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STATUTORY INSTRUMENTS
2026 No. 826
CLIMATE CHANGE LEVY
The Climate Change Agreements (Administration,
Energy-intensive Installations and Eligible Facilities)
(Amendment and Revocation) Regulations 2026
Made - - - - 7th July 2026
Coming into force - - 1st January 2027
The Treasury make regulations 1 to 5 and 8 below in exercise of the powers conferred by paragraphs
52(1), 52(2)(a) and 146(7) of Schedule 6 to the Finance Act 2000(1).
The Secretary of State makes regulations 1, 6 and 7 below in exercise of the powers conferred by
paragraphs 50(3), 50(4), 52D(1) to (3), 52E(1)(a), 52E(2) and 146(7) of Schedule 6 to that Act(2).
In accordance with paragraph 146(3) of that Schedule, a draft of the instrument was laid before,
and approved by a resolution of, the House of Commons.
Citation and commencement
1. These Regulations may be cited as the Climate Change Agreements (Administration, Energy-
intensive Installations and Eligible Facilities) (Amendment and Revocation) Regulations 2026 and
come into force on 1st January 2027.
Interpretation
2. In these Regulations—
“aircraft” includes gliders and missiles;
“coating material” means paint, printing ink, varnish, lacquer, dye, any metal oxide coating,
any adhesive coating, any elastomer coating, any metal or plastic coating and any other coating
material;
“data facility” means a room, or rooms sharing the same electricity supply circuit, occupied
mainly or exclusively by computer equipment which is enabled to transfer data electronically,
and where in respect of the room or rooms—
(1) 2000 c. 17.
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(a) the temperature and humidity are regulated in connection with the operation of the
computer equipment,
(b) the electricity supply is at least 200kW, and
(c) electricity is supplied by a back-up electricity supply when the mains supply is
interrupted;
“eligible process” means a process or activity, or a combination of processes or activities,
carried out at the relevant installation, as described in the Schedule to these Regulations;
“food” includes—
(a) drink,
(b) articles and substances of no nutritional value which are used for human consumption,
and
(c) articles and substances used as ingredients in the preparation of food;
“hazardous waste” means waste which displays any of the characteristics listed in Annex III
of the Waste Framework Directive;
“installation”(3) means a stationary technical unit;
“recovery” has the same meaning as in the Waste Framework Directive and related terms are
to be construed accordingly;
“semi-processing” means debarking and sawing an unprocessed log;
“spirit drink” has the same meaning as in Regulation (EC) 110/2008(4) of the European
Parliament and of the Council on the definition, description, presentation, labelling and the
protection of geographical indications of spirit drinks;
“unprocessed log” means a log from which the branches have been removed, but to which no
other processing has been applied;
“waste” means anything that—
(a) is waste within the meaning of Article 3(1) of the Waste Framework Directive, and
(b) is not excluded from the scope of that Directive by Article 2(1), (2) or (3) of that
Directive;
“the waste classification technical guidance” means the document titled “Waste Classification:
Guidance on the classification and assessment of waste (1st Edition v1.2.GB) Technical
Guidance WM3” published by the Environment Agency, Natural Resources Wales and the
Scottish Environment Protection Agency on 28 September 2021(5);
“waste co-incineration plant” means any installation whose main purpose is the generation of
energy or production of material products and which uses waste as a regular or additional fuel
or in which waste is thermally treated for the purpose of disposal through the incineration by
oxidation of waste as well as other thermal treatment processes, such as pyrolysis, gasification
or plasma process, if the substances resulting from the treatment are subsequently incinerated;
“the Waste Framework Directive” means Directive 2008/98/EC(6) of the European Parliament
and of the Council on waste, as last amended by Directive (EU) 2018/851(7) and read in
accordance with regulation 3;
(3) Paragraph 50(6) of Schedule 6 to the Finance Act 2000.
(4) EUR 2008/110, amended by S.I. 2020/1637.
(5) The document is available electronically at https://www.gov.uk/government/publications/waste-classification-technical-
guidance. A person unable to access the document electronically can arrange access to a hard copy for inspection free of
charge at 1 Horse Guards Road, London SW1A 2HQ.
(6) OJ No. L 312, 22.11.2008, p. 3.
(7) OJ No. L 150, 14.06.2018, p. 109.
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“waste incineration plant” means any installation and equipment dedicated to the thermal
treatment of waste, with or without recovery of the combustion heat generated, through the
incineration by oxidation of waste as well as other thermal treatment processes, such as
pyrolysis, gasification or plasma process, if the substances resulting from the treatment are
subsequently incinerated.
