Session 2010-11
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Energy Bill [HL]


SECOND
MARSHALLED
LIST OF AMENDMENTS
TO BE MOVED
IN GRAND COMMITTEE

The amendments have been marshalled in accordance with the Instruction of 12th January 2011, as follows—

Clauses 4 to 68
Schedule 1
Clauses 69 to 85
Schedule 2
Clauses 86 to 102
Schedule 3
Clauses 103 to 105

[Amendments marked * are new or have been altered]

Clause 4

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

10A

Page 5, line 22, at beginning insert—

“( ) An assessment made and provided under this section must clearly detail those energy efficiency improvements that qualify under the green deal.

( ) In making an assessment, the assessor must include all energy efficiency improvement options that qualify under the green deal.

( ) Nothing in this section prevents green deal assessors from identifying energy efficiency improvements in their assessments that—

(a) sit outisde the green deal; or

(b) collectively exceed the total amount qualifiable under a green deal plan, where this is clearly identified on the assessment.”

LORD WHITTY

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

11

Page 5, line 32, at end insert “based upon a standardised assessment, applying independently set criteria and in full consideration of the range and benefits of the improvements available to the improver with no bias towards any one green deal provider”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 4 stand part of the Bill.

After Clause 4

LORD TEVERSON

BARONESS PARMINTER

12

Insert the following new Clause—

“Local housing authorities

(1) Local housing authorities shall be empowered to arrange, with green deal providers, energy saving schemes that cover the whole or a part of housing estates, roads, districts or other local communities.

(2) Local housing authorities will negotiate on behalf of improvers to obtain savings that arise from economies of scale, which will be passed on to individual improvers.

(3) Local housing authorities will be empowered to award council tax rebates to participants in such communal schemes as incentives; and the rebates will be reclaimed from the Energy Company Obligation.”

Clause 5

LORD WHITTY

13

Page 6, line 19, at end insert—

“(ia) the structure of repayments over the length of the green deal plan, which, must be equitable to the bill payer and any subsequent bill payer in accordance with a methodology to be in the form specified in the framework regulations;”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

13A

Page 6, line 22, at end insert—

“( ) a term that confirms the ownership and maintenance of the improvements when the bill payer and the improver are different persons;”

LORD WHITTY

14

Page 6, line 26, at end insert—

“( ) a term requiring the green deal provider to present to the improver the amount of the green deal plan in terms of total credit payable, the amount of the regular payments and an Annual Percentage Rate (APR) calculated in a manner consistent with Consumer Credit (Total Charge for Credit) Regulations 1980 and in accordance with any supplementary guidance before a contract is entered”

15

Page 6, line 26, at end insert—

“( ) a term requiring the green deal provider only to offer a fixed rate for interest payments for the length of the green deal plan”

16

Page 7, line 2, leave out “and any fee”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 5 stand part of the Bill.

Clause 6

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

16A

Page 7, line 14, at beginning insert—

“(A1) Before any improvements are installed under section 7 or a plan is confirmed under sections 8 to 10, the improver must consult—

(a) the bill payer, where the improver is the owner of a property; or

(b) the owner of a property, where the improver is the bill payer,

about the assessment undertaken and options outlined in the assessment, and receive the consent of that person to the intended improvements.

(A2) At the time of consulting a person about the assessment and intended improvements under subsection (A1), the improver must provide the person with a copy of the assessment undertaken.

(A3) Where a person is consulted about intended improvements under this section, they must not unreasonably withhold their consent to those improvements.

(A4) The framework regulations shall make provision for an appropriate period for a person to consider and consent to intended improvements under this section.”

16B

Page 7, line 29, after “section” insert “5(2)(a)(ia) or”

The above-named Lords give notice of their intention to oppose the Question that Clause 6 stand part of the Bill.

Clause 7

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 7 stand part of the Bill.

Clause 8

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 8 stand part of the Bill.

Clause 9

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 9 stand part of the Bill.

Clause 10

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 10 stand part of the Bill.

Clause 11

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 11 stand part of the Bill.

