<p> PARTIAL CESSATION FAQs</p><p>Q. Where do I find regulations on Partial Cessations?</p><p>A. Directive 2011/278/EU – CIM (27 April 2011) Article 23 and the GHG Regulations 2012, Schedule 6 (8)</p><p>Q. How do I determine if a sub-installation qualifies as having undergone a partial cessation?</p><p>A. An installation is deemed to have partially ceased operations provided that one sub- installation, (fuel or heat for offshore), which contributes to:</p><p> At least 30% of the installation’s final annual amount of emission allowances allocated free of charge, or</p><p> To the allocation of more than 50,000 allowances, reduces its activity level in a given calendar year by at least 50% compared to the activity level used for calculating the sub-installation’s allocation in accordance with:</p><p> Article 9, or, where applicable, Article 18</p><p>The activity level used for calculating the sub-installation’s allocation is termed the ‘Historic Activity Level’ (HAL) – or often termed the Initial Activity Level (IAL). </p><p>This means that an operator must compare the activity level for each sub-installation i.e. fuel and heat sub-installations from 01 January – 31 December in any given year against the HAL.</p><p>Q. The platform has had a number of small shutdowns during the year and therefore the overall activity level of the sub-installation (fuel) is reduced when compared to the Initial Activity Level. How do I know if this is a qualifying Partial Cessation?</p><p>A. If the activity level over the past calendar year is ≤50% of the Initial Activity Level then this is deemed a partial cessation and the free allocated allowances for that sub-installation will be adjusted the year following the year in which the partial cessation occurred, e.g. a partial cessation took place in 2013 so the number of free allocated allowances will be reduced during 2014. If the activity level over the past calendar year is >50% of the Initial Activity Level then no partial cessation is deemed to have occurred and the sub-installation will retain all of the allowances the following year.</p><p>Q. How is the reduction of free allocated allowances determined?</p><p>A. The reduction of allowances is applied on a proportional basis:</p><p>DECC-OGED: 27 November 2013  If the activity level of the sub-installation is reduced by 50% - 75% compared to the initial activity level, the sub-installation will receive only 50% of the allowances allocated for the year following the year of the partial cessation.</p><p> If the activity level of the sub-installation is reduced by 75% - 90% compared to the initial activity level, the sub-installation will receive only 25% of the allowances allocated for the year following the year of the partial cessation.</p><p> If the activity level of the sub-installation is reduced by 90% or more, compared to the initial activity level, the sub-installation will receive none of the allowances allocated for the year following the year of the partial cessation.</p><p>Q. My installation qualifies for a partial cessation. How do I report this?</p><p>A. A partial cessation or recovery from a partial cessation is reported in the New Entrants & Closures (Change of Activity) form. It has been designed by the EU Commission (Cion) for ALL industries and therefore there are a number of pages/tabs that are irrelevant for the offshore industry.</p><p> This form has recently been revised to address issues identified following the first release in 2012. Please do NOT try to modify this form in any way.</p><p>Q. In 2012 the platform experienced a major shutdown and the activity level over the year was determined as 110 TJ/year, compared with the HAL of 452 TJ/year, which meant a qualifying partial cessation (a reduction of 75.7%) and allowances were reduced in 2013 accordingly. How do I assess for a potential partial cessation during 2013?</p><p>A. Compare the activity level from 01 January to 31 December 2013 against the IAL to determine if that activity is greater than, or less than, 50% compared to the Initial Activity Level, , e.g. </p><p> current activity = 390 TJ/year – IAL 452 TJ/year a reduction of 13.7% – a recovery. </p><p> current activity = 230 TJ/year – IAL 452 TJ/year a reduction of 49.1% – also a recovery. </p><p> current activity = 225 TJ/year – IAL 452 TJ/year - a reduction of 50.2% - deemed another partial cessation. </p><p>In each case above you will need to complete the NE & C change of activity form.</p><p>Q. The platform will have a shutdown in December, can I delay my submission?</p><p>DECC-OGED: 27 November 2013 A. Any shutdown late in the year that could affect the overall, activity of the sub-installation, is only critical if the activity data is close to one of the assessment points (50%; 75% or 90%). If this is critical please contact the Department for further advice.</p><p>Q. Does the data in the partial cessation report need to be verified?</p><p>A. No, the Notification and the data submission within the NE& C form do not require Verification.</p><p>Q. The routine verification of the monitoring report was carried out in March and the verifier pointed out an error in our calculations meaning that a partial cessation was recorded in error. Can I reclaim the submission and allowances?</p><p>A. No. All the data is collated and submitted to the Cion and the Registry before the end of February. Once the registry receives the data the allowances will be adjusted. We are not aware of any mechanism to reclaim allowances once the data is with the registry. It is, therefore, very important to carefully assess if a partial cessation needs to be reported.</p><p>However, you should understand that if the Department becomes aware that a partial cessation has not been reported this will be regarded as a non-compliance and liable to civil penalties and the withholding of allowances.</p><p>DECC-OGED: 27 November 2013</p>