Energy Bill [HL]

revised
second
Marshalled
list of Amendments
to be moved
on report

The amendments have been marshalled in accordance with the Order of 19th October 2015, as follows—

Clauses 65 to 69
Title

[Amendments marked * are new or have been altered]

Clause 66

LORD BOURNE OF ABERYSTWYTH

78B

Page 38, line 5, leave out subsection (1)

BARONESS WORTHINGTON

LORD GRANTCHESTER

78C

Page 38, line 5, at end insert—

“( )     In section 32LA(1) after “order” insert “subject to subsection (2A)”.

( )     after section 32LA(2) insert—

“(2A)    The power to make a renewables obligation closure order applying
to Scotland may only be exercised by Scottish Ministers.””

LORD BOURNE OF ABERYSTWYTH

78D

Page 38, line 6, at beginning insert “In Part 1 of the Electricity Act 1989 (electricity
supply),”

78E

Page 38, line 10, leave out “which is accredited after that date”

78F

Page 38, line 11, at end insert—

“(1A)    Subsection (1) does not apply to electricity generated in the
circumstances set out in any one or more of sections 32LD to 32LL.”

78G

Page 38, line 12, leave out “subsection (1)” and insert “this section and sections
32LD to 32LL”

78H

Page 38, leave out lines 13 to 15

78J

Page 38, leave out lines 22 and 23

78K

Page 38, line 29, leave out “regulations under this section” and insert “sections
32LD to 32LL”

78L

Page 38, leave out lines 34 to 36

78M

Page 38, line 37, leave out subsection (3)

78N

Page 39, line 7, leave out “accredited after 31st March 2016”

78P

Page 39, line 9, leave out “accredited after 31st March 2016”

BARONESS WORTHINGTON

LORD GRANTCHESTER

LORD WALLACE OF TANKERNESS

LORD TEVERSON

78Q

Leave out Clause 66

After Clause 66

LORD BOURNE OF ABERYSTWYTH

78R

Insert the following new Clause—

“Onshore wind power: circumstances in which certificates may be issued after
31 March 2016

(1)     Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows.

(2)     After section 32LC (inserted by section 66) insert—

“32LD           Onshore wind generating stations accredited, or additional
capacity added, on or before 31 March 2016

The circumstances set out in this section are where the electricity
is—

(a)   generated by an onshore wind generating station which was
accredited on or before 31 March 2016, and

(b)   generated using—

(i)   the original capacity of the station, or

(ii)   additional capacity which in the Authority’s view
first formed part of the station on or before 31 March
2016.

32LE          Onshore wind generating stations accredited, or additional
capacity added, between 1 April 2016 and 31 March 2017: grid or
radar delay condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 April 2016 and ending with 31 March 2017,
and

(ii)   in respect of which the grid or radar delay condition
is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 April 2016 and ending with 31
March 2017, and

(iii)   the grid or radar delay condition is met in respect of
the additional capacity.

32LF          Onshore wind generating stations accredited, or additional
capacity added, on or before 31 March 2017: approved
development condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited on or before 31 March 2017,
and

(ii)   in respect of which the approved development
condition is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station on or before 31 March
2017, and

(iii)   the approved development condition is met in
respect of the additional capacity.

32LG          Onshore wind generating stations accredited, or additional
capacity added, between 1 April 2017 and 31 March 2018: grid or
radar delay condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 April 2017 and ending with 31 March 2018,

(ii)   in respect of which the approved development
condition is met, and

(iii)   in respect of which the grid or radar delay condition
is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 April 2017 and ending with 31
March 2018,

(iii)   the approved development condition is met in
respect of the additional capacity, and

(iv)   the grid or radar delay condition is met in respect of
the additional capacity.

32LH          Onshore wind generating stations accredited, or additional
capacity added, between 1 April 2017 and 31 December 2017:
investment freezing condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 April 2017 and ending with 31 December
2017, and

(ii)   in respect of which both the approved development
condition and the investment freezing condition are
met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 April 2017 and ending with 31
December 2017, and

(iii)   both the approved development condition and the
investment freezing condition are met in respect of
the additional capacity.

