The Marine Recovery Funds Regulations 2025
These Regulations establish the framework for the creation, operation, and management of Marine Recovery Funds (MRFs) across the UK, designed to channel payments from entities responsible for adverse environmental effects of offshore wind activities towards approved compensatory measures.
The Secretary of State is empowered to set up these funds territorially, determine the application procedure for 'MRF applicants' seeking to make compensation payments, approve environmental 'measures,' and manage the subsequent delivery, monitoring, and adaptation of those measures through 'MRF contracts.'
Arguments For
Provides a structured financial mechanism (Marine Recovery Funds or MRFs) for compensating the adverse environmental effects caused by offshore wind activities, thereby facilitating renewable energy development while ensuring environmental mitigation.
Establishes clear administrative processes, including the approval of compensatory measures, determination of application procedures, and fee structures, ensuring transparency and consistency in fund management.
Allows for flexibility in fund establishment (UK-wide or territorial) and management, permitting delegation of functions to devolved administrations (Scotland, Wales, NI) with appropriate consent, respecting devolution arrangements.
Includes provisions for monitoring, adapting, and even replacing allocated compensatory measures during a monitoring period, ensuring that the environmental compensation scheme remains effective against initial expectations.
Arguments Against
The extensive administrative framework, including application procedures, initial agreements, and potential delegation, could introduce complexity and bureaucratic delays for applicants seeking compensation allocation.
Giving the Secretary of State broad power to determine application procedures, fees, and the ability to cancel delegation of functions may centralize significant control over environmental compensation schemes.
The process for cancelling delegation (Regulation 17) requires consultation, but the final decision rests with the Secretary of State, potentially leading to disputes over local management authority for environmental recovery projects.
The creation of fees (Regulation 10) for cost recovery might impose unexpected financial burdens on those seeking to mitigate environmental impacts, even if they relate to the administration of the compensation scheme.
The Secretary of State makes these Regulations in exercise of the powers conferred by sections 292 and 331(2)(a) of the Energy Act 2023 . Before making these Regulations, the Secretary of State has consulted the Scottish Ministers, the Welsh Ministers, the Department for Agriculture, Environment and Rural Affairs in Northern Ireland and such other persons as the Secretary of State considered appropriate, in accordance with section 292(12) of the Energy Act 2023.
The Secretary of State created these Regulations using powers granted by sections 292 and 331(2)(a) of the Energy Act 2023.
Before enacting these rules, the Secretary of State engaged in required consultations with the Scottish Ministers, Welsh Ministers, the Department for Agriculture, Environment and Rural Affairs in Northern Ireland, and other relevant parties, as mandated by section 292(12) of the Energy Act 2023.
Part 1 Introductory
This part introduces the legislative document.
Citation, commencement and extent 1. (1) These Regulations may be cited as the Marine Recovery Funds Regulations 2025.
(2) These Regulations come into force on 17th December 2025.
(3) These Regulations extend to England and Wales, Scotland and Northern Ireland.
The official title for this legislation is the Marine Recovery Funds Regulations 2025.
These rules become legally effective on December 17th, 2025.
Their jurisdiction covers all of England, Wales, Scotland, and Northern Ireland.
Interpretation 2. In these Regulations—
“allocated measure” has the meaning given in regulation 8(3)(a);
“approved measure” means a measure in relation to which approval has been given under regulation 6(1);
“measure” means a measure to compensate for adverse environmental effects of relevant offshore wind activities;
“MRF” means a marine recovery fund established under regulation 3(1);
“MRF applicant” means a person who makes an MRF application;
“MRF application” means an application to the Secretary of State to make an MRF payment, made in accordance with a procedure determined under regulation 7(1);
“MRF contract” means an agreement which falls within regulation 9 (meaning of MRF contract);
“MRF participant” means a party to an MRF contract who falls within the description in regulation 9(a)(i) (parties to an MRF contract);
“MRF payment” means a payment into an MRF which is made by an MRF participant—
(a) in accordance with an MRF contract,
(b) in respect of an allocated measure, and
(c) for the purpose of discharging all or part of a compensation condition imposed on a person in connection with the granting of consent to carry out the relevant offshore wind activity for whose adverse environmental effects the allocated measure is to compensate.
