80 Onshore wind power: circumstances in which certificates may be issued after the onshore wind closure date
(1) Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows.
(2) After section 32LC (inserted by section 79 of this Act) insert—
Onshore wind generating stations accredited, or additional capacity added, on or before the onshore wind closure date
32LD The circumstances set out in this section are where the electricity is—
(a) generated by an onshore wind generating station which was accredited on or before the onshore wind closure date, and
(b) generated using—
(i) the original capacity of the station, or
(ii) additional capacity which in the Authority's view first formed part of the station on or before the onshore wind closure date.
Onshore wind generating stations accredited, or additional capacity added, in the year after the onshore wind closure date: grid or radar delay condition met
32LE The circumstances set out in this section are where the electricity is—
(a) generated using the original capacity of an onshore wind generating station—
(i) which was accredited during the period beginning immediately after the onshore wind closure date and ending with the first anniversary of the onshore wind closure date, and
(ii) in respect of which the grid or radar delay condition is met, or
(b) generated using additional capacity of an onshore wind generating station, where—
(i) the station was accredited on or before the onshore wind closure date,
(ii) in the Authority's view, the additional capacity first formed part of the station during the period beginning immediately after the onshore wind closure date and ending with the first anniversary of the onshore wind closure date, and
(iii) the grid or radar delay condition is met in respect of the additional capacity.
Onshore wind generating stations accredited, or additional capacity added, on or before 31 March 2017: approved development condition met
32LF The circumstances set out in this section are where the electricity is—
(a) generated using the original capacity of an onshore wind generating station—
(i) which was accredited on or before 31 March 2017, and
(ii) in respect of which the approved development condition is met, or
(b) generated using additional capacity of an onshore wind generating station, where—
(i) the station was accredited on or before the onshore wind closure date,
(ii) in the Authority's view, the additional capacity first formed part of the station on or before 31 March 2017, and
(iii) the approved development condition is met in respect of the additional capacity.
Onshore wind generating stations accredited, or additional capacity added, between 1 April 2017 and 31 March 2018: grid or radar delay condition met
32LG The circumstances set out in this section are where the electricity is—
(a) generated using the original capacity of an onshore wind generating station—
(i) which was accredited during the period beginning with 1 April 2017 and ending with 31 March 2018,
(ii) in respect of which the approved development condition is met, and
(iii) in respect of which the grid or radar delay condition is met, or
(b) generated using additional capacity of an onshore wind generating station, where—
(i) the station was accredited on or before the onshore wind closure date,
(ii) in the Authority's view, the additional capacity first formed part of the station during the period beginning with 1 April 2017 and ending with 31 March 2018,
(iii) the approved development condition is met in respect of the additional capacity, and
(iv) the grid or radar delay condition is met in respect of the additional capacity.
Onshore wind generating stations accredited, or additional capacity added, between 1 April 2017 and 31 January 2018: investment freezing condition met
32LH The circumstances set out in this section are where the electricity is—
(a) generated using the original capacity of an onshore wind generating station—
(i) which was accredited during the period beginning with 1 April 2017 and ending with 31 January 2018, and
(ii) in respect of which both the approved development condition and the investment freezing condition are met, or
(b) generated using additional capacity of an onshore wind generating station, where—
(i) the station was accredited on or before the onshore wind closure date,
(ii) in the Authority's view, the additional capacity first formed part of the station during the period beginning with 1 April 2017 and ending with 31 January 2018, and
(iii) both the approved development condition and the investment freezing condition are met in respect of the additional capacity.
Onshore wind generating stations accredited, or additional capacity added, between 1 February 2018 and 31 January 2019: grid or radar delay condition met
32LI The circumstances set out in this section are where the electricity is—
(a) generated using the original capacity of an onshore wind generating station—
(i) which was accredited during the period beginning with 1 February 2018 and ending with 31 January 2019,
(ii) in respect of which both the approved development condition and the investment freezing condition are met, and
(iii) in respect of which the grid or radar delay condition is met, or
(b) generated using additional capacity of an onshore wind generating station, where—
(i) the station was accredited on or before the onshore wind closure date,
(ii) in the Authority's view, the additional capacity first formed part of the station during the period beginning with 1 February 2018 and ending with 31 January 2019,
(iii) both the approved development condition and the investment freezing condition are met in respect of the additional capacity, and
(iv) the grid or radar delay condition is met in respect of the additional capacity.
The approved development condition
32LJ (1) This section applies for the purposes of sections 32LF to 32LI.
(2) The approved development condition is met in respect of an onshore wind generating station if the documents specified in subsections (4), (5) and (6) were provided to the Authority with the application for accreditation of the station.
(3) The approved development condition is met in respect of additional capacity if the documents specified in subsections (4), (5) and (6) were provided to the Authority on or before the date on which the Authority made its decision that the additional capacity could form part of an onshore wind generating station.
(4) The documents specified in this subsection are—
(a) evidence that—
(i) planning permission for the station or additional capacity was granted on or before 18 June 2015, and
(ii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached,
(b) evidence that—
(i) planning permission for the station or additional capacity was refused on or before 18 June 2015, but granted after that date following an appeal or judicial review, and
(ii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached,
(c) evidence that—
(i) an application for 1990 Act permission or 1997 Act permission was made on or before 18 June 2015 for the station or additional capacity,
(ii) the period allowed under section 78(2) of the 1990 Act or (as the case may be) section 47(2) of the 1997 Act ended on or before 18 June 2015 without any of the things mentioned in section 78(2)(a) to (b) of the 1990 Act or section 47(2)(a) to (c) of the 1997 Act being done in respect of the application,
(iii) the application was not referred to the Secretary of State, Welsh Ministers or Scottish Ministers in accordance with directions given under section 77 of the 1990 Act or section 46 of the 1997 Act,
(iv) 1990 Act permission or 1997 Act permission was granted after 18 June 2015 following an appeal, and
(v) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached, or
(d) a declaration by the operator of the station that, to the best of the operator's knowledge and belief, planning permission is not required for the station or additional capacity.
