Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

2nd reading (Hansard): House of Lords
Tuesday 20th February 2018 Lords Chamber

Moved by

[Baroness Sugg]

That the Bill be now read a second time.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, as announced in the Industrial Strategy last year, automated and electric vehicle technology forms an important part of the “future of mobility” grand challenge. This grand challenge sets out the ambition to create a long-term, strategic dialogue and partnership between government and industry, and to support sectors that can drive growth in the future. The Bill creates a framework to support automated and electric vehicle technology as it continues to develop and becomes more commonplace in our lives. It will lay the insurance framework as we prepare for fully automated vehicles on our roads, and provides for infrastructure that is easy to use for electric vehicle owners. Along with electrification, automation will make profound changes to our future vehicles and mobility.

First, on automated vehicles, it is over 85 years since the UK first introduced compulsory motor insurance for drivers on British roads to protect victims of collisions involving motor vehicles. The advent of a motor insurance framework in the Road Traffic Act 1930 revolutionised the car industry, enabling the mainstream sale of vehicles and changing the way people travelled throughout the country. Today, we face another revolutionary change in how we travel by road, thanks to innovative advances in computing and sensor technology. Vehicle manufacturers are already delivering advanced driver-assistance systems, and in the near future we will see the arrival of vehicles capable of safely driving themselves, at least in some circumstances or situations.

Noble Lords may recall our debate in December on last year’s report Connected and Autonomous Vehicles: The Future? from the Lords Science and Technology Committee, which highlighted how automated vehicles could present an enormous opportunity for the UK, flagged some of the challenges and made recommendations to government. I thank the committee, led by my noble friend Lord Selborne, for the helpful and insightful contributions to this exciting field of automotive technology, and I look forward to this discussion continuing through the passage of the Bill.

The benefits of this new technology, for both mobility and wider society, have huge potential. The public could have their lives transformed for the better by the introduction of new and innovative mobility solutions. This could be particularly transformative for those who cannot currently drive: for instance, the elderly and people with disabilities that impair them from easily accessing different transport modes. Automated vehicles also have the potential to improve road safety by reducing the influence of human error. In 2016, human error was involved in over 85% of all reported UK road incidents. By automating the driving task, human lives could be saved on our roads.

Along with opportunities, there are many challenges in the area of automated vehicles, not least ethical questions and public acceptance of this technology. The Government are taking a number of steps to address these wider issues, including carrying out a three-year project with the Law Commission to set out proposals for a long-term regulatory framework for self-driving vehicles and investing in public demonstrations of these vehicles. The Bill that we are discussing today focuses on just a few elements of the Government’s work in this area.

To ensure the safe arrival of automated vehicles, we will need a compulsory motor insurance framework that is fit for purpose to support consumers and businesses involved in accidents. The Bill provides that framework. Currently, as the driver’s use of the vehicle, rather than the vehicle itself, is insured, collisions involving automated vehicles that occur when the driver is legitimately disengaged from the driving task may not be covered. Having consulted widely and worked closely with parliamentary colleagues, the automotive industry and the insurance industry, the Government are creating a new compulsory insurance framework within the Bill that covers motorists both when they are driving and when the driver has legitimately handed control to the vehicle. This framework will place a first-instance liability on insurers so that they can pay out to victims and, where they can, recover costs from the liable party.

We will ensure that victims continue to have quick and fair access to compensation by taking steps to align the way that consumers can buy insurance to the way they do now. As the Bill has progressed, we have been reassured of this approach by the support offered by both the insurance and the vehicle manufacturing industries. James Dalton, director of general insurance policy at the Association of British Insurers, has said:

“We support the approach the Government has taken in the Bill, as this will give the industry time to prepare for the commercial rollout of fully automated driving technology”.


As I said, these measures are part of a broader programme to ensure that automated technology is developed here and that, once ready, we are prepared to see it deployed on our roads.

While we prepare for the advent of fully automated vehicle technology, the Bill also seeks to encourage the use of electric vehicles by expanding and improving the network of charge points and hydrogen refuelling stations for plug-in and fuel cell electric vehicles. It is this Government’s ambition that by 2050 almost every car and van will be zero-emission. This commitment to zero-emission vehicles is technology neutral and should be industry-led but the Government have an important role to play. We are acting now to ensure that the right infrastructure is available right across the UK to meet the needs of current and future electric vehicle drivers. More electric vehicles on our roads will reduce pollution and improve local air quality, as well as deliver economic benefits. One in five battery electric cars sold in Europe in 2016 was made in the UK.

As numbers on our roads increase, owners need to be able to drive their vehicles and have confidence that they will be able to easily locate and conveniently access public charging infrastructure if they need to. We are investing nearly £1.5 billion between April 2015 and March 2021 to boost the number of electric vehicles on UK roads, and the Bill is a key enabler in delivering the infrastructure to support this.

The measures in the Bill will give the Government powers to make it easier for electric vehicle owners to charge their vehicles. To improve the consumer experience of using public charge points, the Bill includes the power to mandate a common method of payment and ensure that they are equipped with certain types of physical connector. This will give consumers confidence that, when they arrive at a public charge point, they will be able to plug in and pay conveniently.

The Bill also includes powers to mandate the provision of open data on the location and availability of charge points to a common standard. This will help drivers find charge points quickly and easily when they need to. To ensure the provision of sufficient infrastructure at strategic sites and overcome fears of range anxiety for anyone undertaking longer journeys, the Bill provides powers to require motorway service areas and large fuel retailers to provide charge points and hydrogen refuelling facilities.

The Bill also provides powers to require charge points in the future to be “smart”—that is, they will be able to receive, understand and respond to signals sent by third parties, such as National Grid. The Bill also provides a power to ensure that data transmitted from charge points to specified bodies such as National Grid is not stopped or disrupted so that energy demand can be accurately mapped and addressed. These requirements will enable the flexible management of electricity supply and demand and the ability for electricity networks to balance themselves at times of peak demand. This will also make sure that consumers can take advantage of managing their own charging patterns—for example, charging up when electricity is cheapest and potentially even selling electricity back to the grid at times of peak demand.

I fully acknowledge that with both automated and electric vehicles, there are many areas that the Government need to focus on, take action on and invest in. The Bill addresses just some of these issues but, taken together, the measures in it demonstrate the readiness of the UK to be part of this latest transport revolution to deliver easier, cleaner and safer journeys for everyone. The Bill is designed to put the UK on the front foot, ready to take advantage of the social and economic benefits these technologies will bring. I beg to move.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

2nd reading (Hansard - continued): House of Lords
Tuesday 20th February 2018 Lords Chamber

[Baroness Sugg]

My Lords, this Bill is an important piece of the Government’s broad programme of work to ensure that the UK continues researching, developing, manufacturing and deploying innovation in order to harness improvements in vehicle technology. I thank all noble Lords for their contributions. I think it is fair to say that there is more concern from noble Lords on the measures related to automated vehicles than electric ones, so I will begin by addressing those.

The noble Lord, Lord Campbell-Savours, and my noble friend Lord Lucas raised the question of legitimate handover. Transferring control of an automated vehicle from a human driver to the automated system will, of course, require a handover process which ensures that the vehicle is always under the control of either the driver or the automated system. We envisage that vehicle manufacturers will design that system so that it provides prompts to the driver, making them aware when it is legitimate for them to hand over control. We will need to ensure that a driver does not undertake a non-legitimate handover and tries to force the vehicle to take control when it is inappropriate or operate the automated system when it is not designed to be operated. If they do so, they may ultimately be liable for the consequences of those actions.

The noble Lord, Lord Campbell-Savours, my noble friend Lord Lucas, the noble Lord, Lord Tunnicliffe, and many other noble Lords raised the complex issue of software. It is not the policy intent or function of the Bill to provide the regulatory framework for safety and security standards of the software. That is being developed with international standards at the level of the United Nations Economic Commission for Europe and, domestically, as part of our ongoing regulatory programme. We are playing a key part in the United Nations Economic Commission and chair a number of its committees. Based on discussions with manufacturers, we expect that they will inform the owners of cars when a safety update to the vehicle software is needed. However, the overwhelming majority of these updates will be made automatically. The wording in the Bill places the onus on the manufacturer to communicate effectively about the need to install updates, but it is a complicated issue. As and when software updates are developed further, we will need to ensure that there is clear guidance on this for both manufacturers and vehicle owners so that it is clear where the responsibilities lie.

There are several factors which could influence the reason why a collision occurred. At this stage, we are keeping the process of determining liability as it is now, with the courts ultimately making judgments based on the facts. Under our proposals, the insurers will compensate the victim and be able to recover from the liable party, which could include the manufacturer or any other party. The three issues of legitimate handover, software and liability are examples of how complicated and complex this area is. I look forward to getting into the detail of it in Committee.

My noble friend Lord Goschen, the noble Lord, Lord Berkeley, and other noble Lords raised the issue of ethics. There are many important questions to be asked about ethics when driving. One of these is how drivers respond when a collision appears unavoidable. Right now, we expect drivers to do the best they can. Given that, as many noble Lords have highlighted, the majority of road collisions involve some form of human error, the advent of automation promises to reduce the number of unavoidable collisions. However, it raises additional question about ethics. As my noble friend Lord Attlee highlighted, with automation we can avoid the risks of novice drivers or someone driving impaired through drink, drugs or tiredness, but reduction is not elimination and at some point automated vehicles will be involved in unavoidable collisions.

We expect the automated vehicle will be able to identify where there is a pedestrian present but may well not be able to identify any more details around the pedestrian’s age or gender. We do not yet know about these details. When faced with such a collision, we imagine that the automated vehicle will be programmed to maximise safety, but, again, this is still being developed. We must address these issues publicly and transparently. Ethical issues were an important focus of the Lords Science and Technology Committee’s report, which calls for further government-commissioned social research. We are taking forward several actions from that report to help in that discussion.

My noble friend Lord Goschen also asked about the wider regulatory framework. I spoke about the Law Commission in my opening remarks. The noble Lord, Lord Berkeley, also mentioned that. I will give a bit more detail on that which may address some of the concerns of the noble Baroness, Lady Randerson, and the noble Lord, Lord Tunnicliffe. The Law Commission is undertaking a three-year programme to review the regulatory framework for road-based automated vehicles with a view to enable their safe deployment. Its task is to provide recommendations for a legal framework which can remain effective in the face of vehicles that may no longer require a human driver, and its work will be part of a national conversation on this important future technology. The commission is likely to consider how automated vehicles could fit within the existing regulation of public transport frameworks and look at on-demand passenger transport provision, a point raised by my noble friend Lord Attlee. Again, where ethical considerations are relevant, the Law Commission will highlight the choices which need to be made regulation-wise. It will avoid judging what may or may not be desirable ethical outcomes but will set out possible approaches to promote consistency and transparency. The review is being undertaken to explore the law relating to the deployment of automated vehicles in the United Kingdom and will consider changes necessary to provide a robust and future-proof legal framework to support the deployment of the vehicles. It will also look at areas such as civil and criminal liability frameworks as they apply in the context of automated vehicles, product liability, sellers’ liability, the law of negligence and criminal sanctions et cetera.

The noble Lord, Lord Berkeley, asked what data will be available from automated vehicles. My noble friend Lord Attlee highlighted the importance of ensuring that this data is available to all those who need it. The noble Baroness, Lady Randerson, and the noble Lord, Lord Tunnicliffe, rightly raised concerns about the safety of sharing this data from automated vehicles. These vehicles will generate a huge amount of data during their day-to-day operation. How this data is shared, and with whom, will have an impact on an individual’s privacy. This, of course, is an issue which the Government take very seriously. It is expected that the data recorders, like most new vehicle technologies, will be regulated at an international level. The international debate on what data needs to be collected beyond who or what was in control of the automated vehicle still needs to take place. As I said, we are actively engaged in the relevant discussions on that at the United Nations Economic Commission for Europe. We have also begun speaking to relevant parts of the industry to build our understanding of who will need to access the data, how it should be shared and how to manage concerns over privacy. We will continue this engagement as the technology develops. As the noble Baroness, Lady Randerson, pointed out, who actually owns that technology is an important question too.

Many noble Lords raised the issue of standards. I take this opportunity to reassure the noble and gallant Lord, Lord Craig, and indeed all noble Lords, that the Government take very seriously the approval process which ensures that all vehicles on our roads are safe for use. As my noble friend Lord Attlee pointed out, the Government already have the power to make regulations under the Road Traffic Act 1988, which could be used for automated and electric vehicles, but we certainly anticipate the need to legislate further to safely facilitate the deployment of automated vehicles. It is too early to legislate for standards at this time. As many noble Lords have pointed out, the development of automated vehicles is in its infancy and legislating too early or unilaterally may hinder our development of the technology and constrain our ability to steer consensus on international standards.

