Part 4: New Technology Chapter 1: Low-Carbon Heat Schemes Section 146: Further provision about scheme regulations
This section sets out various operational and administrative features of the scheme that the regulations may (and, in the case of determinations about meeting targets under subsection (1), must) provide for.
	Subsection (3) allows the regulations to specify how either scheme targets or credit for activities related to meeting targets, in the form of certificates, might be ‘pooled’ among or transferred between parties, including (in the case of certificates and transfers) parties not otherwise in scope of the scheme targets. This would allow, for instance, for the trading of certificates which parties could acquire and use as part of meeting their target for a given period, instead of carrying out relevant activities themselves. This could allow for the emergence of a market in such certificates.
	Subsection (4) provides for regulations to be made about the consequences or options for parties failing to meet targets under the scheme. This could include, for instance, establishing a framework of payments in lieu, sometimes referred to in similar schemes as ‘buyout’ payments.