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The Green Gas Support Scheme Regulations 2021

Type Statutory-Instrument

Publication 2021-11-29

Last updated 2025-11-01

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

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Made: 29th November 2021

Coming into force: 30th November 2021

In accordance with section 148A(1)(a) of the Government of Wales Act 2006[^f00003], the Secretary of State has consulted the Welsh Ministers.

PART 1 — Introductory

Citation, commencement and extent

1

(1) These Regulations may be cited as the Green Gas Support Scheme Regulations 2021 and come into force on the day after the day on which they are made.

(2) These Regulations extend to England and Wales and Scotland.

Interpretation

2

(1) In these Regulations—

“acceptable letter of credit” has the meaning given in regulation 43(3);

“additional biomethane[^f00004]” has the meaning given in regulation 8(7)(a);

“additional credit cover” has the meaning given in regulation 52(1)(c);

“air source heat pump” means a plant which generates heat using a thermodynamic cycle by transferring energy stored in the form of heat in the ambient air and uses that energy to heat a liquid;

“anaerobic digester” means a plant which produces biogas[^f00005] by anaerobic digestion;

“anaerobic digestion” means the bacterial fermentation of biomass[^f00006] in the absence of oxygen;

“applicant” means a person who makes an application for a tariff guarantee, or an application for registration under regulation 5;

“approved sustainable fuel” means solid biomass which is listed under a scheme approved by the Secretary of State in accordance with Schedule 2;

“backdated levy payment” has the meaning given in regulation 49(2);

“central register” has the meaning given in regulation 6(1);

“certified biomethane” has the meaning given in regulation 38(15)(c);

“commissioned”, in relation to equipment used to produce biomethane for injection, means—the completion of such procedures and tests as constitute, at the time they are undertaken, the usual industry standards and practices for commissioning that type of equipment in order to demonstrate that it is capable of producing biomethane for injection, andevery anaerobic digester which is part of that equipment has produced biogas which has been upgraded to biomethane and injected;

“connected person”, in relation to an applicant, a participant, or a licensed gas supplier, means any person connected to them within the meaning of section 1122 of the Corporation Tax Act 2010[^f00007];

“consumer prices index” means—the consumer prices index calculated and published by the Statistics Board[^f00008], orwhere the index is not published for a year, any substituted index or figures published by the Statistics Board;

“credit cover requirement” has the meaning given in regulation 41;

“current information” means information which is no more than five working days out of date;

“date of registration”, in relation to a producer of biomethane, means the first day which falls on or after the date of receipt by the Authority[^f00009] of the application for registration on which the application was, in the Authority’s opinion, properly made;

“de minimis amount” has the meaning given in regulation 43A(1);

“digestate” means any substance, except biogas, which is generated from an anaerobic digester;

“eligible biomethane” has the meaning given in regulation 27(2);

“eligible heat pump” has the meaning given in regulation 8A(8);

“energy content” means the energy contained within a substance (whether measured by a calorimeter or determined in some other way) expressed in terms of the substance’s gross calorific value within the meaning of BS 7420:1991 (Guide for the determination of calorific values of solid, liquid and gaseous fuels (including definitions))[^f00010];

“energy crop” has the meaning given in regulation 12(10)(b);

“enforcement notice” has the meaning given in regulation 53(1);

“environmental permit” means a permit issued in accordance with the provisions of the Environmental Permitting (England and Wales) Regulations 2016[^f00011], or the Pollution Prevention and Control (Scotland) Regulations 2012[^f00012];

“equipment used to produce biomethane” means the equipment integral to the production of biomethane for injection, including any anaerobic digester;

“exempt supplier” has the meaning given in regulation 38(10)(c)(i);

“existing credit cover” has the meaning given in regulation 42(6);

“final quarterly levy payment” has the meaning given in regulation 51(7)(a);

“financial penalty” means a financial penalty imposed in accordance with regulation 57;

“financial year” means a 12 month period beginning with 1st April and ending with the following 31st March;

“gas transporter” means the holder of a licence granted under section 7 of the Gas Act 1986[^f00013];

“ground source heat pump” means a plant (which may or may not use a shared ground loop system) which generates heat using a thermodynamic cycle by transferring energy stored in the form of heat from the ground, including water in the ground or surface water or both, and uses that energy to heat a liquid;

“guaranteed tariff” has the meaning given in regulation 4(9);

“GWh” means gigawatt hours;

“initial tariff” means the tiered tariff calculated in accordance with regulation 22;

“injection” means the introduction of gas into a pipe-line system operated by a gas transporter, and “injected” is to be construed accordingly;

“in lieu amount” has the meaning given in regulation 51(7C)(b);

“kWh” means kilowatt hours;

“kWhth” means kilowatt hours thermal;

“levy credit payment” has the meaning given in regulation 42(2)(a)(iii);

“levy rate” has the meaning given in regulation 39(1);

“licensed gas supplier” means the holder of a licence under section 7A(1) of the Gas Act 1986[^f00014];

“local and national laws” means laws applying in the locality in which the site is situated, whether made at a local or national level;

“maximum additional capacity” has the meaning given in regulation 8(7)(b);

“maximum initial capacity” has the meaning given in regulation 4(17);

“meter point” means a supply meter point within the meaning given in the Uniform Network Code (as defined in section 36C(7) of the Gas Act 1986)[^f00015];

“meter point data”, in relation to a scheme supplier, means the number of meter points served by that scheme supplier on any given day;

“meter readings” has the meaning given in regulation 9(10)(c);

“mutualisation payment” has the meaning given in regulation 56(5)(b)(i);

“mutualisation process” has the meaning given in regulation 56(1);

“network entry agreement” means an agreement between a person who injects biomethane and a gas transporter under which the person who injects biomethane is entitled to inject biomethane into the pipe-line system operated by that gas transporter;

“ongoing participant obligation” means an obligation specified in Part 3;

“original biomethane” means biomethane which is produced by a relevant producer (within the meaning given in regulation 17) and which falls within that producer’s maximum initial capacity;

“participant” means a producer of biomethane who is registered on the central register in relation to the production of biomethane using the equipment used to produce biomethane specified in the register, and references to a “participant” are to that person’s registration as a participant in relation to that equipment used to produce biomethane;

“penalty notice” has the meaning given in regulation 57(1);

“periodic support payments” has the meaning given in regulation 18;

“pipe-line system” has the meaning given in section 5(10) of the Gas Act 1986[^f00016];

“producer of biomethane” means a producer of biomethane for injection by anaerobic digestion;

“properly made”—in the case of an application for a tariff guarantee made under regulation 4, means an application which provides the information required by regulation 4(4),in relation to an application for registration made under regulation 5, means an application which provides the information required by or under regulation 5(2), (4) and (5), andin relation to an application to be registered in respect of additional biomethane made under regulation 8, means an application which provides such of the information referred to in regulation 5(4) and (5) as the Authority may require;

“provisionally exempt supplier” has the meaning given in regulation 38(6);

“quarter” means—the period beginning with 30th November 2021 and ending with 31st December 2021,the period beginning with 1st January 2022 and ending with 31st March 2022,a period of three months beginning with 1st January, 1st April, 1st July, or 1st October in any scheme year beginning with or after 1st April 2022;

“quarterly levy payment” has the meaning given in regulation 40;

“relevant tariff” means the tariff applicable to the production of biomethane;

“the Scheme” has the meaning given in regulation 3;

“scheme schedule” has the meaning given in regulation 63(2);

“scheme supplier” has the meaning given in regulation 38;

“scheme year” means—the period beginning with 30th November 2021 and ending with 31st March 2022 (“the first scheme year”),the financial year beginning with 1st April in any of the years 2022 to 2042;

“shared ground loop system” means a system in which a ground loop provides heat energy through a hydraulic connection to two or more ground source heat pumps;

“subsequent tariff” means the tiered tariff calculated in accordance with regulation 25;

“tariff” means the payment rate per kWh in respect of biomethane injection;

“tariff end date” means the last day of the tariff lifetime;

“tariff guarantee” means a guarantee granted in accordance with regulation 4(6);

“tariff lifetime”, in relation to a participant, means the period for which that person is eligible to receive periodic support payments;

“tariff start date”—in relation to original biomethane in respect of which a participant is registered, means the date of registration for that biomethane,in relation to additional biomethane in respect of which a participant is registered, means the date of registration for that additional biomethane;

“tiered tariff” means a tariff for which different rates are specified for numbered tiers;

“total mutualisation amount” has the meaning given in regulation 56(4);

“waste” has the meaning given in section 75(2) of the Environmental Protection Act 1990[^f00017];

“waste management licence” means a licence issued in accordance with the Waste Management Licensing (Scotland) Regulations 2011[^f00018];

“working day” means any day other than—a Saturday, Sunday, Good Friday, or Christmas Day, ora day which is a bank holiday in England, Wales or Scotland under section 1 of the Banking and Financial Dealings Act 1971[^f00019].