32LI          Onshore wind generating stations accredited, or additional
capacity added, between 1 January 2018 and 31 December 2018:
grid or radar delay condition met

The circumstances set out in this section are where the electricity
is—

(a)   generated using the original capacity of an onshore wind
generating station—

(i)   which was accredited during the period beginning
with 1 January 2018 and ending with 31 December
2018,

(ii)   in respect of which both the approved development
condition and the investment freezing condition are
met, and

(iii)   in respect of which the grid or radar delay condition
is met, or

(b)   generated using additional capacity of an onshore wind
generating station, where—

(i)   the station was accredited on or before 31 March
2016,

(ii)   in the Authority’s view, the additional capacity first
formed part of the station during the period
beginning with 1 January 2018 and ending with 31
December 2018,

(iii)   both the approved development condition and the
investment freezing condition are met in respect of
the additional capacity, and

(iv)   the grid or radar delay condition is met in respect of
the additional capacity.

32LJ          The approved development condition

(1)     This section applies for the purposes of sections 32LF to 32LI.

(2)     The approved development condition is met in respect of an
onshore wind generating station if the documents specified in
subsections (4), (5) and (6) were provided to the Authority with the
application for accreditation of the station.

(3)     The approved development condition is met in respect of
additional capacity if the documents specified in subsections (4), (5)
and (6) were provided to the Authority on or before the date on
which the Authority made its decision that the additional capacity
could form part of an onshore wind generating station.

(4)     The documents specified in this subsection are—

(a)   evidence that—

(i)   planning permission for the station or additional
capacity was granted on or before 18 June 2015, and

(ii)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached,

(b)   evidence that—

(i)   planning permission for the station or additional
capacity was refused on or before 18 June 2015, but
granted after that date following an appeal or
judicial review, and

(ii)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached,

(c)   evidence that—

(i)   an application for 1990 Act permission or 1997 Act
permission was made on or before 18 June 2015 for
the station or additional capacity,

(ii)   the period allowed under section 78(2) of the 1990
Act or (as the case may be) section 47(2) of the 1997
Act ended on or before 18 June 2015 without any of
the things mentioned in section 78(2)(a) to (b) of the
1990 Act or section 47(2)(a) to (c) of the 1997 Act
being done in respect of the application,

(iii)   the application was not referred to the Secretary of
State, Welsh Ministers or Scottish Ministers in
accordance with directions given under section 77 of
the 1990 Act or section 46 of the 1997 Act,

(iv)   1990 Act permission or 1997 Act permission was
granted after 18 June 2015 following an appeal, and

(v)   any conditions as to the time period within which
the development to which the permission relates
180must be begun have not been breached, or

(d)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, planning
permission is not required for the station or additional
capacity.


185

(5)     The documents specified in this subsection are—

(a)   a copy of an offer from a licensed network operator made on
or before 18 June 2015 to carry out grid works in relation to
the station or additional capacity, and evidence that the
offer was accepted on or before that date (whether or not the
acceptance was subject to any conditions or other terms), or

(b)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, no grid works were
required to be carried out by a licensed network operator in
order to enable the station to be commissioned or the
additional capacity to form part of the station.

(6)     The documents specified in this subsection are a declaration by the
operator of the station that, to the best of the operator’s knowledge
and belief, as at 18 June 2015 a relevant developer of the station or
additional capacity (or a person connected, within the meaning of
section 1122 of the Corporation Tax Act 2010, with a relevant
developer of the station or additional capacity)—

(a)   was an owner or lessee of the land on which the station or
additional capacity is situated,

(b)   had entered into an agreement to lease the land on which
the station or additional capacity is situated,

(c)   had an option to purchase or to lease the land on which the
station or additional capacity is situated, or

(d)   was a party to an exclusivity agreement in relation to the
land on which the station or additional capacity is situated.

(7)     In this section—

“the 1990 Act” means the Town and Country Planning Act
1990;

“1990 Act permission” means planning permission under the
1990 Act (except outline planning permission, within the
meaning of section 92 of that Act);

“the 1997 Act” means the Town and Country Planning
(Scotland) Act 1997;

“1997 Act permission” means planning permission under the
1997 Act (except planning permission in principle, within
the meaning of section 59 of that Act);

“exclusivity agreement”, in relation to land, means an
agreement by the owner or a lessee of the land not to permit
any person (other than the persons identified in the
agreement) to construct an onshore wind generating station
on the land;

“planning permission” means—

(a)   consent under section 36 of this Act,

(b)   1990 Act permission,

(c)   1997 Act permission, or

(d)   development consent under the Planning Act 2008.