Modification to the Waste Framework Directive
3.—(1) For the purposes of the interpretation of these Regulations, the Waste Framework
Directive is to be read as follows.
(2) Article 2 is to be read as if—
(a) in paragraph 2—
(i)in the words before point (a), for “other Community legislation” there were
substituted “assimilated law”;
(ii)in points (b) and (c), for “Regulation (EC) No 1774/2002” there were substituted
“Regulation (EC) No 1069/2009(8)”;
(iii)in point (d), for the words from “Directive 2006/21/EC(9)” to the end there were
substituted “Article 2(1) of the Mining Waste Directive, and not excluded by Article
2(2) of that Directive”;
(b) in paragraph 3, the words from “Without prejudice” to “Community legislation,” were
omitted.
(3) Annex III is to be read as if—
(a) in entry HP 9 (“infectious”), in the second sentence, for the words from “reference” to the
end substitute “Part C9 of Appendix C to the waste classification technical guidance.”;
(b) in entry HP 15 (“waste capable of exhibiting a hazardous property listed above but not
directly displayed by the original waste”), in the sentence after the table, for the words
from “In addition” to the end substitute “The attribution of HP 15 shall be assessed by the
rules laid down in Part C15 of Appendix C to the waste classification technical guidance.”;
(c) in the entry for test methods, for the words from “other relevant CEN notes” to the end
substitute “Appendix D to the waste classification technical guidance.”.
Meaning of the Mining Waste Directive
4.—(1) In regulation 3(2)(a)(iii), “the Mining Waste Directive” means Directive 2006/21/EC of
the European Parliament and of the Council on the management of waste from extractive industries,
read in accordance with paragraph (2).
(2) Article 2 is to be read as if “waste” were defined as in Article 3(1) of the Waste Framework
Directive.
Energy-intensive Installations
5.—(1) The energy-intensive installations covered by paragraph 51 of Schedule 6 to the
Finance Act 2000(10) (“paragraph 51”) include any installation described in the Schedule to these
Regulations where a relevant eligible process is carried out.
(2) But paragraph (3) applies where—
(8) EUR 2009/1069, amended by S.I. 2020/1388; there are other amending instruments but none is relevant.
(9) OJ No. L 102, 11.04.2006, p. 15, as amended by Regulation (EC) No 596/2009 of the European Parliament and of the Council
(OJ No. L 188, 18.07.2009, p. 14).
(10) Paragraph 51 has been amended by S.I. 2001/1139, 2006/1848, 2007/3538, 2010/675 and 2016/1154.
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(a) an installation falls within paragraph (1), and
(b) there is, on the same site as that installation, at least one location at which ancillary
activities are carried out.
(3) An installation to which this paragraph applies (taken alone) is not covered by paragraph
51, but the combination of that installation and every such location is to be taken as an installation
so covered.
(4) In paragraph (2), “ancillary activities” are only—
(a) those that are directly associated with any of the primary activities carried out in the
installation,
(b) have a technical connection with those primary activities, and
(c) could have an effect on environmental pollution.
(5) In paragraph (4)—
“primary activities”, in relation to an installation falling within paragraph (1), refers to an
activity the carrying out of which at the installation results in the installation falling within
paragraph (1);
“environmental pollution” bears the same meaning as in the Pollution Prevention and Control
Act 1999(11).
Amendment of the Climate Change Agreements (Eligible Facilities) Regulations 2012
6.—(1) The Climate Change Agreements (Eligible Facilities) Regulations 2012(12) are amended
as follows.
(2) In regulation 2 (interpretation)—
(a) omit the following definitions—
(i)the Waste Framework Directive;
(ii)aircraft;
(iii)coating material;
(iv)data facility;
(v)eligible process;
(vi)food;
(vii)hazardous waste;
(viii)recovery;
(ix)semi-processing;
(x)unprocessed log;
(xi)waste;
(11) 1999 c. 24. Section 1(2) and (3) define “environmental pollution” as pollution of the air, water or land which may give rise
to any harm; and, for the purposes of the definition (but without prejudice to its generality), (a) “pollution” includes pollution
caused by noise, heat or vibrations or any other kind of release of energy, and (b) “air” includes air within buildings and air
within other natural or man-made structures above or below ground. “Harm” means (a) harm to the health of human beings
or other living organisms; (b) harm to the quality of the environment, including (i) harm to the quality of the environment
taken as a whole, (ii) harm to the quality of the air, water or land, and (iii) other impairment of, or interference with, the
ecological systems of which any living organisms form part; (c) offence to the sense of human beings; (d) damage to the
property; or (e) impairment of, or interference with, amenities or other legitimate uses of the environment (expressions here
having the same meaning as in Council Directive 2010/75/EC (OJ No. L 334, 17.12.2010, p. 17). In fact, the definition of
“pollution” in Article 3(2) for the purposes of that Directive includes “the ... introduction as a result of human activity, of
substances, vibrations, heat or noise into the air, water or land which may … impair or interfere with amenities and other
legitimate uses of the environment”.
