Energy Bill [HL]
Debate between Lord Marland and Lord Judd
Lord Marland
My Lords, it is convenient now to speak to Amendments 73 to 95, 98 to 103 and 105 to 135 together.
First, on the upstream petroleum infrastructure, Amendments 77 to 87 have been made in the other place to correct some unintended consequences of the drafting of these clauses. Your Lordships may recall that Calor Gas was concerned that an LPG project in which it is investing might unintentionally be caught. We have resolved this problem. We have also separated the upstream and downstream regimes for third party access so as to enable the new upstream regime set out in the Bill to be considered by Parliament in parallel with a separate legislative exercise that affects the downstream sector only, and which is required as part of the implementation of the EU gas directive.
The clause covering nuclear-funded decommissioning programmes was removed by the Government in Committee in the other place, Amendment 102; and was reinstated in an improved form on Report, Amendment 93. The amendment places a requirement on the Secretary of State that he cannot enter into an agreement under the clause unless he is satisfied that the agreement includes adequate provision for the modification of the funded decommissioning programme in the event that it ceases to make prudent provision.
Two new provisions—Amendments 94 and 95—were also introduced to facilitate the reuse of existing capital assets for CCS where they are suitable. The first of these amends the decommissioning arrangements for offshore energy structures to remove the possibility that the previous owners and operators of those facilities for petroleum production could be made liable for their decommissioning once they have been used for carbon capture and storage demonstration. The second enables the owner of an existing pipeline to compulsorily acquire rights from affected landowners to transport carbon dioxide through the pipeline rather than the substance which he already has rights to use the pipeline for.
On the small provision on the regulation of security at civil nuclear construction sites—Amendment 92—there are potential security risks from early on in the construction of new nuclear sites. The Secretary of State currently has no powers to make regulations to require owners of new civil nuclear sites to put security measures in place while sites are under construction. This amendment will permit him to do so.
Amendments 100, 101 and 133 extend the renewable heat incentive legislation to cover Northern Ireland, enabling it to make its own regulations to incentivise renewable heat.
The noble Lord, Lord Judd, raised an important issue in this House, and I am pleased that we have been able to fulfil his request, that Amendment 99 was passed in the other place unambiguously to allow national park authorities and the Broads Authority to generate and sell renewable electricity, which I hope noble Lords will agree is an exciting and positive change.
The remaining amendments in this group: Amendments 73 to 76, 88 to 91, 98, 102, 103, 105 to 132 and 134 to 135 in this group are minor and technical and I do not wish to take up the House’s time with these, so I shall simply go on to say that I hope noble Lords will be content to accept these amendments as passed in another place. I beg to move that the House do agree with the Commons in their Amendments 73 to 95.
Lord Judd
The House will not be surprised when I say a very warm thank you to the Minister, his officials and all those involved in introducing the amendment, which empowers the National Parks and the Broads Authority to generate renewable energy. I am sure that that will be welcomed. It is now a challenge to the parks and the Broads Authority to demonstrate how those important areas can make a real contribution to energy needs in a socially responsible way which is completely compatible with their overriding objective: to enhance and preserve the countryside for which they are responsible. Now that the Government have responded so positively, I hope that the parks and broads authorities will prove that they can set standards for the nation as a whole.
I would be remiss not to say that the way in which the Minister has conducted the Bill is a model. He has been untiringly—sometimes dangerously—charming, but he has delivered on his promises, and that is something very special. If I may say so, it would not have been possible without the leadership that has come from this side of the House from my noble friend Lady Smith of Basildon. Watching them both at work demonstrates a very interesting and constructive way that could enhance the quality of our democracy. There have been real, important, searching debates, but they have all been conducted in a most civilised and encouraging way. I hope that a lot of people will take the time to read the debate and see how it should be done. Anyway, I thank both noble Lords very much.
Energy Bill [HL]
Debate between Lord Marland and Lord Judd
The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)
My Lords, I very much welcome the amendment of the noble Lord, Lord Judd. In Committee, we all spoke very favourably about this particular aspect. At the time, I said that I would, through my officials, actively look to see whether we could include this measure, and I have good news. We have consulted and carried out research, though counsel, and the good news is that the national parks have the authority to undertake this role. We now have to encourage them to understand that they have that opportunity. I know that, in addition to the message that I shall be sending the national parks myself, I can count on noble Lords here to ensure that this message gets back to them. I am extremely pleased with this development, as, I hope, is the noble Lord, because it saves us having to move a government amendment, which would only have taken more of your Lordships’ time.
