Energy Bill

House of Commons

Session 2007 - 08
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Other Bills before Parliament

Energy Bill

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
36

6E
Property schemes in respect of offshore transmission licences
Schedule 2A (which provides for property schemes in connection with
grants of offshore transmission licences) shall have effect.”
(3)
In section 64 (interpretation of Part 1)—
(a)
in subsection (1A) (inserted by section 180 of the Energy Act 2004
5
(c. 20)), in paragraph (a), after “it is” insert “in an area of GB internal
waters,”, and
(b)
after that subsection insert—
“(1AA)
In subsection (1A)(a) “GB internal waters” means waters in or
adjacent to Great Britain which are between the mean low water
10
mark and the seaward limits of the territorial sea adjacent to
Great Britain, but do not form part of that territorial sea.”
(4)
Before Schedule 3 insert the Schedule set out in Schedule 2 (property schemes).
Part 3
Decommissioning of energy installations
15
Chapter 1
Nuclear sites: decommissioning and clean-up
Funded decommissioning programmes
41
Duty to submit a funded decommissioning programme
(1)
This section applies where, on or after the day on which this section comes into
20
force, a person applies for a nuclear site licence in respect of a site to which
subsection (2) applies.
(2)
This subsection applies to—
(a)
a site on which the person intends to construct a nuclear installation for
a purpose for which a licence under section 6(1)(a) of the Electricity Act
25
1989 (c. 29) or Article 10(1)(a) of the Electricity (Northern Ireland)
Order 1992 (S.I. 1992/231 (N.I.)) (generating licences) is required, and
(b)
a site to which this section previously applied by virtue of paragraph
(a) and on which the person intends to operate a nuclear installation
which was constructed for such a purpose.
30
(3)
The person must—
(a)
give written notice of the application to the Secretary of State, and
(b)
prepare and submit to the Secretary of State a funded decommissioning
programme.
(4)
A funded decommissioning programme is a programme which—
35
(a)
makes provision for the technical matters, and
(b)
specifies how the implementation of that provision, so far as it relates
to the designated technical matters, is to be financed.
(5)
The technical matters, in relation to a site, are—

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
37

(a)
the treatment, storage, transportation and disposal of hazardous
material (within the meaning of section 37 of the Energy Act 2004)
during the operation of a nuclear installation on the site,
(b)
the decommissioning of any relevant nuclear installation and the
cleaning-up of the site, and
5
(c)
activities preparatory to the matters mentioned in paragraph (b);

and for the purposes of paragraph (a) a nuclear installation is not to be
regarded as being operated at a time when it is being decommissioned.
(6)
The designated technical matters, in relation to a site, are—
(a)
such of the matters within subsection (5)(a) or (c) as are specified by the
10
Secretary of State by order, and
(b)
the matters within subsection (5)(b).
(7)
The funded decommissioning programme must, in particular, contain—
(a)
details of the steps to be taken under the programme in relation to the
technical matters,
15
(b)
estimates of the costs likely to be incurred in connection with the
designated technical matters, and
(c)
details of any security to be provided in connection with those costs.
(8)
A person who submits a programme must pay to the Secretary of State such fee
as may be determined in accordance with regulations under section 50, in
20
respect of the costs mentioned in subsection (9), at a time determined in
accordance with such regulations.
(9)
The costs are those incurred by the Secretary of State in relation to the
consideration of the programme, including, in particular, the costs of obtaining
advice in relation to—
25
(a)
the programme, or
(b)
information required in relation to the programme in accordance with
section 48(4).
42
Approval of a programme
(1)
The Secretary of State may approve or reject a funded decommissioning
30
programme submitted under section 41 in respect of a site.
(2)
The Secretary of State may approve a programme—
(a)
with or without modifications, and
(b)
unconditionally or subject to conditions.
(3)
A modification under subsection (2) may, in particular, impose obligations, or
35
additional obligations, on a body corporate associated with the person who
submitted the programme.
(4)
The Secretary of State’s powers under subsections (1) to (3) must be exercised
with the aim of securing that prudent provision is made for the technical
matters (including the financing of the designated technical matters).
40
(5)
Before deciding whether to approve or reject a programme, the Secretary of
State must consult each interested body about—
(a)
the programme, and
(b)
any modification which it is proposed to make, or any condition it is
proposed to impose,
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Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
38


