Clause 19
Energy Bill
11:45 am
Malcolm Wicks (Minister of State (Energy), Department for Business, Enterprise & Regulatory Reform; Croydon North, Labour)
I will do my best. Certainly the issue around accidents of different kinds is crucial, so I would like to thank the hon. Members for Wealden and for Billericay for tabling the amendment. I recognise that they raise an important point in relation to carbon dioxide storage. Given the nature of likely CO2 storage in our seas, I will not say more about the use of the term “uncharted waters”—I do not think that the hon. Member for Wealden meant that technically but I know what he means. I hope, however, that some of these waters are charted.
Existing legislation is not suited to licensing the storage of carbon dioxide under the sea bed, and chapter 3 of the Bill is intended to provide a comprehensive and adaptable legal basis for regulating such storage in the offshore area. I would like to explain why we have drafted the provisions in the way we have, and set out why we think the amendment to include a provision about notification of accidents, near-accidents or leakages relating to a CO2 storage site is unnecessary.
The clause allows licences for CO2 storage and related activities to be granted on such terms and conditions as the Secretary of State, or an authority to which the licensing function is transferred, sees fit. The power will allow the licensing authority to include case-specific requirements in relation to each carbon dioxide store. The clause provides a non-exhaustive list of examples of the sorts of conditions licences may contain, including financial security provisions; the right for the Secretary of State to modify the licence; and provisions about closure of the storage site and termination of the licence. In addition, we expect that all licences will include provisions relating to monitoring and remediation, reporting, record-keeping, notification obligations, and the requirement to have a valid lease from the Crown Estate for the relevant site.
The clause therefore gives the Secretary of State, or another licensing authority, unfettered discretion to grant licences on such terms and conditions as it considers appropriate, subject to any regulations about the terms and conditions of licences that may be issued under clause 20.