Renewable Content Obligation Bill

House of Commons

Session 2008 - 09
Internet Publications
Other Bills before Parliament

Renewable Content Obligation Bill

Renewable Content Obligation Bill
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A
Bill
To
Make provision for the establishment of minimum levels of recyclates in
designated products and classes of product; to establish a scheme for the
certification of designated products; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
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Imposition of renewable content obligations
(1)
The Secretary of State may by order impose on each product manufacturer or
importer of a specified description the obligation mentioned in subsection (2)
(a “renewable content obligation”).
(2)
That obligation is an obligation, for each specified period, for the supplier to
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produce to the Administrator, by the specified date, evidence which—
(a)
is of the specified kind and in the specified form; and
(b)
shows that during the specified period the specified amount of
renewable content of designated products manufactured in or
imported into England and Wales.
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(3)
An order under subsection (1) is referred to in this Act as an “RC order”.
(4)
The Secretary of State may, by order, designate a product or a group of
products as being specified for the making of an RC order.
(5)
Before making an RC order the Secretary of State must consult such persons
appearing to him to represent persons whose interests will be affected by the
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order, and such other persons, as he considers appropriate.
(6)
The Secretary of State may not make a statutory instrument containing
regulations under this section unless a draft of the instrument has been laid
before, and approved by a resolution of, each House of Parliament.
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The Administrator
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(1)
An RC order may, for the purposes of provision made by or under this Act,
appoint a person as the Administrator.

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(2)
Such an order may—
(a)
confer or impose powers and duties on the Administrator for purposes
connected with the implementation of provision made by or under this
Act;
(b)
confer discretions on the Administrator in relation to the making of
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determinations under such an order and otherwise in relation to his
powers and duties; and
(c)
impose duties on designated product manufacturers and importers for
purposes connected with the Administrator’s powers and duties.
(3)
The powers that may be conferred on the Administrator by virtue of subsection
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(2) include, in particular—
(a)
power to require a designated product manufacturer or importer to
provide him with such information as he may require for purposes
connected with the carrying out of the Administrator’s functions;
(b)
power to impose requirements as to the form in which such
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information must be provided and as to the period within which it
must be provided;
(c)
power to impose charges of specified amounts on designated product
manufacturers or importers.
(4)
Sums received by the Administrator by virtue of provision within subsection
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(3)(c) must be used by him for the purpose of meeting costs incurred by him in
carrying out his functions as the Administrator.
(5)
The duties that may be imposed by virtue of subsection (2)(c) include, in
particular, duties framed by reference to determinations made by the
Administrator.
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(6)
Only the following persons may be appointed as the Administrator—
(a)
a body or other person established or appointed by or under any
enactment to carry out other functions;
(b)
a body established by virtue of subsection (8).
(7)
Where provision is made by an RC order for the appointment of a body or
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other person within subsection (6)(a), such an order may make such
modifications of any enactment relating to that body or person as the Secretary
of State considers appropriate for the purpose of facilitating the carrying out of
the functions of the Administrator.
(8)
An RC order may—
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(a)
establish a body corporate to be appointed as the Administrator;
(b)
make provision for the appointment of members of that body;
(c)
make provision in relation to the staffing of that body;
(d)
make provision in relation to the expenditure of that body;
(e)
make provision regulating the procedure of that body;
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(f)
make any other provision that the Secretary of State considers
appropriate for purposes connected with the establishment and
maintenance of that body.
(9)
The provision that may be made by virtue of subsection (8) in relation to a body
corporate includes, in particular, provision conferring discretions on—
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(a)
the Secretary of State;
(b)
the body itself; or
(c)
members or staff of the body.

