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Energy Bill [HL]


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

20

 

19      

Designation as a related site for the purposes of s. 18

(1)   

A direction designating a contaminated site—

(a)   

may specify that the site is to be treated for the purposes of section 18

as a related site; and

(b)   

if it does so, must specify the installation, site or facility by reference to

5

which the Secretary of State is satisfied as mentioned in subsection

(2)(a).

(2)   

A direction must not specify that a site is to be treated as a related site unless—

(a)   

the Secretary of State is satisfied that it has become contaminated

(whether radioactively or chemically)  as a result of nuclear activities in

10

or on a particular installation, site or facility;

(b)   

that installation, site or facility was at the time of the contamination, or

subsequently became, a nuclear installation, a principal nuclear site or

an NDA facility;

(c)   

the installation, site or facility is also designated (whether by that

15

direction or as a consequence of a previous direction); and

(d)   

the person with control of that installation, site or facility—

(i)   

is a Crown appointee, the UKAEA, a publicly owned company

or the NDA itself; or

(ii)   

has consented to the specification of the installation, site or

20

facility for the purposes of subsection (1)(b).

(3)   

On the giving by the Secretary of State of a direction specifying that a site is to

be treated as a related site, he must send a copy of the direction to every person

with control of an installation, site or facility by reference to which it is to be so

treated.

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(4)   

For the purposes of this section something is contaminated as a result of

nuclear activities in or on a particular installation, site or facility if the

contamination (whenever occurring), or any of it, is the direct or indirect result

of one or more of the following—

(a)   

activities carried on in or on that installation, site or facility;

30

(b)   

the storage or disposal of any matter or substance in or on that

installation, site or facility;

(c)   

an incident occurring in or on that installation, site or facility;

(d)   

the discharge of anything from that installation, site or facility;

(e)   

the transportation of hazardous material to or from that installation,

35

site or facility;

(f)   

an incident affecting hazardous material being transported to or from

that installation, site or facility.

20      

Duty to comply with directions under s. 18

(1)   

The duty of a person to whom a direction is given under section 18 to comply

40

with that direction is a duty owed to the NDA, and to no one else.

(2)   

That duty is to be enforceable by the NDA in civil proceedings—

(a)   

for an injunction or interdict;

(b)   

for specific performance of a statutory duty under section 45 of the

Court of Session Act 1988 (c. 36); or

45

(c)   

for any other appropriate remedy or relief.

 

 

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

21

 

(3)   

That duty is subject to the obligation of the NDA to discharge its financial

responsibilities under section 21.

(4)   

A person with control of an installation, site or facility is not to be subject to that

duty to the extent that he is relieved of it by the provisions of an agreement—

(a)   

between the NDA and that person; or

5

(b)   

between the NDA and a body corporate of which that person is a

subsidiary.

(5)   

The Secretary of State may by order provide, in the case of an installation, site

or facility the person with control of which is a Crown appointee, that the

Crown appointee is not to be subject, to the extent specified in the order, to the

10

duty to comply with directions under section 18.

(6)   

An order for the purposes of subsection (5) is subject to the negative resolution

procedure.

Financial provisions

21      

Financial responsibilities of NDA

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(1)   

The NDA’s responsibility for securing—

(a)   

the decommissioning or operation of an installation or facility to which

this section applies, or

(b)   

the cleaning-up of a site to which this section applies, or of a related site,

   

includes the financial responsibility for the decommissioning or operation of

20

the installation or facility, or for the cleaning-up.

(2)   

This section applies to an installation, site or facility which becomes a

designated installation, site or facility at a time when the person with control

of it is—

(a)   

a Crown appointee;

25

(b)   

the UKAEA;

(c)   

a wholly-owned subsidiary of the UKAEA;

(d)   

any other publicly owned company which was so owned on 4th July

2002; or

(e)   

a wholly-owned subsidiary of such a company.