On additional regulation-making powers to cover automated vehicles as suggested by my noble friends Lord Borwick and Lord Lucas, that would indeed allow more flexibility in the future and potentially future-proof this legislation. I am used to being much more defensive when I am asking for Secretary of State powers, so I am very happy to take that suggestion away and consider it further ahead of Committee.

The definitions of “monitoring” and “safely” were raised by the noble Lord, Lord Campbell-Savours, and my noble friends Lord Selborne and Lord Borwick. It is, of course, imperative that we get these words right and that we do our best to avoid complex legal arguments in the future. I will take that issue away for consideration. I am very happy to meet noble Lords to discuss this further ahead of Committee, but look forward to discussing it further then.

My noble friend Lord Lucas makes another convincing case for automated vehicles on rail lines. I was very interested to discuss this issue with him recently and look forward to discussing it further as plans develop.

I turn to electric vehicles and the electricity system. The noble Lord, Lord Birt, and several other noble Lords mentioned managing loads on the system. Of course, more electric vehicles on our roads means that we will need more electricity to power them. Unmanaged, this could add to the pressure on power generation in the grid. However, the measures in the Bill are designed to allow us to manage future demand and control the cost to customers. The national grid predicts only a 10% increase in demand by 2040 from electric vehicles, which is around 6 gigawatts, and is confident that it can cope. In July 2017, the Government launched their smart plan which set out how the system, including new sources of demand from electric vehicles, can be managed more efficiently. The measures in the Bill are designed to relieve the pressure on the grid from electric vehicles charging during peak time. When drivers arrive home in the evening, they will most likely need their car to be charged only for when they leave in the morning. It is not necessary for this charging to take place during the evening peak time. Ideally, it will be shifted to the early hour off-peak times.

As my noble friend Lord Attlee highlighted, smart charging will encourage electric vehicle users to charge their cars at a time when it is most beneficial for both them and the energy system. This should be cheaper for consumers as well as reducing peak loads on the energy system. This is an important area, and I look forward to finding the YouTube clip illustrating this mentioned by my noble friend Lord Goschen. The noble Baroness, Lady Worthington, made a compelling case for smart charging. Clause 3 contains powers to make new charge points capable of monitoring energy consumption and transmitting that data. Clause 12 contains the power to require this data to be sent and made available to relevant third parties, so there is a lot in the Bill on smart charging, but again I look forward to discussing that further.

The noble Lord, Lord Berkeley, asked about freight. We want all road vehicles, not just cars, to be zero-emission vehicles. Personal use cars are perhaps more developed than haulage vehicles in this regard, but this is a key area which we want to support. We have funded £20 million-worth of innovation trials that have put around 500 low-emission vehicles into UK fleets of companies such as Waitrose, DHL and UPS. That funding has included supporting infrastructure. The measures in the Bill cover electric batteries and hydrogen fuel cell trucks as well as cars, but it will be interesting to see whether we can do more on that.

The noble Lord, Lord Brooke, spoke about the importance of extending the availability of charge points, as did many other noble Lords. The Bill provides powers to require the installation of public charging points only at motorway service areas and large fuel retailers. The idea behind that is that these strategic locations are particularly important to address anxiety about range for drivers on longer journeys. However, it is clear that we will need many more charging points across the UK in the future. The recent Budget committed us to place greater emphasis on locating charge points at rail stations. We have enhanced capital allowances to offer tax relief for companies to install recharging equipment. Noble Lords also mentioned golf clubs, which is a very good idea. We are looking at charge points being installed at supermarkets, hotels and retail centres. We shall consider adding the wider provision of charge points to the Bill but, as I said, currently the focus is just on the large fuel retailers.

As the noble Baroness, Lady Worthington, and other noble Lords pointed out, planning policy is an important tool in encouraging both residential and non-residential developments to bring charge point infrastructure into their thinking. Local planning policies are guided by the National Planning Policy Framework, which stipulates that developments should, where practical, incorporate charging facilities. In the Budget we announced additional initiatives. After the Grenfell review, the Government will update the building regulations to mandate that all new residential developments must contain the enabling cabling for charge points. The Government will also update road works guidance for local authorities so that infrastructure is installed when these works are happening anyway. Officials in my department are working on the details of these measures with our colleagues in the Ministry of Housing, Communities and Local Government; the suggestion made by the noble Lord, Lord Brooke, of working together with communities to deliver these charge points is good, and we will take that forward.

[Lord Campbell-Savours]

My Lords, have the Government ruled out at this stage a differential in the unit price for electricity used by someone to charge their car as against the unit price for electricity consumed in the home for, say, white goods, lighting and heating?

[Baroness Sugg]

I do not believe that that has been ruled out. I will come on to our strategy, which we will publish shortly; it will look at those kinds of issues.

The noble Baroness, Lady Worthington, made a number of wider and compelling points about transport emissions and how we can better influence investment decisions. I am afraid that I do not have time to go into those now or to begin to address them, but I hope that the noble Baroness will meet me so that we can discuss that further.

The noble Lord, Lord Birt, asked when we will publish our updated strategy, which will look at managing electricity and increasing charging points. We last set out our strategy on electric vehicles in 2013, so it is due an update. While our ambition that nearly all cars and vans should be zero-emissions vehicles by 2050 remains unchanged, obviously the market and technology have developed hugely since then, as the noble Lord, Lord Birt, pointed out. It is therefore right that we review the steps we need to deliver our ambition on this. We plan to publish the strategy by the end of March, and I hope that it will address many of the wider points raised today by the noble Baronesses, Lady Randerson and Lady Worthington, the noble Lord, Lord Tunnicliffe, and other noble Lords.

The noble Lord, Lord Berkeley, made the sensible suggestion that we should have one universal charging point. The shift to electric vehicles is being driven by the global automotive industry. The Bill does not set out precisely which charging connector could be used as the common standard in any regulation. However, it will allow technical specifications to be set so that drivers can be confident that they will be able to plug in and charge when they arrive at public charge points. I am afraid that I do not have the information about how many of these charge points are operational, but I will go back to see whether we can find that out. The noble Lord, Lord Brooke, is quite right that we must ensure that these all function as well.

My noble friend Lord Selborne and the noble Baroness, Lady Randerson, highlighted the importance of skills, and I agree that we must ensure that the UK has a suitably skilled workforce. Motorists with electric vehicles will clearly expect the same level of knowledge and customer service that they have come to expect in connection with conventional vehicles, and, as the noble Baroness, Lady Randerson, points out, it is important that we make sure that those trained in these vehicles are trained safely.

As a professional body for the automotive industry, the Institute of the Motor Industry is well placed to help government understand the challenge of ensuring that maintenance and repair is carried out in a professional and safe manner. There are already some level 1 to 3 qualifications in electric vehicle maintenance and repair, and between 30 and 50 UK colleges and training providers offer these courses. However, we can of course do more, and I will look closely at the suggestion made by the noble Baroness, Lady Randerson, on this. We recognise that this is a potential barrier for the uptake of electric vehicles and we are already taking steps to address this.

On the Parliamentary Estate—I wondered whether this would come up—there are currently only two charging points in the underground car park. A major project is under way to refurbish the car park, and around 80 car charging sockets are planned—10% of the planned car parking spaces—with the capacity to add more in the future. The car park refurbishment project started in the summer of last year and is due to finish in summer 2019.

[Baroness Randerson]

I add, as a piece of useful information, that in the underground car park there are also a lot of three-pin plug sockets, and you are entitled to park your car overnight and recharge it there using an ordinary plug. So the facility is there, but of course there is nothing in the House of Lords car park.

--- Later in debate ---

[Baroness Sugg]

Absolutely. I hope that the noble Baroness, Lady Deech, will be able to benefit from that and from the new charge points; as a pioneer of the new technology she certainly deserves to. However, I take the point that those are only for the underground car park and I will certainly follow up on whether we can do anything for the House of Lords car park.

The noble Baronesses, Lady Deech and Lady Randerson, and other electric vehicle users all highlighted the need for interoperability and access to these charge points. We recognise this, and the Bill has powers to address the inconvenience to drivers of carrying around lots of different means of access to the services, whether that is multiple memberships, regional memberships, access cards or unique applications. Obligations that the UK agreed to in the European Union alternative fuels infrastructure directive 2014 were implemented nationally in October and go a little way towards rectifying the current problems. That means that memberships or an advanced notice period can no longer be required before charge point access is granted, which should, we hope, assist in removing the necessity for multiple memberships. However, it does not remove the problem of a lack of consistency in the way consumers are expected to access different public charge points. Each operator remains able to determine whether access is by smartphone app, SMS text, phone number or any other method. As there are currently no statutory duties on operators, our only option is to take powers to legislate to ensure that drivers are offered a common method of access, and the Bill gives this power.

My noble friend Lord Borwick and the noble Baroness, Lady Randerson, raised the issue of hydrogen. The use of “public charging points” throughout the Bill includes hydrogen refuelling as per the definition in Clause 8—although, I acknowledge, not particularly clearly. These words are very much designed to cover hydrogen refuelling, but we will consider whether we can do something more on that in the Bill.

On the question of level 3 vehicles, raised by the noble Baroness, Lady Randerson, the Bill does not cover cars which are currently on the road; it is designed to cover only fully automated vehicles, or so-called level 5 vehicles.

My noble friend Lord Borwick and the noble Lord, Lord Tunnicliffe, raised the use of delegated powers. That is of course important. We aim to be as transparent as possible in the Bill as to what will follow in regulations. The Delegated Powers and Regulatory Reform Committee is considering our memorandum and is due to publish before Committee. Policy scoping notes are being prepared, which outline the policy intent, the proposed content, the approach to preparing the regulations and the indicative timings for each power, and we will make sure that these are available to Peers prior to Committee so that they can be properly scrutinised.

Time is running out: if I have not been able to answer all the questions raised today, I will follow up in writing. Noble Lords have highlighted the narrow scope of the Bill, which indeed addresses only specific issues in this area. However, as my noble friend Lord Goschen said, this is a first step but an important one. The Bill will help ensure that the UK is ready for the change coming in vehicles and mobility. I hope that the advent of automated vehicles will not lead to the type of world that the noble Lord, Lord Campbell-Savours, described. To use a term that is popular today, it sounded like a “Mad Max” dystopia.

The powers in the Bill will help us deliver one of the world’s best recharging networks to support the Government’s ambition for almost every car and van to be a zero-emissions vehicle by 2050. Looking to the future, the Bill brings forward an important step by providing an insurance framework for autonomous vehicles which will put the UK at the forefront of automated vehicle ownership and use when this technology becomes available.

As I said, I am grateful for the contributions from all noble Lords this afternoon, and for the knowledge and experience that will help to improve the Bill as it passes through your Lordships’ House. Many interesting points have been raised, and I will consider these carefully before the Bill reaches Committee.

Bill read a second time and committed to a Grand Committee.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

Committee: 1st sitting (Hansard): House of Lords
Wednesday 9th May 2018 Lords Chamber

[Lord Berkeley]

I am grateful for the noble Lord’s explanation. It depends on whether the road is as defined in Clause 1(1)(a),

“roads or in other public places”,

on whether or not it will be a railway.

I want to point out that autonomous railways are happening at the moment. The centre section of the Thameslink railway is effectively driverless. It does not go very far—from Kings Cross St Pancras to Blackfriars—but it does not need a driver. Of course, a driver is there, but that is the state of technology on the mainline railways, and the underground railways and metros have done it for a long time. Whether the same number of passengers could be taken by these autonomous pods up a railway, road or whatever, compared with a 12-car train every two minutes with people standing is a debate we can have. But I am not sure that I would support widening this Bill to get that far.

I have also been studying a few issues related to the content of the Bill, and recently met the author Christian Wolmar who has written a book, Driverless Cars: On A Road To Nowhere. I recommend that the Minister and other speakers to read it; I am not going to give it away today. Without necessarily supporting what he says, there are issues relating to the human reaction to automation that are quite useful to study, including how close a vehicle can get to the one in front, and all the things we spoke about on Second Reading, which I shall not repeat today. It may take rather longer than some noble Lords think for all this to come about. We are certainly right to debate it now and to concentrate on common standards.

I certainly support my noble friend Lord Tunnicliffe. I think he was speaking to Amendment 8, which I did not know was in this group, but he made a good speech and I certainly support it.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, at the outset of this debate today on automated vehicles, I think it is helpful to set out what this Bill is trying to achieve. The provisions within the automated part of the Automated and Electric Vehicles Bill extend compulsory motor vehicle insurance to cover the use of automated vehicles when operating in automated mode, so that victims of an accident caused by an automated vehicle while driving itself will be covered by the compulsory insurance in place on the vehicle. The insurer would be initially liable to pay compensation to any victim, including to the driver who had legitimately handed control to the vehicle. The insurer then would have the right to recover costs from any liable parties under existing UK common law and product liability law.

The Bill therefore requires the Secretary of State to publish a list of automated vehicles which are,

“designed or adapted to be capable, in at least some circumstances or situations, of safely driving themselves”.

