B 2116
L.N. 268 of 2019
 MALTA RESOURCES AUTHORITY ACT
(CAP. 423)
European Union Greenhouse Gas Emissions Trading Scheme for 
Stationary Installations (Amendment) Regulations, 2019
IN EXERCISE of the powers conf erred by article 28 of the Malta
Resources Authority Act, the M inister for the Environment,
Sustainable Development and Cl imate Change, after consultation with
the Malta Resources Authority, has made the following regulatio ns:-
Title.
S.L. 423.50.1. The title of these regulations is the European Union
Greenhouse Gas Emissions Trading Scheme for Stationary
Installations (Amendment) Regulations, 2019 and these regulationsshall be read and construed as one with the European Union
Greenhouse Gas Emissions Tradi ng Scheme Regulations, 2013,
hereinafter referred to as "the principal regulations".
Substitutes the 
main title of the 
principal regulations.2. The main title of the principal regulations shall be
substituted by the following:
"EUROPEAN UNION GREEN HOUSE GAS EMISSIONS
TRADING SYSTEM FOR STATIONARY INSTALLATIONS
REGULATIONS".
Substitutes 
regulation 1 of the principal 
regulations.3. Regulation 1 of the principal regulations shall be
substituted by t he following:
"1. (1) The title of these regulations is the European
Union Greenhouse Gas Emissions Trading System for Stationary
Installations Regulations".
(2) These regulations provide  for the implementation in
Malta of the European Union system for greenhouse gasemissions allowance trading, established by Directive 2003/87/
EC, for activities listed in Schedule 1 to these regulations, f or the
period commencing 1st January, 2013, and any subsequent
periods. 
(3) These regulations transpose:
- Directive 2003/87/EC; 
- Directive 2004/101/EC amending Directive
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2003/87/EC; 
- Directive 2008/101/EC amending Directive
2003/87/EC; 
- Directive 2009/29/EC amending Directive
2003/87/EC; 
- Decision (EU) 2015/1814 amending Directive
2003/87/EC; 
- Regulation (EU) 2017/2392 amending
Directive 2003/87/EC; and 
- Directive (EU) 2018/410 amending Directive
2003/87/EC.
Amends 
regulation 2 of the principal 
regulations.4. Regulation 2 of the principal regulations shall be amended
as follows:
 (a) immediately after the definition "confidential
information", there shall be added the following new definition :
" "Decision (EU) 2015/1814" means Decision (EU)
2015/1814 of the European Parliament and of the Council
of 6 October 2015 concerning the establishment and
operation of a market stability reserve for the Union
greenhouse gas emission trad ing scheme and amending
Directive 2003/87/EC;";
(b) the definition "Directive 2003/87/EC" shall be
substituted by the following definition:
" "Directive 2003/87/EC" means Directive 2003/87/
EC of the European Parliament and of the Council of 13
October 2003 establishing a system for greenhouse gas
emission allowance trading wi thin the Union and amending
Council Directive 96/61/EC;";
(c) immediately after the definition "Directive 2003/87/
EC" there shall be added th e following new definitions:
" "Directive 2004/101/EC" means Directive 2004/
101/EC of the European Parliament and of the Council of
27 October 2004 amending Directive 2003/87/EC
establishing a scheme for  greenhouse gas emission
allowance trading within the C ommunity, in respect of the
Kyoto Protocol’s project mechanisms;";
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 "Directive 2008/101/EC" means Directive 2008/101/
EC of the European Parliame nt and of the Council of 19
November 2008 amending Directive 2003/87/EC so as to
include aviation activities in the scheme for greenhouse gas
emission allowance trading within the Community;";
 (d) immediately after the definition "Directive 2009/31/
EC", there shall be added th e following new definition:
" "Directive (EU) 2018/410" means Directive (EU)
2018/410 of the European Parliament and of the Council of14 March 2018 amending Directive 2003/87/EC to enhance
cost-effective emission reductions and low-carboninvestments, and Decision (EU) 2015/1814;";
(e) immediately after the de finition "emission reduction
unit", there shall be added the following new definition:
" "EU ETS" means the European Union Emissions
Trading System establis hed by Directive 2003/87/EC;";
(f) the definition "greenhouse gases" shall be substituted
by the following definition:
" "greenhouse gases" means the gases listed in
Schedule 2 and other gaseous constituents of the
atmosphere, both natural and anthropogenic, that absorb
and re-emit infrared radiation;";
(g) the definition "new entrants" shall be substituted by
the following definition:
" "new entrant" means any installation carrying out
one or more of the activities listed in Schedule 1, which has
obtained a greenhouse gas emissions permit for the first
time within the period starting three months before the date
for submission of the list pursuant to regulation 11, andending three months before the date for submission of the
subsequent list pursuant to regulation 11;"; 
(h) immediately after the definition "Regulation (EC) No
765/2008", there shall be added the following new definition:
" "Regulation (EU) 2017/2392" means Regulation
(EU) 2017/2392 of the European Parliament and of the
Council of 13 December 201 7 amending Directive 2003/
87/EC to continue current limitations of scope for aviationactivities and to prepare to implement a global market-
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based measure from 2021;"; and
(i) the definition "Union regi stry" shall be substituted by
the following definition:
" "Union registry" means the registry established and
maintained in accordance with Article 19 of Directive
2003/87/EC for the execution of processes pertaining to themaintenance of holding a ccounts and the allocation,
surrender and cancellation of allowances;".