30

(3)   

Where—

(a)   

the NDA has financial responsibility for decommissioning, operating

or cleaning up an installation, site or facility, and

(b)   

a person other than the NDA is the person with control of it,

   

that other person is not to be, or to be capable of becoming, liable to meet any

35

of the costs of doing the things that are required to be secured by the NDA in

the discharge of its responsibilities in relation to that installation, site or facility.

(4)   

Accordingly, where the NDA has the financial responsibility in the case of an

installation, site or facility—

(a)   

it must not impose charges on the person with control of the

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installation, site or facility in respect of anything mentioned in

subsection (3);

(b)   

it must meet the costs of the doing by that person of anything that he is

authorised or required to do by virtue of section 17;

 

 

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

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(c)   

it must also meet the costs of the performance by him of his duty to

comply with directions under section 18; and

(d)   

that person is not to be required for any purpose to make, or to continue

to make, financial provision for meeting costs which fall, by virtue of its

financial responsibility, to be met by the NDA.

5

(5)   

Nothing in so much of this section as—

(a)   

restricts the extent to which a person is, or may become, liable to meet

any costs in relation to a site, installation or facility, or

(b)   

requires any costs in relation to an installation, site or facility to be

reimbursed or otherwise met by the NDA,

10

   

is to be construed as restricting the extent to which the person with control of

the installation, site or facility may be or become subject, in relation to a person

other than the NDA, to the liability or obligation in respect of which the costs

arise.

(6)   

It shall be the duty of the NDA for the purpose of discharging its financial

15

responsibilities to make all such arrangements as it thinks fit for securing that

the person with control of the installation, site or facility is able to meet, as they

become due, all his liabilities to persons other than the NDA in respect of

matters for which the NDA has financial responsibility or that those liabilities

are otherwise discharged.

20

(7)   

It shall also be the duty of the NDA to make all such arrangements as it thinks

fit for securing that amounts paid under this section to that person include

such sums (if any) as the NDA considers it appropriate to pay by way of

incentives to that person to discharge his duty to comply with directions under

section 18 in the manner that the NDA thinks most effective.

25

(8)   

The NDA is to be taken to have discharged its responsibility for meeting costs

under this section if it is satisfied that those costs—

(a)   

have been met by another person directly or indirectly out of money

provided by Parliament; or

(b)   

are to be so met.

30

(9)   

The preceding provisions of this section have effect in relation to an

installation, site or facility subject to the terms of—

(a)   

any agreement between the NDA and the person with control of the

installation, site or facility; or

(b)   

any agreement between the NDA and a body corporate of which that

35

person is a subsidiary.

(10)   

The NDA’s financial responsibilities under this section are in addition to its

financial responsibilities apart from this section.

(11)   

In this section “related site” has the same meaning as in section 18.

22      

Expenditure and receipts of NDA

40

(1)   

The Secretary of State may make grants to the NDA.

(2)   

Grants made under this section are to be on such terms as the Secretary of State

may determine.

(3)   

The NDA must pay to the Secretary of State all sums received by it otherwise

than under subsection (1).

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

23

 

(4)   

The Secretary of State must pay sums received by him under subsection (3) into

the Consolidated Fund.

(5)   

In determining—

(a)   

whether to make a grant under this section to the NDA, and

(b)   

the amount of such a grant,

5

   

the Secretary of State must have regard, in particular, to the extent to which he

considers that the NDA should exercise its power to make grants or loans of

the kind mentioned in section 10(2)(c) in order to mitigate the effects of the

cessation (whether before or after designation) of the operation of a designated

installation.

10

23      

Borrowing by the NDA

(1)   

The NDA has no power to borrow money except in accordance with this

section.

(2)   

The NDA may borrow from the Secretary of State, and the Secretary of State

may lend to the NDA, sums in sterling that it requires for or in connection with

15

the carrying out of its functions.