Clause 12

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 12 stand part of the Bill.

Clause 13

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 13 stand part of the Bill.

Clause 14

LORD JENKIN OF RODING

16C*

Page 12, line 5, at end insert—

“( ) limiting the maximum penalty for any failure to comply with the obligations contained in section 12 or 13 to £500”

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 14 stand part of the Bill.

Clause 15

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 15 stand part of the Bill.

Clause 16

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 16 stand part of the Bill.

Clause 17

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 17 stand part of the Bill.

Clause 18

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 18 stand part of the Bill.

Clause 19

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 19 stand part of the Bill.

Clause 20

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

The above-named Lords give notice of their intention to oppose the Question that Clause 20 stand part of the Bill.

Before Clause 30

BARONESS PARMINTER

LORD TEVERSON

17

Insert the following new Clause—

“Annual report

(1) The Secretary of State must lay before each House of Parliament an annual report on the operation of Chapter 1 of Part 1 of this Act.

(2) Such an annual report must include appropriate indicators to assess whether the targets for emission reductions are being met.”

Clause 30

LORD WHITTY

18

Page 19, line 32, leave out paragraph (a)

19

Page 19, line 39, leave out paragraph (d)

Clause 31

LORD WHITTY

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

20

Page 20, line 22, leave out “(including any fee which may be payable)”

Clause 33

BARONESS NOAKES

20A*

Page 21, line 16, at end insert—

“(za) orders and regulations under section 1 or 2,”

LORD JENKIN OF RODING

20B*

Page 21, line 17, at end insert—

“(aa) regulations and orders under sections 1(4), (8) and (9) and 2(6) and (9),”

BARONESS NOAKES

20C*

Page 21, line 22, leave out “(4)(a)” and insert “(4)(za), (a)”

LORD JENKIN OF RODING

20D*

Page 21, line 22, after “(4)(a),” insert “(aa),”

Clause 35

BARONESS MADDOCK

LORD TEVERSON

20E*

Page 22, line 8, leave out “let”

20F*

Page 22, line 9, at beginning insert “let”

20G*

Page 22, line 9, after second “tenancy” insert “or an assured agricultural occupancy”

20H*

Page 22, line 11, at beginning insert “let”

20J*

Page 22, line 12, at end insert “or a protected occupancy for the purposes of the Rent (Agriculture) Act 1976”

20K*

Page 22, line 12, at end insert—

“( ) let under any of the types of tenancy contained in paragraphs 1 to 9 of Part 1 Schedule 1 to the Housing Act 1988;

( ) a house in multiple occupation under section 254 of the Housing Act 2004; or

( ) such other categories of dwellings as the Secretary of State considers should be included in the regulations”

Clause 36

BARONESS NOAKES

20L*

Page 23, line 8, after “available” insert “, and known to be available,”

20M*

Page 23, line 14, at end insert—

“( ) a consideration of the willingness of tenants of PR properties to agree to repay the financial assistance available to improve the energy efficiency of PR properties”

20N*

Page 23, line 15, leave out “2014” and insert “2015”

Clause 37

BARONESS MADDOCK

LORD TEVERSON

20P*

Page 23, line 18, leave out subsection (1)

BARONESS NOAKES

20Q*

Page 23, line 20, after “36(6),” insert—

“( ) after the approval of the report by each House of Parliament,”

BARONESS MADDOCK

LORD TEVERSON

20R*

Page 23, line 26, leave out “may make regulations” and insert “shall make regulations to come into force no later than 1 April 2012 setting a minimum energy efficiency level for domestic PR properties and”

20S*

Page 23, line 32, leave out “level of energy efficiency” and insert “minimum energy efficiency level”

20T*

Page 23, line 36, at end insert “and as will ensure the domestic PR property meets the minimum energy efficiency level provided for by the regulations”

20U*

Page 23, line 41, at end insert “, and

(c) provide for the establishment of a national or local register of domestic PR properties for the purpose of distributing information relevant to this Act to landlords of domestic PR properties and their tenants and for other purposes relevant to this Act”

20V*

Page 24, line 4, after “regulations” insert—

““minimum energy efficiency level” means Band E or above expressed in accordance with regulation 11(1)(a) of the Energy Performance Regulations or any higher level set in accordance with subsection (7)”

20W*

Page 24, line 20, leave out “subsection (6)” and insert “subsection (5)”

20X*

Page 24, line 21, leave out subsection (8) and insert—

“( ) The Secretary of State shall no earlier than 1 January 2016 and no later than 31 December 2019 make at least one further increase to the minimum energy efficiency level.”

