Sustainable Aviation Fuel Act 2026

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<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-revenue-certainty-contracts"><heading>Revenue certainty contracts</heading><section eId="section-1"><num>1</num><heading>Direction to offer revenue certainty contract</heading><subsection eId="section-1-1"><num>(1)</num><content><p>The Secretary of State may direct the designated counterparty (see <ref href="#section-4">section 4</ref>) to offer to enter into a revenue certainty contract with a producer of sustainable aviation fuel.</p></content></subsection><subsection eId="section-1-2"><num>(2)</num><intro><p>In this Act “<term refersTo="#term-revenue-certainty-contract" eId="term-revenue-certainty-contract">revenue certainty contract</term>” means a contract which provides for—</p></intro><level class="para1" eId="section-1-2-a"><num>(a)</num><content><p>the designated counterparty to make payments to the producer in respect of UK-produced sustainable aviation fuel sold by the producer during a period for which the strike price is higher than the market reference price,</p></content></level><level class="para1" eId="section-1-2-b"><num>(b)</num><content><p>the producer to make payments to the designated counterparty in respect of UK-produced sustainable aviation fuel sold by the producer during a period for which the market reference price is higher than the strike price, and</p></content></level><level class="para1" eId="section-1-2-c"><num>(c)</num><content><p>the payments referred to in <ref href="#section-1-2-a">paragraphs (a)</ref> and <ref href="#section-1-2-b">(b)</ref> to be calculated by reference to the difference between the strike price and the market reference price.</p></content></level></subsection><subsection eId="section-1-3"><num>(3)</num><intro><p>In <ref href="#section-1-2">subsection (2)</ref>—</p></intro><hcontainer name="definition"><content><p>“<term refersTo="#term-market-reference-price" eId="term-market-reference-price">market reference price</term>” means an amount that is determined in accordance with the contract as the reference price for sustainable aviation fuel sold during a period specified in, or determined under, the contract;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-strike-price" eId="term-strike-price">strike price</term>” means an amount that is determined in accordance with the contract as the strike price for sustainable aviation fuel sold during that period;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-uk-produced-sustainable-aviation-fuel" eId="term-uk-produced-sustainable-aviation-fuel">UK-produced sustainable aviation fuel</term>”: sustainable aviation fuel is “UK-produced sustainable aviation fuel” if any part of the process for converting any feedstock into the fuel takes place in the United Kingdom.</p></content></hcontainer></subsection><subsection eId="section-1-4"><num>(4)</num><intro><p>A direction under <ref href="#section-1-1">subsection (1)</ref> must be in writing and must specify—</p></intro><level class="para1" eId="section-1-4-a"><num>(a)</num><content><p>the name of the producer to which the offer is to be made,</p></content></level><level class="para1" eId="section-1-4-b"><num>(b)</num><content><p>the period within which the designated counterparty must comply with the direction,</p></content></level><level class="para1" eId="section-1-4-c"><num>(c)</num><content><p>the terms on which the offer is to be made, and</p></content></level><level class="para1" eId="section-1-4-d"><num>(d)</num><content><p>the period for which the offer is to be open for acceptance.</p></content></level></subsection><subsection eId="section-1-5"><num>(5)</num><intro><p>The Secretary of State may—</p></intro><level class="para1" eId="section-1-5-a"><num>(a)</num><content><p>direct a relevant company to provide any assistance the Secretary of State may require for the purpose of identifying producers in respect of which to make a direction under subsection (1), and</p></content></level><level class="para1" eId="section-1-5-b"><num>(b)</num><content><p>make payments to the relevant company in respect of that assistance.</p></content></level></subsection><subsection eId="section-1-6"><num>(6)</num><content><p>In subsection <ref href="#section-1-5">(5)</ref> “<term refersTo="#term-relevant-company" eId="term-relevant-company">relevant company</term>” means a company that is limited by shares each of which is held by a Minister of the Crown.</p></content></subsection><subsection eId="section-1-7"><num>(7)</num><content><p>No direction may be given under <ref href="#section-1-1">subsection (1)</ref> after the end of the period of 10 years beginning with the day on which this Act is passed.</p></content></subsection><subsection eId="section-1-8"><num>(8)</num><content><p>The Secretary of State may by regulations amend <ref href="#section-1-7">subsection (7)</ref> so as to extend the period during which a direction may be given by up to 5 years at a time.</p></content></subsection></section><section eId="section-2"><num>2</num><heading>Notice of directions and revocation</heading><subsection eId="section-2-1"><num>(1)</num><content><p>The Secretary of State must send a copy of a direction under section <ref href="#section-1">1</ref><ref href="#section-1-1">(1)</ref> to the producer named in the direction.