so far as it relates to a function conferred on the interested body by or under an
enactment.
(6)
“Interested body” means—
(a)
the Health and Safety Executive,
(b)
in relation to a funded decommissioning programme for a site in
5
England and Wales, the Environment Agency, and
(c)
in relation to a funded decommissioning programme for a site in
Northern Ireland, the Department of the Environment for Northern
Ireland.
(7)
Before approving a programme with modifications or subject to conditions, the
10
Secretary of State must give the following persons an opportunity to make
written representations about the proposed modifications or conditions—
(a)
the site operator;
(b)
any other person with obligations under the programme;
(c)
in the case of proposed modifications, any person who would have
15
such obligations were the modifications made.
(8)
The Secretary of State may not reject a programme without informing the site
operator of the reasons for doing so.
(9)
The Secretary of State must act without unreasonable delay in reaching a
decision as to whether to approve or reject a programme.
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(10)
Where a nuclear site licence has been applied for, but not yet granted, in respect
of a site, references in this section to the site operator include references to the
person who has applied for a nuclear site licence in respect of the site.
43
Prohibition on use of site in absence of approved programme
(1)
This section applies where a person is required to submit a programme under
25
section 41 by reason of an application made for a nuclear site licence in respect
of a site.
(2)
It is an offence for the person to use or permit another person to use the site, by
virtue of the licence, at a time when there is no programme submitted in
accordance with that requirement and approved under section 42.
30
(3)
A person guilty of an offence under this section is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum, or
(b)
on conviction on indictment, to imprisonment for a term not exceeding
2 years or to a fine, or both.
35
Modification of approved programmes
44
Modification of approved programme
(1)
Where the Secretary of State has approved a funded decommissioning
programme in respect of a site, a person mentioned in subsection (2) may—
(a)
propose a modification of the programme, or
40
(b)
propose a modification of the conditions to which the approval of the
programme is subject.

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
39

(2)
Those persons are—
(a)
the Secretary of State,
(b)
the site operator, and
(c)
any other person who has obligations under the programme (provided
that the site operator consents to the proposed modification).
5
(3)
A proposal under subsection (1) may, in particular, propose—
(a)
that obligations, or additional obligations, be imposed on a body
corporate associated with the site operator, or
(b)
the removal of obligations imposed on a body corporate which is or
was so associated.
10
(4)
In subsection (1)(b) “modification of the conditions” includes the imposition of
conditions where the programme was approved unconditionally.
45
Procedure for modifying approved programme
(1)
This section applies in relation to a proposal for the modification of an
approved funded decommissioning programme, or of the conditions, under
15
section 44 (but is subject to regulations under section 46).
(2)
The proposal must be made by notice in writing given—
(a)
if the proposal is made by the Secretary of State, to the site operator, and
(b)
in any other case, to the Secretary of State.
(3)
Where a proposal is made, the site operator must pay to the Secretary of State
20
such fee as may be determined in accordance with regulations under section
50, in respect of the costs mentioned in subsection (4), at a time determined in
accordance with such regulations.
(4)
The costs are those incurred by the Secretary of State in relation to the
consideration of the proposal, including, in particular, the costs of obtaining
25
advice in relation to—
(a)
the proposal, or
(b)
information required in relation to the proposal in accordance with
section 48(4).
(5)
Where the Secretary of State makes the proposal, the following persons must
30
be given the opportunity to make written representations about the proposal—
(a)
the site operator;
(b)
any other person with obligations under the programme;
(c)
any person who would have such obligations if the proposed
modification were made.
35
(6)
The Secretary of State must—
(a)
decide whether the proposed modification is to be made, and
(b)
give notice of the decision, and the reasons for it, to every person who
has obligations under the approved funded decommissioning
programme, and
40
(c)
if the decision is to make the modification, give such notice to any other
person who will have such obligations by reason of the modification.
(7)
The Secretary of State’s power under subsection (6)(a) must be exercised with
the aim of securing that prudent provision is made for the technical matters
(including the financing of the designated technical matters).
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Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
40

(8)
Before deciding whether the proposed modification is to be made, the
Secretary of State must consult each interested body (within the meaning of
section 42(6)) in so far as the modification relates to a function conferred on the
interested body by or under an enactment.
46
Power to disapply section 45
5
(1)
The Secretary of State may make regulations disapplying section 45 in relation
to modifications which—
(a)
are proposed by a person within section 44(2) (other than the Secretary
of State), and
(b)
are of a description specified by the regulations.
10
(2)
Before making regulations under subsection (1), the Secretary of State must
consult—
(a)
the Health and Safety Executive,
(b)
the Environment Agency, and
(c)
the Department of the Environment for Northern Ireland,
15

in so far as the regulations relate to a function conferred on the body by or
under an enactment.
(3)
The regulations may, in particular—
(a)
describe a modification by reference to its financial consequences;
(b)
specify that, in determining whether a modification is of a specified
20
description or not, the cumulative financial effect of all modifications,
or all modifications of a specified class, within a specified period is to
be taken into account.
(4)
In the case of a modification to which the regulations apply, the site operator
must give notice of the modification to the Secretary of State in such manner as
25
may be specified in the regulations.
47
Time when modification takes effect
(1)
This section applies where, in the case of an approved funded
decommissioning programme, a modification is made of the programme or of
the conditions to which its approval is subject.
30
(2)
The modification does not take effect until the relevant time, and from that
time this Chapter has effect—
(a)
in the case of a modification of the programme, as if the programme
had been approved by the Secretary of State under section 42 in the
modified form;
35
(b)
in the case of a modification of the conditions to which the approval of
the programme is subject, as if the Secretary of State had approved the
programme under that section subject to the modified conditions.
(3)
“The relevant time” means—
(a)
in the case of a modification to which section 45 applies, the time
40
specified in the notice given under section 45(6)(b) of the Secretary of
State’s decision that the modification is to be made, and
(b)
in the case of a modification to which regulations under section 46
apply, the time specified in the notice of the modification given to the
Secretary of State in accordance with section 46(4).
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Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
41