32LK          The investment freezing condition

(1)     This section applies for the purposes of sections 32LH and 32LI.

(2)     The investment freezing condition is met in respect of an onshore
wind generating station if the documents specified in subsection (4)
were provided to the Authority with the application for
accreditation of the station.

(3)     The investment freezing condition is met in respect of additional
capacity if the documents specified in subsection (4) were provided
to the Authority on or before the date on which the Authority made
its decision that the additional capacity could form part of an
onshore wind generating station.

(4)     The documents specified in this subsection are—

(a)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, as at the Royal
Assent date—

(i)   the relevant developer required funding from a
recognised lender before the station could be
commissioned or additional capacity could form
part of the station,

(ii)   a recognised lender was not prepared to provide
that funding until enactment of the Energy Act 2016,
because of uncertainty over whether the Act would
be enacted or its wording if enacted, and

(iii)   the station would have been commissioned, or the
additional capacity would have formed part of the
station, on or before 31 March 2017 if the funding
had been provided before the Royal Assent date,
and

(b)   a letter or other document, dated on or before the date
which is 28 days after the Royal Assent date, from a
recognised lender confirming (whether or not the
confirmation is subject to any conditions or other terms) that
the lender was not prepared to provide funding in respect
of the station or additional capacity until enactment of the
Energy Act 2016, because of uncertainty over whether the
Act would be enacted or its wording if enacted.

(5)     In this section—


268

“recognised lender” means a provider of debt finance which
has been issued with an investment grade credit rating by a
270registered credit rating agency;

“the Royal Assent date” means the date on which the Energy
Act 2016 is passed.

(6)     For the purposes of the definition of “recognised lender” in
subsection (5)—

“investment grade credit rating” means a credit rating
commonly understood by registered credit rating agencies
to be investment grade;

“registered credit rating agency” means a credit rating agency
registered in accordance with Regulation (EC) No 1060/
2009 of the European Parliament and the Council of 16
September 2009 on credit rating agencies.

32LL          The grid or radar delay condition

(1)     This section applies for the purposes of sections 32LE, 32LG and
32LI.

(2)     The grid or radar delay condition is met in respect of an onshore
wind generating station if, on or before the date on which the
Authority made its decision to accredit the station, the documents
specified in subsection (4), (5) or (6) were—

(a)   submitted by the operator of the station, and

(b)   received by the Authority.

(3)     The grid or radar delay condition is met in respect of additional
capacity if, on or before the date on which the Authority made its
decision that the additional capacity could form part of an onshore
wind generating station, the documents specified in subsection (4),
(5) or (6) were—

(a)   submitted by the operator of the station, and

(b)   received by the Authority.

(4)     The documents specified in this subsection are—

(a)   evidence of an agreement with a network operator (“the
relevant network operator”) to carry out grid works in
relation to the station or additional capacity (“the relevant
grid works”);

(b)   a copy of a document written by, or on behalf of, the
relevant network operator which estimated or set a date for
completion of the relevant grid works (“the planned grid
works completion date”) which was no later than the
primary date;

(c)   a letter from the relevant network operator confirming
(whether or not such confirmation is subject to any
conditions or other terms) that—

(i)   the relevant grid works were completed after the
planned grid works completion date, and

(ii)   in the relevant network operator’s opinion, the
failure to complete the relevant grid works on or
before the planned grid works completion date was
not due to any breach by a generating station
developer of any agreement with the relevant
network operator; and

(d)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, the station would
have been commissioned, or the additional capacity would
have formed part of the station, on or before the primary
date if the relevant grid works had been completed on or
before the planned grid works completion date.