BARONESS NOAKES

20Y*

Page 24, line 22, leave out “2015” and insert “2016”

Clause 39

BARONESS MADDOCK

LORD TEVERSON

20Z*

Page 25, line 7, leave out “may” and insert “shall”

20AA*

Page 25, line 9, at end insert “including in particular where a notice has been served under this section which requires a landlord to make relevant energy efficiency improvements provision that, if at the end of the period for compliance in the notice, the landlord has failed to comply with the notice in whole or in part, the local authority may enter the property and carry out relevant energy efficiency improvements that the local authority considers necessary to ensure the domestic PR property meets the minimum energy efficiency level and recover from the landlord any costs and expenses reasonably incurred by it in doing so”

20AB*

Page 25, line 18, leave out “£5,000” and insert “£10,000 for each domestic PR tenancy”

LORD WHITTY

21

Page 25, line 26, leave out “(including any fee which may be payable)”

Clause 40

BARONESS MADDOCK

LORD TEVERSON

21A*

Page 26, line 4, leave out subsection (1)

BARONESS NOAKES

21B*

Page 26, line 6, after “36(6)” insert—

“( ) after the approval of the report by each House of Parliament,”

21C*

Page 26, line 37, leave out “2015” and insert “2016”

Clause 42

LORD WHITTY

22

Page 27, line 32, leave out “(including any fee which may be payable)”

23

Page 27, line 46, leave out “(including any fee which may be payable)”

Clause 45

LORD WHITTY

24

Page 30, line 22, leave out “(including any fee which may be payable)”

Clause 52

LORD WHITTY

25

Page 34, line 33, leave out “(including any fee which may be payable)”

Clause 55

LORD WHITTY

26

Page 36, line 42, leave out “(including any fee which may be payable)”

27

Page 37, line 11, leave out “(including any fee which may be payable)”

Clause 58

LORD WHITTY

28

Page 39, line 31, leave out “(including any fee which may be payable)”

Before Clause 61

LORD TEVERSON

BARONESS PARMINTER

29

Insert the following new Clause—

“Carbon neutral buildings and developments

(1) The Secretary of State shall make building regulations that require newly built domestic housing to be designed and constructed in such a way as to be carbon neutral.

(2) These regulations will apply either to individual dwellings or to new developments as a whole.

(3) These regulations shall come into force during 2016.

(4) Within one year of the passing of this Act, the Secretary of State shall, by order made by statutory instrument, prescribe the date at which building regulations will come into force that require commercial buildings or commercial developments as a whole to be carbon neutral.

(5) The definition of the term carbon neutral shall be determined by the Secretary of State following consultation with the construction industry, the Climate Change Committee, environmental groups, energy companies and other experts and interested parties.”

Clause 61

LORD JENKIN OF RODING

29A*

Page 42, line 23, leave out subsection (6)

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 61 stand part of the Bill.

Clause 62

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 62 stand part of the Bill.

Clause 63

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 63 stand part of the Bill.

Clause 64

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 64 stand part of the Bill.

After Clause 64

BARONESS MADDOCK

LORD TEVERSON

30

Insert the following new Clause—

“Advice on benefits of new or under-utilised technologies

(1) For the purpose of enabling the Secretary of State to assess the benefits of new or under-utilised technologies in reducing home heating costs and dealing with fuel poverty, the Secretary of State must request the advice of the bodies specified in subsection (2) on the following technologies—

(a) passive flue gas heat recovery systems (“PFGHR systems”);

(b) voltage optimisation technologies;

(c) standby down-powering technologies;

(d) dynamic demand technologies;

(e) district network connection technologies; and

(f) such other technologies as the Secretary of State thinks appropriate.