(12) S.I. 2012/2999, amended by S.I. 2013/505, 2014/1318, 2016/738, 2018/942, 2020/904, 2023/1226, 2025/813.
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(xii)waste incineration plant;
(xiii)waste co-incineration plant.
(b) in sub-paragraph (b) of the definition of “installation” omit “carrying out an eligible
process”;
(3) Omit the Schedule (list of processes and activities).
Amendment to the Climate Change Agreements (Administration) Regulations 2012
7. In the Climate Change Agreements (Administration) Regulations 2012(13), in regulation 12(3)
(h), for “0.0497” substitute “0.0498”.
Consequential amendment and revocation
8.—(1) In the Climate Change Agreements (Miscellaneous Amendments) Regulations 2006(14),
omit regulation 3.
(2) The Climate Change Agreements (Energy-intensive Installations) Regulations 2006(15) are
revoked.
Deirdre Costigan
Christian Wakeford
Two of the Lords Commissioners of His
7th July 2026 Majesty’s Treasury
Chris McDonald
Minister of State
6th July 2026 Department for Energy Security and Net Zero
(13) S.I. 2012/1976; relevant amending instruments are S.I. 2016/1189, 2020/958, 2020/1470, 2023/1226 and 2025/813.
(14) S.I. 2006/1848.
(15) S.I. 2006/59.
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Schedule Regulation 5(1)
Descriptions of Installations and Eligible Processes
Each of the following descriptions includes a stipulation that the installation does not fall within any
one or more of the descriptions of installation set out in the Table in paragraph 51 of Schedule 6
to the Finance Act 2000.
1. At an installation where—
(a) nitrogen, oxygen or argon is separated from air, and then compressed or liquefied, or
(b) nitrogen, oxygen and argon are separated from air, and then made into a compressed or
liquefied mixture of at least two of the former,
the eligible process is separating the above substances from air using one or more of the following air
separation technologies: cryogenic distillation, pressure swing adsorption, vacuum swing adsorption
or membrane separation, compressing and liquefying the separated substances, pumping them (in
a compressed or liquefied form) from within the installation for further use within or outside the
installation.
2. At an installation where kaolinitic clay in combination with any of its accessory minerals is
extracted and processed, the eligible processes are as follows: blasting and crushing, dry mining
or hydraulic mining, refining, blending, drying and packaging, classifying, hydrocloning, pumping,
centrifuging, grinding, shredding, magnetic separating, bleaching, pressing, pugging, milling and
micro-separating.
3. At an installation where calcium carbonate based minerals are processed for use as filler or
whitener, the eligible processes are as follows: crushing, drying, milling, classifying, screening and
packaging.
4. At an installation where pre-formed or manufactured metal components are heat-treated to
facilitate their efficient formability or to enhance their service performance, the eligible processes
are all processes and activities involved in any such heat treatment.
5. At an installation where (in controlled, environment-protected structures) horticultural crops
are grown, harvested and receive primary preparation for market, the eligible processes are as
follows: planting, seeding, heating, lighting, ventilating, irrigating, fertilising, cooling, preparing
and sterilising growing media, grading and conveying.
6. At an installation where textiles are manufactured, the eligible processes are as follows:
spinning, weaving, knitting, and finishing, but the eligible processes do not include printing or
dyeing.
7. At an installation where plastic film is produced using extrusion to convert melted polymer
into blown or cast film, the eligible processes are all processes and activities involved in any such
production.
8. At an installation where geosynthetic materials comprising at least one component made from
a synthetic or natural polymer in the form of a sheet, strip or other three-dimensional structure are
manufactured for use in geotechnical or civil engineering applications, the eligible processes are all
processes and activities involved in any such manufacture.
9. At an installation where silica sand in combination with any associated minerals is extracted,
processed and packaged, the eligible processes are as follows: blasting, quarrying, crushing,
classifying, milling, pumping, grinding, acid leaching, drying and packaging.