</p></content></subsection><subsection eId="section-2-2"><num>(2)</num><content><p>The Secretary of State may revoke a direction under section <ref href="#section-1">1</ref><ref href="#section-1-1">(1)</ref> by giving written notice to the designated counterparty and the producer.</p></content></subsection><subsection eId="section-2-3"><num>(3)</num><content><p>If a direction is revoked, any offer made in pursuance of the direction but not yet accepted lapses.</p></content></subsection></section><section eId="section-3"><num>3</num><heading>Registration and publication of contracts</heading><subsection eId="section-3-1"><num>(1)</num><intro><p>The Secretary of State may make regulations requiring the designated counterparty to—</p></intro><level class="para1" eId="section-3-1-a"><num>(a)</num><content><p>maintain a register of information in relation to revenue certainty contracts;</p></content></level><level class="para1" eId="section-3-1-b"><num>(b)</num><content><p>publish revenue certainty contracts or details about them.</p></content></level></subsection><subsection eId="section-3-2"><num>(2)</num><intro><p>Regulations under subsection <ref href="#section-3-1">(1)</ref><ref href="#section-3-1-a">(a)</ref> may, in particular, make provision about—</p></intro><level class="para1" eId="section-3-2-a"><num>(a)</num><content><p>the information to be contained in the register;</p></content></level><level class="para1" eId="section-3-2-b"><num>(b)</num><content><p>publication of the register.</p></content></level></subsection><subsection eId="section-3-3"><num>(3)</num><content><p>Regulations under subsection <ref href="#section-3-1">(1)</ref><ref href="#section-3-1-b">(b)</ref> may require revenue certainty contracts to be published subject to redactions made in accordance with provision made by the regulations.</p></content></subsection><subsection eId="section-3-4"><num>(4)</num><intro><p>The provision that may be made about the redaction of material in a revenue certainty contract includes provision authorising or requiring redactions to be made—</p></intro><level class="para1" eId="section-3-4-a"><num>(a)</num><content><p>in accordance with a provision of the contract;</p></content></level><level class="para1" eId="section-3-4-b"><num>(b)</num><content><p>in accordance with a decision made by the Secretary of State.</p></content></level></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-designated-counterparty"><heading>Designated counterparty</heading><section eId="section-4"><num>4</num><heading>Designation of counterparty</heading><subsection eId="section-4-1"><num>(1)</num><content><p>The Secretary of State may designate a company as the counterparty for revenue certainty contracts by giving it a notice under this subsection.</p></content></subsection><subsection eId="section-4-2"><num>(2)</num><content><p>The company so designated is referred to in this Act as “<term refersTo="#term-the-designated-counterparty" eId="term-the-designated-counterparty">the designated counterparty</term>”.</p></content></subsection><subsection eId="section-4-3"><num>(3)</num><intro><p>A company may be designated under this section only if—</p></intro><level class="para1" eId="section-4-3-a"><num>(a)</num><content><p>it is limited by shares, and</p></content></level><level class="para1" eId="section-4-3-b"><num>(b)</num><content><p>each share in the company is held by a Minister of the Crown.</p></content></level></subsection><subsection eId="section-4-4"><num>(4)</num><content><p>A company may be designated under this section only if it consents to the designation.</p></content></subsection><subsection eId="section-4-5"><num>(5)</num><content><p>The Secretary of State may revoke a designation under this section by giving a notice to the company designated.</p></content></subsection><subsection eId="section-4-6"><num>(6)</num><content><p>If the designated counterparty gives the Secretary of State written notice withdrawing its consent to the designation, the Secretary of State must designate a replacement (but it remains the designated counterparty until replaced).</p></content></subsection><subsection eId="section-4-7"><num>(7)</num><intro><p>A notice under subsection <ref href="#section-4-1">(1)</ref> or <ref href="#section-4-5">(5)</ref>—</p></intro><level class="para1" eId="section-4-7-a"><num>(a)</num><content><p>must specify when the designation or revocation takes effect, and</p></content></level><level class="para1" eId="section-4-7-b"><num>(b)</num><content><p>must be published by the Secretary of State.</p></content></level></subsection><subsection eId="section-4-8"><num>(8)</num><content><p>The Secretary of State must ensure that, at all times after the first designation under this section takes effect, there is a designation that has effect.</p></content></subsection></section><section eId="section-5"><num>5</num><heading>Transfer schemes</heading><subsection eId="section-5-1"><num>(1)</num><content><p>Where a company’s designation under <ref href="#section-4">section 4</ref> is revoked, the Secretary of State may make one or more schemes for the transfer of the company’s property, rights and liabilities to the new designated counterparty.