(3)   

Where a loan is made to the NDA by the Secretary of State—

(a)   

the loan must be repaid to him at such times and by such methods as

he may determine; and

(b)   

interest on the loan must be paid to him at such rates and at such times

20

as he may determine;

   

and nothing in section 22(3) requires the repayment of sums received by way

of such a loan otherwise than in accordance with a determination under this

subsection.

(4)   

The NDA may also borrow temporarily (by overdraft or otherwise) from

25

persons other than the Secretary of State sums in sterling that it requires for or

in connection with the carrying out of its functions.

(5)   

The consent of the Secretary of State is required for borrowing under

subsection (4).

(6)   

The approval of the Treasury is required—

30

(a)   

for a loan to the NDA by the Secretary of State;

(b)   

for a determination by the Secretary of State under subsection (3); and

(c)   

for a consent by the Secretary of State to any borrowing under

subsection (4).

(7)   

The powers conferred by this section are subject to section 24.

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24      

Limit on NDA borrowing

(1)   

The NDA may not borrow if the effect would be—

(a)   

to take the aggregate amount mentioned in subsection (2) over its

borrowing limit; or

(b)   

to increase the amount by which the aggregate amount so outstanding

40

exceeds that limit.

(2)   

That amount is the aggregate of—

 

 

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

24

 

(a)   

amounts outstanding from the NDA in respect of the principal of sums

borrowed by the NDA; and

(b)   

the amount of every outstanding liability of the NDA that is a liability

to which it is subject by virtue of a nuclear transfer scheme and is a

liability in respect of the principal of a sum borrowed by another person

5

before the transfer took effect.

(3)   

The NDA’s borrowing limit is £2,000 million.

(4)   

The Secretary of State may by order increase the NDA’s borrowing limit.

(5)   

An order under subsection (4) shall not be made unless a draft of the order has

been—

10

(a)   

laid before Parliament; and

(b)   

approved by a resolution of the House of Commons.

(6)   

The reference in this section to a nuclear transfer scheme includes a reference

to a modification agreement (within the meaning of Schedule 5) in relation to

such a scheme.

15

25      

Government guarantees for NDA borrowing

(1)   

The Secretary of State may guarantee—

(a)   

the repayment of the principal of any sum borrowed by the NDA from

a person other than the Secretary of State;

(b)   

the payment of interest on such a sum; and

20

(c)   

the discharge of any other financial obligation of the NDA in

connection with the borrowing of such a sum.

(2)   

The Secretary of State may give a guarantee under this section in such manner,

and on such terms, as he thinks fit.

(3)   

As soon as practicable after giving a guarantee under this section, the Secretary

25

of State must lay a statement of the guarantee before Parliament.

(4)   

If sums are paid out by the Secretary of State under a guarantee given under

this section, the NDA must pay him—

(a)   

such amounts in or towards the repayment to him of those sums as he

may direct; and

30

(b)   

interest, at such rates as he may direct, on amounts outstanding under

this subsection.

(5)   

Payments to the Secretary of State under subsection (4) must be made at such

times, and in such manner, as he may from time to time direct.

(6)   

Where a sum has been paid out by the Secretary of State under a guarantee

35

given under this section, he must lay a statement relating to that sum before

Parliament—

(a)   

as soon as practicable after the end of the financial year in which that

sum is paid out; and

(b)   

as soon as practicable after the end of each subsequent relevant

40

financial year.

(7)   

In relation to a sum paid out under a guarantee, a financial year is a relevant

financial year for the purposes of subsection (6) unless—

 

 

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

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(a)   

before the beginning of that year, the whole of that sum has been repaid

to the Secretary of State under subsection (4); and

(b)   

the NDA is not at any time during that year subject to a liability to pay

interest on amounts that became due under that subsection in respect

of that sum.

5

(8)   

The approval of the Treasury is required—

(a)   

for the giving of a guarantee under this section; and

(b)   

for the giving by the Secretary of State of a direction under subsection

(4) or (5).