The purpose of this power is to allow manufacturers, owners of vehicles and insurers to know if the extension to compulsory motor insurance in this legislation applies to their vehicle. This will provide certainty to the automotive and insurance industries, as well as clarity to the public. The scope of the Bill applies to highly and fully automated vehicles only—that is, vehicles for which, when driving themselves, there is no monitoring or controlling role required of the driver.

This is broadly equivalent, as the noble Baroness, Lady Randerson, said, to levels 4 and 5, as defined by the Society of Automotive Engineers—the SAE—and does not apply to vehicles with lower levels of automated technology or utilising advanced driver assistance systems, no matter how sophisticated. It does not apply to level 3 vehicles, and the Tesla vehicle the noble Baroness mentioned would not be covered. We will come to this point later, but level 3 cars still require monitoring by a driver, so they are not fully automatic and are not covered by the Bill. It also only applies to automated vehicles that are or might lawfully be used on roads or in other public places in Great Britain.

I acknowledge the point made by many noble Lords on the narrow scope of this Bill. It was designed with a specific purpose in mind, and I look forward to hearing the views of noble Lords from across the House on the amendment from my noble friend Lord Borwick introducing more powers for the Government.

Regarding the first amendment of the noble Baroness, Lady Randerson, on the inclusion of vehicles manufactured and purchased outside Great Britain, there is already a long-established process, along with guidance on the GOV.UK website, which covers the permanent use of foreign-registered vehicles in the UK. As part of this process, any vehicle which drives on UK roads must already be type-approved. For temporary use of vehicles on our roads, through the Motor Insurers’ Bureau we operate a Green Card scheme—an international certificate of insurance to make sure that victims of accidents involving foreign-registered vehicles are covered. We think this process would be the same for automated vehicles and, therefore, do not think the amendment is necessary at this stage because all vehicles manufactured and/or purchased outside Great Britain will be covered by the existing text.

The Bill does not define automated vehicles by SAE levels, as proposed by the noble Baroness, Lady Randerson, in Amendment 2. This is because the SAE levels are generalised industry categories describing a broad capability, which could change over time. The type approval of an automated vehicle, the criteria of which have not yet been agreed, will not be carried out according to SAE levels of automation. Noble Lords may find it helpful to note that the UNECE working parties that set the international standards by which vehicles will be type-approved and used have rejected the SAE definitions because they do not meet the level of precision needed for regulation. Instead, they simply set out broad definitions.

The categories set out by the SAE are under continual revision. A direct link to the levels creates problems if the definitions move away from what is needed for the proper functioning of the Bill. I want to be clear: we are not rejecting the SAE levels. They are helpful, but they do not—the UNECE agrees with us here—meet the level of precision needed for type approval and regulation.

[Lord Berkeley]

Could the noble Baroness explain what she means by “manufactured in Great Britain”? She is aware of all the Brexit debates about certificates of origin, and that bits and pieces and components go right across the world and back again. What exactly do we mean by “manufactured in Great Britain”? Is it just the name on the front?

[Baroness Sugg]

Happily, the Bill covers vehicles manufactured in Great Britain and abroad: it covers any vehicle. I am afraid I do not have an exact definition, but I imagine that it is when the majority is manufactured in the UK. As I say, the Bill will cover all vehicles, wherever they are manufactured.

On Amendment 33, I am in complete agreement with the noble Lord, Lord Tunnicliffe, that we must ensure that all new automated vehicles are safe and secure for use in Great Britain. We have many amendments to come on that. We are working at the United Nations level to develop international requirements for vehicle manufacturers on both vehicle safety and cybersecurity. These standards, which are still being developed, will then form the basis of the type approval process which automated vehicles, like conventional vehicles today, must pass before they can be sold for safe use on British roads or in other public places, or get on to the Secretary of State’s list for insurance.

Based on the international UNECE standards, which the UK is actively contributing to, and our evolving domestic regulatory programme, we expect it to be very clear which vehicles, including their software, can safely operate in automated mode. We do not think it appropriate at this early stage to set too precise criteria.

[Lord Hunt of Chesterton]

You are still not explaining how people will understand and be informed of this. Is there no regulation for that? As I understand it, even manufacturers are conscious of this being uncontrolled. When you buy such a car, you do not know what kind of information you will have and how you are going to be taught about it. As I mentioned, British cars are being provided with little information, unlike the Tesla car. Even for that complicated car they apparently need an hour and a half or whatever it is for training. Is anything being done about that?

[Baroness Sugg]

As the noble Lord rightly says, for level 3 partially automated cars there is a training system in place before the vehicle is used. For levels 4 and 5 that is something we are working on. We have not seen these vehicles yet, but I agree it will be essential to ensure that people who use these vehicles are able to use them safely. That is part of what we will be looking at, as we put together the regulations.

We think that we need to maintain flexibility to ensure that all the vehicles relevant to Clause 1 can be identified and included in the list, so that we can give insurers the clarity over which vehicles require insurance.

On hacking, we are working with the UK security agencies, including the Centre for the Protection of National Infrastructure, and the new National Cyber Security Centre, to engage directly with industry, raising awareness and promoting best practice. Cybersecurity, including for automated vehicles, has been identified as a top priority in the national security strategy. Of course, it is essential that all parties involved in the manufacturing supply chain, from designers and engineers to retailers and executives, are provided with a consistent set of guidelines that support the industry. As part of this work, we developed, consulted with industry, and published in August last year the Principles of Cyber Security for Connected and Automated Vehicles, a guidance document for the automotive industry on good cybersecurity. Those principles are now informing the work that we do at UNECE level on the taskforce on cybersecurity, which is developing standards, practices, directives, and regulations concerning cybersecurity and their applicability to the automotive industry. We have also set up an automotive information exchange to promote sharing of intelligence and best practice for effective cybersecurity.

I very much agree with the intention of the amendment, but we think that both the safety and cybersecurity requirements of automated vehicles will be covered in future regulations, once agreed at this international level. I hope that, given those arguments, the noble Baroness feels able to withdraw her amendment.

[Lord Tunnicliffe]

The Minister made a very important statement at the beginning, so I want to make sure that I heard it correctly. I think that she said that the responsibility of the Secretary of State would be to list the vehicles that could safely be driven automatically or would safely drive themselves automatically on the roads. Does that mean that the Secretary of State will effectively be certificating these vehicles as being safe?

[Baroness Sugg]

The vehicles will be certified through the type approval process, following what has been agreed at international levels. That is what will decide whether or not those vehicles are safe. Once that type of approval process has happened, those vehicles will then go on the Secretary of State’s list, which is purely for insurance purposes, so that insurance companies and purchasers of vehicles can understand whether those vehicles require automated vehicle insurance. So it will be a separate process to the list on exactly how those vehicles are certified, which is what is subject to ongoing conversations at international level. We do not yet have those standards, but we are working towards getting them, which will certify whether a vehicle is safe. Given that, I hope that the noble Baroness feels able to withdraw her amendment at this stage.

[Lord Hunt of Chesterton]

What is the timetable for this to be done?

[Baroness Sugg]

I am afraid that we do not have a specific timetable. Obviously, technology is developing all the time, and we do not yet have the technology available for type 4 and type 5 vehicles. We are working closely, as I say, at United Nations level, and are also working as part of that with both vehicle and software manufacturers to be able to define those standards. Given that we do not yet have the technology, we are not yet able to define the standards, so I am afraid that it will slightly depend on how things progress. However, we play a leading role in this and, as soon as these international standards are set, we will then be able to use them for our type approval for standards within the UK and declare it legal and safe for those vehicles to be driven in the UK.

[Baroness Randerson]

I thank noble Lords and the Minister for her comments, and particularly thank the noble Lord, Lord Borwick, for his support on the need for a more precise definition.

In response to the noble Lord, Lord Lucas, I clarify that I have specified levels 4 and 5 because that is what the Government have said that the Bill applies to. If the Government want it to apply to level 3 as well, that is fine. The principle is the need for a clearer definition; the use of levels rather than the definition is what I am suggesting.

The noble Lord, Lord Berkeley, asked how long it would take to get used to automated vehicles. If you drive a minibus, it comes as a bit of a shock to find that you are sort of on top of the car in front of you, in comparison with driving a car, when you expect to have a bonnet in front of you. We are getting used to new ways of driving. As I have mentioned before to noble Lords, I have an electric car, and that is a totally different style of driving. We will get used to it more quickly than perhaps some people think.

--- Later in debate ---

[Lord Lucas]

My Lords, if we imagine a future with a lot of autonomous vehicles around, one of the things that such a vehicle needs to do is predict how other autonomous vehicles will react in particular circumstances—that is, if faced with a sudden unexpected obstacle, the priority will be to veer to the left, say. That knowledge can come only on the basis of a shared understanding of the software that each of them has and of the capabilities in terms of awareness of the local picture and the wider picture that are built into the vehicle. To allow those things to be tampered with by back-street garages and amateur electricians seems to me to go against the whole advantage of moving towards autonomy. Therefore I very much support what the noble Lord, Lord Tunnicliffe, is aiming at. I think we need really clear control of the quality of maintenance.

I can see what the noble Baroness, Lady Randerson, is aiming at in removing “or adapted”; we do not allow people to adapt Boeing 747s in a random sort of way. They might do it to trial things and have a bit of their own airspace to wander around in while they are doing it, but we should be really cautious in allowing widespread adaptation. Every adaptation introduces another complication that every other autonomous vehicle would have to be aware of. Adaptation should be confined to test areas and test tracks, and what appears on the public scene should be a well-understood, well-documented vehicle—and not too many different kinds, please.

[Baroness Sugg]

My Lords, I will first address Amendment 3, tabled by the noble Baroness, Lady Randerson, regarding the removal of “or adapted” from Clause 1(1). It may be that in the future vehicles could be adapted to be capable of driving themselves safely. It could also be the case that some future vehicles are designed to be ready for full automation at some point after their sale but not yet fully capable.

I do understand the concern around this, as we have not yet seen such vehicles in the marketplace, but, given that we cannot predict how these vehicles will evolve, it is important to ensure that we do not prematurely preclude such technology—or, as the noble and gallant Lord, Lord Craig of Radley, put it, slam the door on potential innovation. Happily, it would not be up to the Secretary of State or, indeed, the Department for Transport, to decide whether an adapted vehicle was safe. Whether it was a vehicle adapted by an enthusiast in their back yard, or with a software update from Tesla, it would be subject to the same type of approval process before it could be legally used on our roads. So I can reassure noble Lords that a vehicle with any such adaptation would be on the Clause 1 list—and therefore have insurance, and be on our roads legally—only if the adaptation was considered safe.

On Amendment 29, the noble Lord, Lord Tunnicliffe, is of course absolutely right to be concerned that automated vehicles meet appropriate safety standards and that the inspection, repair and maintenance of an automated vehicle is done in an authorised way. Motorists with these new vehicles will clearly expect the same level of knowledge and customer service they have come to expect for conventional vehicles. However, we believe that at this stage it is too early to develop a full training, licensing, and accreditation scheme for automated vehicles, or to legislate on how automated vehicles are inspected, maintained and repaired.

As I have said, the Bill is focused on ensuring a sensible insurance regime, and we do not believe that it is the right time to legislate further on maintenance in the manner outlined by the noble Lord, Lord Tunnicliffe, given that the UNECE harmonised technical safety standards have not yet been agreed for these vehicles. As I said in debate on previous groups, these conversations around safety standards are ongoing, with the UK actively participating in these important discussions.

[Lord Tunnicliffe]

Might the noble Baroness meet us half way by giving us an assurance that at an appropriate time such a scheme will be developed?

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[Baroness Sugg]

I am happy to give the noble Lord that assurance. I think that, in order for the UK to remain a leader in the development and deployment of AV technology, we will of course need the right skills. If we are to secure an automated future we will need them in ongoing repair and maintenance as well as in design and technology.

We are working with the relevant technology and professional bodies on this issue, alongside the DVSA. We are also working with the Automotive Council on improving skills in the sector by developing new trailblazer apprenticeships and targeting areas where there are skills shortages, as well as co-ordinating work across the sectors. As the professional body for the automotive industry, the Institute of the Motor Industry is well placed to help the Government understand the challenges of ensuring that automated vehicle maintenance and repair is carried out in a professional and safe manner. We hold regular meetings with the IMI, at both official and ministerial level, to discuss the potential models of regulation that we will need for AV skills testing.

As I said, I understand noble Lords’ concern in this area. As the technology develops and matures we will consider such an accreditation scheme and what, if any, government intervention would be needed to ensure that we have enough skills to make sure that the industry can develop. We fully expect there to be other pieces of regulatory and legislative reform in due course as part of our wider programme.