(5) The documents specified in this subsection are—
(a) a copy of an offer from a licensed network operator made on or before 18 June 2015 to carry out grid works in relation to the station or additional capacity, and evidence that the offer was accepted on or before that date (whether or not the acceptance was subject to any conditions or other terms), or
(b) a declaration by the operator of the station that, to the best of the operator's knowledge and belief, no grid works were required to be carried out by a licensed network operator in order to enable the station to be commissioned or the additional capacity to form part of the station.
(6) The documents specified in this subsection are a declaration by the operator of the station that, to the best of the operator's knowledge and belief, as at 18 June 2015 a relevant developer of the station or additional capacity (or a person connected, within the meaning of section 1122 of the Corporation Tax Act 2010, with a relevant developer of the station or additional capacity)—
(a) was an owner or lessee of the land on which the station or additional capacity is situated,
(b) had entered into an agreement to purchase or lease the land on which the station or additional capacity is situated,
(c) had an option to purchase or to lease the land on which the station or additional capacity is situated, or
(d) was a party to an exclusivity agreement in relation to the land on which the station or additional capacity is situated.
(7) In this section—
“the 1990 Act” means the Town and Country Planning Act 1990;
“1990 Act permission” means planning permission under the 1990 Act (except outline planning permission, within the meaning of section 92 of that Act);
“the 1997 Act” means the Town and Country Planning (Scotland) Act 1997;
“1997 Act permission” means planning permission under the 1997 Act (except planning permission in principle, within the meaning of section 59 of that Act);
“exclusivity agreement”, in relation to land, means an agreement by the owner or a lessee of the land not to permit any person (other than the persons identified in the agreement) to construct an onshore wind generating station on the land;
“planning permission” means—
consent under section 36 of this Act,
1990 Act permission,
1997 Act permission, or
development consent under the Planning Act 2008.
The investment freezing condition
32LK (1) This section applies for the purposes of sections 32LH and 32LI.
(2) The investment freezing condition is met in respect of an onshore wind generating station if the documents specified in subsection (4) were provided to the Authority with the application for accreditation of the station.
(3) The investment freezing condition is met in respect of additional capacity if the documents specified in subsection (4) were provided to the Authority on or before the date on which the Authority made its decision that the additional capacity could form part of an onshore wind generating station.
(4) The documents specified in this subsection are—
(a) a declaration by the operator of the station that, to the best of the operator's knowledge and belief, as at the Royal Assent date—
(i) the relevant developer required funding from a recognised lender before the station could be commissioned or additional capacity could form part of the station,
(ii) a recognised lender was not prepared to provide that funding until enactment of the Energy Act 2016, because of uncertainty over whether the Act would be enacted or its wording if enacted, and
(iii) the station would have been commissioned, or the additional capacity would have formed part of the station, on or before 31 March 2017 if the funding had been provided before the Royal Assent date, and
(b) a letter or other document, dated on or before the date which is 28 days after the Royal Assent date, from a recognised lender confirming (whether or not the confirmation is subject to any conditions or other terms) that the lender was not prepared to provide funding in respect of the station or additional capacity until enactment of the Energy Act 2016, because of uncertainty over whether the Act would be enacted or its wording if enacted.
(5) In this section—
“recognised lender” means a provider of debt finance which has been issued with an investment grade credit rating by a registered credit rating agency;
“the Royal Assent date” means the date on which the Energy Act 2016 is passed.
(6) For the purposes of the definition of “recognised lender” in subsection (5)—
“investment grade credit rating” means a credit rating commonly understood by registered credit rating agencies to be investment grade;
“registered credit rating agency” means a credit rating agency registered in accordance with Regulation (EC) No 1060/2009 of the European Parliament and the Council of 16 September 2009 on credit rating agencies.
The grid or radar delay condition
32LL (1) This section applies for the purposes of sections 32LE, 32LG and 32LI.
(2) The grid or radar delay condition is met in respect of an onshore wind generating station if, on or before the date on which the Authority made its decision to accredit the station, the documents specified in subsection (4), (5) or (6) were—
(a) submitted by the operator of the station, and
(b) received by the Authority.
(3) The grid or radar delay condition is met in respect of additional capacity if, on or before the date on which the Authority made its decision that the additional capacity could form part of an onshore wind generating station, the documents specified in subsection (4), (5) or (6) were—
(a) submitted by the operator of the station, and
(b) received by the Authority.
(4) The documents specified in this subsection are—
(a) evidence of an agreement with a network operator (“the relevant network operator”) to carry out grid works in relation to the station or additional capacity (“the relevant grid works”);
(b) a copy of a document written by, or on behalf of, the relevant network operator which estimated or set a date for completion of the relevant grid works (“the planned grid works completion date”) which was no later than the primary date;
(c) a letter from the relevant network operator confirming (whether or not such confirmation is subject to any conditions or other terms) that—
(i) the relevant grid works were completed after the planned grid works completion date, and
(ii) in the relevant network operator's opinion, the failure to complete the relevant grid works on or before the planned grid works completion date was not due to any breach by a generating station developer of any agreement with the relevant network operator; and
(d) a declaration by the operator of the station that, to the best of the operator's knowledge and belief, the station would have been commissioned, or the additional capacity would have formed part of the station, on or before the primary date if the relevant grid works had been completed on or before the planned grid works completion date.
(5) The documents specified in this subsection are—
(a) evidence of an agreement between a generating station developer and a person who is not a generating station developer (“the radar works agreement”) for the carrying out of radar works (“the relevant radar works”);
(b) a copy of a document written by, or on behalf of, a party to the radar works agreement (other than a generating station developer) which estimated or set a date for completion of the relevant radar works (“the planned radar works completion date”) which was no later than the primary date;
(c) a letter from a party to the radar works agreement (other than a generating station developer) confirming, whether or not such confirmation is subject to any conditions or other terms, that—
(i) the relevant radar works were completed after the planned radar works completion date, and
(ii) in that party's opinion, the failure to complete the relevant radar works on or before the planned radar works completion date was not due to any breach of the radar works agreement by a generating station developer; and
(d) a declaration by the operator of the station that, to the best of the operator's knowledge and belief, the station would have been commissioned, or the additional capacity would have formed part of the station, on or before the primary date if the relevant radar works had been completed on or before the planned radar works completion date.
