Regulation 7 Borrowing of landfill allowances

(1)

A waste disposal authority may borrow for use in a scheme year up to 5% of the landfill allowances available to it for the following scheme year (rounded down to the nearest whole allowance).

(2)

Paragraph (1) does not apply—

(a)

in a target year,

(b)

where the following year is a target year.

(3)

Where a waste disposal authority intends to borrow a landfill allowance it must submit a borrowing request to the monitoring authority before the end of the reconciliation period for the scheme year.

(4)

A borrowing request must—

(a)

be made on the form provided by the monitoring authority;

(b)

specify—

(i)

the name of the waste disposal authority,

(ii)

the number of landfill allowances which it intends to borrow.

(5)

The monitoring authority is not required to consider a borrowing request unless it is made in accordance with paragraph (4).

(6)

If the conditions in paragraph (8) are satisfied the monitoring authority must–

(a)

remove the number of landfill allowances specified in the borrowing request from the part of the waste disposal authority’s landfill allowance account relating to the following scheme year;

(b)

include those allowances in the part of the account relating to the scheme year;

(c)

notify the waste disposal authority which made the request—

(i)

that its request has been accepted,

(ii)

of the amendments that have been made to its landfill allowance account.

(7)

If the conditions in paragraph (8) are not satisfied the monitoring authority must notify the waste disposal authority—

(a)

that its request has not been accepted,

(b)

of the reasons why.

(8)

The conditions referred to in paragraphs (6) and (7) are that–

(a)

the borrowing request complies with paragraph (2),

(b)

the number of landfill allowances specified in the request are available to the waste disposal authority for the following scheme year,

(c)

accepting the borrowing request would not cause the waste disposal authority to exceed the limit on borrowing under paragraph (1), and

(d)

the authority is not suspended from borrowing landfill allowances under regulation 9.