I re-emphasise what my noble friend Lord Deben said. It is important that national parks understand their responsibility and how they transfer that responsibility to the people who live within them. It is important that they exercise the authority that they have through this amendment, and that they support renewable activities and microgeneration for those who live in national parks. I hope that that satisfies the noble Lord, Lord Judd, and I ask him to withdraw his amendment.
Lord Judd
This is very encouraging news and I hope that it is not just in the world of aspiration. I have absolutely no doubt about the Minister’s personal commitment to, and hopes for, this area. However, I hope that a way will be found by the Government to get firmly on the record what the parks’ powers are in this respect. I hope that he can give me an assurance on that.
Lord Marland
Perhaps I may reassure the noble Lord that we will get something on the record, and I shall be very happy to write to him outlining the details.
Energy Bill [HL]
Debate between Lord Marland and Lord Judd(13 years, 10 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Lord Marland
I note what my noble friend Lord Deben says. If we are going to look at the national parks and what they will do with their microgeneration, we should obviously encourage them to practise as they preach, which I think are the words he is looking to hear from us. With that in mind, I hope the noble Lord, Lord Judd, will withdraw his amendment.
Lord Judd
I thank the Minister for that encouraging and warm response. I am sure it will be noted by everybody and bodes well for the future. We look forward to what he brings forward at a later stage on the Bill, because he has indicated that he will respond to this. That is great. I say to others who have intervened that we should not tilt at windmills. I see no evidence whatever of the danger or the prospect to which the noble Lord referred. By contrast, I am very much encouraged by the Minister. I beg leave to withdraw the amendment.
Energy Bill [HL]
Debate between Lord Marland and Lord Judd(13 years, 11 months ago)
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Lord Judd
My Lords, I think that every member of the Committee regards himself or herself as fortunate in having such a genial Minister handling this subject. I might say that he is genial not only in Committee and private conversation, but in his correspondence. I thank him for not only his letter to me about his concerns, but the very seductive handwritten comment at the end, which is always the mark of a Minister who is on top of the job.
Lord Judd
I will come to that. I genuinely have no doubts about his intellectual and, indeed, moral commitment on these issues. I have talked with him and I know that he feels deeply about this. I therefore hope that he accepts that much of what we are saying in Committee is to support him in the debates which always take place within Whitehall about turning generalised aspirations into effective action.
I remember in the opening deliberations on the Bill at Second Reading that very powerful speech by my noble friend Lord Giddens. I am sorry that he has not been able to be with us in Committee, but, given all his experience and qualifications, he left no one in any doubt about how he saw these issues as imperative and needing the highest priority. I am sure that he would not mind me telling the Committee that not long after that speech, I went to a meeting elsewhere in this building to which he had been invited to speak on the subject. He started his remarks—which again were very telling—by saying that his message was so grim and would fill so many people with despondency, because of the urgency of the situation, that he wanted to start his remarks with a joke. He said: “There were two parrots. One said to the other, ‘I’m not feeling very well today’. The other said, ‘I’m sorry. What’s wrong?’. The first parrot said, ‘I think I have a touch of the homo sapiens’. The other said, ‘I wouldn’t worry, it does not last very long’”. That was a very sobering way in which to start his remarks.
My amendment is very much in the context of the discussion that we have just had on the previous amendment. I have heard for too long the repeated and vehement expression of aspirations. This is not a partisan point—it happens right across the Floor. Because of the urgency and the challenge to the survival of the species, we must really start being specific about this. It is no good just having targets and systems; we must have specific arrangements and measures to ensure that things are happening fast and effectively. That is why I have tabled my amendment.
