I apologise to the House for the delay. It is typical that I should do that when the new Leader has just arrived and when my possible reappointment is still under consideration.
Amendment 67 ensures that regulations requiring provision of security for decommissioning can capture obligations relating to “carbon dioxide related” installations, sites and pipelines. It also clarifies that the power extends to both onshore and offshore assets.
Amendment 69 expands the class of people who may be required to provide security in respect of their carbon capture usage and storage decommissioning obligations. This includes an economic licence holder under Clause 7, or someone to whom a notice has been, or may be, given for the preparation of an abandonment programme under the Petroleum Act 1998. Amendment 68 amends the label to “relevant person” so it is more consistent with this revised definition. Amendments 73, 77 and 85 are consequential to those amendments.
Amendment 70 introduces a broader definition of decommissioning costs. This is to ensure that the regulations requiring provision of security reflect the full range of decommissioning obligations. These obligations include such things as the decommissioning of infrastructure and the post-closure monitoring obligations as set out in the Government’s 2021 consultation. Amendments 71, 72, 74, 83 and 89 are consequential.
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Amendment 80 broadens the type of matters relating to decommissioning funds that may be covered in guidance. For example, it may include guidance on the structure, accrual and management of decommissioning funds, as well as guidance about the methodology for calculating the decommissioning costs. This amendment also removes the duty on the Secretary of State to publish guidance under Clause 82. However, it leaves open the possibility that a similar duty may be imposed via regulations. Amendment 82 is consequential on Amendment 80.
Amendment 75 introduces the defined-term decommissioning fund and ensures that all costs included in the amended definition of decommissioning costs can be covered by such a fund. Amendments 76, 79 and 83 make consequential changes to the rest of the clause to ensure consistency.
Amendment 78 enables certain functions to be conferred on the Oil and Gas Authority in addition to the Secretary of State and the economic regulator, which is Ofgem.
Amendment 84 makes consequential changes to the definitions in Clause 82, as a result of Amendment 78 and other proposed amendments to this clause.
Amendment 87 ensures that there is no misalignment in terms of the persons on whom requirements may be imposed between Clauses 82 and 83.
Amendment 88 enables the Secretary of State to make amendments to the relevant licensing regulations for carbon dioxide storage in Northern Ireland as well. The regime for decommissioning funds will apply UK-wide. This amendment will help to ensure that there is regulatory consistency across Great Britain and Northern Ireland in relation to those decommissioning funds.
In this grouping we also have Amendment 81 tabled by the noble Lord, Lord Lennie, which seeks to expand the scope of guidance for decommissioning funds. The purpose is to require that it must consider where financial responsibility lies at the end of the CCUS lifecycle when that asset is due to be decommissioned. The Government of course acknowledge the complexities where a former petroleum installation is repurposed for carbon storage purposes. That scenario is addressed by the change-of-use relief provisions in Clauses 85, 86, and 87.
Clauses 85 and 86 amend Section 30A of the Energy Act 2008, updating the existing legislation to bring it in line with current government ambitions for CCUS. Clause 87 gives the Secretary of State a power to make regulations regarding the provision of information where this relates to change-of-use relief. However, it will not be necessary to rely solely on guidance to deal with that situation. That is because the existing law in Part IV of the Petroleum Act 1998, combined with the amendments to Sections 30A and 30B of the Energy Act 2008 provided for by Clauses 85 and 86, already provides the necessary safeguards.
In short, any person required by Part IV of the Petroleum Act 1998 to supply and carry out an abandonment programme in respect of an offshore petroleum installation will not qualify for relief from that obligation unless the Secretary of State has designated the asset as eligible for this relief and other qualifying requirements are met.
The proposed amendments to Sections 30A and 30B of the Energy Act 2008 also mean that, to qualify for change-of-use relief, the previous oil and gas owner would need to pay a top-up amount into the decommissioning fund to reflect the decommissioning liability that the previous owner is being relieved of. Therefore, there is no further need to set out in guidance where financial responsibility lies for any reused assets.
Amendment 86 was tabled by the noble Baroness, Lady Liddell of Coatdyke, and the noble Lord, Lord Foulkes, who I am sorry to say are not with us. This amendment concerns the protection of a licence holder’s commercially sensitive information. It does this by enabling certain commercially sensitive information to be protected from certain disclosure requirements contained in Part 1 and Part 2. These provisions, as drafted, enable the Secretary of State and economic regulator to be able to access information that is necessary for the conduct of their functions.
It may be appropriate in some cases for the economic regulator to provide such information to relevant regulatory bodies or entities on whom powers or duties have been conferred by legislation, such as the counterparty to the emitter contracts or to obtain relevant information from those entities to ensure that decision-making is robust and takes into account all relevant considerations. Meanwhile, provision has been made in Clauses 26 and 27 to confirm that appropriate data protection requirements would continue to apply.
I beg to move Amendment 66. I would request that the noble Lord, Lord Foulkes, and the noble Baroness, Lady Liddell, not move their amendment, but I guess that if they are not here they will not be moving it in any case.