</p></content></subsection><subsection eId="section-5-2"><num>(2)</num><intro><p>The things that may be transferred under a transfer scheme include—</p></intro><level class="para1" eId="section-5-2-a"><num>(a)</num><content><p>rights and liabilities relating to a contract of employment;</p></content></level><level class="para1" eId="section-5-2-b"><num>(b)</num><content><p>property, rights and liabilities that could not otherwise be transferred;</p></content></level><level class="para1" eId="section-5-2-c"><num>(c)</num><content><p>property acquired, and rights and liabilities arising, after the making of the scheme but before it takes effect.</p></content></level></subsection><subsection eId="section-5-3"><num>(3)</num><intro><p>A transfer scheme may—</p></intro><level class="para1" eId="section-5-3-a"><num>(a)</num><content><p>create rights, or impose liabilities, in relation to property, rights or liabilities transferred;</p></content></level><level class="para1" eId="section-5-3-b"><num>(b)</num><content><p>make provision about the continuing effect of things done by the transferor in respect of anything transferred;</p></content></level><level class="para1" eId="section-5-3-c"><num>(c)</num><content><p>make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of or in relation to the transferor in respect of anything transferred;</p></content></level><level class="para1" eId="section-5-3-d"><num>(d)</num><content><p>make provision for references to the transferor in an instrument or other document in respect of anything transferred to be treated as references to the transferee;</p></content></level><level class="para1" eId="section-5-3-e"><num>(e)</num><content><p>make provision for apportioning property, rights or liabilities;</p></content></level><level class="para1" eId="section-5-3-f"><num>(f)</num><content><p>make provision which is the same as or similar to the TUPE regulations;</p></content></level><level class="para1" eId="section-5-3-g"><num>(g)</num><content><p>make other consequential, supplementary, incidental or transitional provision.</p></content></level></subsection><subsection eId="section-5-4"><num>(4)</num><content><p>In <ref href="#section-5-3">subsection (3)</ref><ref href="#section-5-3-f">(f)</ref>, “<term refersTo="#term-the-tupe-regulations" eId="term-the-tupe-regulations">the TUPE regulations</term>” means the <ref eId="c00001" href="https://www.legislation.gov.uk/uksi/2006/246/contents">Transfer of Undertakings (Protection of Employment) Regulations 2006</ref> (<ref eId="c00002" href="http://www.legislation.gov.uk/id/uksi/2006/246">S.I. 2006/246</ref>).</p></content></subsection><subsection eId="section-5-5"><num>(5)</num><content><p>A transfer scheme may include provision for compensation by the Secretary of State to any person whose interests are adversely affected by it.</p></content></subsection><subsection eId="section-5-6"><num>(6)</num><content><p>The Secretary of State may modify a transfer scheme.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-levy-funding"><heading>Levy funding</heading><section eId="section-6"><num>6</num><heading>Levy on suppliers</heading><subsection eId="section-6-1"><num>(1)</num><intro><p>The Secretary of State may make regulations (“<term refersTo="#term-levy-regulations" eId="term-levy-regulations">levy regulations</term>”) requiring relevant suppliers of aviation fuel to pay a levy to the designated counterparty for the purpose of enabling the counterparty to meet—</p></intro><level class="para1" eId="section-6-1-a"><num>(a)</num><content><p>the cost of payments under revenue certainty contracts, and</p></content></level><level class="para1" eId="section-6-1-b"><num>(b)</num><content><p>other costs incurred under or by virtue of this Act (apart from costs incurred in complying with a direction under section <ref href="#section-1">1</ref><ref href="#section-1-5">(5)</ref>).</p></content></level></subsection><subsection eId="section-6-2"><num>(2)</num><content><p>Levy regulations may include provision for the purpose of setting the levy at a level that enables the designated counterparty to hold sums in reserve.</p></content></subsection><subsection eId="section-6-3"><num>(3)</num><content><p>Levy regulations may require relevant suppliers of aviation fuel to pay different amounts based on criteria relating to their relative market share (and may include provision about how their market share is to be determined for these purposes).</p></content></subsection><subsection eId="section-6-4"><num>(4)</num><content><p>Levy regulations may create exemptions from the requirement to pay the levy.</p></content></subsection><subsection eId="section-6-5"><num>(5)</num><intro><p>Levy regulations may—</p></intro><level class="para1" eId="section-6-5-a"><num>(a)</num><content><p>require a person to make payments on account of any liability of the person to pay the levy;</p></content></level><level class="para1" eId="section-6-5-b"><num>(b)</num><content><p>include provision about the repayment of sums paid on account.