I applaud the amendment proposed by my noble friend that comes after this one, and I fully support it, but I wanted to spell out some of the specifics, as they strike me. The Committee on Climate Change has said very firmly that a step change in action is needed if we are to meet UK climate change commitments. The vast majority of UK emissions—some 80 per cent—result from local activity, how we heat and power our homes and workplaces and how we get around. As well as getting the big national decisions right, reducing local energy use is really critical. Local government is in a strong position to lead and co-ordinate this local action. There is some outstanding work by trailblazing councils working with their communities to roll out strategies that create green jobs, cut fuel poverty and reduce traffic. But, nationwide, not nearly enough is happening. The challenge of climate change is too grave and urgent to be left to just those councils that choose to prioritise action.
The coalition—and I am sorry about this—has scrapped the local government performance framework, including the framework for councils to act on emissions reduction. From what I hear and read, early signs are that the result of this, and of other spending cuts, is the deprioritisation of action, with moves to weaken targets at the very time when they should be strengthened, the mothballing of area-wide strategies and the sacking of climate change officers. That is the reality of what is happening on the front line—the exact opposite of what we have all just been getting passionate about. A nationwide system is clearly needed to support councils and ensure that emissions come down in every local authority area.
I emphasise that I very much support my noble friend in her later amendment, but I should like to draw out the fact that councils that are trying to do the right thing are telling us that making action on climate change a core responsibility helps them to prioritise action alongside other duties at this time of economic pressure and spending cuts. I emphasise, too, that council leaders are calling for the system to be linked to the ambition of the Climate Change Act. Councils that are already delivering on strategies to cut emissions by at least 40 per cent by 2020 are demonstrating that acting in line with the Climate Change Act may be ambitious but it is realistic. The aim of what is proposed in this amendment is to ensure a step change in action while empowering local people to decide on the emissions-cutting measures that will best serve their communities. I beg to move.
Lord Marland
I can answer that immediately. If local government is working with two or three suppliers, it may enter into a binding commission-sharing arrangement or something like that. So there could be financial benefits in supply or in being one of the registered assessors or accreditors, when there may be charges on behalf of building merchants, and so on. That is where there are potential financial benefits.
Lord Judd
My Lords, I thank everyone who has participated in this debate. It has been a privilege for me to propose my amendment in the company of other amendments with so much commitment behind them. I hope that noble Lords in all parts of the Committee will understand this, but it is very cheering to me to know that we have as our principal spokesperson on our side of the House someone who is not only well up to the job with regard to the detail but also has a passionate commitment to the strategy.
The Minister has a rare opportunity. There is widespread, deep commitment across the political divides in this House. That is a good moment in political history and it is a moment of opportunity. It should not be dissipated. We have heard it evidenced by several contributions from different parts of the Committee that he has the good will and firm commitment of local authorities and also of many key people in industry. This is a very powerful combination, and history will take it ill if we are not to seize this moment of opportunity and move firmly forward.
I was impressed by the strictures of the noble Lord, Lord Deben, about our own responsibility for the problem that confronts us. We will not get this right simply in terms of what we do ourselves in this country; we will get it right by combined international action. With his experience, I wonder if he would agree that one of the difficulties in generating the necessary positive and dynamic international consensus is the issue of credibility and leadership. An awful lot of people look at us telling them what they must do and say, “Excuse me, who caused the problem?”. They go on to say, “What are you doing about it?”. Therefore it is not just in our own immediate tactical self-interest as a nation; it is crucial in getting the international dynamic right that we are seen to take urgent action, and I am sure the Minister takes that point.
The noble Lord, Lord Deben, also referred to the fact that we could not play our part fully without taking into account what should be done by local authorities. He will recall that in my own remarks I made it plain that some 80 per cent of UK emissions result from local emissions and that therefore the local dimension is crucial.
In asking the Minister to take this debate very seriously, as I am sure he will, I make another point. I was slightly concerned that we might drift into an intellectual structural debate about whether we did things centrally, top-down, or whether we did things bottom-upwards and with voluntary co-operation. Life is not like that. You get dynamic action by getting the balance right between the two. You need leadership and you need opportunity for those people at the local level who have taken the message to take it forward. That is why the points that have been made about having the necessary support and encouragement for them is so important. It is also necessary to give them the opportunity of mechanisms that are put in place which they can seize and which they have to take seriously.
One might not be spelling out the detail, but one is saying that these things are required of you in terms of telling us what you are going to do. We are not telling you exactly what to do but we are expecting you to be taking action in this sort of way. I go back to the war situation: either we are in a battle for humanity or we are not. If we are in such a central battle, we have to look for comparisons with what we did in the Second World War and the rest. I make that point seriously; it is of that degree of significance and gravity.
