Water Bill

Second
marshalled
List of Amendments
to be moved
on report

The amendments have been marshalled in accordance with the Order of 17th March 2014, as follows—

Clauses 49 to 74
Schedule 9
Clause 75
Schedule 10
Clauses 76 and 77
Schedule 11
Clauses 78 to 80
Schedule 12
Clause 81

[Amendments marked * are new or have been altered]

After Clause 50

LORD WHITTY

LORD GRANTCHESTER

88ZA

Insert the following new Clause—

“Onshore oil or gas activities: effect on water environment

In Part 1 of Schedule 5 to the Environmental Permitting (England and
Wales) Regulations 2010 (environmental permits) after paragraph 13 there
is inserted—

“Onshore oil or gas activities: effect on water environment

 13A. Without prejudice to the operation of regulation 35(2) and
paragraph 5(1)(d) of Schedule 10 and of regulation 35(2) and
paragraph 7(j) of Schedule 20, the regulator shall refuse an
application for the grant or variation of an environmental permit or
for the transfer in whole or in part of an environmental permit if—

(a)   the regulated facility to which the application for, or transfer
of, the environmental permit relates is to be carried on as
part of an onshore oil or gas activity; and

(b)   the regulator is not satisfied that the applicant or the
proposed transferee has made or will make adequate
financial provision for preventing or mitigating pollution of
the water environment, by ensuring all of the following—

(i)   operation of the regulated facility in accordance
with the environmental permit;

(ii)   compliance with any enforcement notice or
suspension notice or prohibition notice or mining
waste facility closure notice or landfill closure notice
which may be served on the applicant or transferee
by the regulator under these regulations;

(iii)   compliance with any order of the High Court which
may be obtained against the applicant or transferee
under regulation 42 for the purpose of securing
compliance with any of the notices listed in sub-
paragraph (ii);

(iv)   compliance with any order of any court issued
under regulation 44 against the applicant or
transferee; and

(v)   recovery by the regulator of its costs upon any
exercise of its power against the applicant or
transferee under regulation 57;

(c)   for the purpose of this paragraph “onshore oil or gas
activity” means any activity for the purpose of exploration
for or extraction of onshore oil and gas;

(d)   for the purpose of this paragraph “adequate provision by
way of financial security” means financial provision which
is sufficient in value, secure and available when required.””

Clause 51

LORD DE MAULEY

88A

Page 108, line 2, leave out “relating to flooding” and insert “arising from a flood”

88B

Page 108, line 8, leave out subsections (3) to (5) and insert—

“(3)     The Secretary of State may by regulations make provision as to levels of
reinsurance premiums payable by relevant insurers under the FR Scheme,
and may make different provision for different purposes.”

88C

Page 108, line 17, leave out from “different” to end of line 18 and insert “purposes
by reference to the value of the household premises insured.”

88D

Page 108, line 18, at end insert—

“( )     In this section “flood insurance” means insurance in respect of risks arising
from a flood.”

THE EARL OF LYTTON

89

Page 108, line 18, at end insert—

“(6A)    Regulations under subsection (5) shall provide that every policy which is
subject to a levy for the purposes of the Flood Reinsurance Scheme shall be
covered by the Flood Reinsurance Scheme.”

LORD WHITTY

LORD GRANTCHESTER

89A

Page 108, line 19, at end insert—

“( )     Prior to making any regulations under subsection (5), the Secretary of State
shall require the Committee on Climate Change to provide current and
projected estimates of the number of properties that would be eligible for—

(a)   inclusion in the Flood Reinsurance Scheme;

(b)   the value of levy required under section 53; and

(c)   the likelihood of an additional levy or contributions being needed
from time to time.

( )     The Secretary of State shall use the advice of the Committee on Climate
Change when prescribing a target number under section 58(1).”

After Clause 51

LORD WHITTY

LORD GRANTCHESTER

89B

Insert the following new Clause—

“Flood Reinsurance Scheme: report on the inclusion of leaseholders

(1)     The Secretary of State must prepare and publish a report on the basis of the
inclusion and exclusion of leasehold and tenanted properties in the FR
Scheme.

