Energy Bill [HL]

House of Commons

Session 2003 - 04
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Energy Bill [HL]

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
13

(b)
capital expenditure that the NDA expects to incur in connection with
the discharge of its responsibilities in relation to those installations and
facilities, and with the management of those sites; and
(c)
the income that it considers it is likely to secure from the operation of
those installations and facilities and from the management of those
5
sites.
(8)
An objective or policy set out in the NDA’s strategy may be framed in one or
more of the following ways—
(a)
by reference to a particular installation or site;
(b)
by reference to different descriptions of installation or site;
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(c)
so as to become applicable to an installation or site of a particular
description on the NDA being given responsibility for an installation or
site of that description.
(9)
In this section references, in relation to the preparation of a strategy, to a site,
installation or facility designated for any purpose include references to a site,
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installation or facility designated by a direction which is not yet in force.
13
Annual plans
(1)
The NDA must, for each financial year, prepare a plan—
(a)
for the carrying out, during that year, of work towards
decommissioning the installations designated as installations to be
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decommissioned;
(b)
for the carrying out, during that year, of work towards cleaning up the
sites designated as sites to be cleaned up;
(c)
for the operation, during that year, of the installations and facilities
designated as installations or facilities whose operation is to be secured
25
by the NDA; and
(d)
for the carrying out during that year of its other functions.
(2)
The plan must be prepared and, not less than three months before the
commencement of the financial year to which it relates, submitted for
approval—
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(a)
in a case where it contains anything relating to responsibilities of the
NDA falling within section 6(2), to the Secretary of State and the
Scottish Ministers; and
(b)
in any other case, to the Secretary of State.
(3)
The plan for a financial year, so far as it relates to decommissioning and
35
cleaning-up, must set out—
(a)
a summary of the decommissioning and cleaning-up work which the
NDA is intending should be carried out during that year;
(b)
the arrangements that have been made, or are to be made, for securing
that agreements for the carrying out of that work are entered into;
40
(c)
the agreements (if any) that have already been entered into for that
purpose or under which that work is to be carried out;
(d)
an estimate of the expenditure that will be incurred by the NDA during
that year in respect of decommissioning or cleaning-up work carried
out during that year or previously or in respect of decommissioning
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and cleaning-up work to be carried out in subsequent years;
(e)
any proposals to which it intends to give effect during that year that
relate to, or will affect, the management of installations or sites

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
14

designated as installations or sites to be decommissioned or cleaned up;
and
(f)
the extent to which its plans for the year contribute to the achievement
of the objectives set out in its strategy.
(4)
The plan for a financial year, so far as it relates to the operation of installations
5
and facilities, must set out—
(a)
an estimate of the expenditure that will be incurred during that year on
the running costs of the installations and facilities and on the
management of the sites where they are located;
(b)
an estimate of the capital expenditure that will be incurred during that
10
year in connection with the discharge of the NDA’s responsibilities in
relation to those installations and facilities and with the management of
those sites;
(c)
an estimate of the income it is likely to secure during that year from the
operation of the installations and facilities and from the management of
15
those sites; and
(d)
any proposals to which the NDA intends to give effect during that year
that relate to or will affect the operation of the installations or facilities,
or the management of the sites where they are located.
(5)
The plan for a financial year, so far as it relates to the NDA’s other functions,
20
must—
(a)
set out all the activities of significance that the NDA proposes to carry
on during that year in the carrying out of those other functions; and
(b)
an estimate of the expenditure that will be incurred in the carrying out
of those other functions.
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(6)
The plan for a financial year must also set out any other matters that the
Secretary of State directs the NDA to include in its plan for that year.
(7)
In this section references, in relation to the preparation of a plan for a financial
year, to a site, installation or facility designated for any purpose include
references to a site, installation or facility designated by a direction which—
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(a)
is not yet in force; but
(b)
is to come into force during that financial year.
(8)
Schedule 3 (which makes provision about consultation and about the approval
and publication of the NDA’s annual plan) has effect.
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Annual reports
35
(1)
As soon as reasonably practicable after the end of each financial year, the NDA
must prepare and send to the Secretary of State a report on—
(a)
the discharge of its responsibilities during that year; and
(b)
the carrying out of its other functions.
(2)
If during the year to which the report relates the NDA has had responsibilities
40
which—
(a)
fall within subsection (2) of section 6, or
(b)
are mentioned in subsection (3) of that section,