10. At an installation where potassium chloride is extracted, separated, and purified to produce
potash and high-grade soluble potassium chloride, the eligible processes are as follows: sub-surface
mining of sylvinite and other halite minerals, separating potassium chloride from those minerals and
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purifying it including crushing, grinding, froth flotation, drying, compacting, grading and, where
relevant, recrystallising it from supersaturated brine.
11. At an installation where glass products or chemicals using glass as a base material are
produced from raw materials, pre-formed glass or cullet for use as reflective additives in road
markings or of size and shape suitable for incorporation in vehicles, spacecraft or vessels, the eligible
processes are as follows: partial melting, fusing, bending, toughening, cutting, grinding, etching,
polishing (both mechanical and chemical), surface treating and drying.
12. At an installation that is either a building where the predominant business activity is
commercial temperature controlled storage or product freezing, or is on a site, and in that building
or on that site products are—
(a) cooled or frozen for the purposes of storing them under controlled temperatures below
ambient levels or producing ice, or
(b) stored under controlled temperatures below ambient levels,
the eligible processes are all processes and activities involved in any such cooling, freezing or
storage.
13. At an installation where plastic materials, or plastic products (whether or not these are
finished products), are produced by—
(a) the application of heat and pressure to, or
(b) a chemical reaction involving,
plastics powder, granules, shredded waste or liquid, the eligible processes are as follows:
injection moulding, reaction injection moulding, compression moulding (including hot and cold
press moulding), transfer moulding, structural foam moulding, direct screw transfer moulding,
rotational moulding (including slush moulding), flexible foam moulding (including dual component
processing), blow moulding, casting, expanded polystyrene moulding, expandable materials
processing, mixing and compounding, calendering, powder coating (including dip moulding),
sintering, thermoforming (including vacuum forming), pultrusion, filament winding, spread coating,
hand lay-up and resin transfer moulding.
14. At an installation where refined salt for use in food products or supplements is prepared or
processed from minerals, the eligible processes are any such preparation or processing.
15. At an installation (but not a launderette predominantly offering self-service washes or
predominantly serving the domestic market) where textiles are laundered by washing with water,
drying and smoothing, the eligible process is any such laundering, except where such laundering is
carried out in support of other activities carried out by the business (not being textile rental activities),
whether or not such activities are carried out at the installation or site.
16. At an installation, or at an installation on a site, where natural gas is reformed, the eligible
process is any such reformation.
17. At an installation where the further refining, conversion or use (otherwise than as a fuel or
solvent) of the product of any of the following activities—
(a) refining mineral oils;
(b) the loading, unloading, handling or storage of, or the physical, chemical or thermal
treatment of—
(i)crude shale oil;
(ii)where related to another activity described in sub-paragraph (b), any associated gas
or condensate; or
(iii)emulsified hydrocarbons intended for use as a fuel,
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is carried out in the manufacture of a chemical, the eligible processes are any such
refinement, conversion or use.
18. At an installation where unsaturated hydrocarbon or vinyl chloride (other than a pre-
formulated resin or pre-formulated gel coat which contains any unsaturated hydrocarbon) is
polymerised or co-polymerised, the eligible processes are any such polymerisation or co-
polymerisation.
19. At an installation where—
(a) toluene di-isocyanate or other di-isocyanate of comparable volatility or, where partly
polymerised, partly polymerised di-isocyanates or prepolymers of those monomers is
used, and
(b) where the use of any of the chemicals described in sub-paragraph (a) may result in a release
into the air which contains such a di-isocyanate monomer,
the eligible processes are any such use.
20. At an installation, or at an installation on a site, where polyurethane foams or polyurethane
elastomers are flame bonded, the eligible process is any such flame bonding.
21. At an installation, or at an installation on a site, where carbon disulphide, pyridine or any
substituted pyridine are recovered, the eligible process is any such recovery.