(5)     The documents specified in this subsection are—

(a)   evidence of an agreement between a generating station
developer and a person who is not a generating station
developer (“the radar works agreement”) for the carrying
out of radar works (“the relevant radar works”);

(b)   a copy of a document written by, or on behalf of, a party to
the radar works agreement (other than a generating station
developer) which estimated or set a date for completion of
the relevant radar works (“the planned radar works
334completion date”) which was no later than the primary date;

(c)   a letter from a party to the radar works agreement (other
than a generating station developer) confirming, whether or
not such confirmation is subject to any conditions or other
terms, that—

(i)   the relevant radar works were completed after the
planned radar works completion date, and

(ii)   in that party’s opinion, the failure to complete the
relevant radar works on or before the planned radar
works completion date was not due to any breach of
the radar works agreement by a generating station
developer; and

(d)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, the station would
have been commissioned, or the additional capacity would
349have formed part of the station, on or before the primary
date if the relevant radar works had been completed on or
before the planned radar works completion date.

(6)     The documents specified in this subsection are—

(a)   the documents specified in subsection (4)(a), (b) and (c);

(b)   the documents specified in subsection (5)(a), (b) and (c); and

(c)   a declaration by the operator of the station that, to the best
of the operator’s knowledge and belief, the station would
have been commissioned, or the additional capacity would
have formed part of the station, on or before the primary
date if—

(i)   the relevant grid works had been completed on or
before the planned grid works completion date, and

(ii)   the relevant radar works had been completed on or
before the planned radar works completion date.

(7)     In this section “the primary date” means—

(a)   in a case within section 32LE(a)(i) or (b)(i) and (ii), 31 March
2016;

(b)   in a case within section 32LG(a)(i) and (ii) or (b)(i) to (iii), 31
March 2017;

(c)   in a case within section 32LI(a)(i) and (ii) or (b)(i) to (iii), 31
December 2017.”

(3)     In section 32M (interpretation of sections 32 to 32M)—

(a)   in subsection (1), for “32LB” substitute “32LL”;

(b)   at the appropriate places insert the following definitions—

““accredited”, in relation to an onshore wind
generating station, means accredited by the
Authority as a generating station which is capable of
generating electricity from renewable sources; and
“accredit” and “accreditation” are to be construed
accordingly;”;

““additional capacity”, in relation to an onshore wind
generating station, means any generating capacity
which does not form part of the original capacity of
the station;”;

““commissioned”, in relation to an onshore wind
generating station, means having completed such
procedures and tests in relation to the station as
constitute, at the time they are undertaken, the usual
industry standards and practices for commissioning
that type of generating station in order to
demonstrate that it is capable of commercial
operation;”;

““generating station developer”, in relation to an
onshore wind generating station or additional
capacity, means—

(a)   the operator of the station, or

(b)   a person who arranged for the construction
of the station or additional capacity;”;

““grid works”, in relation to an onshore wind
generating station, means—

(a)   the construction of a connection between the
station and a transmission or distribution
system for the purpose of enabling electricity
to be conveyed from the station to the
system, or

(b)   the carrying out of modifications to a
connection between the station and a
transmission or distribution system for the
purpose of enabling an increase in the
amount of electricity that can be conveyed
over that connection from the station to the
system;”;

““licensed network operator” means a distribution
licence holder or a transmission licence holder;”;

““network operator” means a distribution exemption
holder, a distribution licence holder or a
transmission licence holder;”;

““onshore wind generating station” has the meaning
given by section 32LC(2);”;

““original capacity”, in relation to an onshore wind
generating station, means the generating capacity of
the station as accredited;”;

““radar works” means—

(a)   the construction of a radar station,

(b)   the installation of radar equipment,

(c)   the carrying out of modifications to a radar
station or radar equipment, or

(d)   the testing of a radar station or radar
equipment;”;

““relevant developer”, in relation to an onshore wind
generating station or additional capacity, means a
person who—

(a)   applied for planning permission for the
station or additional capacity,

(b)   arranged for grid works to be carried out in
relation to the station or additional capacity,

(c)   arranged for the construction of any part of
the station or additional capacity,

(d)   constructed any part of the station or
additional capacity, or

(e)   operates, or proposes to operate, the
station;”.”