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(10)
The Secretary of State may make grants to the Administrator on such terms as the
Secretary of State may determine.
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Determinations of amounts of product manufacture or importation
(1)
An RC order may make provision about how amounts of product manufacture
or importation are to be counted or determined for the purposes of provision
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made by or under this Act.
(2)
The provision that may be made by virtue of this section includes, in
particular—
(a)
provision for amounts of product manufacture or importation to count
towards discharging a renewable content obligation for a period only if
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the products manufactured or imported are of specified descriptions;
(b)
provision for amounts of renewable product content of specified
descriptions to count towards discharging such an obligation only up
to a specified amount;
(c)
provision for such an obligation not to be treated as discharged unless
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a specified minimum amount of renewable product content of a
specified description has been counted towards its discharge;
(d)
provision for only such proportion of any renewable product content of
specified descriptions as is attributable to a specified substance,
method, process or other matter to count towards discharging such an
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obligation;
(e)
provision as to how that proportion is to be determined;
(f)
provision for an amount of renewable product content of specified
descriptions to count towards discharging such an obligation only if, or
to the extent that, specified conditions are satisfied in relation to its
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inclusion in a designated product or products, the person by or to
whom it was supplied for the purposes of importation or the place at,
or for delivery to, which it was supplied;
(g)
provision for evidence produced by a product manufacturer or
importer in relation to any product not to count for those purposes if,
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after the supply to which the evidence relates, the product is supplied
by any person at or for delivery to a place outside England and Wales
or a specified part of England and Wales;
(h)
provision about the measurement of amounts of different descriptions
of renewable product content;
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(i)
provision about how measurements in different units of different
descriptions of renewable product content are to be aggregated;
(j)
provision for the application of presumptions where specified matters
are shown.
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Renewable content obligation certificates
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(1)
An RC order may make provision for the Administrator to issue certificates to
designated product manufacturers and importers (“RC certificates”).
(2)
An RC certificate is to certify—
(a)
that the supplier to whom it is issued has supplied the amount of
renewable content in the designated product, or has procured the
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amount of renewable content in an imported product set out in the
certificate;

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(b)
that that amount of such renewable content was supplied or procured
by him during the period stated in the certificate;
(c)
the other specified facts.
(3)
Such a certificate may be issued to a supplier only if—
(a)
he applies for it in the specified manner;
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(b)
his application includes evidence of the specified kind and in the
specified form; and
(c)
the other specified conditions are satisfied.
(4)
An RC order may authorise transfers of RC certificates (whether for a
consideration or otherwise) between persons of specified descriptions.
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(5)
Such an order may also provide that such a transfer is not to be effective
unless—
(a)
the specified details of it have been notified to the Administrator in the
specified manner and within the specified time; and
(b)
the other specified requirements have been complied with.
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(6)
If a supplier produces an RC certificate to the Administrator, it is to count for
the purposes of section 1(2) as sufficient evidence of the facts certified.
(7)
An RC order may provide that, in specified circumstances, evidence produced
by virtue of subsection (6) may count to the specified extent towards the
discharge of a renewable content obligation for a period even if it is produced
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after the time by which evidence had to be produced for the purposes of that
obligation.
(8)
Such an order may also provide that, in specified circumstances, evidence
produced by virtue of subsection (6) may count to the specified extent towards
the discharge of a renewable content obligation for a period that is later than
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the period stated in the certificate in question in accordance with subsection
(2)(b).
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Discharge of obligation by payment
(1)
An RC order may provide that a person who does not wholly discharge his renewable
content obligation for a period by the production of evidence must pay the
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Administrator the specified sum within the specified period.
(2)
The provision that may be made by virtue of subsection (1) includes, in particular,
provision—
(a)
for the specified sum to increase, in cases where that sum is not paid within a
specified period, at the specified rate until it is paid or until the occurrence of a
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specified event;
(b)
for specified amounts to be adjusted from time to time for inflation in the
specified manner;
(c)
for the repayment of sums in cases where provision made by virtue of section
4(7) applies in relation to a person;
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(d)
prohibiting the Administrator from taking steps to recover the
specified sum or a part of that sum if specified conditions are satisfied.
(3)
Provision within subsection (2)(b) may refer, in particular, to a specified index
or to other data, including any index or data as modified from time to time after
the coming into force of the order.
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(4)
An RC order may provide that, in a case in which the amount of payments by
virtue of subsection (1) which the Administrator has received by the specified
time in respect of renewable content obligations for any period falls short of the
amount due in respect of that period, the persons who—
(a)
were subject to renewable content obligations for that period, and
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(b)
are of a specified description,

