### Air Pollution Control Ordinance 《空氣污染管制條例》

26G. Secretary to allocate emission allowances in respect of specified licence
(1) For the purposes of this Ordinance, the Secretary shall by technical memorandum allocate a quantity of emission allowances for each type of specified pollutant in respect of each specified licence in relation to each emission year commencing on or after 1 January 2010.
(2) In making an allocation under subsection (1) for a type of specified pollutant, the Secretary shall—
(a) have regard to the best practicable means for preventing the emission of that type of pollutant;
(b) have as his purpose the attainment and maintenance of any relevant air quality objective; and
(c) have regard to whether the emission of that type of pollutant would be, or be likely to be, prejudicial to health.
(3) For the purposes of subsection (1), the Secretary may allocate a quantity of emission allowances also by specifying the method for ascertaining the quantity.
(4) An allocation under subsection (1) does not have effect in respect of an emission year unless the technical memorandum issued under that subsection for making the allocation has commenced to have effect at least 4 years before the commencement of the emission year.
(5) Subsection (4) does not apply to any allocation made by the first technical memorandum having effect for the purposes of subsection (1).

26H. Authority to ascertain quantity of allocated allowances etc.
(1) Where an allocation of a quantity of emission allowances is made in the manner described in section 26G(3), the Authority shall as soon as reasonably practicable ascertain the quantity by using the method specified under that section in the relevant technical memorandum.
(2) After ascertaining the quantity under subsection (1), the Authority shall as soon as reasonably practicable notify the relevant specified licence holder in writing of the quantity so ascertained.

### Air Pollution Control Ordinance 《空氣污染管制條例》

26I. Determination of compliance with certain terms and conditions
(1) For the purposes of this Ordinance, in determining whether a person has contravened any term or condition of a specified licence that requires him, as a specified licence holder, to ensure that the actual emission of a type of specified pollutant from the licensed premises in an emission year is not greater than the allowed emission of that type of pollutant as applicable to the licence in respect of the emission year—
(a) a reference in such term or condition to the allowed emission of that type of pollutant as applicable in respect of the emission year shall be construed as a reference to the quantity, as ascertained by reference to the quantity of the relevant allocated allowances as may be increased or reduced for the purposes of this section under Division 3 in respect of the emission year, of that type of pollutant that may be emitted in the emission year from the licensed premises; and
(b) where there has been a contravention of such term or condition in respect of the preceding year in relation to the licence and that type of pollutant, the quantity by which the relevant actual emission exceeds the relevant allowed emission, after taking into account the adjustments under this subsection for the purpose of determining that there has been the contravention, shall be taken as part of the actual emission of that type of pollutant in the emission year.
(2) Proceedings under section 30B for an offence relating to the contravention of any term or condition referred to in subsection (1) in respect of an emission year shall only be instituted after 31 March in the year immediately following the emission year.
(3) For the purposes of this section, preceding year (對上年度), in relation to an emission year, means the emission year immediately preceding that emission year.

### Air Pollution Control Ordinance 《空氣污染管制條例》

26J. Increase in quantity of allocated allowances in case of surplus of allocated allowances in preceding year
(1) Where the relevant circumstances exist in respect of a specified licence in relation to a type of specified pollutant in an emission year, the quantity of the allocated allowances for that type of pollutant as applicable to the licence in respect of the emission year is to be increased for the purposes of section 26I by the quantity specified in subsection (3).
(2) For the purposes of subsection (1), the relevant circumstances exist in respect of a specified licence in relation to a type of specified pollutant in an emission year if, for the purpose of making the relevant determination in accordance with section 26I(1) in relation to the preceding year, the relevant allowed emission exceeds the relevant actual emission, after taking into account the adjustments under that section for the purpose of making the determination.
(3) The quantity referred to in subsection (1) is—
(a) the excess referred to in subsection (2); or
(b) 2% of the quantity of the allocated allowances for the relevant type of specified pollutant as applicable to the relevant specified licence in respect of the preceding year,
whichever is the lesser.
(4) For the purposes of subsection (3)(b), where the result of the calculation under that subsection is a fraction, the result is to be rounded up to the next whole number.
(5) For the purposes of this section, preceding year (對上年度), in relation to an emission year, means the emission year immediately preceding that emission year.

### Air Pollution Control Ordinance 《空氣污染管制條例》

26K. Increase in quantity of allocated allowances upon occurrence of special event or failure to acquire emission credits
(1) Where the relevant circumstances exist in respect of a specified licence in relation to a type of specified pollutant in an emission year, the Authority may, for the purposes of section 26I, upon application by the specified licence holder in accordance with the terms and conditions of the licence and upon payment of the fee (if applicable) prescribed in Schedule 2B, increase the quantity of the allocated allowances for that type of pollutant as applicable to the licence in respect of the emission year by such quantity as he thinks fit.
(2) For the purposes of subsection (1), the relevant circumstances exist in respect of a specified licence in relation to a type of specified pollutant in an emission year if—
(a) (i) that type of pollutant has been emitted in the emission year from the licensed premises as a result of the occurrence of a special event; or
(ii) further to an approval under section 26M in respect of any quantity of emission credits, the applicant has entered into an agreement for the acquisition of that quantity of emission credits or any part of it but has failed to acquire that quantity of emission credits or that part of it (as the case may be) under the agreement;
(b) the special event or the failure (as the case may be) occurred for reasons beyond the control of the applicant;
(c) (i) in the case of a special event, the occurrence of the event could not reasonably have been foreseen by the applicant, or if the occurrence of the event could reasonably have been foreseen by the applicant, the applicant exercised all due diligence to prevent the occurrence of the event; or
(ii) in the case of a failure, the applicant exercised all due diligence to prevent the failure; and
(d) in the case of a special event, the applicant has also—
(i) within 5 working days after the occurrence of the event, notified the Authority in writing of the occurrence of the event; and
(ii) from promptly after the occurrence of the event, exercised all due diligence to minimize the quantity of that type of pollutant being emitted in the emission year from the licensed premises as a result of the occurrence of the event.
(3) An application under subsection (1) in relation to an emission year may be made during the period commencing on 1 January and ending on 1 March in the year immediately following the emission year.
(4) The Authority shall as soon as reasonably practicable, and in any event within 10 working days, after receiving an application under subsection (1), notify the applicant in writing of his decisions under that subsection.
(5) For the purposes of subsection (2), special event (特殊事件) means any event specified in the relevant specified licence as a special event for the purposes of this section. 

### Air Pollution Control Ordinance 《空氣污染管制條例》

26L. Increase or reduction in quantity of allocated allowances further to their acquisition or transfer
(1) A specified licence holder may, in accordance with the terms and conditions of the specified licence, acquire from or transfer to the holder of another specified licence any quantity of allocated allowances, or any quantity of allocated allowances increased under this section or section 26J, for a type of specified pollutant as applicable in respect of an emission year.
(2) Where the holder of a specified licence (transferee licence