(2) Except in regulation 4 (application for tariff guarantee and budget allocation) and 28 (reconciliation payments), where these Regulations provide for a figure to be rounded, that figure must be rounded to the nearest hundredth of a penny, with any two hundredth of a penny being rounded upwards.

The Green Gas Support Scheme

3

A scheme to be known as the Green Gas Support Scheme, which is a scheme to facilitate and encourage the production of biomethane for injection by anaerobic digestion (“the Scheme”)[^f00020], is established in accordance with these Regulations.

PART 2 — Registration of participants and tariff guarantees

Application for tariff guarantee and budget allocation

4

(1) Subject to paragraph (2), a person who produces, or proposes to produce, biomethane for injection by anaerobic digestion may make an application for a tariff guarantee in respect of the production of that biomethane, in accordance with this regulation.

(2) A person may not make an application for a tariff guarantee under paragraph (1) in respect of the production of biomethane—

(a) if the date on which they expect the injection of that biomethane to commence is later than 31st March 2028, or

(b) using equipment used to produce biomethane—

(i) where a person is, or has been, registered under regulation 25 of the Renewable Heat Incentive Scheme Regulations 2011[^f00021] or regulation 32 of the Renewable Heat Incentive Scheme Regulations 2018[^f00022] (“RHI registration”) in respect of the production of biomethane using that equipment,

(ii) where a person has made an application for RHI registration in respect of the production of biomethane using that equipment, and the application has not yet been determined,

(iii) where a person has made an application for a tariff guarantee under regulation 35(1) of the Renewable Heat Incentive Scheme Regulations 2018 in respect of the production of biomethane using that equipment, and the application was withdrawn after the coming into force of these Regulations,

(iv) which has been used to produce biomethane for injection by a participant who has withdrawn from the Scheme in accordance with regulation 16,

(v) which has been used to produce biogas or biomethane, or both, before the coming into force of these Regulations, where paragraphs (i) to (iv) do not apply.

(3) An applicant may not—

(a) amend an application made under paragraph (1) without the agreement of the Authority,

(b) make a further application under paragraph (1) in respect of the production of biomethane using the same equipment used to produce biomethane to which the original application relates without first withdrawing the original application.

(4) An application must be in writing, in such form as the Authority may require, and must include the following information—

(a) the date on which the injection of biomethane commenced, or on which the applicant expects the injection of biomethane to commence (as the case may be),

(b) the expected maximum initial capacity,

(c) the location of the plant where the biogas is or will be produced, and of the injection point where biomethane is or will be injected in accordance with the network entry agreement applicable to that biomethane,

(d) a description of the equipment used to produce biomethane to which the application relates,

(e) evidence that the applicant has entered into a connection agreement,

(f) the applicant’s—

(i) name,

(ii) email address, and

(iii) registered office (where applicable), or principal place of activity,

(g) the volume expressed in cubic metres of eligible biomethane which the applicant intends to inject each year,

(h) a statement from the applicant as to whether planning permission is necessary in respect of the processes by which the biogas which is used to produce the biomethane is produced, the biogas is upgraded to biomethane, or the biomethane is injected and, where such planning permission is necessary, evidence from the relevant planning authority that it has been granted, and

(i) any further information which the Authority may require.

(5) Subject to paragraphs (15) and (16), where the application has, in the Authority’s opinion, been properly made, the Authority must give a notice (a “provisional tariff guarantee notice”) to the applicant stating—

(a) that a tariff guarantee will be granted if the Authority is satisfied that financial close has been reached,

(b) the evidence which is required for the purposes of sub-paragraph (a),

(c) the date, which must be no later than three weeks after the date on which the provisional tariff guarantee notice is given, by which all such evidence must be provided,

(d) the date on which the properly made application was received by the Authority, and

(e) the guaranteed tariff which will apply if the applicant becomes registered under regulation 6.

(6) Where the Authority is satisfied that the applicant has provided the evidence specified in the provisional tariff guarantee notice by the date specified in the notice under paragraph (5)(c), the Authority must grant a tariff guarantee by notice to the applicant stating—

(a) the guaranteed tariff which will apply if the applicant becomes registered under regulation 6, but subject to paragraph (7),

(b) the date by which, for the purposes of the tariff guarantee, the injection of biomethane must commence (if injection of biomethane has not already commenced),

(d) the information which the applicant must supply to the Authority during the period of the tariff guarantee, and the frequency with which that information must be supplied, and

(e) any further conditions which the Authority considers necessary in relation to the tariff guarantee.

(7) The Authority—

(a) may, at any time before the applicant is notified in accordance with regulation 6(4) that they are a participant, revoke a tariff guarantee, if—

(i) there has been a material change in circumstances such that, had the application for the tariff guarantee been made after the change in circumstances, it would have been refused,

(ii) the applicant fails to comply with conditions imposed in accordance with paragraph (6)(b), (d) or (e),

(iii) the Authority considers that the information on which the decision to grant the tariff guarantee was based was incorrect in a material particular, or

(iv) the Authority considers that the production and injection of biomethane is materially different from the production and injection of biomethane which was proposed under paragraph (4), and

(b) must revoke a tariff guarantee where the tariff start date in relation to a producer of biomethane is—

(i) 183 or more days after the date given in accordance with paragraph (4)(a), or

(ii) where the application for the tariff guarantee was made before 4th June 2024, after 30th November 2025 and for all other applications, after 31st March 2028,

whichever is the earlier.

(8) For the purposes of paragraph (7)(a)(iv)—

(a) the Authority may take into account such matters as are, in the Authority’s opinion, relevant, including —

(i) the location of the injection point where biomethane is injected,

(ii) the maximum initial capacity of biomethane, and

(iii) the source of energy and technology or design of the plant, and

(b) the maximum initial capacity of biomethane is materially different where it is at least 10% greater or smaller than the expected maximum initial capacity proposed under paragraph (4)(b).

(9) Subject to paragraphs (10) and (11), where a producer of biomethane in respect of which a tariff guarantee has been granted becomes registered under regulation 6, the tariff applicable at the tariff start date is the initial tariff which would have applied in accordance with regulation 22 (calculation of initial tariffs and tariff review) had the tariff start date been the date referred to in paragraph (5)(d), adjusted , where appropriate, in accordance with paragraph (9A) (the “guaranteed tariff”).

(9A) Subject to paragraph (9B), if the date referred to in paragraph 5(d) (“the guarantee date”) and the tariff start date are in different financial years, the initial tariff calculated in accordance with paragraph (9) must be adjusted by the percentage increase or decrease in the consumer prices index in the period beginning with 1st January immediately preceding the financial year in which the guarantee date falls and ending with 31st December immediately preceding the financial year in which the tariff start date falls.

(9B) For the purposes of the adjustment under paragraph (9A), any increase or decrease in the consumer prices index in the calendar year ending on 31st December 2021 is to be disregarded.

(10) Where in any 12 month period beginning with the tariff start date, or the anniversary of the tariff start date, the biomethane injected by a producer of biomethane exceeds 250GWh, the guaranteed tariff will apply to the first 250GWh of such biomethane only.

(11) The guaranteed tariff does not apply—

(a) if the tariff start date is earlier than the date given in accordance with paragraph (4)(a), until that date, or

(b) where the tariff guarantee has been revoked.

(12) Where the Authority revokes a tariff guarantee, it must give a notice to the applicant specifying—

(a) the reason for the revocation, and

(b) details of the applicant’s right of review under regulation 62.