must, within the specified period and in the specified circumstances, each
make a payment (or further payment) to the Administrator of an amount
calculated in the specified manner.
(5)
The provision that may be made by virtue of subsection (4) includes, in
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particular, provision for the making of adjustments and repayments after a
requirement to make payments has already arisen.
(6)
An RC order may require the Administrator to use, to the specified extent, the
sums received by him by virtue of this section for the purpose of meeting costs
incurred by him in carrying out his functions as the Administrator.
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(7)
To the extent the Administrator does not so use the sums so received, they
must be paid by him to designated product manufacturers or importers, or to
product manufacturers or importers of a specified description, in accordance
with the specified system of allocation.
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Imposition of civil penalties
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(1)
An RC order may—
(a)
designate a provision made by or under this Act for the purposes of this
section; and
(b)
provide that a person is to be liable to a civil penalty if—
(i)
he contravenes that provision; and
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(ii)
any other specified conditions are satisfied.
(2)
Where the Administrator is satisfied that a person (the “defaulter”) is so liable,
he may give a notice to the defaulter in the specified manner (a “civil penalty
notice”) imposing on the defaulter a penalty of such amount as the
Administrator considers appropriate.
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(3)
The penalty must not exceed the lesser of—
(a)
the specified amount; and
(b)
the amount equal to ten per cent of the turnover, as determined in the
specified manner, of the specified business of the defaulter.
(4)
The civil penalty notice must—
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(a)
set out the Administrator’s reasons for deciding that the defaulter is
liable to a penalty;
(b)
state the amount of the penalty that is being imposed;
(c)
set out a date before which the penalty must be paid to the
Administrator;
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(d)
describe how payment may be made;
(e)
explain the steps that the defaulter may take if he objects to the penalty;
and
(f)
set out and explain the powers of the Administrator to enforce the
penalty.
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(5)
The date for the payment of the penalty must not be less than 14 days after the
giving of the civil penalty notice.
(6)
A penalty imposed by virtue of this section must be paid to the
Administrator—
(a)
by the date set out in the civil penalty notice by which it is imposed; and
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(b)
in a manner described in that notice.
(7)
Sums received by the Administrator by virtue of this section must be paid to the
Secretary of State, who must pay them into the Consolidated Fund.
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Objections to civil penalties
(1)
A person to whom a civil penalty notice is given may give notice to the
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Administrator that he objects to the penalty on one or both of the following
grounds—
(a)
that he is not liable to pay it;
(b)
that the amount of the penalty is too high.
(2)
The notice of objection—
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(a)
must set out the grounds of the objection and the objector’s reasons for
objecting on those grounds; and
(b)
must be given to the Administrator in the specified manner and within
the specified period after the giving of the civil penalty notice.
(3)
The Administrator must consider a notice of objection given in accordance
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with this section and may then—
(a)
cancel the penalty;
(b)
reduce it;
(c)
increase it; or
(d)
confirm it.
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(4)
The Administrator must not enforce a penalty in respect of which he has
received a notice of objection before he has notified the objector of the outcome
of his consideration of the objection.
(5)
That notification of the outcome of his consideration must be given, in the
specified manner—
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(a)
before the end of the specified period; or
(b)
within such longer period as he may agree with the objector.
(6)
Where, on consideration of an objection, the Administrator increases the
penalty, he must give the objector a new civil penalty notice; and, where he
reduces it, the notification mentioned in subsection (5) must set out the
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reduced amount.
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Appeals against civil penalties
(1)
A person to whom a civil penalty notice is given may appeal to the court on one
or both of the following grounds—
(a)
that he is not liable to pay the penalty;
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(b)
that the amount of the penalty is too high.
(2)
An appeal under this section must be brought within such period after the
giving of the civil penalty notice as may be set out in rules of court.

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(3)
On an appeal under this section, the court may—
(a)
allow the appeal and cancel the penalty;
(b)
allow the appeal and reduce the penalty; or
(c)
dismiss the appeal.
(4)
An appeal under this section is to be by way of a rehearing of the
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Administrator’s decision to impose the penalty.
(5)
The matters to which the court may have regard when determining an appeal
under this section include all matters that the court considers relevant,
including—
(a)
matters of which the Administrator was unaware when he made his
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decision; and
(b)
matters which (apart from this subsection) the court would be
prevented from having regard to by virtue of rules of court.
(6)
An appeal under this section may be brought in relation to a penalty
irrespective of whether a notice of objection under section 7 has been given in
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respect of that penalty or whether there has been an increase or reduction
under that section.
(7)
In this section “the court” means the High Court.
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Interpretation
In this Act—
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“Administrator” means the person appointed by virtue of section 2 as the
Administrator for the purposes of provision made by or under this Act;
“renewable content” means material contributing towards the volume of
the designated product which has been recycled or recovered from
products previously placed on sale.
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“civil penalty notice” has the meaning given by section 6(2);
“renewable content obligation” has the meaning given by section 1(1);
“RC order” has the meaning given by section 1(3);
“specified” means specified in, or determined in accordance with, an RC
order.
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Short title, commencement and extent
(1)
This Act may be cited as the Renewable Content Obligation Act 2009.
(2)
This Act shall come into force on such day as the Secretary of State may by
order appoint.
(3)
This Act extends to England and Wales only.
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