Substitutes 
regulation 3 of the principal 
regulations.5. Regulation 3 of the principal regulations shall be
substituted by the following:
 "3. These regulations shall apply to operators of
stationary installations situate d in the territory of Malta and
carrying out one or more activities listed in Schedule 1 result ing
in emissions of the greenhouse gases specified in respect of those
activities in Schedule 1, and to  any other relevant legal bodie s on
which these regulations put any obligations.".
Amends 
regulation 5 of the principal 
regulations.6. Paragraph (d) of sub-regulati on (3) of regulation 5 of the
principal regulations shall be  substituted by the following:
"(d) the raw and auxiliary materials, the use of which, in
activities listed in S chedule 1 to be carried out in the instal lation,
is likely to lead to emissions of the greenhouse gases specifie d in
respect of those activities in Schedule 1;".
Amends 
regulation 6 of the principal 
regulations.7. Regulation 6 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof shall be substituted by the
following:
 "(1) The Authority shall issue a greenhouse gas
emissions permit granting authorization to emit greenhouse
gases from all or part of an installation for which the
application for a permit is made, if it is satisfied that the
operator of the installation is  capable of complying with the
requirements of these regulat ions and the conditions of the
permit. A permit shall be issued within a period of ninetydays from the date on which the Authority received the
application containing a comp lete set of information in
accordance with sub-regulation (3) of regulation 5, unless
otherwise agreed in writing between the operator and the
Authority."; and
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(b) sub-regulation (4) thereof shall be substituted by the
following:
 "(4) The Authority may, at any time, review a
greenhouse gas emissions permit issued to an operator of
an installation and make ame ndments to the permit as
appropriate and iss ue an updated permit:
Provided that it shall inform the operator
covered by the permit of such amendments as early as
possible prior to the iss uance of an updated permit.". 
Amends 
regulation 7 of 
the principal regulations.8. Sub-regulation (1) of regulation 7 of the principal
regulations shall be substituted by the following:
"(1) The operator of an installation for which a
greenhouse gas emissions permit h as been issued shall notify th e
Authority of:
(a) any changes planned in the nature or
functioning of the installation; or
(b) any extension or reduction of the capacity of the
installation; or
(c) in the case of a permit covering more than one
installation on the same site operated by the same operator,
any instance where one or more installations cease carrying
out all of the activities listed in Schedule 1 covered by the
permit but the operator continues to carry out at least oneactivity in one installation under that permit:
Provided that any such notification must be
made in writing at least one hundred and twenty days prior
to such change in the nature or functioning of theinstallation, or extension or reduction of capacity of theinstallation, or the one or more installations ceasing
carrying out of activities listed in Schedule 1, effectively
taking place.".
Amends 
regulation 11 of the principal 
regulations.9. Regulation 11 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof shall be substituted by the
following:
 "(1) The Authority shall determine the quantity of
free Chapter III allowances to be allocated to an installation
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eligible to a free allocation of Chapter III allowances
pursuant to Directive 2003/87/EC. Such an allocation shall
be determined in accordance with Directive 2003/87/ECand relevant decisions and regulations adopted by the
Commission pursuant to Directive 2003/87/EC.";
(b) sub-regulation (7) thereof shall be substituted by the
following:
 "(7) The Authority shall, by 30th September, 2019,
submit to the Commission a li st of installations covered by
these regulations for the period of five years beginning on
1st January, 2021, including fr ee allocations as determined
in accordance with this regulation. The Authority shall
submit to the Commission list s of installations for each
subsequent period of five years every five years
thereafter."; and
(c) immediately after sub-regulation (7) thereof, there
shall be added the follo wing new sub-regulations:
 "(8) The Authority may, where applicable, request
from an operator of an insta llation information it deems
appropriate in accordance with relevant decisions andregulations adopted by the Commission pursuant to
Directive 2003/87/EC.
