Energy Bill (HL Bill 56)

Energy BillPage 30

(2) In Part 4 of the Marine and Coastal Access Act 2009 (marine licences), after
section 110 insert—

“Fees

110A Fees: oil and gas activities for which marine licence needed

(1) 5The Secretary of State may charge fees in connection with carrying out
functions under this Part, so far as relating to oil and gas activities for
which a marine licence is needed.

(2) The fees are to be determined by or in accordance with regulations
made by the Secretary of State.

(3) 10The regulations may authorise the fees to be determined by or in
accordance with a scheme made by the Secretary of State.

(4) If the regulations provide for determining fees in connection with
functions of the Secretary of State under section 67, the fees are to be
those provided for by the regulations, and not those (if any) provided
15for by regulations under section 67(2) or determined under section
67(5).

(5) “Oil and gas activities” are activities which relate to operations
regulated under any of the provisions listed in subsection (6).

(6) The provisions are—

(a) 20section 2 of the Petroleum (Production) Act 1934 (searching and
boring for, and getting, petroleum);

(b) Part 1 of the Petroleum Act 1998 (searching and boring for, and
getting, petroleum);

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

(d) 25Part 4 of the Petroleum Act 1998 (abandonment of offshore
installations);

(e) Part 1 of the Energy Act 2008 (gas importation and storage);

(f) Part 4 of the Energy Act 2008 (oil and gas).

(7) See Chapter 1 for when a marine licence is needed for activities.”

58 30Validation of fees charged

(1) A fee charged by the Secretary of State at any time before the date on which this
Act is passed (“the relevant time”) is taken to have been lawfully charged if the
condition in subsection (2) is met.

(2) The condition is that the fee was charged in connection with carrying out
35functions under any of the provisions listed in subsection (3), as the provision
in question had effect at the relevant time.

(3) The provisions are—

(a) Part 4A of the Energy Act 2008 (works detrimental to navigation: oil,
gas, carbon dioxide and pipelines);

(b) 40Part 4 of the Marine and Coastal Access Act 2009 (marine licences), so
far as relating to oil and gas activities for which a marine licence under
that Part is needed;

Energy BillPage 31

(c) the Merchant Shipping (Oil Pollution Preparedness, Response and Co-
operation Convention) Regulations 1998 (S.I. 1998/1056S.I. 1998/1056);

(d) the Offshore Petroleum Production and Pipe-lines (Assessment of
Environmental Effects) Regulations 1999 (S.I. 1999/360S.I. 1999/360);

(e) 5the Offshore Petroleum Activities (Conservation of Habitats)
Regulations 2001 (S.I. 2001/1754S.I. 2001/1754).

(4) “Oil and gas activities” are activities which relate to operations regulated
under any of the provisions listed in subsection (5).

(5) The provisions are—

(a) 10section 2 of the Petroleum (Production) Act 1934 (searching and boring
for, and getting, petroleum);

(b) Part 1 of the Petroleum Act 1998 (searching and boring for, and getting,
petroleum);

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

(d) 15Part 4 of the Petroleum Act 1998 (abandonment of offshore
installations);

(e) Part 1 of the Energy Act 2008 (gas importation and storage);

(f) Part 4 of the Energy Act 2008 (oil and gas).

(6) See Chapter 1 of Part 4 of the Marine and Coastal Access Act 2009 for when a
20marine licence under that Part is needed for activities.

Part 4 Wind power

59 Onshore wind generating stations in England and Wales

In section 36 of the Electricity Act 1989 (consent of Secretary of State required
25for construction or extension of generating stations), after subsection (1C)
insert—

(1D) Subsection (1) does not apply to an English or Welsh onshore wind
generating station.

(1E) “English or Welsh onshore wind generating station” means a
30generating station that—

(a) generates electricity from wind, and

(b) is situated in England or Wales, but not in waters in or adjacent
to England or Wales up to the seaward limits of the territorial
sea.”

60 35Onshore wind power: closure of renewables obligation on 31 March 2016

(1) The Electricity Act 1989 is amended as follows.

(2) After section 32LB (renewables obligation closure orders: procedure) insert—

32LC Onshore wind generating stations: closure of renewables obligation

(1) No renewables obligation certificates are to be issued under a
40renewables obligation order in respect of electricity generated after 31
March 2016 by an onshore wind generating station which is accredited
after that date.

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(2) In subsection (1)—

  • “accredited” is to be construed in accordance with the definition of
    “accreditation” in article 2 of the Renewables Obligation Order
    2009 (S.I. 2009/785S.I. 2009/785);

  • 5“onshore wind generating station” means a generating station
    that—

    (a)

    generates electricity from wind, and

    (b)

    is situated in England, Wales or Scotland, but not in
    waters in or adjacent to England, Wales or Scotland up
    10to the seaward limits of the territorial sea.