(13) The Secretary of State—

(a) must determine and publish the budget allocation for tariff guarantees and registration in respect of additional biomethane (the “budget allocation”) for each of the relevant financial years,

(b) must publish—

(i) estimates of inflation for each of the relevant financial years, and

(ii) quarterly biomethane production factors,

(d) may, as a result of such a review, increase or decrease a budget allocation, provided that such increase or decrease may only take effect on 1st January, 1st April, 1st July or 1st October in a relevant financial year.

(14) The Authority must publish the following information once in every quarter—

(a) current information in aggregate form as to—

(i) the number of tariff guarantee applications made,

(ii) the number of provisional tariff guarantee notices given,

(iii) the number of tariff guarantees granted,

(iv) the number of applications for registration in respect of additional biomethane made under regulation 8,

(v) the number of participants registered in respect of additional biomethane,

(vi) the feedstocks, maximum initial capacity and any additional capacity, of the plants in respect of which tariff guarantees have been granted, and

(b) the estimated total budget commitment for each of the relevant financial years.

(15) The Authority must consider applications for a tariff guarantee and applications for registration in respect of additional biomethane under regulation 8 in the order in which they are received by it, and must not—

(a) give a provisional tariff guarantee notice, or register a participant in respect of additional biomethane, where the estimated total budget commitment for a relevant financial year would exceed the budget allocation for that year if the tariff guarantee were granted or if the participant were registered in respect of that additional biomethane (as the case may be), or

(b) give a provisional tariff guarantee notice, or register a participant in respect of additional biomethane, in respect of any subsequent application for consideration except where granting a tariff guarantee or registering the participant in respect of additional biomethane (as the case may be) would not cause the budget allocation for a relevant financial year to be exceeded.

(16) Following an increase or decrease in budget allocation pursuant to paragraph (13)(d), or any decrease in the estimated total budget commitment resulting from the withdrawal or rejection of a tariff guarantee application or an application for registration in respect of additional biomethane under regulation 8, the Authority must consider outstanding applications for a tariff guarantee and for registration in respect of additional biomethane under regulation 8 in the order in which they were received.

(17) In this regulation—

“connection agreement” means an agreement, between a person who proposes to inject biomethane into a pipe-line system and the operator of the pipe-line system, which provides for the design and construction of a connection by which the biomethane may be injected into the pipe-line system;

“estimated annual payment”, in relation to an application for a tariff guarantee or an application for registration in respect of additional biomethane, means—in the first financial year—[image omitted]in any subsequent financial year—[image omitted]where—“first financial year” means the financial year in which—in the case of an application for a tariff guarantee, the equipment used to produce biomethane was commissioned, or the applicant expects the equipment used to produce biomethane to be commissioned (as the case may be), andin the case of an application for registration in respect of additional biomethane, periodic support payments for that additional biomethane are expected to become payable, having regard to regulation 8(5)(a), D isin the case of an application for a tariff guarantee, the number of days in the financial year beginning with the date on which the injection of original biomethane commenced or the applicant expects the injection of original biomethane to commence (as the case may be), andin the case of an application for registration in respect of additional biomethane, the number of days in the financial year beginning with the date on which periodic support payments for that additional biomethane are expected to become payable, having regard to regulation 8(5)(a),F is 9.1[^f00023],I is the estimate of inflation for that financial year, published by the Secretary of State,P is the average of the quarterly biomethane production factors for all applicable quarters of the relevant financial year, beginning in the case of the first financial year with the date on which the injection of original biomethane commenced ..., the applicant expects the injection of original biomethane to commence, or periodic support payments for additional biomethane are expected to become payable, having regard to regulation 8(5)(a) (as the case may be), expressed as a decimal and rounded to four decimal places,T is the guaranteed tariff which will apply if the producer of biomethane becomes registered under regulation 6, or the tariff which will apply if the participant is registered in respect of additional biomethane under that regulation (as the case may be),V is the maximum volume expressed in cubic metres of eligible biomethane which—in the case of an application for a tariff guarantee, the applicant can inject each year, based on data from the relevant connection agreement,in the case of an application for registration in respect of additional biomethane, the participant can inject each year, based on data from the relevant network entry agreement, andY is the number of days in the financial year;

“estimated total budget commitment”, in relation to a relevant financial year, means the sum of—the estimated annual payments in relation to every application for a tariff guarantee—for which a provisional tariff guarantee notice has been given, andwhich has not been withdrawn by the applicant or rejected by the Authority, andthe estimated annual payments in relation to every application for registration in respect of additional biomethane where the participant has been registered in respect of that additional biomethane;

“financial close” means the date on which the applicant has entered into all financing agreements in relation to all the funding required for the production and injection of biomethane;

“maximum initial capacity” means the maximum volume of biomethane, expressed in cubic metres per year, which a participant is entitled to supply for injection under the network entry agreement applicable to the biomethane in relation to which an application for registration under regulation 5 is made;

“quarterly biomethane production factors” means the percentage of their maximum initial capacity or their maximum additional capacity (as the case may be) that a participant is expected to supply for injection in each quarter, beginning with the first quarter in which they are registered as a participant or in which they are registered in respect of the additional biomethane (as the case may be);

“relevant financial year” means any of the financial years 2021/2022, 2022/2023, 2023/2024, 2024/2025, ... 2025/2026 , 2026/2027 ... 2027/2028 , 2028/2029 and 2029/2030.

Application for registration as a participant

5

(1) A producer of biomethane who has been granted a tariff guarantee which has not been revoked may apply to the Authority to be registered as a participant in relation to the equipment used to produce biomethane to which that tariff guarantee applies.

(2) An application for registration must be in writing and supported by—

(a) such of the information specified in Schedule 1 (information required for registration) as the Authority may require,

(b) a declaration that the information provided by the applicant is accurate to the best of the applicant’s knowledge and belief, and

(c) a declaration as to the volume expressed in cubic metres of biomethane which the applicant expects to produce for injection each year.

(3) Before registering a producer of biomethane as a participant, the Authority may request access without notice at any reasonable hour to carry out inspections of any equipment which is being used to produce the biomethane for which the applicant is intending to claim periodic support payments, and any injection equipment, in order to satisfy itself that the applicant should be registered.

(4) Where the applicant is not also the person producing the biogas used to produce the biomethane in respect of which that application is made, the Authority may require that the applicant—

(a) has the authority, from all persons who produce the biogas used to produce the biomethane, to be the participant, and

(b) provides to the Authority, in such manner and form as the Authority may request, evidence of that authority.

(5) Where the Authority considers that further information is necessary for the purpose of determining an application, it may by notice—

(a) specify the further information which the applicant is required to provide,

(b) specify a period of no less than four weeks beginning with the date of the notice within which that information must be provided, and

(c) inform the applicant that failure to provide the requested information within that period may result in the application being rejected.

(6) The Authority may by notice extend the period specified in a notice under paragraph (5)(b) where it is satisfied that it is reasonable to do so.

Determination of application for registration and the central register

6

(1) The Authority must maintain a register of participants (the “central register”), and ensure, so far as practicable, that entries in the central register are accurate and up to date.

(2) The Authority may when registering an applicant as a participant attach such conditions as it considers appropriate.

(3) The Authority must specify in the central register the maximum initial capacity in respect of which the participant is registered.

(4) Where the application for registration has, in the Authority’s opinion, been properly made, the Authority must (subject to paragraphs (5) to (7), regulation 7 (treatment of grants from public funds), and regulation 32(4)(b) (revocation of registration))—

(a) notify the applicant in writing that registration has been successfully completed and that the applicant is a participant in relation to the equipment used to produce the biomethane to which the tariff guarantee applies (“the relevant equipment used to produce biomethane”),

(b) enter the date of registration, the participant’s name, and a description of the relevant equipment used to produce biomethane, on the central register,

(d) notify the applicant of the maximum initial capacity specified in accordance with paragraph (3), and

(e) give the applicant a written statement including such of the following information as the Authority considers applicable—

(i) the date of registration,

(ii) the tariff which will apply,

(iii) the process and timing for providing meter readings,

(iv) details of the frequency and timetable for periodic support payments,

(v) the tariff lifetime and tariff end date, and

(vi) the ongoing participant obligations.

