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4 Oct 2011 : Column 1105

56: Clause 52 page 34, line 29, leave out Clause 52

57: Clause 53page 35, line 17, leave out Clause 53

58: Clause 54 page 36, line 24, leave out Clause 54

59: Clause 55 page 37, line 11, leave out "about-" and insert "-

(za) for a local authority to enforce any requirement imposed by or under the regulations;"

60: Clause 55 page 37, line 12, at beginning insert "about"

61: Clause 55 page 37, line 14, at beginning insert "about"

62: Clause 55 page 37, line 16, leave out "both cases" and insert "cases falling within paragraph (a) or (b)"

63: Clause 56 page 38, line 7, leave out subsection (1)

64: Clause 58 page 39, line 43, leave out "costs" and insert "expenses"

65: Clause 58 page 40, line 21, leave out "costs" and insert "expenses"

66: Clause 59 page 40, line 35, leave out subsection (1)

67: Clause 59 page 41, line 16, leave out ", "let the property" and "tenant"" and insert "and "let the property""

68: Clause 59 page 41, line 17, after "regulations" insert "(and "let the property" may be defined to include "continue to let the property")"

69: Clause 61 page 42, line 40, leave out "costs" and insert "expenses"

70: Clause 62 page 43, line 8, leave out subsection (2)

71: Clause 62 page 43, line 10, leave out subsections (3) and (4) and insert-

"(3) Orders under this Chapter are subject to the negative procedure.

(4) Regulations under this Chapter are subject to the affirmative procedure."

72: Clause 69 page 53, line 23, at end insert-

"(6A) In sections 28 to 30F and section 38 of the 1986 Act (enforcement of relevant requirements etc) a reference to a "relevant requirement" is to be treated as including a reference to a requirement imposed on a gas transporter or gas supplier under this section.

(6B) In sections 25 to 28 of the 1989 Act (enforcement of relevant requirements etc) a reference to a "relevant requirement" is to be treated as including a reference to a requirement imposed on an electricity distributor or electricity supplier under this section."

Amendments 36 to 72 agreed.

Amendment 73

Moved by Lord Marland

73: Clause 73 page 56, line 9, leave out paragraph (b)

Lord Marland: My Lords, it is convenient now to speak to Amendments 73 to 95, 98 to 103 and 105 to 135 together.



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First, on the upstream petroleum infrastructure, Amendments 77 to 87 have been made in the other place to correct some unintended consequences of the drafting of these clauses. Your Lordships may recall that Calor Gas was concerned that an LPG project in which it is investing might unintentionally be caught. We have resolved this problem. We have also separated the upstream and downstream regimes for third party access so as to enable the new upstream regime set out in the Bill to be considered by Parliament in parallel with a separate legislative exercise that affects the downstream sector only, and which is required as part of the implementation of the EU gas directive.

The clause covering nuclear-funded decommissioning programmes was removed by the Government in Committee in the other place, Amendment 102; and was reinstated in an improved form on Report, Amendment 93. The amendment places a requirement on the Secretary of State that he cannot enter into an agreement under the clause unless he is satisfied that the agreement includes adequate provision for the modification of the funded decommissioning programme in the event that it ceases to make prudent provision.

Two new provisions-Amendments 94 and 95-were also introduced to facilitate the reuse of existing capital assets for CCS where they are suitable. The first of these amends the decommissioning arrangements for offshore energy structures to remove the possibility that the previous owners and operators of those facilities for petroleum production could be made liable for their decommissioning once they have been used for carbon capture and storage demonstration. The second enables the owner of an existing pipeline to compulsorily acquire rights from affected landowners to transport carbon dioxide through the pipeline rather than the substance which he already has rights to use the pipeline for.

On the small provision on the regulation of security at civil nuclear construction sites-Amendment 92-there are potential security risks from early on in the construction of new nuclear sites. The Secretary of State currently has no powers to make regulations to require owners of new civil nuclear sites to put security measures in place while sites are under construction. This amendment will permit him to do so.

Amendments 100, 101 and 133 extend the renewable heat incentive legislation to cover Northern Ireland, enabling it to make its own regulations to incentivise renewable heat.

The noble Lord, Lord Judd, raised an important issue in this House, and I am pleased that we have been able to fulfil his request, that Amendment 99 was passed in the other place unambiguously to allow national park authorities and the Broads Authority to generate and sell renewable electricity, which I hope noble Lords will agree is an exciting and positive change.

The remaining amendments in this group: Amendments 73 to 76, 88 to 91, 98, 102, 103, 105 to 132 and 134 to 135 in this group are minor and technical and I do not wish to take up the House's time with these, so I shall simply go on to say that I hope noble Lords will be content to accept these

4 Oct 2011 : Column 1107

amendments as passed in another place. I beg to move that the House do agree with the Commons in their Amendments 73 to 95.

Lord Judd: The House will not be surprised when I say a very warm thank you to the Minister, his officials and all those involved in introducing the amendment, which empowers the National Parks and the Broads Authority to generate renewable energy. I am sure that that will be welcomed. It is now a challenge to the parks and the Broads Authority to demonstrate how those important areas can make a real contribution to energy needs in a socially responsible way which is completely compatible with their overriding objective: to enhance and preserve the countryside for which they are responsible. Now that the Government have responded so positively, I hope that the parks and broads authorities will prove that they can set standards for the nation as a whole.