(2)     The report shall include a breakdown of—

(a)   the total number of leasehold and tenanted properties which are in
the risk areas covered by the FR Scheme;

(b)   the number of leasehold and tenanted properties where the land is
controlled by large multisite commercial operators;

(c)   the number of leasehold and tenanted properties which are owned
by smaller landlord operators; and

(d)   the cost of including in the FR Scheme properties in paragraph (a)
and each of paragraphs (b) and (c).

(3)     The Secretary of State must lay a copy before Parliament within 6 months
of this Act coming into force.”

Clause 53

THE EARL OF LYTTON

90

Page 108, line 34, at end insert—

“(1A)    The levy referred to in subsection (1)(a) shall be proportionate to the
relevant council tax band relating to the household premises concerned.”

BARONESS PARMINTER

LORD KREBS

90ZA*

Page 108, line 43, at end insert “and this is to include guidance about the
application of surplus funds during the period of operation of the scheme to
support uptake of resilience measures by householders”

LORD DE MAULEY

90A

Page 109, leave out line 10 and insert “obtain the consent of the FR Scheme
administrator, which is not to be unreasonably withheld.”

Clause 54

LORD DE MAULEY

90B

Page 109, line 26, at end insert—

“( )     Regulations under subsection (1) may require the FR Scheme administrator
to provide the following information to relevant insurers who have issued
insurance policies that are reinsured under the FR Scheme, so that those
insurers may supply the information to holders of those policies—

(a)   information about how to find out about the levels of flood risk to
which an area in which household premises are situated is subject
and how any flood risk may be managed;

(b)   information about the FR Scheme, including information about the
effect of section 51(2)(b) (transition to risk-reflective pricing of flood
insurance for household premises).”

90BA

Page 110, line 23, leave out paragraph (a)

90C

Page 111, line 1, after “section” insert “—

“flood insurance” has the meaning given in section 51;”

Clause 56

LORD DE MAULEY

90CA

Page 111, line 14, leave out subsection (1) and insert—

“(1)     The Commissioners for Her Majesty’s Revenue and Customs may disclose
relevant HMRC council tax information to any person who requires that
information for either of the following descriptions of purposes—

(a)   purposes connected with such scheme as may be established and
designated in accordance with section 51 (in any case arising before
any scheme is so designated);

(b)   purposes connected with the FR Scheme (in any case arising after
the designation of a scheme in accordance with section 51).

(1A)    A person to whom information is disclosed under subsection (1)(a) or (b)—

(a)   may use the information only for the purposes mentioned in
subsection (1)(a) or (b), as the case may be;

(b)   may not further disclose the information except with the consent of
the Commissioners.”

90CB

Page 111, line 19, at end insert—

““relevant HMRC council tax information” means HMRC council tax
information relating to premises which are household premises and
consisting of any of the following—

(a)   the address (including the postcode) of the premises;

(b)   the council tax valuation band in which the premises fall;

(c)   information about when the premises were constructed;

(d)   the National Land and Property Gazetteer unique property
reference number for the premises;

(e)   the unique address reference number allocated to the
premises by the Valuation Office of Her Majesty’s Revenue
and Customs.”

90CD

Page 111, line 20, leave out subsection (3) and insert—

“(3)     The Secretary of State may by regulations amend the definition of “relevant
HMRC council tax information” in subsection (2).

(4)     If the Secretary of State by regulations under subsection (3) amends the
definition of “relevant HMRC council tax information” to add further
descriptions of information, those regulations may include the provision
described in subsection (5).

(5)     The regulations may provide that if a person discloses, in contravention of
subsection (1A)(b), information which is relevant HMRC council tax
information by virtue of the regulations and which relates to a person
whose identity—

(a)   is specified in the disclosure, or

(b)   can be deduced from it,

section 19 of the Commissioners for Revenue and Customs Act 2005
(wrongful disclosure) applies in relation to that disclosure as it applies in
relation to a disclosure, in contravention of section 20(9) of that Act, of
revenue and customs information relating to a person whose identity is
specified in the disclosure or can be deduced from it.

(6)     The Secretary of State must consult the Commissioners for Her Majesty’s
Revenue and Customs before making regulations under subsection (3).”

After Clause 56

LORD WHITTY

LORD GRANTCHESTER

90CE

Insert the following new Clause—

“Flood Reinsurance Scheme: commencement

(1)     The Secretary of State may by order appoint a day on which section 51 is to
come into force.