(5) The Authority must not register an applicant as a participant unless—

(a) the applicant has specified the equipment used to produce biomethane to which the application relates,

(b) at the time of making the application, the relevant equipment used to produce biomethane has been commissioned,

(c) any necessary planning permission has been granted in respect of the processes by which the biogas which is used to produce the biomethane is produced, the biogas is upgraded to biomethane, or the biomethane is injected,

(d) any authorisations, in respect of the processes by which the biogas which is used to produce the biomethane is produced, the biogas is upgraded to biomethane, or the biomethane is injected—

(i) have been granted, or

(ii) have been applied for in accordance with the Environmental Permitting (England and Wales) Regulations 2016, the Environmental Authorisations (Scotland) Regulations 2018, and the applications have been accepted by the Environment Agency, the Natural Resources Body for Wales, or the Scottish Environment Protection Agency, as appropriate, but have not yet been determined, where—

(aa) the Environment Agency, the Natural Resources Body for Wales, or the Scottish Environment Protection Agency has published (and has not withdrawn) a regulatory position statement[^f00024], or other formal statement, affecting applications for authorisations, and

(bb) the processes are within the scope of that statement, and

(e) the applicant provides a declaration that the processes by which—

(i) the biogas which is used to produce the biomethane is produced,

(ii) the biogas is upgraded to biomethane, and

(iii) the biomethane is injected,

comply, and will continue to comply, with all local and national laws including those relating to the protection of the environment.

(6) The Authority must not register an applicant as a participant—

(a) if registration would result in periodic support payments being made to more than one participant for the same biomethane,

(b) if the tariff guarantee granted to the applicant has been revoked,

(c) where the applicant refused to allow the Authority access for the purposes of an inspection under regulation 5(3), and—

(i) the Authority is not satisfied that the refusal was reasonable, and

(ii) any subsequent access granted by the applicant for the purposes of an inspection was not sufficient to enable the Authority to satisfy itself that the applicant should be registered as a participant, or

(d) after 31st March 2028.

(7) The Authority may refuse to register an applicant as a participant—

(a) where the applicant fails to provide the information specified in a notice given under regulation 5(5), within the period specified in a notice under regulation 5(5)(b) or (6), as applicable,

(b) where it considers that one or more of the applicable ongoing participant obligations will not be complied with,

(c) if the Authority refused a previous application for registration made by the applicant, or a connected person, on the ground that information contained in the previous application was incorrect or misleading in a material particular, or

(d) where the Authority is satisfied that the relevant equipment used to produce biomethane has been used for the purposes of the registration of any other participant or former participant.

(8) Where the Authority does not register an applicant as a participant, it must notify the applicant in writing that the application for registration has been rejected, giving reasons.

Treatment of grants from public funds

7

(1) Subject to paragraphs (2) and (6), the Authority must not register an applicant as a participant in respect of any original biomethane or additional biomethane unless the applicant has given notice (which the Authority has no reason to believe is incorrect) that, as applicable—

(a) no grant from public funds has been paid or will be paid in respect of any of the costs of purchasing or installing any of the equipment used to produce the biomethane for which the applicant is intending to claim periodic support payments, or

(b) such a grant was paid and it has been repaid to the person or authority who made it.

(2) Where some or all of the purchase or installation costs for the equipment used to produce any original biomethane were funded by any grant from public funds and—

(a) the applicant demonstrates to the satisfaction of the Authority that the person or authority who made the grant has—

(i) refused to accept repayment of the grant, or

(ii) ceased to exist, or

(b) paragraph (3) applies,

the Authority may register the applicant as a participant, but a grant funding deduction must be deducted from each periodic support payment in accordance with paragraphs (4) and (5).

(3) This paragraph applies where—

(a) a grant originates from funds raised by the National Lottery, and

(b) on or after 30th November 2021 but not later than 31st March 2028 installation of the equipment used to produce biomethane was completed and injection of biomethane produced by that applicant has commenced.

(4) A grant funding deduction for each quarter is calculated in accordance with the following formula—

where A is—

(a) for the quarter in which the tariff start date falls, the figure that the Authority considers, based on all relevant information available to the Authority at the time, represents the total value of any grants from public funds to which paragraph (2) refers,

(b) for any subsequent quarter that does not include 1st April of any year, the value of A in the previous quarter, and

(c) for any subsequent quarter that includes 1st April of any year, the value of A in the previous quarter adjusted by the percentage increase or decrease in the consumer prices index for the previous calendar year, the resulting figure being rounded.

(5) Where a grant funding shortfall arises, the Authority must deduct from the periodic support payments (“P”) payable in the subsequent quarter and any quarter after the subsequent quarter, the grant funding deduction for that period together with such part of the grant funding shortfall as remains outstanding provided that the total amount so deducted does not exceed P.

(6) Where an application for registration in respect of additional biomethane is made under regulation 8—

(a) a reference to a grant in paragraph (1) does not include a grant in respect of equipment used to produce that additional biomethane if the equipment is also used to produce original biomethane and a grant funding deduction is already being made in respect of the grant, and

(b) paragraphs (2) to (4) do not apply in respect of the application.

(7) In this regulation—

“grant from public funds” means a grant made by a public authority or by any person distributing funds on behalf of a public authority,

“grant funding shortfall” means the amount by which the grant funding deduction exceeds the periodic support payment in any quarter, and

“National Lottery” means the National Lottery as referred to in section 1 of the National Lottery etc. Act 1993[^f00025].

Additional capacity for biomethane production

8

(1) A participant who—

(a) is producing or intends to produce additional biomethane for injection by anaerobic digestion, and

(b) expects the injection of that additional biomethane to commence no later than 31st March 2028,

may apply to the Authority to be registered in respect of that additional biomethane.

(2) A participant may not make a further application under paragraph (1) in respect of the production of additional biomethane using the same equipment used to produce biomethane to which the original application relates without first withdrawing the original application.

(3) Regulation 5(3) to (6), and regulation 6(2), (4)(a) to (c) and (e), and (5) to (8) apply to an application for registration in respect of additional biomethane, and such application must be in writing and supported by such of the information referred to in regulations 5 and 6 as the Authority may require, but as if references in those regulations—

(a) to an applicant were references to the participant,

(b) to biomethane were references to additional biomethane, and

(c) to registering the applicant as a participant were references to registering the participant in respect of that additional biomethane.

(4) Where a participant is registered in respect of additional biomethane, the Authority must specify the maximum additional capacity in relation to which the participant is registered.

(5) Where a participant is registered in respect of additional biomethane—

(a) periodic support payments for that additional biomethane are payable—

(i) where the application is made on or before 31st October in a financial year (“FY1”), from the start of the following financial year (“FY2”),

(ii) where the application is made after 31st October in FY1, from the start of the financial year following FY2,

(b) the tariff for additional biomethane is the relevant tariff determined in accordance with regulation 21(3) as at the tariff start date for that additional biomethane, and

(c) the tariff for the original registration continues to be the relevant tariff for that original registration, determined in accordance with regulation 21(3) as at the tariff start date for that original registration.

(6) Periodic support payments for additional biomethane may not be made beyond the tariff end date which was notified in accordance with regulation 6(4)(e)(v) when the participant was originally registered as a producer of biomethane.

(7) For the purposes of this regulation—

(a) “additional biomethane” means any biomethane—

(i) which exceeds the sum of the maximum initial capacity, together with any maximum additional capacity previously specified under this regulation, and

(ii) which is being supplied, or is intended to be supplied, by the participant for injection at the same injection point as the biomethane in respect of which that participant was first registered,

(b) “maximum additional capacity” means the volume of biomethane, expressed in cubic metres per year, which—

(i) is additional biomethane, and

(ii) is the maximum volume which a participant is entitled to supply for injection under the network entry agreement applicable to that additional biomethane.

(8) Where the Authority does not register a participant in respect of additional biomethane, it must notify the participant in writing that the application for registration in respect of additional biomethane has been rejected, giving reasons.

PART 3 — Ongoing obligations on participants

Ongoing participant obligations: biomethane

9

(1) A participant may only use biomethane which—

(a) is or was produced from one or more of the following feedstocks—

(i) solid biomass,

(ii) solid waste,

(iii) liquid waste, and

(b) is not gas formed by the digestion of material in a landfill.

(2) Where waste is used as feedstock, the proportion of solid biomass contained in the waste must be a minimum of 10%.

(3) For the purposes of paragraph (2), the proportion of solid biomass is the energy content of the waste used as feedstock in a quarter, less the energy content of any fossil fuel[^f00026] of which that waste is in part composed, expressed as a percentage of the energy content of that waste.