(6) The documents specified in this subsection are—
(a) the documents specified in subsection (4)(a), (b) and (c);
(b) the documents specified in subsection (5)(a), (b) and (c); and
(c) a declaration by the operator of the station that, to the best of the operator's knowledge and belief, the station would have been commissioned, or the additional capacity would have formed part of the station, on or before the primary date if—
(i) the relevant grid works had been completed on or before the planned grid works completion date, and
(ii) the relevant radar works had been completed on or before the planned radar works completion date.
(7) In this section “the primary date” means—
(a) in a case within section 32LE(a)(i) or (b)(i) and (ii), the onshore wind closure date;
(b) in a case within section 32LG(a)(i) and (ii) or (b)(i) to (iii), 31 March 2017;
(c) in a case within section 32LI(a)(i) and (ii) or (b)(i) to (iii), 31 January 2018.
(3) In section 32M (interpretation of sections 32 to 32M)—
(a) in subsection (1), for “32LB” substitute “ 32LL ”;
(b) at the appropriate places insert the following definitions—
“accredited”, in relation to an onshore wind generating station, means accredited by the Authority as a generating station which is capable of generating electricity from renewable sources; and “accredit” and “accreditation” are to be construed accordingly;
;
“additional capacity”, in relation to an onshore wind generating station, means any generating capacity which does not form part of the original capacity of the station;
;
“commissioned”, in relation to an onshore wind generating station, means having completed such procedures and tests in relation to the station as constitute, at the time they are undertaken, the usual industry standards and practices for commissioning that type of generating station in order to demonstrate that it is capable of commercial operation;
;
“generating station developer”, in relation to an onshore wind generating station or additional capacity, means—
(a) the operator of the station, or
(b) a person who arranged for the construction of the station or additional capacity;
;
“grid works”, in relation to an onshore wind generating station, means—
(a) the construction of a connection between the station and a transmission or distribution system for the purpose of enabling electricity to be conveyed from the station to the system, or
(b) the carrying out of modifications to a connection between the station and a transmission or distribution system for the purpose of enabling an increase in the amount of electricity that can be conveyed over that connection from the station to the system;
;
“licensed network operator” means a distribution licence holder or a transmission licence holder;
;
“network operator” means a distribution exemption holder, a distribution licence holder or a transmission licence holder;
;
“the onshore wind closure date” has the meaning given by section 32LC(3);
;
“onshore wind generating station” has the meaning given by section 32LC(3);
;
“original capacity”, in relation to an onshore wind generating station, means the generating capacity of the station as accredited;
;
“radar works” means—
(a) the construction of a radar station,
(b) the installation of radar equipment,
(c) the carrying out of modifications to a radar station or radar equipment, or
(d) the testing of a radar station or radar equipment;
;
“relevant developer”, in relation to an onshore wind generating station or additional capacity, means a person who—
(a) applied for planning permission for the station or additional capacity,
(b) arranged for grid works to be carried out in relation to the station or additional capacity,
(c) arranged for the construction of any part of the station or additional capacity,
(d) constructed any part of the station or additional capacity, or
(e) operates, or proposes to operate, the station;
.
81 Onshore wind power: use of Northern Ireland certificates
(1) The Electricity Act 1989 is amended as follows.
(2) Before section 32M insert—
Use of Northern Ireland certificates: onshore wind power
32LM (1) The Secretary of State may make regulations providing that an electricity supplier may not discharge its renewables obligation (or its obligation in relation to a particular period) by the production to the Authority of a relevant Northern Ireland certificate, except in the circumstances, and to the extent, specified in the regulations.
(2) A “relevant Northern Ireland certificate” is a Northern Ireland certificate issued in respect of electricity generated after the onshore wind closure date (or any later date specified in the regulations)—
(a) using the original capacity of a Northern Ireland onshore wind generating station accredited after the onshore wind closure date (or any later date so specified), or
(b) using additional capacity of a Northern Ireland onshore wind generating station, where in the Authority's view the additional capacity first formed part of the station after the onshore wind closure date (or any later date so specified).
(3) In this section—
“NIRO Order” means any order made under Articles 52 to 55F of the Energy (Northern Ireland) Order 2003;
“Northern Ireland certificate” means a renewables obligation certificate issued by the Northern Ireland authority under the Energy (Northern Ireland) Order 2003 and pursuant to a NIRO Order;
“Northern Ireland onshore wind generating station” means a generating station that—
generates electricity from wind, and
is situated in Northern Ireland, but not in waters in or adjacent to Northern Ireland up to the seaward limits of the territorial sea.
(4) Power to make provision in a renewables obligation order by virtue of section 32F (and any provision contained in such an order) is subject to provision contained in regulations under this section.
(5) This section is not otherwise to be taken as affecting power to make provision in a renewables obligation order.
(6) Regulations under this section may amend a renewables obligation order.
(7) Section 32K applies in relation to regulations under this section as it applies in relation to a renewables obligation order.
(3) In section 32M (interpretation)—
(a) in subsection (1), for “32LB” substitute “ 32LM ”;
(b) in subsection (7), for “32L” substitute “ 32LM ”.
(1) A power to make regulations under this Act is exercisable by statutory instrument.
(2) A power to make regulations under this Act includes power—
(a) to make different provision for different purposes (including areas);
(b) to make provision generally or in relation to specific cases.
(3) A power to make regulations under this Act (except the power conferred by section 84) includes power to make incidental, consequential, supplemental, transitional or transitory provision or savings.
(4) A statutory instrument containing—
(a) regulations under section 2 which amend or repeal any Act or provision of an Act,
(b) regulations under section 45(7),
(c) regulations under section 63(6) or,
(d) regulations under section 66(1),
may not be made unless a draft of the instrument has been laid before, and approved by a resolution of, each House of Parliament.
(5) A statutory instrument containing any other regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.
(6) Subsection (5) does not apply to a statutory instrument containing regulations under section 84.
83 Regulations and orders: disapplication of requirements to consult the OGA
(1) This section applies where the Secretary of State is required by this Act, the Petroleum Act 1998 or the Energy Act 2008 to consult the OGA before exercising a power to make regulations or an order.
(2) The requirement does not apply in relation to the first exercise of the power in the period of one year beginning with the date on which section 1 comes into force.
(1) Sections 79 to 81 and this Part come into force on the day on which this Act is passed.