While I can reassure noble Lords that the work on training and accreditation is progressing well, I am afraid—I feel I will be saying this a lot today—that, as the Bill concerns an insurance framework, we do not feel it is an appropriate place to include such an amendment. But I hope that the reassurances I have given on the work that is ongoing in this area, and that in due course we will be looking to implement such a scheme, will allow the noble Baroness to withdraw her amendment.

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[Lord Lucas]

My Lords, I think there is a difficulty with what my noble friend’s Amendment 4 proposes. There is no reason to suppose that we will not have vehicles that are dual-capable—capable of being driven by people and driven autonomously—maybe as part of the evolution to a fully autonomous system. I do not suspect that a farmer will want their Land Rover to be autonomous for a long time in the future, except when it is on a roadway and switching between two modes may become quite important. Therefore, a vehicle that is capable of switching between the two modes, and is therefore not always autonomous, will be an important part of the evolution to autonomous vehicles.

I also suspect that once a vehicle is autonomous, it will not ever be truly not in someone’s charge. If you have a set of vehicles which are essentially public vehicles—small buses, which are just picked up on the street and you take one to wherever you are going—some kind of alarm system will be necessary. There will probably be some oversight in case of a known problem: you will want to say, “Right, all vehicles within a particular radius shall slow down or stop because there appears to be some problem developing here”. Defining who is in charge of a vehicle where those capabilities exist will be quite problematic. This comes back to my wanting the Government to give themselves the flexibility to adapt the regulations as circumstances change, our knowledge improves and systems move.

The picture the Government paint of a Bill every year is just not feasible: government does not work that way. This sort of backwater gets a Bill every four years if we are lucky. We absolutely have to reckon that this Bill has to last the rest of this Parliament and probably the first year or two of the next. There is not the space in a Government’s life for off-centre Bills on a regular basis. The Bill is underpowered for the mission it sets out to achieve.

[Baroness Sugg]

My Lords, as I mentioned in the debate on the first group of amendments, the scope of the Bill applies only to highly and fully automated vehicles; that is, vehicles for which, when driving themselves, there is no monitoring or controlling role required of the driver. I appreciate my noble friend’s efforts to clarify the language in the Bill in this series of amendments. I will try to help with the definitions, although, as the noble Lord, Lord Rees, said, these terms are highly subjective.

On Amendment 4, it is anticipated that the first automated vehicles to reach the UK market will be able to be used in automated mode only in specific circumstances or situations. These could include instances where vehicles have been geo-fenced, and are therefore able to operate only in specific, defined areas, or systems that would operate only on motorways and other high-speed roads, or indeed in the way my noble friend Lord Lucas described earlier. These vehicles may not be capable of driving safely in all situations, so we believe it is essential that the wording,

“in … some circumstances or situations”,

remains within the Bill so that such vehicles can get on the Secretary of State’s list and get insurance.

[Lord Maxton]

The Minister keeps talking about “vehicles” and not “cars”. Vehicles are already being used in agriculture. They do have to go on roads, however; for example, to go from one field to another. Is that part of the definition?

[Baroness Sugg]

I know that this issue came up in the noble Lord’s committee. It is something we are looking at. Again, we will probably equate it to the existing situation with agricultural machinery: only if it needs to be lawfully insured at the moment will it need to be lawfully insured as an automated vehicle.

On Amendment 5 and the proposal to remove “safely” and Amendment 34 to define “monitoring”, as my noble friend said, the Bill uses “safely” to distinguish between vehicles with high or full automation, which are covered by the Bill, and conditionally automated vehicles, which are not. Conditionally automated vehicles need the human user to monitor their driving at all times. Highly and fully automated vehicles do not need such monitoring in automated mode: they can operate safely without it.

That is why we think we need “safely” in the definition in Clause 1 that highly and fully automated vehicles are,

“capable, in at least some circumstances or situations, of safely driving themselves”.

The definition of “driving itself”, given in Clause 7, is,

“in a mode in which it is not being controlled, and does not need to be monitored, by an individual”.

So the Bill covers vehicles that have been designed to be able to drive themselves—safely, with no monitoring needed, in at least some situations. Without “safely”, we think that the Bill would cover—incorrectly—vehicles in which the driving tasks are shared conditionally. However, I have listened to the arguments made in this and earlier debates and will look at the definition in the Bill and see if there is anything we can to do clarify it further.

On Amendment 6, it is certainly our intention that only vehicles that are considered safe at the time at which the list is made or updated are included. I will consider the arguments made today and see whether we can make a clarification here.

On my noble friend’s Amendments 7, 31 and 32 regarding control, we think there are risks in using more specific terms at this stage, given that we cannot predict how the technology will evolve. I ask noble Lords to take account of this point throughout today’s debate. It is important to utilise broad language at this stage. We have used general terms to reflect the policy intent in establishing the compulsory insurance framework. As the scope of the Bill applies to vehicles for which, when driving themselves, there is no monitoring or controlling role required of the driver, we do not feel that we need to further define “control” at this stage.

On the subject of roads, my noble friend Lord Borwick raised an interesting point in Amendment 35 —he was backed up by the noble Lord, Lord Berkeley—regarding the definition of “road” in the context of Section 192 of the Road Traffic Act. I think we can clarify this further to make it explicit in the Bill. I will look at tabling an amendment on that ahead of Report.

I have attempted to clarify the definitions here, but following the points made in this and earlier debates, I will look at the definition in Clause 1 to ensure it is clear that only vehicles that can be lawfully used in self-driving mode will be included in the list.

In response to the point made by the noble Baroness, Lady Randerson, in the previous debate, I will follow up this session with a detailed letter, as well as a meeting ahead of Report to discuss the issues further. Given these reassurances, I hope that my noble friend feels able to withdraw his amendment.

--- Later in debate ---

[Lord Borwick]

My Lords, I have been surprised by the Bill and the discussions on it because it is fairly unusual to find circumstances where there is the kind of debate that will happen on the next set of amendments about “must” and “may” regarding what the Government can do. Normally the Government suggest that the wording should be that they “may” do something while Back-Benchers push for it to be that they “must” do something. Here we have entirely the reverse of that problem. Similarly, when my noble friend Lord Lucas proposes that the Government should have the right to regulate on safety standards—I have a similar amendment coming much later—normally it is a matter of the Government wanting to have the powers to regulate and the Back-Benchers suggesting that they should not. Here again we have the reverse of that standard, but this is a new industry and perhaps we have new ways of legislating for it.

The points that my noble friend Lord Lucas and the noble Baroness, Lady Worthington, make are entirely right: we need standards. However, I think so many things are happening with this that the power to make regulations should be wider than just in respect of standards. That is why I have tabled Amendment 30, which will be dealt with towards the end of our debate today. I support my noble friend’s amendment as far as it goes. I think my amendment is slightly better than his but we can deal with that problem later.

[Baroness Sugg]

My Lords, I fully appreciate that we will see fast-moving technological developments in this area in future. With that in mind, I understand the intent behind noble Lords’ amendments on safety criteria and standards. It is going to be critical to ensure that automated vehicles are safe for effective deployment on UK roads. As the noble and gallant Lord, Lord Craig, rightly points out, their safety will also need to be maintained throughout the vehicle’s lifespan, as is the case for conventional vehicles today.

There is a long-established process in place for setting vehicle standards, which we have touched on before. The UNECE’s World Forum for Harmonization of Vehicle Regulations is tasked with creating a uniform system of regulations for vehicle design in order to deliver high levels of vehicle safety and environmental protection and facilitate international trade. These UN regulations, of which there are over 140 in number, contain the provisions for vehicles, their systems, their parts, their equipment related to safety and environmental aspects. So they provide the legal framework, allowing member countries such as the UK to establish harmonised international-level UNECE regulatory instruments concerning motor vehicles and motor vehicle equipment. They include performance-oriented test requirements as well as the administrative procedures. The latter address the type approval of vehicle systems, parts and equipment, the conformity of production and the mutual recognition of the type approvals granted by member countries.

The standards by which automated vehicles will be approved safe for sale and use are still being discussed internationally at this UNECE working group, where the UK plays a leading role. We expect them to follow the way in which conventional vehicles have been judged safe to use. I will certainly look carefully at the words of the noble Lord, Lord Tunnicliffe, to help inform our approach in those negotiations. We work with bodies such as the International Organization of Motor Vehicle Manufacturers, which participates in these discussions in a consultative capacity. We think that this is likely to form the basis of the type approval process which automated vehicles, like conventional vehicles today, must pass to be sold for safe use on UK roads.

Based on international standards and our evolving domestic regulatory programme, we expect it to be very clear which vehicles, including their software, can safely operate. The vehicles approved as safe by type approval will then go on to the list, so that our domestic insurance framework is clear which vehicles need which insurance products. The Clause 1 list of automated vehicles will not be the mechanism by which automated vehicles are regulated in relation to safety and security. That will be governed by future laws and technical standards, which we expect to be developed with the appropriate level of scrutiny and consultation, just as current road traffic laws and vehicle standards are developed.

On the important point raised by the noble Lord, Lord Tunnicliffe, about consultation, these changes to domestic legislation, including road traffic laws and vehicle requirements, will generally undergo public consultation and have impact assessments carried out. They are subject to parliamentary scrutiny when amending legislation is laid in the House. Throughout the development of our policy in this area, we have consulted closely with industry. Given the understandable interest in this new area, we fully expect there to be full consultation when we see the regulations appear for automated vehicles. So I agree with the intention of the noble Lord, Lord Tunnicliffe, to consult on the standards that will be set for automated vehicles. That is something that we plan to do, but I am again afraid that I cannot agree that this Bill, which relates to insurance provision only, is the right place for it.

I fully expect that future regulations for automated vehicles will cover many of the points in Amendment 10, including environmental issues, but we think that legislating in any way further, in the absence of the more detailed knowledge of the ultimate international design standards, risks us regulating ineffectively, potentially creating barriers to the use of this technology in the UK and therefore impeding innovation.

As the new technologies reach the point of market readiness, we will be able to set and define the standards, both internationally at a UNECE level and, depending on the outcome of the international discussions, domestically as part of our ongoing regulatory programme. As I have said, we fully expect this to be subject to full consultation.

[Baroness Worthington]

I wanted to ask the Minister whether she thought there was value. I understand that there will be lots of ongoing discussion, but there may be value in taking some enabling powers now so that we can move forward quickly. This is quite a competition among many nations, and it would be a great shame if we were to lose this parliamentary opportunity to take some enabling powers now.

[Baroness Sugg]

I agree with the noble Baroness that this is a fast-moving industry, and we absolutely want to position ourselves at the front of it. As my noble friend pointed out, I am in an unusual situation of being offered powers to Government. This is a narrow Bill, which I acknowledged at the beginning. We have been trying to ask only for powers which we know how we will use in the future. We have an amendment from my noble friend coming up on that, and it has been interesting to hear people’s views. At the moment, the Bill is focused entirely on insurance, but I will be interested to hear views from everybody around the House ahead of Report.

In Amendment 11, the noble and gallant Lord, Lord Craig, is right to be concerned that vehicles must meet the appropriate safety standards, both before they are sold and to ensure their ongoing roadworthiness. They are important issues that will require attention from the Government, and we certainly expect safety throughout the vehicle’s life to form the basis of future regulation. We do not yet know, because of the technology, the timescale to expect for regular vehicle checks. As the standards have not yet been set, I am afraid that we are unable to introduce those detailed regulations at this time and in this Bill.

[Lord Craig of Radley]

On that point, the Minister says that the Government cannot introduce regulations at this time. Will it be primary legislation to do that, or does existing legislation give them the opportunity to produce regulations as and when required?

[Baroness Sugg]

Under the construction UNECE regulations, which are how we deal with conventional vehicles, we are able to introduce regulations, which is a potential future for automated vehicles. We have asked the Law Commission to do a far-reaching review on our regulatory framework for automated vehicles. That is designed to promote the safe development and use of automated vehicles, identify areas in the law that may be barriers to the use of automated vehicles, and propose potential solutions. One of those barriers was that we did not have an insurance framework, and those vehicles could not be insured. That is the purpose of the Bill. We are working with the Law Commission to understand where we need to make further primary or secondary legislation. As and when appropriate, the Government will come forward with legislative and regulatory proposals, and will absolutely consult on the detail.

I turn to the role of the insurer and my noble friend Lord Lucas’s Amendment 22. It is the policy intent of the Bill that it mirrors existing processes as closely as possible without making complex legislative changes to the existing framework. A vehicle is insured if there is in force, in relation to the use of the vehicle on a road or other public place in Great Britain, a policy of insurance that satisfies the conditions in Section 145 of the Road Traffic Act 1988. It is the contractual obligation of the insured person to provide accurate information to the insurer. Failure to do so may result in the policy being voided.

I understand that there is concern that we are proposing an insurance framework before we have agreed the safety standards, and before we are sure how we will regulate for those, but as I said, the Bill is designed to enable insurers to begin developing new insurance products, in response to a request from the insurance industry. We want those insurance products to be developed now so that it will encourage further investment and research in automated vehicles in the country—something I am sure noble Lords are in favour of.