(4) Where solid biomass is used as feedstock, the participant may use solid biomass contaminated with fossil fuel only where the proportion of fossil fuel contamination does not exceed 10%, but such contaminated biomass may not be used unless the fossil fuel is present because—

(a) the solid biomass has been subject to a process, the undertaking of which has caused the fossil fuel to be present in, on, or with the biomass even though that was not the object of the process, or

(b) the fossil fuel is waste and was not added to the solid biomass with a view to its being used as a fuel.

(5) For the purposes of paragraph (4), the proportion of fossil fuel contamination is the energy content of the fossil fuel with which the solid biomass used in a quarter is contaminated, expressed as a percentage of the energy content of all feedstock (contaminated or otherwise) used in that quarter.

(6) A participant may use feedstock partly derived from fossil fuel only where the contribution of that fossil fuel to the energy content of the biogas that is produced from that feedstock does not exceed 10%.

(7) For the purposes of paragraph (6)—

(a) the percentage of the energy content of biogas from the fossil fuel component of the feedstock is to be determined by the Authority for every quarter,

(b) it is for the participant to provide, in such form as the Authority may require, evidence to demonstrate to the Authority’s satisfaction the percentage of the energy content of biogas from feedstock derived from fossil fuel, and

(c) the percentage of the energy content of biogas from feedstock derived from fossil fuel is the energy content of the fossil fuel, expressed as a percentage of the energy content of the biogas used in that quarter to produce biomethane.

(8) Without prejudice to paragraph (7)(b), in determining the percentage of the energy content of biogas from feedstock derived from fossil fuel, the Authority may have regard to any information (whether or not produced to it by the participant) if, in its opinion, that information indicates the contribution of feedstock derived from fossil fuel to the energy content of the biogas.

(9) Where the Authority so requests, the participant must arrange—

(a) for samples of the feedstock used (or to be used) to be taken by a person and analysed in a manner specified by the Authority, and

(b) for the results of that analysis to be made available to the Authority in such form as the Authority may require.

(10) A participant must provide measurements in such format as the Authority may request which satisfy the Authority of all of the following—

(a) the gross calorific value and volume of biomethane injected,

(b) the gross calorific value and volume of any propane contained in the biomethane,

(d) the kWhth of heat supplied to every anaerobic digester (other than heat contained in feedstock to produce biogas by anaerobic digestion) which made the biogas used in any quarter to produce biomethane for injection, ...

(e) any heat supplied to the biomethane production process , and

(f) the kWh of electrical input supplied to any eligible heat pump.

(11) The measurements referred to in paragraph (10) may be estimated if the Authority has agreed in writing to an estimate being provided and to the way in which those estimates are to be calculated, provided that estimated measurements may only be used by a participant in relation to a maximum of six quarters.

(12) A participant must keep, and provide to the Authority upon request—

(a) copies or details of agreements with third parties with whom the participant contracts to carry out any of the processes undertaken to turn the biogas into biomethane and to arrange for its injection, and

(b) written evidence including invoices, receipts, contracts and such other information as the Authority may specify in relation to biogas purchased and feedstock used in the production of the biogas used to produce biomethane.

(13) A participant must ensure, in relation to digestate generated from every anaerobic digester, that they comply with the following requirements—

(a) they use low emission spreading of digestate as defined in the Code of Good Agricultural Practice (COGAP) for Reducing Ammonia Emissions[^f00027], or

(b) where the participant contracts with another person to spread the digestate, that person complies with the relevant National Association of Agricultural Contractors standards or equivalent approved standards.

(14) Where the Secretary of State is satisfied that the standards of a scheme or body in relation to the low emission spreading of digestate are equivalent to the relevant National Association of Agricultural Contractors standards mentioned in paragraph (13)(b), the Secretary of State may approve those standards for the purposes of paragraph (13)(b), and “equivalent approved standards” means standards so approved.

(15) A participant must—

(a) keep, and provide to the Authority upon request, copies or details of arrangements made to spread digestate, and

(b) annually, and within 3 months after each anniversary of the date on which they were first registered as a participant, provide the Authority with a declaration which states that the participant has complied with the obligations in paragraph (13).

Ongoing participant obligations: general

10

(1) A participant must comply with the following ongoing participant obligations, as applicable—

(a) they must keep and provide upon request by the Authority records of the type of feedstock used and fuel purchased while they are a participant,

(b) where they have used solid biomass which was an approved sustainable fuel at the time when it was received by the participant or in respect of which the Secretary of State had made a declaration under paragraph 5 of Schedule 2 (approval of schemes for listing sustainable fuels), they must keep and provide upon request by the Authority the authorisation number or other means of identification allocated to that fuel by the scheme under which that fuel is listed,

(c) they must submit an annual declaration as requested by the Authority confirming that they are complying with the relevant ongoing participant obligations,

(d) they must notify the Authority if any of the information provided in support of their application for registration was incorrect,

(e) they must comply with any condition attached to their registration,

(f) they must allow the Authority or its authorised agent reasonable access in accordance with regulation 36 (power to inspect equipment),

(g) they must notify the Authority as soon as reasonably practicable and within no more than 28 days after ceasing to comply with an ongoing participant obligation or becoming aware that they will not be able so to comply, or where there has been any change in circumstances which may affect their eligibility to receive periodic support payments,

(ga) they must notify the Authority if they have installed a ground source heat pump or air source heat pump or both for use in the production of biomethane within 28 days of the heat pump being installed,

(h) they must repay any overpayment in accordance with any notice served under regulation 34 (overpayment notices and offsetting),

(i) they must comply with such other requirements as the Authority may specify in relation to the effective administration of the Scheme,

(j) they must ensure, in respect of the processes by which the biogas used to produce the biomethane is produced, the biogas is upgraded to biomethane, and the biomethane is injected—

(i) that any necessary planning permission required under regulation 6(5)(c) continues to be complied with,

(ii) that, unless regulation 6(5)(d)(ii) applies, any necessary environmental permit granted in accordance with the Environmental Permitting (England and Wales) Regulations 2016 or any authorisation granted (or treated as granted) under the Environmental Authorisations (Scotland) Regulations 2018, continues to be complied with, and

(iii) that all local and national laws including those relating to the protection of the environment continue to be complied with,

(k) where regulation 28 (reconciliation payments) applies, the participant must comply with the following obligations in relation to each payment year (within the meaning of that regulation)—

(i) the participant must provide a declaration to the Authority following the end of each payment year stating the proportion of the total biogas yield for that payment year which is not derived from waste or residue, and

(ii) the annual report submitted by the participant in accordance with regulation 13 (obligation to submit sustainability audit reports) must confirm whether the figure provided by the participant under paragraph (i) is correct, together with supporting evidence to show how it is calculated, and

(l) they must notify the Authority within 28 days of a change of ownership of all or part of the equipment used to produce biomethane.

(2) A participant must keep all meters required to be used in accordance with these Regulations—

(a) continuously operating,

(b) properly maintained and periodically checked for errors,

(c) re-calibrated every 10 years, or within such period of time as may be specified in accordance with manufacturers’ instructions where available, whichever is the sooner, and

(d) located, maintained, and serviced in accordance with any conditions specified in the manufacturers’ instructions,

and must retain evidence of this while they are a participant.

Ongoing participant obligations: the provision of information

11

(1) A participant must provide to the Authority on request any information which the participant holds and which the Authority requires in order to discharge its functions under these Regulations.

(2) A participant must retain a copy of—

(a) any information relied on when making any application for registration or, if the participant did not make that application, given to the participant by the person who made the application, and

(b) any other evidence which verifies that the participant is continuing to comply with the ongoing participant obligations.

(3) Information requested under paragraph (1) must be provided within such time as the Authority specifies.

Ongoing participant obligations: sustainability

12

(1) A participant must only produce for injection sustainable biomethane.

(2) A participant must—

(a) in relation to each consignment of biomethane produced, provide the Authority with a declaration in accordance with paragraphs (3) and (4), and

(b) provide any declarations and information required under paragraph (8).

(3) A declaration must state whether or not—

(a) any solid biomass used to produce the biomethane was waste or wholly derived from waste,

(b) the biomethane produced was made from feedstock which was waste,

(d) the biomethane produced was made from feedstock which was solid biomass which met the land criteria.