(4)
The time specified in a notice, as mentioned in subsection (3)(a) or (b), must not
be earlier than the time the notice is given.
Information
48
Provision of information and documents
(1)
This section applies where either Condition A or Condition B is satisfied.
5
(2)
Condition A is that a funded decommissioning programme has been
submitted to the Secretary of State under section 41 and the Secretary of State
has not yet decided whether to approve or reject it.
(3)
Condition B is that—
(a)
a modification of a programme, or of the conditions subject to which a
10
programme is approved, has been proposed in accordance with section
44,
(b)
the modification is not one to which regulations under section 46(1)
apply, and
(c)
the Secretary of State has not yet decided whether the modification
15
should be made.
(4)
The Secretary of State may by notice in writing require a person within
subsection (5) —
(a)
to produce documents, or documents of a description, specified in the
notice, or
20
(b)
to provide information, or information of a description, specified in the
notice.
(5)
Those persons are—
(a)
the site operator;
(b)
any other person with obligations under the programme;
25
(c)
in a case where Condition A is satisfied, any body corporate associated
with the site operator and in relation to which the Secretary of State is
considering making a modification under section 42 which, if made,
would result in the body corporate having obligations under the
programme;
30
(d)
in a case where Condition B is satisfied, any person who would have
such obligations if the proposed modification were made.
(6)
A notice under subsection (4)—
(a)
must specify the period within which the documents or information are
to be provided or produced;
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(b)
may, in the case of information, require it to be provided in a manner
or form specified in the notice.
(7)
This section applies only to information and documents the provision or
production of which the Secretary of State considers necessary for the purpose
of making the decision referred to in subsection (2) or (3).
40
(8)
If at any time it appears to the Secretary of State that a person has failed to
comply with a notice under subsection (4), the Secretary of State may make an
application to the High Court under this section.

Energy Bill
Part 3 — Decommissioning of energy installations
Chapter 1 — Nuclear sites: decommissioning and clean-up
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(9)
If, on an application under this section, the High Court decides that the person
has failed to comply with the notice, it may order the person to take such steps
as it directs for securing that the notice is complied with.
(10)
Where a nuclear site licence has been applied for, but not yet granted, in respect
of a site, references in this section to the site operator include references to the
5
person who has applied for a nuclear site licence in respect of the site.
49
Power to review operation of programme
(1)
This section applies where a funded decommissioning programme has been
approved by the Secretary of State in relation to a site under section 42.
(2)
The Secretary of State may by notice in writing require information relating to
10
the operation of the programme from—
(a)
the site operator;
(b)
any other person who has obligations under the programme.
(3)
A notice under subsection (2) may be given only for the purpose of enabling
the Secretary of State to determine—
15
(a)
whether the programme is being complied with;
(b)
whether it will be possible for obligations under the programme arising
at a future date to be complied with;
(c)
whether the programme makes prudent provision for the technical
matters (including the financing of the designated technical matters).
20
(4)
Subsection (5) applies if the Secretary of State has reason to believe (whether as
a result of information obtained under this section or otherwise)—
(a)
that the programme is not being complied with,
(b)
that it will not be possible for an obligation under the programme
arising at a future date to be complied with, or
25
(c)
that the programme does not make prudent provision for the matters
mentioned in subsection (3)(c).
(5)
The Secretary of State may by notice in writing require information from—
(a)
the site operator,
(b)
any other person who has obligations under the programme, or
30
(c)
any body corporate associated with the site operator,

for the purpose of enabling the Secretary of State to determine whether to make
a proposal, or the nature of any proposal to be made, under section 44 in
respect of the programme.
(6)
Where a notice under subsection (2) or (5) has been given, the Secretary of State
35
may require the site operator to pay to the Secretary of State such fee in respect
of costs incurred by the Secretary of State in obtaining advice in relation to the
information as may be determined in accordance with regulations under
section 50.
(7)
A fee under subsection (6) must be paid at a time determined in accordance
40
with regulations under section 50.
(8)
If at any time it appears to the Secretary of State that a person has failed to
comply with a notice under subsection (2) or (5), the Secretary of State may
make an application to the High Court under this section.