I would be remiss not to say that the way in which the Minister has conducted the Bill is a model. He has been untiringly-sometimes dangerously-charming, but he has delivered on his promises, and that is something very special. If I may say so, it would not have been possible without the leadership that has come from this side of the House from my noble friend Lady Smith of Basildon. Watching them both at work demonstrates a very interesting and constructive way that could enhance the quality of our democracy. There have been real, important, searching debates, but they have all been conducted in a most civilised and encouraging way. I hope that a lot of people will take the time to read the debate and see how it should be done. Anyway, I thank both noble Lords very much.

Amendment 73 agreed.

Amendments 74 to 95

Moved by Lord Marland

74: Clause 73 page 56, line 10, leave out subsection (6) and insert-

"(6) Regulations under this section are subject to the negative procedure."

75: Clause 75 page 57, line 21, leave out subsection (2)

76: Clause 79 page 61, line 13, leave out from "consultation" to "the" in line 14 and insert "before, as well as consultation after,"

77: Clause 80 page 62, line 10, after "have" insert "piped"

78: Clause 80 page 62, line 14, at end insert-

"(1A) This section does not apply by virtue of subsection (1)(c) where a person makes an application to the owner of a gas processing facility for a right to have gas processed by the facility for a downstream purpose (as to which, see section 12 of the Gas Act 1995)."

79: Clause 80 page 63, line 39, at end insert-

"(10A) A notice under subsection (10) may also contain such provisions as the Secretary of State considers appropriate for the purpose of ensuring that no person suffers a loss by reason of the mixing together of-

(a) substances conveyed by the pipeline or processed by the facility on behalf of the applicant in exercise of a right secured by the notice; and



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(b) substances conveyed by the pipeline or processed by the facility by or on behalf of any other person."

80: Clause 80 page 63, line 48, leave out from "applicant" to end of line 3 on page 64 and insert-

"(12A) If a notice under subsection (10) contains provision of a sort mentioned in subsection (9) or (10A) the Secretary of State must give a copy of the notice to every person who has a right to have anything conveyed by the pipeline or processed by the facility.

(12B) Before giving a copy of a notice under subsection (12A) the Secretary of State must-

(a) remove from the copy any provision included in the notice by virtue of subsection (10)(d) or (11)(a); and

(b) after giving the owner and the applicant an opportunity to be heard, remove from the copy any other provision included in the notice which the Secretary of State considers may prejudice the commercial interests of the owner or the applicant if not removed."

81: Clause 82 page 65, line 42, leave out from beginning to "person" in line 44 and insert "If a notice under subsection (2) contains provision by virtue of subsection (4) the Secretary of State must give a copy of the notice to every"

82: Clause 82 page 65, line 45, at end insert-

"(5A) Before giving a copy of a notice under subsection (5) the Secretary of State must-

(a) remove from the copy any provision included in the notice by virtue of subsection (3)(b); and

(b) after giving the owner and the applicant an opportunity to be heard, remove from the copy any other provision included in the notice which the Secretary of State considers may prejudice the commercial interests of the owner or the applicant if not removed."

83: Clause 88 page 70, line 6, leave out from second "facility" to end of line 7 and insert "which-

(a) carries out gas processing operations in relation to piped gas;

(b) is operated otherwise than by a gas transporter; and

(c) is not an LNG import or export facility (within the meaning of section 12 of the Gas Act 1995);"

84: Clause 88 page 70, line 12, at end insert-

""piped gas" means gas which-

(a) originated from a petroleum production project; and

(b) has been conveyed only by means of pipes;"

85: Clause 88 page 70, line 18, at end insert "and is not a carbon dioxide pipeline"

86: Clause 88 page 70, line 32, at end insert-

""carbon dioxide pipeline" means-

(a) a pipeline used to convey carbon dioxide to a carbon dioxide storage site; or

(b) a pipeline which is not being used for any purpose but which is intended to be used to convey carbon dioxide to such a site;

"carbon dioxide storage site" means a facility-

(a) for the storage of carbon dioxide (with a view to its permanent disposal, or as an interim measure prior to its permanent disposal); and



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×(b) in respect of the use of which a person is required to have a licence under section 18 of the Energy Act 2008;"

87: After Clause 89, insert the following new Clause-

"Acquisition of rights to use gas processing facilities for downstream purposes

(1) Section 12 of the Gas Act 1995 (acquisition of rights to use gas processing facilities) is amended as follows.

(2) In the heading at the end insert "for downstream purposes".

(3) For "the Secretary of State" (in each place those words occur) substitute "the Authority".

(4) In subsection (1)-

(a) in the words before paragraph (a), after "gas processing facility" insert "which processes gas for a downstream purpose";

(b) in that paragraph for "on that person's behalf" substitute "for such a purpose".

(5) After subsection (1) insert-

"1ZA) At least two months before publishing those conditions or any changes to them under subsection (1), the owner of the facility must-

(a) publish a draft of the proposed conditions or changes; and

(b) inform any person who has a right to have gas processed by the facility that the draft has been published.

(1ZA) The owner of the facility must take into account any representations received about the proposed conditions or changes before publishing them, or a modified version of them, as final conditions or changes under subsection (1)."

(6) In subsection (1B) for "on his behalf" substitute "for a downstream purpose".