(4) Where a participant declares in accordance with paragraph (3)(c) that biomethane met the greenhouse gas criteria, the declaration must specify the lifecycle greenhouse gas emissions for that biomethane.

(5) Except where the Authority specifies otherwise, participants must provide declarations and information in accordance with this regulation in respect of the biomethane produced in every quarter, within 28 days of the end of each such quarter.

(6) Where in a quarter a participant produces biomethane for injection, the participant must provide the following information in relation to the solid biomass used—

(a) the material from which the solid biomass was composed,

(b) the form of the solid biomass,

(d) whether the solid biomass was a by-product of a process,

(e) whether the solid biomass was derived from waste,

(f) where the solid biomass was plant matter or derived from plant matter, the country where the plant matter was grown,

(g) where the information specified in sub-paragraph (f) is not known or the solid biomass was not plant matter or derived from plant matter, the country from which the participant obtained the solid biomass,

(h) whether any of the solid biomass used was an energy crop or derived from an energy crop and if so—

(i) the proportion of the consignment which was or was derived from the energy crop, and

(ii) the type of that energy crop,

(i) whether the solid biomass or any matter from which it was derived was certified under an environmental quality assurance scheme and, if so, the name of the scheme,

(j) where the solid biomass was plant matter or derived from plant matter, the use to which the land on which the plant matter was grown has been put since 30th November 2005, if known.

(7) The information provided under paragraph (6) must be collated by reference to the following places of origin—

(a) the United Kingdom,

(b) other.

(8) In addition to the declaration in accordance with paragraphs (3) and (4) and information in accordance with paragraphs (6) and (7), the Authority may from time to time require such further declarations or information from a participant in relation to sustainable biomethane as the Authority considers necessary.

(9) Nothing in paragraph (5) or (6) requires a participant to provide a declaration or information in relation to any part of a quarter during which they were not a participant.

(10) For the purposes of this regulation—

(a) biomethane produced from biogas meets the greenhouse gas criteria if the lifecycle greenhouse gas emissions associated with that biomethane are less than or equal to 24g of CO2 eq per megajoule of biomethane injected, where lifecycle greenhouse gas emissions, expressed in grammes of CO₂ eq per megajoule from the production of the biomethane, are calculated using the actual value method or the default value method published by the Secretary of State,

(b) “energy crop” means—

(i) a perennial crop planted at high density, the stems of which are harvested above ground level at intervals of less than 20 years and which is one of the following—

(aa) Acer pseudoplatanus (also known as sycamore),

(bb) Alnus (also known as alder),

(cc) Betula (also known as birch),

(dd) Castanea sativa (also known as sweet chestnut),

(ee) Corylus avellana (also known as hazel),

(ff) Fraxinus excelsior (also known as ash),

(gg) Populus (also known as poplar),

(hh) Salix (also known as willow),

(ii) Tilia cordata (also known as small-leaved lime), or

(ii) a perennial crop which is one of the following—

(aa) Arundo donax (also known as giant reed),

(bb) Bambuseae, where the crop was planted after 31st December 1989 and is grown primarily for the purpose of being used as fuel,

(cc) Miscanthus,

(dd) Panicum,

(ee) Pennisetum, other than Pennisetum setaceum (also known as fountain grass), Pennisetum clandestinum (also known as kikuyu grass) and Pennisetum villosum (also known as feathertop grass),

(ff) Phalaris,

(c) “environmental quality assurance scheme” means a voluntary scheme which establishes environmental or social standards in relation to the production of biomass or matter from which biomass is derived,

(d) “land criteria” means—

(i) the criteria set out in Part 2 of Schedule 3 (land criteria) in relation to solid biomass which is wood or wholly derived from wood, except energy crops, or

(ii) the criteria set out in Part 3 of Schedule 3 in relation to other solid biomass including energy crops,

(e) “sustainable biomethane” means biomethane which, save for ingredients which are added as part of the biomethane production process—

(i) is made wholly from feedstock which is waste,

(ii) meets the greenhouse gas criteria and is made wholly from feedstock which is solid biomass which meets the land criteria, or

(iii) consists of a combination of any of the biomethane listed in paragraphs (i) and (ii).

(11) For the purposes of paragraph (10)(a), the Secretary of State must publish a document setting out the actual value method and the default value method of calculating the lifecycle greenhouse gas emissions associated with biomethane produced from biogas.

Ongoing participant obligations: sustainability audit reports

13

(1) A participant must submit a report which is prepared in accordance with the requirements in paragraph (2).

(2) The requirements in this paragraph are that the report must—

(a) be prepared by a person who is not—

(i) the participant, or

(ii) a connected person,

(b) be prepared in accordance with the International Standard on Assurance Engagements (UK) 3000 (July 2020): Assurance engagements other than audits or reviews of historical financial information[^f00028] or an equivalent standard,

(c) state whether anything has come to the attention of the person preparing the report to indicate that the sustainability information is not accurate, and

(d) consider, in relation to each consignment of biomethane produced for injection—

(i) whether the systems used to produce the sustainability information are likely to produce information which is reasonably accurate and reliable,

(ii) whether there are controls in place to help protect the sustainability information against material misstatements due to fraud or error,

(iii) the frequency and methodology of any sampling carried out for the purpose of obtaining or checking the data on which the participant relied in preparing the sustainability information, and

(iv) the robustness of the data on which the participant relied in preparing the sustainability information.

(3) In this regulation, “sustainability information” means the information provided pursuant to regulation 12(3) and (4).

(4) Subject to paragraph (5), a participant must submit reports under this regulation annually and within 3 months after each anniversary of the date on which that participant was first registered as a producer of biomethane.

(5) The report must consider and report on each consignment of biomethane produced, within the 12 month period preceding each anniversary of the date on which that participant was first registered as a producer of that biomethane.

PART 4 — Changes affecting participants

Review of registration following notification of a change in circumstances

14

(1) This regulation applies where—

(a) the Authority receives a notification under regulation 10(1)(d), (g) , (ga) or (l), and

(b) regulation 15 (change of producer of biomethane) does not apply.

(2) On receipt of the notification, the Authority may—

(a) require the participant to provide such information as the Authority considers necessary to enable the Authority to consider whether a review should be carried out in accordance with this regulation and, if appropriate, to carry out such a review, and

(b) review the registration of the participant to which the notification relates to ensure that they continue to meet the requirements under these Regulations.

(3) No periodic support payment may be made from the date on which the Authority receives the notification until the Authority has notified the participant that—

(a) it is satisfied that it is not necessary to review the registration of the participant, or

(b) it has carried out a review and is satisfied that the participant may continue to be registered.

(4) Where the Authority is satisfied in accordance with paragraph (3) it must resume payment of periodic support payments in accordance with these Regulations and pay to the participant any periodic support payments withheld in accordance with paragraph (3).

Change of producer of biomethane

15

(1) This regulation applies where—

(a) a person begins to use equipment used to produce biomethane (the “new producer”), and

(b) a participant (the “original producer”) is receiving periodic support payments for the production of biomethane for injection using that same equipment used to produce biomethane.

(2) No periodic support payment may be made to the new producer until—

(a) the new producer has notified the Authority of the change,

(b) injection of biomethane produced by the new producer has commenced, and

(3) On receipt of a notification under paragraph (2)(a), the Authority may require the new producer to provide such information as the Authority considers necessary for the proper administration of the Scheme.

(4) Where the Authority is satisfied that the ongoing participant obligations will continue to be complied with by the new producer, the Authority must (subject to regulation 7 (treatment of grant from public funds) and 32(4) (revocation of registration))—

(a) update the central register by substituting the name of the new producer, and

(b) give the new producer a written statement including such of the following information as the Authority considers applicable—

(i) the date of registration of the original producer,

(ii) the date on which the new producer is added to the central register,

(iii) any tariff which applies,

(iv) the process and timing for providing meter readings,

(v) details of the frequency and timetable for periodic support payments,

(vi) the tariff lifetime and tariff end date,

(vii) the ongoing participant obligations, and

(viii) any conditions attached to the registration of the original producer as a participant.

(5) The Authority may refuse to register a new producer where it considers that one or more of the applicable ongoing participant obligations, or one or more of the conditions attached to the registration of the original producer as a participant, will not be complied with.

