Part 2: Carbon dioxide capture, storage etc and hydrogen production, transport and storage Chapter 1: Revenue Support Contracts Section 70: Obligations of relevant market participants
Section 70 enables revenue support regulations to make provision requiring relevant market participants to pay a hydrogen levy administrator, so that a hydrogen production, hydrogen transport, or hydrogen storage counterparty can make payments under, or in connection with, hydrogen production, hydrogen transport, or hydrogen storage revenue support contracts.
	Regulations may also allow for payments to a hydrogen levy administrator to be used to enable a CO2 transport and storage counterparty to make payments under, or in connection with, CO2 transport and storage revenue support contracts for purposes connected with hydrogen production revenue support contracts. This would allow levy payments to be used to provide funding for CO2 transport and storage revenue support contracts in cases where shortfalls in a CO2 transport and storage licensee’s ‘allowed revenue’ are caused by low carbon hydrogen producers who are expected to be connected to that licensee’s transport and storage network and are parties to hydrogen production revenue support contracts, for example: shortfalls caused by a low carbon hydrogen producer leaving a transport and storage network before its contracted capacity booking has expired.
	Subsection (2) specifies that revenue support regulations may make provision for relevant market participants to make payments to a hydrogen levy administrator for the purpose of meeting other costs. Payments may also be required to enable a levy administrator to hold sums in reserve and to mutualise costs across relevant market participants to cover payments not made by an insolvent or defaulting participant. Subsection (4) enables revenue support regulations to make provision requiring these market participants to provide collateral.
	Subsection (3) enables the revenue support regulations to make provision about the calculation and determination of amounts that are to be paid by a hydrogen levy administrator, including provision for adjustments or apportionments.
	Subsection (8) provides that relevant market participants will be specified in regulations, but a description of relevant market participants may not include persons other than GB gas shippers and/or Northern Ireland gas shippers (as defined in section 56).