The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2015

Allocation and adjustment of allowances

13.—(1) Schedule 6 is amended as follows.

(2) After sub-paragraph (1)(b) of paragraph 1, insert—

“(ba) “partial cessation” means a reduction in activity levels at a sub-installation of an installation, as described in paragraph 8(2);”.

(3) Omit paragraph 1(3).

(4) After paragraph 1, insert—

“Application

1A.— (1) Subject to sub-paragraph (2), this Schedule does not apply—

(a) to an installation that, by virtue of Article 10a(3) of the Directive, is not eligible for an allocation;

(b) where—

(i) a significant capacity extension;

(ii) a significant capacity reduction; or

(iii) a partial cessation,

occurs while the installation is an excluded installation;

(c) where an installation permanently ceases the carrying out of regulated activities by virtue of meeting the conditions in paragraph 7(1)(a),(b) or (c) while the installation is an excluded installation; or

(d) where an installation permanently ceases the carrying out of regulated activities by virtue of meeting the condition in paragraph 7(1)(d), but only where the suspension of regulated activities occurs when the installation is an excluded installation.

(2) Paragraph 8(8) applies where—

(a) the allocation of allowances to an operator of an installation which used to be an excluded installation is reduced in accordance with paragraph 9 of Schedule 6A; and

(b) after the installation ceases to be an excluded installation, the activity of the sub-installation reaches more than the levels in paragraph 8(7)(a) or 8(7)(b) of this Schedule.”.

(5) In paragraph 2(2), for “Such”, substitute “Subject to paragraph 8(6) of Schedule 6A, such”.

(6) In paragraph 4(1)—

(a) for “paragraph 2(6) or 3(5)”, substitute “paragraph 2(7) or 3(6)”; and

(b) for “paragraph 2(5)(c) or 3(4)(c)”, substitute “2(6)(c) or 3(5)(c)”.

(7) After sub-paragraph (4) of paragraph 7, insert—

“(4A) For the purpose of sub-paragraph (4), where an installation permanently ceases the carrying out of regulated activities by virtue of meeting the condition in sub-paragraph (1)(d), the date of the permanent cessation is deemed to be the date on which the operator suspends the carrying out of regulated activities at the installation.”.