Energy Bill [HL] — Commons Amendments — 12 Apr 2016 at 19:15

Moved by Lord Bourne of Aberystwyth

1: Clause 2, page 2, line 37, at end insert-“( ) Schedule 1 to the Oil Taxation Act 1975,”

Moved by Lord Bourne of Aberystwyth

2: Clause 2, page 2, line 39, at end insert-“( ) Chapter 9 of Part 8 of the Corporation Tax Act 2010,”

Moved by Lord Bourne of Aberystwyth

2A: Line 2, leave out “Chapter 9 of”

Moved by Lord Bourne of Aberystwyth

3: Clause 8 page 5, line 29, leave out Clause 8

Moved by Lord Bourne of Aberystwyth

4: Clause 17, page 12, line 7, leave out “one year” and insert “three years”

5: Clause 17, page 12, line 12, leave out “one year” and insert “three years”

Moved by Lord Bourne of Aberystwyth

6: After Clause 79, insert the following new Clause-“Onshore wind power: closure of renewables obligation on 31 March 2016(1) In Part 1 of the Electricity Act 1989 (electricity supply), after section 32LB insert-“32LC Onshore wind generating stations: closure of renewables obligation(1) No renewables obligation certificates are to be issued under a renewables obligation order in respect of electricity generated after 31 March 2016 by an onshore wind generating station.(2) Subsection (1) does not apply to electricity generated in the circumstances set out in any one or more of sections 32LD to 32LL.(3) In this section and sections 32LD to 32LL “onshore wind generating station” means a generating station that- (a) generates electricity from wind, and(b) is situated in England, Wales or Scotland, but not in waters in or adjacent to England, Wales or Scotland up to the seaward limits of the territorial sea.(4) The reference in subsection (1) to a renewables obligation order is to any renewables obligation order made under section 32 (whenever made, and whether or not made by the Secretary of State).(5) Power to make provision in a renewables obligation order or a renewables obligation closure order (and any provision contained in such an order) is subject to subsection (1) and sections 32LD to 32LL.(6) This section is not otherwise to be taken as affecting power to make provision in a renewables obligation order or renewables obligation closure order.”(2) The Renewables Obligation Closure Order 2014 (S.I. 2014/2388) is amended as follows.(3) In article 2(1) (interpretation), after the definition of “network operator” insert-““onshore wind generating station” means a generating station that-(a) generates electricity from wind, and(b) is situated in England, Wales or Scotland, but not in waters in or adjacent to England, Wales or Scotland up to the seaward limits of the territorial sea;”.(4) In article 3 (closure of renewables obligation on 31st March 2017)-(a) in the heading, after “solar pv stations” insert “or onshore wind generating stations”;(b) in paragraph (1), after “solar pv station” insert “or an onshore wind generating station”.”

Moved by Lord Bourne of Aberystwyth

6A: Line 9, leave out “31 March 2016” and insert “the onshore wind closure date”

6B: Line 12, after “32LL” insert “-“the onshore wind closure date” means the date on which the Energy Act 2016 is passed;”

Moved by Lord Bourne of Aberystwyth

7: Insert the following new Clause-“Onshore wind power: circumstances in which certificates may be issued after 31 March 2016(1) Part 1 of the Electricity Act 1989 (electricity supply) is amended as follows. (2) After section 32LC (inserted by section [Onshore wind power: closure of renewables obligation on 31 March 2016] of this Act) insert-“32LD Onshore wind generating stations accredited, or additional capacity added, on or before 31 March 2016The 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 31 March 2016, 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 31 March 2016.32LE Onshore wind generating stations accredited, or additional capacity added, between 1 April 2016 and 31 March 2017: grid or radar delay condition metThe 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 2016 and ending with 31 March 2017, 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 31 March 2016,(ii) in the Authority’s view, the additional capacity first formed part of the station during the period beginning with 1 April 2016 and ending with 31 March 2017, and(iii) the grid or radar delay condition is met in respect of the additional capacity.32LF Onshore wind generating stations accredited, or additional capacity added, on or before 31 March 2017: approved development condition metThe 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 31 March 2016,(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.32LG Onshore wind generating stations accredited, or additional capacity added, between 1 April 2017 and 31 March 2018: grid or radar delay condition metThe 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 31 March 2016,(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. 32LH Onshore wind generating stations accredited, or additional capacity added, between 1 April 2017 and 31 December 2017: investment freezing condition metThe 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 December 2017, 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 31 March 2016,(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 December 2017, and(iii) both the approved development condition and the investment freezing condition are met in respect of the additional capacity.32LI Onshore wind generating stations accredited, or additional capacity added, between 1 January 2018 and 31 December 2018: grid or radar delay condition metThe 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 January 2018 and ending with 31 December 2018,(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 31 March 2016,(ii) in the Authority’s view, the additional capacity first formed part of the station during the period beginning with 1 January 2018 and ending with 31 December 2018,(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.32LJ The approved development condition(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 1997Act 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-(a) consent under section 36 of this Act, (b) 1990 Act permission,(c) 1997 Act permission, or (d) development consent under the Planning Act 2008. 32LK The investment freezing condition(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.32LL The grid or radar delay condition(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), 31 March 2016;(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 December 2017.”(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;”;““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;”.”