(2) The bodies referred to in subsection (1) are—

(a) the Energy Saving Trust;

(b) the Fuel Poverty Advisory Group.

(3) A request for advice made pursuant to subsection (1) may also include a request for advice as to how those technologies can assist in combating climate change.

(4) The Climate Change Committee must within 12 months of the coming into force of this section consider and produce a report on the ways in which the technologies specified in subsection (1) can assist in reducing carbon emissions.

(5) In this section—

“PFGHR systems” means technology that can use the waste heat from condensing boilers in order to heat water;

“voltage optimisation technologies” are technologies that lower the input of voltage to electrical equipment from that at which electricity is currently generated;

“standby down-powering technologies” are methods by which electrical equipment is turned off, or reduced, during periods of non-use;

“dynamic demand” has the same meaning as in the Climate Change and Sustainable Energy Act 2006;

“district network connection technologies” are technologies that enable consumers to link up lower cost and lower polluting energy generation.”

Clause 65

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 65 stand part of the Bill.

Clause 66

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 66 stand part of the Bill.

After Clause 66

BARONESS NOAKES

30A*

Insert the following new Clause—

“Annual report on cost of energy company obligations

(1) The Secretary of State must prepare a report each year containing an assessment of the costs transferred from energy suppliers to their customers in meeting obligations imposed under this Chapter.

(2) The first report under this section must be published no later than one year after this section comes into force and subsequent reports must be published no later than one year after the previous report.

(3) A report under this section must include—

(a) the tonnes of carbon saved as a result of energy suppliers meeting their obligations under this Chapter,

(b) the costs incurred by energy suppliers as a result of meeting their obligations under this Chapter,

(c) the costs passed through to energy bills of the customers of those energy suppliers analysed into each tariff offered by them, and

(d) such other information as the Secretary of State considers necessary in order to allow an understanding of how the costs and benefits of implementing this Chapter affect the customers of energy suppliers.

(4) “Energy supplier” means—

(a) gas transporters and gas suppliers, and

(b) electricity distributors and electricity suppliers.”

Clause 67

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Clause 67 stand part of the Bill.

After Clause 67

BARONESS MADDOCK

LORD TEVERSON

31

Insert the following new Clause—

“Sustainable energy plans

(1) The purpose of this section is to facilitate the involvement of principal councils and of citizens resident in their areas in action taken to promote sustainable energy policies in order to help achieve the following objectives—

(a) the reduction of carbon emissions;

(b) the reduction of home heating costs;

(c) the security of energy supplies;

(d) the achievement of national fuel poverty targets.

(2) Every principal council may, and if the condition specified in subsection (3) is satisfied must, publish a sustainable energy plan (“a plan”) specifying the body’s contribution to achieving the objectives specified in subsection (1).

(3) The condition referred to in subsection (2) is that a petition requesting the publication of a plan, signed by at least 5% of electors in the area of the council, has been delivered to the council.

(4) The Secretary of State must, within 12 months of the passing of this Act, make regulations specifying the rules for the drawing up and presenting of petitions pursuant to this section.

(5) Without prejudice to the generality, a plan must specify the steps that the council proposes to take to promote, namely—

(a) energy efficiency in buildings;

(b) microgeneration;

(c) renewable energy;

(d) combined heat and power.

(6) A plan prepared by a council may—

(a) request such new functions as in the opinion of the council would enable it to make a greater contribution to achieving the objectives specified in subsection (1); and

(b) make a recommendation to the Secretary of State for a transfer of functions from another body to itself provided that no such recommendation may be made unless the council has consulted the person to whose functions it relates.