(3) The Secretary of State may by regulations make further provision for
the purposes of giving effect to subsection (1).

(4) The reference in subsection (1) to a renewables obligation order is to
any renewables obligation order made under section 32 (whenever
15made, and whether or not made by the Secretary of State).

(5) Power to make provision in a renewables obligation order or a
renewables obligation closure order (and any provision contained in
such an order) is subject to subsection (1) and regulations under this
section.

(6) 20This section is not otherwise to be taken as affecting power to make
provision in a renewables obligation order or renewables obligation
closure order.

(7) Regulations under this section are not to be made unless a draft of the
the instrument containing them has been laid before and approved by
25a resolution of each House of Parliament.”

(3) In section 106(2)(a) (negative procedure for regulations under Act), after
“Secretary of State” insert “(other than regulations under section 32LC)”.

(4) The Renewables Obligation Closure Order 2014 (S.I. 2014/2388S.I. 2014/2388) is amended as
follows.

(5) 30In article 2(1) (interpretation), after the definition of “network operator”
insert—

  • ““onshore wind generating station” means a generating station
    that—

    (a)

    generates electricity from wind, and

    (b)

    35is situated in England, Wales or Scotland, but not in
    waters in or adjacent to England, Wales or Scotland up
    to the seaward limits of the territorial sea;”.

(6) In article 3 (closure of renewables obligation on 31st March 2017)—

(a) in the heading, after “not large solar pv stations” insert “or onshore
40wind generating stations accredited after 31st March 2016”;

(b) in paragraph (1), after “not a large solar pv station” insert “or an
onshore wind generating station accredited after 31st March 2016”.

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Part 5 Final Provisions

61 Regulations

(1) A power to make regulations under this Act is exercisable by statutory
5instrument.

(2) A power to make regulations under this Act includes power—

(a) to make different provision for different purposes (including areas);

(b) to make provision generally or in relation to specific cases.

(3) A power to make regulations under this Act (except the power conferred by
10section 62) includes power to make incidental, consequential, supplemental,
transitional or transitory provision or savings.

(4) A statutory instrument containing—

(a) regulations under section 2 which amend or repeal any Act or
provision of an Act, or

(b) 15regulations under section 40,

may not be made unless a draft of the instrument has been laid before, and
approved by a resolution of, each House of Parliament.

(5) A statutory instrument containing any other regulations under this Act is
subject to annulment in pursuance of a resolution of either House of
20Parliament.

(6) Subsection (5) does not apply to a statutory instrument containing regulations
under section 62.

62 Commencement

(1) This Part comes into force on the day on which this Act is passed.

(2) 25Part 3 comes into force two months after the day on which this Act is passed.

(3) The remaining provisions of this Act come into force on such day or days as the
Secretary of State may by regulations appoint.

(4) Regulations under subsection (3) may include transitional or transitory
provision or savings.

63 30Short title and extent

(1) This Act may be cited as the Energy Act 2016.

(2) An amendment or repeal made by this Act has the same extent as the provision
to which it relates.

(3) Subject to subsection (2), this Act extends to the whole of the United Kingdom.

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Section 2

Schedule Transfer of functions to the OGA

Part 1 Primary legislation

5Petroleum Act 1998

1 The Petroleum Act 1998 is amended as follows.

2 In section 9A(2) (principal objective and the strategy), for “Secretary of State”
substitute “OGA”.

3 In section 9B (exercise of certain functions)—

(a) 10for “Secretary of State” (including in the heading) substitute “OGA”,
and

(b) after paragraph (c) insert—

(ca) exercising functions under Part 2 of the Energy Act
2016,”.

4 15Omit section 9D.

5 (1) Section 9E (security and resilience functions) is amended as follows.

(2) In subsection (1), for “Secretary of State’s” substitute “OGA’s”.

(3) In subsection (2), for “Secretary of State” substitute “OGA”.

(4) In the heading, for “Secretary of State’s” substitute “OGA’s”.

6 (1) 20Section 9F (producing and revising a strategy) is amended as follows.

(2) Omit subsection (1).

(3) For subsection (2) substitute—

(2) After the first strategy has been produced, the OGA may—

(a) produce a new strategy, or

(b) 25revise a current strategy,

whenever the OGA thinks appropriate.”

(4) In subsection (3), for “Secretary of State” substitute “OGA”.

(5) Omit subsection (4).

7 (1) Section 9G (procedure for producing and revising a strategy) is amended as
30follows.

