Climate Change and Sustainable Energy Bill

House of Commons

Session 2005 - 06
Internet Publications
Other Bills before Parliament

Climate Change and Sustainable Energy Bill

Climate Change and Sustainable Energy Bill
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Carbon emissions reduction targets
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Promotion of reductions in carbon emissions: gas transporters and suppliers
(1)
Section 33BC of the Gas Act 1986 (c. 44) (promotion of the efficient use by
consumers of gas) is amended as follows.
(2)
In subsection (1)—
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(a)
for “energy efficiency target” substitute “carbon emissions reduction
target”, and
(b)
for “an “energy efficiency obligation”” substitute “a “carbon emissions
reduction obligation””.
(3)
For subsection (2) substitute—
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“(2)
In this section “carbon emissions reduction target” means a target for
the promotion of any of the following—
(a)
measures for improving energy efficiency, that is to say,
efficiency in the use by consumers of electricity, gas conveyed
through pipes or any other source of energy which is specified
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in the order;
(b)
if the order so provides—
(i)
measures for increasing the amount of electricity
generated, or heat produced, by microgeneration;
(ii)
any other measures of a description specified in the
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order for increasing the amount of electricity generated,
or heat produced, using low-emissions sources or
technologies;
(iii)
measures for reducing the consumption of such energy
as is mentioned in paragraph (a).”
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(4)
After subsection (10) insert—
“(10A)
An order under this section shall not include provision made by virtue
of subsection (2)(b) which would be within the legislative competence
of the Scottish Parliament if it were contained in an Act of that
Parliament.”
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(5)
After subsection (12), add—
“(13)
In this section—
“microgeneration” has the same meaning as in the Climate
Change and Sustainable Energy Act 2006;
“plant” includes any equipment, apparatus or appliance.
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(14)
For the purposes of subsection (2)(b)(ii), electricity is generated, or heat
is produced, using low-emissions sources or technologies if it is
generated, or produced, by plant which relies wholly or mainly on a
source of energy or a technology mentioned in section 26(2) of the
Climate Change and Sustainable Energy Act 2006.”
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16
Promotion of reductions in carbon emissions: electricity distributors and
suppliers
(1)
Section 41A of the Electricity Act 1989 (c. 29) (promotion of the efficient use by
consumers of electricity) is amended as follows.

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(2)
In subsection (1)—
(a)
for “energy efficiency target” substitute “carbon emissions reduction
target”, and
(b)
for “an “energy efficiency obligation”” substitute “a “carbon emissions
reduction obligation””.
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(3)
For subsection (2) substitute—
“(2)
In this section “carbon emissions reduction target” means a target for
the promotion of any of the following—
(a)
measures for improving energy efficiency, that is to say,
efficiency in the use by consumers of electricity, gas conveyed
10
through pipes or any other source of energy which is specified
in the order;
(b)
if the order so provides—
(i)
measures for increasing the amount of electricity
generated, or heat produced, by microgeneration;
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(ii)
any other measures of a description specified in the
order for increasing the amount of electricity generated,
or heat produced, using low-emissions sources or
technologies;
(iii)
measures for reducing the consumption of such energy
20
as is mentioned in paragraph (a).”
(4)
After subsection (10) insert—
“(10A)
An order under this section shall not include provision made by virtue
of subsection (2)(b) which would be within the legislative competence
of the Scottish Parliament if it were contained in an Act of that
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Parliament.”
(5)
After subsection (12), add—
“(13)
In this section—
“microgeneration” has the same meaning as in the Climate
Change and Sustainable Energy Act 2006;
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“plant” includes any equipment, apparatus or appliance.
(14)
For the purposes of subsection (2)(b)(ii), electricity is generated, or heat
is produced, using low-emissions sources or technologies if it is
generated, or produced, by plant which relies wholly or mainly on a
source of energy or a technology mentioned in section 26(2) of the
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Climate Change and Sustainable Energy Act 2006.”
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Consequential amendments
The Schedule (which makes amendments consequential on sections 15 and 16)
has effect.