(7) Within six months of receiving any request pursuant to subsection (6)(a) or recommendation pursuant to subsection (6)(b), the Secretary of State must—

(a) either adopt and implement, or take the necessary steps to commence the process of implementation, or

(b) reject,

the request or recommendation and in either case shall give reasons for the decision.

(8) Where any functions are conferred or transferred pursuant to this section, the Secretary of State shall ensure that the monies necessary for the discharge of those functions are provided or transferred.

(9) Any principal council on which functions are conferred or to which functions are transferred under this section must determine how the functions are then performed.

(10) Where the Secretary of State is spending money in an area covered by a plan in order to achieve any of the objectives specified in subsection (1), and in the Minister’s opinion—

(a) any measure contained in a plan is a more efficient way of achieving the Minister’s objectives; and

(b) offers better value,

then the Minister shall provide resources for the principal council to implement those measures in its plan.

(11) Before drawing up a plan pursuant to this section, a principal council must—

(a) consult such persons in its area as in its opinion will have an interest in the plan;

(b) establish a panel of representatives of local persons;

(c) consult and try to reach agreement with the panel about the content of the plan.

(12) A panel set up recognised pursuant to this section must include representatives of parish councils in the council’s areas.

(13) A principal council shall select the representatives of parish councils to be members of the panel, unless parish councils nominate or otherwise select a member to serve on the panel within 6 months of its establishment.

(14) In this section—

“fuel poverty” shall be construed in accordance with the provisions of section 1 of the Warm Homes and Energy Conservation Act 2000;

“principal council” means a county borough council, a district council, a metropolitan district council or a London Borough Council;

“microgeneration” has the same meaning given by section 26 of the Climate Change and Sustainable Energy Act 2006.”

32

Insert the following new Clause—

“Promotion of reduction of home heating costs: reduced VAT rate

(1) For the purpose of enabling consumers to purchase energy efficient products in order to reduce home heating costs and carbon emissions, the Chancellor of the Exchequer must within 12 months lay before Parliament an order to reduce the rate of VAT to 5% on—

(a) passive flue gas heat recovery systems; and

(b) low emissivity glass.

(2) An order pursuant to this section shall be made by statutory instrument subject to the negative resolution procedure.

(3) In this section—

“passive flue gas heat recovery systems” means technology that can use the waste heat from condensing boilers in order to heat water;

“low emissivity glass” has the same meaning as in Part L of the Building Regulations.”

Schedule 1

BARONESS NOAKES

Baroness Noakes gives notice of her intention to oppose the Question that Schedule 1 be the First Schedule to the Bill.

After Clause 69

LORD TEVERSON

BARONESS PARMINTER

33

Insert the following new Clause—

“Energy tariffs

Energy tariffs

(1) After consultation with electricity and gas retail sellers, and consumer groups, the Secretary of State shall introduce regulations that make it mandatory for electricity and gas through pipeline supply companies supplying to domestic properties to configure their tariffs so that the initial units of energy supplied are at a lower cost to the consumer than remaining units.

(2) The principles of the scheme shall be—

(a) that the number of lower priced initial units shall represent the average amount of energy required for a household of that size to keep warm, clean and fed to a modest but acceptable standard;

(b) the tariff price for the initial units shall be equal to the medium term marginal cost of the production of that energy;

(c) overall, the new combined tariff should be revenue neutral to the energy supply companies.

(3) The scheme and its tariffs will be assessed and audited by the Office of the Gas and Electricity Markets, who will also be responsible for the capture, analysis, and reporting of all information to the Secretary of State regarding the implementation and management of the scheme.”

Clause 70

LORD JENKIN OF RODING

33A*

Page 51, line 25, leave out paragraph (e)

BARONESS NOAKES

33B*

Page 51, line 39, after “section” insert “other than subsection (2)(e)”

33C*

Page 51, line 40, at end insert—

“( ) A statutory instrument containing regulations under subsection (2)(e) may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.”

After Clause 74

BARONESS MADDOCK

LORD TEVERSON

34

Insert the following new Clause—

“Cost benefit assessment of energy saving and energy generating

(1) The Secretary of State must within 12 months of the passing of this Act publish an assessment (“the assessment”) of the costs and benefits of saving energy compared with those of generating energy.