it must also send a copy of that report to the Scottish Ministers.
(3)
The report must contain—
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Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
15

(a)
a description of what has been done, during the year to which it relates,
towards achieving the NDA’s objectives, as set out in the approved
strategy in force during that year;
(b)
a general description of the work carried out during that year for the
purpose of decommissioning the installations designated as
5
installations to be decommissioned;
(c)
a general description of the work carried out during that year for the
purpose of cleaning up the sites designated as sites to be cleaned up;
(d)
a report on every change occurring during that year in the identity of
persons with control of designated installations, designated sites and
10
designated facilities;
(e)
a report of every significant change during that year to the contractual
arrangements of the NDA that are in force with respect to the carrying
out (whether or not during that year) of decommissioning or cleaning-
up work;
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(f)
a report on the extent to which the NDA has implemented its plan for
that year;
(g)
a report of the NDA’s dealings during that year with the Health and
Safety Executive, the Environment Agency and the Scottish
Environment Protection Agency;
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(h)
a report containing an assessment of the performance in relation to
safety and environmental matters of the persons (other than the NDA
itself) who have control of designated installations, designated sites
and designated facilities;
(i)
a report of the NDA’s dealings during that year with such persons with
25
responsibilities in relation to nuclear security as have been nominated
for the purposes of this subsection by the Secretary of State; and
(j)
any other matters which the NDA is directed by the Secretary of State
to include in that report.
(4)
Before giving a direction for the purposes of subsection (3)(j) the Secretary of
30
State must consult the Scottish Ministers.
(5)
The report must deal separately with—
(a)
activities relating to the decommissioning of installations or the
cleaning-up of sites; and
(b)
the NDA’s other activities.
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(6)
The Secretary of State must lay a copy of every report received by him under
this section before Parliament.
(7)
The Secretary of State must also arrange for a copy of the report to be published
in the manner which, in his opinion, is most appropriate for bringing it to the
attention of persons likely to be affected by it.
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(8)
The Scottish Ministers must lay a copy of every report received by them under
this section before the Scottish Parliament.
(9)
The Secretary of State may exclude—
(a)
from what he lays before Parliament or arranges to be published under
this section, and
45
(b)
from what is to be laid before the Scottish Parliament by the Scottish
Ministers,

anything falling within subsection (10).

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(10)
The following falls within this subsection—
(a)
anything the publication of which the Secretary of State considers to be
against the interests of national security;
(b)
anything relating to the private affairs of an individual the publication
of which the Secretary of State considers would seriously and
5
prejudicially affect the interests of that individual; and
(c)
anything of a commercial nature relating specifically to the affairs of a
particular body of persons the publication of which the Secretary of
State considers would seriously and prejudicially affect the interests of
that body.
10
Implementation of strategies and plans
15
Duty to decommission and clean up installations and sites
(1)
This section applies where the NDA has a responsibility for securing the
decommissioning of an installation or the cleaning-up of a site.
(2)
It shall be the duty of the NDA to take all such steps as it considers
15
appropriate—
(a)
for securing the implementation in the case of that installation or site of
the NDA’s approved strategy for decommissioning and cleaning-up;
(b)
for the achievement of the objectives set out in that strategy that are
applicable to that installation or site; and
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(c)
for giving effect in each financial year to its approved plan for that year,
so far as it relates to the decommissioning of that installation or the
cleaning-up of that site.
(3)
In the case of a designated site which is a contaminated site, that duty has effect
subject to such general and specific directions relating to the manner in which
25
the NDA is to discharge its responsibilities in relation to that site as may be
given to it—
(a)
in the case of a site in Scotland, by the Secretary of State and the Scottish
Ministers, acting jointly; and
(b)
in any other case, by the Secretary of State.
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(4)
The NDA must comply with all such directions.
16
Duties to operate installations and to provide treatment etc.
(1)
This section applies where the NDA has a responsibility for securing—
(a)
the operation of a nuclear installation;
(b)
the operation of a facility for treating, storing, transporting or disposing
35
of hazardous material;
(c)
the operation of any other facility;
(d)
the treatment, storage, transportation or disposal, in designated
circumstances, of hazardous material; or
(e)
the management of any land not comprised in a site designated as a site
40
to be cleaned up.
(2)
That responsibility is an obligation to secure that—
(a)
the installation or facility is operated,
(b)
the hazardous material is treated, stored, transported or disposed of, or

