Infrastructure Bill [HL]

Insert the following new Clause—

“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
petroleum 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 energy 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
16sole, or main, use of that energy is to be, or is, the generation of electricity.”

Line 16, after second “of” insert “heat and”

Line 16, at end insert—

“(6)     No later than 6 months after the passing of this Act, the Secretary of State
must, in consultation with the Committee on Climate Change, publish a
report on fugitive green-house gas emissions from on-shore energy
extraction in the UK.

(7)     The report must include proposals for the measurement, monitoring,
reporting and managing of existing and future fugitive emissions.”

Insert the following new Clause—

“Further 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 land;

(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)     The 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)     The 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
different 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)     Section (Petroleum and geothermal energy: right to use deep-level land) and this
section bind the Crown.”

Insert the following new Clause—

“Payment 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)   to 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)   make provision for determining the amount or amounts of
13payments.

(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.”

Line 13, at end insert-—

“(c)   make provision for any contingency fund prescribed by the
Secretary of State under subsection (3A).

Insert the following new Clause—

“Notice 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)   to 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)   to 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
exercise, 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)   displayed 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
about—

(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)     In this section “payment scheme regulations” means regulations under
section (Payment scheme).”

Insert the following new Clause—

“Payment and notice schemes: supplementary provision

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

(2)     Regulations under section (Payment scheme) or (Notice scheme) 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)   a function involving the exercise of a discretion;

(c)   a requirement to consult.

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

(5)     The Secretary of State must carry out a review of sections (Payment scheme)
and (Notice scheme) 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)   repeal section (Payment scheme), 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 (Payment
scheme);

(b)   repeal section (Notice scheme), 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 (Notice
scheme).

(7)     The relevant conditions are met in relation to the power under section
(Payment scheme) or the power under section (Notice scheme) if—

(a)   that 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.”

Insert the following new Clause—

“Interpretation

(1)     For 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
ignored.

(2)     In sections (Petroleum and geothermal energy: right to use deep-level land) to
(Payment and notice schemes: supplementary provision) 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 (Petroleum and
geothermal energy: right to use deep-level land)(4);

“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);

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

“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 (Payment scheme) or (Notice scheme);

“right of use” means the right conferred by section (Petroleum and
geothermal energy: right to use deep-level land);

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

“specified” means specified in regulations under section (Payment
scheme) or (Notice scheme);

“substance” includes electricity and any other intangible thing.

(3)     The 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.”

Insert the following new Clause—

“Shale gas extraction: baseline monitoring

(1)     No shale gas extraction may take place before the operator has measured
the baseline levels of methane in the groundwater over a 12 month period.

(2)     After section 199(1) of the Water Resources Act 1991 (notice etc. of mining
operations which may affect water conservation) insert—

Insert the following new Clause—

“Shale gas extraction: planning

(1)     All applications for planning permission to the relevant local authority
(including for sites of less than one hectare) for the purpose of extracting
shale gas must include—

(a)   an Environmental Impact Assessment; and

(b)   the well-by-well disclosure of—

(i)   the composition of any hydraulic fluid to be employed; and

(ii)   the quantity of such hydraulic fluid to be employed.

(2)     In table 2 of Schedule 2 to the Town and Country Planning (Environmental
Impact Assessment) Regulations 2011, after section 2(d)(iii) insert—

(3)     The list of statutory consultees for applications for shale gas extraction shall
include the relevant local water company.”

Insert the following new Clause—

“Shale gas extraction: monitoring requirements

(1)     The Secretary of State must by regulations require operators to meet certain
environmental monitoring obligations in respect of shale gas extraction.

(2)     Regulations made under subsection (1) shall provide that—

(a)   no shale gas extraction may take place at a site until the operator has
provided the Environment Agency or Scottish Environment
Protection Agency, as appropriate, with specified data about that
site in respect of the preceding 12 months, and

(b)   the operator must continue to provide the Environment Agency or
Scottish Environment Protection Agency with specified data about
a site throughout the period in which shale gas extraction takes
place at that site.

(3)     In subsection (2), “specified data” includes, but is not limited to, levels of
methane in the groundwater, ecological studies and surface water.

(4)     Regulations under subsection (1) must be made by statutory instrument.

(5)     A statutory instrument containing regulations under subsection (1) may
not be made unless a draft of the instrument has been laid before and
approved by a resolution of each House of Parliament.”

Insert the following new Clause—

“Application of emissions limit duty

In Schedule 4 to the Energy Act 2013 (application and modification of
emissions limit duty), after paragraph 1(1)(b)(ii) insert—

[Withdrawn]

Page 28, line 23, leave out “this Part” and insert “any of the following provisions of
this Part—

(a)   section 26 or 27 or Schedule 5;

(b)   section (Maximising economic recovery of UK petroleum) or (Levy on
holders of certain energy industry licences) or Schedule (The Licensing
Levy);

(c)   any of sections (Petroleum and geothermal energy: right to use deep-level
land) to (Interpretation).”

Page 28, line 24, leave out from “repeal” to end of line 25 and insert “or revoke any
enactment”

Page 28, leave out line 25 and insert “the application of any enactment (but, in the
case of an Act, only if the Act was passed before the end of the Session in which
this Act is passed).”