This regulation defines key terms used throughout the document to ensure clarity in their application.
An 'allocated measure' is defined by reference to Regulation 8.
An 'approved measure' is any environmental compensation activity that the Secretary of State has formally accepted.
A 'measure' is specifically defined as compensation for negative environmental impacts resulting from offshore wind operations.
An 'MRF' refers to a Marine Recovery Fund established under Regulation 3.
'MRF applicant' is someone applying to pay into the fund, and an 'MRF application' is the formal request to make an MRF payment according to procedures set out in Regulation 7.
An 'MRF contract' is a specific agreement, and an 'MRF participant' is a party bound by that contract.
Finally, an 'MRF payment' is a payment made into the MRF by a participant under contract, specifically intended to cover all or part of a compensation requirement linked to the environmental impact of consenting to offshore wind activities.
Part 2 Establishment, operation and management of marine recovery funds
This part details how the Marine Recovery Funds (MRFs) are created, managed, and overseen.
Establishment of marine recovery funds 3. (1) The Secretary of State may establish one or more marine recovery funds.
(2) Where the Secretary of State establishes a marine recovery fund under paragraph (1), the Secretary of State may determine which relevant offshore wind activities are relevant offshore wind activities in respect of which payments may be made into and out of that fund.
(3) Where the Secretary of State establishes a marine recovery fund under paragraph (1), the Secretary of State may decide that the fund is established for—
(a) England, Wales, Scotland or Northern Ireland only, or
(b) any combination of those territories.
(4) Where the Secretary of State establishes a marine recovery fund under paragraph (1) for a particular territory of the United Kingdom, the relevant offshore wind activities referred to in paragraph (2) may be activities which take place in the inshore or offshore region of that territory, or outside it.
(5) The reference in paragraph (4) to the inshore or offshore region of a territory of the United Kingdom is a reference to the English, Scottish, Welsh or Northern Ireland inshore or offshore region, as appropriate.
The Secretary of State has the authority to create one or more Marine Recovery Funds (MRFs).
When establishing a fund, the Secretary of State decides which offshore wind activities the fund will cover regarding incoming and outgoing payments.
Establishment can be tailored geographically: for a single UK territory (England, Wales, Scotland, or NI) or for a mixture of these territories.
If a fund is set up for a specific UK territory, the associated offshore wind activities can relate to waters within or outside that territory's defined inshore or offshore geographical region.
Paragraph (5) clarifies that the defined inshore or offshore regions refer specifically to the official boundaries for England, Scotland, Wales, or Northern Ireland, depending on the context.
Operation and management of an MRF 4. (1) The Secretary of State must operate and manage an MRF.
(2) The Secretary of State may delegate to another person any function conferred on the Secretary of State by these Regulations relating to the operation and management of an MRF.
(3) A delegation of functions under paragraph (2)—
(a) may, where an MRF is established in accordance with regulation 3(3)(b), relate solely to a particular territory of the United Kingdom,
(b) may be on such terms as the Secretary of State thinks fit,
(c) may, subject to regulation 17 (consultation in relation to cancellation of delegation of functions), be cancelled by the Secretary of State at any time, and
(d) does not prevent the Secretary of State from carrying out any function delegated.
(4) A delegation of functions under paragraph (2) may only be made—
(a) to a Scottish public authority with the consent of the Scottish Ministers;
(b) to a Welsh public authority with the consent of the Welsh Ministers;
(c) to a Northern Ireland public authority with the consent of DAERA.
The Secretary of State bears the primary responsibility for running and managing every MRF.
However, the Secretary of State is permitted to assign operational or management duties related to an MRF to another entity.
Any delegation arrangement can be territory-specific if the MRF covers mixed territories, be set according to the Secretary of State's preference, and can be revoked, requiring prior consultation under Regulation 17.