(2) In this section saving energy includes measures to—

(a) reduce demand for energy;

(b) conserve energy; and

(c) use energy more efficiently.

(3) Before publishing the assessment, the Secretary of State must consult—

(a) such bodies as in the Secretary of State’s opinion represent—

(i) the energy efficiency industry;

(ii) the energy generating industry; and

(iii) environmental interests; and

(b) such other persons as considered appropriate.

(4) The Secretary of State must take into account the assessment when making any estimates, projections or policies regarding the amount of energy that is required to be generated in order to satisfy the needs of the United Kingdom.”

After Clause 97

LORD TEVERSON

LORD OXBURGH

35

Insert the following new Clause—

“Geothermal power

(1) Within eighteen months of this Bill receiving Royal Assent, the Secretary of State shall, after a period of consultation with industry, geological experts, the devolved administrations, local authorities, energy producers and other interested parties, put into place for the United Kingdom a licensing system and regulations for the exploitation of heat from deep geothermal sources for both the direct use of that heat and for the generation of electricity.

(2) The licences shall relate to—

(a) individual geographically delineated areas on land;

(b) the heat held by rocks greater than one kilometre below the surface.

(3) Licences shall give exclusive exploration and production rights for the purpose of energy production from geothermal sources, both direct heat and electricity generation, to the licensee, for that area, and for a specific period of time.

(4) The Secretary of State shall lay down regulations for the method of allocation of licences to those organisations wishing to explore or exploit those resources, or both.

(5) The Secretary of State shall undertake the first round of allocations within six months of the licensing regulations under subsection (1) being approved.

(6) Any organisation already undertaking exploration or exploitation from geothermal sources within the United Kingdom, in that they have already undertaken, at the time the licensing regime comes into force, boring for the purpose of exploiting geothermal heat to below one kilometre, shall be entitled to hold the first licence awarded for that licence area, and any licence fee or other consideration for that licence area as a part of the licencing regime will then be determined by arbitration under rules determined by the Secretary of State reflecting the fees or other consideration paid for licences deemed to have similar potential.

(7) The holding of a licence for the exploration or exploitation of deep geothermal heat, or both, shall not convey any automatic rights in terms of planning permissions for surface development, or give any rights in terms of surface access.”

Before Clause 99

LORD WHITTY

36

Insert the following new Clause—

“Secretary of State not to grant petroleum licence incompatible with offshore renewable energy site

(1) In this section, “offshore renewable energy site” means a site in United Kingdom territorial waters or the REZ which is developed or operated, or is intended to be developed or operated, for—

(a) generating electricity from wind, wave or tidal energy, or

(b) transmitting electricity generated in that way,

in respect of which the Crown Estates have granted a lease, licence, agreement to lease or agreement to license for that purpose.

(2) The Secretary of State may not grant a licence under section 3 of the Petroleum Act 1998 (licence to search and bore for and get petroleum) to the extent that the licence would permit an activity within an offshore renewable energy site, unless the person entitled to the benefit of the lease, licence or agreement in respect of that site so agrees in writing to the grant.”

After Clause 99

LORD JUDD

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

37

Insert the following new Clause—

“Bodies able to produce and supply renewable energy

Production and supply of renewable energy by National Park Authorities and the Broads Authority

(1) Section 11 of the Local Government (Miscellaneous Provisions) Act 1976 (production and supply of heat etc. by local authorities) is amended as follows.

(2) After subsection (1) insert—

“(1A) In subsection (1) the definition of “a local authority” shall be understood to include the Broads Authority and National Park Authorities when applied to subsection (1)(a), (b) and (d) (production of heat or electricity or both; establishment and operation of generating stations for production of heat or electricity or both; and use or sale of heat or electricity).”

(3) In subection (3), after “a local authority” insert “including the Broads Authority and National Park Authorities”.”

Clause 105

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

38

Page 79, line 2, after “Energy” insert “Framework”