(7) In subsection (1D)-

(a) omit the "and" immediately preceding paragraph (c);

(b) after paragraph (c) insert "; and

(d) that the gas is to be processed for a downstream purpose".

(8) In subsection (1G) for "he" substitute "it".

(9) In subsection (2)(b) for "his" substitute "its".

(10) For subsections (5) and (5A) substitute-

"(5) Sections 28 to 30F of the 1986 Act (enforcement of relevant requirements etc) apply in relation to the owner of a gas processing facility as if-

(a) references to "a licence holder" were references to the owner of the facility; and

(b) references to a "relevant requirement" were references to a requirement imposed on the owner under this section.

(5A) For the purposes of this section, gas is processed for "a downstream purpose" if it is processed with a view to its being put into a gas storage facility, an LNG import or export facility, a gas interconnector or a distribution system pipeline."

(11) In subsection (6)-

(a) in the definition of "gas processing facility" for the words from "carries" to the end substitute "-



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(a) carries out gas processing operations;

(b) is operated otherwise than by a gas transporter; and

is not an LNG import or export facility;";

insert, in the appropriate place, the following definitions-

""authorised transporter" has the same meaning as in Part 1 of the 1986 Act;";

""the Authority" means the Gas and Electricity Markets Authority;";

""distribution system operator" has the meaning given by Article 2(6) of Directive 2009/73/EC of the European Parliament and of the Council of 13 July 2009 concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC;";

""distribution system pipeline" means a pipeline operated by an authorised transporter who is a distribution system operator;";

""gas interconnector" has the same meaning as in Part 1 of the 1986 Act;";

""gas storage facility" means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for either or both of the following-

(a) the storage in porous strata, or in cavities in strata, of gas which has been, or will be, conveyed in a pipeline system operated by the holder of a licence under section 7 or 7ZA of the 1986 Act;

(b) the storage of liquid gas which, if regasified, would be suitable for conveyance through pipes to premises in accordance with a licence under section 7 of the 1986 Act;

but the reference in paragraph (b) to the storage of liquid gas does not include such temporary storage as is mentioned in the definition of "LNG import or export facility";";

""LNG import or export facility" means a facility in Great Britain (including the territorial sea adjacent to Great Britain and the sea in any area designated under section 1(7) of the Continental Shelf Act 1964) for-

(a) the importation into Great Britain and regasification of liquid gas prior to its conveyance to a pipeline system operated by the holder of a licence under section 7 or section 7ZA of the 1986 Act, or the liquefaction of gas for the purpose of its export from Great Britain; and

(b) any activity, including temporary storage of gas or liquid gas, which is necessary for that importation, regasification or liquefaction;";

""storage", in relation to liquid gas in a gas storage facility, includes any liquefaction of gas or regasification of liquid gas ancillary to the storage of liquid gas, and "stored", in relation to liquid gas in a gas storage facility, shall be construed accordingly;".

(12) For subsection (7) substitute-

"(7) Section 89 of the Energy Act 2011 (meaning of "associate") applies for the purposes of subsection (3) of this section as it applies for the purposes of section 80(6)(d) and (8)(a) of that Act.""



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88: Clause 95 page 76, line 13, leave out subsection (4)

89: Clause 95 page 76, line 32, after "conditions of" insert "generation, distribution and supply"

90: Clause 95 page 76, line 35, after "conditions of" insert "transporter, supply and shipping"

91: Clause 95 page 76, line 37, at end insert-

"(11A) In section 146(5) of the Energy Act 2004 (standard conditions of interconnector licences under Part 1 of the Electricity Act 1989), for "or under this Act" substitute ", under this Act or under section 95 of the Energy Act 2011".

(11B) In section 150(5) of the Energy Act 2004 (standard conditions of interconnector licences under Part 1 of the Gas Act 1986), for "or under this Act" substitute ", under this Act or under section 95 of the Energy Act 2011"."

92: After Clause 101, insert the following new Clause-

"Regulation of security of nuclear construction sites

(1) Section 77 of the Anti-terrorism, Crime and Security Act 2001 (regulation of security of civil nuclear industry) is amended as follows.

(2) In subsection (1) (list of matters that may be regulated) after paragraph (c) insert-

(cza) nuclear construction sites and equipment used or stored on such sites;".

(3) In subsection (7) after the definition of "equipment" insert-

""nuclear construction site" means a site-

(a) on which works are being carried out with a view to its becoming a nuclear site used wholly or mainly for purposes other than defence purposes; and

(b) which is situated within 5 kilometres of an existing nuclear site.""

93: After Clause 101, insert the following new Clause-

"Agreement about modifying decommissioning programme

(1) Section 46 of the Energy Act 2008 (approval of a decommissioning programme) is amended as follows.

(2) After subsection (3) insert-

"(3A) When approving a programme the Secretary of State may agree to exercise, or not to exercise, the section 48 power-

(a) in a particular manner;

(b) within a particular period.

"(3B) An agreement under subsection (3A) may subsequently be amended by the Secretary of State and the other party to the agreement.

(3C) The Secretary of State may not make such an agreement or amend such an agreement unless satisfied that the agreement (or the agreement as amended) includes adequate provision for the modification of the programme in the event that the provision made by it for the technical matters (including the financing of the designated technical matters) ceases to be prudent.