The Secretary of State retains the right to perform any delegated function.
Delegation is restricted: it requires consent from the relevant devolved body—Scottish Ministers for Scottish authorities, Welsh Ministers for Welsh authorities, and the Department of Agriculture, Environment and Rural Affairs (DAERA) for Northern Ireland authorities.
Payments in connection with operation and management of an MRF 5. The Secretary of State may make a payment to another person in respect of costs incurred by that person on behalf of the Secretary of State in connection with the operation and management of an MRF.
The Secretary of State can reimburse another person for expenses they incur while carrying out operational or management tasks for an MRF on the Secretary of State's behalf.
Part 3 Approval of measures
This section outlines the rules concerning the approval of environmental compensation measures.
Approval of measures to be funded by an MRF 6. (1) Before a payment may be made out of an MRF towards expenditure on the delivery or acquisition of a measure under regulation 14(b) or (c) (payments out of an MRF), the measure must be approved by the Secretary of State.
(2) An approval under paragraph (1)—
(a) may limit the geographical location of the measure or its duration, and
(b) may relate to a measure which has already been delivered, in full or in part.
(3) The Secretary of State must publish a list of approved measures.
For funds to be disbursed from an MRF to pay for delivering or purchasing a measure, that measure must first receive official approval from the Secretary of State, referencing payments described in Regulation 14.
This official approval can place boundaries on where the measure can be applied geographically or specify how long it should last.
Approval can also be granted retrospectively to measures that have already been wholly or partially completed.
The Secretary of State must publicly issue a register detailing all measures that have received this approval.
Part 4 Procedure for making an MRF application and MRF contracts
This section details the necessary steps for an applicant to apply to the MRF and the resulting contract framework.
Procedure for making an MRF application 7. (1) The Secretary of State must determine the procedure for the making of an MRF application.
(2) The procedure determined under paragraph (1) may include—
(a) an expression of interest by the MRF applicant in making an MRF payment;
(b) an initial agreement between the Secretary of State and the MRF applicant that the MRF applicant may make an MRF payment (“proposed MRF payment”), subject to such matters as the Secretary of State may determine, which may include the obtaining of consent to carry out the relevant offshore wind activity to which the proposed MRF payment would relate;
(c) the payment into the MRF of a proportion of the proposed MRF payment, by way of deposit or reservation fee;
(d) the reservation by the Secretary of State of the approved measure in respect of which the proposed MRF payment is to be made, subject to the terms of the initial agreement referred to in sub-paragraph (b).
(3) The procedure determined under paragraph (1)—
(a) may provide for periods of time during which MRF applications may be made;
(b) may provide for circumstances in which the procedure may be abridged, including where the proposed MRF payment is to compensate for adverse environmental effects of a relevant offshore wind activity in respect of which consent has already been granted;
(c) may be different for each MRF;
(d) may provide for circumstances in which an MRF applicant may transfer the making of the MRF application to another person;
(e) may be amended from time to time.
(4) The reservation of an approved measure, as referred to in paragraph (2)(d), may relate to—
(a) a whole approved measure,
(b) part of an approved measure, or
(c) any combination of whole approved measures and parts of approved measures.
The Secretary of State is responsible for establishing the official process by which someone applies to make a payment to an MRF.
This defined procedure might involve initial steps such as the applicant expressing interest, or a preliminary agreement confirming the applicant can proceed (a 'proposed MRF payment'), potentially contingent on securing necessary consents for the related wind activity.
Additional steps could include the applicant paying a deposit or fee into the MRF, and the Secretary of State reserving the specific approved measure intended for compensation.
The established procedure might specify designated application windows, allow for a shortened process if related wind activity consent is already secured, or differ between individual MRFs.
It can also permit applicants to pass their application responsibility to someone else and can be updated over time.
When a measure is reserved under the process, it can refer to the entire approved measure, only a section of it, or any combination of whole or partial measures.
Approval of MRF application and entry into MRF contract 8. (1) Following completion of the application procedure determined under regulation 7(1) in relation to an MRF application, the Secretary of State must decide whether to approve that application.
