S.L. 643.2 Art. 19Surrender and cancellation of allowances.

(1) For the period ending 31st December, 2020, an operator of an installation shall, by 30th September of each year, surrender a number of allowances, other than Chapter II allowances, that is equal to the total emissions from that installation 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 of an installation shall not surrender Chapter II allowances for the period ending 31st December, 2020.

(1a) For the period starting 1st January, 2021, and subsequent periods, an operator of an installation shall, by 30th April each year, surrender a number of allowances that is equal to the total emissions from that installation during 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 1st January, 2021, and subsequent periods, an operator of an installation shall not be prohibited 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 and regulations adopted by the Commission pursuant to Directive 2003/87/EC, an operator of an installation shall not surrender allowances that are issued by a Member State in respect of which there are obligations arising from Directive 2003/87/EC which are lapsing.

(2) The national registry administrator shall cancel allowances surrendered in accordance with sub-regulation (1).

(3) The national registry administrator shall cancel allowances at any time at the request of an operator of an installation holding those allowances.

(4) An obligation to surrender allowances shall not arise in respect of emissions verified as captured and transported for permanent storage to a facility for which a permit is in force in accordance with Directive 2009/31/EC.

(4a) An obligation to surrender allowances shall not arise in respect of emissions of greenhouse gases which are considered to have been captured and utilised in such a way that they have become permanently chemically bound in a product so that they do not enter the atmosphere under normal use, including any normal activity taking place after the end of the life of the product , as determined in accordance with the relevant decisions and regulations adopted pursuant to Directive 2003/87/EC.

(5) Surrender and cancellation of allowances shall be carried out in accordance with the relevant decisions and regulations adopted by the Commission pursuant to Directive 2003/87/EC.

(6) The Authority shall publish the name of any operator who is in INSTALLATIONS

breach of the requirement to surrender sufficient allowances under sub-regulations (1) or (1a).

(7) An operator who does not surrender sufficient allowances as required under sub-regulations (1) or (1a) to cover its emissions during the 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 equivalent emitted for which the operator has not surrendered allowances.

(8) From the 1st January, 2013, where, for the year in which an operator of an installation does not surrender sufficient allowances to cover emissions during that year in accordance with sub-regulation (1), the annual average Harmonized European Index of Consumer Prices published shows a percentage increase as compared to the latest Harmonized European Index of Consumer Prices published for the previous year, the administrative fine shall be increased by the same percentage. The administrative fine as revised pursuant to this sub-regulation shall apply to subsequent years unless further increased in accordance with the Harmonized European Index of Consumer Prices. For the purposes of this sub-regulation, each allowance not surrendered by the operator for a tonne of carbon dioxide equivalent emitted shall be considered as a separate contravention.

(9) The imposition of an administrative fine as prescribed in sub-regulation (7) shall not release the operator from the obligation to surrender an amount of allowances equal to those excess emissions in respect of which the administrative fine is paid when surrendering allowances in relation to the following calendar year.

(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 of that installation until the operator complies with the requirement to surrender allowances: Provided that the national 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.