I hope that these words have assured noble Lords that there will be comprehensive safety standards, which will be informed by consultation, to ensure that only automated vehicles that can be used safely will be placed on the list. Again, I am afraid, as the Bill is solely considering a list in relation to the insurance framework and not these safety standards at this stage, I hope the noble Lord feels able to withdraw his amendment.

[Lord Lucas]

My Lords, before the noble Lord deals with his amendment, may I say that I am sad that I was right that the Government are determined to keep the Bill within its current scope? They are missing considerable opportunities in regard to my noble friend’s description of what the Bill would do: enable the insurance industry to develop new products, and enable us in this aspect to be ahead of the game and part of the international conversation. She talks about the advantage of legislating now, but the Government will not legislate now in other areas where they could simply and where I think the House would be inclined to give them quite wide powers to get on in this area. I am disappointed that the Government are taking this action. If I find opportunities beyond today to do something about it, I look forward to taking them.

--- Later in debate ---

[Lord Berkeley]

My Lords, I entirely agree with the noble Lord, Lord Borwick, about “must” and “may”. It is interesting that the Government like to put “must” on its own. I am sure the Minister will have a view on that.

I have a short comment on Amendment 12, which is in this group. I support it. The Minister may say it is too early but, if you are going to have a written notice under proposed new subsection (2), surely the documentation, certificates or anything relating to not only the vehicle but the software, control system and everything else should be included.

[Baroness Sugg]

My Lords, I am sorry to disappoint my noble friend on further regulatory powers in the Bill. As I said, I would be interested to hear views from noble Lords from across the House on further regulatory powers later but, at this stage, we are just not ready to make further regulation. That is why we have not asked for the powers.

The purpose of the list in Clause 1 is to allow manufacturers, owners of vehicles and insurers to know if the extension of the compulsory motor insurance in this legislation applies to their vehicle. The aim is to provide certainty to the automotive and insurance industries, as well as clarity to the public. As I have said, the list itself is not a mechanism to approve which vehicles are safe to use. This will be determined by future regulation, most likely based on international standards. The list in Clause 1 is simply to inform the insurance industry which vehicles require automated vehicle insurance.

My noble friend Lord Borwick’s Amendment 9, which replaces “must” with “may”, would imply that preparing, updating or publishing this list might be at the Secretary of State’s discretion. We believe it is right that the Bill imposes a duty on the Secretary of State, who “must” ensure that the list, comprising any vehicle that may lawfully be used when driving itself on roads or other public places in Great Britain, is published and kept up to date. If the list is not updated, people may obtain the wrong type of insurance, leading to difficulties for victims in securing compensation quickly and easily. As I said, this aims to provide certainty.

In order for the Bill to deliver the insurance framework that it is intended to—this is after consultation with the insurance industry—it is important to maintain the list as a duty on the Secretary of State. Perhaps this is something we can discuss further before Report.

Amendment 12 concerns the duty of a manufacturer to notify the Secretary of State. I understand my noble friend’s intention but, at this stage, it is not appropriate to legislate in this regard. There are already existing processes in place when registering a vehicle or notifying changes regarding a status of the vehicle, and we are working with the DVLA on how to replicate these processes for automated vehicles. We have yet to complete that work, so we do not feel it is the right time to legislate in this regard. I hope that, given this explanation, my noble friend is able to withdraw his amendment.

[Lord Borwick]

My Lords, I beg leave to withdraw that amendment.

--- Later in debate ---

[Lord Borwick]

I should perhaps earlier have declared my interest as chairman of the advisory board for the Gateway autonomous vehicle in Greenwich project, which has done a lot of work on the subject that the noble Baroness, Lady Randerson, mentioned—the habit of pedestrians testing autonomous vehicles. They found that in time, that habit reduces, not because the relevant pedestrians are squashed by the autonomous vehicle but because they get bored with the test. They might try it once, as a teenager, but they do not bother to try it again: it is a boring process. Boring a teenager is not something we should use as the basis of a safety standard, but it is a powerful factor in this matter. I very much support the amendments in the names of the noble Baroness, Lady Randerson, and myself.

[Baroness Sugg]

My Lords, my noble friend’s Amendments 13, 14, 15, 16, 18 and 24 seek to clarify the definitions of “damage” and “accident”, terms which are already in common use in road traffic legislation and case law. It may help if I set out how we have intended the provisions in this Bill to work. They are intended to mirror the existing conventional vehicle compulsory third-party insurance framework, found in the Road Traffic Act 1988, for automated vehicles. However, the Bill’s read-across with the Road Traffic Act has to be adjusted at times to allow for the lack of a driver when an automated vehicle operates in automated mode, which means that the Bill makes use of the word “accident” as a way of introducing the word “damage”, which in turn is defined in the Bill in a way that mirrors the meaning of “damage” in the Road Traffic Act 1988. Again, as I said, the aim of the Bill is to provide consistency with conventional vehicles in the 1988 Act.

“Damage” is defined within Clause 2 as,

“death or personal injury, and any damage to property other than … the automated vehicle … goods carried for hire or reward in or on that vehicle or in or on any trailer (whether or not coupled) drawn by it, or … property in the custody, or under the control, of … the insured person … or … the person in charge of the automated vehicle at the time of the accident”.

As I highlighted earlier, the policy intent of the Bill is that it mirror existing processes as closely as possible without making complex legislative changes to the existing framework. I appreciate the challenge from my noble friend in testing the Bill’s wording, but we believe that the task of mirroring the existing processes in the 1988 Act is best done by the wording as it currently stands.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

Committee: 1st sitting (Hansard - continued): House of Lords
Wednesday 9th May 2018 Lords Chamber

[Lord Borwick]

My Lords, I think I rather agree with the noble Lord, Lord Berkeley, about Amendment 28, tabled by the noble Lord, Lord Tunnicliffe, being better than my Amendment 23. It is better because the point about manufacturers going bust had not occurred to me—so putting it into the passive is a much better way of doing it.

Amendment 25 seems to be approaching a sort of strict liability basis, with the automated vehicle’s insurer responsible even if that vehicle was not responsible in any way for the accident. I refer him to the accident that was reported a couple of days ago with a Waymo vehicle in which another car went into it. It was absolutely not the fault of the automated vehicle; it was hit by a manually controlled car. In that case it would seem to be particularly unfair that the insurer of the automated car had to pay out and then recover from somebody else. That was an entirely innocent case where the automated vehicle was totally not responsible for the accident.

A lot of this will come out in due course as we learn more. It is a problem at this stage that we have to legislate to get the insurance right in an industry that is developing.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, the provisions in the Bill will ensure that victims of an accident caused by an automated vehicle that is driving itself will be covered by the compulsory insurance in place on the vehicle. It is the intent that the victims of such accidents will get quick and appropriate compensation.

In Amendments 23 and 28 my noble friend Lord Borwick and the noble Lord, Lord Tunnicliffe, raise the important issue of safety-critical updates to vehicles. It is not the function of the Bill to provide software standards or requirements for automated vehicles. The Bill provides an insurance framework so that victims have quick access to compensation in line with existing practices, and is just one element of a wider regulatory programme to ensure that people and businesses in this country can benefit from the safe introduction of automated vehicles.

The purpose of Clause 4 is to deal with the relationship between the insurer and the insured person in certain circumstances. This addresses the point of the noble Baroness, Lady Randerson. It exists specifically to deal with the insurer’s freedom to exclude liability in the small number of potential situations where the owner needs to act to install a safety-critical software update and knowingly chooses not to install it, or the owner makes unauthorised software alterations, thus putting themselves and others in harm’s way. The clause is designed specifically to deal with that. It mirrors the situation for the compulsory insurance of conventional vehicles, where a driver would not be protected if they drove a vehicle that they knew was unsafe or not roadworthy.

[Lord Tunnicliffe]

Perhaps the Minister could help me a little here. If a vehicle is not insured today, and a pedestrian is harmed, say, who had no responsibility at all, my understanding is that they will get an instant payout from some sort of collective fund. Is that correct? If it is, is it the intention of the Bill to have a similar situation, including possibly defective software?

[Baroness Sugg]

I am pleased that the noble Lord has allowed me to address this point, because it goes to defective software. As the noble Lord said, it would be a legal requirement that all automated vehicles must be insured, but there will be instances when vehicles are driven illegally, as we see today. I will take this opportunity to clarify that the Motor Insurers’ Bureau will continue to play the same role as it does now with uninsured and untraced drivers, so that victims involved in collisions with uninsured automated vehicles will have quick and fair access to compensation, in line with conventional insurance practice. This arrangement is not currently covered in legislation nor included in this legislation; it is covered through an agreement between the Secretary of State and the Motor Insurers’ Bureau. We are discussing what changes are needed to that agreement to sufficiently and appropriately incorporate automated vehicles within the existing process.

On software updates, Clause 4 anticipates that vehicle manufacturers will want to ensure that their vehicle systems are as safe as possible for consumers. As my noble friend Lord Borwick said, we expect that most updates will be done automatically and will be the responsibility of manufacturers. This is something that manufacturers acknowledge. Vehicle safety standards, which include software, as I have mentioned before, are still being discussed at the UNECE level. The requirements for system updates form part of the international discussions on the standards that will ultimately form the basis of the type-approval process that the vehicles must pass before they are sold in the UK.

There will be robust standards in place before these vehicles arrive to market, which will include the updating of safety-critical software. I can reassure noble Lords that vehicles will have to meet these standards before they are made available on the market. I fully appreciate the noble Lords’ intention to ensure that automated vehicles’ software is up to date, so that they are functioning safely—but, as with our previous debate on standards, we do not think it is right to act unilaterally at this time.

All noble Lords, including myself, are in the same place on this. We expect that vehicles will not be deemed safe to use, and therefore will not be placed on the list and covered by insurance, unless the safety-critical software is in place. It is a complex issue; we still do not know exactly how the software is going to work. We see some good examples from Tesla and Apple, but this is part of extensive conversations at an international level, with manufacturers and other countries, to understand how best to deal with this.

Amendment 25, tabled by the noble Lord, Lord Tunnicliffe, requires the insurer to pay out first and then recover from the liable party. I hope that I can say this in plain English. Subsections (3) and (4) of Clause 4 already work with Clause 2, where the insurer has a first-instance liability to pay the injured party. I believe that Clause 2 is clear on that, and where the liabilities of insurers are when the accident is caused by an automated vehicle. I think that the current wording fulfils the intention behind the noble Lord’s amendment.

--- Later in debate ---

[Lord Tunnicliffe]

My Lords, we all agree that in the future automated vehicles have the potential to improve personal transport arrangements as well as air quality, which is crucial given the dire state of the environment and its impact on health. Solving questions of how automated vehicles can be insured is essential and we welcome the fact that the Government are setting out how to do that. However, it is important to assess how measures work in practice, not only in legislation. It is particularly important that the Government should ensure that regulations are working as intended and should monitor unexpected impacts, which are always there, before attitudes and practices become entrenched and before automated vehicles become common on our roads.

Although the list in the amendment is not exhaustive, given the focus of Part 1 of the Bill it makes sense for a report to consider the impact that measures have on the insurance industry, on the cost of premiums for policyholders, on the uptake of automated vehicles and on disagreements between insurers and manufacturers on liability. This will be a fast-moving area and—who knows?—we may have to revisit areas of this Bill in the future as advances in technology take place and the advances impact on how these vehicles are insured.

It is important that Parliament is kept informed of the effectiveness and impact of the legislation to make sure that we keep it up to date as new technologies in this area are developed. I beg to move.

[Baroness Sugg]

My Lords, the Government are taking a step-by-step approach to our regulatory programme in relation to automated vehicles. Where the evidence base exists for regulatory change, we will act so that the UK public and businesses can benefit from innovative new vehicle technologies as soon as they arrive to market. As we noted when we initially consulted with the public and industry in 2016, each of these steps, taken through either primary legislation, secondary legislation or guidance, will be subject to a process of scrutiny and ongoing review.

On the automated vehicle insurance measures, as part of this regulatory programme we will continue to engage with the DVLA and other motoring agencies, the insurance industry and other relevant stakeholders to make sure that the system works effectively as the new insurance framework is implemented, and that we are still meeting our intended policy objectives to provide a compulsory insurance framework for automated vehicles.

As noble Lords will be aware, we have produced a detailed impact assessment looking at the potential direct economic effect on the insurance industry from introducing these measures. As my noble friend has just explained, the Centre for Connected and Autonomous Vehicles has asked the Law Commission to undertake a far-reaching review of the UK’s legal framework for automated vehicles. This may consider a wide variety of areas of law, including the liability and the insurance provisions set out in the Bill.