(2) Before approving an MRF application, the Secretary of State must be satisfied that a determination has been made, by or on behalf of the person who imposed the compensation condition which the MRF applicant seeks to discharge by making an MRF payment, as to the extent to which the making of that MRF payment would discharge that compensation condition.
(3) When approving an MRF application, the Secretary of State must—
(a) allocate an approved measure to the MRF applicant (“allocated measure”) which is sufficient to discharge—
(i) the whole of the compensation condition referred to in paragraph (2), or
(ii) the part of that compensation condition in respect of which the MRF payment is to be made,
(b) determine the amount of the MRF payment to be made,
(c) determine the terms on which the MRF payment is to be made, and
(d) offer to enter into an MRF contract with the MRF applicant on those terms.
(4) The allocated measure may be—
(a) a whole approved measure,
(b) part of an approved measure, or
(c) any combination of whole approved measures and parts of approved measures.
(5) In addition to an amount in respect of the delivery of the allocated measure, the amount of the MRF payment referred to in paragraph (3)(b) may include an amount, which may be set by reference to the estimated cost of the allocated measure, in respect of—
(a) activities in connection with the development of measures for approval under regulation 6 and the giving of such approval;
(b) the activities referred to in regulation 15 (monitoring, adapting and decommissioning of allocated measures).
After an MRF application process concludes, the Secretary of State must decide whether to grant approval to the application.
Before approving, the Secretary of State must confirm that the body which originally imposed the environmental compensation requirement has determined exactly how much of that requirement the MRF payment will satisfy.
If approval is granted, the Secretary of State must assign a suitable 'allocated measure' to the applicant, ensuring it fully covers the relevant part of the compensation condition.
The Secretary of State also sets the payment sum, the terms of payment, and extends an offer to sign an MRF contract incorporating these details.
This allocated measure can consist of a complete approved measure, a fragment of one, or any mix of full and partial approved measures.
Besides the cost of delivering the measure, the required MRF payment amount can also cover expenses related to getting the measure approved, or costs associated with monitoring, adjusting, or dismantling the measure later on, as detailed in Regulation 15.
Meaning of MRF contract 9. An agreement falls within this regulation if it—
(a) is entered into by—
(i) an MRF applicant whose MRF application has been approved by the Secretary of State in accordance with regulation 8, and
(ii) the Secretary of State or a person to whom the Secretary of State has delegated a function of operating and managing an MRF under regulation 4(2),
(b) identifies the following matters to which the agreement relates—
(i) the relevant offshore wind activities and the adverse environmental effects of those activities for which the allocated measure is to compensate,
(ii) the compensation condition imposed in relation to those effects,
(iii) the allocated measure which compensates for those effects, and
(iv) the expected outcomes of the allocated measure,
(c) sets out—
(i) the amount of the MRF payment, as determined under regulation 8(3)(b), and
(ii) the terms on which the MRF payment is to be made, as determined under regulation 8(3)(c), and
(d) provides for the identification of the period of time during which the allocated measure to which the agreement relates is to be monitored in accordance with regulation 15 (monitoring etc of allocated measures).
An MRF contract forms when an approved MRF applicant enters into an agreement with the Secretary of State or an entity to whom the Secretary of State has delegated MRF management functions.
The agreement must specify the linked offshore wind activities, the environmental impacts being compensated for, the specific compensation obligation, the allocated measure, and what results are expected from that measure.
It must clearly state the monetary value of the MRF payment and the precise conditions under which that payment will be made, as decided in Regulation 8.
Furthermore, the contract must define the duration of the 'monitoring period' during which the allocated measure will be assessed for its effectiveness, as required by Regulation 15.
Fees 10. (1) The Secretary of State may determine the fees that are payable by MRF applicants or MRF participants for the purpose of enabling the Secretary of State to recover costs incurred in connection with the exercise of functions conferred by these Regulations.
