The Greenhouse Gas Emissions Trading Scheme Regulations 2012

Regulation 30(b)

SCHEDULE 8 Allocation of aviation allowances from the special reserve

Purpose of this Schedule

1.—(1) This Schedule sets out the requirements that must be satisfied by an eligible person (“R”) who wishes to apply for an allocation of allowances issued from the special reserve under Article 3f of the Directive in any trading period.

(2) For that purpose, and subject to sub-paragraphs (3) and (4), an eligible person in a trading period is—

(a) a person who becomes a UK aircraft operator after the benchmarking year for that trading period; or

(b) a UK aircraft operator whose tonne-kilometre data in the second calendar year in the trading period exceeds by more than 93.9% its tonne-kilometre data in the benchmarking year for that trading period.

(3) A person is not an eligible person by virtue of sub-paragraph (2)(a) if that person has previously received an allocation of aviation allowances for that trading period.

(4) A person within sub-paragraph (2)(a), or a UK aircraft operator within sub-paragraph (2)(b), who would otherwise qualify as an eligible person by virtue of performing an aviation activity does not so qualify where that aviation activity is in whole or part a continuation of an activity previously performed by another person who is or has been a person falling within the definition of “aircraft operator” in Article 3(o) of the Directive.

Application for a benchmarking plan

2.—(1) R must apply to the regulator for a benchmarking plan in accordance with Article 51(2) of the Monitoring and Reporting Regulation.

(2) That application must contain a plan to monitor tonne-kilometre data from R’s aviation activity (together with supporting documents) submitted under Article 12(1) of the Monitoring and Reporting Regulation.

Issue of a benchmarking plan

3.—(1) Where R has made an application under paragraph 2 the regulator must, by notice given to R—

(a) issue a benchmarking plan to R; or

(b) where sub-paragraph (2) applies, refuse to issue such a plan.

(2) This sub-paragraph applies where—

(a) the regulator is not satisfied that the plan proposed in the application complies with the Monitoring and Reporting Regulation; and

(b) P has not agreed to amendments of the plan that satisfy the regulator.

(3) Where the regulator by notice refuses to issue a benchmarking plan under sub-paragraph (1)(b), the notice must state what changes must be made to the proposed plan for the purposes of any fresh application under paragraph 2.

Amendment of a benchmarking plan

4.—(1) R must apply to the regulator to the vary the benchmarking plan where any significant modifications of that plan are necessary by virtue of Articles 14 and 15 of the Monitoring and Reporting Regulation.

(2) Where the regulator varies the plan following an application under sub-paragraph (1), any reference in this paragraph or in paragraph 5 to a benchmarking plan is a reference to the plan as so varied.

Monitoring tonne-kilometre data

5.  R must monitor tonne-kilometre data from R’s aviation activity carried out in the benchmarking year in accordance with—

(a) the benchmarking plan issued under paragraph 3 (including the written procedures supplementing that plan); and

(b) the Monitoring and Reporting Regulation.

Application for an allocation of allowances

6.—(1) R must apply to the regulator by 30th June in the third year of a trading period.

(2) That application must—

(a) contain evidence that R is an eligible person under paragraph 1(2);

(b) include a verified report of R’s tonne-kilometre data monitored in accordance with paragraph 5;

(c) ensure that the report complies with the Monitoring and Reporting Regulation and the Verification Regulation; and

(d) where R is eligible by virtue of paragraph 1(2)(b), include evidence of—

(i) the percentage increase in R’s tonne-kilometres from the benchmarking year to the second calendar year in the trading period;

(ii) the increase in R’s tonne-kilometres from the benchmarking year to the second calendar year in the trading period; and

(iii) the amount in tonne-kilometres by which R exceeds the percentage in paragraph 1(2)(b) in the second calendar year in the trading period.

Submission of an application to the Secretary of State and to the European Commission

7.—(1) Where R has made an application under paragraph 6 the regulator must—

(a) grant the application and forward it to the Secretary of State; or

(b) subject to sub-paragraph (2), refuse the application where the regulator is not satisfied that R has complied with the requirements of this Schedule.

(2) The regulator may grant the application under sub-paragraph (1)(a) where R has otherwise complied with the requirements of this Schedule but failed to comply with the deadline in Article 51(2) of the Monitoring and Reporting Regulation or in paragraph 6(1).

(3) Where the regulator refuses the application under sub-paragraph (1)(b), the notice of determination must state the regulator’s reasons for doing so.

(4) The Secretary of State must submit an application received under sub-paragraph (1)(a) to the European Commission within 6 months of the deadline in paragraph 6(1).

Publication of aviation allowances from the special reserve

8.—(1) Within the period of 3 months beginning with the date on which the Commission adopts a decision under Article 3f(5) of the Directive in respect of a trading period, the Secretary of State must (in accordance with Article 3f(7)) calculate and publish—

(a) the total allocation of aviation allowances for the period from the special reserve to each UK administered operator whose application was submitted under paragraph 7(4); and

(b) the allocation of aviation allowances to each such UK administered operator for each remaining year of the period.

(2) Sub-paragraph (1) is subject to regulation 47 (national security).