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(c)
the land is managed,

in accordance with general and specific directions.
(3)
The power to give directions under subsection (2) is exercisable—
(a)
in relation to any matter connected with responsibilities of the NDA
falling within section 6(2), by the Secretary of State and the Scottish
5
Ministers, acting jointly; and
(b)
in relation to any other matter, by the Secretary of State.
(4)
In discharging that responsibility the NDA must also act—
(a)
in accordance with the NDA’s approved strategy for the operation of
designated installations and designated facilities; and
10
(b)
in each financial year, in accordance with the NDA’s approved plan for
that year.
17
Duty to use installations etc. for purposes of NDA
(1)
This section applies—
(a)
in the case of every designated nuclear installation and every
15
designated installation comprised in an NDA facility;
(b)
in the case of every designated site which is a principal nuclear site; and
(c)
in the case of every designated facility situated in or on a principal
nuclear site.
(2)
The person with control of the installation, site or facility must secure that
20
neither the installation, site or facility nor any interest or right in relation to it
is used or disposed of except for purposes which—
(a)
facilitate the discharge of the NDA’s responsibilities in relation to
designated installations, designated sites and designated facilities; and
(b)
secure that there is no contravention, in relation to the discharge of
25
those responsibilities, of any obligations imposed by or under any
enactment on the person with control of the installation, site or facility.
(3)
Subsection (2) does not prevent the use or disposal of an installation, site or
facility where the NDA has consented to that use or disposal.
(4)
Where the NDA has an interest in the installation, site or facility, the person
30
with control of it shall have the right, as against the NDA, to use it for the
purposes authorised by subsection (2) and to put it to any use to which the
NDA has consented.
(5)
Except—
(a)
where the NDA otherwise directs, or
35
(b)
where the person with control of the installation, site or facility is, has
been or will be subject to charges by the NDA in respect of the
discharge of its responsibilities in relation to that installation, site or
facility,

that person must account for, and pay, to the NDA all sums and other benefits
40
received by him in respect of the use or disposal by him of an interest or right
in relation to the installation, site or facility.
(6)
A reference in this section to facilitating the discharge of the NDA’s
responsibilities in relation to an installation, site or facility includes a reference
to doing anything which is required or authorised by or for the purposes of—
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Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(a)
an agreement between the NDA and the person with control of the
installation, site or facility; or
(b)
an agreement between the NDA and a body corporate of which that
person is a subsidiary.
(7)
Nothing in subsection (5) prohibits the inclusion in such an agreement of
5
provision for sums and benefits mentioned in that subsection to be accounted
for and paid to the NDA in a case falling within paragraph (b) of that
subsection.
(8)
A reference in this section to an interest or right in relation to an installation or
site includes a reference to any interest or right in relation to—
10
(a)
anything located in or on the installation or site;
(b)
a facility operated from the installation or site;
(c)
a process carried on in or on the installation or site; or
(d)
information or documents relating to the installation or site or to
anything mentioned in paragraphs (a) to (c).
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(9)
References in this section to the disposal of an interest in a site include
references to—
(a)
the granting of an estate or interest in the site, or of a licence to use it; or
(b)
entering into an agreement to grant such an estate, interest or licence;