I would like to thank everyone and I wish the Minister well. It would be wrong to drive him into a corner unnecessarily at this juncture. We are looking at a situation where he comes back at a later stage in our deliberations, having digested and taken very seriously what has been said, and convincingly meets the arguments. I thank all noble Lords, and I beg leave to withdraw the amendment.
Revised Draft Overarching National Policy Statement for Energy (EN-1)
Debate between Lord Marland and Lord Judd(13 years, 11 months ago)
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Lord Marland
I thank all noble Lords who have contributed and all those who have come to listen; it is much appreciated and shows the keenness with which we take this subject. As the noble Baroness said, we finished the year off with energy, we are starting it with energy, and, my goodness, we are going to be spending a lot of time on energy over the next month. We have got a lot on our plate. I hope that despite some complaining in the ranks, noble Lords here recognise that this Government do listen. I think that it is probably mistaken to get into the technicalities of a lot of the parliamentary procedure, because we have a lot of conversations outside the Chamber—we have a lot of listening; we have breakfast; we have had all sorts of things. I hope that you agree that we are listening.
The reason we are doing this is that this is a subject that transcends all Governments. It is fundamental to the country that we have a time line that goes to 2100, as I shall enunciate in a few minutes. In fact, our own pathway goes to 2050. So this is a major subject that in my view is largely outside the subject of party politics. As I think everyone will also understand, we have some serious heavy lifting to do. We have had a long time of inactivity; a long time of resting on the laurels of the wonderful wealth of oil from the North Sea which has kept this country afloat. As I said in an earlier Question today in answer to some of the noble Lord’s questions, we have got to spend more than £110 billion on our infrastructure just to get it up to scratch in the next 10 years. This is a massive project that confronts the Government today.
I turn to the specific questions which, if I may, I shall take in order. The noble Lord, Lord Giddens, as always, is excellent on this subject. He questions our striving for renewables and indicates that we want to achieve 30 per cent. In fact, as I said in our opening speech, we are committed to 50 per cent—which, even for a thicko like me, is larger than 30 per cent. That is our commitment: to have half our energy from renewables by 2050. The noble Lord is also right that there is a huge amount to do.
The noble Lord also asked what happens if CCS does not work. I am very grateful to my noble friend Lord Oxburgh, who really said it all for me. It means that I have to say very little—so I will not. If it does not work, which we fully intend it to do, we will obviously rely on nuclear. I shall come back to the CCS demo project later, if I may.
The noble Lord also asked whether we should put faith in ETSs. ETSs are what we have got as a European standard. As the noble Lord, Lord Deben, said, we should listen to the EU on these subjects. I do not entirely agree with him, but we should listen on some things, and I think that this is good because it works. We should challenge it the whole time and ensure that it is ticking the box. But there is a considerable take-up in this area.
If I could wave a magic wand, of course we would have targeted regional planning. It makes complete sense. It requires a lot of cross-government co-operation, and now that we have been in government for six to nine months, it is a subject where we should be looking to achieve, particularly if we are going to develop the offshore renewables industry. If this is going to become one of our great exporting subjects, we should have a centre of excellence, and I have suggested to our Secretary of State that that is a subject we should take on. I am grateful for those comments.
The noble Lord, Lord Teverson, asked about the CCS competition update. As I am leading the negotiations on the competition, I can tell the Committee that next week we have our second meeting with the chairmen of Shell, National Grid and Iberdrola at 8 am on 19 February. They are coming back to us with their offer regarding what they can achieve within the budget that we have set them. I have no doubt that we will not accept their offer, they will go back and then come back again, hopefully, with something that is more acceptable. The timetable that we have set ourselves is a vigorous one; I want to see heads of agreement signed early this year with a view to having a legally binding document by October, and they are committed to that timetable. It is important that this should happen, and I am grateful that my noble friend Lord Oxburgh should give such encouragement in this area from a scientific point of view.
