Energy Act 2016

Column 1	Column 2
A Minister of the Crown	Chapters 2 to 5
Her Majesty's Revenue and Customs	Chapters 2 to 4
The Competition and Markets Authority	Chapters 2 to 5
The Scottish Ministers	Chapter 3
The Welsh Ministers	Chapter 3
A Northern Ireland Department	Chapter 3
The Coal Authority	Chapter 3
The Office for Budget Responsibility	Chapter 3
An enforcing authority	Chapters 2 to 5
The competent authority under article 8 of the Offshore Safety Directive	Chapters 2 to 5
The Statistics Board	Chapters 2 to 5

• (2) In the table—

• “enforcing authority” has the same meaning as in Part 1 of the Health and Safety at Work etc Act 1974 (see section 18(7)(a) of that Act);

• “Minister of the Crown” has the same meaning as in the Ministers of the Crown Act 1975;

• “Offshore Safety Directive” means Directive 2013/30/EU of the European Parliament and of the Council of 12 June 2013 on safety of offshore oil and gas operations.

• (3) Section 61 does not prohibit a disclosure of protected material by the OGA which—

• (a) is a disclosure of protected material obtained by it under Chapter 3 (information and samples),

• (b) is made to the Natural Environment Research Council, or any other similar body carrying on geological activities, and

• (c) is made for the purpose of enabling the body to prepare and publish reports and surveys of a general nature using information derived from the protected material.

• (4) A person to whom protected material is disclosed by virtue of subsection (1) or (3) may use the protected material only for the purpose mentioned in subsection (1)(b) or (3)(c) (as the case may be).

• (5) Section 61 does not prohibit such a person from disclosing the protected material so far as necessary for that purpose.

• (6) The Secretary of State may by regulations amend the table in subsection (1)—

• (a) to remove a person from column 1,

• (b) to add to column 1 a person to whom subsection (7) applies, or

• (c) to add, remove or change entries in column 2.

• (7) This subsection applies to—

• (a) persons holding office under the Crown;

• (b) persons in the service or employment of the Crown;

• (c) persons acting on behalf of the Crown;

• (d) government departments;

• (e) publicly owned companies as defined in section 6 of the Freedom of Information Act 2000.

Disclosure required for returns and reports prepared by OGA

64

• (1) Section 61 does not prohibit the OGA from using protected material obtained by the OGA under Chapter 3 (information and samples) for the purpose of—

• (a) preparing such returns and reports as may be required under obligations imposed by or under any Act;

• (b) preparing and publishing reports and surveys of a general nature using information derived from the protected material.

• (2) Section 61 does not prohibit the OGA from disclosing protected material so far as necessary for those purposes.

Disclosure in exercise of certain OGA powers

65

• (1) Section 61 does not prohibit a disclosure of protected material if—

• (a) the protected material was obtained by the OGA under Chapter 2 (disputes), and

• (b) the disclosure is made in the exercise of the OGA's powers under section 23(6) (publication of recommendations for resolving disputes).

• (2) Section 61 does not prohibit a disclosure of protected material if it is made in the exercise of the OGA's powers under section 53 (publication of details of sanctions).

• (3) Section 61 does not prohibit a disclosure of protected material which is permitted by section 75 (international oil and gas agreements: information exchange).

Disclosure after specified period

66

• (1) Section 61 does not prohibit protected material obtained by the OGA under Chapter 3 (information and samples) from being—

• (a) published, or

• (b) made available to the public (in a case where the protected material includes samples),

by the OGA or a subsequent holder at such time as may be specified in regulations made by the Secretary of State.

• (2) Regulations under subsection (1) may include provision permitting protected material to be published, or made available to the public, immediately after it is provided to a person.

• (3) Before making regulations under subsection (1), the Secretary of State must consult such persons as the Secretary of State considers appropriate.

• (4) Subsection (3) does not apply if the Secretary of State is satisfied that consultation is unnecessary having regard to consultation carried out by the OGA in relation to what time should be specified in regulations under subsection (1).

