Finance Bill - continued        House of Commons
SCHEDULE 6, CLIMATE CHANGE LEVY - continued
PART IV, PAYMENT AND RATE OF LEVY - continued

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Facilities to which climate change agreements can apply
     49. - (1) This paragraph applies where, in connection with concluding or varying a climate change agreement, it falls to be determined whether a facility is to be, or is to continue to be, identified in the agreement as a facility to which the agreement applies.
 
      (2) For the purposes of such a determination "facility" is (subject to any regulations under sub-paragraph (3) or (4)) to be taken as meaning-
 
 
    (a) an installation covered by paragraph 50; or
 
    (b) a site on which there is or are-
 
      (i) such an installation or two or more such installations,
 
      (ii) a part, or parts, of such an installation,
 
      (iii) a part, or parts, of each of two or more such installations, or
 
      (iv) any combination of such installations and parts of such installations.
      (3) The Secretary of State may by regulations make provision for an installation covered by paragraph 50 to be taken to be a facility for those purposes only if-
 
 
    (a) the taxable commodities supplied to the installation by taxable supplies are intended to be burned (or, in the case of electricity, consumed)-
 
      (i) in the installation, or
 
      (ii) on the site where the installation is situated but not in the installation,
 
    and
 
    (b) the amounts of the commodities subject to each of those intentions satisfy any conditions specified in the regulations.
      (4) The Secretary of State may by regulations make provision for a site to be taken to be a facility for those purposes only if-
 
 
    (a) the taxable commodities supplied to the site by taxable supplies are intended to be burned (or, in the case of electricity, consumed)-
 
      (i) in installations on the site that are covered by paragraph 50 (or in parts of such installations), or
 
      (ii) on the site but not in any such installation (or part of such an installation),
 
    and
 
    (b) the amounts of the commodities subject to each of those intentions satisfy any conditions specified in the regulations.
      (5) Regulations under sub-paragraph (3) or (4) may make provision for deeming, for the purposes of the regulations, taxable commodities to be intended to be burned (or, in the case of electricity, consumed) in circumstances specified in the regulations.
 
      (6) In this paragraph and paragraph 50 "installation" means a stationary technical unit.
 
 
Energy-intensive installations
     50. - (1) An installation is covered by this paragraph if it falls within any one or more of the descriptions of installation set out in the Table.
 
      (2) An installation is also covered by this paragraph if it is on the same site as, and ancillary to, an installation falling within any one or more of those descriptions.
 
      (3) Sub-paragraphs (1) and (2) are subject to any regulations under paragraph 51.
 
      (4) For the purposes of sub-paragraph (2), one installation ("the ancillary installation") is ancillary to another ("the primary installation") if-
 
 
    (a) the ancillary installation does not fall within any of those descriptions,
 
    (b) activities ("the ancillary activities") are carried out at the ancillary installation that are directly associated with any of the primary activities carried out at the primary installation, and
 
    (c) the ancillary activities-
 
      (i) have a technical connection with those primary activities, and
 
      (ii) could have an effect on environmental pollution or emissions capable of causing such pollution.
      (5) However, an installation (or part of an installation) used for research, development and testing of new products and processes does not fall within any of those descriptions.
 
      (6) In sub-paragraph (4)-
 
 
    "environmental pollution" has the same meaning as in the Pollution Prevention and Control Act 1999;
 
    "primary activity", in relation to an installation falling within any one or more of the descriptions of installation set out in the Table, means an activity the carrying out of which at the installation results in the installation falling within one or more of those descriptions.
  TABLE
  DESCRIPTIONS OF ENERGY-INTENSIVE INSTALLATIONS
 
Energy industries
     1. - (1) Combustion installations with a rated thermal output exceeding 50 MW.
 
      (2) Combustion installations operated by the same operator on the same site with a combined rated thermal output exceeding 50 MW.
 
     2. Mineral oil and gas refineries.
 
     3. Coke ovens.
 
     4. Coal gasification and liquefaction plants.
 
 
Production and processing of metals
     5. Metal ore (including sulphide ore) roasting or sintering installations.
 
     6. Installations for the production of pig iron or steel (primary or secondary fusion) including continuous casting.
 
     7. - (1) The following installations for the processing of ferrous metals-
 
 
    (a) hot-rolling mills;
 
    (b) smitheries with hammers.
      (2) Installations for the processing of ferrous metals by the application of protective fused metal coats.
 
     8. Ferrous metal foundries.
 
     9. Installations-
 
 
    (a) for the production of non-ferrous crude metals from ore, concentrates or secondary raw materials by metallurgical, chemical or electrolytic processes;
 
    (b) for the smelting, including the alloyage, of non-ferrous metals, including recovered products (refining, foundry casting, etc.).
     10. Installations for surface treatment of metals and plastic materials using an electrolytic or chemical process.
 
 
Mineral industry
     11. Installations for the production of-
 
 
    (a) cement clinker in rotary kilns, or
 
    (b) lime in rotary kilns or other furnaces.
     12. Installations for the production of asbestos and the manufacture of asbestos-based products.
 