</p></content></level></subsection><subsection eId="section-6-6"><num>(6)</num><intro><p>Levy regulations may make provision about—</p></intro><level class="para1" eId="section-6-6-a"><num>(a)</num><content><p>the method by which sums payable under the regulations are to be determined;</p></content></level><level class="para1" eId="section-6-6-b"><num>(b)</num><content><p>the payment of interest on late payments.</p></content></level></subsection><subsection eId="section-6-7"><num>(7)</num><content><p>In this section “<term refersTo="#term-relevant-supplier-of-aviation-fuel" eId="term-relevant-supplier-of-aviation-fuel">relevant supplier of aviation fuel</term>” means a person who is or becomes subject to a renewable transport fuel obligation by virtue of supplying aviation fuel during the period specified in levy regulations.</p></content></subsection><subsection eId="section-6-8"><num>(8)</num><content><p>In <ref href="#section-6-7">subsection (7)</ref> “<term refersTo="#term-renewable-transport-fuel-obligation" eId="term-renewable-transport-fuel-obligation">renewable transport fuel obligation</term>” has the meaning given by <ref eId="c00003" href="https://www.legislation.gov.uk/ukpga/2004/20/section/124">section 124</ref><ref eId="c00004" href="https://www.legislation.gov.uk/ukpga/2004/20/section/124">(1)</ref> of the <ref eId="c00005" href="https://www.legislation.gov.uk/ukpga/2004/20/contents">Energy Act 2004</ref>.</p></content></subsection></section><section eId="section-7"><num>7</num><heading>Collateral for levy</heading><subsection eId="section-7-1"><num>(1)</num><content><p>Levy regulations may require a person to provide financial collateral to the designated counterparty (whether in cash, securities or any other form) in respect of any liability of the person to pay the levy.</p></content></subsection><subsection eId="section-7-2"><num>(2)</num><content><p>The provision that may be made under subsection <ref href="#section-7-1">(1)</ref> includes provision for the designated counterparty to determine the form and terms of any financial collateral.</p></content></subsection></section><section eId="section-8"><num>8</num><heading>Administration etc of levy and disputes</heading><subsection eId="section-8-1"><num>(1)</num><intro><p>Levy regulations may—</p></intro><level class="para1" eId="section-8-1-a"><num>(a)</num><content><p>confer functions on the designated counterparty in connection with the administration and enforcement of the levy;</p></content></level><level class="para1" eId="section-8-1-b"><num>(b)</num><content><p>require the Secretary of State to assist the designated counterparty in connection with those functions by collecting information and providing it to the designated counterparty.</p></content></level></subsection><subsection eId="section-8-2"><num>(2)</num><content><p>Levy regulations may require a person to provide information to the designated counterparty or the Secretary of State (on request or otherwise) for purposes connected with the administration and enforcement of the levy.</p></content></subsection><subsection eId="section-8-3"><num>(3)</num><content><p>Levy regulations may make provision about the resolution of disputes, including provision about arbitration and appeals.</p></content></subsection></section><section eId="section-9"><num>9</num><heading>Calculation or determination of matters under levy regulations</heading><intro><p>Levy regulations may provide for anything which is to be calculated or determined under the regulations to be calculated or determined—</p></intro><level class="para1" eId="section-9-a"><num>(a)</num><content><p>by such persons,</p></content></level><level class="para1" eId="section-9-b"><num>(b)</num><content><p>in accordance with such procedure, and</p></content></level><level class="para1" eId="section-9-c"><num>(c)</num><content><p>by reference to such matters and to the opinion of such persons,</p></content></level><wrapUp><p>as may be specified in the regulations.</p></wrapUp></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-surpluses"><heading>Surpluses</heading><section eId="section-10"><num>10</num><heading>Payment of surpluses to levy payers</heading><subsection eId="section-10-1"><num>(1)</num><intro><p>The Secretary of State may by regulations—</p></intro><level class="para1" eId="section-10-1-a"><num>(a)</num><content><p>require the designated counterparty, in the event that it has a surplus (whether derived from payments made to it under revenue certainty contracts (see <ref href="#section-1">section 1</ref><ref href="#section-1-2">(2)</ref><ref href="#section-1-2-b">(b)</ref>) or otherwise), to make payments to persons who have had to pay the levy;</p></content></level><level class="para1" eId="section-10-1-b"><num>(b)</num><content><p>require a person who receives such a payment to ensure that its customers receive such benefits from the payment as may be specified in or determined in accordance with the regulations.</p></content></level></subsection><subsection eId="section-10-2"><num>(2)</num><intro><p>The regulations may, in particular, make provision about—</p></intro><level class="para1" eId="section-10-2-a"><num>(a)</num><content><p>what amounts to a surplus, including provision about the method by which the surplus is to be determined and the period by reference to which it is to be determined whether there is a surplus;</p></content></level><level class="para1" eId="section-10-2-b"><num>(b)</num><content><p>the method by which the amount of a payment to a person is to be determined.