Environmental Standards Scotland may not prepare an improvement report in respect of—
(a)a failure to comply with environmental law arising out of any decision taken by a public authority in the exercise of its regulatory functions in relation to a particular person or case (for example, a decision on an application for a licence or a decision on regulatory enforcement in a specific case), or
(b)a failure to comply with environmental law arising out of particular conduct if—
(i)it has issued a compliance notice under section 31(1) in respect of the same failure arising out of the same conduct, and
(ii)it has not subsequently withdrawn the compliance notice under section 35(1).