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Dynamic demand technologies
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Reduction of greenhouse gas emissions: report regarding dynamic demand
technologies
(1)
The Secretary of State must, not later than 12 months after this section comes
into force, publish a report on the contribution that is capable of being made by
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dynamic demand technologies to reducing emissions of greenhouse gases in
Great Britain.
(2)
The report must state the view of the Secretary of State as to whether it is
appropriate to take any steps to promote the use of such technologies, and, if it
is, what those steps are.
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(3)
In forming the view mentioned in subsection (2) the Secretary of State must
have regard, in particular, to any matters which would prohibit or inhibit the
use of any dynamic demand technology in any circumstance in which its use
could be expected to make a contribution to reducing emissions of greenhouse
gases in Great Britain; and the report must state the matters to which he has
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had regard.
(4)
In this section—
“dynamic demand technology” means any technology which enables—
(a)
the consumption of electricity, at a particular time, by a device
connected to a network, or
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(b)
the generation of electricity, at a particular time, by an
electricity microgenerating system connected to a network,
to be controlled or adjusted automatically by reference to, or to matters
relating to, the frequency of alternating current on the network at that
time;
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“electricity microgenerating system” has the same meaning as in section 4;
“network” means a distribution system (within the meaning of Part 1 of
the Electricity Act 1989 (c. 29)) or a transmission system (within the
meaning of that Part).
Community energy and renewable heat
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Promotion of community energy projects
(1)
It shall be the duty of the Secretary of State to take such steps as he considers
appropriate to promote community energy projects.
(2)
In the exercise of his duty under subsection (1), the Secretary of State shall have
regard to the desirability of promoting—
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(a)
schemes whose purpose or effect is the promotion of community
energy projects,
(b)
investment by others in such schemes and community energy projects,
and
(c)
the provision of advice and assistance (whether by public authorities or
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any other persons) to persons establishing and operating, or proposing
to establish and operate, community energy projects.
(3)
In this section—
“community energy project” means—

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(a)
the use of relevant plant for a community purpose,
(b)
the installation of relevant plant for use for a community
purpose, or
(c)
the adaptation of any plant for use as relevant plant for a
community purpose;
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“community purpose” means the purpose of—
(a)
generating electricity for consumption wholly or mainly in
qualifying premises, or
(b)
producing heat for use wholly or mainly for heating qualifying
premises;
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“plant” includes any equipment, apparatus or appliance;
“premises” means any building or buildings (and for this purpose
“building” includes part of a building);
“qualifying premises” means premises which—
(a)
are used wholly or mainly for purposes other than carrying on
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a trade, business or profession, and
(b)
in the case of premises which consist wholly or mainly of a
dwelling or dwellings, contain at least five dwellings;
“relevant plant” means any plant which—
(a)
in generating electricity or (as the case may be) producing heat,
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relies wholly or mainly on a source of energy or a technology
mentioned in section 82(7) of the Energy Act 2004 (c. 20)
(microgeneration), and
(b)
satisfies the condition in subsection (4).
(4)
Plant satisfies the condition in this subsection if its capacity does not exceed—
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(a)
in the case of plant for the generation of electricity, 20 megawatts, and
(b)
in the case of plant for the production of heat, 100 megawatts thermal.
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Parish councils and community councils: powers in relation to local energy
saving measures
(1)
A parish council or community council may encourage or promote any of the
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following—
(a)
microgeneration within their area;
(b)
the use within their area of electricity generated, or heat produced, by
microgeneration;
(c)
efficiency in the use, by persons in their area, of electricity, heat, gas,
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fuel and other descriptions or sources of energy;
(d)
reductions in the amounts of such energy, or sources of energy, used by
persons in their area;
(e)
production in their area of—
(i)
biomass, or
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(ii)
any fuel derived from biomass;
(f)
use in their area of, or of electricity generated, or heat produced, from
biomass or any such fuel.
(2)
The power conferred by subsection (1) includes, in particular, power—
(a)
on application, to provide information about goods or services
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available within their area (whether offered or provided by public
authorities or by any other persons), or

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(b)
to provide advice or assistance,

for the purpose of encouraging or facilitating any of the matters mentioned in
that subsection.
(3)
Assistance provided under subsection (1) may, if the council giving the
assistance think appropriate—
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(a)
be made subject to conditions, or
(b)
otherwise be provided on such terms as the council think appropriate.
(4)
For the purposes of subsections (4) to (7B) of section 137 of the Local
Government Act 1972 (c. 70) (power of local authorities to incur expenditure
for certain purposes not otherwise authorised)—
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(a)
any expenditure incurred by a parish council or community council
under this section is to be treated as having been incurred under that
section, and
(b)
any purpose for which expenditure may be incurred under this section
is to be treated as a purpose for which such a council are authorised by
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that section to incur expenditure.
(5)
Subsection (4) applies to expenditure incurred by a parish council or
community council under section 142 of the Local Government Act 1972 on
information as to the services provided by them under this section, or
otherwise relating to their functions under this section, as it applies to
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expenditure incurred under this section.
(6)
The appropriate person may by order amend the list of matters mentioned in
subsection (1) by—
(a)
adding any other matter whose addition would in the opinion of the
person making the order be likely to contribute to reduction of
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greenhouse gases in England and Wales;
(b)
omitting any matter for the time being included in the list.
(7)
In subsection (6), “the appropriate person” means—
(a)
in relation to England, the Secretary of State, and
(b)
in relation to Wales, the National Assembly for Wales.
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(8)
The power conferred by subsection (6) includes—
(a)
power to make different provision for different cases, and
(b)
power to make such supplemental or consequential provision
(including provision modifying this section) and such transitional or
saving provision as the person making the order thinks fit.
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(9)
The power of the Secretary of State to make an order under subsection (6) is
exercisable by statutory instrument.
(10)
No order under that subsection may be made by the Secretary of State unless a
draft of the order has been—
(a)
laid before Parliament, and
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(b)
approved by a resolution of each House.
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Renewable heat
(1)
It shall be the duty of the Secretary of State to take such steps as he considers
appropriate to promote the use of heat produced from renewable sources.