(3D) Provision in such an agreement (including the provision mentioned in subsection (3C)) may include provision-

(a) for a determination by a third party in relation to a relevant matter specified in the agreement, and

(b) for the Secretary of State to be bound by such a determination.



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(3E) A "relevant matter" is a matter relating to the provision made by the programme for the technical matters.

(3F) Subsections (3A) to (3D) apply notwithstanding that the agreement or amendment fetters the Secretary of State's discretion.

(3G) In subsection (3A) "section 48 power" means the power of the Secretary of State under section 48 to propose a modification of the programme or a modification of the conditions to which the approval of the programme is subject."

(3) In subsection (4) for "(3)" substitute "(3B)"."

94: After Clause 101, insert the following new Clause-

"Abandonment: infrastructure converted for CCS demonstration sites

(1) The Energy Act 2008 is amended as follows.

(2) After section 30 insert-

"30A Installations converted for CCS demonstration projects

(1) The Secretary of State may by order designate an installation as an eligible CCS installation.

(2) But an order may not be made under subsection (1) in relation to-

(a) a carbon storage installation established or maintained under a licence granted by the Scottish Ministers, or

(b) any other installation established or maintained wholly or partly in Scotland.

(3) An order under subsection (1) ceases to have effect if the installation in relation to which it is made becomes an installation within subsection (2)(a).

(4) An eligible CCS installation qualifies for change of use relief if-

(a) the installation is or has been used as part of a CCS demonstration project, and

(b) the trigger event has occurred in relation to the installation at a time when the installation was so used (whether before or after it was designated under this section).

(5) The trigger event occurs-

(a) in relation to an installation used for the injection of captured carbon dioxide into a carbon storage facility as part of a CCS demonstration project, when captured carbon dioxide is first present at the installation, and

(b) in relation to an installation used as part of a CCS demonstration project for any other purpose, when captured carbon dioxide is first present at another installation used as mentioned in paragraph (a) as part of the same project.

(6) Where an eligible CCS installation qualifies for change of use relief-

(a) an abandonment programme notice must not be served on a person who is within section 30(1) of the 1998 Act only because one or more of subsections (7) to (9) applies in relation to the person (but this does not affect the validity of a notice served on any such person before the installation qualified for change of use relief), and



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(b) a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(a) of the 1998 Act only because one or more of subsections (7) to (10) applies in relation to the person.

(7) This subsection applies in relation to a person if-

(a) the person is within paragraph (b) of section 30(1) of the 1998 Act in relation to the installation only by virtue of the fact that the person had a right mentioned in section 30(5)(a) of that Act when an activity mentioned in section 30(6) of that Act was last carried on from, by means of or on the installation, and

(b) any such activity was last so carried on before the trigger event occurred in relation to the installation.

(8) This subsection applies in relation to a person if-

(a) the person is within paragraph (ba) of section 30(1) of the 1998 Act in relation to the installation, and

(b) the transfer mentioned in sub-paragraph (i) of that paragraph took place before the trigger event occurred in relation to the installation.

(9) This subsection applies in relation to a person if the person is within paragraph (e) of section 30(1) of the 1998 Act only by virtue of being associated with a body corporate which is within subsection (7) or (8).

(10) This subsection applies in relation to a person if the person has been within any of paragraphs (a), (b), (c), (d) or (e) of section 30(1) of the 1998 Act in relation to the installation, but only at a time-

(a) when the installation was an offshore installation (within the meaning given by section 44 of the 1998 Act), and

(b) before the trigger event occurred in relation to the installation.

(11) The power conferred by subsection (1) does not include a power to revoke an order made under that subsection.

(12) In this section-

"abandonment liability", in relation to an installation, means a duty to secure that an abandonment programme for the installation is carried out;

"abandonment programme", in relation to an installation, means a programme in respect of the installation approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act;

"abandonment programme notice" means a notice served under section 29(1) of the 1998 Act;

"captured carbon dioxide" means carbon dioxide that has been produced by, or in connection with, commercial electricity generation and captured with a view to its disposal by way of permanent storage;

"carbon dioxide", "CCS demonstration project" and "commercial electricity generation" have the same meanings as in Part 1 of the Energy Act 2010 (see section 7 of that Act);

"carbon storage facility" has the same meaning as in section 20;

"Scotland" has the same meaning as in the Scotland Act 1998 (see section 126(1) of that Act).



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(13) Section 30(8) to (9) of the 1998 Act (when one body corporate is associated with another) apply for the purposes of this section.

30B Submarine pipelines converted for CCS demonstration projects

(1) The Secretary of State may by order designate a submarine pipeline as an eligible CCS pipeline.

(2) An eligible CCS pipeline qualifies for change of use relief if-

(a) the pipeline is or has been used as part of a CCS demonstration project for a purpose other than the transport of petroleum, and

(b) the trigger event has occurred in relation to the pipeline at a time when the pipeline was so used (whether before or after it was designated under this section).

(3) The trigger event-

(a) in relation to a pipeline used to transport captured carbon dioxide as part of a CCS demonstration project, occurs when captured carbon dioxide is first present in the pipeline, and

(b) in relation to a pipeline used as part of a CCS demonstration project for any other purpose, occurs-

(i) when captured carbon dioxide is first present in another pipeline used as part of the same project, or

(ii) if earlier, when captured carbon dioxide is first present at an installation used as part of the same project for the injection of captured carbon dioxide into a carbon storage facility.