(2) Part 4 comes into force two months after the day on which this Act is passed.
(3) The remaining provisions of this Act come into force on such day or days as the Secretary of State may by regulations appoint.
(4) Regulations under subsection (3) may include transitional or transitory provision or savings.
(1) This Act may be cited as the Energy Act 2016.
(2) An amendment (other than an amendment of Part 1A of the Petroleum Act 1998) or repeal made by this Act has the same extent as the provision to which it relates.
(3) Subject to subsection (2), this Act extends to the whole of the United Kingdom.
Section 2
PART 1 Primary legislation
Energy Act 1976
1 The Energy Act 1976 is amended as follows.
2 (1) Section 12 (disposal of gas by flaring, etc) is amended as follows.
(2) After subsection (2) insert—
(2A) Disposal of gas by flaring, or by releasing it unignited into the atmosphere, does not require consent under this section if consent—
(a) is required under section 12A (disposal of gas by flaring etc: OGA's functions), or
(b) would be required under that section but for subsection (3) of that section.
(3) At the end of the heading insert “ : Secretary of State's functions ”.
3 After section 12 insert—
Disposal of gas by flaring, etc: OGA's functions
12A (1) The OGA's consent is required for natural gas to be disposed of (whether at source or elsewhere)—
(a) by flaring, or by releasing it unignited into the atmosphere, from anything that for the purposes of section 82(1) of the Energy Act 2011 is a relevant oil processing facility or a relevant gas processing facility, or
(b) by releasing it unignited into the atmosphere in connection with activities carried out under a licence granted under—
(i) section 3 of the Petroleum Act 1998, or
(ii) section 2 of the Petroleum (Production) Act 1934.
(2) This section applies to all natural gas of the United Kingdom, whether obtained there or in territorial waters, or in areas designated under the Continental Shelf Act 1964, except gas conveyed through pipes to premises by a gas transporter within the meaning of Part 1 of the Gas Act 1986.
(3) Disposal of gas does not require consent under this section if—
(a) it is necessary in order to reduce or avoid the risk of injury to any person,
(b) the risk could not reasonably have been foreseen in time to reduce or avoid it otherwise than by means of the disposal, and
(c) it was not reasonably practicable to obtain consent under this section in the time available.
(4) A person who disposes of gas in cases where the consent of the OGA would have been required but for subsection (3) must inform the OGA of that disposal as soon as practicable after the disposal takes place.
(5) The OGA's consent under this section—
(a) may be given only by reference to particular cases, and
(b) may be made subject to conditions which may, in particular, be framed by reference to the description or origin of the gas, or the quantities to be disposed of.
Sanctions for failure to comply with section 12A
12B (1) The requirements imposed by subsections (1) and (4) of section 12A are to be treated for the purposes of Chapter 5 of Part 2 of the Energy Act 2016 (power of the OGA to impose sanctions) as petroleum-related requirements.
(2) But the OGA may not give an enforcement notice, a revocation notice or an operator removal notice under that Chapter by virtue of this section.
4 (1) Section 18 (administration, enforcement and offences) is amended as follows.
(2) In subsection (2)(a), for “9 and 12” substitute “ 9, 12 and 12A ”.
(3) In subsection (3)—
(a) in paragraph (a), for “9 or 12” substitute “ 9, 12 or 12A ”, and
(b) in paragraph (b), after “Secretary of State” insert “ or the OGA ”.
5 In section 21 (interpretation), after the definition of “natural gas” insert—
“the OGA” means the Oil and Gas Authority;
.
Petroleum Act 1998
6 The Petroleum Act 1998 is amended as follows.
7 In section 9A(2) (principal objective and the strategy), for “Secretary of State” substitute “ OGA ”.
8 In section 9B (exercise of certain functions)—
(a) for “Secretary of State” (including in the heading) substitute “ OGA ”,
(b) in paragraph (b), omit the words from “to the extent” to the end, and
(c) after paragraph (c) insert—
(ca) exercising functions under Part 2 of the Energy Act 2016,
.
9 After section 9B insert—
Exercise of certain functions of the Secretary of State
9BA (1) The Secretary of State must act in accordance with the current strategy or strategies when exercising the functions mentioned in subsection (2).
(2) Those functions are functions under Part 4 to the extent that they concern reduction of the costs of abandonment of offshore installations and submarine pipelines (including the reduction of such costs by means of the timing of measures proposed in abandonment programmes and by the inclusion in such programmes of provision for collaboration with other persons).
10 Omit section 9D.
11 (1) Section 9E (security and resilience functions) is amended as follows.
(2) In subsection (1), for “Secretary of State's” substitute “OGA's”.
(3) In subsection (2), for “Secretary of State” substitute “ OGA ”.
(4) In the heading, for “Secretary of State's” substitute “OGA's”.
12 (1) Section 9F (producing and revising a strategy) is amended as follows.
(2) Omit subsection (1).
(3) For subsection (2) substitute—
(2) After the first strategy has been produced, the OGA may—
(a) produce a new strategy, or
(b) revise a current strategy,
whenever the OGA thinks appropriate.
(4) In subsection (3), for “Secretary of State” substitute “ OGA ”.
(5) Omit subsection (4).
13 (1) Section 9G (procedure for producing and revising a strategy) is amended as follows.
(2) In subsection (1)—
(a) omit paragraph (a), and
(b) for “Secretary of State” substitute “ OGA ”.
(3) In subsection (2), for “Secretary of State” (in both places) substitute “ OGA ”.
(4) For subsection (3) substitute—
(3) If, after complying with that duty, the OGA decides to proceed with the draft (in its original form or with modifications), the OGA must send the draft to the Secretary of State.
(3A) The Secretary of State must either—
(a) lay a copy of the draft before each House of Parliament, or
(b) return the draft to the OGA and publish the Secretary of State's reasons for doing so.
(3B) The Secretary of State may return the draft to the OGA only if the Secretary of State thinks that—
(a) the OGA has failed to comply with subsection (2), or
(b) the strategy will not enable the principal objective to be met.
(5) In subsection (4), for “The Secretary of State” substitute “ Where a copy of the draft has been laid in accordance with subsection (3A)(a), the OGA ”.