(2)     An order under subsection (1)—

(a)   shall be made by statutory instrument; and

(b)   may not be made unless a draft has been laid before and approved
by a resolution of each House of Parliament.

(3)     The Secretary of State may only make an order under subsection (1) if a
Flood Reinsurance Scheme national database has been established.

(4)     Any Flood Reinsurance Scheme national database must—

(a)   be accessible by the public;

(b)   outline a property’s risk of flooding; and

(c)   indicate if the property is covered by the Flood Reinsurance
Scheme.”

Clause 57

LORD DE MAULEY

90D

Page 111, line 37, leave out “relating to the effects of flooding” and insert “arising
from a flood”

After Clause 63

LORD WHITTY

LORD GRANTCHESTER

90DA

Insert the following new Clause—

“Appeals on removal from the Flood Reinsurance Scheme

(1)     The Secretary of State shall by order establish a right of appeal for a
household which has been removed from the Flood Reinsurance Scheme.

(2)     The Financial Conduct Authority shall be responsible for the hearing and
administration of appeals under subsection (1).

(3)     An order under subsection (1)—

(a)   shall be made by statutory instrument; and

(b)   may not be made unless a draft has been laid before and approved
by resolution of each House of Parliament.

(4)     An order under subsection (1) must be made before the Flood Reinsurance
Scheme has been implemented.”

Clause 69

LORD DE MAULEY

90E

Page 120, line 30, at end insert—

“(A1)    In this Part “insurer” means—

(a)   a person who—

(i)   is authorised for the purposes of the Financial Services and
Markets Act 2000 (see section 31 of that Act), and

(ii)   has permission to carry on the activities specified in Article
10 of the Financial Services and Markets (Regulated
Activities) Order 2001 (S.I. 2001/544), or

(b)   a member of the Society (within the meaning of the Lloyd’s Act
1982).

(A2)     The Secretary of State may by regulations amend the definition of “insurer”
in subsection (A1).”

90F

Page 120, line 31, after “define” insert ““relevant insurer””

90G

Page 120, leave out lines 32 and 33

90H

Page 120, line 38, at end insert—

““flood”;”

90J

Page 120, line 39, leave out ““flood insurance”” and insert—

““flood risk””

90K

Page 121, line 7, after “subsection” insert “(3) or”

Clause 70

LORD DE MAULEY

90L

Page 121, line 33, leave out “(including” and insert “(whether or not otherwise
capable of being transferred, and including”

Clause 71

LORD DE MAULEY

90M

Page 122, line 7, at end insert—

“(1A)    Subsection (1) does not apply in relation to an order under section 70(3) if
the only provision made by the order is provision for, or in connection
with, the transfer of property, rights and liabilities.”

90N

Page 122, line 16, at end insert—

“(za)   regulations under section 51 (the Flood Reinsurance Scheme),

(zb)   regulations under section 52 (Scheme administrator),”

90P

Page 122, line 17, leave out “53(1)” and insert “53”

90PA

Page 122, line 17, at end insert—

“( )   regulations under section 56,”

90Q

Page 122, line 17, at end insert—

“(aa)   regulations under section 54 (Scheme administration),

(ab)   regulations under section 57 (flood insurance obligations),

(ac)   the first regulations to be made under section 58 (target number),

(ad)   regulations under section 59 or 60 (information),

(ae)   the first regulations to be made under section 61 (register of
premises subject to greater flood risk),”

90R

Page 122, line 19, at end insert—

“(ba)   regulations under section 65 (compliance reports),”

90S

Page 122, line 21, leave out “or” and insert—

“(da)   regulations under section 69 (interpretation), or”

90T

Page 122, line 24, at end insert—

“( )     If a draft of an instrument containing an order under section 70(3) would,
apart from this subsection, be treated for the purposes of the Standing
Orders of either House of Parliament as a hybrid instrument, it is to
proceed in that House as if it were not a hybrid instrument.”

After Clause 73

LORD HOWARD OF RISING

EARL CATHCART

91

Insert the following new Clause—

“Internal drainage boards: apportionment of drainage expenses

(1)     The Land Drainage Act 1991 is amended as follows.

(2)     In section 37(5) (apportionment of drainage expenses), at end insert—

“(f)   in the case of—

(i)   any land to which none of the paragraphs (a) to (d)
applies and it is not possible to calculate a value
under paragraph (e)(ii) as the relevant rating lists no
longer exist or cannot be located, or

(ii)   land to which one of paragraphs (a) to (c) does apply
but for which the relevant rating lists no longer exist
or cannot be located,

the Secretary of State may by order define an equivalent measure for valuing the land”.”