The noble Lord, Lord Teverson, mentioned consultation with local planning authorities and where we go on that. It is a requirement of the Act that local planning has to happen first. That is the normal practice that we have had in this country and we are not changing it. For major infrastructure projects, we are abolishing the IPC because we believe that it is a quango—it is not an elected body—and ultimately it should be the Secretary of State who makes the decision on major planning projects. We have debated and talked about that on many occasions. The noble Lord also talked about the biomass timescale. That is set out in the Renewables Obligation Order 2011, which should be implemented in April this year.
I enjoyed hearing the dulcet tones of the right reverend Prelate the Bishop of Liverpool this morning on “Thought for the Day” as I was trying to think for the day and about how to deal with this debate; it was marvellous to hear them coming through on the subject of bankers. He can talk about any subject, can’t he? It is marvellous to have such expertise in this House and indeed in Liverpool. The right reverend Prelate wants to know what goals we have set ourselves. Pathway 2050 is one of the clearest documents that have been produced by the Government and shows the enormous challenges and the principles that we have to confront. The document is there as a target, and 2050 is a long way off.
The right reverend Prelate asked us to raise the subject of nuclear risk assessment, particularly in the flood areas. We can do no more than consult the experts, who have laid out the agreement up to the year 2100—hopefully, I will still be alive then—which is the timeframe within which the flood assessment is contained.
He also mentioned carbon counting, an issue that he has raised before, and I am grateful for that. There is a suggestion that the IPC should be responsible for carbon counting. We think that the Government’s policy in this area is perfectly adequate. Obviously it is something that we have to take seriously and, as with all these things, I will take the right reverend Prelate’s suggestions away and consider them further. With regard to his comments on China; yes, these issues have been raised with the Chinese delegation at a private meeting with the Secretary of State as well as through the Prime Minister’s Office.
There was the issue of the gap between planning applications and the IPC and when that will happen; the noble Baroness asked about that as well. As my noble friend Lord Jenkin said, we are grateful that the IPC has thoroughly co-operated in this process, and it is to be commended. In fact, I think that my noble friend went public in saying that it should co-operate with us, and I am glad that it has taken on board what he has suggested. There are two planning applications for power stations that are likely to be approved by the IPC, but anything other than that will be in this interregnum period, which looks like being a fairly smooth process.
My noble friend Lord Jenkin, eruditely as always, asked a number of questions on the issue of offshore and onshore. It is our belief, and I think it is a Conservative tenet, that market forces are best placed to determine how the two marry up together. I have referred to that, and I will do so again at a later stage.
The noble Lord also mentioned shale gas, as have a number of noble Lords. We welcome shale gas, of course; if it reduces the price of gas, that will be fantastic. There are no signs as yet that the Americans are going to supply it to the outside world, as they are intending at the moment to keep it within their own country, but anything that reduces the price of gas will be of great benefit.
I have mentioned parliamentary process, but will now mention it in more detail. I am not going to try to second-guess the parliamentary process regarding these national policy statements. It is not for me to do so; I am only a young whippersnapper in this world. But the changes that are being made through the Localism Bill will give the opportunity, within a 21-day period, for people to register their amendments, and then there will be a vote on them. The difference between now and then is that that vote will be binding, whereas before it was not worth the paper it was written on. If you add that to the general consultation that we are having through these various debates and parliamentary issues, I feel confident that all noble Lords will recognise that we are having our say. The Energy Bill is starting in this House, where it will be honed, argued over, debated and made fit for purpose. That shows the intent of the Government and the recognition of the excellent contribution that noble Lords make here.
My noble friend Lord Jenkin raised a number of other issues. I will be happy to discuss them with him afterwards or put them in writing to him. Some of the issues refer to nuclear and I will deal with them, if I may, in the nuclear debate, on which I notice his name is down to speak. He asked why we have an interim milestone of 2025. We have to have interim milestones; we have to have something that most of us can believe we will actually see, and 2025 is a perfectly reasonable figure.
I was disappointed that the noble Lord, Lord Judd, was not as complimentary as he might be, although I took some of the serious and excellent comments that he made on board. I take no persuading of his view on overhead power cables; in fact, when I was a parliamentary candidate I was asked what was the one Private Member’s Bill that I would introduce and I said the removal of overhead cables, so he is preaching to the converted. Of course the CPRE is an excellent organisation, and we listen to it with great intent—well, I do, anyway.