(9)   

The Secretary of State must pay sums received by him by virtue of subsection

10

(4) into the Consolidated Fund.

26      

Accounts of NDA

(1)   

The NDA must—

(a)   

keep proper accounts and proper accounting records; and

(b)   

in respect of each of its accounting years, prepare a statement of its

15

accounts.

(2)   

A statement of accounts prepared under this section must give a true and fair

view of—

(a)   

the income and expenditure of the NDA for the accounting year in

question; and

20

(b)   

its state of affairs.

(3)   

Such a statement of accounts must comply with every requirement which has

been notified by the Secretary of State to the NDA.

(4)   

Those requirements may include, in particular, requirements relating to—

(a)   

the information to be contained in the statement;

25

(b)   

the manner in which that information is to be presented; or

(c)   

the methods and principles according to which the statement is to be

prepared.

(5)   

The approval of the Treasury is required for the imposition of a requirement

under subsection (3).

30

(6)   

The accounts of the NDA relating to each of its accounting years, including the

statement of accounts prepared for the year under this section, must be audited

by the Comptroller and Auditor General.

(7)   

The Comptroller and Auditor General must send a copy of his report on what

is audited to the NDA.

35

(8)   

The NDA must send to the Secretary of State and to the Scottish Ministers, in

respect of each of its accounting years—

(a)   

a copy of the accounts for that year that are required to be audited

under this section; and

(b)   

a copy of the Comptroller and Auditor General’s report on those

40

accounts.

(9)   

The NDA must comply with any directions given to it by the Secretary of State

about the times by which it must have complied with its obligations under

subsections (1)(b), (6) and (8).

 

 

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

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(10)   

The Secretary of State must lay a copy of whatever is sent to him under

subsection (8) before Parliament.

(11)   

The Scottish Ministers must lay a copy of whatever is sent to them under

subsection (8) before the Scottish Parliament.

(12)   

In this section—

5

   

“accounting records” includes all books, papers and other records of the

NDA relating to—

(a)   

the accounts which it is required to keep; or

(b)   

matters dealt with in those accounts;

   

“accounting year”, in relation to the NDA, means—

10

(a)   

the NDA’s first accounting year; or

(b)   

a financial year after the end of the NDA’s first accounting year;

   

“the NDA’s first accounting year” means—

(a)   

where the NDA is established at the beginning of a financial

year, that financial year; and

15

(b)   

in any other case, the period which begins with the day on

which the NDA is established and ends—

(i)   

if no direction is given under sub-paragraph (ii), with 31st

March in the financial year current on that day; and

(ii)   

if the Secretary of State so directs, with 31st March at the

20

end of the following financial year.

27      

Tax exemption for NDA activities

(1)   

For the purposes of corporation tax—

(a)   

trading income arising or accruing to the NDA or an NDA company

from the carrying on of exempt activities shall be disregarded in

25

computing the total profits of the NDA or that company; and

(b)   

trading losses incurred by the NDA or an NDA company in the

carrying on of exempt activities shall be disregarded in determining the

amounts that may be set off under section 393 or 393A of the Income

and Corporation Taxes Act 1988 (c. 1) (trading losses) or surrendered as

30

trading losses for the purposes of section 403 of that Act (group relief).

(2)   

Schedule 4 (which makes further provision for the purposes of the exemption

granted by this section) has effect.

(3)   

Activities are exempt for the purposes of this section and Schedule 4 if they—

(a)   

are activities carried on in connection with anything mentioned in

35

section 3(1); and

(b)   

are specified for the purposes of this section in regulations made by the

Treasury.

(4)   

In this section and Schedule 4 “NDA company” means—

(a)   

a company the whole of the ordinary share capital in which is owned

40

directly or indirectly by the NDA; or

(b)   

a company that is a relevant site licensee.

(5)   

A company is a relevant site licensee for the purposes of subsection (4) if—

(a)   

it is not a company falling within paragraph (a) of that subsection;

 

 

 
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