I posted earlier on the Energy Bill Emissions Performance Standard (EPS) and the House of Lords (HL) amendment (which is not agreed – House of Commons vote 4th December) – this (updated) post is here.
A further HL amendment (subject to the vote of the House of Commons) inserts a new clause to exempt new fossil-fuel plant equipped with Carbon Capture and Storage (CCS) from the emissions limit duty (the Emissions Performance Standard) for a period of 3 years starting from the date when a complete CCS system (capture, transport and storage) is ready for use. This exemption would be time-limited and available until the end of 2027. This is agreed in the House of Commons (vote 4th December).
The further HL amendments applicable to CCS are –
– Existing powers available under Schedule 4 (to enable the exemption to be applied with modifications) to be amended so that the exemption could be applied to only those parts of a fossil fuel plant that are fitted with a complete CCS system.
– Clause 50(5) of the Bill to make clear the emissions limit duty introduced by clause 50(1) is subject to the CCS exemption.
– Paragraph 3 of Schedule 4 (which contains the power to make regulations under clause 50(6)(b)) to modify the emissions limit duty where a gasification plant or a CCS plant is associated with two or more electricity generating stations.
– The power under paragraph 4 of Schedule 4 to be amended so that the emissions limit duty could be adjusted to take account of particular circumstances. For example, if the CCS exemption starts to apply to a fossil fuel plant part way through a calendar year then any existing emissions limit would need to be adjusted to take account of the exemption’s application.
These are also agreed in the House of Commons (vote 4th December).
Please note Carbon Capture and Storage is subject to environmental permitting in any event.
Per the 4th December debate – “Lords amendments 60 to 62 and 106 to 108 provide that, as I told the House earlier, fossil fuel plants with a complete system for carbon capture and storage will be exempt from the emissions performance standard for three years, starting from the point at which a project is brought into operation. The matter was raised early in the Bill’s passage through this House, and I hope that such a policy amendment is welcome. The exemption will be available to all future carbon capture and storage projects until the end of 2027.”