22. At an installation where organic compounds are produced except the production of—
(a) hydrocarbons (linear or cyclic, saturated or unsaturated, aliphatic or aromatic);
(b) organic compounds containing oxygen (for example alcohols, aldehydes, ketones,
carboxylic acids, esters, ethers, peroxides, phenols, epoxy resins);
(c) organic compounds containing sulphur (for example sulphides, mercaptans, sulphonic
acids, sulphonates, sulphates and sulphones and sulphur heterocyclics);
(d) organic compounds containing nitrogen (for example amines, amides, nitrous-, nitro-or
azo-compounds, nitrates, nitrogen heterocyclics, cyanates, isocyanates, di-isocyanates and
di-isocyanate prepolymers);
(e) organic compounds containing phosphorus (for example substituted phosphines and
phosphate esters);
(f) organic compounds containing halogens (for example halocarbons, halogenated aromatic
compounds and acid halides);
(g) organometallic compounds (for example lead alkyls, Grignard reagents and lithium
alkyls);
(h) plastic materials (for example polymers, synthetic fibres and cellulose-based fibres);
(i) synthetic rubbers;
(j) dyes and pigments;
(k) surface-active agents,
the eligible process is any such production.
23. At an installation where hydrogen cyanide or hydrogen sulphide is used in a manufacturing
process except where that manufacturing process is an activity listed in Part 2 of Schedule 1
(activities, installations and mobile plant) to the Environmental Permitting (England and Wales)
Regulations 2016(16), the eligible process is any such use.
(16) S.I. 2016/1154, amended by S.I. 2019/39.
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24. At an installation where solvent is reclaimed or regenerated, the eligible processes are any
such reclamation or regeneration.
25. At an installation where raw and part processed hides and skins are processed, dressed or
finished to produce part processed leather intermediates or finished leather, the eligible processes
are any such processing, dressing or finishing.
26. At an installation where glass frit or enamel frit is manufactured or used in any activity where
that activity is related to its manufacture, the eligible processes are any such manufacture or use.
27. At an installation where the main activity is the processing of red meat, the eligible process
is any such processing.
28. At an installation, or at an installation on a site, where lead or any lead alloy is produced,
melted or recovered by—
(a) chemical means, or
(b) the use of heat,
the eligible processes are any such production, melting or recovery.
29. At an installation where any non-ferrous metal or alloy is refined, the eligible process is any
such refinement.
30. At an installation where—
(a) gallium, indium, palladium, tellurium or thallium is recovered, and
(b) that recovery may result in the release of the chemicals in paragraph (a) into the air,
the eligible process is any such recovery.
31. At an installation where—
(a) beryllium, selenium or an alloy containing one or both of those materials is used in
manufacturing or repairing, and
(b) that manufacturing or repairing may result in the release into the air of—
(i)oxides of sulphur and other sulphur compounds;
(ii)oxides of nitrogen and other nitrogen compounds;
(iii)oxides of carbon;
(iv)organic compounds and partial oxidation products;
(v)metals, metalloids and their compounds;
(vi)asbestos (suspended particulate matter and fibres), glass fibres and mineral fibres;
(vii)halogens and their compounds;
(viii)phosphorus and its compounds;
(ix)particulate matter,
the eligible process is any such use.
32. At an installation where granulated blast furnace slag is ground, the eligible process is any
such grinding.
33. At an installation where hazardous waste is incinerated in a waste incineration plant or a
waste co-incineration plant, the eligible process is any such incineration.
34. At an installation where non-hazardous waste is incinerated in a waste incineration plant or
a waste co-incineration plant, the eligible process is any such incineration.
35. At an installation where one of the following wood-based panels are produced—
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(a) oriented strand board,
(b) particleboard, or
(c) fibreboard,
the eligible process is any such production.
36.—(1) Subject to the exceptions in sub-paragraph (2), at an installation where—
(a) any process (other than for re-painting or re-spraying of or of parts of aircraft or road or
railway vehicles) for applying to a substrate, or drying or curing after such application,
printing ink or paint or any other coating material as, or in the course of, a manufacturing
activity, and
(b) the process may result in the release into the air of particulate matter of any volatile organic
compound and is likely to involve the use of—
(i)the application in solid form of printing ink, paint or other coating material,
(ii)the spraying of metal coating in molten form,
(iii)the use of organic solvents in respect of any cold set web offset printing activity or
any sheet fed offset litho printing activity, or
(iv)the use of organic solvents in respect of any activity not mentioned in sub-
paragraph (iii),
the eligible process is any such process.
(2) But paragraph (1) shall not apply in relation to any installation where one of the processes or
activities listed in the below provisions is carried out—
(a) Part A(1) or Part A(2) of Section 6.4 (coating activities, printing and textile treatments)
of Part 2 of Schedule 1 to the Environmental Permitting (England and Wales) Regulations
2016, or
(b) Part A(2)(c) of Section 2.1 (ferrous metals) of Part 2 of Schedule 1 to those Regulations.