and references to sums received in respect of such a disposal include references
20
to sums that are paid periodically (by way of rent or otherwise) by a tenant or
licensee or by a party to such an agreement.
18
Directions by NDA to the person with control
(1)
This section applies in every case where one of the following is designated—
(a)
a nuclear installation or an installation comprised in an NDA facility;
25
(b)
a principal nuclear site; or
(c)
a facility situated in or on a principal nuclear site.
(2)
It shall be the duty of the person with control of the installation, site or
facility—
(a)
to prepare such plans for the decommissioning or operation of the
30
installation, for the cleaning-up or management of the site or for the
operation of the facility as the NDA may direct;
(b)
to prepare such plans for the cleaning-up of any related sites as the
NDA may direct;
(c)
to submit his plans to the NDA for approval;
35
(d)
to comply with all such further directions falling within subsection (3)
as the NDA may give him from time to time with respect to the
installation, site or facility; and
(e)
to comply with such directions as the NDA may give him for the
purpose of securing or facilitating the discharge by the NDA of such of
40
its responsibilities by virtue of section 3(1)(e) or 4(1), (2) or (4) or any
direction under section 16(2) as—
(i)
were conferred on it by reference to the site, installation or
facility; or
(ii)
fall to be discharged in relation to it, or to anything in or on it.
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(3)
The directions that may be given by the NDA are—

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(a)
directions (in the case of an installation or site) requiring the carrying
out, pending the preparation and approval of plans required by the
NDA, of specified decommissioning or cleaning-up work in or on the
installation or site or related sites;
(b)
directions requiring the installation, site or facility to be operated or
5
managed, pending the preparation and approval of such plans, in the
specified manner;
(c)
directions to modify in the specified manner, and to resubmit, a plan
submitted to the NDA for approval, or approved by it, under this
section;
10
(d)
directions (in the case of an installation or site) requiring the carrying
out, pending the preparation and approval of modifications of a plan,
of specified decommissioning or cleaning-up work in or on the
installation or site or related sites;
(e)
directions requiring the implementation of a plan that the NDA has
15
approved;
(f)
directions requiring specified transactions to be entered into, and other
specified steps to be taken, for the purposes of or in connection with the
implementation of such a plan;
(g)
directions requiring the provision to the NDA of all the information
20
that it requires in order—
(i)
to discharge its responsibilities in relation to the installation, site
or facility and in relation to related sites; or
(ii)
to enter into an agreement for the purpose of discharging those
responsibilities.
25
(4)
It shall be the duty of the person holding the majority of the voting rights in a
company with control of the installation, site or facility to comply with such
directions as may be given to it by the NDA for the purpose of securing that the
company with control of the installation, site or facility complies with its
obligations under this section.
30
(5)
Directions must not be given by the NDA under this section except for the
purpose—
(a)
of giving effect to its plan under section 13 for a particular financial
year; or
(b)
of otherwise giving effect to its strategy under section 11 or achieving
35
the objectives set out in that strategy.
(6)
A person required to prepare plans for the purposes of this section must
comply with the directions of the NDA as to—
(a)
the persons with whom, and
(b)
the manner in which,
40

he must consult before preparing the plans, or before submitting them to the
NDA for approval.
(7)
A direction under this section cannot authorise a contravention in relation to
an installation, site or facility of any obligation to which the person with control
of it is subject by or under an enactment.
45
(8)
In this section “related site”, in relation to a designated installation, designated
site or designated facility, means a site the designation of which specifies, in
accordance with section 19, that it is to be treated, by reference to that
installation, site or facility, as a related site for the purposes of this section.