Unlike with many other amendments we have discussed today, I will not be arguing that the Bill is the wrong place for this amendment. However, it asks for a report by September 2019, which would be too early to consider whether the scheme is effective. It is not anticipated that there will be many—or even any—vehicles to which the insurance provisions apply. However, I understand and share the noble Lord’s intention to ensure that the system that is in place is working effectively, and ahead of Report I will consider whether there is anything further we can do in this area. With that in mind, I hope that the noble Lord will feel able to withdraw his amendment at this stage.

[Lord Tunnicliffe]

My Lords, I thank the Minister for her response. There is a wider point, which perhaps I should have made before—though I think she is erring towards agreeing with me—which is that it seems possible that the first fully automated vehicles could be ferrying children to school in, say, five, 10 or 15 years’ time, without this issue coming back to this House at all, by virtue of the wide powers that many of the road traffic and other Acts have to do things by order, for example. Therefore I hope that we will be able to find some sort of reporting compromise that ensures that this House and, ideally, Parliament in general are kept informed of developments in this exciting and innovative area. I beg leave to withdraw my amendment.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Thursday 17th May 2018 Lords Chamber

[Lord Tunnicliffe (Lab)]

My Lords, I did go to that breakfast, so I have heard the hydrogen manifesto, as it were. I also attended a dinner last night arranged by ChargePoint and witnessed my first outbreak of range anxiety among electric car owners, who explained at some length and some volume that 120 miles with the lights on meant about 50 miles. The battery electric formula has still a long way to go. There are many areas where hydrogen might be used, the classic example being buses in London. Hydrogen needs greater emphasis in the Bill. I hope that the Minister will be able to bring forward amendments to produce a little more balance in the Bill so that it does not so blatantly presume a battery solution.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, as I stated at Second Reading, it is this Government’s ambition that every car and van will be zero-emission by 2050. The Government are using a range of tools, including tax incentives and grant schemes alongside regulation and legislation. I acknowledge the point made by the noble Baroness, Lady Worthington, on the narrow scope of the Bill. The Bill focuses specifically on areas that we have identified as needing the regulatory tools available to intervene in the market so that we might ensure that the UK’s charging infrastructure is easy to use for consumers and that charging is “smart” to reduce impacts to the grid. I agree that we need a much wider strategy. That is exactly what we are working on—although, I am afraid, not in this Bill.

The Government’s upcoming strategy will set out their approach to the transition to zero-emission road transport and drive down emissions from conventional vehicles during the transition. It will include hydrogen vehicles. I apologise that the strategy has not yet been published. We are working hard with other departments and the industry to ensure that the strategy is as strong and ambitious as possible.

Our commitment to zero-emission vehicles is technology neutral. This means that we want to drive forward the development and deployment of any technologies that can deliver a zero-emissions future. At the moment, that capability is limited to battery electric and hydrogen fuel cell electric vehicles, although we do not want to rule out other innovations.

The level of support provided to these technologies is dictated by the maturity of their respective markets. There are very few hydrogen fuel cell vehicles currently being manufactured globally—I believe that some 6,500 such vehicles were sold last year.

As noble Lords have said, refuelling infrastructure availability is a key potential barrier to rollout of hydrogen fuel cell electric vehicles, which is why they are included in the Bill. Despite that, the UK has secured the position as one of the world-leading, but still embryonic, markets. We believe that hydrogen fuel cell electric vehicles are an important technology, alongside battery electric vehicles, for decarbonising road transport.

This is why, since 2014, we have provided £5 million to fund 12 new hydrogen refuelling stations and £2 million for public and private sector fleets to become early adopters of the vehicles—as the noble Lord, Lord Campbell-Savours, said, commercial vehicles can contribute disproportionately highly to pollution, so that is something we are working on. It is also why we announced an additional £23 million in March last year to leverage a ramp-up in investments from industry in refuelling infrastructure and vehicle deployment out to 2020.

It has always been the intent of the Bill to include both hydrogen fuel cell and battery electric vehicles. That is explained in Clause 8(1)(c), which makes it clear that hydrogen refuelling points are included in the definition of “public charging point”, but I take the point made by the noble Baroness, Lady Randerson, on charging versus refuelling.

The powers relating to infrastructure provision in motorway service areas and large fuel retailers in Clauses 9, 10 and 11 therefore cover the provision of hydrogen refuelling points. As we have said, the infrastructure around hydrogen will be incredibly important. Having points at those key positions is one thing we will act on. Draft regulations will include hydrogen refuelling points as well as electric battery charging points.

On Amendment 39 and the definitions of “electric vehicle” and “zero-emission vehicle”, as we have said, this part of the Bill is focused on charging or refuelling infrastructure for vehicles. Such infrastructure is defined by reference to its capacity to recharge either battery or hydrogen-propelled vehicles. We think that the Bill includes the relevant definitions necessary in relation to refuelling points. In addition, there is a definition of “electric vehicle” in legislation already, as the definition contained in the Alternative Fuels Infrastructure Regulations made last year mirrors the definition proposed by the noble Baroness, Lady Worthington. Given that the definitions in the Bill already work as intended, we do not think there is a need to duplicate the definition of “electric vehicle” within the Bill.

--- Later in debate ---

[Lord Tunnicliffe]

My Lords, I do not want to be too repetitive, but I have been persuaded by the speakers in the debate so far—and, of course, at last night’s notorious dinner. Again, I hope that the Minister will be able not only to give us warm words but to see whether she can make some progress in tabling amendments that at least partly support the general direction of the debate.

[Baroness Sugg]

My Lords, I am very sorry that my noble friend and I missed that wonderful dinner, to which I think all noble Lords were invited last night; our invitations must have been lost in the post. The Government’s aim is to develop our infrastructure so that current and future drivers of electric vehicles can locate charging infrastructure that is affordable, efficient, reliable and easily accessible. The amendments, understandably, seek to improve availability and reliability.

Most government-funded charge points started out as being free to access, but payments have been gradually introduced over the years. Taking a payment in exchange for charging is a crucial step in the development of a long-term sustainable business model for charge point operators that will in turn lead to greater choice and improved future reliability of the network. Of course I agree that reliability is a critical issue, but we think that the market is developing to meet consumer expectations about charge point reliability. We welcome the fact that a number of charge point owners currently report on their level of reliability. The noble Baroness, Lady Randerson, mentioned Zap-Map.com, which incorporates a real-time feed that drivers can use to report on their recent charging experiences and report out-of-action charge points. As this market continues to develop, it is clear that operators will want their charge points to be functioning and accessible to attract customers, and indeed to receive payment.

Some operators are already providing information voluntarily, and as the market develops all may do so. However, should the Government need to intervene in this area, powers can be introduced under Clause 11. As currently proposed, this could require charge point operators to make reliability information available in open-source formats, which could be used to improve the consumer experience. Clause 11 also specifically mentions,

“whether the point is in working order”,

and making this information available will help to incentivise charge point operators to maintain working charge points and to ensure that they can be held to account by customers. I agree with the noble Baroness that for the infrastructure to work, the charge points have to work, and people need to feel confident that they will be able to charge their car—so I agree with the intent behind the amendments.

The noble Baroness also proposes an amendment on contactless card payments. Again, we absolutely recognise the importance of having easily available payment options to encourage the uptake of these vehicles. We have seen progress in this area. Since 2017 regulations have been in place for new charge points to ensure that they are available without the need for any form of membership. This applies to all new charge points from last November, and all existing charge points will need to meet that requirement by November this year. In the policy scoping notes contactless payment is one of a number of potential access or payment solutions, but we are not sure about mandating for this in primary legislation, which could risk forcing charge point operators to overhaul their entire network for a specific access method that may not be the preferred solution by drivers or industry, and may well be succeeded by another form of access. We want to consult on that. In advance of introducing any secondary legislation we will consult drivers and operators before proposing a minimum defined access method. If the preferred option is through contactless payment—which, I acknowledge, it may well be, so that people can easily pay for charging—that would be included in the regulations.

Amendment 50, proposed by the noble Lord, Lord Berkeley, which was mentioned by the noble Lord, Lord Campbell-Savours, rightly seeks to ensure that the Secretary of State has regard to innovation, customer choice and competition when bringing forward regulations under this clause. Those three things should always be at the heart of the Government’s policy-making, and will underpin any regulations brought forward under this, and indeed any other, clause.

As I have said, I agree with the intent behind all the amendments, and I will consider them further.

[Lord Campbell-Savours]

Before the Minister sits down, Clause 11 refers only to the provision of information. What we want is action. If no action is taken as a result of the provision of information, it is a waste of space. Why cannot some of the amendments be taken away by the Minister to her departmental officials before Report—at least those which are in no way affected by technological development—to see whether it might be possible to accept one or two of them? That would immediately affect people’s ability to secure the service that they expect when they call at one of these charge points.

[Baroness Worthington]

I reiterate that we must at least acknowledge that it is not good enough to have nearly one in 10 of these charge points in the vicinity of this House non-operational. Surely the Government should be doing more to investigate why that is the case and to ensure that regulatory powers are introduced to insist that they are maintained. It is just not good enough. We would not expect that to be allowed in any other form of public infrastructure. We are not asking for it to be in primary legislation, we are asking simply for power to be taken to make regulations to require that they be maintained. Given the Government’s apparent love of these enabling powers, I cannot see why they would not take one to require that the charge points are maintained. They are expensive and people rely on them.

[Baroness Sugg]

Clause 11 refers to information, as the noble Lord says, and covers reliability. I take the point that it is only information. We think that as people will be paying for access, it will be in the charge point operators’ interest to ensure that the charge points are operational. I absolutely agree that we need to ensure that charge points are reliable and are fixed when they are broken.

[Lord Redesdale (LD)]

I apologise for intervening and I am sorry that I was not at Second Reading. I had this problem yesterday: turning up with a vehicle but someone else with a non-electric vehicle had parked in the space. Will the Government consider fines or enabling powers to ensure that when they work—sometimes they do not—someone else does not park in the space?

[Baroness Sugg]

The noble Lord raises a common issue. We have seen development in this area with overstay charges, and we are investigating them. As I was about to say, I understand the correct desire for us to consider the amendments again, and I will go back to do so. We want to ensure that the Bill enables improvement in our infrastructure for electric vehicles.

[Baroness Randerson]

My Lords, the Minister has given us a lot of information. I will of course read the record carefully and probably seek to rearrange my amendment in a different format for next time if she does not feel able to address these issues. I urge her to look at this again.

My noble friend referred to an issue which I believe is addressed in Amendment 48 in the name of the noble Lord, Lord Lucas. This is something the French have dealt with by a pricing regime which means that if you lurk around on a charging point ages after your car is recharged, it becomes a very expensive way to find a parking space. It is perfectly easily solved.

The issues we are addressing are not ones that we have dreamed up from nowhere. It is well known that in London, the pressure on the rollout of charging points for the introduction of electric cars meant that the whole process wobbled and stalled at one point. All the charging points were put in but they were not maintained, so the system fell into disrepute. A new contractor and a new contract appear to have addressed quite a lot of that problem, but the Government need to take this seriously. Otherwise, public confidence will be undermined and electric cars will not take up the position that diesel cars have had in the past.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

Committee: 2nd sitting (Hansard - continued): House of Lords
Thursday 17th May 2018 Lords Chamber

[Lord Tunnicliffe]

My Lords, as a generality I support the thrust of these amendments, but I worry about whether this is the right place for them. Clearly, there is a case for some overall strategic planning, and there is a need for it to happen everywhere. There is also a possibility that that may require some powers to be provided for TfL. But we are trespassing into dangerous waters, because we are getting into sovereignty—and there is no more delicate area in a sovereignty debate than between an area or regional authority and constituent members. I worry whether this Bill is the place to make such a profound move.

I am genuinely open-minded about whether we should press in this direction, but I join the noble Lord, Lord Tope, in urging the department to do all that it can between now and Report to get a negotiated settlement between the boroughs and TfL that, if necessary, we can put into the Bill.

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, this is a wide-ranging group of amendments and I shall aim to address all the points raised, so I am afraid that I shall have quite a bit to say.

On permitted development rights and expansion, as the noble Baroness noted, it is already allowed through town and country planning, which allows permitted development rights for one electric vehicle charging point per parking space, public or private. The noble Baroness, Lady Worthington, mentioned specific restrictions on that, which were introduced into the permitted development right to protect the environmental amenity of an area—hence the planning permission is needed. However, there is no height limit for charge points installed by or on behalf of local authorities, which are able to consider the impact of a charge point at a particular location, as well as on the safety of road users and pedestrians, and any other local considerations. That is what we want to bear in mind.

In general, the intention of these amendments is an important consideration. Given the change in technologies, it is important that the Government ensure the existing flexibilities and terms of permitted development rights and that they remain fit for purpose—and certainly deregulate where we should. So I shall take the issue away and consider it further with the Ministry of Housing, Communities and Local Government before Report.