(4) Where an eligible CCS pipeline qualifies for change of use relief, a proposal must not be made under section 34(1)(b) of the 1998 Act if the effect of the proposal (if implemented) would be to impose an abandonment liability on a person who is within section 34(2)(b) of the 1998 Act only because subsection (5) applies in relation to the person.

(5) This subsection applies in relation to a person if the person has been within any of paragraphs (a) to (c) of section 30(2) of the 1998 Act in relation to the pipeline, but only at a time-

(a) when the pipeline was used solely for activities other than activities connected with any mentioned in section 17(2)(a), (b) or (c), and

(b) before the trigger event occurred in relation to the pipeline.

(6) The power conferred by subsection (1) does not include a power to revoke an order made under that subsection.

(7) In this section-

"abandonment liability", in relation to a submarine pipeline, is a duty to secure that an abandonment programme for the pipeline is carried out;

"abandonment programme", in relation to a submarine pipeline, means a programme in respect of the pipeline approved, or having effect as if approved, by the Secretary of State under section 32 of the 1998 Act;

"captured carbon dioxide" and "CCS demonstration project" have the same meanings as in section 30A;

"carbon storage facility" has the same meaning as in section 20;



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"petroleum" has the same meaning as in Part 1 of the 1998 Act (see section 1 of that Act) and includes petroleum that has undergone any processing;

"submarine pipeline" has the same meaning as in Part 4 of the Petroleum Act 1998 (see section 45 of that Act)."

(3) In the cross heading before section 30, for "installations" substitute "infrastructure".

(4) In section 30 (abandonment of installations)-

(a) in subsection (1) (application of Part 4 of Petroleum Act 1998 in relation to abandonment of carbon storage installations)-

(i) for ""the 1998 Act"" substitute "referred to in this section and sections 30A and 30B as "the 1998 Act"", and

(ii) at the end insert "and section 30A",

(b) after subsection (4) (power to make regulations modifying Part 4 of the 1998 Act in its application to carbon storage installations) insert-

"(4A) The power in subsection (4) is subject to section 30A.", and

(c) in subsection (5) (meaning of "carbon storage installation") after "this section" insert "and section 30A".

(5) In section 105(2) (parliamentary control of subordinate legislation), after paragraph (a) insert-

"(aa) an order which contains provision made under section 30A or 30B only (powers to designate installations and submarine pipelines as eligible CCS installations and eligible CCS pipelines);"."

95: After Clause 101, insert the following new Clause-

"Carbon dioxide pipelines: powers of compulsory acquisition

(1) The Pipe-lines Act 1962 is amended as follows.

(2) In section 12 (orders for compulsory acquisition of rights over land for pipe-line construction)-

(a) in subsection (1), for "the next following section" substitute "section 13";

(b) in subsections (2), (4), (5)(a) and (b), (5A) (in both places), (6) and (7), after "a compulsory rights order" insert "under this section";

(c) in subsection (3), after "compulsory rights orders" insert "under this section".

(3) After section 12 insert-

"Pipe-lines for Conveying Carbon Dioxide: Compulsory Acquisition of Rights over Land

12A Orders for compulsory acquisition of rights over land: pipe-lines for conveying carbon dioxide

(1) This section applies in relation to a pipe-line (or a length of a pipe-line) that is intended to be converted into a pipe-line (or length) used for conveying carbon dioxide.

(2) The owner of the pipe-line may apply to the Secretary of State for an order under subsection (3) in relation to land in which the pipe-line (or a length of the pipe-line) is situated.

(3) An order under this subsection is an order authorising the owner of the pipe-line to do one or more of the following-



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(a) to use the pipe-line (or length of the pipe-line) in the land described in the order to convey carbon dioxide;

(b) to execute pipe-line works in the land which are necessary in consequence of the presence of the pipe-line (or length) in the land;

(c) to execute pipe-line works in the land to enable the pipe-line (or length) to be used to convey carbon dioxide or in consequence of its use to convey carbon dioxide;

(d) to exercise, in relation to the pipe-line (or length), such of the rights mentioned in Schedule 4 as may be specified in the order.

(4) An order under this subsection is referred to in this Act as a "compulsory rights order".

A compulsory rights order under this section may be made subject to conditions (see section 13).

(5) On receiving an application under subsection (2), the Secretary of State may grant or refuse the application.

(6) Part 1 of Schedule 2, as modified by Part 2 of that Schedule, has effect in relation to applications for compulsory rights orders under this section.

(7) A compulsory rights order under this section enures for the benefit of the owner for the time being of the pipe-line.

(8) The Secretary of State may by order revoke a compulsory rights order under this section, in whole or in part, if-

(a) the pipe-line (or length of the pipe-line) is diverted from the land described in the order,

(b) the pipe-line (or length) is abandoned,

(c) the pipe-line (or length) ceases to be used to convey carbon dioxide, or

(d) the owner of the pipe-line makes an application for the revocation of the order.

(9) A compulsory rights order under this section does not affect any right over the land described in the order that would not have been affected had the land been compulsorily purchased by virtue of a compulsory purchase order.

(10) A compulsory rights order under this section does not authorise the disregard of any enactment or of any instrument having effect by virtue of any enactment.

(11) A compulsory rights order under this section is not to be taken to confer a right of support for the pipeline (or length of pipeline).