I really think that the noble Lord has got the wrong end of the stick on the Holford rules. I want to read something that I read earlier, paragraph 2.8.5 in EN-5:
“Guidelines for the routeing of new overhead lines, the Holford Rules, were originally set out in 1959 by Lord Holford, intended as a common sense approach to the routeing of new overhead lines. These guidelines were reviewed and updated by the industry in the 1990s, and the IPC should bear them and any updates in mind as they examine applications for overhead lines”.
It goes on to list what the Holford rules state—on pages 12 and 13, for those who have the statement—and then continues:
“In considering whether all or part of proposed electricity lines should be placed underground to obtain the benefits of reductions in landscape and/or visual impacts, the IPC will need to weigh the reductions in visual intrusion against the impacts (economic, environmental and social) and technical challenges of undergrounding”.
That seems to be a common-sense approach.
Lord Judd
I am grateful to the Minister for giving way, and it is wonderful to have his emotional sympathy for the general drift of my commitment, but can he spell out what he understands by the injunction to “bear in mind”, in terms of actually achieving a situation in which we can be confident that these things will prevail?
Lord Marland
I look to the opening words, which state that the Holford rules were,
“intended as a common sense approach”.
In other words, it was a very 1959, laissez-faire rule. What we are doing is hardening the rules. We are not giving anything away on them. We have merely said that the Holford rules should apply, but if there are implications in terms of whether it is not geologically feasible to put lines underground, the rules should be borne in mind for the same reason as the noble Lord, Lord Deben, said—the cost. We cannot impose unrealistic costs just because we are completely determined, as the noble Lord, Lord Judd, and I are, to place those lines underground. However, I assure him that he has my greatest support and sympathy, and I have taken on board what he said. I shall fight the good fight, as he will, on these issues.
I am also grateful for the noble Lord’s point that we have to consider the future of our society. That is fundamental, and it is something that your Lordships’ House takes more seriously than most, because we take a long-term view of these things. What the noble Lord said was very important.
My noble friend Lord Reay is well known for his views on onshore wind. I cannot comment on whether I share them or not, because onshore wind is a government policy. However, I am always interested in his views. He asked some good questions. Onshore wind is part of a mixed portfolio required under our 2050 pathway if we are to supply this country with twice the supply that it needs today. Onshore wind supplies not a significant amount but a relevant amount. We know where the significant amounts of supply will come from, and we talked about them earlier. We want to be very careful about getting sidetracked into the smaller aspects of supply and concentrate our firepower as a Government on the major things, such as new nuclear, CCS and converting our waste into something much more effective.
Of course, onshore wind has tremendous support in certain parts of the country, particularly in Scotland and Wales, where local communities have come together and determined that there are benefits. Equally, a huge number of communities in England do not see the financial benefits to them. Luckily, we have rigorous planning procedures which ensure that fair play is maintained.
The noble Lord asked what the effects are on the CCR requirement and what extra costs there are on the companies for fulfilling it. There are no delays at the moment because everyone who applies for CCS is just buying the land next to them. There have been no problems with approval on that. The only extra cost is that of purchasing the land. I have mentioned two or three good points about CCS and the Holford rules, with which I hope the noble Lord is satisfied.
As far as the Met Office is concerned, the Government should review several things. First, should we be the owners of the Met Office? There are compelling reasons for the Government not owning an institution, and I am on the PEX-A committee which is reviewing whether the Met Office and its advice should be owned by the Government. However, people tell me that there is only one nation in the world that does not own its own meteorological office and that is Malta. That would be an interesting combination.
I am disappointed that the noble Lord, Lord Crickhowell, did not applaud me to the rooftops for the changes that we have made on LNG and siting. We have made great strides and have listened carefully to what he has said, as I said in my opening speech. The noble Lord, who is an expert in this field, notes that this is a complicated area. There is no single legislative body and there are many different licensing conditions. Clearly, the Government are absolutely adamant that safety at all standards must be maintained. We have the best health and safety standards in the world. On the pipelines, he raises the very good point that standards should be maintained and constantly reviewed. Lessons should be learnt from the BP incident in the Gulf of Mexico. We are reappraising standards rigorously. Perhaps the noble Lord is going to applaud me to the rooftops.