(6) Where the new producer is registered—

(a) the new producer must be paid periodic support payments (calculated from the date of receipt of the notification under paragraph (2) until the tariff end date in accordance with these Regulations), and

(b) the original producer must not be paid periodic support payments in relation to any biomethane for which payments are made under sub-paragraph (a).

(7) This paragraph applies where, within the period of 12 months beginning with a change of producer, the Authority becomes aware that a new producer is using equipment used to produce biomethane and the original producer is receiving periodic support payments for the production of biomethane for injection using that same equipment used to produce biomethane, and—

(a) no notification is made in accordance with paragraph (2)(a), or

(b) any information required under paragraph (3) is not provided to the Authority.

(8) Where paragraph (7) applies, at the end of the period of 12 months specified in that paragraph—

(a) the Authority must revoke the participant’s registration, and

(b) no further periodic support payments may be made in respect of any biomethane produced using that equipment used to produce biomethane.

(9) The period specified in paragraph (8) may be extended by the Authority where the Authority considers it is just and equitable to do so.

Withdrawal of participant

16

(1) A participant may notify the Authority that they intend to withdraw from the Scheme.

(2) Notification given under paragraph (1) must state the date on which the participant intends to withdraw from the Scheme (“the withdrawal date”), which must be no earlier than 28 days after the date on which the notification is given.

(3) The participant ceases to be a participant, and ceases to be entitled to the payment of periodic support payments, on the withdrawal date.

(4) The Authority must update the central register by recording that the participant has withdrawn from the Scheme, together with the withdrawal date.

PART 5 — Periodic support payments

Interpretation of this Part

17

In this Part—

“assessment date” means each 31st January, 30th April, 31st July, and 31st October in the period beginning with 30th November 2021 and ending with 31st March 2028;

“estimated energy from biomethane”, in relation to an assessment date and a relevant producer, as expressed in kWh means—[image omitted]where—FR is the estimated flow rate,T is, where the relevant producer is a participant, has made an application for registration or is a proposed producer of biomethane in relation to which there is a pending tariff guarantee, the number of hours in the 12 month period beginning with the assessment date, andP is the proportion of biomethane which is calculated as follows—[image omitted]where—E is the amount of eligible biomethane in kWh injected by all producers of biomethane who have been registered and in relation to which periodic support payments have been received, andB is the amount of all biomethane in kWh injected by such producers in the quarters for which periodic support payments have been received,but where the value of either E or B, or both, is 0 (zero), the value of P is to be determined by the Secretary of State;

“estimated flow rate”, in relation to an assessment date and a relevant producer, means—[image omitted]where—B is the volume expressed in cubic metres of biomethane that the relevant producer has declared as being the amount which that relevant producer expects will be produced for injection each year once injection has commenced (or if more than one declaration has been given, the volume identified in the latest declaration), or 0 (zero) if no such declaration has been given, andH is the total number of hours in the 12 month period beginning with the assessment date;

“estimated residual energy from biomethane”, in relation to a proposed producer of biomethane in respect of which there is a pending tariff guarantee, means—[image omitted]where—B is the estimated energy from biomethane in excess of 250GWh,M is the number of hours in the period beginning with the later of the assessment date or the date identified by the applicant as the date on which injection is expected to commence, and ending 12 months after the assessment date, andY is the number of hours in the 12 month period beginning with the assessment date;

“estimated spend”, in relation to an assessment date and a relevant producer, means—except where paragraph (b) applies, the estimated energy from biomethane multiplied by the initial tariff or subsequent tariff, orin relation to a person who proposes to produce biomethane in respect of which there is a pending tariff guarantee—biomethane up to 250GWh multiplied by the initial tariff or subsequent tariff applicable to that estimated energy from biomethane, andthe estimated residual energy from biomethane, if any, multiplied by the initial tariff or subsequent tariff applicable to that estimated energy from biomethane;

“forecast for expenditure”, in relation to an assessment date, means the sum as at that assessment date of the estimated spend for each relevant producer;

“pending tariff guarantee” means a tariff guarantee which has been granted but does not include a case where—the producer of biomethane in respect of which the tariff guarantee was granted is registered as a participant,an application for registration has been made in respect of such a producer of biomethane, ora tariff guarantee has been revoked;

“relevant producer” means—a participant who produces or proposes to produce biomethane for injection by anaerobic digestion,a person who produces or proposes to produce biomethane for injection by anaerobic digestion who has made an application for registration but does not include a person who has made an application—which has been rejected by the Authority, orwhich has been withdrawn by the applicant, ora producer of biomethane in respect of which there is a pending tariff guarantee.

Periodic support payments

18

Subject to Part 6 (compliance and enforcement: participants), the Authority must make payments (“periodic support payments”) to participants in accordance with this Part out of funds available to it for the purposes of the Scheme.

Publication of tariffs

19

The Authority must—

(a) by 15th March, 15th June, 15th September and 15th December in each scheme year (“the tariff publication date”) publish the initial tariff applicable where a tariff start date falls within the quarter immediately following the relevant tariff publication date, and

(b) on or before 1st April in each scheme year, publish the subsequent tariff applicable for the period beginning with 1st April of that year and ending with 31st March of the following year.

Expenditure forecast statement and tariff change notice

20

(1) The Secretary of State must publish a statement in accordance with this regulation (“an expenditure forecast statement”).

(2) The expenditure forecast statement must be published by 1st March, 1st June, 1st September and 1st December in each scheme year, beginning with 1st March 2022.

(3) For that purpose the Secretary of State must determine the forecast for expenditure in relation to relevant producers, as at the assessment date immediately preceding the date on which the expenditure forecast statement is to be published (“the latest assessment date”).

(4) An expenditure forecast statement must set out the forecast for expenditure in relation to relevant producers, as at the latest assessment date.

(5) If the new initial tariff will be different from the former initial tariff—

(a) as a result of a forecast referred to in paragraph (3), and by virtue of regulation 22(2) (calculation of initial tariffs and tariff review), or

(b) by virtue of regulation 22(4),

the Secretary of State must publish with the expenditure forecast statement a notice (a “tariff change notice”) setting out the new initial tariff and the date on which it will take effect.

(6) For the purposes of paragraph (5)—

(a) “new initial tariff” means the initial tariff for biomethane produced for injection, having a tariff start date which falls within the next quarter, and

(b) “former initial tariff” means the initial tariff that would have been applicable to the biomethane produced for injection if the tariff start date had fallen on the day immediately preceding the commencement of that quarter.

Calculation and payment of periodic support payments to participants

21

(1) Periodic support payments are payable for 15 years from the tariff start date.

(2) Paragraph (1) is subject to—

(a) regulation 8 (additional biomethane),

(b) regulation 14 (review of registration following notification of a change in circumstances),

(d) regulation 16 (withdrawal of participant),

(e) regulation 29 (power to temporarily withhold periodic support payments to investigate alleged non-compliance),

(f) regulation 30 (power to withhold periodic support payments: further provisions),

(g) regulation 31 (power to reduce a participant’s periodic support payments),

(h) regulation 32 (revocation of registration),

(i) regulation 33 (power to correct the level of tariff being paid to a participant), and

(j) regulation 34 (overpayment notices and offsetting).

(3) Subject to regulation 4(9) (tariff guarantees), the tariff to be used for the purpose of calculating periodic support payments is—

(a) for the period beginning with the tariff start date and ending with the end of the financial year in which that tariff start date falls, the initial tariff, and

(b) for each subsequent financial year, the subsequent tariff.

Calculation of initial tariffs and tariff review

22

(1) The initial tariff for a producer of biomethane, where the tariff start date is on or before 30th June 2022, is—

(a) tier 1: 5.51 pence per kWh,

(b) tier 2: 3.53 pence per kWh,

(2) Except as provided in paragraphs (3) and (4), the initial tariff for a producer of biomethane, where the tariff start date is on or after 1st July 2022, is calculated in accordance with the formula—

where—A is calculated in accordance with regulation 23, andB is calculated in accordance with regulation 24 in relation to the assessment date immediately preceding the commencement of the quarter in which the tariff start date falls.

(3) The Secretary of State may—

(a) review the initial tariff by no later than 1st September in each of 2022, 2023, 2024 , 2025, 2026 and 2027, and

(b) as a result of such a review—

(i) increase or decrease the initial tariff, provided that such increase or decrease may only take effect on 1st October immediately following the review (“the relevant date”), or

(ii) determine that the initial tariff remains unchanged.