(2) A fee which is payable in accordance with a determination made under paragraph (1)—
(a) is of an amount determined by the Secretary of State, which may be set, in whole or in part, by reference to the estimated value of the approved measure to which the MRF payment sought to be made by an MRF applicant relates, and
(b) is payable at such time or times as the Secretary of State may determine.
(3) The Secretary of State may determine that a fee payable in accordance with a determination made under paragraph (1) is non-refundable.
(4) The Secretary of State may amend a determination made under this regulation from time to time.
The Secretary of State has the power to set specific fees that MRF applicants or participants must pay to cover the administrative costs associated with exercising the responsibilities outlined in these Regulations.
These fees must be set by the Secretary of State, potentially linked to the estimated worth of the compensation measure the applicant intends to fund, and the Secretary of State also sets the due dates for payment.
The Secretary of State can unilaterally decide that any fee imposed under this section is not eligible for a refund.
Any fee determination can be altered or updated by the Secretary of State as necessary.
Publication of application procedure and fees 11. The Secretary of State must publish—
(a) details of the procedure for making an MRF application, as determined under regulation 7(1);
(b) information about the fees payable in accordance with a determination made under regulation 10;
(c) any amendments to the matters referred to in paragraph (a) or (b).
The Secretary of State is required to make publicly available the established procedure for submitting an MRF application, based on the rules set in Regulation 7(1).
Information regarding any fees that must be paid, as set out in Regulation 10, also requires publication.
Any subsequent changes made to either the application procedure or the fee structure must be published.
Part 5 Payments into an MRF
This part specifies the sources from which money can be directed into the Marine Recovery Funds.
Payments into an MRF 12. Payments may be made into an MRF—
(a) by the Secretary of State,
(b) by an MRF applicant in anticipation of entering into an MRF contract, or
(c) by an MRF participant in accordance with an MRF contract.
Money can be deposited into an MRF from three sources: the Secretary of State directly, an applicant before a final contract is signed (usually a deposit), or a participant fulfilling their contractual payment obligation.
Part 6 Delivery of allocated measures
This section addresses who is responsible for carrying out the approved compensatory measures and how those measures are managed post-contract.
Responsibility for delivery of allocated measures 13. (1) Paragraph (2) applies where an MRF participant pays into an MRF, in accordance with the terms of an MRF contract—
(a) the whole of an MRF payment, or
(b) the first in a series of instalments making up such a payment.
(2) Where this paragraph applies, the Secretary of State becomes responsible for the delivery of the allocated measure to which the MRF contract relates, in accordance with the terms set out in that contract.
Regulation 13(2) applies when an MRF participant has fulfilled their payment obligation, either by paying the total sum or by making the initial instalment specified in the contract.
Once this payment condition is met, the Secretary of State assumes responsibility for ensuring that the measure designated to compensate for the specified environmental damage is actually carried out, strictly following the agreed contract terms.
Payments out of an MRF 14. The Secretary of State may make payments out of an MRF towards expenditure on measures, including in particular payments—
(a) in relation to activities in connection with the development of measures for approval under regulation 6 and the giving of such approval;
(b) for the delivery of all or part of an approved measure, whether or not it is an allocated measure;
(c) for the acquisition of approved measures which have already been delivered;
(d) for the activities referred to in regulation 15 (monitoring, adapting and decommissioning of allocated measures).
The Secretary of State can authorize disbursements from an MRF to fund various measure-related costs.
These payments can cover the administrative work needed to get measures approved under Regulation 6, fund the execution of any approved measure, whether it was specifically allocated to an applicant or not.
Funds can also be used to purchase previously completed approved measures from others.
Payments can cover the costs associated with monitoring, modifying, or removing allocated compensatory measures, as outlined in Regulation 15.
Monitoring, adapting and decommissioning of allocated measures 15. (1) During the monitoring period, the Secretary of State must monitor the efficacy of an allocated measure for whose delivery the Secretary of State is responsible by virtue of regulation 13(2).
