Explanatory note

These Regulations form part of the implementation by the United Kingdom of Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (OJ No L 140, 5.6.2009, p.114.) (“the Directive”). In particular, they implement Article 15 of the Directive on the inspection of carbon dioxide storage complexes.

The Directive is chiefly implemented by Part 1, Chapter 3 of the Energy Act 2008 (c.32) and by the Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 (S.I. 2010/2221) (the “2010 Regulations”), which are amended by these Regulations.

Regulation 3(a) inserts new definitions in the 2010 Regulations. Regulation 3(b) amends the definition of “licensing authority” in the licensing regulations is amended so that those regulations apply whenever the Secretary of State is the licensing authority under section 18(2) of the Energy Act 2008, including in respect of activities that take place partly in the territorial sea adjacent to Scotland and partly outside that sea.

Regulation 4 inserts into the 2010 Regulations new regulations 16 to 20, which provide for the routine inspection of carbon dioxide storage complexes and for additional inspections. Reports of the results of those inspections must be produced, provided to the operator and added to the public register provided for under section 29 of the Energy Act 2008. The Secretary of State may appoint inspectors, whose powers are set out in a new Schedule 3 to the 2010 Regulations. Provision is made for the way in which evidence obtained by the inspectors through the use of those powers may be used. Offences are created concerning the obstruction of inspectors, failure to comply with requirements imposed under the 2010 Regulations and the provision of false information in connection with an investigation.

Schedule 2 to the 2010 Regulations, which sets out the provisions that are to be included in a storage permit, is amended by regulation 5 such that the financial security maintained by the operator must be sufficient to pay the financial contribution required under the Storage of Carbon Dioxide (Termination of Licences) Regulations 2011 (S.I. 2011/1483).

Regulation 7 requires the Secretary of State to review the operation and effect of regulations 2 to 6 and publish a report within five years after they come into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Regulations should remain as they are, or be revoked or be amended. A further instrument would be needed to revoke the Regulations or to amend them.

A full impact assessment of the effect that this instrument will have on the costs of business and the voluntary sector has been prepared and is published with the Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.

A Transposition Note setting out how these Regulations implement the relevant provisions of the Directive is annexed to the Explanatory Memorandum that is available alongside the instrument on www.legislation.gov.uk.

Copies of the Impact Assessment and Transposition Note are also available from Ricki Kiff, Department of Energy and Climate Change, 3 Whitehall Place, London SW1A 2AW.