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
31

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Examination of the Account
(1)
As soon as practicable after the end of each relevant financial year, the
Secretary of State must prepare a statement of the Nuclear Decommissioning
Funding Account.
(2)
The statement must show—
5
(a)
the credits and debits made to the account during the period for which
it is prepared; and
(b)
the determinations made or revised during that period for the purposes
of section 31(4)(c).
(3)
The period for which each statement is to be prepared is the period which—
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(a)
begins—
(i)
in the case of the first statement, with the establishment of the
Account; and
(ii)
in any other case, immediately after the end of the period for
which the previous statement was prepared; and
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(b)
ends with the last day of the last relevant financial year to end before
the statement’s preparation.
(4)
A statement prepared under this section must be sent to the Comptroller and
Auditor General before the 30th September in the financial year in which it is
prepared.
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(5)
The Comptroller and Auditor General must, before 31st December in the
financial year in which he receives a statement under this section—
(a)
examine and report on it; and
(b)
lay copies of it, and of his report on it, before Parliament.
(6)
In this section “relevant financial year” means a financial year in the course of
25
which the Secretary of State has made or revised a determination for the
purposes of section 31(4)(c).
Supplementary provisions of Chapter 1 of Part 1
33
Validity of transactions
(1)
A person who enters into a transaction with the NDA is not required to see or
30
to enquire whether the transaction constitutes or involves—
(a)
conduct by the NDA which is for the purposes of, or conducive or
incidental to, the carrying out of its functions;
(b)
a contravention of section 7(6) or 9; or
(c)
a contravention of a direction given by the Secretary of State.
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(2)
A transaction entered into by the NDA is not invalidated because the
transaction constitutes or involves—
(a)
conduct by the NDA which is neither for the purposes of, nor
conducive or incidental to, the carrying out of its functions;
(b)
a contravention of section 7(6) or 9; or
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(c)
a contravention of a direction given by the Secretary of State.

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
32

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Amendment of Schedule 12 to the 1989 Act
(1)
In sub-paragraph (1) of paragraph 1 of Schedule 12 to the 1989 Act (financial
assistance by the Secretary of State in respect of nuclear liabilities), for
paragraph (c) and the word “or” immediately preceding it substitute—
“(ba)
the cleaning-up of a principal nuclear site; or
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(c)
the decommissioning of a nuclear installation.”
(2)
After sub-paragraph (4) of paragraph 1 of that Schedule insert—
     “(5)
In this paragraph ‘cleaning-up’, ‘decommissioning’, ‘nuclear
installation’ and ‘principal nuclear site’ have the same meanings as
in Chapter 1 of Part 1 of the Energy Act 2004.”
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(3)
After paragraph 3 of that Schedule insert—
“3A
The Secretary of State shall not—
(a)
make any grant or loan under this Schedule for the purpose
of meeting any expenditure, or
(b)
give any guarantee in respect of borrowing undertaken for
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the purpose of meeting any expenditure,

if the expenditure is expenditure on anything for which the Nuclear
Decommissioning Authority has a financial responsibility under
section 21 of the Energy Act 2004.”
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Power to modify Chapter 1 of Part 1
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(1)
The Secretary of State may by order modify the following provisions of this
Chapter—
(a)
section 2 and Schedule 1;
(b)
sections 11 and 12 and Schedule 2; and
(c)
section 13 and Schedule 3.
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(2)
Before making an order under this section the Secretary of State must consult
the Scottish Ministers.
(3)
The consent of the Scottish Ministers is required for the making of an order
under this section that modifies any of those Ministers’ functions under this
Chapter.
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(4)
The power to make an order containing provision authorised by this section is
subject to the affirmative resolution procedure.
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Meaning of “nuclear site” etc. and “person with control”
(1)
In this Chapter “nuclear site” means a principal nuclear site or a contaminated
site.
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(2)
In this Chapter—

“contaminated site” means the whole or a part of a site which is not a
principal nuclear site but—
(a)
has been and remains contaminated (whether radioactively or
chemically) as a result of nuclear activities; or
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(b)
is the location of hazardous material;

“principal nuclear site” means the whole or a part of a site of any of the
following descriptions—

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
33

(a)
a site in respect of which a nuclear site licence is or is required
to be in force;
(b)
a site in respect of which such a licence would be required to be
in force if the licensing requirements of the 1965 Act applied to
the Crown;
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(c)
a site not falling within paragraph (a) or (b) in or on which there
is an NDA facility;
(d)
a site on which there is an installation used for practical research
into the production of energy by the fusion of atomic nuclei;
(e)
a site which has been a site falling within paragraphs (a) to (d)
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but which, without being such a site, remains contaminated
(whether radioactively or chemically) as a result of nuclear
activities carried on while it was such a site or before it became
one.
(3)
References in this Chapter to the person with control of an installation, site or
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facility are references—
(a)
in the case of—
(i)
a site in relation to which a nuclear site licence is held by a
person whose period of responsibility (within the meaning of
the 1965 Act) is still current, or
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(ii)
a nuclear installation in or on such a site,