• (5) In determining the time to be specified in respect of protected material in regulations under subsection (1), the Secretary of State must have regard to the following factors—

• (a) whether the specified time will allow owners of protected material a reasonable period of time to satisfy the main purpose for which they acquired or created the material;

• (b) any potential benefits to the petroleum industry of protected material being published or made available at the specified time;

• (c) any potential risk that the specified time may discourage persons from acquiring or creating petroleum-related information or petroleum-related samples (as defined in section 27);

• (d) any other factors the Secretary of State considers relevant.

• (6) In balancing the factors mentioned in subsection (5)(a) to (d), the Secretary of State must take into account the principal objective.

• (7) For the purposes of subsection (5)(a), the owner of protected material is the person by whom, or on whose behalf, the protected material was provided to the OGA under Chapter 3 (information and samples).

Disclosure with appropriate consent

67

• (1) Section 61 does not prohibit a disclosure of protected material if it is made with the appropriate consent.

• (2) For this purpose a disclosure is made with the appropriate consent if—

• (a) in the case of disclosure by the OGA, the original owner consents to the disclosure;

• (b) in the case of disclosure by a subsequent holder—

• (i) the OGA consents to the disclosure, and

• (ii) in a case where the protected material in question was provided to the OGA under this Part, the OGA confirms that the original owner of the material also consents to the disclosure.

Disclosure required by legislation

68

Section 61 does not prohibit a disclosure of protected material required by virtue of an obligation imposed by or under any Act.

Disclosure for purpose of proceedings

69

• (1) Section 61 does not prohibit a disclosure of protected material by the OGA for the purposes of, or in connection with—

• (a) civil proceedings, or

• (b) arbitration proceedings.

• (2) Section 61 does not prohibit a disclosure of protected material by the OGA for the purposes of, or in connection with—

• (a) the investigation or prosecution of criminal offences, or

• (b) the prevention of criminal activity.

PART 3 — Infrastructure and Information

Rights to use upstream petroleum infrastructure

Requirements to provide information

70

• (1) The Energy Act 2011 is amended as follows.

• (2) In section 87 (powers to require information), after subsection (5) insert—

(5A) A notice under subsection (1), (2) or (3) that imposes a requirement on a person must specify when the requirement is to be complied with.

• (3) After that section insert—

(87A) (1) Any person on whom a requirement is imposed by a notice under section 87(1), (2) or (3) may appeal against the notice to the Tribunal on the grounds that— (a) the information required by the notice is not relevant to the exercise by the OGA of its functions under this Chapter, or (b) the length of time given to comply with the notice is unreasonable. (2) On an appeal under this section the Tribunal may— (a) confirm, vary or cancel the notice, or (b) remit the matter under appeal to the OGA for reconsideration with such directions (if any) as the Tribunal considers appropriate. (3) In this section “the Tribunal” means the First-tier Tribunal. (87B) (1) A requirement imposed by a notice under section 87(1), (2) or (3) is 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 a petroleum-related requirement. (2) But the OGA may not give a revocation notice or an operator removal notice under that Chapter by virtue of this section.

Applications to use infrastructure: changes of applicant and owner

71

• (1) The Energy Act 2011 is amended as follows.

• (2) In section 82(13) (contents of notice securing rights to use infrastructure), omit paragraph (b).

• (3) In section 87(6) (circumstances in which information may be disclosed)—

• (a) omit the “or” at the end of paragraph (a), and

• (b) after paragraph (b) insert

or (c) the disclosure is made under section 89A or 89B.