 (9) Upon approval by the Commission of the lists
submitted to the Commission pursuant to sub-regulation(7), the Authority shall ensure t hat the lists of installations,
including any free allocation for each installation, are
published.".
Amends 
regulation 14 of 
the principal 
regulations.10. Regulation 14 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof shall be substituted by the
following:
 "(1) The Authority shall, by 28th February of each
year, issue the quantity of fr ee Chapter III allowances that
are to be allocated for that year to each installation included
in the list referred to in sub-re gulation (8) of regulation 11,
as determined in accordance with regulation 11:
Provided that the allowances allocated to each
installation are issued to the operator holding account
opened in respect of that installation in accordance with
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regulation 13:
Provided further that no allowances may be
issued to an installation whose inscription in the list
referred to in sub-regulation (8) of regulation 11 has not
been approved by the Commission.";
 (b) sub-regulation (3) thereof shall be substituted by the
following:
 "(3) Where –
 (a) an installation has ceased its operations,
unless the operator demonst rates to the Authority that
this installation will resume production within a
specified and reasonable time; or
 (b) a permit has been changed, in accordance
with regulation 7, in such a way that it no longerapplies to an installation; or
 (c) a permit has been surrendered in
accordance with regulation 9; or
(d) a permit has been revoked in accordance
with regulation 10, the Authority shall inform thenational registry administr ator. The national registry
administrator shall ensure that no further allowances
are issued to the operator in respect of an installation
subject to any of the conditions under this sub-regulation, for the first yea r after the year when the
installation ceases its operations, or the change in thepermit, the surrender of the permit or the revocationof the permit has come into effect, and for subsequent
years.";
(b) sub-regulation (4) thereof shall be substituted by the
following:
 "(4) Chapter III allowances issued in accordance
with sub-regulation (1) in respect of the period beginning1st January, 2013 and subsequent periods shall be valid
indefinitely. Allowances issued as from 1st January, 2021
in a ten-year period shall be valid for emissions from thefirst year of that period onwards."; and
(d) sub-regulations (5) and (6)  thereof shall be deleted.
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Amends 
regulation 16 of 
the principal regulations.11. Regulation 16 of the principal regulations shall be amended
as follows:
(a) sub-regulation (2) thereof shall be substituted by the
following:
 "(2) An operator of an inst allation shall submit to
the Authority an annual report on the emissions from that
installation for a monitoring year by not later than 31st
March of the subsequent year.";
(b) sub-regulation (3) thereo f shall be substituted by the
following:
   "(3) The report submitte d by an operator of an
installation pursuant to sub-regulation (2) shall be verified
by a verifier in accordance with:
(a) the principles set out in Schedule 4; and,
(b) relevant decisions and regulations
adopted by the Commission pursuant to Directive
2003/87/EC; and
(c) any other requirements made by the
Authority in respect of verification of annual
emission reports for emiss ions from installations.
The verifier shall issue a verification report."; 
(c) sub-regulation (4) of  thereof shall be substituted by
the following:
   "(4) A verification report shall be submitted by the
operator of an installation to the Authority with an annualemissions report submitted. Th e operator shall also enter
the amount of emissions reported in the verified annualemissions report for a monitoring year into the UnionRegistry, by 31st March of the subsequent year."; and 
(d) sub-regulation (6) thereof shall be substituted by the
following:
 "(6) The operator of an installation for which an
a n n u a l  e m i s s i o n s  r e p o r t  i s  t o  b e  v e r i f i e d  s h a l l  n o t i f y  t h eAuthority and the National Accreditation Board – Malta of
the planned date and place of  the verification and the
identity of the ve rifier who will perform  the verification, by
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not later than thirty days prior to the date when the
verification is to  be performed.".