After Clause 74

LORD DE MAULEY

91A

Insert the following new Clause—

“Sustainable drainage systems: non-performance bonds

In Schedule 3 to the Flood and Water Management Act 2010 (sustainable
drainage), in paragraph 12 (non-performance bonds), in sub-paragraph
(4)(c)—

(a)   after “sums received” there is inserted “from a person”;

(b)   for “the developer” there is substituted “that person”.”

Schedule 11

LORD DE MAULEY

91B*

Page 225, line 6, at end insert—

“Changes in water supply licensing

1A  (1)     A section 77 order may make provision in connection with the
introduction of new water supply licences.

(2)     A section 77 order may in particular—

(a)   make provision for old water supply licences to continue in
effect, subject to provision made by a qualifying scheme;

(b)   make provision about the granting of a new water supply licence
on application made by the holder of an old water supply licence.

(3)     A qualifying scheme is a scheme that—

(a)   is made by the Water Services Regulation Authority, and

(b)   contains such provision as is described in sub-paragraph (4).

(4)     The provision mentioned in sub-paragraph (3)(b) is—

(a)   provision for the revocation of all old water supply licences—


(i)   on the first day on which it would be possible for a new
water supply licence to come into effect, or


(ii)   in accordance with arrangements in the scheme and
before a day specified in or determined under the
scheme,

(b)   provision for compensation to be paid by the Water Services
Regulation Authority in connection with the revocation under
the scheme of an old water supply licence,

(c)   provision, in a case where the scheme allows a holder’s old water
supply licence and new water supply licence to have effect at the
same time, for preventing the holder supplying water to
premises in reliance on the old water supply licence where—


(i)   the premises supplied are the premises of a person who
was not a customer of the holder immediately before the
grant of the new licence, and


(ii)   the premises could be supplied with water in reliance on
the new water supply licence,

(d)   provision for compensation to be paid by the Water Services
Regulation Authority in connection with the restriction imposed
on an old water supply licence under paragraph (c),

(e)   provision about the determination of—


(i)   claims for compensation payable under the scheme, and


(ii)   appeals from the determination of such claims, and

(f)   provision satisfying such other requirements as may be specified
in a section 77 order, including requirements about the persons
who may claim compensation, the measure of compensation and
matters by reference to which compensation may be reduced.

(5)     Requirements imposed under sub-paragraph (4)(f) may allow the
scheme to make provision by virtue of which the compensation payable
in a particular case may be nil.

(6)     A qualifying scheme may include provision about—

(a)   the making of claims for compensation;

(b)   the matters to be proved by a claimant.

(7)     Sub-paragraphs (4) to (6) are not exhaustive of what may be included in
a qualifying scheme.

(8)     A section 77 order may make provision for a relevant person specified in
the order, or appointed by the Secretary of State, to determine—

(a)   claims for compensation payable under a qualifying scheme;

(b)   appeals from the determinations of such claims.

(9)     In sub-paragraph (8) “relevant person” means—

(a)   the Water Services Regulation Authority, except in relation to
appeals from the determination of claims for compensation,

(b)   the Competition and Markets Authority, or

(c)   any other public authority (within the meaning of section 6 of the
Human Rights Act 1998).

(10)     A section 77 order may provide for functions of the Competition and
Markets Authority (“the CMA”) relating to compensation payable under
a qualifying scheme to be carried out on behalf of the CMA by a group
constituted for the purpose by the chair of the CMA under Schedule 4 to
the Enterprise and Regulatory Reform Act 2013.

Modification of conditions of old water supply licences

1B  (1)     Where a section 77 order makes provision for old water supply licences
to continue in effect, that provision may include provision for applying
new sections 17I to 17R to old water supply licences, with such
modifications as appear to the Secretary of State to be appropriate.

(2)     Provision under sub-paragraph (1) may include provision for treating a
reference to a new water supply licence as including a reference to an old
water supply licence.