• (4) After section 89 insert—

(89A) (1) This section applies where— (a) there is an assignment or assignation of an application made under section 82 from one person (“A”) to another (“B”), and (b) the following are notified of the assignment or assignation— (i) the owner of the pipeline or facility that is the subject of the application, and (ii) the OGA. (2) A notice under subsection (1)(b) must— (a) be in writing, and (b) specify the date of the assignment or assignation. (3) For the purposes of this Chapter, anything done (or treated as done) by or in relation to A in connection with the application is treated after the assignment or assignation as having been done by or in relation to B. This subsection is subject to subsections (4) and (5) and does not apply for the purposes of subsections (6) and (7). (4) Any provision of this Chapter that requires the OGA to give the applicant an opportunity to be heard has effect after the assignment or assignation as requiring the OGA to give B an opportunity to be heard (whether or not the applicant was heard under that provision before the assignment or assignation). (5) Subsection (3) does not apply in relation to any notice given under section 87 before the assignment or assignation (and, accordingly, the person to whom the notice was given remains under an obligation to comply with it). (6) Any information relating to the application obtained by the OGA before the assignment or assignation from any person who at the time was the applicant may be disclosed to B. (7) Before disclosing any such information to B, the OGA must remove any information which the OGA considers may prejudice the commercial interests of the person from whom the information was obtained. (89B) (1) This section applies where the ownership of a pipeline or facility that is the subject of an application under section 82, or to which a notice under subsection (11) of that section relates, is transferred from one person (“C”) to another (“D”). (2) For the purposes of this Chapter— (a) anything done (or treated as done) by or in relation to C in connection with C's ownership of the pipeline or facility is treated after the transfer as having been done by or in relation to D, and (b) any obligations imposed or rights conferred (or treated as imposed or conferred) by or under this Chapter on C in connection with C's ownership of the pipeline or facility are treated after the transfer as imposed or conferred on D. This subsection is subject to subsections (3) and (4) and does not apply for the purposes of subsections (5) and (6). (3) Any provision of this Chapter that requires the OGA to give the owner of the pipeline or facility an opportunity to be heard has effect after the transfer as requiring the OGA to give D an opportunity to be heard (whether or not the owner was heard under that provision before the transfer). (4) Subsection (2) does not affect the obligation to comply with any notice given under section 87 before the transfer (and, accordingly, the person to whom the notice was given remains under an obligation to comply with it). (5) Any information relating to the application obtained by the OGA before the transfer from any person who at the time was the owner may be disclosed to D. (6) Before disclosing any such information to D, the OGA must remove any information which the OGA considers may prejudice the commercial interests of the person from whom the information was obtained.

Decommissioning

Abandonment of offshore installations

72

Schedule 2 makes provision about the abandonment of offshore installations.

Duty to act in accordance with strategy: decommissioning and alternatives

73

• (1) Part 1A of the Petroleum Act 1998 (maximising economic recovery of UK petroleum) is amended as follows.

• (2) In section 9A (the principal objective and the strategy), in subsection (1)(b), after sub-paragraph (iv) insert—

(v) owners of relevant offshore installations.

• (3) In section 9C (carrying out of certain petroleum industry activities)—

• (a) omit subsection (3), and

• (b) after subsection (4) insert—

(5) A person who is the owner of— (a) a relevant offshore installation, or (b) upstream petroleum infrastructure, must act in accordance with the current strategy or strategies when planning and carrying out the activities mentioned in subsection (6). (6) Those activities are— (a) the person's activities as the owner of the installation or infrastructure (including the development, construction, deployment and use of the infrastructure or installation); (b) the abandonment or decommissioning of the installation or infrastructure. (7) For the purposes of subsection (5), planning the activities mentioned in subsection (6)(b) includes the preliminary stage of— (a) deciding whether or when to proceed with the proposed abandonment or decommissioning, and (b) considering alternative measures to abandonment or decommissioning such as re-use or preservation.

• (4) After section 9H insert—

(9HA) (1) For the purposes of this Part an offshore installation is a relevant offshore installation if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got). (2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath— (a) the territorial sea adjacent to Great Britain, or (b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964. (3) In this Part “owner”, in relation to a relevant offshore installation, means— (a) a person in whom the installation is vested, and (b) a lessee and any person occupying or controlling the installation.

• (5) In section 9I (other definitions), at the appropriate place insert—

“offshore installation” has the same meaning as in Part 4 (see section 44);

;

“owner”, in relation to a relevant offshore installation, has the meaning given in section 9HA;

;

“relevant offshore installation” has the meaning given in section 9HA;

;

“submarine pipeline” has the meaning given in section 45;

.