Moved by Lord Bourne of Aberystwyth

7A: Line 8, leave out “31 March 2016” and insert “the onshore wind closure date”

7B: Line 11, leave out “31 March 2016” and insert “the onshore wind closure date”

7C: Line 15, leave out “31 March 2016” and insert “the onshore wind closure date”

7D: Line 18, leave out “between 1 April 2016 and 31 March 2017” and insert “in the year after the onshore wind closure date”

7E: Line 24, leave out “with 1 April 2016 and ending with 31 March 2017” and insert “immediately after the onshore wind closure date and ending with the first anniversary of the onshore wind closure date”

7F: Line 30, leave out “31 March 2016” and insert “the onshore wind closure date”

7G: Line 34, leave out “with 1 April 2016 and ending with 31 March 2017” and insert “immediately after the onshore wind closure date and ending with the first anniversary of the onshore wind closure date”

7H: Line 50, leave out “31 March 2016” and insert “the onshore wind closure date”

7J: Line 71, leave out “31 March 2016” and insert “the onshore wind closure date”

7K: Line 82, leave out “December 2017” and insert “January 2018”

7L: Line 88, leave out “December 2017” and insert “January 2018”

7M: Line 95, leave out “31 March 2016” and insert “the onshore wind closure date”

7N: Line 100, leave out “December 2017” and insert “January 2018”

17P: Line 105, leave out “January 2018 and 31 December 2018” and insert “February2018 and 31 January 2019”

7Q: Line 111, leave out “January 2018 and ending with 31 December 2018” and insert“February 2018 and ending with 31 January 2019”

7R: Line 120, leave out “31 March 2016” and insert “the onshore wind closure date”

7S: Line 120, leave out “31 March 2016” and insert “the onshore wind closure date”

Tabled by Lord Hain

7T: Line 145, after “2015,” insert “regardless of whether it was varied after that date by any planning permission, consent or development consent issued under section 73 of the Town and Country Planning Act 1990 (determination of applications to develop land without compliance with conditions previously attached), section 42 of the Town and Country Planning (Scotland) Act 1997 (determination of applications to develop land without compliance with conditions previously attached), section 36C of this Act (variation of consents under section 36) or under the Planning Act 2008,”

Moved by Lord Wallace of Tankerness

7X: Leave out lines 176 to 185 and insert- “(d) evidence that-(i) an application for 1990 Act permission or 1997 Act permission was made before 18 June 2015 for the station or for additional capacity, (ii) the relevant planning authority resolved to grant 1990 Act permission or 1997 Act permission on or before 18 June 2015, and(iii) planning permission was granted after 18 June 2015, and(iv) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached, or(e) 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, except than an extended period has been agreed in writing between the applicant and planning authority for the purposes of section 78(2) of the 1990 Act or section 47(2) of the 1997 Act,(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) planning permission was granted after 18 June 2015, 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(f) evidence that-(i) an application for consent for the station or additional capacity was made under section 36 and the consultation period prescribed by regulations made under paragraph 2(3) of Schedule 8 had expired prior to 18 June 2015,(ii) during the consultation period, the relevant planning authority had notified the Secretary of State that they had objected to the application and their objection had not been withdrawn,(iii) the Secretary of State caused a public inquiry to be held,(iv) following consideration of the objection and the report of the person who held the inquiry, the Secretary of State granted consent and deemed planning permission after 18 June 2015, and(v) any conditions as to the time period within which the development relates must be begun have not been breached, or(g) evidence that-(i) an application for 1990 Act permission or 1997 Act permission was made on or before 18 June 2014 for the station or additional capacity,(ii) planning permission was granted after 18 June 2015, and (iii) any conditions as to the time period within which the development to which the permission relates must be begun have not been breached, or(h) evidence that on or before 18 June 2015 the relevant planning authority made a decision to grant planning permission for the station or additional capacity, or made a decision to grant or to intend to grant planning permission for the station or additional capacity, subject to an agreement under section 106 of the 1990 Act (planning obligations) or section 75 of the 1997 Act (agreements regulating development or use of land); and such an agreement is concluded before the onshore wind closure date, or(i) 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);(b) a copy of- (i) an application for an offer to carry out grid works in relation to the station or additional capacity submitted to a licensed network operator on or before 18 June 2015; and(ii) an offer from a licenced network operator made after 18 June 2015 to carry out grid works in relation to the station or additional capacity and evidence that the offer was accepted after 18 June 2015 (whether or not the acceptance was subject to any conditions or other terms); or(c) evidence that planning permission for the station or additional capacity was refused on or before 18 June 2015 and an appeal was determined as at 18 June 2015;(d) a copy of an application for an offer to carry out grid works in relation to the station or additional capacity submitted to a licensed network operator on or after 18 June 2015; and(e) an offer from a licensed network operator made after 18 June 2015 to carry out grid works in relation to the station or additional capacity and evidence that the offer was accepted before 31 December 2015 (whether or not the acceptance was subject to any conditions or other terms),”

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