     13. Installations for the manufacture of glass including glass fibre.
 
     14. Installations for melting mineral substances including the production of mineral fibres.
 
     15. Installations for the manufacture of ceramic products by firing, in particular roofing tiles, bricks, refractory bricks, tiles, stoneware, stoneware or porcelain.
 
 
Chemical industry
     16. Installations for the production, on an industrial scale by chemical processing, of basic organic chemicals such as-
 
 
    (a) simple hydrocarbons (linear or cyclic, saturated or unsaturated, aliphatic or aromatic);
 
    (b) oxygen-containing hydrocarbons such as alcohols, aldehydes, ketones, carboxylic acids, esters, acetates, ethers, peroxides, epoxy resins;
 
    (c) sulphurous hydrocarbons;
 
    (d) nitrogenous hydrocarbons such as amines, amides, nitrous compounds, nitro compounds or nitrate compounds, nitriles, cyanates, isocyanates;
 
    (e) phosphorus-containing hydrocarbons;
 
    (f) halogenic hydrocarbons;
 
    (g) organometallic compounds;
 
    (h) basic plastic materials (polymers, synthetic fibres and cellulose-based fibres);
 
    (i) synthetic rubbers;
 
    (j) dyes and pigments;
 
    (k) surface-active agents and surfactants.
     17. Installations for the production, on an industrial scale by chemical processing, of basic inorganic chemicals such as-
 
 
    (a) gases, such as ammonia, chlorine or hydrogen chloride, fluorine or hydrogen fluoride, carbon oxides, sulphur compounds, nitrogen oxides, hydrogen, sulphur dioxide, carbonyl chloride;
 
    (b) acids, such as chromic acid, hydrofluoric acid, phosphoric acid, nitric acid, hydrochloric acid, sulphuric acid, oleum, sulphurous acids;
 
    (c) bases, such as ammonium hydroxide, potassium hydroxide, sodium hydroxide;
 
    (d) salts, such as ammonium chloride, potassium chlorate, potassium carbonate, sodium carbonate, perborate, silver nitrate;
 
    (e) non-metals, metal oxides or other inorganic compounds such as calcium carbide, silicon, silicon carbide.
     18. Installations for the production, on an industrial scale by chemical processing, of phosphorous-based, nitrogen-based or potassium-based fertilizers (whether simple or compound).
 
     19. Installations for the production, on an industrial scale by chemical processing, of basic plant health products and of biocides.
 
     20. Installations using a chemical or biological process for the production, on an industrial scale, of basic pharmaceutical products.
 
     21. Installations for the production, on an industrial scale by chemical processing, of explosives.
 
 
Waste management
     22. Installations for the disposal or recovery of hazardous waste as defined in-
 
 
    (a) the list referred to in Article 1(4) of Council Directive 91/689/EEC,
 
    (b) Annex IIA, and headings R1, R5, R6, R8 and R9 of Annex IIB, to Council Directive 75/442/EEC, and
 
    (c) Council Directive 75/439/EEC.
     23. Installations for the incineration of municipal waste as defined in-
 
 
    (a) Council Directive 89/369/EEC, and
 
    (b) Council Directive 89/429/EEC.
     24. Installations for the disposal of non-hazardous waste as defined in headings D8 and D9 of Annex IIA to Council Directive 75/442/EEC.
 
     25. Landfills other than landfills of inert waste.
 
 
Other activities
     26. Industrial plants for the production of-
 
 
    (a) pulp from timber or other fibrous materials;
 
    (b) paper and board.
     27. Plants for the pre-treatment (operations such as washing, bleaching, mercerisation) or dyeing of fibres or textiles.
 
     28. Plants for the tanning of hides and skins.
 
     29. - (1) Slaughterhouses.
 
      (2) Installations for-
 
 
    (a) the production of food products by the treatment and processing of-
 
      (i) animal raw materials (other than milk), or
 
      (ii) vegetable raw materials;
 
    (b) the treatment and processing of milk.
     30. Installations for the disposal or recycling of animal carcases and animal waste.
 
     31. Installations for the intensive rearing of poultry or pigs.
 
     32. Installations for the surface treatment of substances, objects or products using organic solvents, in particular for dressing, printing, coating, degreasing, waterproofing, sizing, painting, cleaning or impregnating.
 
     33. Installations for the production of carbon (hard-burnt coal) or electrographite by means of incineration or graphitization.
 
 
Power to vary the installations covered by paragraph 50
     51. - (1) The Treasury may make provision by regulations for varying the installations covered by paragraph 50.
 
      (2) The provision that may be made by regulations under this paragraph includes, in particular, provision-
 
 
    (a) for the installations covered by paragraph 50 to include, or not to include, any installation of a description specified in the regulations;
 
    (b) amending the Table in paragraph 50 by adding a description of installation to the Table, removing a description of installation from the Table or altering a description of installation set out in the Table;
 
    (c) amending paragraph 50.
 
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