On permitted development rights in London and TfL, my noble friend Lord Borwick raised the proposal to give TfL or the Mayor of London permitted development rights to install rapid charge points. Again, we agree with the intention behind aspects of this amendment; the installation of charging provision in London is crucial to help to ensure that air quality and climate change targets are met and, despite some excellent progress by local boroughs, many more charge points will be needed. While we recognise TfL’s frustration at not being able to make quick improvements to a road network that it may be responsible for, it is right and proper that it works collaboratively with local boroughs to consider the local democratic process.

[Lord Campbell-Savours]

Do we know how many of these rapid charge points boroughs have actually been introduced up to now?

[Baroness Sugg]

Since January 2017, the number is 644 rapid charge points, and they expect to quadruple that and install over 2,600. I acknowledge, however, that we need to up our game on the installation of these charge points.

[Baroness Worthington]

The table that has been circulated indicates that, of 103 rapid charge points in London, four have been installed on borough land.

[Lord Campbell-Savours]

It that not in fact our case? They are doing nothing.

[Baroness Sugg]

My Lords, I think we all agree that insufficient progress has been seen; we absolutely need to take action on that, but we need to consider the local democratic process. The noble Lord, Lord Tope, spelled out very clearly the opinion of London Councils on this, and we want to see TfL and London Councils working in partnership to deliver what we need, ideally without the need for legislative intervention. We are working with TfL, MHCLG and GLA colleagues on this collaborative approach. A new governance framework has been set up, and there is a cross-party subgroup tasked with addressing these specific issues. The mayor is also creating a new electric vehicle infrastructure task force for London, in which the Government have been invited to participate as a member.

These non-legislative solutions have recently been introduced and are designed to ensure that this collaboration happens. I appreciate, however, that my noble friend’s amendment has a time clause in it, which is an interesting consideration. As the noble Lord, Lord Tunnicliffe, says, these are slightly dangerous waters, but we will certainly go away ahead of Report to see if there is more we can do to reach an agreement, or to broker a deal, between the local councils and TfL on this important issue. As I say, I think we have good bodies in place now to work on this, but it will require them to work together. We will come back to this after we have taken it further with them. I thank my noble friend for his invitation; it sounds a lovely idea. Perhaps we could do that after we get this Bill through to celebrate.

My noble friend and others raised the issue of rapid chargers on the Parliamentary Estate. As I mentioned at Second Reading, the authorities are currently carrying out a project to fit the underground car park in the Commons with 80 charge points, although, at the moment, they are not planned for our own Lords car park. Though I can reassure noble Lords that I am pushing on this issue and—hot off the press—I hear that the House authorities are still making a decision on whether to take forward the charge points. They are working with the planning and design authority that is installing the charge points in the House of Commons. I hope to come back with some positive progress, along with a timetable, on Report. If we do not see that positive progress, I will be meeting with the Parliamentary Estate authorities to understand why.

On the removal of charge points, the noble Baroness, Lady Randerson, raised an interesting proposal. On local highways, the authorities obviously have the ability to require the installation of charge points or prohibit their removal. For other public locations, it is an interesting point. I understand the issue she raises: after installation, we do not want to see them rapidly uninstalled. This consideration is best left to the market and the host sites that have installed the infrastructure. In the same way that a supermarket, for example, should not need planning permission to install a charge point, it might be tricky if it then needs planning permission to take it out again. I also have some concerns that it could have an unintended consequence for businesses or host sites, which may be put off installing infrastructure if they would be unable to remove it in the future. But I understand the point that the noble Baroness makes, especially when grants are involved, so I will take that away and consider it further.

I turn to wayleaves and charging infrastructure rights. Wayleaves are sometimes required for rapid charge point installations that require a new connection to the grid or a grid upgrade, where cables need to be laid across third-party land. Currently, the wayleave agreement is voluntary for the third party who owns the land and there is no obligation to accept the wayleave. In cases where an agreement for a wayleave cannot be reached, the Electricity Act 1989 provides the installer with statutory powers on which it can call if no alternative solution, such as changing the cable route, can be found, so a statutory application can be lodged to the BEIS Secretary of State to award the installer a necessary wayleave. These amendments raise an interesting point, which we have not consulted on yet. We have concerns that the amendments as drafted do not allow for the private rights of the owner of any third-party land to be taken into account, or to allow for any potential environmental effects to be considered. Because this involves private land access rights, we think that we need to seek more evidence and consult a wide range of stakeholders. However, I will take the issue away and discuss it further with ministerial colleagues in advance of Report.

On housing issues and the future-proofing of new homes and developments, the noble Baronesses, Lady Randerson and Lady Worthington, are right to highlight the importance of ensuring that new developments include provision for the necessary charging infrastructure. I am pleased that the Government’s National Planning Policy Framework that has recently been consulted on considers the same policy. When developing local plans, it sets out that local authorities must fully consider the inclusion of charge point infrastructure in new developments. The proposed NPPF envisages that applications for developments should be designed to enable charging of plug-in and other ultra low emission vehicles in safe, accessible and convenient locations. It also sets out that, when setting local parking standards for residential and non-residential development, policies should take into account the need to ensure an adequate provision of spaces for charging plug-in and other ultra low emission vehicles. We think that the NPPF is the right place for such changes to be introduced, so that local considerations can be taken into account by local authorities, and therefore we do not think that we should include such provision in the Bill. The noble Lord, Lord Campbell-Savours, raised an interesting point about smart meters, which I shall take back and consider.

The noble Baroness, Lady Worthington, suggested the introduction of regulation to ensure that leaseholders are not denied the ability to install charging infrastructure. Of course, where agreement can be reached between leaseholders and the landlord, the charger will be installed, but there may well be scenarios where one or the other will not agree for whatever reason—as the noble Lord, Lord Campbell-Savours, highlighted—such as on who owns the charger, who is responsible for its maintenance and the cost of the electricity where a communal supply is involved. The amendment raises an interesting point, but we need to ensure that, while leaseholders are not denied the ability to install a charge point, we consider those other issues fully, such as the rights of freeholders and landlords.

[Baroness Worthington]

In the spirt of this Bill being entirely about enabling powers, would it not be sensible for the Government to consider taking an enabling power that can then be used if necessary, given that we are really at the start of rollout, which must rapidly increase if we are to hit our targets? It seems highly likely that we already have evidence of leaseholder-lessee disagreements holding us back—I could go out and gather it all for you. We are simply talking about taking a power to enable the Government to regulate. Otherwise, we will be back here in a year’s time having to go back over this ground again. Surely this is an opportunity to use the Bill to try to future-proof the situation.

[Baroness Sugg]

The noble Baroness makes a fair point. The Ministry of Housing, Communities and Local Government is doing a review of the relationship between leaseholders and freeholders, so I shall ask whether that might be an appropriate place to consider this issue. I have heard what the noble Baroness said, and I will take that back.

[Lord Campbell-Savours]

Given that such a review is going on, could the Minister drop us a note to tell us whether this suggestion will be considered?

[Baroness Sugg]

I certainly will. I will need to go back and discuss whether we can include this suggestion. I am not sure that we will go as far as the noble Baroness would like us to on that, but I will certainly get a conclusion on that and come back to noble Lords.

Finally, on the amendment that would ensure the provision of ducting and precabling infrastructure for new residential and non-residential buildings, in the industrial strategy, published last November, we committed to update building regulations to mandate that all new residential developments must contain the enabling cabling for charge points in homes. That will be an important step in future-proofing new homes and avoiding more costly retrofitting. For non-residential buildings, the NPPF will ensure that local authorities consider the need for adequate charging provision in developing their local plans. Before Report we will consider whether that is sufficient or whether we can go further.

Given these reassurances, I hope that the noble Baroness feels able to withdraw her amendment.

[Baroness Worthington]

Before the noble Baroness responds, I want to check that I am clear about that last point about the NPPF. With residential buildings, the expectation is that there might be a shift. However, why would there be a difference as regards leaving it with local authorities for non-residential buildings?

[Baroness Sugg]

It is purely because in the NPPF we have already committed to the residential side of things and have made that clear in the industrial strategy, while we have not yet gone so far on the non-residential side of things, which I will go back and have a look at. As I said, the consultation on the NPPF recently closed, so we are doing this work at the same time as MHCLG is considering its response to that consultation. I believe it is due to publish that in the summer, but obviously we will have Report before that, so I will take that back.

[Baroness Randerson]

I thank the Minister for her response. Once again, it is a very detailed issue, and I will read the record carefully.

I will respond on one point. The Minister said that it was not reasonable to complain if a parking space with a recharging point were taken out when it had never had to be put in in the first place—whoever did so did it willingly. That is what I understood her to say. My vision of how this would work is rather akin to the issue of parking spaces. There are planning permissions in certain areas where maybe for a certain size of house you need one parking space. If you choose to put in five, that is up to you; it is not illegal—you can do it. If you then want to take out those extra four spaces, no one can complain, but if you want to take out the fifth, they can. It is an issue of dealing with your minimums and ensuring, once again, that this is always at the top of consideration.

To be honest, I was not frightfully impressed by the concept that local authorities “need to consider” something; they need to address it, not just consider it. I listened with interest to the discussion about the mayor’s plans versus the local authorities in London. There needs to be a solution here which is not heavy-handed in taking away local initiative but which ensures that those local initiatives are empowered and encouraged and run rather more smoothly than they have done up to now. I understand the point that there has not been enough action up to now. I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Tunnicliffe]

My Lords, our Amendment 104 is in this group. This group is about reporting, and different ways been suggested. I hope that when she responds after my speech the Minister will offer to bring them together in the best possible mix and agree to a reporting procedure.

The proposed new clause would require the Government to lay a report before Parliament each year to consider how the regulations are working, and, specifically, the impact they are having on charge point operators, fuel retailers, the National Grid and the overall uptake of electric vehicles. The Government are intending the Bill to enable and encourage the uptake of electric vehicles, and they are right to do so. It would therefore make sense for them to review regularly whether it is actually happening and whether things need to be changed down the line. Involving Parliament in this issue would not only be beneficial for the Government but would enable them to regularly reassess their work. I am sure that the Minister would be saying that to us if our seating arrangements were reversed. We must keep the matter constantly under review and be prepared to revisit it if the circumstances require.

[Baroness Sugg]

My Lords, I very much agree that it is important that the Government take a strategic approach to encouraging and supporting the uptake of electric vehicles and the infrastructure that they rely on, that we monitor our progress against our air quality and carbon targets and that we review the effectiveness of any regulations brought forward under this Bill. I know that there is frustration about the narrow scope of the Bill, but I am afraid that it is just about electric vehicle infrastructure. It is not the extent of the Government’s work in this area.

In 2013, the Government published a strategy entitled Driving the Future Today, which set out the path towards achieving our zero-emission vehicle aims. Of course, much has changed since then—10 times as many ultra-low emission vehicles were registered in the UK last year as in 2013. While the aims of that strategy remain relevant, we are rightly considering how our approach needs to change in light of developments in the automotive sector and beyond.

As noble Lords are already aware, the Government will shortly publish a new strategy for promoting the uptake, manufacture and use of zero-emission vehicles, which will set out the Government’s vision and support for the provision of charging infrastructure for both battery electric and hydrogen cell electric vehicles to help facilitate this transition.

The strategy will go wider than just zero-emission vehicles. We recognise that it is also important to drive down emissions from the conventional vehicles that currently dominate our roads if we are to meet our ambitious climate change and air quality commitments. That includes considering air quality and carbon impacts in parallel and setting out the Government’s view on the role of different fuels in the coming decades.

With regard to Amendment 55, moved by the noble Baroness, Lady Randerson, to review the effectiveness and uptake of the Government’s incentive schemes, the department already keeps under review its existing schemes supporting the rollout of infrastructure and will take the necessary steps to encourage the installation of charge points where they are needed. Further steps will be identified on that in the forthcoming strategy.

I thank the noble Baroness for her suggestions in Amendment 70. We are also looking at the potential of lamp posts. She is quite right to say that not all of us have driveways or garages and so we need to make sure that we get on-street parking right, too. We have an on-street residential charging scheme and we are funding several local authorities to help them to install lamp-post charge points—450 this year. That is something that we are looking to develop.

On the important point of reporting against our air quality and carbon targets, which noble Lords have addressed in Amendments 98 and 99, there are already legal obligations to report and make public data on ambient air quality and emissions of a range of damaging air quality pollutants. In some cases, these obligations implement international level commitments. Of course, the national air quality plan and the clean growth strategy also set out how the Government plan to meet the UK’s air quality and climate change obligations. In addition, we are also already required to report to Parliament on progress against our obligations under the Climate Change Act 2008, of which of course the noble Baroness, Lady Worthington, was a lead author. Our ambitions to achieve a greater uptake of zero-emission vehicles is central to delivering the transport sector’s contribution to those obligations and will therefore form part of the reporting requirement.