</p></content></level></subsection><subsection eId="section-10-3"><num>(3)</num><content><p>The regulations may make provision for payments to be provided subject to conditions as to repayment in the event that the recipient fails to comply with a requirement imposed under <ref href="#section-10-1">subsection (1)</ref><ref href="#section-10-1-b">(b)</ref>.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-financial-penalties"><heading>Financial penalties</heading><section eId="section-11"><num>11</num><heading>Financial penalties</heading><subsection eId="section-11-1"><num>(1)</num><intro><p>The Secretary of State may impose a financial penalty on a person other than the designated counterparty if—</p></intro><level class="para1" eId="section-11-1-a"><num>(a)</num><content><p>the Secretary of State is satisfied that the person has breached a requirement imposed by levy regulations, and</p></content></level><level class="para1" eId="section-11-1-b"><num>(b)</num><content><p>the requirement was, at the time of the breach, specified in the levy regulations as a requirement in respect of the breach of which a financial penalty may be imposed.</p></content></level></subsection><subsection eId="section-11-2"><num>(2)</num><content><p>The Secretary of State may impose a financial penalty on a person if the Secretary of State is satisfied that the person has breached a requirement imposed by regulations under section <ref href="#section-10">10</ref><ref href="#section-10-1">(1)</ref><ref href="#section-10-1-b">(b)</ref>.</p></content></subsection><subsection eId="section-11-3"><num>(3)</num><intro><p>The amount of the financial penalty imposed under this section must not exceed the lesser of—</p></intro><level class="para1" eId="section-11-3-a"><num>(a)</num><content><p>£100,000, and</p></content></level><level class="para1" eId="section-11-3-b"><num>(b)</num><content><p>an amount equal to 10% of turnover of the person on whom it is imposed.</p></content></level></subsection><subsection eId="section-11-4"><num>(4)</num><intro><p>The Secretary of State may by regulations—</p></intro><level class="para1" eId="section-11-4-a"><num>(a)</num><content><p>amend the amount specified in <ref href="#section-11-3">subsection (3)</ref><ref href="#section-11-3-a">(a)</ref> in light of inflation;</p></content></level><level class="para1" eId="section-11-4-b"><num>(b)</num><content><p>make provision as to how a person’s turnover is to be determined for the purposes of <ref href="#section-11-3">subsection (3)</ref><ref href="#section-11-3-b">(b)</ref>.</p></content></level></subsection><subsection eId="section-11-5"><num>(5)</num><content><p><ref href="#schedule">The Schedule</ref> makes further provision about financial penalties under <ref href="#section-11">this section</ref>.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-directions-information-and-advice"><heading>Directions, information and advice</heading><section eId="section-12"><num>12</num><heading>Power to direct designated counterparty</heading><subsection eId="section-12-1"><num>(1)</num><content><p>The Secretary of State may give the designated counterparty directions as to the exercise of any of the functions conferred on it under or by virtue of this Act.</p></content></subsection><subsection eId="section-12-2"><num>(2)</num><content><p>The Secretary of State must publish any direction given under <ref href="#section-12-1">subsection (1)</ref>.</p></content></subsection></section><section eId="section-13"><num>13</num><heading>Information and advice</heading><subsection eId="section-13-1"><num>(1)</num><content><p>The designated counterparty must comply with any requirement imposed by the Secretary of State to provide the Secretary of State with information or advice in connection with the exercise of the counterparty’s functions.</p></content></subsection><subsection eId="section-13-2"><num>(2)</num><content><p>A requirement may include provision about how or when information or advice is to be provided.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-financial-assistance"><heading>Financial assistance</heading><section eId="section-14"><num>14</num><heading>Financial assistance for designated counterparty</heading><subsection eId="section-14-1"><num>(1)</num><content><p>The Secretary of State may provide financial assistance to the designated counterparty.</p></content></subsection><subsection eId="section-14-2"><num>(2)</num><intro><p>The financial assistance may be provided in any form and in particular may be provided—</p></intro><level class="para1" eId="section-14-2-a"><num>(a)</num><content><p>by way of grant, loan, guarantee or indemnity or the provision of insurance, or</p></content></level><level class="para1" eId="section-14-2-b"><num>(b)</num><content><p>by incurring expenditure for the benefit of the designated counterparty.</p></content></level></subsection><subsection eId="section-14-3"><num>(3)</num><content><p>Financial assistance under this section may be provided subject to such conditions as the Secretary of State considers appropriate, which may include conditions about repayment with or without interest or other return.