to that person;
(b)
in the case of an installation or site which—
(i)
is an installation in or on a site occupied by or on behalf of the
Crown or is itself such a site, and
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(ii)
is an installation or site in the case of which there is a person
appointed by an order made by the Secretary of State to be the
person with control,

to that person;
(c)
in the case of a facility which—
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(i)
is not an installation to which paragraph (a) or (b) applies; but
(ii)
is operated on a single site to which one of those paragraphs
does apply,

to the person with control of the site;
(d)
in the case of an installation or facility which—
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(i)
is not an installation or facility to which paragraph (a), (b) or (c)
applies; but
(ii)
is operated on a single site by a person who (without being the
owner of the site) is in occupation of it,

to the occupier of the site;
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(e)
in the case of a facility which is operated otherwise than on a single site,
to the operator of the facility;
(f)
in the case of anything in or under the territorial sea adjacent to the
United Kingdom, to the Secretary of State;
(g)
in the case of a site to which none of the preceding paragraphs applies,
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to the owner of the site;
(h)
in the case of an installation or facility to which none of those
paragraphs applies, to the occupier of the site where the installation or
facility is located.

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
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(4)
An order for the purposes of subsection (3)(b) is subject to the negative
resolution procedure.
(5)
For the purposes of this section something is contaminated as a result of
nuclear activities if the contamination (whenever occurring), or any of it, is the
direct or indirect result of one or more of the following—
5
(a)
activities carried on in or on an installation, site or facility which was at
the time, or subsequently became, a nuclear installation, a principal
nuclear site or an NDA facility;
(b)
the storage or disposal of any matter or substance in or on an
installation, site or facility which was at the time, or subsequently
10
became, a nuclear installation, a principal nuclear site or an NDA
facility;
(c)
an incident occurring in or on an installation, site or facility which was
at the time, or subsequently became, a nuclear installation, a principal
nuclear site or an NDA facility;
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(d)
the discharge of anything from an installation, site or facility which was
at the time, or subsequently became, a nuclear installation, a principal
nuclear site or an NDA facility;
(e)
the transportation of hazardous material to or from a principal nuclear
site or an installation or facility in or on such a site;
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(f)
an incident affecting hazardous material being transported to or from a
principal nuclear site or an installation or facility in or on such a site.
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General interpretation of Chapter 1 of Part 1
(1)
In this Chapter—

“apparatus” includes machinery, equipment, appliances, tanks,
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containers, pipes and conduits;

“cleaning-up” and “decommissioning”, in relation to a site or installation,
includes—
(a)
the treatment, storage, transportation and disposal of
hazardous material and of other matter and substances that
30
need to be dealt with or removed in or towards making the site
or installation suitable to be used for other purposes; and
(b)
the construction of buildings and other structures to be used in
connection with the cleaning-up or decommissioning of the site
or installation;
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“contaminated site” has the meaning given by section 36(2);

“control”, in relation to an installation, site or facility, is to be construed in
accordance with section 36(3);

“Crown appointee”, in relation to an installation, site or facility, means—
(a)
a Minister of the Crown; or
40
(b)
a person for the time being holding an appointment under
section 36(3)(b) as the person with control of it;

“designated”, in relation to an installation, site or facility, is to be
construed in accordance with subsection (2);

“facility” includes a business or other undertaking and installations,
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vehicles or other property comprised in or used for the purposes of a
business or other undertaking;

“hazardous material” means—
(a)
nuclear matter;

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 1 — Nuclear decommissioning
35

(b)
radioactive waste; and
(c)
any other article or substance that has been and remains
contaminated (whether radioactively or chemically) as a result
(within the meaning of section 36) of nuclear activities;

“installation” includes buildings, structures and apparatus (whether or
5
not fixed to land);

“NDA facility” means a facility which—
(a)
is being or has been used for or in connection with the storage,
disposal or treatment of hazardous material; and
(b)
is a facility for the operation of which the NDA has or has had a
10
responsibility;

“nuclear installation” means—
(a)
an installation which is situated in or on a principal nuclear site
but is not comprised in an NDA facility;
(b)
pipes, conduits and other apparatus which are not situated in or
15
on a principal nuclear site but are connected to an installation
falling within paragraph (a);

“nuclear security” has the meaning given by section 9(9);

“nuclear site” has the meaning given by section 36(1);

“principal nuclear site” has the meaning given by section 36(2);
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“publicly owned”, in relation to a company, is to be construed in
accordance with subsection (3);

“site” includes—
(a)
land within the United Kingdom;
(b)
an area of territorial waters adjacent to the United Kingdom;
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(c)
the seabed and subsoil in any such area;

“treat”, in relation to any matter or substance, includes processing and
reprocessing (including any use as a material in a process for the
manufacture of nuclear fuel), and cognate expressions are to be
construed accordingly;
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“vehicle” includes vessel;