(12) A compulsory rights order under this section is to be subject to special parliamentary procedure.

(13) For the purposes of this section, "carbon dioxide" includes any substance consisting primarily of carbon dioxide.

Compulsory Rights Orders under Sections 12 and 12A: Supplementary Provisions".

(4) In section 66 (general interpretation provisions), in subsection (1), in the definition of "compulsory rights order", for "subsection (1) of section twelve" substitute "sections 12(1) and 12A(3)".

(5) In Schedule 2-

(a) in the shoulder reference, after "12," insert "12A,";



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(b) in paragraph 10(1), for "subsection (3) of section twelve of this Act" substitute "sections 12(3) and 12A(4)".

(6) In Schedule 4, in the shoulder reference, for "Section 12" substitute "Sections 12 and 12A"."

Amendments 74 to 95 agreed.

Amendment 96

Moved by Lord Marland

96: After Clause 101, insert the following new Clause-

"Contribution to carbon budgeting under the Climate Change Act 2008

(1) The Secretary of State must prepare and publish an annual report on the extent to which-

(a) green deal plans under Chapter 1 of Part 1, and

(b) the energy company obligations provisions,

have contributed to the Secretary of State fulfilling the duty under section 4(1)(b) of the Climate Change Act 2008 (carbon budgeting).

(2) The "energy company obligations provisions" means-

(a) sections 33BC and 33BD of the Gas Act 1986 and sections 41A and 41B of the Electricity Act 1989 (promotion of reductions in carbon emissions and home-heating costs),

(b) sections 103 and 103A of the Utilities Act 2000 (overall carbon emissions and home-heating cost reduction targets), and

(c) section 103B of the Utilities Act 2000 (Secretary of State's power to require information about carbon emissions and home-heating cost reduction targets).

(3) The first report under this section must be published before the end of 2014.

(4) The Secretary of State must lay before Parliament a copy of each report under this section."

Amendment 96A (to Amendment 96) not moved.

Amendment 96 agreed.

Amendment 97 to 135

Moved by Lord Marland

97: After Clause 101, insert the following new Clause-

"Energy efficiency aim

(1) The Secretary of State must take such action as he considers appropriate to improve the energy efficiency of residential accommodation in England so as to contribute to the Secretary of State fulfilling the duty under section 1(1) of the Climate Change Act 2008 (reduction of net UK carbon account by 2050).

(2) In subsection (1) "residential accommodation" has the meaning given by section 1 of the Home Energy Conservation Act 1995.

(3) Section 2 of the Sustainable Energy Act 2003 (energy efficiency of residential accommodation) ceases to have effect.

(4) In section 9 of the Sustainable Energy Act 2003 (citation, extent and commencement), in subsections (3) and (5) leave out "2,"."



4 Oct 2011 : Column 1118

98: After Clause 101, insert the following new Clause-

"Adjustment of electricity transmission charges

In section 185(11) of the Energy Act 2004 (areas suitable for renewable electricity generation: end date for schemes adjusting transmission charges) for "2024" substitute "2034"."

99: After Clause 101, insert the following new Clause-

"Electricity from renewable sources: National Park authorities and Broads Authority

(1) This section applies to a body which is a National Park authority or the Broads Authority.

(2) The body may-

(a) produce electricity from a renewable source;

(b) establish and operate generating stations and other installations for the purpose of producing electricity from a renewable source;

(c) make grants or loans to enable other persons to do anything which the body may do by virtue of paragraph (a) or (b);

(d) use, sell or otherwise dispose of electricity produced by virtue of the powers conferred by this section.

(3) A "renewable source" is-

(a) in England and Wales, a source listed in regulation 2 of the Sale of Electricity by Local Authorities (England and Wales) Regulations 2010 (S.I. 2010/1910);

(b) in Scotland, a source listed in regulation 2 of the Sale of Electricity by Local Authorities (Scotland) Regulations 2010 (S.I. 2010/1908).

(4) Any regulations which-

(a) are made in exercise of the power conferred by section 11(3) of the Local Government (Miscellaneous Provisions) Act 1976 (power to prescribe the circumstances in which local authorities may sell electricity), and

(b) amend, revoke or re-enact regulation 2 of the Sale of Electricity by Local Authorities (England and Wales) Regulations 2010,

may amend subsection (3)(a) for the purpose of providing what is a "renewable source" in England and Wales.

(5) Any regulations which-

(a) are made in exercise of the power conferred by section 170A(3) of the Local Government (Scotland) Act 1973 (power to prescribe the circumstances in which local authorities may sell electricity), and

(b) amend, revoke or re-enact regulation 2 of the Sale of Electricity by Local Authorities (Scotland) Regulations 2010,

may amend subsection (3)(b) for the purpose of providing what is a "renewable source" in Scotland.

(6) Nothing in this section-

(a) exempts a body from the requirements of Part 1 of the Electricity Act 1989, or

(b) affects what a body has power to do apart from this section."

100: After Clause 101, insert the following new Clause-

"Renewable heat incentives in Northern Ireland

(1) The Department of Enterprise, Trade and Investment may make regulations-



4 Oct 2011 : Column 1119

(a) establishing a scheme to facilitate and encourage renewable generation of heat in Northern Ireland, and

(b) about the administration and financing of the scheme.