Northern Ireland

Part 1A of the Petroleum Act 1998: Northern Ireland

74

• (1) Part 1A of the Petroleum Act 1998 (maximising economic recovery of UK petroleum), as amended by this Act, extends to Northern Ireland (as well as to England and Wales and Scotland).

• (2) In that Act, for section 9H substitute—

(9H) (1) In this Part “upstream petroleum infrastructure” means anything that for the purposes of section 82(1) of the Energy Act 2011 is— (a) a relevant upstream petroleum pipeline, (b) a relevant oil processing facility, or (c) a relevant gas processing facility, if and in so far as it is used in relation to petroleum within subsection (2) (including such petroleum after it has been got). (2) Petroleum is within this subsection if it is petroleum which for the time being exists in its natural condition in strata beneath— (a) the territorial sea adjacent to Great Britain, or (b) the sea in any area designated under section 1(7) of the Continental Shelf Act 1964. (3) In this Part “owner”, in relation to upstream petroleum infrastructure, means— (a) a person in whom the pipeline or facility is vested; (b) a lessee and any person occupying or controlling the pipeline or facility; and (c) any person who has the right to have things conveyed by the pipeline or processed by the facility.

International agreements

International oil and gas agreements: information exchange

75

• (1) This section applies where—

• (a) there is a treaty or agreement in force between the government of the United Kingdom and the government of a territory outside the United Kingdom (“the overseas territory”) concerning cooperation in relation to oil and gas activities, and

• (b) the treaty or agreement includes arrangements for the exchange of information between the two governments (“information exchange arrangements”).

• (2) If it appears to the Secretary of State that adequate safeguards are in place, information held by the Secretary of State may be disclosed so far as the Secretary of State considers necessary for the purpose of giving effect to the treaty or agreement in question.

• (3) If it appears to the OGA that adequate safeguards are in place, information held by the OGA may be disclosed so far as the OGA considers necessary for the purpose of giving effect to the treaty or agreement in question.

• (4) For the purposes of this section adequate safeguards are in place if the information exchange arrangements and the law in force in the overseas territory are such as to ensure that information disclosed to the government of the overseas territory under this section may be disclosed by that government only—

• (a) with the consent of the government of the United Kingdom, or

• (b) so far as necessary for the purpose of preparing and publishing reports of a general nature.

• (5) References in this section to the OGA are to the OGA acting as a representative of the government of the United Kingdom for the purposes of the agreement with the overseas territory.

PART 4 — Fees

Powers to charge fees

76

• (1) In Part 4A of the Energy Act 2008 (works detrimental to navigation: oil, gas, carbon dioxide and pipelines), before section 82P insert—

(82OA) (1) The Secretary of State may charge fees in connection with carrying out functions under this Part. (2) The fees are to be determined by or in accordance with regulations made by the Secretary of State. (3) The regulations may authorise the fees to be determined by or in accordance with a scheme made by the Secretary of State.

• (2) In Part 4 of the Marine and Coastal Access Act 2009 (marine licences), after section 110 insert—

(110A) (1) The Secretary of State may charge fees in connection with carrying out functions under this Part, so far as relating to oil and gas activities for which a marine licence is needed. (2) The fees are to be determined by or in accordance with regulations made by the Secretary of State. (3) The regulations may authorise the fees to be determined by or in accordance with a scheme made by the Secretary of State. (4) If the regulations provide for determining fees in connection with functions of the Secretary of State under section 67, the fees are to be those provided for by the regulations, and not those (if any) provided for by regulations under section 67(2) or determined under section 67(5). (5) “Oil and gas activities” are activities which relate to operations regulated under any of the provisions listed in subsection (6). (6) The provisions are— (a) section 2 of the Petroleum (Production) Act 1934 (searching and boring for, and getting, petroleum); (b) Part 1 of the Petroleum Act 1998 (searching and boring for, and getting, petroleum); (c) Part 3 of the Petroleum Act 1998 (submarine pipelines); (d) Part 4 of the Petroleum Act 1998 (abandonment of offshore installations); (e) Part 1 of the Energy Act 2008 (gas importation and storage); (f) Part 4 of the Energy Act 2008 (oil and gas). (7) See Chapter 1 for when a marine licence is needed for activities.

