The Renewable Heat Incentive Scheme and Domestic Renewable Heat Incentive Scheme (Amendment) Regulations 2018

• Citation: S.I. 2018/635
• Sections: 23

Section 1 Citation and commencement

(1) These Regulations may be cited as the Renewable Heat Incentive Scheme and Domestic Renewable Heat Incentive Scheme (Amendment) Regulations 2018.

(2) This Part, and regulations 9(a), 14(a) and (c), and 15, come into force on 20th June 2018.

(3) Part 2 comes into force on 27th June 2018.

(4) The remainder of these Regulations comes into force on 1st October 2018.

Section 2 Amendments to the Domestic Renewable Heat Incentive Scheme Regulations 2014

The Domestic Renewable Heat Incentive Scheme Regulations 2014 are amended in accordance with this Part.

Section 3 Amendments to regulation 2 (interpretation)

In regulation 2(1), for the definition of “investor” substitute—

“investor” means a person who provides funding in relation to any of the cost of the purchase or installation of a plant in return for RHI payments and enters into a contract with an applicant or participant in respect of such arrangement, or a person who intends to do so;

Section 4 Amendments to regulation 22A (investor applications)

For regulation 22A(1) substitute—

(1) An investor may apply to the Authority, on or after 27th June 2018, to be registered as an RI for the purposes of these Regulations.

Section 5 New regulation 26A (investors and RHI payments)

After regulation 26 insert—

Investors and RHI payments

(26A) In relation to an accredited domestic plant with a tariff start date on or after 27th June 2018, an investor may only receive RHI payments, directly or indirectly, if they are an NRI.

Section 6 Amendments to regulation 39 (ongoing obligations: general)

In regulation 39—

(a) after paragraph (l) omit “and”,

(b) after paragraph (m) insert—

; and

(n) in relation to an accredited domestic plant with a tariff start date on or after 27th June 2018, P must ensure that RHI payments are not made to an investor, directly or indirectly, unless the investor is an NRI

Section 7 Amendment to Schedule 4 (information required for accreditation)

In paragraph 1(g) of Schedule 4, after “RHI payments” insert “or MM payments”.

Section 8 Amendments to the Renewable Heat Incentive Scheme Regulations 2018

The Renewable Heat Incentive Scheme Regulations 2018 are amended in accordance with this Part.

Section 9 Amendments to regulation 2 (interpretation)

In regulation 2(1)—

(a) in the definition of “commissioned”—

(i) after “in relation to an eligible installation”, insert “or equipment used to produce biomethane for injection”,

(ii) after “that type of eligible installation”, insert “or equipment used to produce biomethane for injection”, and

(iii) after “installed”, insert “, or producing biomethane for injection”,

(b) for the definition of “date of accreditation” substitute—

“date of accreditation” means in relation to an accredited RHI installation which is—

not a replacement plant, the later of—

the first day which falls on or after the date of receipt by the Authority of the application for accreditation on which, in the Authority’s opinion, both—

the application was properly made, and

the plant met the eligibility criteria; and

the day on which the plant was first commissioned; or

a replacement plant, the date of accreditation of the original plant;

(c) after the definition of “large installation” insert—

“local and national laws” means laws applying in the locality in which the site is situated, whether made at a local or national level;

(d) after the definition of “original biomethane” insert—

“original plant” means an accredited RHI installation which is replaced by a replacement plant;

(e) after the definition of “relevant tariff” insert—

“replacement plant” means a plant which is installed in place of an original plant and uses the same source of energy and technology as the original plant;

Section 10 Amendments to regulation 3 (renewable heat incentive scheme)

(1) In regulation 3(5)(b)—

(a) in paragraph (i) for “(7) or (8)” substitute “(7), (8), (8A) or (8B)”,

(b) in paragraph (ii), at the end insert “, except where the heat is generated by an installation to which paragraph (8B) applies”,

(c) in paragraph (iii), at the end insert “, except where the heat is generated by an installation to which paragraph (8B) applies”.

(2) After regulation 3(8) insert—

(8A) This paragraph applies to a replacement plant where paragraph (7) or (8) applied to the original plant.

(8B) This paragraph applies to a replacement plant where paragraph (6) did not apply to the original plant.

Section 11 Amendments to regulation 4 (eligible installations)

(1) In regulation 4(1)(b)—

(a) at the end of paragraph (ii) omit “and”,

(b) for paragraph (iii) substitute—

(iii) regulation 17A; and

(iv) Chapter 3

(2) In regulation 4(2) for “and 20” substitute “, 20 and 55A(5)”.

Section 12 Amendment to regulation 17 (planning permission)

In regulation 17, for “4(b)(ii)” substitute “4(1)(b)(ii)”.

Section 13 New regulation 17A (environmental permits and declaration of compliance)

After regulation 17 insert—

Environmental permits and declaration of compliance

(17A) The requirements referred to in regulation 4(1)(b)(iii) are that, where an application for accreditation is made on or after 1st October 2018—

(a) any necessary environmental permits are held in relation to the plant; and

(b) a declaration is made that the plant complies, and will continue to comply, with all local and national laws including those relating to the protection of the environment.