Insert the following new Clause—

“PART 4A

LEVEL CROSSINGS

Level crossing bill

Within 12 months of the day on which this Act is passed, Her Majesty’s
Government shall introduce into Parliament a bill to give effect to the
recommendations of the Law Commission and the Scottish Law
Commission on level crossings (Cm 8711), and which is substantially based
on the draft Level Crossings Bill prepared by the Law Commission and the
Scottish Law Commission.”

Insert the following new Clause—

“PART 4A

IMPACT OF INFRASTRUCTURE SPENDING ON COSTS FOR CONSUMERS

Provision of impact data

(1)     The Treasury may by regulations make provision for the regulators to
provide data, in a manner prescribed by the regulations, about the
anticipated impact of infrastructure spending on the cost of products for
consumers.

(2)     Regulations made under subsection (1) may prescribe—

(a)   the type of infrastructure spending about which data must be
provided;

(b)   the nature of the data to be provided;

(c)   the methodology for collating and manipulating the data, including
assumptions that should be made;

(d)   the form in which the data should be presented;

(e)   the persons that should receive a copy of the data.

(3)     The regulations may make different provision for different regulators
where necessary.

(4)     The Treasury must scrutinise data provided under subsection (1) and
assess—

(a)   the cumulative impact of infrastructure spending on the cost of
products for consumers;

(b)   the affordability of any anticipated increases in the cost of products
for consumers, taking into account factors other than infrastructure
spending that are also likely significantly to impact the cost of
products; and

(c)   differences in affordability between different groups of consumers,
if any.

(5)     The Treasury must publish data provided under subsection (1) and the
assessment made under subsection (4) in such manner as it reasonably
deems appropriate.

(6)     The Treasury must take into account the assessment in subsection (4) in
making decisions about the extent, prioritisation or timing of infrastructure
spending.

(7)     In this section—

(a)   “consumer” means any business, individual or household of
individuals that purchases a product or products;

(b)   “product” means a good or service the provision of which is
regulated by a regulator;

(c)   “a regulator” means any of—

(i)   the Northern Ireland Authority for Utility Regulation;

(ii)   the Office of Communications;

(iii)   the Office of Gas and Electricity Markets;

(iv)   the Office of Rail Regulation;

(v)   the Water Industry Commission for Scotland; and

(vi)   the Water Services Regulation Authority,

and “the regulators” means all of them.”

Insert the following new Clause—

“Revenue from shale gas: sovereign wealth fund

(1)     The Secretary of State may, by regulation, establish a sovereign wealth
fund to receive and deploy revenue from the extraction and sale of shale
gas.

(2)     The regulations shall provide—

(a)   that the fund shall receive no less than 50% of any revenue received
by the United Kingdom Government from any activity connected
with the extraction and sale of shale gas;

(b)   that the assets of the fund shall be deployed to serve long term
public objectives other than those connected with monetary and
exchange rate policy;

(c)   that the assets of the fund may be deployed in the United Kingdom
or overseas;

(d)   that no more than 4% of the assets of the fund may be paid out in
any one year; and

(e)   for the governance, independent oversight and transparent
reporting of the activities of the fund.”

Page 28, line 35, after “26” insert “or (Levy on holders of certain energy licences)(11)”

Page 28, line 35, at end insert—

“(ba)   regulations under section (Payment scheme) or (Notice scheme), or”

Page 28, line 36, leave out “amend or repeal” and insert “amend, repeal or modify
the application of”

Page 29, line 18, leave out “, 13 and 14” and insert “and 13 to 15”

Page 29, line 29, leave out subsection (4) and insert—

“(4)     In Part 4 (energy)—

(a)   sections 26 and 27, sections (Maximising economic recovery of UK
petroleum) and (Levy on holders of certain energy industry licences),
sections (Petroleum and geothermal energy: right to use deep-level land)
to (Interpretation), and 28 and Schedules 5 and (The Licensing Levy)
extend to England and Wales and Scotland, and

(b)   section (The Extractive Industries Transparency Initiative) extends to
England and Wales, Scotland and Northern Ireland.”

[Withdrawn]

[Withdrawn]

Page 30, line 9, leave out “and 25” and insert “, 25 and (Provision in building
regulations for off-site carbon abatement measures)”

Page 30, line 14, leave out subsection (5) and insert—

“(5)     In Part 4 (energy)—

(a)   sections 26 and 27, section (The Extractive Industries Transparency
Initiative), sections (Petroleum and geothermal energy: right to use deep-
level land) to (Interpretation), and Schedule 5 come into force at the
end of the period of two months beginning with the day on which
this Act is passed,

(b)   sections (Maximising economic recovery of UK petroleum) and (Levy on
holders of certain energy industry licences) and Schedule (The licensing
levy) come into force on such day as the Secretary of State appoints
by regulations, and

(c)   section 28 comes into force on the day on which this Act is passed.”

[Withdrawn]

Page 30, line 14, leave out “months” and insert “years”

Line 9, after “charges;” insert “to make provision enabling building regulations to
provide for off-site carbon abatement measures;”

[Withdrawn]

Line 10, after “facilities;” insert “to make provision about maximising economic
recovery of petroleum in the United Kingdom; to provide for a levy to be charged
on holders of certain energy licences; to enable Her Majesty’s Revenue and
Customs to exercise functions in connection with the Extractive Industries
Transparency Initiative;”

Line 10, after “facilities;” insert “to make provision for underground access to
deep-level land for the purposes of exploiting petroleum or deep geothermal
energy;”

Line 10, after “facilities;” insert “to make provision about level crossings;”