(6) In subsection (5), for “Secretary of State” substitute “ OGA ”.
(7) In subsection (6), for “Secretary of State” substitute “ OGA ”.
14 In section 14(1) (construction and use of pipelines), for “Secretary of State” substitute “ OGA ”.
15 In section 15 (authorisations), for “Secretary of State” (in each place) substitute “ OGA ”.
16 In section 16 (compulsory modifications of pipelines), for “Secretary of State” (in each place) substitute “ OGA ”.
17 (1) Section 17 (acquisition of rights to use pipelines) is amended as follows.
(2) In subsection (1), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (2)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(4) In subsection (3)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(5) In subsection (5), for “Secretary of State” substitute “ OGA ”.
(6) In subsection (7), for “Secretary of State” substitute “ OGA ”.
(7) In subsection (8)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
18 (1) Section 17F (acquisition of rights to use controlled petroleum pipelines) is amended as follows.
(2) In subsection (2), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (5), for “Secretary of State” substitute “ OGA ”.
(4) In subsection (6)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(5) In subsection (7)—
(a) for “Secretary of State” (in each place) substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(6) In subsection (8), for “Secretary of State” substitute “ OGA ”.
(7) In subsection (9)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(8) In subsection (10), for “Secretary of State” substitute “ OGA ”.
19 (1) Section 17G (section 17F: supplemental) is amended as follows.
(2) In subsection (1)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “himself” substitute “ itself ”.
(3) In subsection (2)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “him” substitute “ it ”.
(4) In subsection (4)—
(a) for “Secretary of State” substitute “ OGA ”,
(b) for “he” substitute “ it ”, and
(c) for “him” substitute “ it ”.
(5) In subsection (6), for “Secretary of State” substitute “ OGA ”.
(6) In subsection (7)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(7) In subsection (8), for “Secretary of State” substitute “ OGA ”.
20 (1) Section 17GA (controlled petroleum pipeline subject to Norwegian access system) is amended as follows.
(2) In subsection (2), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (5)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) in paragraph (a), for “he” substitute “ it ”.
(4) In subsection (6), for “Secretary of State” substitute “ OGA ”.
(5) In subsection (7), for “Secretary of State” substitute “ OGA ”.
(6) In subsection (8), for “he is obliged to do so under the Framework Agreement, the Secretary of State shall make his” substitute “ the Framework Agreement so requires, the OGA shall make its ”.
21 (1) Section 17GB (section 17GA: supplemental) is amended as follows.
(2) In subsection (1)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “him” substitute “ it ”.
(3) In subsection (2)—
(a) for “Secretary of State” substitute “ OGA ”,
(b) for “he is required to do so” substitute “ the disclosure is required ”, and
(c) omit “on him”.
22 (1) Section 18 (termination of authorisations) is amended as follows.
(2) In subsection (1)(b), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (2)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(4) In subsection (3)(b), for “Secretary of State” substitute “ OGA ”.
(5) In subsection (4)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(6) In subsection (5)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “he” (in each place) substitute “ it ”.
(7) In subsection (6), for “Secretary of State” (in both places) substitute “ OGA ”.
(8) In subsection (7)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “him” substitute “ it ”.
(9) In subsection (8), for “Secretary of State” (in both places) substitute “ OGA ”.
(10) In subsection (9)—
(a) for “Secretary of State” substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
23 (1) Section 19 (vesting of pipelines on termination or subsequent issue of authorisations) is amended as follows.
(2) In subsection (1), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (2)—
(a) for “Secretary of State” (in each place) substitute “ OGA ”, and
(b) for “he” substitute “ the OGA ”.
24 (1) Section 20 (inspectors etc) is amended as follows.
(2) For subsection (1) substitute—
(1) The OGA may appoint, as inspectors to assist it in the execution of this Part of this Act, such number of persons appearing to it to be qualified for the purpose as it considers appropriate from time to time.
(3) In subsection (2)(a)(ii), for “Secretary of State” substitute “ OGA ”.
25 (1) Section 21 (enforcement) is amended as follows.
(2) In subsection (1)(c), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (2), for “Secretary of State” substitute “ OGA ”.
(4) In subsection (3), for “Secretary of State” substitute “ OGA ”.
(5) In subsection (4)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(6) In subsection (5), for “Secretary of State” (in each place) substitute “ OGA ”.
26 In section 25 (orders and regulations), for subsection (1) substitute—
(1) Before making any order or regulations under this Part of this Act, the Secretary of State must consult—
(a) the OGA, and
(b) in the case of regulations, such organisations in the United Kingdom as the Secretary of State considers are representative of persons who will be affected by the regulations.
27 In section 28(1) (interpretation of Part 3), for the definition of “heard” substitute—
“heard” means—
(a) in relation to section 27, heard on behalf of the Secretary of State by a person appointed by the Secretary of State for the purpose, and
(b) otherwise, heard on behalf of the OGA by a person appointed by the OGA for the purpose.”
28 In section 45A (abandoned wells), for “Secretary of State” (in each place) substitute “ OGA ”.
29 In section 46(1) (Northern Ireland and Isle of Man shares of petroleum revenue), for “Secretary of State” (in each place) substitute “ OGA ”.
30 (1) Section 47A (factors to take into account) is amended as follows.
(2) In subsection (1)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “him” substitute “ it ”.
(3) In subsection (2A), for “Secretary of State” substitute “ OGA ”.
(4) In the heading, for “Secretary of State” substitute “ OGA ”.
31 In section 48 (interpretation), after subsection (1) insert—
(1A) In this Act “the OGA” means the Oil and Gas Authority.
32 (1) Schedule 2 (authorisations) is amended as follows.
(2) Omit paragraph 1(2).
(3) In paragraph 2—
(a) for “Secretary of State” (in each place) substitute “ OGA ”, and
(b) in paragraph (b), for “his” substitute “ its ”.
(4) In paragraph 3—
(a) for “Secretary of State” (in each place) substitute “ OGA ”,
(b) for “his” substitute “ its ”, and
(c) for “he” substitute “ it ”.
33 (1) Paragraph 4 is amended as follows.
(2) In sub-paragraph (1)—
(a) for “Secretary of State” substitute “ OGA ”,
(b) for “his” substitute “ its ”, and
(c) for “him” substitute “ it ”.
