Climate Change Levy Citation, commencement and interpretation 1 1 These Regulations may be cited as the Climate Change Agreements (Administration) (Amendment and Related Provision) Regulations 2016 and come into force on 30th December 2016. 2 In these Regulations, “the 2012 Regulations ” means the Climate Change Agreements (Administration) Regulations 2012 . Amendment to Regulation 2 of the 2012 Regulations 2 In regulation 2 of the 2012 Regulations (interpretation), after the definition of “target period” insert— “target period 1” means the target period from 1st January 2013 to 31st December 2014; “target period 2” means the target period from 1st January 2015 to 31st December 2016; “target period 3” means the target period from 1st January 2017 to 31st December 2018; “target period 4” means the target period from 1st January 2019 to 31st December 2020. Amendment to Regulation 12 of the 2012 Regulations 3 1 Regulation 12 of the 2012 Regulations (terms to be included in an underlying agreement relating to the buy-out fee) is amended as follows. 2 For paragraph (2)(c), substitute— c if sub-paragraph (a)(i) applies, the amount of the fee is— A × ( W − S ) where— A is £12 where the finding is of a failure to meet a target for target period 1 or target period 2, or £14 where the finding is of a failure to meet a target for target period 3 or target period 4; W in units of tCO 2 equivalent represents the amount by which the emissions for the target period exceed the target; and S in units of tCO 2 equivalent represents any surplus; . 3 For paragraph (2)(d), substitute— d if sub-paragraph (a)(ii) applies, the amount of the fee is— A × W where— A is £12 where the finding is of a failure to meet a target for target period 1 or target period 2, or £14 where the finding is of a failure to meet a target for target period 3 or target period 4; and W in units of tCO 2 equivalent represents the amount by which the emissions for the target period exceed the target; . Amendment to insert new Regulation 12A in the 2012 Regulations 4 After regulation 12 of the 2012 Regulations insert— Terms to be included in an umbrella agreement relating to the buy-out fee 12A 1 This regulation applies to an umbrella agreement if it contains terms corresponding with the terms set out in regulation 12(2). 2 The terms must provide that, where the administrator’s finding is of a failure to meet a target for target period 3 or target period 4, the fee is to be calculated in accordance with paragraph (3) or (4). 3 If the circumstances set out in regulation 12(2)(a)(i) apply, the amount of the fee is— £ 14 × ( W − S ) where— W in units of tCO 2 equivalent represents the amount by which the emissions for the target period exceed the target; and S in units of tCO 2 equivalent represents any surplus. 4 If the circumstances set out in regulation 12(2)(a)(ii) apply, the amount of the fee is— £ 14 × W where W in units of tCO 2 equivalent represents the amount by which the emissions for the target period exceed the target. . Administrator’s power to vary an agreement relating to the buy-out fee terms 5 1 The administrator may vary an agreement to take account of the specified changes in the terms that must be included in an agreement. 2 If the administrator varies an umbrella agreement, the administrator must also vary each underlying agreement with which it forms a combination of agreements for the purposes of paragraph 48 of Schedule 6 to the Finance Act 2000 . 3 If the administrator varies an umbrella agreement, the administrator must give notice in writing of the variation to the sector association which is a party to that agreement. 4 If the administrator varies an underlying agreement, the administrator must give notice in writing of the variation to the operator which is a party to that agreement. 5 Notice may be given by first class post or by electronic communication to the address of the sector association or operator as notified to the administrator. 6 In this regulation— “the administrator” means the Environment Agency; “agreement” means an umbrella agreement or an underlying agreement; “operator” means a party to an underlying agreement other than the administrator; “sector association” means a party to an umbrella agreement other than the administrator; “the specified changes” means the changes made by regulations 3 and 4 to the terms which must be included in an agreement; “umbrella agreement” means an agreement that is an umbrella agreement for the purposes of paragraph 48 of Schedule 6 to the Finance Act 2000; “underlying agreement” means an agreement that is an underlying agreement for the purposes of paragraph 48 of Schedule 6 to the Finance Act 2000 or, if there is no umbrella agreement, an agreement falling within paragraph 47 of Schedule 6 to the Finance Act 2000 . Neville-Rolfe Minister of State Department of Business, Energy and Industrial Strategy 7th December 2016