(2) In subsection (1)—

(a) omit paragraph (a), and

(b) for “Secretary of State” substitute “OGA”.

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(3) In subsection (2), for “Secretary of State” (in both places) substitute “OGA”.

(4) For subsection (3) substitute—

(3) If, after complying with that duty, the OGA decides to proceed with
the draft (in its original form or with modifications), the OGA must
5send the draft to the Secretary of State.

(3A) The Secretary of State must either—

(a) lay a copy of the draft before each House of Parliament, or

(b) return the draft to the OGA and publish the Secretary of
State’s reasons for doing so.

(3B) 10The Secretary of State may return the draft to the OGA only if the
Secretary of State thinks that—

(a) the OGA has failed to comply with subsection (2), or

(b) the strategy will not enable the principal objective to be met.”

(5) In subsection (4), for “The Secretary of State” substitute “Where a copy of the
15draft has been laid in accordance with subsection (3A)(a), the OGA”.

(6) In subsection (5), for “Secretary of State” substitute “OGA”.

(7) In subsection (6), for “Secretary of State” substitute “OGA”.

8 In section 14(1) (construction and use of pipelines), for “Secretary of State”
substitute “OGA”.

9 20In section 15 (authorisations), for “Secretary of State” (in each place)
substitute “OGA”.

10 In section 16 (compulsory modifications of pipelines), for “Secretary of
State” (in each place) substitute “OGA”.

11 (1) Section 17 (acquisition of rights to use pipelines) is amended as follows.

(2) 25In subsection (1), for “Secretary of State” substitute “OGA”.

(3) In subsection (2)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(4) In subsection (3)—

(a) 30for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” substitute “it”.

(5) In subsection (5), for “Secretary of State” substitute “OGA”.

(6) In subsection (7), for “Secretary of State” substitute “OGA”.

(7) In subsection (8)—

(a) 35for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

12 (1) Section 17F (acquisition of rights to use controlled petroleum pipelines) is
amended as follows.

(2) In subsection (2), for “Secretary of State” substitute “OGA”.

(3) 40In subsection (5), for “Secretary of State” substitute “OGA”.

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(4) In subsection (6)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(5) In subsection (7)—

(a) 5for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “he” substitute “it”.

(6) In subsection (8), for “Secretary of State” substitute “OGA”.

(7) In subsection (9)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) 10for “he” substitute “it”.

(8) In subsection (10), for “Secretary of State” substitute “OGA”.

13 (1) Section 17G (section 17F: supplemental) is amended as follows.

(2) In subsection (1)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) 15for “himself” substitute “itself”.

(3) In subsection (2)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “him” substitute “it”.

(4) In subsection (4)—

(a) 20for “Secretary of State” substitute “OGA”,

(b) for “he” substitute “it”, and

(c) for “him” substitute “it”.

(5) In subsection (6), for “Secretary of State” substitute “OGA”.

(6) In subsection (7)—

(a) 25for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(7) In subsection (8), for “Secretary of State” substitute “OGA”.

14 (1) Section 17GA (controlled petroleum pipeline subject to Norwegian access
system) is amended as follows.

(2) 30In subsection (2), for “Secretary of State” substitute “OGA”.

(3) In subsection (5)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) in paragraph (a), for “he” substitute “it”.

(4) In subsection (6), for “Secretary of State” substitute “OGA”.

(5) 35In subsection (7), for “Secretary of State” substitute “OGA”.

(6) In subsection (8), for “he is obliged to do so under the Framework
Agreement, the Secretary of State shall make his” substitute “the Framework
Agreement so requires, the OGA shall make its”.

15 (1) Section 17GB (section 17GA: supplemental) is amended as follows.

(2) 40In subsection (1)—

Energy BillPage 37

(a) for “Secretary of State” substitute “OGA”, and

(b) for “him” substitute “it”.

(3) In subsection (2)—

(a) for “Secretary of State” substitute “OGA”,

(b) 5for “he is required to do so” substitute “the disclosure is required”,
and

(c) omit “on him”.

16 (1) Section 18 (termination of authorisations) is amended as follows.

(2) In subsection (1)(b), for “Secretary of State” substitute “OGA”.

(3) 10In subsection (2)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(4) In subsection (3)(b), for “Secretary of State” substitute “OGA”.

(5) In subsection (4)—

(a) 15for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

(6) In subsection (5)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” (in each place) substitute “it”.

(7) 20In subsection (6), for “Secretary of State” (in both places) substitute “OGA”.

(8) In subsection (7)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “him” substitute “it”.

(9) In subsection (8), for “Secretary of State” (in both places) substitute “OGA”.