Validation of fees charged

77

• (1) A fee charged by the Secretary of State at any time before the date on which this Act is passed (“the relevant time”) is taken to have been lawfully charged if the condition in subsection (2) is met.

• (2) The condition is that the fee was charged in connection with carrying out functions under any of the provisions listed in subsection (3), as the provision in question had effect at the relevant time.

• (3) The provisions are—

• (a) Part 4A of the Energy Act 2008 (works detrimental to navigation: oil, gas, carbon dioxide and pipelines);

• (b) Part 4 of the Marine and Coastal Access Act 2009 (marine licences), so far as relating to oil and gas activities for which a marine licence under that Part is needed;

• (c) the Merchant Shipping (Oil Pollution Preparedness, Response and Co-operation Convention) Regulations 1998 (S.I. 1998/1056);

• (d) the Offshore Petroleum Production and Pipe-lines (Assessment of Environmental Effects) Regulations 1999 (S.I. 1999/360);

• (e) the Offshore Petroleum Activities (Conservation of Habitats) Regulations 2001 (S.I. 2001/1754).

• (4) “Oil and gas activities” are activities which relate to operations regulated under any of the provisions listed in subsection (5).

• (5) The provisions are—

• (a) section 2 of the Petroleum (Production) Act 1934 (searching and boring for, and getting, petroleum);

• (b) Part 1 of the Petroleum Act 1998 (searching and boring for, and getting, petroleum);

• (c) Part 3 of the Petroleum Act 1998 (submarine pipelines);

• (d) Part 4 of the Petroleum Act 1998 (abandonment of offshore installations);

• (e) Part 1 of the Energy Act 2008 (gas importation and storage);

• (f) Part 4 of the Energy Act 2008 (oil and gas).

• (6) See Chapter 1 of Part 4 of the Marine and Coastal Access Act 2009 for when a marine licence under that Part is needed for activities.

PART 5 — Wind power

Consent under Electricity Act 1989

Onshore wind generating stations in England and Wales

78

In section 36 of the Electricity Act 1989 (consent of Secretary of State required for construction or extension of generating stations), after subsection (1C) insert—

(1D) Subsection (1) does not apply to an English or Welsh onshore wind generating station. (1E) “English or Welsh onshore wind generating station” means a generating station that— (a) generates electricity from wind, and (b) is situated in England or Wales, but not in waters in or adjacent to England or Wales up to the seaward limits of the territorial sea.

Renewables obligation

Onshore wind power: closure of renewables obligation

79

• (1) In Part 1 of the Electricity Act 1989 (electricity supply), after section 32LB insert—

(32LC) (1) No renewables obligation certificates are to be issued under a renewables obligation order in respect of electricity generated after the onshore wind closure date 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— - “the onshore wind closure date” means the date on which the Energy Act 2016 is passed; - “onshore wind generating station” means a generating station that— 1. generates electricity from wind, and 2. 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 ”.

Onshore wind power: circumstances in which certificates may be issued after the onshore wind closure date

80

• (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—

(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. (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. (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. (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. (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. (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. (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— 1. consent under section 36 of this Act, 2. 1990 Act permission, 3. 1997 Act permission, or 4. development consent under the Planning Act 2008. (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. (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;

.

Onshore wind power: use of Northern Ireland certificates

81

• (1) The Electricity Act 1989 is amended as follows.

• (2) Before section 32M insert—

(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— 1. generates electricity from wind, and 2. 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 ”.

PART 6 — Final Provisions

Regulations

82

• (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.

Regulations and orders: disapplication of requirements to consult the OGA

83

• (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.

Commencement

84

• (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.

Short title and extent

85

• (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.

SCHEDULE 1

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—

(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. (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—

(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 ”.

SCHEDULE 2

Petroleum Act 1998

1

Part 4 of the Petroleum Act 1998 (abandonment of offshore installations) is amended as follows.

2

Before section 29 insert—

(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—

(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—

(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—