{
  "url": "https://openlegislation.uk/eu-regulation-2019-1842/article-3za",
  "json_url": "https://openlegislation.uk/eu-regulation-2019-1842/article-3za.json",
  "legislation": "eur/2019/1842",
  "legislation_title": "Commission Implementing Regulation (EU) 2019/1842 of 31 October 2019 laying down rules for the application of Directive 2003/87/EC of the European Parliament and of the Council as regards further arrangements for the adjustments to free allocation of emission allowances due to activity level changes",
  "legislation_url": "https://openlegislation.uk/eu-regulation-2019-1842",
  "path": "article/3za",
  "kind": "article",
  "number": "3za",
  "heading": "Ceasing operation: free allocation for last year of operation based on activity level in last year, etc.",
  "text": "1. This Article applies where:\n(a) an FA installation ceases operation in a scheme year (the “last FA year”);\n(b) except where the installation has ceased operation in a previous scheme year, the surrender or revocation of an FA installation’s greenhouse gas emissions permit takes effect in a scheme year (the “last FA year”); or\n(c) a sub-installation of an FA installation ceases operation in a scheme year (the “last FA year”) but the FA installation as a whole does not.\n2. The regulator must:\n(a) based on the report on activity levels in the last FA year, determine the activity level in that year:\n(i) where paragraph 1(a) or (b) applies, of each sub-installation of the installation;\n(ii) where paragraph 1(c) applies, of the sub-installation referred to in that point; and\n(b) in respect of each sub-installation referred to in point (a):\n(i) where the historical activity level of the sub-installation has previously been determined, calculate:\n(aa) an adjustment to free allocation for the last FA year by recalculating the preliminary and final annual number of allowances to be allocated in respect of the sub-installation using the activity level determined under point (a) instead of the historical activity level of the sub-installation; and\n(bb) an adjustment to free allocation so that it is zero for the scheme years following the last FA year;\n(ii) where the historical activity level of the sub-installation has not previously been determined, calculate the preliminary and final annual number of allowances to be allocated in respect of the sub-installation for the last FA year in accordance with Article 3a(3)(b) and (c) using the activity level determined under point (a) of this paragraph.\n3. Where paragraph 2 requires the regulator to determine a sub-installation’s activity level in the last FA year, Articles 3a to 6 do not apply in relation to that sub-installation (but, where relevant, those Articles continue to apply in relation to any other sub-installation of the installation upon submission of the report on activity levels in the last FA year).\n4. This Article is subject to Article 3zb (which provides that in certain circumstances the adjustment referred to in paragraph 2(b)(i)(aa) must not be calculated).",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Arts. 3za-3zc inserted (2.2.2025) by The Greenhouse Gas Emissions Trading Scheme (Amendment) Order 2025 (S.I. 2025/100), arts. 2(2), 14 (with art. 20(1)(2))"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eur/2019/1842/article/3za",
    "retrieved_at": "2026-11-01T14:43:02.825885+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}