The Greenhouse Gas Emissions Trading Scheme Regulations 2003

Transfer of greenhouse gas emissions permits

14.—(1) Where the operator of an installation wishes to transfer, in whole or in part, his greenhouse gas emissions permit to another person (“the proposed transferee”) the operator and the proposed transferee shall jointly make an application to the regulator to effect the transfer.

(2) An application under paragraph (1) shall be accompanied by the greenhouse gas emissions permit and, except where the application relates to an offshore installation, the fee prescribed in respect of the transfer in regulation 17 and shall contain the operator’s and the proposed transferee’s telephone number and postal address and, if different, any address to which correspondence relating to the application should be sent.

(3) Where the operator wishes to transfer only part of his greenhouse gas emissions permit (a “partial transfer”), an application under paragraph (1) shall—

(a) identify the Schedule 1 activity to which the transfer applies (the “transferred activity”);

(b) identify the installation in which that transferred activity is carried out (the “transferred unit”).

(4) The regulator shall effect the transfer unless the regulator considers that—

(a) the proposed transferee will not be the operator of the transferred unit after the transfer is effected; or

(b) the proposed transferee will not ensure that the installation is operated so as to comply with any monitoring and reporting condition.

(5) The regulator shall effect a transfer under this regulation by—

(a) in the case of a partial transfer—

(i) issuing a new greenhouse gas emissions permit to the proposed transferee which—

(aa) applies to the transferred activity;

(bb) identifies the transferred unit; and

(cc) includes the conditions required by paragraph (6); and

(ii) returning the original greenhouse gas emissions permit to the operator, endorsed to record the transfer and varied to—

(aa) identify the Schedule 1 activity and the specified emissions from that activity;

(bb) describe the installation after the transfer; and

(cc) specify the conditions applying after the transfer as required by paragraph (6);

(b) in the case of a transfer of the whole greenhouse gas emissions permit, causing the permit to be endorsed with the name and other particulars of the proposed transferee as the operator of the transferred unit,

and the transfer shall take effect from such date as may be agreed with the applicants and specified in the endorsement and, in the case of a partial transfer, the new greenhouse gas emissions permit.

(6) In the case of a partial transfer effected under this regulation, the conditions included in the new greenhouse gas emissions permit and the original greenhouse gas emissions permit after the transfer shall be the same as the conditions included in the original permit immediately before the transfer in so far as they are relevant, respectively, to any installation to which the new permit relates or the original permit continues to relate but subject to such variations as, in the opinion of the regulator, are necessary to take account of the transfer.

(7) If within the period of two months beginning with the date on which the regulator receives an application under paragraph (1), or within such longer period as the regulator and the applicants may agree in writing, the regulator has neither effected the transfer nor given notice to the applicants that it has rejected the application, the application shall, if the applicants notify the regulator in writing that they are treating the application as having been refused, be deemed to have been refused at the end of that period or that longer period, as the case may be.

(8) The regulator may, by notice, require the operator or the proposed transferee to furnish such further information specified in the notice, within the period so specified, as the regulator may require for the purpose of determining an application under this regulation.

(9) Where a notice is served on an operator or proposed transferee under paragraph (8)—

(a) for the purpose of calculating the period of two months mentioned in paragraph (7), no account shall be taken of the period beginning with the date on which the notice is served and ending on the date on which the information specified in the notice is furnished; and

(b) if the specified information is not furnished within the period specified, the application shall, if the regulator gives notice to the operator and proposed transferee that it treats the application as having been withdrawn, be deemed to have been withdrawn at the end of that period.