LORD WALLACE OF TANKERNESS

LORD TEVERSON

BARONESS MADDOCK

[Amendments 78RA to 78RG are amendments to Amendment 78R]

78RA*

Line 180, at end insert—

“( )   evidence that—

(i)   an application for 1990 Act permission or 1997 Act
permission was made at least sixteen weeks prior to
18 June 2015 for the station or additional capacity,

(ii)   the grant of planning permission was approved by
the relevant planning committee on or before 18
June 2015, and

(iii)   planning permission was granted after 18 June 2015,
and any conditions as to the time period within
which the development to which the permission
relates must be begun have not been breached, or

( )   evidence that—

(i)   an application for consent for the station or
additional capacity was made under section 36 and
the consultation period prescribed by regulations
made under paragraph 2(3) of Schedule 8 had
expired prior to 18 June 2015,

(ii)   during the consultation period, the relevant
planning authority had notified the Secretary of
State that they objected to the application and their
objection had not been withdrawn,

(iii)   the Secretary of State caused a public inquiry to be
held,

(iv)   following consideration of the objection and the
report of the person who held the inquiry, the
Secretary of State granted consent and deemed
planning permission after 18 June 2015, and

(v)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached, or

( )   evidence that planning permission was approved by the
relevant planning authority on or before 18 June 2015,
subject to an agreement under section 106 of the 1990 Act
(planning obligations) or section 75 of the 1997 Act
(agreements regulating development or use of land); and
such an agreement is concluded before 31 March 2016, or”

78RB*

Line 180, at end insert—

“( )   evidence that—

(i)   an application for 1990 Act permission or 1997 Act
permission was made on or before 18 June 2015 for
the station or additional capacity,

(ii)   the grant of planning permission was approved by
the relevant planning committee on or before 18
June 2015, and

(iii)   planning permission was granted after 18 June 2015,
and any conditions as to the time period within
which the development to which the permission
relates must be begun have not been breached, or

( )   evidence that—

(i)   an application for consent for the station or
additional capacity was made under section 36 and
the consultation period prescribed by regulations
made under paragraph 2(3) of Schedule 8 had
expired prior to 18 June 2015,

(ii)   during the consultation period, the relevant
planning authority had notified the Secretary of
State that they objected to the application and their
objection had not been withdrawn,

(iii)   the Secretary of State caused a public inquiry to be
held,

(iv)   following consideration of the objection and the
report of the person who held the inquiry, the
Secretary of State granted consent and deemed
planning permission after 18 June 2015, and

(v)   any conditions as to the time period within which
the development to which the permission relates
must be begun have not been breached, or”

78RC*

Line 185, at end insert—

“( )   a copy of an offer from a licenced network operator to carry
out grid works in relation to the station or additional
capacity, and evidence that the offer was for a connection
date before the end of March 2017,”

78RD*

Line 268, after “which” insert “at any time between 18 June 2015 and the Royal
Assent date—

(i)   ”

78RE*

Line 270, at end insert—

  “, or

(iii)   is a bank, financial institution, trust fund, or other
entity which is regularly engaged in or established
for the purpose of making, purchasing or investing
in loans, securities or other financial assets;”

78RF*

Line 334, leave out “the primary date” and insert “31 March 2018”

78RG*

Line 349, leave out “the primary date” and insert “31 March 2018”

BARONESS WORTHINGTON

LORD GRANTCHESTER

78S

Insert the following new Clause—

“Decarbonisation obligation

(1)     Within six months of the coming into force of this Act, the Secretary of State
must bring forward regulations for a “decarbonisation obligation”.

(2)     A “decarbonisation obligation” means the level of carbon intensity of
electricity generation in the United Kingdom that a relevant supplier may
not exceed in respect of the total kilowatt hours of electricity that it supplies
to customers in England and Wales during a given year.

(3)     In setting a decarbonisation obligation, the Secretary of State must first
obtain and take account of advice from the Committee on Climate Change.

(4)     Under this section, a “relevant supplier” refers to electricity suppliers
supplying electricity in the United Kingdom.”

78T

Insert the following new Clause—

“Contracts for difference

After section 13(3) of the Energy Act 2013 insert—

“(3A)    An allocation round must be held at least once in each year in which
the carbon intensity of electricity generation in the United Kingdom
exceeds 100 grams per kilowatt hour.””

BARONESS WORTHINGTON

LORD GRANTCHESTER

LORD TEVERSON

78U*

Insert the following new Clause—

“Emissions trading: United Kingdom carbon account

In section 27 (net UK carbon account) of the Climate Change Act 2008, after
subsection (2) insert—

“(2A)    No carbon units attributable to power generation and deriving
from the operation of the EU Emissions Trading System may be
credited to or debited from the net United Kingdom carbon account
for any period commencing after 31 December 2027.””

