# The Climate Change Agreements (Eligible Facilities) Regulations 2006, Regulation 3: Eligible Facilities


(1) This regulation specifies the circumstances in which, for the purposes of determining in connection with concluding or varying a climate change agreement, an installation or site is to be or is to continue to be identified in a climate change agreement as a facility to which the agreement applies.
(2) An installation or a site shall be taken to be a facility for the purposes specified in paragraph (1) only if, at the time of entering into or last varying that climate change agreement—
(a) it is an “eligible facility” under the Climate Change Agreements (Eligible Facilities) Regulations 2001, and
(b) the installation or site where taxable commodities supplied by taxable supplies are intended to be burned (or in the case of electricity, consumed) over the following 12 month period satisfies the conditions set out in paragraph (3).
(3) The conditions referred to in paragraph (2)(b) are that—
(a) the installation or site meets the energy intensity criteria, or
(b) the installation or site belongs to a business sector that meets the energy intensity criteria, and
the taxable commodities referred to in paragraph (2)(b) will be used at the installation or site for the purpose of carrying out an eligible process.
(4) For the purpose of paragraph (3)(a) and (b) the energy intensity criteria will be met where, for the period referred to in paragraph (2)(b), the predicted energy costs—
(a) amount to 10% or more of the production value of the installation or site or business sector, or
(b) amount to 3% or more but less than 10% of the production value of the installation or site or business sector so long as there is an import penetration ratio of at least 50%.
(5) For the purpose of paragraph (4), the predicted energy costs for the period referred to in paragraph (2)(b) shall be determined by the energy costs and production value and import penetration data for the installation or site or business sector during the 12 month period immediately prior to entering into or last varying a climate change agreement.

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Source: https://www.legislation.gov.uk/uksi/2006/60/regulation/3 (the official version)
Page: https://openlegislation.uk/climate-change-agreements-eligible-facilities-regulations-2006/regulation-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.