“voting rights” is to be construed in accordance with subsection (5).
(2)
An installation, site or facility is designated for the purposes of this Chapter
if—
(a)
it is designated by a direction under section 3; or
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(b)
the NDA otherwise has responsibilities in relation to it by virtue of such
a direction.
(3)
For the purposes of this Chapter a body corporate is a publicly owned
company if it is a company limited by shares and that company is one in
which—
40
(a)
a person specified in subsection (4) holds all the shares; or
(b)
two or more persons so specified, taken together, hold all the shares.
(4)
The persons mentioned in subsection (3) are—
(a)
the Treasury;
(b)
a Minister of the Crown;
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(c)
the NDA;
(d)
the UKAEA;
(e)
a publicly owned company; or

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 2 — Transfers relating to nuclear undertakings
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(f)
a nominee of a person falling within paragraphs (a) to (e).
(5)
Section 736A of the Companies Act 1985 (c. 6) (meaning of “voting rights” etc.)
applies for construing references in this Chapter to holding voting rights in a
company as it applies for construing section 736(1)(a) of that Act.
(6)
Sections 17 to 20 bind the Crown.
5
(7)
In this section—

“company” has the same meaning as in the Companies Act 1985;

“nuclear matter” means material which—
(a)
is nuclear matter within the meaning of the 1965 Act; or
(b)
would be such matter if it did not fall within an exception
10
prescribed by regulations under that Act;

“radioactive waste” has the same meaning as in the 1993 Act.
Chapter 2
Transfers relating to nuclear undertakings
Transfer by scheme of property etc.
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Nuclear transfer schemes
(1)
The Secretary of State may make a scheme providing for one or more transfers
authorised by this Chapter (a “nuclear transfer scheme”).
(2)
Nothing in this Chapter authorises the transfer in accordance with a nuclear
transfer scheme of a nuclear site licence.
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(3)
Before making—
(a)
a nuclear transfer scheme which transfers property, rights or liabilities
to or from the NDA or a subsidiary of the NDA, or
(b)
a nuclear transfer scheme not falling within paragraph (a) which he is
proposing to make for purposes connected with the carrying out of the
25
NDA’s functions,

the Secretary of State must consult the NDA.
(4)
Before making a nuclear transfer scheme which transfers property, rights or
liabilities to any person—
(a)
from BNFL, or
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(b)
from a wholly-owned subsidiary of BNFL,

the Secretary of State must consult BNFL.
(5)
Before making a nuclear transfer scheme that transfers property, rights or
liabilities to any person—
(a)
from the UKAEA, or
35
(b)
from a wholly-owned subsidiary of the UKAEA,

the Secretary of State must consult the UKAEA.
(6)
The consent of the Treasury is required for the making of a nuclear transfer
scheme.
(7)
A nuclear transfer scheme shall come into force at such time as the Secretary of
40
State may appoint, whether in the scheme or subsequently.

Energy Bill [HL]
Part 1 — The Civil Nuclear Industry
Chapter 2 — Transfers relating to nuclear undertakings
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(8)
Schedule 5 (which makes further provision about nuclear transfer schemes)
has effect.
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Transfers of publicly owned assets
(1)
A nuclear transfer scheme may provide for a transfer to—
(a)
a publicly owned company,
5
(b)
the NDA, or
(c)
a consenting person,

of property, rights and liabilities falling within subsection (2) that are set out in
the scheme.
(2)
The property, rights and liabilities that may be transferred are—
10
(a)
securities of BNFL;
(b)
securities of a company falling within subsection (3);
(c)
property, rights and liabilities of BNFL or the UKAEA;
(d)
property, rights and liabilities of a company falling within subsection
(3);
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(e)
property, rights and liabilities of a wholly-owned subsidiary of BNFL,
of the UKAEA or of a company falling within that subsection.
(3)
A company falls within this subsection if—
(a)
it is a nuclear company that is publicly owned; or
(b)
it is a company designated for the purposes of this section by an order
20
made by the Secretary of State.
(4)
The Secretary of State may designate a company for the purposes of this section
only if it is a publicly owned company to which—
(a)
securities of BNFL,
(b)
property, rights or liabilities of BNFL, or
25
(c)
property, rights or liabilities of a wholly-owned subsidiary of BNFL,

were transferred (whether in accordance with a nuclear transfer scheme or
otherwise) at a time when both the company and BNFL were publicly owned.
(5)
The Secretary of State must lay a copy of every order under subsection (3)
before Parliament.
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(6)
Nothing in this section authorises—
(a)
a transfer of securities of BNFL, or
(b)
a transfer of property, rights or liabilities of BNFL or of a wholly-owned
subsidiary of BNFL,

at a time when BNFL is no longer publicly owned.
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(7)
Nothing in this section authorises—
(a)
a transfer of securities of a company designated for the purposes of this
section, or
(b)
a transfer of property, rights or liabilities of such a company or of a
wholly-owned subsidiary of such a company,
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at a time when the company is no longer publicly owned.
(8)
Schedule 6 (which makes provision about the structure etc. of publicly owned
companies to which transfers are made that are authorised by this section) has
effect.