</p></content></subsection><subsection eId="section-14-4"><num>(4)</num><content><p>The power to provide financial assistance under this section is in addition to (and does not limit or replace) any other power of a Minister of the Crown to provide financial assistance.</p></content></subsection></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" xmlns:ukl="http://www.legislation.gov.uk/namespaces/legislation" name="crossheading" ukl:Name="Pblock" eId="crossheading-general"><heading>General</heading><section eId="section-15"><num>15</num><heading>Duty to consult about regulations</heading><subsection eId="section-15-1"><num>(1)</num><content><p>Before making regulations under this Act the Secretary of State must consult any persons the Secretary of State considers appropriate.</p></content></subsection><subsection eId="section-15-2"><num>(2)</num><intro><p>In the case of regulations under section <ref href="#section-1">1</ref>, <ref href="#section-3">3</ref>, <ref href="#section-10">10</ref> or <ref href="#section-11">11</ref>, that must include—</p></intro><level class="para1" eId="section-15-2-a"><num>(a)</num><content><p>the Welsh Ministers,</p></content></level><level class="para1" eId="section-15-2-b"><num>(b)</num><content><p>the Scottish Ministers, and</p></content></level><level class="para1" eId="section-15-2-c"><num>(c)</num><content><p>the Department for the Economy in Northern Ireland.</p></content></level></subsection></section><section eId="section-16"><num>16</num><heading>Regulations</heading><subsection eId="section-16-1"><num>(1)</num><intro><p>A power to make regulations under any provision of this Act includes power to make—</p></intro><level class="para1" eId="section-16-1-a"><num>(a)</num><content><p>consequential, supplementary, incidental, transitional or saving provision;</p></content></level><level class="para1" eId="section-16-1-b"><num>(b)</num><content><p>different provision for different purposes.</p></content></level></subsection><subsection eId="section-16-2"><num>(2)</num><content><p>Regulations under this Act are to be made by statutory instrument.</p></content></subsection><subsection eId="section-16-3"><num>(3)</num><intro><p>A statutory instrument containing regulations under any of the following provisions (whether alone or with other provision) may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament—</p></intro><level class="para1" eId="section-16-3-a"><num>(a)</num><content><p><ref href="#section-1">section 1</ref><ref href="#section-1-8">(8)</ref> (extension of period within which direction may be given);</p></content></level><level class="para1" eId="section-16-3-b"><num>(b)</num><content><p><ref href="#section-6">section 6</ref><ref href="#section-6-1">(1)</ref> (levy regulations);</p></content></level><level class="para1" eId="section-16-3-c"><num>(c)</num><content><p><ref href="#section-10">section 10</ref> (payment of surpluses to levy payers);</p></content></level><level class="para1" eId="section-16-3-d"><num>(d)</num><content><p><ref href="#section-11">section 11</ref><ref href="#section-11-4">(4)</ref><ref href="#section-11-4-a">(a)</ref> (power to amend maximum financial penalty).</p></content></level></subsection><subsection eId="section-16-4"><num>(4)</num><content><p>Any other statutory instrument containing regulations under this Act is subject to annulment in pursuance of a resolution of either House of Parliament.</p></content></subsection></section><section eId="section-17"><num>17</num><heading>Interpretation</heading><intro><p>In this Act—</p></intro><hcontainer name="definition"><intro><p>“<term refersTo="#term-aviation-fuel" eId="term-aviation-fuel">aviation fuel</term>” means fuel for—</p></intro><level class="para1"><num>(a)</num><content><p>use in aircraft, or</p></content></level><level class="para1"><num>(b)</num><content><p>use in testing engines for use in aircraft;</p></content></level></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-company" eId="term-company">company</term>” means a company registered under the Companies Act 2006;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-designated-counterparty" eId="term-the-designated-counterparty">the designated counterparty</term>” has the meaning given by <ref href="#section-4">section 4</ref><ref href="#section-4-2">(2)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-the-levy" eId="term-the-levy">the levy</term>” means a levy imposed by regulations under <ref href="#section-6">section 6</ref><ref href="#section-6-1">(1)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-levy-regulations" eId="term-levy-regulations">levy regulations</term>” has the meaning given by <ref href="#section-6">section 6</ref><ref href="#section-6-1">(1)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-liability" eId="term-liability">liability</term>” includes contingent liability;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-minister-of-the-crown" eId="term-minister-of-the-crown">Minister of the Crown</term>” has the same meaning as in the <ref eId="c00006" href="https://www.legislation.gov.uk/ukpga/1975/26/contents">Ministers of the Crown Act 1975</ref> (see section 8(1) of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-renewable-transport-fuel" eId="term-renewable-transport-fuel">renewable transport fuel</term>” means anything that is (or is treated as) renewable transport fuel for the purposes of Chapter 5 of Part 2 of the Energy Act 2004 (see sections 131D(2) and 132(1) of that Act);</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-revenue-certainty-contract" eId="term-revenue-certainty-contract">revenue certainty contract</term>” has the meaning given by <ref href="#section-1">section 1</ref><ref href="#section-1-2">(2)</ref>;</p></content></hcontainer><hcontainer name="definition"><content><p>“<term refersTo="#term-sustainable-aviation-fuel" eId="term-sustainable-aviation-fuel">sustainable aviation fuel</term>” means aviation fuel that is renewable transport fuel.