Sections 2 to 5 explain what an operator needs to do and know in order to apply for a CCA. This section outlines the procedure operators and their sector association need to follow when applying for a climate change agreement and assenting to the agreement.
6.1. What should operators do next?
After reviewing sections 2 to 5 and collating the necessary evidence to support a new application, the next step is for the operator to provide their sector association with the necessary information so the application can be made on their behalf.
The sector association will check this information and undertake the initial eligibility checks before entering the application on the CCA register. This includes entering the details of the responsible person who would ultimately provide the final signature (by giving their email assent, see
section 6.2) to confirm the operator wishes to hold an underlying agreement. It is not possible for an operator to apply directly for an underlying agreement through the register.
We will assess the evidence submitted to verify that a facility is eligible to hold an agreement. Following this, the operator will be sent an email inviting them to review and give assent to the proposed underlying agreement. This assent will legally bind them to the agreement. On assenting to the underlying agreement, we will process the assent and send out a new agreement to the operator. Only at this point will the facility or facilities included in the target unit become eligible to receive the CCL discount from their energy suppliers.
6.1.1. Evidence required for submission to the register during application
Facility eligibility information
The facility eligibility form (FEF) (Appendix H) asks for the information which the sector association will upload to the register for a CCA application. The following list of documents to be supplied with the FEF forms the minimum evidence to demonstrate eligibility:
• Manufacturing process evidence:
• Manufacturing process description – this is an overview of the manufacturing process(es) carried out. It should cover all elements of the process(es) from receipt of raw materials to dispatch of final product
• Description of eligible processes - this is a description of the elements of the process that are eligible for the CCA. It should clearly state how these elements meet the sector eligibility criteria
• DAAs including:
i. evidence supporting direct association ii. evidence supporting technical connection iii. evidence supporting effect on emissions
• Process flow maps - these should illustrate the flow of activities around the site. The eligible processes and DAA should be clearly marked, an example is below in figure 6.1
Figure 6.1 - Example Flow Diagram
• Annotated site plans showing the extent of the eligible facility - these should cover the whole site, with the site boundary, areas containing eligible processes, DAAs and ineligible processes clearly marked
• Any permits currently held for the site under EPR . The permit number and a copy of the permit will have to be provided.
• Calculations relating to the energy consumed within the installation and other site energy if eligible (indicating any assumptions made). These can also be used to form the baseline. • 70% rule calculations (indicating any assumptions made) - these calculations ideally should be
provided in a spreadsheet format for ease of interpretation Materials enters site Oven Heating, extraction etc. Machining Coating etc. Packing Dispatch of product Selection of packaging Key Ineligible Eligible process DAA
Energy information
Information is required on:
• the target unit's baseline performance • the target for the new target unit
Much of the information needed for a new application can be collated using the new entrant target workbook tools provided in Appendix I.
6.1.2. Application process
Figure 6.2 outlines the application process for a new underlying agreement. Figure 6.2 Applying for a new underlying agreement
6.2. Email assent
The final step in Figure 6.1 is for the operator to give email assent to the underlying agreement. We will email the proposed underlying agreement to the responsible person (for the operator) named on the CCA application. The responsible person should email the operator's assent to us within 20 working days confirming receipt of the underlying agreement and the operator's
acceptance to the terms of that agreement. The assent also covers the target unit target stated in the underlying agreement. Email assent replaces the need to physically sign the agreement and is
The sector association applies through the CCA register for an underlying agreement for the operator.
The application is sent to our technical consultant.
The technical consultant's facilitator for the sector reviews the application,
facility eligibility information and supporting evidence to ensure the
operator is eligible to hold a CCA. The facilitator recommends
approval or rejection of the application based on sector
eligibility.
We review the recommendation by
our technical consultant and make
a final decision to accept or reject the
application.
The operator is notified of our decision by email. - Acceptance: the operator will receive an email with their proposed underlying agreement - Rejection: the operator will receive an email advising why the application has been rejected The email will be copied to the sector
association and/or sector consultant to update it on the application's status.
The operator needs to give assent (email acceptance) to the underlying agreement within 20 working days. When we upload this to the register, the operator will receive the final underlying agreement. They can claim
legally binding. The responsible person can choose to sign the underlying agreement by hand and post it to us.
When we have processed the assent the operator will receive an email confirming the agreement's activation. From that date, the facilities covered by the agreement will appear on the reduced rate certificate (RRC) and the operator can start claiming the CCL discount. We don't guarantee that we will process the assent on the day it is returned to us and therefore we recommend the operator waits for the activation email from us before notifying their energy company of the new CCA. If we do not receive the assent within 20 working days from when we emailed the proposed underlying agreement to the responsible person named on the application, we may withdraw the agreement offer.
When a facility moves between target units (that is, it is excluded from one target unit and included in another target unit), for example, during a change of ownership, we will process the assent for the new target unit before either terminating the old agreement, or processing the assent to the old target unit if it has a new proposed agreement, to ensure continuity of the CCL discount.
6.2.1. Can anyone else give the email assent?
The email assent must be given by the responsible person named on the underlying agreement. Therefore, we expect the assent to be sent from their email account and the one to which we have sent the underlying agreement. We will not accept assent from any other person, including
someone claiming to act with the responsible person’s authority.
The underlying agreement is a legal document that binds the operator into its agreement. It is therefore vital that the responsible person is aware of their responsibilities and the consequences to the operator when giving their assent.
If the responsible person leaves the organisation or changes for whatever reason during the time between the application being submitted and email assent being required, the sector association should update the details of the new responsible person as soon as possible. We will ensure the underlying agreement is sent to the new responsible person to give their assent.
If the responsible person has changed and we have issued a proposed underlying agreement, the sector association should update the responsible person on the register as soon as possible and the new responsible person must provide their assent to the new agreement. If the new
responsible person wishes the underlying agreement to show their details, they must provide their assent to the current agreement and ask us to issue a new agreement to which they must also provide their assent.
A change in the responsible person after the agreement has been assented doesn't require a new agreement. However, the register must be kept up-to-date as it is a requirement in the rules (Schedule 1 to the underlying agreement) that the responsible person's details are maintained in the register.