BARONESS WORTHINGTON

LORD GRANTCHESTER

78V*

Insert the following new Clause—

“Capacity mechanism

Fossil fueled generating plant granted 15 year capacity contracts under the
capacity mechanism established under the Energy Act 2013 shall be subject
to—

(a)   a carbon price;

(b)   a requirement to fit best available technologies to mitigate air
pollutants; and

(c)   the Emissions Performance Standard as established in the Energy
Act 2013.”

Clause 67

LORD BOURNE OF ABERYSTWYTH

79

Page 39, line 24, leave out paragraph (b)

80

Page 39, line 25, at end insert “or

( )   regulations under section (Disclosure permitted after specified
period
)(1),”

81

Page 39, line 25, at end insert—

“( )   regulations under section (Disclosure by OGA to certain persons)(6),”

After Clause 67

LORD BOURNE OF ABERYSTWYTH

82

Insert the following new Clause—

“Regulations and orders: disapplication of requirements to consult the OGA

(1)     This section applies where the Secretary of State is required by this Act, the
Petroleum Act 1998 or the Energy Act 2008 to consult the OGA before
exercising a power to make regulations or an order.

(2)     The requirement does not apply in relation to the first exercise of the power
in the period of one year beginning with the date on which section 1 comes
into force.”

Clause 68

LORD BOURNE OF ABERYSTWYTH

82A

Page 39, line 34, leave out “This Part comes” and insert “Sections 66, (Onshore wind
power: circumstances in which certificates may be issued after 31 March 2016
) and this
Part come”

LORD WALLACE OF TANKERNESS

LORD TEVERSON

BARONESS MADDOCK

82B*

Page 39, line 37, at end insert “, subject to subsection (3A).

(3A)    Section 66 and section (Onshore wind power: circumstances in which
certificates may be issued after 31 March 2016
) shall not come into force
until the Secretary of State has reported to Parliament on—

(a)   the progress made towards United Kingdom climate
change targets, in particular the carbon budgets and
emissions targets set under the Climate Change Act 2008,
and the United Kingdom’s 2020 European Union renewable
energy targets, and

(b)   the strategy for meeting those targets, including an
explanation of which forms of renewable energy will be
required to meet the need for low carbon energy,

and two months have elapsed since the report was made to
Parliament.”

Clause 69

LORD BOURNE OF ABERYSTWYTH

83

Page 40, line 3, after “amendment” insert “(other than an amendment of Part 1A of
the Petroleum Act 1998)”

After the Schedule

LORD BOURNE OF ABERYSTWYTH

84

Insert the following new Schedule—

““SCHEDULE

ABANDONMENT OF OFFSHORE INSTALLATIONS

Petroleum Act 1998

1      Part 4 of the Petroleum Act 1998 (abandonment of offshore installations)
is amended as follows.

2      Before section 29 insert—

“28A          Restriction on abandonment

(1)     A person to whom a notice may be given under section 29(1) in
relation to an offshore installation or submarine pipeline may not
abandon, or begin or continue the decommissioning of, the
installation or pipeline unless an abandonment programme
approved by the Secretary of State has effect in relation to the
installation or pipeline.

(2)     A person who without reasonable excuse contravenes subsection
(1) is guilty of an offence.”

3   (1)     Section 29 (preparation of programmes) is amended as follows.

(2)     After subsection (1) insert—

“(1A)    The power to give a notice under subsection (1) is exercisable—

(a)   on the Secretary of State’s own motion, or

(b)   at the request of any person to whom the notice may be
given (whether or not the notice is given to that person).”

(3)     After subsection (2) insert—

“(2A)    A person to whom a notice under subsection (1) is given—

(a)   must consult the OGA before submitting the
abandonment programme to the Secretary of State, and

(b)   must frame the programme so as to ensure (whether by
means of the timing of the measures proposed, the
inclusion of provision for collaboration with other
persons, or otherwise) that the cost of carrying it out is
kept to the minimum that is reasonably practicable in the
circumstances.

(2B)    When consulted under paragraph (a) of subsection (2A) the OGA
must (in particular) consider and advise on—

(a)   alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it,
and

(b)   how to comply with paragraph (b) of that subsection.”

(4)     In subsection (3), after “such” insert “other”.