Amends 
regulation 17 of the principal 
regulations.12. Regulation 17 of the principal regulations shall be amended
as follows:
(a) sub-regulation (2) thereof shall be substituted by the
following:
 "(2) The Authority shall, on the basis of the
information included in the annual emissions report and the
verification report submitted in accordance with regulation
16 and its own checks, without undue delay, determine
whether it can accept the submitted annual emissionsreport. The Authority shall not accept a report of annual
emissions which has not been ver ified as satisfactory or for
which a verification report has not been submitted. The
Authority shall inform the operator, in writing or through
other documented means, of its decision. Where it deems
necessary, the Authority may require the submission of arevised annual emissions report. The revised annual
emissions report shall be verified in accordance with
regulation 16. Where necessary the operator shall alsoupdate the amount of emissions  entered into the Union
Registry.";
(b) sub-regulation (3) thereof shall be substituted by the
following:
 "(3) Where, in respect of any monitoring year, an
operator of an installation doe s not submit a verified annual
emissions report in accordance with regulation 16, or where
it is deemed that the operator has not submitted an annual
emissions report which is  in accordance with the
requirements set out in regulation 16, the Authority may,unless there is written agreement between the Authorityand the operator providing othe rwise, itself determine the
emissions for activities performed in that installation forthat monitoring year. The Authority shall use best availabledata and ensure that a conservative estimate is made that
does not underestimate emis sions. When annual emissions
are determined under this sub-regulation, the Authority
shall consider the requirements set out in Schedules 3 and
4:
 Provided that the Authority shall notify the
operator of the installation of the emissions as determined
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and the methodology used to determine such emissions:
 Provided further that the Authority shall enter
the amount of emissions as de termined in accordance with
this sub-regulation into t he Union Registry."; and
(c) immediately following sub-regulation (3) thereof
there shall be added the following new sub-regulations:
 "(4) Where the verification report submitted with an
annual emissions report states outstanding non-
conformities or recommendatio ns for improvements, the
operator of the installation sh all submit to t he Authority, by
not later than 30th June of th e year when the verification
report is issued by the verifier, an improvement report
describing how and when the ope rator has rectified or plans
to rectify the non-conformities i dentified by the verifier and
to implement recommended improvements.
 (5) The Authority shall, within a reasonable time,
approve the improvement report and inform the operator of
the installation of its approval. Where it deems necessary,
the Authority may require the submission of a revised
improvement report.".
Amends 
regulation 19 of the principal 
regulations.13. Regulation 19 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof shall be substituted by the
following:
 "(1) For the period ending 31st December, 2020, an
operator of an installation shall, by 30th April each year,
surrender a number of allowanc es, other than Chapter II
allowances, that is equal to the total emissions from thatinstallation during the preceding calendar year as verified
in accordance with regulation 16, or as determined by the
Authority in accordance with regulation 17. An operator ofan installation shal l not surrender Chapter II allowances for
the period ending 31st December, 2020.";
(b) immediately following sub-regulation (1) thereof
there shall be added the following new sub-regulations:
 "(1a) For the period starting 1st January, 2021, and
subsequent periods, an operator of an installation shall, by30th April each year, surrender a number of allowances that
is equal to the total emissions f rom that installation during
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the preceding calendar year as  verified in accordance with
regulation 16, or as determined by the Authority in
accordance with regulation 17. For the period starting 1stJanuary, 2021, and subsequent periods, an operator of an
installation shall not be pr ohibited from surrendering
Chapter II allowances.
(1b) Allowances issued by a competent authority of
another Member State shall be recognized by the Authority
for the purpose of meeting the obligations of an operator of
an installation under sub -regulations (1) and (1a).
(1c) Where necessary, and for as long as is
necessary, in accordance with relevant decisions andregulations adopted by the Commission pursuant to
Directive 2003/87/EC, an operato r of an installation shall
not surrender allowances that  are issued by a Member State
in respect of which there are obligations arising fromDirective 2003/87/EC which are lapsing.";
(c) sub-regulation (6) thereof shall be substituted by the
following:
 "(6) The Authority shall publish the name of any
operator who is in breach of the requirement to surrender
sufficient allowances under sub-regulations ( 1) or (1a).";
(d) sub-regulation (7) thereof shall be substituted by the
following:
 "(7) An operator who does not surrender sufficient
allowances as required under s ub-regulations (1) or (1a) to
cover its emissions during th e preceding year, or who has
not yet surrendered allowances to cover its emissions
during any previous year, shall be liable to the imposition
of an administrative fine of one hundred euro (€100) for
each tonne of carbon dioxide equi valent emitted for which
the operator has not surrendered allowances."; and
(e) sub-regulation (10) thereof  shall be substituted by the
following:
 "(10) Where an operator of  an installation fails to
surrender allowances in accordance with sub-regulations(1) or (1a), the national registry administrator shall not
allow the transfer of allowances or any other accounting
units out of the operator holding account opened in respect
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of that installation until the operator complies with the
requirement to surrender allowances:
Provided that the nationa l registry administrator
shall not prevent the surrender of allowances in accordance
with sub-regulations (1) and (1a) or the cancellation of
allowances in accordance with sub-regulation (4), or the
issuance of allowances in exchange for CERs or ERUs in
accordance with regulation 20.".