(10) 25In subsection (9)—

(a) for “Secretary of State” substitute “OGA”, and

(b) for “he” substitute “it”.

17 (1) Section 19 (vesting of pipelines on termination or subsequent issue of
authorisations) is amended as follows.

(2) 30In subsection (1), for “Secretary of State” substitute “OGA”.

(3) In subsection (2)—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “he” substitute “the OGA”.

18 (1) Section 20 (inspectors etc) is amended as follows.

(2) 35For subsection (1) substitute—

(1) The OGA may appoint, as inspectors to assist it in the execution of
this Part of this Act, such number of persons appearing to it to be
qualified for the purpose as it considers appropriate from time to
time.”

(3) 40In subsection (2)(a)(ii), for “Secretary of State” substitute “OGA”.

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19 (1) Section 21 (enforcement) is amended as follows.

(2) In subsection (1)(c), for “Secretary of State” substitute “OGA”.

(3) In subsection (2), for “Secretary of State” substitute “OGA”.

(4) In subsection (3), for “Secretary of State” substitute “OGA”.

(5) 5In subsection (4)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” substitute “it”.

(6) In subsection (5), for “Secretary of State” (in each place) substitute “OGA”.

20 In section 25 (orders and regulations), for subsection (1) substitute—

(1) 10Before making any order or regulations under this Part of this Act,
the Secretary of State must consult—

(a) the OGA, and

(b) in the case of regulations, such organisations in the United
Kingdom as the Secretary of State considers are
15representative of persons who will be affected by the
regulations.”

21 In section 28(1) (interpretation of Part 3), for the definition of “heard”
substitute—

  • ““heard” means—

    (a)

    20in relation to section 27, heard on behalf of the Secretary of
    State by a person appointed by the Secretary of State for the
    purpose, and

    (b)

    otherwise, heard on behalf of the OGA by a person appointed
    by the OGA for the purpose.”

22 25In section 45A (abandoned wells), for “Secretary of State” (in each place)
substitute “OGA”.

23 In section 46(1) (Northern Ireland and Isle of Man shares of petroleum
revenue), for “Secretary of State” (in each place) substitute “OGA”.

24 (1) Section 47A (factors to take into account) is amended as follows.

(2) 30In subsection (1)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “him” substitute “it”.

(3) In subsection (2A), for “Secretary of State” substitute “OGA”.

(4) In the heading, for “Secretary of State” substitute “OGA”.

25 35In section 48 (interpretation), after subsection (1) insert—

(1A) In this Act “the OGA” means the Oil and Gas Authority.”

26 (1) Schedule 2 (authorisations) is amended as follows.

(2) In paragraph 2—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) 40in paragraph (b), for “his” substitute “its”.

(3) In paragraph 3—

Energy BillPage 39

(a) for “Secretary of State” (in each place) substitute “OGA”,

(b) for “his” substitute “its”, and

(c) for “he” substitute “it”.

27 (1) Paragraph 4 is amended as follows.

(2) 5In sub-paragraph (1)—

(a) for “Secretary of State” substitute “OGA”,

(b) for “his” substitute “its”, and

(c) for “him” substitute “it”.

(3) In sub-paragraph (2)—

(a) 10for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “his” substitute “its”.

(4) In sub-paragraph (3)—

(a) for “Secretary of State” substitute “OGA”,

(b) for “his” substitute “its”, and

(c) 15for “he” substitute “it”.

28 (1) Paragraph 5 is amended as follows.

(2) In sub-paragraph (1)—

(a) for “Secretary of State” (in both places) substitute “OGA”,

(b) for “his opinion he” substitute “its opinion it”, and

(c) 20for “he thinks” substitute “it thinks”.

(3) In sub-paragraph (2)—

(a) for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “his opinion, he” substitute “its opinion, it”.

29 In paragraph 6, for “Secretary of State” (in both places) substitute “OGA”.

30 25In paragraph 7—

(a) for “Secretary of State” (in each place) substitute “OGA”, and

(b) for “he” substitute “it”.

31 (1) Paragraph 8 is amended as follows.

(2) In sub-paragraph (1)—

(a) 30for “Secretary of State” (in both places) substitute “OGA”, and

(b) for “he” substitute “it”.

(3) In sub-paragraph (2)—

(a) for “Secretary of State” substitute “OGA”,

(b) for “he” (in the first place) substitute “it”, and

(c) 35in paragraph (b), for the words following “notice in” substitute “such
manner as it considers appropriate”.

32 (1) Paragraph 9 is amended as follows.

(2) In sub-paragraph (1), for “Secretary of State” substitute “OGA”.

(3) In sub-paragraph (2), for “Secretary of State” (in each place) substitute
40“OGA”.