(3) In sub-paragraph (2)—
(a) for “Secretary of State” (in each place) substitute “ OGA ”, and
(b) for “his” substitute “ its ”.
(4) In sub-paragraph (3)—
(a) for “Secretary of State” substitute “ OGA ”,
(b) for “his” substitute “ its ”, and
(c) for “he” substitute “ it ”.
34 (1) Paragraph 5 is amended as follows.
(2) In sub-paragraph (1)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”,
(b) for “his opinion he” substitute “ its opinion it ”, and
(c) for “he thinks” substitute “ it thinks ”.
(3) In sub-paragraph (2)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “his opinion, he” substitute “ its opinion, it ”.
35 In paragraph 6, for “Secretary of State” (in both places) substitute “ OGA ”.
36 In paragraph 7—
(a) for “Secretary of State” (in each place) substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
37 (1) Paragraph 8 is amended as follows.
(2) In sub-paragraph (1)—
(a) for “Secretary of State” (in both places) substitute “ OGA ”, and
(b) for “he” substitute “ it ”.
(3) In sub-paragraph (2)—
(a) for “Secretary of State” substitute “ OGA ”,
(b) for “he” (in the first place) substitute “ it ”, and
(c) in paragraph (b), for the words following “notice in” substitute “ such manner as it considers appropriate ”.
38 (1) Paragraph 9 is amended as follows.
(2) In sub-paragraph (1), for “Secretary of State” substitute “ OGA ”.
(3) In sub-paragraph (2), for “Secretary of State” (in each place) substitute “ OGA ”.
(4) For sub-paragraph (3) substitute—
(3) The OGA shall publish a copy of the notice in such manner as it considers appropriate.
39 In paragraph 10—
(a) for “Secretary of State” (in each place) substitute “ OGA ”, and
(b) for the words from “he shall” to “which he” substitute “ it shall publish, in such manner as it ”.
Energy Act 2004
40 (1) Section 188 of the Energy Act 2004 (power to impose charges to fund energy functions) is amended as follows.
(2) In subsection (7), omit paragraphs (b), (h), (m) and (n).
(3) In subsection (8), omit paragraphs (da), (db) and (f).
(4) In subsection (12), in the substituted subsection (7A)(b), for “ mentioned in subsection (8)(db) ” (in both places) substitute “ for which a licence under Chapter 3 of Part 1 of the Energy Act 2008 is required ”.
Energy Act 2008
41 The Energy Act 2008 is amended as follows.
42 In section 4(1) (licences), for “Secretary of State” substitute “ OGA ”.
43 (1) Section 5 (applications) is amended as follows.
(2) The existing provision becomes subsection (1).
(3) In that subsection, omit paragraph (e).
(4) After that subsection insert—
(2) Before making any regulations under this section, the Secretary of State must consult the OGA.
44 In section 6 (terms and conditions), for “Secretary of State” (in each place) substitute “ OGA ”.
45 (1) Section 7 (model clauses) is amended as follows.
(2) In subsection (3), for “Secretary of State” substitute “ OGA ”.
(3) After that subsection insert—
(4) Before making any regulations under this section, the Secretary of State must consult the OGA.
46 (1) Section 9 (offences relating to licences) is amended as follows.
(2) In subsection (1)(a), for “Secretary of State” substitute “ OGA ”.
(3) In subsection (3)(b), for “Secretary of State” substitute “ OGA ”.
(4) In subsection (4)(b), for “Secretary of State” substitute “ OGA ”.
47 In section 10 (power of direction), for “Secretary of State” (in each place, including in the heading) substitute “ OGA ”.
48 In section 12 (injunctions restraining breaches of section 2(1)), for “Secretary of State” (in each place) substitute “ OGA ”.
49 (1) Section 13 (inspectors) is amended as follows.
(2) In subsection (1), for “Secretary of State” (in both places) substitute “ OGA ”.
(3) Omit subsection (2).
(4) In subsection (3)(b), for “Secretary of State” substitute “ OGA ”.
(5) After subsection (5) insert—
(6) Before making any regulations under this section, the Secretary of State must consult the OGA.
50 In section 14(5) (proceedings for offence created by regulations under section 13), omit paragraph (b) and the word “and” immediately before it.
51 In section 15 (interaction with petroleum licensing requirements), for “Secretary of State” (in each place) substitute “ OGA ”.
52 In section 16 (interpretation), at the end insert—
“the OGA” means the Oil and Gas Authority.
53 In section 18(2) (licences: the licensing authority), for “Secretary of State” (in each place) substitute “ OGA ”.
54 In section 19 (requirements relating to grant of licences), after subsection (2) insert—
(2A) Where the licensing authority is the OGA—
(a) regulations under subsection (1) are to be made by the Secretary of State (and not by the OGA),
(b) the Secretary of State must consult the OGA before making the regulations, and
(c) subsection (2)(d) does not apply.
55 In section 21 (content of licences: regulations), after subsection (2) insert—
(2A) Where the licensing authority is the OGA—
(a) regulations under subsection (1) are to be made by the Secretary of State (and not by the OGA), and
(b) the Secretary of State must consult the OGA before making the regulations.
56 In section 26 (injunctions restraining breaches of section 17(1)), for “Secretary of State” (in each place) substitute “ OGA ”.
57 (1) Section 27 (inspectors) is amended as follows.
(2) For subsections (1) and (2) substitute—
(1) The following may appoint persons to act as inspectors to assist in carrying out their respective functions under this Chapter—
(a) the OGA,
(b) the Scottish Ministers,
(c) the Welsh Ministers, and
(d) the Department of Enterprise, Trade and Investment in Northern Ireland.
(2) The following may make payments, by way of remuneration or otherwise, to inspectors appointed by them under this section—
(a) the Scottish Ministers,
(b) the Welsh Ministers, and
(c) the Department of Enterprise, Trade and Investment in Northern Ireland.
(3) In subsection (3)(b), for “Secretary of State” substitute “ OGA ”.
(4) In subsection (6)—
(a) for “This section applies” substitute “ Subsections (3) to (5) apply ”,
(b) for “it applies” substitute “ they apply ”, and
(c) at the end insert “ (reading the reference to the OGA in subsection (3)(b) as a reference to the Secretary of State) ”.