Substitutes 
regulation 24 of the principal 
regulations.14. Regulation 24 of the principal regulations shall be
substituted by the following:
"24. The revenue from the auctioning of allowances, after
deducting the audited costs to  administer the EU ETS agreed
between the Minister responsible for finance and the Authority,
shall accrue to the C onsolidated Fund.".
Adds new 
regulations to the principal 
regulations.15. Immediately after regulation 25 of the principal
regulations, there shall be adde d the following new regulations :
"Exclusion of small 
installations subject to equivalent 
measures.26. (1) Where an operator of an installation
has reported, for that install ation, verified emissions of
less than twenty five thousand (25,000) tonnes of
carbon dioxide equivalent, a nd where that installation
carried out combustion activities, has a rated thermal
input below thirty five (35) MW, excluding emissions
from biomass, in each of the three years preceding a
notification under sub-regulation (8) of regulation 11,the Authority may, after consultation with the operator
of the installation and the Minister, propose to exclude
that installation from the EU ETS:
Provided that the installation shall be
subject to equivalent mea sures that will achieve a
contribution to emissions reductions that is equivalent
to these regulations:
Provided further that arrangements for
monitoring of emissions are in place to assess whether
the installation to which t he equivalent measures apply
emits twenty-five thousand (25,000) tonnes or more of
carbon dioxide equivalent, excluding emissions frombiomass, in any one calendar year:
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Provided further that the Authority may
establish simplified monitoring, reporting and
verification measures for an installation to which
equivalent measures apply if the average annual
verified emissions of that installation between 2008 and2010 are below five thousand (5,000) tonnes a year.
(2) The Authority shall notify the Commission
of an installation for which an exclusion in accordance
with regulation (1) is proposed, before the list of
installations pursuant to sub-regulation (8) of regulation
11 is to be submitted or, at the latest, when that list is
submitted to the Commission, specifying the equivalentmeasures applying to that in stallation. The exclusion is
deemed approved if the Authority does not receive anobjection from the Commission in accordance withDirective 2003/87/EC.
(3) The installation shall be excluded following
the surrender of allowances in respect of the period
during which that installation is in the EU ETS. The
Authority shall, where app licable, no longer issue free
allowances to that installation pursuant to regulation
14. 
(4) Where an installation excluded in
accordance with sub-regulati on (1) emits twenty-five
thousand (25,000) tonnes or more of carbon dioxide
equivalent, excluding emissions from biomass, in any
one calendar year, or the e quivalent measures applying
to that installation are no longer in place, the
installation shall be reint roduced into the EU ETS,
starting from the first cale ndar year following the year
when the installation emits twenty-five thousand(25,000) tonnes or more of carbon dioxide equivalent,
excluding emissions from biomass. An installation
which has been reintroduced into the EU ETS shall stayin the EU ETS for the rest of the period referred to in
regulation 11 during which it is reintroduced.
(5) When an installation is reintroduced into the
EU ETS pursuant to sub-regulation (4), any allowances
to be allocated for free in accordance with regulation 11shall be granted starti ng from the year when the
installation is reintroduced into the EU ETS. Theallowances to be allocated to that installation shall bededucted from the quantity of allowances to be
auctioned pursuant to regulation 12.
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(6) For installations which were not in the EU
ETS during the period from 2008 to 2012, the Authority
may apply monitoring, re porting and verification
requirements for determini ng emissions in the three
years preceding the year o f a notification pursuant to
sub-regulation (2).
(7) The Authority shall ensure that the
notification to the Commission pursuant to sub-
regulation (2), a confirmation that arrangements for
monitoring of emissions of an installation excluded in
accordance with sub-regulation (1) are in place, and a
confirmation that if an installation excluded inaccordance with sub-regulation (1) emits twenty-five
thousand (25,000) tonnes or more of carbon dioxide
equivalent, excluding emissions from biomass, in anyone calendar year, that insta llation will be reintroduced
into the EU ETS, are made available to the public.
