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STATUTORY INSTRUMENTS


2005 No. 2903

ENVIRONMENTAL PROTECTION

The Greenhouse Gas Emissions Trading Scheme (Amendment) and National Emissions Inventory Regulations 2005

  Made 16th October 2005 
  Laid before Parliament 19th October 2005 
  Coming into force 13th November 2005 

The Secretary of State, being a Minister designated for the purpose of section 2(2) of the European Communities Act 1972[1] in relation to greenhouse gas emission allowance trading[2] in exercise of the powers conferred upon her by section 2(2) of that Act[3] makes the following Regulations:



PART 1

GENERAL

Title and commencement
     1. These Regulations may be cited as the Greenhouse Gas Emissions Trading Scheme (Amendment) and National Emissions Inventory Regulations 2005 and shall come into force on 13th November 2005.

Interpretation
    
2. —(1) In these Regulations—

and "approve" shall be construed accordingly;

    (2) Expressions used in these Regulations have the same meaning as in the Emissions Trading Directive unless otherwise stated.

    (3) For the purposes of these Regulations—

Notices
     3. Regulation 4 of the 2005 Regulations shall apply to a notice or document served under these Regulations.



PART 2

AMENDMENT OF 2005 REGULATIONS

Amendment of the 2005 Regulations
    
4. The 2005 Regulations are amended as follows—



PART 3

PROJECT APPROVAL AND AUTHORISATION TO PARTICIPATE

Approval of and authorisation of participation in project activities
    
5. —(1) A person wishing to have a proposed project activity approved shall, in accordance with this regulation, apply to the Secretary of State for approval of the proposed project activity.

    (2) A person wishing to be authorised to participate in an Article 6 project activity shall, in accordance with this regulation, apply to the Secretary of State for such authorisation.

    (3) An application under this regulation shall be made in the English language and shall contain the following information—

    (4) Any application made under this regulation shall be made in such form as may be required by the Secretary of State.

    (5) The Secretary of State may require any information included in an application under this regulation to be independently verified and a requirement under this paragraph may include a requirement for the verification to be provided by a person of a description specified by the Secretary of State.

    (6) An application under paragraph (2) may be combined with an application under paragraph (1).

    (7) An application made under this regulation may be withdrawn at any time before it is determined.

Request for further information
    
6. —(1) For the purposes of determining an application made under regulation 5, the Secretary of State may serve a notice on the applicant requesting further information as she considers necessary.

    (2) The notice shall specify the information required and the time period for furnishing such further information.

    (3) A notice under paragraph (1) may include a requirement for information furnished in connection with an application under regulation 5 to be independently verified and a requirement under this paragraph may include a requirement for the verification to be provided by a person of a description specified by the Secretary of State.

    (4) If an applicant fails to comply with a request under paragraph (1), the Secretary of State may serve a notice on the applicant stating that the application is deemed to have been withdrawn.

Determination of application
    
7. —(1) Where an application is duly made under regulation 5 the Secretary of State shall determine whether to approve the proposed project activity or to authorise the participation in accordance with this regulation.

    (2) When determining an application duly made under regulation 5, the Secretary of State may attach such conditions to an approval or authorisation as she thinks necessary.

    (3) The Secretary of State shall give notice of her determination to the person who made the application within a period of two months beginning on the date on which the application was received or within such longer period as may be agreed in writing with the applicant.

    (4) For the purposes of calculating the period of two months mentioned in paragraph (3), no account shall be taken of any period beginning on the date on which notice is served under regulation 6(1) and ending on the date on which the applicant furnishes the further information.

    (5) The Secretary of State may not approve a proposed project activity to be carried out in the United Kingdom.

    (6) The Secretary of State may only approve a proposed project activity if she is satisfied that—

    (7) The Secretary of State may only authorise the applicant's participation in a proposed project activity if she is satisfied that to do so would be consistent with article 11b(5) of the Emissions Trading Directive.

Agreement with devolved administrations on project approval
     8. The power of the Secretary of State to determine an application under regulation 7 is exercisable—

Appeals
    
9. —(1) A person may appeal to the Secretary of State against the refusal of an application made under regulation 5 or against any conditions attached to an approval or authorisation notified under regulation 7.

    (2) Where an appeal is made under this regulation, the Secretary of State may affirm, reverse or vary her decision.

    (3) Schedule 2 of the 2005 Regulations shall apply in relation to an appeal under this regulation as if—

    (4) The Secretary of State may—

    (5) Schedule 3 of the 2005 Regulations shall have effect with respect to appointments under paragraph (4)(a) as if references in paragraph 1 of that Schedule to "regulation 34(2)(a)" were references to paragraph (4)(a) of this regulation.



PART 4

NATIONAL INVENTORY

Information for the preparation of a national inventory
    
10. —(1) For the purposes of preparing a national inventory, the Secretary of State may require any person to furnish information by serving a notice on that person.

    (2) A notice under this regulation shall specify—

    (3) The information which a person may be required to furnish by a notice served under this regulation includes—

Powers of entry
    
11. —(1) The Secretary of State may authorise in writing any person (the "authorised person") who appears suitable to her to exercise, in accordance with the terms of that authorisation, any of the powers specified in paragraph (3).

    (2) The authorised person may only exercise the powers specified in paragraph (3) for the purpose of obtaining or verifying information for the preparation of a national inventory.

