suppliers” has the same meaning as in
  40section 100;

• “payment function” means a function of making a payment under
  an RHI scheme (whether the function authorises or requires the
  making of the payment);

• “RHI scheme” means a scheme under section 100 to facilitate and
  45encourage renewable generation of heat.””

(9) In section 105 of the Utilities Act 2000 (general restrictions on disclosure of
information), in subsection (3)—

(a) in paragraph (a), omit “or section 100”;

(b) after paragraph (a) insert—

“(aa) it is made for the purpose of facilitating any functions of
any person under section 100 of the Energy Act 2008;”.”

Reimbursement of persons who have met expenses

46 5Reimbursement of persons who have met expenses of making electrical
connections

(1) The Electricity Act 1989 is amended in accordance with this section.

(2) In section 19 (power to recover expenditure)—

(a) omit subsections (2) and (3);

(b) 10after subsection (3) insert—

“(3A) Schedule 5B (reimbursement of persons who have met
expenses) has effect.”;”

(c) in subsection (4), after “this section” insert “and Schedule 5B”.

(3) After Schedule 5A insert—

““SCHEDULE 5B

Reimbursement of persons who have met expenses

8 15Power to make regulations

(1) The Secretary of State may, by regulations, make provision entitling
the relevant electricity distributor to exercise the reimbursement
powers in cases where conditions A, B, C and D are met.

(2) Condition A is met if any electric line or electrical plant is provided
20for the purpose of making a connection (the “first connection”)—

(a) between premises and a distribution system, or

(b) between two distribution systems.

(3) Condition B is met if a payment in respect of first connection
expenses is made by one or more of the following persons—

(a) 25a person requiring the first connection in pursuance of
section 16(1);

(b) a person who otherwise causes the first connection to be
made (including by means of contractual arrangements).

(4) Condition C is met if any electric line or electric plant provided for
30the purpose of making the first connection is used for the purpose of
making another connection (the “second connection”)—

(a) between premises and a distribution system, or

(b) between two distribution systems.

(5) Condition D is met if the second connection is made within the
35prescribed period after the first connection was made.

(6) “First connection expenses” are any expenses reasonably incurred by
a person in providing any electric line or electric plant for the
purpose of making the first connection.

(7) It does not matter whether the first connection, or the second
connection, is made by an electricity distributor or a person of
another description.

9 The reimbursement powers

(1) 5The “reimbursement powers” are—

(a) the power to demand a reimbursement payment from—

(i) a person requiring the second connection in
pursuance of section 16(1), or

(ii) a person who otherwise causes the second connection
10to be made (including by means of contractual
arrangements); and

(b) the power to apply the reimbursement payment in making
such payments as may be appropriate towards reimbursing
any persons for any payments they were previously required
15to make in respect of first connection expenses (whether that
requirement arose by virtue of paragraph (a) or otherwise).

(2) A “reimbursement payment” is a payment, of such amount as may
be reasonable in all the circumstances, in respect of first connection
expenses.

10 20Other provision about regulations under this Schedule