4   (1)     Section 32 (approval of programmes) is amended as follows.

(2)     After subsection (2) insert—

“(2A)    The modifications or conditions may (in particular) include
modifications or conditions—

(a)   which are intended (whether by means of the timing of
the measures proposed, the inclusion of provision for
collaboration with other persons, or otherwise) to reduce
the total cost of carrying out the programme, provided
that they do not increase the total costs to be met by any
person who is to be subject to obligations under the
programme or under any other abandonment
programme;

(b)   requiring the persons who submitted the programme to
carry out and publish or make available to the Secretary
of State and the OGA a review of the programme and its
implementation including, where relevant,
recommendations as to the contents and implementation
of future abandonment programmes.”

(3)     At the end insert—

“(6)     Before reaching a decision under this section the Secretary of
State must—

(a)   consult the OGA, and

(b)   take into account the cost of carrying out the programme
that has been submitted and whether it is possible to
reduce that cost by modifying the programme or making
it subject to conditions.

(7)     When consulted under subsection (6)(a), the OGA must (in
particular) consider and advise on—

(a)   alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it,
and

(b)   whether section 29(2A)(b) has been complied with and, if
it has not been, modifications or conditions that would
enable it to be complied with.”

5      In section 33 (failure to submit programme), after subsection (3) insert—

“(3A)    When preparing an abandonment programme under this section
the Secretary of State must—

(a)   consult the OGA, and

(b)   frame the programme so as to ensure (whether by means
of the timing of the measures proposed, the inclusion of
provision for collaboration with other persons, or
otherwise) that the cost of carrying it out is kept to the
minimum that is reasonably practicable in the
circumstances.

(3B)    When consulted under paragraph (a) of subsection (3A), the
OGA must (in particular) consider and advise on—

(a)   alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it,
and

(b)   how to comply with the requirement in paragraph (b) of
that subsection.”

6   (1)     Section 34 (revision of programmes) is amended as follows.

(2)     After subsection (4) insert—

“(4A)    A person who makes a proposal under subsection (1) that is
likely to have an effect on the cost of carrying out the programme
must frame it so as to ensure (whether by means of the timing of
the measures proposed, the inclusion of provision for
collaboration with other persons, or otherwise) that the cost of
carrying out the programme as proposed to be altered is kept to
the minimum that is reasonably practicable in the circumstances.

(4B)    Where the Secretary of State makes a proposal under subsection
(1)(a) the purpose of which is to reduce the total cost of carrying
out a programme, the proposal may not increase the total costs to
be met by any person who is to be subject to obligations under
the programme or under any other abandonment programme.”

(3)     After subsection (7) insert—

“(7A)    If it appears to the Secretary of State that what is proposed under
subsection (1) is likely to have an effect on the cost of carrying out
the programme, the Secretary of State must, before making a
determination under subsection (7)—

(a)   consult the OGA, and

(b)   take that effect into account.

(7B)    When consulted under subsection (7A)(a) the OGA must (in
particular) consider and advise on—

(a)   alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it,
and

(b)   whether subsection (4A) applies and, if so, whether it has
been complied with.”

7      After section 34 insert—

“34A          Amendment of programmes

(1)     This section applies where an abandonment programme
approved by the Secretary of State includes provision by virtue
of which the programme may be amended.

(2)     A person who proposes to make an amendment under such a
provision that is likely to have an effect on the cost of carrying out
the programme must frame the amendment so as to ensure
(whether by means of the timing of the measures proposed, the
inclusion of provision for collaboration with other persons, or
otherwise) that the cost of carrying out the programme as
proposed to be amended is kept to the minimum that is
reasonably practicable in the circumstances.

(3)     If it appears to the person who proposes to make the amendment
that subsection (2) applies, the person must consult the OGA
before making the amendment.

(4)     When consulted under subsection (3) the OGA must (in
particular) consider and advise on—

(a)   alternatives to abandoning or decommissioning the
installation or pipeline, such as re-using or preserving it,
and

(b)   whether subsection (2) applies and, if so, whether it has
been complied with.

(5)     Any person who has the function of approving amendments
made under a provision mentioned in subsection (1) must, when
exercising the function, take into account the effect of the
proposed amendment on the cost of carrying out the
programme.”