(5) Omit subsection (7).
58 In section 28(5) (proceedings for offence created by regulations under section 27), at the beginning of paragraph (b) insert “ except in the case of an offence that relates to functions of the OGA under this Chapter, ”.
59 In section 29 (requirement for public register) at the end insert—
(8) The OGA must provide to the Secretary of State any information held by it that is required by the Secretary of State in order to comply with the requirements imposed by this section.
60 In section 31 (termination of licences: regulations), after subsection (3) insert—
(3A) Where the licensing authority is the OGA—
(a) regulations under this section are to be made by the Secretary of State (and not by the OGA), and
(b) the Secretary of State must consult the OGA before making the regulations.
61 In section 33 (enhanced petroleum recovery: power to make orders), after subsection (1) insert—
(1A) Before making an order under subsection (1), the Secretary of State must consult the OGA.
62 In section 35(1) (interpretation), after the definition of “offshore UK-controlled place” insert—
“the OGA” means the Oil and Gas Authority.
Energy Act 2011
63 The Energy Act 2011 is amended as follows.
64 In section 82 (acquisition of rights to use upstream petroleum infrastructure), for “Secretary of State” (in each place) substitute “ OGA ”.
65 (1) Section 83 (power to give notice under section 82(11) on own initiative) is amended as follows.
(2) In subsection (2), for “Secretary of State may on his or her” substitute “ OGA may on its ”.
(3) In subsection (3), for “Secretary of State” (in both places) substitute “ OGA ”.
(4) In subsection (4), for “Secretary of State” substitute “ OGA ”.
(5) In subsection (5)(d), for “Secretary of State” substitute “ OGA ”.
(6) In the heading, for “Secretary of State” substitute “ OGA ”.
66 In section 84 (compulsory modification of upstream petroleum infrastructure), for “Secretary of State” (in each place) substitute “ OGA ”.
67 In section 85 (variation of notices under sections 82 and 84), for “Secretary of State” (in each place) substitute “ OGA ”.
68 In section 86 (publication of notices and variations), for “Secretary of State” (in each place) substitute “ OGA ”.
69 In section 87 (powers to require information), for “Secretary of State” (in each place, including in the heading) substitute “ OGA ”.
70 (1) Section 88 (enforcement) is amended as follows.
(2) In subsection (1), for “Secretary of State” (in each place) substitute “ OGA ”.
(3) In subsection (9), for “Secretary of State” substitute “ OGA ”.
71 In section 89 (minor, consequential and supplemental provision), for “Secretary of State” (in both places) substitute “ OGA ”.
72 In section 90(1) (interpretation), after the definition of “gas processing facility” insert—
“the OGA” means the Oil and Gas Authority;
.
Infrastructure Act 2015
73 The Infrastructure Act 2015 is amended as follows.
74 Omit section 42 (levy on holders of certain energy industry licences).
75 In section 55(4)(b) (statutory instruments subject to affirmative procedure), omit “or 42(11)”.
76 Omit Schedule 7 (the licensing levy).
PART 2 Secondary legislation
Storage of Carbon Dioxide (Licensing etc) Regulations 2010
77 The Storage of Carbon Dioxide (Licensing etc) Regulations 2010 (S.I. 2010/2221) are amended as follows.
78 In regulation 1(3) (interpretation), in the definition of “the authority”, for “Secretary of State” substitute “ Oil and Gas Authority ”.
79 In regulation 3(1)(a) (applications for a licence), for “Department of Energy and Climate Change” substitute “ Oil and Gas Authority ”.
80 In paragraph 2(3)(a) of Schedule 1 (application for consent to close storage site), for “Department of Energy and Climate Change” substitute “ Oil and Gas Authority ”.
Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015
81 In regulation 2(1) (interpretation) of the Offshore Petroleum Licensing (Offshore Safety Directive) Regulations 2015 (S.I. 2015/385), in the definition of “licensing authority”, for “Secretary of State for Energy and Climate Change” substitute “ Oil and Gas Authority ”.
Section 72
Petroleum Act 1998
1 Part 4 of the Petroleum Act 1998 (abandonment of offshore installations) is amended as follows.
2 Before section 29 insert—
Restriction on abandonment
28A (1) A person to whom a notice may be given under section 29(1) in relation to an offshore installation or submarine pipeline may not abandon, or begin or continue the decommissioning of, the installation or pipeline unless an abandonment programme approved by the Secretary of State has effect in relation to the installation or pipeline.
(2) A person who without reasonable excuse contravenes subsection (1) is guilty of an offence.
3 (1) Section 29 (preparation of programmes) is amended as follows.
(2) After subsection (1) insert—
(1A) The power to give a notice under subsection (1) is exercisable—
(a) on the Secretary of State's own motion, or
(b) at the request of any person to whom the notice may be given (whether or not the notice is given to that person).
(3) After subsection (2) insert—
(2A) A person to whom a notice under subsection (1) is given—
(a) must consult the OGA before submitting the abandonment programme to the Secretary of State, and
(b) must frame the programme so as to ensure (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) that the cost of carrying it out is kept to the minimum that is reasonably practicable in the circumstances.
(2B) When consulted under paragraph (a) of subsection (2A) the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) how to comply with paragraph (b) of that subsection.
(4) In subsection (3), after “such” insert “ other ”.
4 (1) Section 32 (approval of programmes) is amended as follows.
(2) After subsection (2) insert—
(2A) The modifications or conditions may (in particular) include modifications or conditions—
(a) which are intended (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) to reduce the total cost of carrying out the programme, provided that they do not increase the total costs to be met by any person who is to be subject to obligations under the programme or under any other abandonment programme;
(b) requiring the persons who submitted the programme to carry out and publish or make available to the Secretary of State and the OGA a review of the programme and its implementation including, where relevant, recommendations as to the contents and implementation of future abandonment programmes.
(3) At the end insert—
(6) Before reaching a decision under this section the Secretary of State must—
(a) consult the OGA, and
(b) take into account the cost of carrying out the programme that has been submitted and whether it is possible to reduce that cost by modifying the programme or making it subject to conditions.