37. At an installation where a data facility is being leased or licensed for use as a data centre,
the eligible process is any such use.
38. At an installation where—
(a) an unprocessed log undergoes semi-processing (“a semi-processed log”), or
(b) a semi-processed log is kiln dried, graded, planed, shaped or chemically treated where this
occurs at the same installation or site where the log underwent semi-processing,
the eligible processes are any such semi-processing, kiln drying, grading, planing, shaping or
chemical treatment.
39. At an installation where waste plastic products are mechanically recycled, the eligible
processes are any such processes that produce plastic flakes or granulates, but only where they
include sorting, label and contaminant removal, cleaning, and grinding.
40.—(1) At an installation where spirit drink is packaged into a retail container and closures are
applied on packaging lines, the eligible processes are any such packaging or application taking place
on those packaging lines.
(2) For the purposes of paragraph 1, packaging lines include secondary packaging processes,
labelling, placement of retail containers into cases and automated palletising operations.
41. At an installation where automotive grade battery cells are produced using all of the following
processes—
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(a) electrode manufacture,
(b) cell assembly,
(c) cell formation, and
(d) cell final testing,
the eligible processes are those processes.
EXPLANATORY NOTE
(This note is not part of the Regulations)
These Regulations revoke and remake the Climate Change Agreements (Energy-Intensive
Installations) Regulations 2006 (S.I. 2006/59) (“the EII Regulations”), and amend the Climate
Change Agreements (Eligible Facilities) Regulations 2012 (S.I. 2012/2999) (“the EF Regulations”)
and the Climate Change Agreements (Administration) Regulations 2012 (“the Admin Regulations”)
(S.I. 2012/1976).
The Regulations concern the scheme providing for a reduced rate of climate change levy (CCL)
established under Part IV of Schedule 6 to the Finance Act 2000 (c. 17). Under the scheme, the
reduced rate will apply to facilities that have entered into a climate change agreement (a voluntary
agreement between such a facility and the Environment Agency) and have met agreed targets for
their energy use or emissions in target periods. If a facility does not meet any target for a target
period it may pay a buy-out fee on each tonne of carbon dioxide equivalent by which it falls short of
meeting that target, and thus remains eligible for the reduced CCL rate. To enter into a climate change
agreement, a facility must be an installation and must meet the criteria set out in the EF Regulations.
Installations are described in paragraph 51 of Schedule 6 to the Finance Act 2000. These Regulations
amend the scope of the types of installations covered by paragraph 51 as provided for by the EII
Regulations. The EF Regulations require installations falling under the EII Regulations to carry
on an eligible process in order to be a facility. These Regulations consolidate and clarify these
requirements.
The Admin Regulations deal with the administration of the scheme, including the formula for
calculating the buy-out fee. These Regulations correct one of the figures included in that formula.
Regulations 2 to 4 provide for definitions previously contained in the EF Regulations for the purpose
of interpreting these Regulations. Where those definitions refer to provisions in European Union
(EU) legislation (or those provisions contain cross-references to other provisions in EU legislation),
their reading has been modified where necessary to ensure they are operable in light of the United
Kingdom’s withdrawal from the EU. The modified reading of these provisions applies only for the
purposes of interpreting these Regulations.
Regulation 5 sets out the types of installations covered by paragraph 51. It requires that installations
are of a type set out in the Schedule and carry on a corresponding eligible process set out in the
Schedule. Paragraphs 1 to 38 of the Schedule combines the descriptions of installations and eligible
processes included in the EII and EF Regulations. Paragraph 8 of the Schedule to the EII Regulations,
which provided for any installation not otherwise covered by paragraph 51 to be an installation, has
been removed. Paragraphs 39 to 41 of the Schedule provide for new types of installations carrying
on new types of eligible processes to be covered by paragraph 51. They relate to installations for—
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(a) the mechanical recycling of plastic;
(b) the packaging of spirits; and
(c) the production of automotive grade battery cells.
Regulation 6 makes consequential amendments to the EF Regulations.
Regulation 7 amends the figure “H” (the carbon emission factor for gas) used in the formula to
calculate the buy-out fee set out in regulation 12 of the Admin Regulations.
Regulation 8 consequentially amends the Climate Change Agreements (Miscellaneous
Amendments) Regulations 2006 (S.I. 2006/1848) and revokes the EII Regulations.
A Tax Information and Impact Note covering this instrument will be published on the website at
https://www.gov.uk/government/collections/tax-information-and-impact-notes-tiins.
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