Session 2010-11
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Energy Bill [HL]


SIXTH
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 97 to 102
Schedule 3
Clauses 103 to 105

[Amendments marked * are new or have been altered]

After Clause 97

LORD TEVERSON

LORD OXBURGH

35

Insert the following new Clause—

“Geothermal power

(1) Within eighteen months of this Act coming into force, 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.”

After Clause 98

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.”

Clause 99

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

36A

Page 75, line 31, leave out subsection (2)

After Clause 99

LORD JUDD

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD GREAVES

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 100

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 100 stand part of the Bill.

After Clause 101

LORD LEA OF CRONDALL

37A

Insert the following new Clause—

“PART 4A Energy revenues and taxes: price effects

Statement on energy revenues, taxes and subsidies

(1) The Treasury shall publish an annual financial statement of all fiscal instruments, including revenues, tax expenditures and subsidies, currently in force which relate to the supply of energy, and the quantum of money generated or provided by each of them.

(2) The statement shall also list any relevant regulations relating to those fiscal instruments.

(3) The Treasury shall also publish, along with the statement, an assessment of the degree to which each fiscal instrument differentially affects consumers with different levels of income.

(4) The statement published under subsection (1) must assess the effect of any revenue, expenditure or subsidy on the Energy component of the Retail Prices Index, and must specify what effect those fiscal instruments have distinct from other impacts on the energy component.”

After Clause 101

LORD LEA OF CRONDALL

37B

Insert the following new Clause—

“Energy Industry and Consumer Impact Forum

(1) The Secretary of State shall, within six months of this Act coming into force, establish an Energy Industrial and Consumer Impact Forum.

(2) The Forum shall consider the statement and assessment published under section (Statement on energy revenues, taxes and subsidies) and report on the economic and social impacts, including any regressive effects, of the fiscal instruments.

(3) If, in its report under subsection (2), the Forum identifies any regressive effects of any of the fiscal instruments on the Retail Price Index, the Treasury must publish a report laying out possible options to reduce that effect.

(4) For the purposes of subsection (3), the Treasury shall treat the quantum defined in section (Statement on energy revenues, taxes and subsidies)(1) as hypothecated for the purpose of considering possible options to reduce any regressive effects.

(5) Every six months following its establishment, the Forum shall produce a report for the Secretary of State, in relation to each carbon budgetary period specified under the Climate Change Act 2008, assessing the impact of each of the financial instruments listed in section (Statement on energy revenues, taxes and subsidies)(1) on each sector of the economy, including—

(a) manufacturing and services;

(b) public and private transport, including—

(i) road travel (by bus and private vehicles),

(ii) rail and air travel (both personal and freight);

(c) home and industrial heating.

(6) The Treasury shall publish a response to the Forum’s report within two months of receiving it.”

Clause 105

BARONESS SMITH OF BASILDON

LORD GRANTCHESTER

LORD DAVIES OF OLDHAM

38

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