8      After section 36 insert—

“36A          Reduction of costs of carrying out programmes

(1)     This section applies where an abandonment programme
approved by the Secretary of State has effect in relation to an
installation or pipeline.

(2)     The Secretary of State may, for the purpose of reducing the total
cost of carrying out the programme, by written notice require
any person who submitted the programme to take, or refrain
from taking, action of a description specified in the notice.

(3)     The notice may, in particular, require—

(a)   changes to the times at which the measures proposed in
the programme are to be carried out;

(b)   the persons who are under a duty to secure that the
programme is carried out to collaborate with other
persons.

(4)     The programme, and any condition to which it is subject, has
effect subject to any notice given under this section.

(5)     A notice given under this section may not increase the total costs
to be met by any person who is to be subject to obligations under
the programme or under any other abandonment programme.

(6)     The Secretary of State may not give a notice to a person under this
section without first giving the person an opportunity to make
written representation as to whether the notice should be given.

(7)     A person to whom a notice is given under this section who
without reasonable excuse fails to comply with the notice is
guilty of an offence.

(8)     If a notice under this section is not complied with, the Secretary
of State may—

(a)   do anything necessary to give effect to the notice, and

(b)   recover from the person to whom the notice was given
any expenditure incurred under paragraph (a).

(9)     A person liable to pay any sum to the Secretary of State by virtue
of subsection (8) must also pay interest on that sum for the period
beginning with the day on which the Secretary of State notified
the person of the sum payable and ending with the date of
payment.

(10)     The rate of interest payable in accordance with subsection (9) is a
rate determined by the Secretary of State as comparable with
commercial rates.”

9      In section 37 (default in carrying out programmes), after subsection (1)
insert—

“(1A)    If it appears to the Secretary of State that the proposed remedial
action is likely to have an effect on the cost of carrying out the
programme, the Secretary of State must—

(a)   consult the OGA before giving a notice under subsection
(1), and

(b)   take that effect into account when deciding whether to
give the notice.

(1B)    When consulted under subsection (1A)(a), the OGA must
consider and advise on the likely effect of the proposed remedial
action on the cost of carrying out the programme.”

10     In section 40 (offences: penalties)—

(a)   after “section” insert “28A,”, and

(b)   after “33,” insert “36A,”.

11  (1)     Section 41 (offences: general) is amended as follows.

(2)     In subsection (1)—

(a)   after “section” insert “28A,”, and

(b)   after “33,” insert “36A,”.

(3)     In subsection (2)—

(a)   after “section” insert “28A,”, and

(b)   after “33,” insert “36A,”.

(4)     In subsection (3)—

(a)   after “section” insert “28A,”, and

(b)   after “33,” insert “36A,”.

(5)     In subsection (5), after “section” insert “28A, 36A or”.

12  (1)     Section 42 (validity of Secretary of State’s acts) is amended as follows.

(2)     In subsection (2), after paragraph (e) insert—

“(ea)   the giving of a notice under section 36A(2);”.

(3)     In subsection (5), after paragraph (e) insert—

“(ea)   in relation to the giving of a notice under section 36A(2),
means the requirements of section 36A(6);”.

Energy Act 2008

13  (1)     Section 30 of the Energy Act 2008 (abandonment of carbon storage
installations) is amended as follows.

(2)     In subsection (1), after “subsections” insert “(1A),”.

(3)     After that subsection insert—

“(1A)    For the purposes of subsection (1), the amendments made to Part
4 of the 1998 Act by Schedule (Abandonment of offshore
installations
) to the Energy Act 2016 are to be disregarded.”

(4)     For subsection (4A) substitute—

“(4A)    The power in subsection (4)—

(a)   may (in particular) be exercised to make modifications
corresponding to the amendments made by Schedule
(Abandonment of offshore installations) to the Energy Act
2016, and

(b)   is subject to section 30A.””

In the Title

LORD BOURNE OF ABERYSTWYTH

85

Line 2, after “infrastructure;” insert “to make provision about the abandonment of
offshore installations, submarine pipelines and upstream petroleum
infrastructure;”

86

Line 2, after “infrastructure;” insert “to extend Part 1A of the Petroleum Act 1998
to Northern Ireland;”

87

Line 2, after “infrastructure;” insert “to make provision about the disclosure of
information for the purposes of international agreements;”

Prepared 21st October 2015