(2) Regulations under this section may, in particular-

(a) make provision for the Department or NIAUR to make payments, or to require designated fossil fuel suppliers to make payments, in specified circumstances, to-

(i) the owner of plant used or intended to be used for the renewable generation of heat, whether or not the owner is also operating or intending to operate the plant;

(ii) a producer of biogas or biomethane;

(iii) a producer of biofuel for generating heat;

(b) make provision about the calculation of such payments;

(c) make provision about the circumstances in which such payments may be recovered;

(d) require designated fossil fuel suppliers to provide specified information to the Department or NIAUR;

(e) make provision for payments to fossil fuel suppliers in specified circumstances;

(f) make provision about the enforcement of obligations imposed by or by virtue of the regulations (which may include a power for the Department or NIAUR to impose financial penalties);

(g) confer functions on the Department or NIAUR, or both.

(3) In this section-

"biofuel" means liquid or gaseous fuel which is produced wholly from biomass;

"biogas" means gas produced by the anaerobic or thermal conversion of biomass;

"biomass" means material, other than fossil fuel or peat, which is, or is derived directly or indirectly from, plant matter, animal matter, fungi or algae;

"biomethane" means biogas which is suitable for conveyance through pipes to premises in accordance with a licence under Article 8(1)(a) of the Gas (Northern Ireland) Order 1996 (S.I. 1996/275 (N.I. 2)) (licences to convey gas);

"the Department" means the Department of Enterprise, Trade and Investment;

"designated fossil fuel suppliers" means-

(a) if the regulations so provide, a specified class of fossil fuel suppliers, and

(b) in any other case, all fossil fuel suppliers;

"fossil fuel" means-

(a) coal;

(b) lignite;

(c) natural gas (within the meaning of the Energy Act 1976);

(d) crude liquid petroleum;

(e) petroleum products (within the meaning of that Act);

(f) any substance produced directly or indirectly from a substance mentioned in paragraphs (a) to (e);



4 Oct 2011 : Column 1120

"fossil fuel supplier" means a person who supplies fossil fuel to consumers for the purpose of generating heat;

"functions" includes powers and duties;

"modify" includes amend, add to or repeal;

"NIAUR" means the Northern Ireland Authority for Utility Regulation;

"owner", in relation to any plant which the subject of a hire purchase agreement, a conditional sale agreement or any agreement of a similar nature, means the person in possession of the plant under that agreement;

"plant" includes any equipment, apparatus or appliance;

"renewable generation of heat" means the generation of heat by means of a source of energy or technology mentioned in subsection (4).

(4) The sources of energy and technologies are-

(a) biomass;

(b) biofuels;

(c) fuel cells;

(d) water (including waves and tides);

(e) solar power;

(f) geothermal sources;

(g) heat from air, water or the ground;

(h) combined heat and power systems (but only if the system's source of energy is a renewable source within the meaning given by Article 55F of the Energy (Northern Ireland) Order 2003 (S.I. 2003/419 (N.I. 6)));

(i) biogas.

(5) The Department may by regulations-

(a) modify the list of sources of energy and technologies in subsection (4);

(b) modify the definition of "biofuel", "biogas" or "biomass" in subsection (3).

(6) The Department may by regulations make provision, for the purposes of subsection (2)(a)(iii) and the definition of "fossil fuel supplier", specifying that particular activities do or do not constitute generating heat.

(7) Any power to make regulations under this section is to be exercisable by statutory rule for the purposes of the Statutory Rules (Northern Ireland) Order 1979 (S.I. 1979/1573 (N.I. 12)).

(8) Regulations under this section may not be made unless a draft of the regulations has been laid before, and approved by a resolution of, the Northern Ireland Assembly.

(9) Regulations under this section may-

(a) provide for a person to exercise a discretion in dealing with any matter;

(b) include incidental, supplementary and consequential provision;

(c) make transitory or transitional provisions or savings;

(d) make provision generally, only in relation to specified cases or subject to exceptions (including provision for a case to be excepted only so long as conditions specified in the regulations are satisfied);

(e) make different provision for different cases or circumstances or for different purposes."



4 Oct 2011 : Column 1121

101: After Clause 101, insert the following new Clause-

"Power for Gas and Electricity Markets Authority to act on behalf on Northern Ireland authority in connection with scheme under section [Renewable heat incentives in Northern Ireland]

(1) GEMA and a Northern Ireland authority may enter into arrangements for GEMA to act on behalf of the Northern Ireland authority for, or in connection with, the carrying out of any functions that may be conferred on the Northern Ireland authority under, or for the purposes of, any scheme that may be established, under section [Renewable heat incentives in Northern Ireland].

(2) In this section-

"GEMA" means the Gas and Electricity Markets Authority;

"Northern Ireland authority" means-

(a) the Department of Enterprise, Trade and Investment, or

(b) the Northern Ireland Authority for Utility Regulation."

102: Clause 102 page 80, line 2, leave out Clause 102

103: Before Clause 105, insert the following new Clause-

"Amendment of section 137 of the Energy Act 2004

In section 137(3) of the Energy Act 2004 (standard conditions of transmission licences under Part 1 of the Electricity Act 1989)-

(a) in paragraph (a) omit "or", and

(b) after paragraph (b) insert-

"(c) under the Energy Act 2008,

(d) under the Energy Act 2010, or

(e) under the Energy Act 2011,"."