(3)     Provision under sub-paragraph (1) may include provision for treating—

(a)   a reference to a standard condition of a new water supply licence
as including a reference to a standard condition of an old water
supply licence, if the two conditions are in, or as nearly as may be
are in, the same terms;

(b)   a reference to a standard condition of a new water supply licence
giving the holder a new retail authorisation as including a
reference to a standard condition of an old water supply licence
giving the holder a retail authorisation, if the two conditions are
in, or as nearly as may be are in, the same terms;

(c)   a reference to a standard condition of a new water supply licence
giving the holder a new restricted retail authorisation as
including a reference to a standard condition of an old water
supply licence giving the holder a retail authorisation, if the two
conditions are in, or as nearly as may be are in, the same terms;

(d)   a reference to a standard condition of a new water supply licence
giving the holder a new wholesale authorisation as including a
reference to a standard condition of an old water supply licence
giving the holder a supplementary authorisation, if the two
conditions are in, or as nearly as may be are in, the same terms.

(e)   a reference to a standard condition of a new water supply licence
giving the holder a new supplementary authorisation as
including a reference to a standard condition of an old water
supply licence giving the holder a supplementary authorisation,
if the two conditions are in, or as nearly as may be are in, the
same terms.

Changes in water supply licensing: Wales

1C  (1)     A section 77 order may make provision in connection with the extension
of new retail authorisations and new wholesale authorisations to the use
of supply systems of water undertakers whose areas are wholly or
mainly in Wales, where that extension takes place after the introduction
of new water supply licences.

(2)     A section 77 order may in particular include provision for or in relation
to the payment by the Water Services Regulation Authority of
compensation to any person holding a new water supply licence who—

(a)   following the coming into force of any provision of this Act, is
unable to carry on activities that had previously been authorised
by a new restricted retail authorisation, or a new restricted retail
authorisation and a new supplementary authorisation, given by
the licence as a result of—


(i)   a new retail authorisation or a new wholesale
authorisation or both having been required in respect of
them, and


(ii)   the person’s licence not having been varied to add a new
retail authorisation or a new wholesale authorisation or
both, because the person did not apply to vary the licence,
or did not apply to add the appropriate authorisation or
authorisations, or because the person’s application to
vary the licence was refused or granted only as to one
authorisation, and

(b)   has suffered loss or damage as a result of not having a licence that
enables the person to carry on all those activities.

Introduction of sewerage licensing

1D  (1)     A section 77 order may make provision in connection with the
introduction of sewerage licences.

(2)     A section 77 order may in particular include provision for or in relation
to the payment by the Water Services Regulation Authority of
compensation to any person who—

(a)   before 31 March 2014 was carrying on any activities in relation to
the sewerage system of a sewerage undertaker,

(b)   following the coming into force of any provision of this Act—


(i)   is unable to continue to carry on those activities as a result
of their having been prohibited,


(ii)   is unable to continue to carry on those activities as a result
of a sewerage licence having been required in respect of
them, and the person’s not having applied for, or the
person’s having been refused, a sewerage licence, or


(iii)   is unable to continue to carry on those activities in the
same manner as a result of the person’s having been
granted a sewerage licence the effect of which is to restrict
the carrying on of the activities, and

(c)   has suffered loss or damage as a result of—


(i)   those activities having been prohibited,


(ii)   a sewerage licence not having been granted, or


(iii)   those activities having been restricted.”

91C*

Page 227, line 11, leave out “for a relevant period”

91D*

Page 227, line 43, at end insert—

““sewerage licence” means a sewerage licence granted under section
17BA of the Water Industry Act 1991.”

Clause 80

LORD DE MAULEY

91E

Page 125, line 6, after “56” insert “, so far as relating to the power to disclose
information under section 56(1)(a)”

92

Page 125, line 18, after “water” insert “or sewerage”

93

Page 125, line 24, at end insert—

“( )   section (Report on water abstraction reform);”

93A

Page 125, line 29, at end insert—

“( )   section (Sustainable drainage systems: non-performance bonds);”

94

Page 125, line 36, at end insert—

“( )     The power of the Secretary of State or the Welsh Ministers to make an order
under subsection (3) is to be exercisable by statutory instrument.”

Schedule 12

LORD DE MAULEY

95

Page 232, line 23, leave out “paragraph 3” and insert “this Schedule”

96

Page 232, line 25, leave out “(as amended by section 2 of this Act)”

97

Page 232, line 29, leave out “(as inserted by section 4 of this Act)”

Prepared 28th March 2014