EXPLANATORY NOTE
(This note is not part of the Regulations)
Chapter 8 of Part 2 of the Energy Act 2013 (“the Act”) imposes a duty, “the emissions limit duty”, on operators of fossil fuel plants granted planning consent on or after 18th February 2014, to ensure that its annual emissions of carbon dioxide attributable to fossil fuels do not exceed an amount (“the emissions limit”) determined according to a formula set out in section 57(2) of the Act.
The Emissions Performance Standard Regulations 2015 make further provision for the application of the emissions limit duty in the United Kingdom. They extend the application of the emissions limit duty to include generating units that have replaced the main boiler or installed an additional main boiler; they modify the emissions limit where particular conditions apply during a year; they make provision for when a gasification plant should be considered as associated with a relevant fossil fuel plant; they exempt from the emissions limit duty generating units with a complete carbon capture and storage system; they set out what emissions are relevant in determining whether a fossil fuel plant has breached the emissions limit duty and they provide for a reduction in the emissions limit for fossil fuel plants which are combined heat and power plants.
These Regulations create a monitoring and enforcement regime, in relation to the emissions limit duty, for Wales.
Regulation 2 contains definitions.
Regulation 3 sets out the circumstances in which a fossil fuel plant operator must supply a notification to the NRBW. The notification must state the emissions limit for the fossil fuel plant, its installed generating capacity and the date on which it commenced or is expected to commence generation.
Regulation 4 makes provision for notifications to be given to the NRBW in relation to a complete CCS system, including to which generating units any exemption should apply.
Regulation 5 makes provision for the supply of a detailed emissions notification, an “EPS annual emissions notification”, containing the EPS annual emissions of a fossil fuel plant calculated in accordance with Part 2 of the Emissions Performance Standard Regulations 2015 and the methods of assessment and calculation used for the EU Emissions Trading Scheme.
Regulation 6 provides for the Welsh Ministers to establish a charging scheme for operation by the NRBW when carrying out functions under these Regulations.
Regulation 7 allows the NRBW to request further information from the operator of a fossil fuel plant, or the operator of an associated fossil fuel plant.
Regulation 8 allows for enforcement notices to be issued by the NRBW where an operator of a fossil fuel plant has breached the emissions limit duty.
Regulation 9 makes provision for NRBW to issue civil penalties, where an operator of a fossil fuel plant has breached the emissions limit duty. The Welsh Ministers may publish guidance on financial penalties, to which the NRBW must have regard.
Regulation 10 provides for the effect of directions made by the Secretary of State under section 59(2) of the Energy Act 2013 suspending the operation of the emissions limit duty.
Regulation 11 makes provision for appeals against enforcement notices and civil penalty notices to the First-tier Tribunal.
Regulation 12 allows the NRBW to publish information in relation to issuing enforcement notices and civil penalty notices, providing that any appeal has been determined or withdrawn, or that the time limit for bringing an appeal has elapsed.
Regulation 13 makes provision for NRBW to enforce information notices, enforcement notices and civil penalty notices by obtaining an order of the High Court.
Regulation 14 makes amendments to the Greenhouse Gas Emissions Trading Scheme Regulations 2012, to allow for information disclosure and publication as necessary for the performance of NRBW’s s functions under these Regulations.
Regulation 15 brings into force the Schedule which makes provision for the service of documents by the Welsh Ministers and the NRBW under these Regulations. The NRBW is given powers elsewhere in the Regulations to prescribe the manner in which operators may serve notifications on it.
The Welsh Ministers’ Code of Practice on the carrying out of Regulatory Impact Assessments was considered in relation to these Regulations. As a result, it was not considered necessary to carry out a regulatory impact assessment as to the likely costs and benefits of complying with these Regulations.