104: Clause 105 page 81, line 20, leave out subsections (1) and (2) and insert-

"(1) The Home Energy Conservation Act 1995-

(a) ceases to have effect in Scotland;

(b) ceases to apply in relation to energy conservation authorities in Wales.

(2) In section 1 of that Act (interpretation) in the definition of "energy conservation measures" after "promotion," insert "any available financial assistance,".

(3) In section 1 of the Sustainable Energy Act 2003 (annual report on the progress towards sustainable energy aims)-

(a) subsection (1)(e) and the "and" immediately preceding it cease to have effect, and

(b) subsection (1AA) ceases to have effect.

(4) In section 4 of that Act (energy efficiency of residential accommodation: energy conservation authorities) subsection (13)(b) ceases to have effect."

105: Clause 105 page 81, line 27, leave out subsection (4)

106: Before Clause 106, insert the following new Clause-

"Consultation

A requirement for the Secretary of State to consult which arises under or by virtue of this Act may be satisfied by consultation before, as well as consultation after, the passing of this Act."



4 Oct 2011 : Column 1122

107: Clause 106 page 82, line 2, after "Wales)," insert-

"(ea) section [Energy efficiency aim],"

108: Clause 106 page 82, line 11, at end insert-

"(ca) section 33(5A) (green deal appeals: revocation or amendment of delegated legislation by Scottish Ministers),"

109: Clause 106 page 82, line 15, at end insert-

"() Section [Renewable heat incentives in Northern Ireland] (renewable heat incentives in Northern Ireland) extends to Northern Ireland only.

() Section [Power for Gas and Electricity Markets Authority to act on behalf of Northern Ireland authority in connection with scheme under section [Renewable heat incentives in Northern Ireland]] (power for Gas and Electricity Markets Authority to act on behalf of Northern Ireland authority in connection with scheme under section [Renewable heat incentives in Northern Ireland]) extends to England and Wales, Scotland and Northern Ireland."

110: Clause 106 page 82, line 18, leave out "28" and insert "[Early repayment of green deal finance]"

111: Clause 107 page 82, line 25, leave out "made by statutory instrument"

112: Clause 107 page 82, line 31, at end insert-

"(ca) section 33(5A) (green deal appeals: revocation or amendment of delegated legislation by Scottish Ministers);"

113: Clause 107 page 82, line 46, at end insert-

"(ha) section [Regulation of security of nuclear construction sites] (regulation of security of nuclear construction sites);"

114: Clause 107 page 82, line 46, at end insert-

"() section [Agreement about modifying decommissioning programme] (agreement about modifying decommissioning programme)"

115: Clause 107 page 83, line 2, at end insert-

"() section [Abandonment: infrastructure converted for CCS demonstration projects] (abandonment: infrastructure converted for CCS demonstration projects)."

116: Clause 107 page 83, line 2, at end insert-

"() section [Adjustment of electricity transmission charges] (adjustment of electricity transmission charges);"

117: Clause 107 page 83, line 2, at end insert ';

"() section [Electricity from renewable sources: National Park authorities and Broads Authority] (electricity from renewable sources: National Park authorities and Broads Authority)"

118: Clause 107 page 83, line 2, at end insert-

"() sections [Renewable heat incentives in Northern Ireland] and [Power for Gas and Electricity Markets Authority to act on behalf of Northern Ireland authority in connection with scheme under section [Renewable heat incentives in Northern Ireland]] (renewable heat incentives in Northern Ireland)."

119: Clause 107 page 83, line 4, at end insert-

"(a) section [Preparatory expenditure: framework regulations] (preparatory expenditure: framework regulations);"



4 Oct 2011 : Column 1123

120: Clause 107 page 83, line 8, leave out first "section" and insert "sections [Consultation] and"

121: Clause 107 page 83, line 11, leave out "to 4, 6" and insert ", 3, 4"

122: Clause 108 page 83, line 23, leave out subsection (2)

123: Schedule 1 page 84, line 7, leave out paragraph 2

124: Schedule 1 page 84, line 19, leave out paragraph 6

125: Schedule 2 page 87, line 21, leave out paragraphs 8 to 10

126: Schedule 2 page 87, leave out lines 33 to 35 and insert-

""(A3) Pipelines that are relevant upstream petroleum pipelines for the purposes of section 80(1) of the Energy Act 2011 are excepted from the operation of this section.""

127: Schedule 3 page 88, line 20, leave out Schedule 3

128: In the Title line 7, after "infrastructure" insert "and downstream gas processing facilities"

129: In the Title line 10, after "electricity;" insert "about the security of nuclear construction sites;"



4 Oct 2011 : Column 1124

130: In the Title line 10, after "sites" insert "and offshore infrastructure; for the use of pipelines for carbon capture and storage"

131: In the Title line 10, after "sites;" insert "for an annual report on contribution to carbon emissions reduction targets; for action relating to the energy efficiency of residential accommodation in England;"

132: In the Title line 10, after "sites;" insert "for the generation of electricity from renewable sources;"

133: In the Title line 10, after "sites;" insert "about renewable heat incentives in Northern Ireland;"

134: In the Title line 11, after "Authority;" insert "for an amendment of section 137 of the Energy Act 2004;"

135: In the Title line 11, after third "the" insert "amendment and"

Amendments 97 to 135 agreed.

House adjourned at 8.13 pm.


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