(7) When consulted under subsection (6)(a), the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) whether section 29(2A)(b) has been complied with and, if it has not been, modifications or conditions that would enable it to be complied with.
5 In section 33 (failure to submit programme), after subsection (3) insert—
(3A) When preparing an abandonment programme under this section the Secretary of State must—
(a) consult the OGA, and
(b) frame the programme so as to ensure (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) that the cost of carrying it out is kept to the minimum that is reasonably practicable in the circumstances.
(3B) When consulted under paragraph (a) of subsection (3A), the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) how to comply with the requirement in paragraph (b) of that subsection.
6 (1) Section 34 (revision of programmes) is amended as follows.
(2) After subsection (4) insert—
(4A) A person who makes a proposal under subsection (1) that is likely to have an effect on the cost of carrying out the programme must frame it so as to ensure (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) that the cost of carrying out the programme as proposed to be altered is kept to the minimum that is reasonably practicable in the circumstances.
(4B) Where the Secretary of State makes a proposal under subsection (1)(a) the purpose of which is to reduce the total cost of carrying out a programme, the proposal may not increase the total costs to be met by any person who is to be subject to obligations under the programme or under any other abandonment programme.
(3) After subsection (7) insert—
(7A) If it appears to the Secretary of State that what is proposed under subsection (1) is likely to have an effect on the cost of carrying out the programme, the Secretary of State must, before making a determination under subsection (7)—
(a) consult the OGA, and
(b) take that effect into account.
(7B) When consulted under subsection (7A)(a) the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) whether subsection (4A) applies and, if so, whether it has been complied with.
7 After section 34 insert—
Amendment of programmes
34A (1) This section applies where an abandonment programme approved by the Secretary of State includes provision by virtue of which the programme may be amended.
(2) A person who proposes to make an amendment under such a provision that is likely to have an effect on the cost of carrying out the programme must frame the amendment so as to ensure (whether by means of the timing of the measures proposed, the inclusion of provision for collaboration with other persons, or otherwise) that the cost of carrying out the programme as proposed to be amended is kept to the minimum that is reasonably practicable in the circumstances.
(3) If it appears to the person who proposes to make the amendment that subsection (2) applies, the person must consult the OGA before making the amendment.
(4) When consulted under subsection (3) the OGA must (in particular) consider and advise on—
(a) alternatives to abandoning or decommissioning the installation or pipeline, such as re-using or preserving it, and
(b) whether subsection (2) applies and, if so, whether it has been complied with.
(5) Any person who has the function of approving amendments made under a provision mentioned in subsection (1) must, when exercising the function, take into account the effect of the proposed amendment on the cost of carrying out the programme.
8 After section 36 insert—
Reduction of costs of carrying out programmes
36A (1) This section applies where an abandonment programme approved by the Secretary of State has effect in relation to an installation or pipeline.
(2) The Secretary of State may, for the purpose of reducing the total cost of carrying out the programme, by written notice require any person who submitted the programme to take, or refrain from taking, action of a description specified in the notice.
(3) The notice may, in particular, require—
(a) changes to the times at which the measures proposed in the programme are to be carried out;
(b) the persons who are under a duty to secure that the programme is carried out to collaborate with other persons.
(4) The programme, and any condition to which it is subject, has effect subject to any notice given under this section.
(5) A notice given under this section may not increase the total costs to be met by any person who is to be subject to obligations under the programme or under any other abandonment programme.
(6) The Secretary of State may not give a notice to a person under this section without first giving the person an opportunity to make written representation as to whether the notice should be given.
(7) A person to whom a notice is given under this section who without reasonable excuse fails to comply with the notice is guilty of an offence.
(8) If a notice under this section is not complied with, the Secretary of State may—
(a) do anything necessary to give effect to the notice, and
(b) recover from the person to whom the notice was given any expenditure incurred under paragraph (a).
(9) A person liable to pay any sum to the Secretary of State by virtue of subsection (8) must also pay interest on that sum for the period beginning with the day on which the Secretary of State notified the person of the sum payable and ending with the date of payment.
(10) The rate of interest payable in accordance with subsection (9) is a rate determined by the Secretary of State as comparable with commercial rates.
9 In section 37 (default in carrying out programmes), after subsection (1) insert—
(1A) If it appears to the Secretary of State that the proposed remedial action is likely to have an effect on the cost of carrying out the programme, the Secretary of State must—
(a) consult the OGA before giving a notice under subsection (1), and
(b) take that effect into account when deciding whether to give the notice.
(1B) When consulted under subsection (1A)(a), the OGA must consider and advise on the likely effect of the proposed remedial action on the cost of carrying out the programme.
10 In section 40 (offences: penalties)—
(a) after “section” insert “ 28A, ”, and
(b) after “33,” insert “ 36A, ”.
11 (1) Section 41 (offences: general) is amended as follows.
(2) In subsection (1)—
(a) after “section” insert “ 28A, ”, and
(b) after “33,” insert “ 36A, ”.
(3) In subsection (2)—
(a) after “section” insert “ 28A, ”, and
(b) after “33,” insert “ 36A, ”.
(4) In subsection (3)—
(a) after “section” insert “ 28A, ”, and
(b) after “33,” insert “ 36A, ”.
(5) In subsection (5), after “section” insert “ 28A, 36A or ”.
12 (1) Section 42 (validity of Secretary of State's acts) is amended as follows.
(2) In subsection (2), after paragraph (e) insert—
(ea) the giving of a notice under section 36A(2);
.
(3) In subsection (5), after paragraph (e) insert—
(ea) in relation to the giving of a notice under section 36A(2), means the requirements of section 36A(6);
.
Energy Act 2008
13 (1) Section 30 of the Energy Act 2008 (abandonment of carbon storage installations) is amended as follows.
(2) In subsection (1), after “subsections” insert “ (1A), ”.
(3) After that subsection insert—
(1A) For the purposes of subsection (1), the amendments made to Part 4 of the 1998 Act by Schedule 2 to the Energy Act 2016 are to be disregarded.
(4) For subsection (4A) substitute—
(4A) The power in subsection (4)—
(a) may (in particular) be exercised to make modifications corresponding to the amendments made by Schedule 2 to the Energy Act 2016, and
(b) is subject to section 30A.