Infrastructure Bill [HL]

Amendments
to be moved
in grand committee

[Supplementary to the Third Marshalled List]

Clause 19

LORD DAVIES OF OLDHAM

LORD MCKENZIE OF LUTON

79AA*

Page 20, line 19, leave out “or” and insert “to exercise a discretion, or with the
consent of the Secretary of State, to allow”

Clause 20

LORD DAVIES OF OLDHAM

LORD MCKENZIE OF LUTON

79D*

Page 21, line 2, at end insert—

“except that it does not apply to any condition designed to mitigate direct impacts on public amenity, health or well-being.”

After Clause 25

LORD TEVERSON

93B*

Insert the following new Clause—

“Carbon compliance standard for new homes

(1)     The Secretary of State must within six months of the passing of this Act
make regulations under section 1(1) of the Building Act 1984 for the
purpose of ensuring that all new homes built from 2016 achieve a carbon
compliance standard.

(2)     For the purpose of subsection (1), “carbon compliance standard” means an
improvement on the target carbon dioxide emission rate as set out in the
Building Regulations 2006 of—

(a)   60% in the case of detached houses;

(b)   56% in the case of attached houses;

(c)   44% in the case of flats.

(3)     Any further regulations made by the Secretary of State requiring persons
constructing new homes to achieve reductions in carbon dioxide emissions
elsewhere than on the site of such homes shall only be applicable in
circumstances where the improvements set out in subsection (2) have been
achieved.”

After Schedule 5

BARONESS KRAMER

94B*

Insert the following new Schedule—

“SCHEDULE

THE LICENSING LEVY

The amount of the levy

1      Regulations may provide for the licensing levy payable in respect of a
charging period to increase or decrease over that period.

Basis of amount

2      Regulations may provide for an amount of licensing levy payable by a
licence holder to be calculated by reference to the size of an area to which
an energy industry licence held by that person relates.

Amounts payable by different categories of licence holders

3      Regulations may provide for different categories of licence holders to
pay—

(a)   different amounts of licensing levy, or

(b)   amounts of licensing levy calculated, set or determined in
different ways.

Exemptions

4      Regulations may provide for a category of licence holder to be exempt
from payment of the licensing levy.

Unpaid levy

5   (1)     Regulations may provide for interest (at a rate specified in, or
determined under, the regulations) to be charged in respect of unpaid
amounts of licensing levy.

(2)     Regulations may provide for unpaid amounts of licensing levy (together
with any interest charged) to be recoverable as a civil debt.

Conferral of functions

6      Regulations may confer a function (including a function involving the
exercise of a discretion) on—

(a)   the Secretary of State, or

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

Categories of licence holders

7   (1)     Regulations (including regulations of the kinds mentioned in
paragraphs 3 and 4) may provide for a category of licence holder to
consist of persons who hold a kind of energy industry licence specified
in the regulations.

(2)     The regulations may (in particular) specify any of the following kinds of
energy industry licence—

(a)   licences granted under a particular enactment;

(b)   licences of a particular description granted under a particular
enactment;

(c)   licences, or licences of a particular description (including a
description falling within paragraph (a) or (b)), granted—


(i)   before a particular time,


(ii)   after a particular time, or


(iii)   during a particular period.

Interpretation

8      In this Schedule—

“energy industry licence” means a licence falling within section
(Levy on holders of certain energy licences)(1);

“licence holder” means a person who holds an energy industry
licence (whether the person was granted it or has, after its grant,
acquired it by assignment or other means);

“regulations” means regulations under section (Levy on holders of
certain energy licences
)(1).”

After Clause 27

BARONESS KRAMER

95ZA*

Insert the following new Clause—

“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 economic 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)   holders 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)     The 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)     A strategy may not impose an obligation which relates to the
powers of a person to make commercial arrangements unless—

(a)   the strategy imposes the obligation on relevant participants
in the petroleum industry, and

(b)   the Secretary of State considers that the obligation will—

(i)   stop commercial arrangements made by those
relevant participants, or associates of those relevant
participants, from having a significant adverse effect
on the principal objective, or

(ii)   reduce the extent to which such arrangements have
such an effect.

(5)     In this section—

“associate” has the meaning given in section 91 of the Energy
Act 2011;

“relevant participant in the petroleum industry” means—

(a)   the holder of a petroleum licence,

(b)   an operator under a petroleum licence, or

(c)   an owner of upstream petroleum infrastructure.

(6)     For provision about producing and revising a strategy, see sections
9F and 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
Part 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 2011 (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)   to 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—

(a)   planning and carrying out activities as the licence holder,
and

(b)   making commercial arrangements which relate to the
person’s activities as the licence holder (in so far as this does
not fall within paragraph (a)).

(2)     A person who is an operator under a petroleum licence must act in
accordance with the current strategy or strategies when—

(a)   planning and carrying out activities as the operator under
the licence, and

(b)   making commercial arrangements which relate to the
person’s activities as the operator under the licence (in so far
as this does not fall within paragraph (a)).

(3)     A person who is the owner of upstream petroleum infrastructure
must act in accordance with the current strategy or strategies
when—

(a)   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), and

(b)   making commercial arrangements which relate to the
person’s activities as the owner of upstream petroleum
infrastructure (in so far as this does not fall within
paragraph (a)).

(4)     A person must act in accordance with the current strategy or
strategies when 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)   consider 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)   owners 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)     The 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
Parliament, 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 the 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
functions 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 Producing 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)   produce 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)     In 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
strategy, 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)     Before—

(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
strategy.

(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)     If, 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 draft 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
strategy 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 is 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)     In 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)     A 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)     But 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)   “gas processing facility”;

(b)   “oil processing facility”;

(c)   “upstream petroleum pipeline”.

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

(a)   a 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 Other 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
responsible for organising or supervising any of the
operations 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;

“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;

“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 in its natural condition in strata beneath relevant UK
waters;

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

95ZB*

Insert the following new Clause—

“Levy on holders of certain energy industry licences

(1)     The Secretary of State may, by regulations, provide for a levy to be imposed
on, and 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
(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)     The 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)   that 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
licensing 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)   having 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
recovery 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)   section 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 infrastructure);

(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)   collaborating 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 recovery 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)   the 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 countries 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)   maximising 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)     The licensing levy is payable to the Secretary of State.

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

(10)     Schedule (The licensing levy) 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 (The licensing levy)—

“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 of 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.”

Clause 28

BARONESS KRAMER

95ZC*

Page 28, line 23, leave out “this Part” and insert “sections 26, 27, (Maximising
economic recovery of UK petroleum
) and (Levy on holders of certain energy licences and
Schedules 5 and (The Licensing Levy)”

Clause 29

BARONESS KRAMER

96ZB*

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

Clause 30

BARONESS KRAMER

97A*

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

“(4)     In Part 4 (energy)—

(a)   sections 26, 27, (Maximising economic recovery of UK petroleum), (Levy
on holders of certain energy licences
) 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.”

Clause 31

BARONESS KRAMER

98AA*

Page 30, line 14, leave subsection (4) and insert—

“(4)     In Part 4 (energy)—

(a)   sections 26, 27 and (The Extractive Industries Transparency Initiative)
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 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.”

In the Title

BARONESS KRAMER

99A*

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;”

Prepared 10th July 2014