(8) The Authority may exclude a hospital from
the EU ETS:
Provided that the hospital is subject to
equivalent measures that will  achieve a contribution to
emissions reductions that is equivalent to theseregulations.
Optional exclusion 
of installations 
emitting less than 
2,500 tonnes.27. (1) Where an operator of an installation
has reported, for that installation, verified emissions of
less than two thousand five hundred (2,500) tonnes of
carbon dioxide equivalent, di sregarding emissions from
biomass, in each of the t hree years preceding a
notification under sub-regulation (8) of regulation 11,the Authority may, after consultation with the operatorof the installation and th e Minister, exclude that
installation from the EU ETS:
Provided that the Authority shall notify the
Commission of such an insta llation before the list of
installations pursuant to sub- regulation (8) of regulation
11 is to be submitted or, at the latest, when that list is
submitted to the Commission:
Provided further that arrangements for
monitoring of emissions are in place to assess whether
the installation emits two thousand five hundred (2,500)
tonnes or more of carbon dioxide equivalent,
disregarding emissions from biomass, in any one
calendar year.
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(2) Where an installation excluded in
accordance with sub-regulation (1) emits two thousand
five hundred (2,500) tonnes or more of carbon dioxide
equivalent, disregarding em issions from biomass, in
any one calendar year, the installation shall bereintroduced into the EU ETS, starting from the first
calendar year following the year when the installation
emits two thousand five hundred (2,500) tonnes ormore of carbon dioxide e quivalent, disregarding
emissions from biomass.
(3) When an installation is reintroduced into the
EU ETS pursuant to sub-regulation (2), any allowancesto be allocated for free in accordance with regulation 11
shall be granted starti ng from the year when the
installation is reintroduced into the EU ETS. The
allowances to be allocated to that installation shall be
deducted from the quantity of allowances to be
auctioned pursuant to regulation 12.
 (4) The Authority shall ensure that the
notification to the Commission pursuant to sub-regulation (1), a confirmation that arrangements for
monitoring of emissions of an installation excluded in
accordance with sub-regulation (1) are in place, and aconfirmation that if an installation excluded in
accordance with sub-regulation (1) emits two thousand
five hundred (2,500) tonnes or more of carbon dioxide
equivalent, disregarding em issions from biomass, in
any one calendar year, that installation will bereintroduced into the EU ETS, are made available to thepublic.
Optional exclusion 
of reserve or 
backup units which 
do not operate more than 300 hours.28. (1) Where an operator of an installation
notified the Authority of a reserve or backup unit which
did not operate more than 300 hours per year in each of
the three years preceding a notification under sub-
regulation (8) of regulation 11, the Authority may, after
consultation with the operato r of the installation and,
the Minister, exclude that unit from the EU ETS:
Provided that the Authority shall notify the
Commission of such a unit before the list of
installations pursuant to sub-regulation (8) of regulation
11 is to be submitted or, at the latest, when that list is
submitted to the Commission:
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Amends 
Schedule 1 of 
the principal 
regulations.16.  The words "Community scheme" wherever they occur in
Schedule 1 of the principal regul ations shall be substituted by  t h e
words "EU ETS".Provided further that arrangements for
monitoring of emissions are in place to assess whether
the reserve or backup unit has operated more than 300
hours in any one calendar year.
(2) Where a reserve or backup unit excluded in
accordance with sub-regulation 1 operates more than
300 hours in any one calendar year, the unit shall bereintroduced into the EU ETS, starting from the first
calendar year following the year when the unit has
operated more than 300 hours.
 (3) When a unit is reintroduced into the EU ETS
pursuant to sub-regulation (2), any allowances to be
allocated for free in respect of that unit in accordance
with regulation 11 shall be granted starting from theyear when the unit is reintroduced into the EU ETS.
The allowances to be allocated to that unit shall be
deducted from the quantity of allowances to beauctioned pursuant to regulation 12.
(4) The Authority shall ensure that the
notification to the Commission pursuant to sub-
regulation (1), a confirmation that arrangements for
monitoring of the hours of operation of a unit excludedin accordance with sub-regulation (1) are in place, and a
confirmation that if a unit excluded in accordance with
sub-regulation (1) operates more than 300 hours in anyone calendar year, that unit will be reintroduced into the
EU ETS, are made avai lable to the public.".
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