(2) Paragraph (3) applies where, as a result of the monitoring in paragraph (1), the Secretary of State is of the view that—
(a) an allocated measure to which an MRF contract relates is not achieving, or is not likely to achieve, its expected outcomes, as identified in the MRF contract, or
(b) taking one of the steps referred to in paragraph (3) would more appropriately achieve those outcomes or more appropriately compensate for the adverse environmental effects identified in the MRF contract.
(3) Where this paragraph applies, the Secretary of State may—
(a) adapt the allocated measure,
(b) replace the allocated measure with a different approved measure,
(c) add another approved measure to the allocated measure, or
(d) take a combination of the steps referred to in sub-paragraphs (a) to (c).
(4) If steps are taken to adapt an approved measure under paragraph (3)(a), the adaptations do not affect the measure’s status as an approved measure.
(5) In this regulation “monitoring period” means the period of time identified in accordance with an MRF contract, as referred to in regulation 9(d) (MRF contracts).
(6) The Secretary of State may take steps, whether at the end of the monitoring period or subsequently, to decommission an allocated measure or to prepare it for allocation to another MRF applicant.
While the measure is under its defined 'monitoring period,' the Secretary of State must assess whether the allocated measure is achieving the environmental results expected when the contract was signed, given the Secretary of State's responsibility under Regulation 13(2).
This assessment triggers further action if the measure is failing, or is likely to fail, its stated objectives, or if altering the measure offers a better way to meet the environmental goals specified in the contract.
When necessary, the Secretary of State may modify the existing measure, swap it out for another approved measure, supplement it with additional measures, or implement any combination of these actions.
Modifying an approved measure, as allowed under 15(3)(a), does not invalidate its standing as an 'approved measure.'
The 'monitoring period' is the timeframe that the contract specifically defines for this assessment phase, as mentioned in Regulation 9(d).
Whether the monitoring period ends or thereafter, the Secretary of State has the authority to dismantle the allocated measure or repurpose it for use by a different applicant.
Part 7 Changes to an MRF
This section covers modifications or ultimate closure procedures for the established Marine Recovery Funds.
Extension of territorial scope of an MRF 16. (1) Paragraph (2) applies where the Secretary of State has, in accordance with regulation 3(3) (establishment of marine recovery funds), decided to establish an MRF for one or more territories of the United Kingdom, but not for the whole of the United Kingdom.
(2) Where this paragraph applies, the Secretary of State may decide that the MRF is established for an additional territory of the United Kingdom.
This rule applies if an MRF was initially set up to cover only one or some, but not all, UK territories, as determined under Regulation 3(3).
In such a scenario, the Secretary of State has the option to expand the mandate of that specific MRF to include another UK territory.
Consultation in relation to proposed cancellation of delegation of functions 17. Before the Secretary of State decides under regulation 4(3)(c) to cancel the delegation of a function to a Scottish, Welsh or Northern Ireland public authority relating to the operation or management of an MRF, the Secretary of State must consult—
(a) the Scottish Ministers, if the proposed cancellation relates to a function delegated to a Scottish public authority;
(b) the Welsh Ministers, if the proposed cancellation relates to a function delegated to a Welsh public authority;
(c) DAERA, if the proposed cancellation relates to a function delegated to a Northern Ireland public authority.
If the Secretary of State intends to revoke a delegated management function for an MRF (as allowed under Regulation 4(3)(c)), consultation with the relevant government body is mandatory.
Consultation with the Scottish Ministers must happen if the cancellation affects a function given to a Scottish public authority.
Similarly, consultation with the Welsh Ministers is required for cancellations affecting a Welsh public authority.
Consultation with DAERA is mandatory if the cancellation impacts a delegation made to a Northern Ireland public authority.
Closure of all or part of an MRF 18. (1) Subject to paragraph (2), the Secretary of State may decide to close all or part of an MRF to new MRF applicants.
(2) Before making a decision under paragraph (1), the Secretary of State must consult—
(a) the Scottish Ministers, if the proposed closure is of a fund established for Scotland;
(b) the Welsh Ministers, if the proposed closure is of a fund established for Wales;
(c) DAERA, if the proposed closure is of a fund established for Northern Ireland.