</p></content></hcontainer></section><section eId="section-18"><num>18</num><heading>Extent</heading><content><p>This Act extends to England and Wales, Scotland and Northern Ireland.</p></content></section><section eId="section-19"><num>19</num><heading>Commencement</heading><subsection eId="section-19-1"><num>(1)</num><content><p>This Act, apart from section <ref href="#section-1">1</ref>, comes into force on the day on which it is passed.</p></content></subsection><subsection eId="section-19-2"><num>(2)</num><content><p>Section <ref href="#section-1">1</ref> comes into force at the end of the period of two months beginning with the day on which this Act is passed.</p></content></subsection></section><section eId="section-20"><num>20</num><heading>Short title</heading><content><p>This Act may be cited as the Sustainable Aviation Fuel Act 2026.</p></content></section></hcontainer>
<hcontainer xmlns="http://docs.oasis-open.org/legaldocml/ns/akn/3.0" name="schedules" eId="schedules"><hcontainer name="schedule" eId="schedule"><num>Schedule<authorialNote class="referenceNote"><p>Section 11</p></authorialNote></num><heading>Financial penalties for failure to comply with levy regulations</heading><hcontainer name="crossheading" class="schGroup7" eId="d25e1348"><heading>Introduction</heading><paragraph eId="schedule-paragraph-1" class="schProv1"><num>1</num><content><p>This Schedule makes further provision in connection with financial penalties under section <ref href="#section-11">11</ref>.</p></content></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e1361"><heading>Notices of intent</heading><paragraph eId="schedule-paragraph-2" class="schProv1"><num>2</num><subparagraph eId="schedule-paragraph-2-1"><num>(1)</num><content><p>The Secretary of State must, before imposing a financial penalty on a person, give the person a written notice (a “notice of intent”) of the proposed financial penalty.</p></content></subparagraph><subparagraph eId="schedule-paragraph-2-2"><num>(2)</num><intro><p>A notice of intent must specify—</p></intro><level class="para1" eId="schedule-paragraph-2-2-a"><num>(a)</num><content><p>the amount of the proposed financial penalty,</p></content></level><level class="para1" eId="schedule-paragraph-2-2-b"><num>(b)</num><content><p>the reasons for proposing to impose the penalty,</p></content></level><level class="para1" eId="schedule-paragraph-2-2-c"><num>(c)</num><content><p>information about the right to make representations under <ref href="#schedule-paragraph-3">paragraph 3</ref>, and</p></content></level><level class="para1" eId="schedule-paragraph-2-2-d"><num>(d)</num><content><p>the date by which any representations must be made.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-2-3"><num>(3)</num><content><p>The date specified under <ref href="#schedule-paragraph-2-2">sub-paragraph (2)</ref><ref href="#schedule-paragraph-2-2-d">(d)</ref> must be a date more than 28 days after the day on which the notice of intent is given to the person.</p></content></subparagraph><subparagraph eId="schedule-paragraph-2-4"><num>(4)</num><content><p>The Secretary of State may at any time withdraw the notice of intent, or amend it to reduce the amount of the proposed financial penalty, by giving written notice to the person.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e1425"><heading>Right to make representations</heading><paragraph eId="schedule-paragraph-3" class="schProv1"><num>3</num><subparagraph eId="schedule-paragraph-3-1"><num>(1)</num><content><p>A person who is given a notice of intent under <ref href="#schedule-paragraph-2">paragraph 2</ref> may make written representations to the Secretary of State about the proposal to impose a financial penalty.</p></content></subparagraph><subparagraph eId="schedule-paragraph-3-2"><num>(2)</num><content><p>Any representations must be made within the period (“the period for representations”) ending with the date specified under <ref href="#schedule-paragraph-2">paragraph 2</ref><ref href="#schedule-paragraph-2-2">(2)</ref><ref href="#schedule-paragraph-2-2-d">(d)</ref>.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e1455"><heading>Final notices</heading><paragraph eId="schedule-paragraph-4" class="schProv1"><num>4</num><subparagraph eId="schedule-paragraph-4-1"><num>(1)</num><content><p>After the end of the period for representations the Secretary of State must decide whether to impose a financial penalty on the person.