Section 14 Amendments to regulation 32 (producers of biomethane)

In regulation 32—

(a) after paragraph (4) insert—

(4A) Where a producer of biomethane for injection makes an application for registration on or after 20th June 2018, the Authority must not register an applicant unless—

(a) the applicant has specified the biogas production plant to be used for the purposes of its registration; and

(b) the equipment used to produce biomethane has been commissioned.

(b) after paragraph (12) insert—

(12A) Where an application for registration is made on or after 1st October 2018, the Authority must not register an applicant unless—

(a) any necessary environmental permits have been granted in respect of the processes by which the biogas which is used to produce the biomethane is produced, the biogas is converted into biomethane, or the biomethane is injected; and

(b) a declaration is made that the processes by which the biogas which is used to produce the biomethane is produced, the biogas is converted into biomethane, or the biomethane is injected comply, and will continue to comply, with all local and national laws including those relating to the protection of the environment.”,

(c) after paragraph (13)(c) insert—

(d) in the case of an application for registration made on or after 20th June 2018, may refuse to register an applicant where the Authority is satisfied that the biogas production plant specified in accordance with paragraph (4A)(a) has been used for the purposes of the registration of any other participant

Section 15 Amendment to regulation 34 (preliminary registration of biomethane producers)

In regulation 34(9) after “32(4)” insert “, (4A),”.

Section 16 Amendments to regulation 43 (ongoing obligations: general)

In regulation 43—

(a) after paragraph (x) insert—

(xa) where regulation 32(12A) applied to their application for registration, participants must ensure that any necessary environmental permits and local and national laws including those relating to the protection of the environment continue to be complied with in respect of the processes by which the biogas which is used to produce the biomethane is produced, the biogas is converted into biomethane, and the biomethane is injected;”,

(b) after paragraph (y) insert—

(z) they must notify the Authority within 28 days of the installation of a replacement plant; and

(z1) they must ensure that any necessary environmental permits, and local and national laws including those relating to the protection of the environment, continue to be complied with by the plant

Section 17 Amendments to regulation 45 (ongoing obligations in relation to metering)

In regulation 45—

(a) at the beginning of paragraph (4) insert “Subject to paragraph (4A), ”,

(b) after paragraph (4) insert—

(4A) On or after 1st October 2018, estimated data may only be used in accordance with paragraph (4)—

(a) in a maximum of eight quarterly periods in relation to each installation; and

(b) where it would not lead to periodic support payments already made being revised.”.

Section 18 Amendment to regulation 52 (review of accreditation or registration following notification of a change in circumstances)

In regulation 52(1)(b) for “54 and 55” substitute “54, 55 and 55A”.

Section 19 New regulation 55A (replacement plants)

After regulation 55 insert—

Replacement plants

(55A)

(1) Where a replacement plant is installed—

(a) an accreditation application for that plant may be made by the owner of the replacement plant if that person is a participant in relation to the original plant; and

(b) no periodic support payments are payable for the period commencing with the date on which the original plant ceased to provide heat and ending with the day before the date on which the Authority received the accreditation application for the replacement plant.

(2) Where a replacement plant has a greater capacity than the original plant, no periodic support payments may be made in respect of any capacity above that of the original plant.

(3) The tariff to be used for the purpose of calculating periodic support payments for a replacement plant is the tariff which would have applied to the original plant, had it not been replaced.

(4) Where a replacement plant has a lower capacity than the original plant and regulation 63 applies, initial heat (within the meaning given in regulation 63(3), (4) or (5)) is to be calculated using the installation capacity of the replacement plant.

(5) A replacement plant meets the criteria for being an eligible installation if it meets the eligibility criteria applicable as at the date of accreditation of the original plant except that, in the case of a replacement plant which is an installation generating heat from solid biomass, regulation 5 must apply to the replacement plant itself.

Section 20 Amendment to regulation 59 (calculation and payment of periodic support payments to participants)

In regulation 59(1), for “55” substitute “55A”.

Section 21 Amendment to regulation 89 (reporting obligations)

At the beginning of regulation 89(1)(a)(ii), insert “except in the case of a replacement plant,”.

Section 22 Amendments to Schedule 2 (information required for accreditation or registration)

In paragraph 1(2) of Schedule 2—

(a) in paragraph (i), at the beginning insert “in the case of a plant which is not a replacement plant,”,

(b) after paragraph (i) insert—

(ia) in the case of a replacement plant, evidence that any equipment that did not form part of the original plant was new at the time of installation

(c) in paragraph (j) after “eligible installation” insert “which is not a replacement plant”,

(d) after paragraph (cc) insert—

(dd) evidence which demonstrates to the satisfaction of the Authority that—

(i) any necessary environmental permit has been granted; or

(ii) an environmental permit is not required.”.

Section 23 Amendment to Schedule 4 (land criteria)

In paragraph 2 of Schedule 4, omit the definition of “local and national laws”.