(3) After making a decision under paragraph (1), the Secretary of State must continue to carry out the functions conferred on the Secretary of State by these Regulations in relation to MRF contracts which are already in place.
Apart from the obligations set in paragraph (2), the Secretary of State can decide to stop accepting new applications for funding into an MRF, either entirely or partially.
Before imposing this closure, the Secretary of State must first consult the relevant government body: Scottish Ministers for Scottish funds, Welsh Ministers for Welsh funds, and DAERA for Northern Ireland funds.
Crucially, even after closing the fund to new applicants, the Secretary of State must continue managing existing MRF contracts and fulfilling all related regulatory duties.
Consultation under regulation 17 or 18(2) 19. Where the Secretary of State carries out a consultation under regulation 17 or 18(2), the Secretary of State must allow an appropriate period of time for carrying out the consultation, which must be a minimum of 12 weeks.
Whenever the Secretary of State conducts a consultation regarding either cancelling a delegation (Regulation 17) or closing a fund (Regulation 18(2)), a minimum consultation timeframe of 12 weeks must be provided.
Explanatory Note (This note is not part of the Regulations)
These Regulations are made under section 292 of the Energy Act 2023 (c. 52) which enables the Secretary of State to make regulations providing for the establishment, operation and management of one or more marine recovery funds (“MRF”). An MRF is a fund into which payments may be made in respect of activities in connection with offshore wind electricity generation and out of which payments may be made towards expenditure on measures to compensate for adverse environmental effects of such activities (“measures”).
Part 2 of these Regulations enables the Secretary of State to establish one or more MRFs, either for the whole of the UK or for particular territories or combinations of territories of the UK (regulation 3). It also provides for the Secretary of State to operate and manage an MRF but enables the Secretary of State to delegate such functions (regulation 4). Measures have to be approved by the Secretary of State before a payment can be made out of an MRF in respect of them (Part 3, regulation 6).
Part 4 enables the Secretary of State to determine the procedure by which a person can make an MRF application and sets out some of the matters which such a procedure may include (regulation 7). Regulation 8 deals with decisions to approve such applications and the consequences of such decisions. Where an MRF application is successful, the terms on which the MRF payment is to be made will be reflected in an MRF contract (regulation 9). Regulation 10 enables the Secretary of State to determine the fees payable in relation to the operation and management of an MRF and regulation 11 requires information about these, as well as about the application procedure, to be published.
Part 5 (regulation 12) specifies who may make payments into an MRF. Part 6 provides that the Secretary of State becomes responsible for the delivery of a measure following the making of an MRF payment or its first instalment (regulation 13). Part 6 also provides for payments to be made out of an MRF in relation to measures (regulation 14). Regulation 15 deals with the monitoring, adapting and decommissioning of measures. Part 7 addresses changes to an MRF or its closure.
A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is available from the Department for Environment, Food and Rural Affairs, Seacole Building, 2 Marsham Street, London SW1P 4DF, and is published with an Explanatory Memorandum alongside the instrument on www.legislation.gov.uk.
This explanatory note confirms that the Regulations implement Section 292 of the Energy Act 2023, empowering the Secretary of State to create Marine Recovery Funds (MRFs) for managing compensation payments related to adverse environmental impacts from offshore wind energy generation.
Part 2 details the establishment of MRFs for the entire UK or specific territories, including the ability to delegate operational management functions (Part 2, Regulation 4), and requiring measures to be approved first (Part 3).
Part 4 covers setting the application rules for funding and finalising MRF contracts (Regulation 9), determining recoverable fees (Regulation 10), and requiring publication of these details (Regulation 11).
Part 5 specifies who can pay into the funds, while Part 6 explains that the Secretary of State takes responsibility for delivering the compensatory measure after payment (Regulation 13) and covers how these measures are monitored and adapted (Regulation 15).
Part 7 addresses adjustments or closures of the funds.
Information on the expected economic impact (impact assessment) is available from the Department for Environment, Food and Rural Affairs (Defra) and is published alongside the legislation online.