</p></content></subparagraph><subparagraph eId="schedule-paragraph-4-2"><num>(2)</num><content><p>If the Secretary of State decides to impose a financial penalty on the person, the Secretary of State must give the person a written notice (a “final notice”) imposing the penalty.</p></content></subparagraph><subparagraph eId="schedule-paragraph-4-3"><num>(3)</num><intro><p>A final notice must specify—</p></intro><level class="para1" eId="schedule-paragraph-4-3-a"><num>(a)</num><content><p>the amount of the financial penalty (which may be less than the amount specified in the notice of intent, but cannot be more),</p></content></level><level class="para1" eId="schedule-paragraph-4-3-b"><num>(b)</num><content><p>the reasons for imposing the penalty,</p></content></level><level class="para1" eId="schedule-paragraph-4-3-c"><num>(c)</num><content><p>the date by which the penalty must be paid,</p></content></level><level class="para1" eId="schedule-paragraph-4-3-d"><num>(d)</num><content><p>information about the right of appeal under <ref href="#schedule-paragraph-5">paragraph 5</ref>, and</p></content></level><level class="para1" eId="schedule-paragraph-4-3-e"><num>(e)</num><content><p>the consequences of failure to comply with the final notice.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-4-4"><num>(4)</num><content><p>The date specified under <ref href="#schedule-paragraph-4-3">sub-paragraph (3)</ref><ref href="#schedule-paragraph-4-3-c">(c)</ref> must be a date more than 28 days after the day on which the final notice is given to the person.</p></content></subparagraph><subparagraph eId="schedule-paragraph-4-5"><num>(5)</num><content><p>The Secretary of State may at any time withdraw a final notice, or amend it to reduce the amount of the financial penalty, by giving written notice to the person.</p></content></subparagraph><subparagraph eId="schedule-paragraph-4-6"><num>(6)</num><content><p>A final notice may not be given more than 28 days after the last day of the period for representations.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e1537"><heading>Appeals</heading><paragraph eId="schedule-paragraph-5" class="schProv1"><num>5</num><subparagraph eId="schedule-paragraph-5-1"><num>(1)</num><intro><p>A person on whom a financial penalty is imposed under section <ref href="#section-11">11</ref> may appeal to the court against—</p></intro><level class="para1" eId="schedule-paragraph-5-1-a"><num>(a)</num><content><p>the decision to impose the penalty, or</p></content></level><level class="para1" eId="schedule-paragraph-5-1-b"><num>(b)</num><content><p>the amount of the penalty.</p></content></level></subparagraph><subparagraph eId="schedule-paragraph-5-2"><num>(2)</num><content><p>An appeal under <ref href="#schedule-paragraph-5">this paragraph</ref> must be brought before the end of the period of 28 days beginning with the day after the day on which the final notice is given to the person in accordance with <ref href="#schedule-paragraph-4">paragraph 4</ref>.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-3"><num>(3)</num><content><p>On an appeal under <ref href="#schedule-paragraph-5">this paragraph</ref> the court may confirm, reduce or cancel the penalty.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-4"><num>(4)</num><content><p>If a person appeals under <ref href="#schedule-paragraph-5">this paragraph</ref>, the final notice is suspended until the appeal is finally determined, withdrawn or abandoned.</p></content></subparagraph><subparagraph eId="schedule-paragraph-5-5"><num>(5)</num><intro><p>In this section “<term refersTo="#term-the-court" eId="term-the-court">the court</term>” means—</p></intro><level class="para1" eId="schedule-paragraph-5-5-a"><num>(a)</num><content><p>in England and Wales or Northern Ireland, the High Court;</p></content></level><level class="para1" eId="schedule-paragraph-5-5-b"><num>(b)</num><content><p>in Scotland, the Court of Session.</p></content></level></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e1617"><heading>Recovery</heading><paragraph eId="schedule-paragraph-6" class="schProv1"><num>6</num><subparagraph eId="schedule-paragraph-6-1"><num>(1)</num><content><p><ref href="#schedule-paragraph-6">This paragraph</ref> applies if a person fails to pay the whole or part of a financial penalty before the end of the period within which the person is required to pay the penalty.</p></content></subparagraph><subparagraph eId="schedule-paragraph-6-2"><num>(2)</num><content><p>In England and Wales or Northern Ireland the unpaid amount is recoverable by the Secretary of State as if it were payable under an order of the county court.</p></content></subparagraph><subparagraph eId="schedule-paragraph-6-3"><num>(3)</num><content><p>In Scotland, the unpaid amount may be enforced in the same manner as an extract registered decree arbitral bearing a warrant for execution issued by the sheriff of any sheriffdom.</p></content></subparagraph></paragraph></hcontainer><hcontainer name="crossheading" class="schGroup7" eId="d25e1645"><heading>Payment of proceeds into Consolidated Fund</heading><paragraph eId="schedule-paragraph-7" class="schProv1"><num>7</num><content><p>Any sums received in pursuance of final notices given under <ref href="#schedule-paragraph-4">paragraph 4</ref> must be paid into the Consolidated Fund.</p></content></paragraph></hcontainer></hcontainer></hcontainer>