(4) Where the initial tariff is increased or decreased as a result of a review described in paragraph (3), the initial tariff for a producer of biomethane where the tariff start date falls in the quarter beginning with the relevant date, is the initial tariff as so increased or decreased.

Calculation of A

23

(1) For the purposes of regulation 22(2), A is calculated as follows.

(2) Where the tariff start date is within any quarter beginning with 1st April, A is the relevant tariff which would have applied had the tariff start date fallen within the previous quarter (“the previous tariff”), adjusted by the percentage increase or decrease in the consumer prices index for the calendar year ending with 31st December immediately preceding the commencement of that quarter, the resulting figure being rounded.

(3) Where the tariff start date is within any quarter beginning with 1st July, 1st October or 1st January, A is the previous tariff.

Calculation of B

24

(1) For the purposes of regulation 22(2), B is calculated as follows.

(2) The Secretary of State—

(a) must determine and publish the expenditure threshold figure in relation to each assessment date,

(b) may review the published expenditure threshold figure following a review under regulation 22(3)(a), and

(i) increase or decrease the published expenditure threshold figure provided that such increase or decrease may only take effect on 1st October immediately following the review, or

(ii) determine that the published expenditure threshold figure remains unchanged.

(3) B is 0 (zero) unless paragraph (4) applies.

(4) B is 0.10 in relation to the assessment date if, as at that assessment date, the forecast for expenditure exceeds the expenditure threshold figure in relation to that assessment date.

Calculation of subsequent tariffs

25

In relation to a particular financial year, the subsequent tariff is the tariff applicable to the biomethane produced by the participant on the last day of the previous financial year, adjusted by the percentage increase or decrease in the consumer prices index for the calendar year ending with 31st December immediately preceding the commencement of that subsequent financial year, the resulting figure being rounded.

Tariff tiers

26

(1) For the purposes of calculating an initial tariff under regulation 22(2), or a subsequent tariff under regulation 25, the applicable tier of that tariff is—

(a) tier 1, in relation to initial biomethane,

(b) tier 2, in relation to secondary biomethane, and

(2) In paragraph (1)—

(a) “initial biomethane” means the amount of eligible biomethane measured in megawatt hours which is injected in a relevant period, up to 60,000 megawatt hours,

(b) “secondary biomethane” means the amount of eligible biomethane measured in megawatt hours injected in a relevant period in excess of the initial biomethane, up to an additional 40,000 megawatt hours, and

(c) “tertiary biomethane” means the amount of eligible biomethane measured in megawatt hours injected in a relevant period in excess of the secondary biomethane, subject to paragraph (3).

(3) Where more than 250GWh of biomethane is injected in any relevant period, the initial tariff or the subsequent tariff will apply to the first 250GWh of such biomethane only.

(4) In this regulation—

“applicable tier”, in relation to an initial tariff or a subsequent tariff, means the numbered tier of that tariff, the rate for which applies in determining the initial tariff or subsequent tariff for biomethane production, and

“relevant period” means a 12 month period beginning with the tariff start date, or with the anniversary of the tariff start date.

Periodic support payments to participants

27

(1) Subject to paragraphs (3) and (6), regulation 7(2) (treatment of grants from public funds) and regulation 28 (reconciliation payments), participants must be paid a periodic support payment in respect of each quarter, or part of a quarter, during which they are a participant, calculated in accordance with the following formula—

where—A is the amount of eligible biomethane in kWh which is injected in that quarter, andB is the tariff applicable to the eligible biomethane determined in accordance with regulation 21 (calculation and payment of periodic support payments to participants).

(2) In this regulation, “eligible biomethane” means the amount in kWh of all biomethane or the notified proportion of biomethane injected in a quarter determined in accordance with the following formula—

$(C - (D + E + F + G)) × H$

where—

(a) C is the lower of—

(i) the amount in kWh of all biomethane or the notified proportion of biomethane injected in that quarter, and

(ii) the amount in kWh of biomethane the participant is entitled to supply for injection in that quarterly period under the network entry agreement,

provided that the sum of the values for C in respect of a scheme year may not exceed the sum of the kWh equivalent of the maximum initial capacity specified under regulation 6(3) (determination of application for registration) and any maximum additional capacity specified under regulation 8 (additional capacity for biomethane production),

(b) D is the amount of propane in kWh contained in C,

(i) the heat in kWhth delivered in the relevant quarter to every anaerobic digester which produced the biogas from which the biomethane is made, except any heat contained in feedstock used to produce that biogas, or derived from the combustion of that biogas, or derived from a registered eligible heat pump, or

(ii) such proportion (as may be chosen by the participant and agreed by the Authority) of that heat provided that the proportion is no less than—

$XY$

where—

(aa) X is the energy content of the biogas contained in biomethane, and

(bb) Y is the energy content of all the biogas produced by that anaerobic digester,

(d) F is the amount in kWhth of heat supplied to the biomethane production process in that quarter from any heat source, other than heat generated from the combustion of biogas produced in every anaerobic digester that produced the biogas from which the biomethane is made, or derived from a registered eligible heat pump,

(e) G is, the total amount in kWh of electricity supplied to a registered eligible heat pump in that quarter, and

(f) H is, subject to regulation 9(6) and paragraph (8), the proportion of biomass contained in the feedstock used in that quarter to produce that biogas.

(3) In paragraph (2), “notified proportion of biomethane” means the proportion of biomethane which the participant specifies in a notice to the Authority as the proportion of the total amount of biomethane in kWh injected in a quarter which is to be taken into account when determining the amount of eligible biomethane for that quarter.

(4) The notified proportion of biomethane must be taken into account in determining values C to F in the formula in paragraph (2).

(5) A participant must notify the Authority of the total amount of biomethane in kWh injected in a quarter.

(6) The Authority must not make a periodic support payment to a participant in respect of any proportion of biomethane injected in a quarter where the Authority is aware that an RTF certificate has been issued under the Renewable Transport Fuel Obligations Order 2007[^f00029] in respect of that proportion of biomethane.

(7) Where a participant is registered in respect of additional biomethane which forms part of the eligible biomethane injected in the quarter referred to in paragraph (1) and the tariff for the additional biomethane differs from the tariff for any other biomethane in respect of which the participant is registered, the periodic support payment for the participant for that quarter is the sum of—

(a) the amount of eligible biomethane in kWh which is original biomethane multiplied by the tariff applicable to that biomethane determined in accordance with regulation 21 (calculation and payment of periodic support payments to participants), and

(b) the amount of any eligible biomethane in kWh which is additional biomethane multiplied by the tariff applicable to that biomethane determined in accordance with regulation 21.

(8) Where a participant uses feedstock partly derived from fossil fuel, the periodic support payment calculated in accordance with this regulation must be reduced pro rata to reflect the percentage of the energy content of gas produced by anaerobic digestion from the fossil fuel in that feedstock used by the participant in the relevant quarter.

(9) Periodic support payments in respect of a quarter ending before 1st April 2022 are not payable before that date.

(10) For the purposes of paragraph (6), “RTF certificate” has the meaning given in section 127(1) of the Energy Act 2004.

(11) In this regulation—

“registered eligible heat pump” means an eligible heat pump that is registered by the Authority under regulation 8A.

Reconciliation payments for biomethane

28

(1) This regulation applies in relation to biomethane produced for injection, including additional biomethane, where in any payment year less than 50% of the total biogas yield is derived from waste or residue.

(2) Where this regulation applies, the sum of the periodic support payments for a payment year must be reduced to the amount calculated in accordance with the following formula—

where— A is the sum of the periodic support payments for biogas or biomethane for that payment year calculated in accordance with regulation 27 (periodic support payments to producers of biomethane), and B is the proportion of the total biogas yield for that payment year which is not derived from waste or residue, expressed as a decimal and rounded to four decimal places.

(3) To account for the reduction calculated under paragraph (2), the Authority must—

(a) offset the amount by which the periodic support payments for that payment year have been reduced against periodic support payments in the subsequent payment year, or

(b) where the payment year is the participant’s final payment year, require the participant to repay the amount by which the periodic support payments for that payment year have been reduced.

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