Chapter 2. Determination of the total number of allowances and allocation of allowances
§ 6. (determination of the total number of allowances)
The King will determine the total number of allowances to be allocated for the period 1 January 2008 to 31 December 2012.
The King may lay down further provisions on the sale of allowances to which this section applies and how this is to be organised.
§ 7. (allocation of allowances free of charge for the period 2008–2012)
For the period 1 January 2008 to 31 December 2012, allowances shall be allocated free of charge according to the following principles:
Operators of land-based installations shall be allocated allowances free of charge pursuant to section 8, second paragraph, corresponding to 100% of their process emissions and 87% of their emissions from energy use. In the allocation process, installations which use surplus gas from land-based industry that is not regulated through the emission trading system or subject to an emission tax may be given special consideration.
Operators of other installations who are subject to the duty to surrender allowances shall not be allocated allowances free of charge for the period 2008–2012.
A reserve of allowances is to be set aside for new gas-fired power plants that are based on carbon capture and storage technology and for licensed high-efficiency combined heat and power plants. The King will lay down further provisions on the size of this reserve, which operators may apply for allowances from the reserve, and other criteria that are to be used as a basis for allocation pursuant to this paragraph.
§ 8. (allocation of allowances free of charge)
The pollution control authorities will decide the number of allowances to be allocated to each operator for the period 1 January 2008 to 31 December 2012.
Allowances shall be allocated free of charge pursuant to section 7, on the basis of the installation’s average emissions in the base years 1998–2001.
A decision to allocate allowances shall be conditional on the following: at the time of the annual issue of allowances pursuant to section 9, the pollution control authorities must not, find that the installation has been closed down, and the operator must hold a discharge permit pursuant to section 11, second paragraph, of the Pollution Control Act.
§ 9. (issue of allowances)
Each year, the pollution control authorities will issue each operator with the number of allowances to which he is entitled according to a decision made pursuant to section 8. The procedure for issuing allowances is for the pollution control authorities to inform the Norwegian Emissions Trading Registry by 1 March each year that a specified number of allowances is to be transferred to the operator’s account in the registry.
If an operator has received a larger number of allowances than he is entitled to in accordance with a decision to allocate allowances pursuant to section 8, the pollution control authorities shall inform the Norwegian Emissions Trading Registry that the excess allowances in the operator’s account are to be cancelled. Before the pollution control authorities inform the Norwegian Emissions Trading Registry that allowances are to be cancelled, the operator shall be notified and given the opportunity to express an opinion within a specified time limit, unless the operator in question has already been given a reasonable opportunity to express an opinion in some other way, notification is considered obviously unnecessary, or there is reason to believe that this will complicate the cancellation of allowances.
§ 10. (duty to provide notification)
The operator shall notify the pollution control authorities if there has been or is expected to be a lengthy stoppage of operations or if a decision has been taken to close the installation down.