    (3) The powers exercisable under this regulation are—

    (4) No answer given by a person in pursuance of a requirement imposed under paragraph (3)(g) above shall be admissible in evidence in England and Wales or Northern Ireland against that person in any proceedings, or in Scotland against that person in criminal proceedings.

    (5) Nothing in paragraph (3) shall be taken to compel the production by any person of a document of which he would on grounds of legal professional privilege be entitled to withhold production on an order for disclosure or discovery in an action in the High Court or, in relation to Scotland, on an order for the production of documents in an action in the Court of Session.

Agreement with devolved administrations on national inventory
    
12. The power of the Secretary of State to serve a notice under regulation 10 and to authorise a person under regulation 11 is exercisable—



PART 5

OFFENCES

Offences
    
13. —(1) It is an offence for a person to—

    (2) A person guilty of an offence under this regulation shall be liable—

    (3) Where a body corporate is guilty of an offence under thee Regulations, and that offence is proved to have been committed with the consent or connivance of, or to have been attributable to any neglect on the part of—

he, as well as the body corporate, is guilty of the offence and is liable to be proceeded against and punished accordingly.

    (4) For the purposes of paragraph (3)(b) above, "director", in relation to a body corporate whose affairs are managed by its members means a member of the body corporate.

    (5) Where an offence which has been committed by a Scottish partnership is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of, a partner, he as well as the partnership is guilty of the offence and is liable to be proceeded against and punished accordingly.


Elliot Morley
Minister of State Department for Environment, Food and Rural Affairs

16th October 2005



EXPLANATORY NOTE

(This note is not part of the Regulations)


These Regulations transpose Directive 2004/101/EC of the European Parliament and of the Council amending Directive 2003/87/EC establishing a Scheme for greenhouse gas emission allowance trading within the Community, in respect of the Kyoto Protocol's project mechanisms. They also provide the Secretary of State with powers to assist her in carrying out her obligations under Decision 280/2004/EC of the Council and of the Parliament to prepare a national emissions inventory and makes a small number of other provisions relating to the collection of data.

Part 2 of the Regulations amends the Greenhouse Gas Emissions Trading Scheme Regulations 2005 (S.I. 2005/925) ("the ETS Regulations") to permit holders of accounts in the UK emissions trading registry to hold certain types of Certified Emissions Reductions (CERs) and Emissions Reduction Units (ERUs) in their registry accounts (regulation 26(17) of the ETS Regulations). It also allows people with obligations to surrender allowances under the EU Emissions Trading Scheme, subject to specified limitations, to use certain types of CERs and ERUs as well as allowances towards complying with those obligations (regulation 27A of the ETS Regulations). It also extends the power that the Secretary of State and other bodies have under the ETS Regulations to require people to supply information (regulation 35(4)-(5) of the ETS Regulations).

Part 3 of the Regulations establishes an application procedure by which a person may apply to the Secretary of State for approval of one of the project activities established under the Kyoto Protocol or for authorisation to participate in the project activity (regulation 5). It sets out certain conditions that the Secretary of State must ensure when considering whether or not to approve such a project or authorise participation (regulation 7). It also provides a procedure for the applicant to appeal against the determination of his application (regulation 9).

Part 4 of the Regulations provide a power for the Secretary of State and devolved administrations to require a person to supply information for the purposes of compiling a national emissions inventory (regulation 10). Regulation 11 sets out powers of entry and inspection which may be exercised by an authorised person for the purpose of preparing such an inventory.

Part 5 makes it an offence to comply with a number of obligations imposed under the Regulations (regulation 13(1)) and specifies the maximum penalties which may be imposed for such an offence (regulation 13(2)). It also provides that where an offence is committed by a body corporate or by a Scottish partnership, specified individuals may also be guilty of that offence if it were committed with that person's consent or connivance, or as a result of their neglect (regulation 13(3)-(5)).

A regulatory impact assessment and a transposition note has been prepared and placed in the library of each House of Parliament. Copies can be obtained from National Climate Change Policy Division, Department for Environment, Food and Rural Affairs, Ashdown House, 123 Victoria Street, London SW1E 6DE.


Notes:

[1] 1972 c. 68.back

[2] S.I. 2004/1984.back

[3] As regards Scotland, see also section 57(1) of the Scotland Act 1998 (c. 46), which provides that, despite the transfer to the Scottish Ministers by virtue of that Act of functions in relation to observing and implementing obligations under Community law, any function of a Minister of the Crown in relation to any matter shall continue to be exercisable by him as regards Scotland for the purposes specified in section 2(2) of the European Communities Act 1972.back

[4] S.I. 2005/925.back

[5] OJ No. L 275, 25.10.2003, p.32. The Directive is amended by Directive 2004/101/EC, OJ No.L 338, 13.11.2004, p.18.back

[6] OJ No. L 338, 13.11.2004, p.18.back

[7] This is available at http://unfccc.int/resource/docs/convkp/kpeng.html.back

[8] This is available at http://unfccc.int/resource/docs/convkp/conveng.pdf.back

[9] ISBN 1 85383 798 9.back



ISBN 0 11 073497 1


 © Crown copyright 2005

Prepared 31 October 2005


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URL: http://www.bailii.org/uk/legis/num_reg/2005/20052903.html