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(2)
For the purposes of subsection (1), heat produced by any plant is produced
from renewable sources to the extent that the plant is fuelled by renewable
sources.
(3)
The steps which the Secretary of State may take for the purposes of subsection
(1) include, in particular, steps for the purpose of promoting—
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(a)
the installation of plant which is or may be fuelled by renewable
sources,
(b)
the adaptation of plant so as to enable it to be fuelled by renewable
sources, or
(c)
the production of heat by plant which is fuelled partly by renewable
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sources and partly by other sources.
(4)
In this section—
“fossil fuel” means coal, substances produced directly or indirectly from
coal, lignite, natural gas, crude liquid petroleum or petroleum products
(and “natural gas” and “petroleum products” have the same meanings
15
as in the Energy Act 1976 (c. 76));
“plant” includes any equipment, apparatus or appliance;
“renewable sources” means sources of energy other than fossil fuel or
nuclear fuel.
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Reports under section 1 of the Sustainable Energy Act 2003: community
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energy projects and renewable heat
In section 1(1A) of the Sustainable Energy Act 2003 (c. 30) (annual reports on
progress towards sustainable energy aims)—
(a)
at the end of paragraph (b) insert—
“(ba)
things done during that period pursuant to section 19 of
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the Climate Change and Sustainable Energy Act 2006 for
the purpose of promoting community energy projects;
(bb)
things done during that period pursuant to section 21 of
that Act for the purpose of promoting the use of heat
produced from renewable sources;”, and
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(b)
in paragraph (c), after “sections 2 and 3” insert “of this Act”.
Electricity from renewable sources
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Renewables obligation: issue of green certificates
(1)
Section 32B of the Electricity Act 1989 (c. 29) (green certificates) is amended as
follows.
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(2)
In subsection (1), at the end insert “or, if the order so provides, to a person of
any other description specified in the order”.
(3)
In subsection (1A), at the end add “or, if the order provides that a certificate
may certify the matters within subsection (2ZA), (2AA), (2AB) or (2AC), the
matters within that subsection”.
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(4)
In subsections (2) and (2A), for “to an electricity supplier or to a Northern
Ireland supplier,” substitute “otherwise than to the operator of a generating
station,”.

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(5)
After subsection (2) insert—
“(2ZA)
The matters within this subsection are—
(a)
that two or more generating stations have, between them,
generated from renewable sources the amount of electricity
stated in the certificate; and
5
(b)
that it has been supplied to customers in Great Britain (or the
part of Great Britain stated in the certificate).”
(6)
After subsection (2A) insert—
“(2AA)
The matters within this subsection are—
(a)
that two or more generating stations have, between them,
10
generated from renewable sources the amount of electricity
stated in the certificate;
(b)
that none of them is a generating station mentioned in Article
54(1) of the Energy (Northern Ireland) Order 2003; and
(c)
that the electricity has been supplied to customers in Northern
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Ireland.
(2AB)
The matters within this subsection are—
(a)
that the generating station, or, in the case of a certificate issued
otherwise than to the operator of a generating station, a
generating station specified in the certificate, has generated
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from renewable sources the amount of electricity stated in the
certificate; and
(b)
that the electricity has been used in a permitted way.
(2AC)
The matters within this subsection are—
(a)
that two or more generating stations have, between them,
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generated from renewable sources the amount of electricity
stated in the certificate; and
(b)
that the electricity has been used in a permitted way.
(2AD)
For the purposes of subsections (2AB) and (2AC), electricity generated
by a generating station, or generating stations, of any description is
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used in a permitted way if—
(a)
it is used in one of the ways mentioned in subsection (2AE); and
(b)
that way is specified in the order as a permitted way—
(i)
in relation to all generating stations, or
(ii)
in relation to generating stations of that description.
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(2AE)
Those ways are—
(a)
being consumed by the operator of the generating station or
generating stations by which it was generated;
(b)
being provided to a distribution system or a transmission
system in circumstances in which its supply to customers
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cannot be demonstrated;
(c)
being used, as respects part, as mentioned in paragraph (a) and,
as respects the remainder, as mentioned in paragraph (b);
(d)
being used, as respects part, as mentioned in paragraph (a), (b)
or (c) and, as respects the remainder, by being supplied to
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customers in Great Britain or customers in Northern Ireland, or
both.”