As I have explained, the introduction of regulations will depend on the precise circumstances at the relevant time, so we are concerned that we may not be in a position to report on the impact of these regulations within the 12-month reporting period set out. The policy scoping notes set out the approximate timings for when we expect the regulations to be brought forward. I will probably follow that up in writing rather than go through the different clauses in detail now because the question of when we envisage the regulations coming in has been raised a number of times in today’s debate.

Our wider strategy for electric vehicles as well as the infrastructure to which the Bill specifically relates will be published shortly. I have mentioned the existing requirements to report against our air quality and carbon targets. We want to ensure that a requirement for reporting on this quickly moving area of technology is not disproportionate and unnecessary, but following the debate today, I will reflect on the points made ahead of Report and consider an amendment on this point. Given that assurance, I hope that the noble Baroness will feel able to withdraw her amendment.

[Baroness Randerson]

I thank the noble Baroness for her response and I am certainly happy to withdraw the amendment.

--- Later in debate ---

[Baroness Sugg]

My Lords, the noble Lord, Lord Campbell-Savours, spoke about space at major fuel retailers. The noble Baroness, Lady Randerson, is right that they often have hundreds of car parking spaces, and that is where we envisage that the charging will happen. The department has no plans to look at purchasing land around such locations. We think that the regulations would need to exclude locations where it is not possible or sensible to provide electric vehicle infrastructure, as we have set out in the policy scoping notes. Of course, space is an important consideration, which is partly why we have identified major fuel retailers as the right place to start.

[Lord Campbell-Savours]

I am sorry to go back to car parks, but when I travel on motorways I often find the car parks are full. They cannot be used for both parking and for people to put their vehicles on them to charge. In certain conditions, there may simply be insufficient spaces on the motorways because the car parks are heavily used.

[Lord Campbell-Savours]

Equally, I was asking at the dinner last night about the cost of these chargers. Rapid chargers are £40,000 a piece; we are talking a lot of money. It may be that part of the provision will not be the rapid chargers.

[Baroness Sugg]

My Lords, I think that space will be limited at some of these destinations, but they have been identified as the ideal place to start putting in this infrastructure, which is what we are doing. This is the start of the process. We will look at how effective it is, how many charge points are put in and whether they are rapid charge points.

On whether it may be appropriate to require the installation of charging facilities in future at other locations such as supermarkets, railway stations and private and public parking facilities, the vast majority of electric vehicle drivers choose to charge their cars at home at night, but we need appropriate and adequate provision of public charging if we are to see as many electric vehicles as we want in the coming years. However, we do not believe that regulating for provision will always be the right approach. It is a powerful tool, but other levers can be used. We have many grant schemes and policy measures to support the installation of charge points at a range of locations, including many of those listed in the amendment. For example, we have already committed to providing greater emphasis on electric charging at rail stations in our franchising process. Through a train station scheme, Plugged-in Places and the public sector estate scheme, more than 7,000 charge points have been funded in a wide range of locations. Planning policy—in particular, the NPPF— is proving to be an important tool in leveraging infrastructure, future-proofing new developments and ensuring that local authorities consider charge points in their plans.

Proposed changes to the NPPF would require that when local parking standards are set policies should always consider the need for adequate provision for charging EVs. The London Plan is a good example of where there has been a big impact and where the NPPF has encouraged local authorities to take an ambitious approach. In the London Plan, the GLA mandates that developments in all parts of London ensure that for every five spaces one must have an active charge point and one must have enabling cabling for future use to encourage the uptake of EVs.

We have also introduced enhanced capital allowances, a tax relief for companies to support the development and installation of recharging equipment. The first-year allowance of 100% allows businesses to deduct charge point investments from their pre-tax profits.

Specifically on Amendment 73, we have also already announced that we will update building regulations to require enabling cabling in all new residential housing developments, as we discussed earlier. In addition, we offer grant funding for private facilities, through our workplace charging scheme, to support installation; it is working particularly well for electric fleets. As a result of these measures, and because of the opportunities in this new market, we are seeing the private sector taking the lead and chargers are going in at destinations including car parks and supermarkets. The noble Baroness, Lady Randerson, gave the excellent example of going to Waitrose because it has a charge point. We are seeing growing numbers of EV drivers using such shops in order to use the charge point.

So we are making good progress on electric vehicle charging points; we have seen 500 charge point connectors installed in the country in just the last 30 days. A lot of companies and destinations throughout the country have ambitious plans to install charging infrastructure. Chargemaster is investing heavily in providing EV charge points at key strategic locations, such as hotels, sports clubs and shopping centres and is planning an additional 2,000 units. Asda has charging facilities at more than 100 of its stores. Even the National Trust is installing charge points at places such as Hadrian’s Wall and the Giant’s Causeway. Health clubs and all sorts of other places are doing it too. So we think that the market is working here. My ministerial colleagues meet regularly with the charge point industry—although not at last night’s dinner—and they are confident that we are making progress in that space.

One of the main reasons for the decisions of major fuel retailers is range anxiety, as we have discussed previously. Of course, we need sufficient charging infrastructure on our motorways and major roads so that people will travel longer distances. When we consulted on the Bill, we determined that it was most appropriate to mandate provision at those sites that are crucial in reducing range anxiety. We believe that the Government should regulate only where there is a specific need and not where we are confident that market forces will deliver the necessary infrastructure to meet the needs of EV drivers. Again, I heard what the noble Baroness, Lady Worthington, said on that.

Amendment 75 is an interesting amendment to enable metro mayors to designate premises under Clause 10, which would allow them to use powers in their local area at a timetable of their choosing. In our conversations with metro mayors it was a priority ask of theirs. As the noble Baroness, Lady Worthington, said, cities and regions play a hugely important role in local environmental strategies and dealing with the air quality challenges they face. Of course, charging infrastructure will need to be part of these strategies. There are some considerations around such an amendment and we need to give it due care and attention. We want to ensure that any regulations or requirements that are introduced receive the proper scrutiny of Parliament. We will be defining large fuel retailers and setting out appropriate circumstances for charge point installation in future regulations. Of course, those regulations will be subject to parliamentary scrutiny; we want to ensure that any powers afforded to mayors or combined authorities in this area can only be exercised within those clear definitions and a defined remit.

Given that these powers are not UK-wide but region-specific there is a possibility that imposing this requirement could encourage the relocation of petrol stations outside of the mayoral area should the requirement be disproportionate. As the noble Baroness, Lady Randerson, said, we also need to make sure that it will not mean that areas that do not have metro mayors lose out. As noble Lords will be aware, metro mayors have different devolution deals—that is also something we will need to consider further. We will also need to consider others in the area with transport responsibilities, such as boroughs and local highways authorities, but we think there is merit in considering aspects of this approach. We would not want it to be wider in scope than the locations as currently defined in Clause 10— I was pleased to hear the noble Baroness, Lady Worthington, mention that. Local authorities have voiced concern about powers being widened to include locations managed by them, but I commit to taking this issue away and considering it before Report. On that basis, I hope the noble Baroness feels able to withdraw her amendment.

[Baroness Worthington]

I thank the Minister for her response. Obviously, as discussed, there are some sequencing issues about when and how you expand scope and for whom. In response to the point made by the noble Baroness, Lady Randerson, about different cities having different tiers, we felt this was appropriate for the mayoral cities because with democratic election comes accountability. You would naturally expect there to be powers that come with that. To the extent that we have already accepted that we are allowing cities to change status by having elected mayors, we are tacitly saying that we are okay with that level of devolution and I do not really see that this is any different. It is about accountability: you have the ability to elect that mayor and they should have powers as a result.

I listened to the Minister’s response and will read it again carefully. There is quite a high reliance here on planning and changes to the NPPF to get us where we want to get to. We will probably come to this in the final group of amendments. My overriding concern is that if you were to look at the market today and see the numbers of electric vehicles being sold, why would you do anything? Why would you require that anything be done? The levels are so low. When it comes to hydrogen, they are almost non-existent. This is going to need some kind of kick-start. The latent demand is there among consumers, I am convinced of that. We have the skills and the money wanting to invest in the infrastructure. I fear that we will just not have the cars.

We will have to come back to that. I hope that in the Road to Zero strategy the Government think hard about how we marry all these infrastructure questions with the market restructuring that is already needed. On the basis that the Minister has agreed to take away some aspects of this, I am happy to withdraw the amendment.

--- Later in debate ---

[Lord Tunnicliffe]

My Lords, I shall speak briefly to Amendment 66, in my name. It would provide exemptions for operators with limited forecourt space who could not accommodate public charging points without an expansion of land, and ensure that retailers and operators did not incur disproportionate costs for complying with regulations. The general thrust of the Bill is to make more charging points available, but we must ensure that there are no unreasonable unintended consequences. I do not think the wording of the amendment is particularly good, but I would like the Minister to consider that general approach. There are a lot of powers in the Bill, and if we are not careful we may find some pockets of unreasonableness.

[Baroness Sugg]

My Lords, I acknowledge this as a particularly excellent group of amendments. These points are all key priorities that will need to be consulted on before any regulations are brought forward. As proposed in Amendments 63 and 64, it is important that the Government can specify the type of charge points being installed in large fuel retailers or service areas. It is already the Government’s intention, as is made clear in the policy scoping notes, that any regulations under Clause 10 would include details of what provision of electric vehicle infrastructure will be required to ensure that the needs of users are met, and to deliver a quick and hassle-free charging experience, similar to refuelling conventional cars today.

This would include: specifying the level of charging infrastructure, most likely to be measured by number of charge points or hydrogen refuelling points; the specification for that infrastructure, such as the minimum power outputs and the connectors of charge points—I entirely agree that we want to avoid multiple chargers, and another VHS/Betamax situation—and any other operational requirements, such as the opening hours of the charge point. Decisions on those will not be taken by the market; they will be set by regulations—but they will be informed by consultation both with the market and with users of vehicles, to ensure that we get it right.

[Lord Campbell-Savours]

Is the Minister saying that the motorway service station provider will be told the proportion between one form of equipment and another?

[Baroness Sugg]

I missed that last point: the motorway service station provider will be told what?

[Lord Campbell-Savours]

The kind of equipment, whether three-hour, 20 minutes, 12-hour or whatever, to install.

--- Later in debate ---

[Baroness Sugg]

Chargers will normally be based on the power they deliver rather than the time but yes, absolutely, the regulations will set the minimum power output required of the petrol stations installing them, otherwise we could run the risk of a much cheaper, slower charging point being installed which would not do the job we require.

Any regulations would also include the details of the circumstances in which the provision of infrastructure would be required, as proposed in Amendments 65 and 66. As my noble friend Lord Borwick suggested, we must ensure that charge points are easily accessible and not at an unacceptable distance from amenities. That is something that we will absolutely include in regulations.

I turn to the point made by the noble Lord, Lord Tunnicliffe: whether regulations will entail a list or definition of service area operators to which the requirements will apply and the criteria for the locations at which fuel retailers will have to make specified provision. Clause 15 gives the Secretary of State power to create exceptions from any requirement imposed by regulations, and that will be used where an expansion of land or other disproportionate cost would be required.

As stated in Clause 16 and detailed in the policy note, all the regulations will of course be informed by consultation with industry, fuel retailers, the motor service area operators, the electrical vehicle infrastructure providers and operators, electricity providers and electric vehicle manufacturers and drivers. The regulations will need to take account of an assessment of the current and planned provision at the locations in question, an understanding of the underlying fuel retail and motorway service businesses and the needs of the users, and the factors which will make particular sites more or less suited to the installation and operation of electric vehicle infrastructure.

The noble Lord, Lord Mawson, raised the interesting question of linking insurance with promoting electric vehicles, particularly to young people, and the worry that we will have infrastructure charge points but not the vehicles to plug into them. I reiterate that the Bill is narrow: it is specifically about the infrastructure of charge points and hydrogen refuelling. It is not the only thing that the Government are doing: we will shortly publish our strategy on the Road to Zero, which will look at the targets we set and exactly how we will use the levers we have to encourage the use of electric vehicles.

I reassure the noble Baroness, Lady Randerson, that interoperability and the ability to charge quickly will be a high priority in the regulations. All the issues raised on the amendments will be important, but they will all be addressed in the regulations. Therefore, the amendments are not needed. On that basis, I hope that the noble Baroness will withdraw the amendment.

[Baroness Worthington]

I thank the Minister for her response. I am encouraged that there will be some good news on the Road to Zero strategy—we look forward to that—and that Clause 10 will be elucidated in regulations. We have talked about this before, but this is one aspect of the Bill that it would be good to attach a timeline to. Perhaps we can talk about that between Committee and Report. On the basis that these issues will be addressed, I am happy to withdraw the amendment.

--- Later in debate ---

[Baroness Randerson]

My Lords, in speaking to my Amendment 106, I want to agree with what has been said by the noble Lord and the noble Baroness. This is a missed opportunity in that, until the last six months or so, transport Bills have been few and far between. I realise that they are falling like confetti now, but each one is so tiny that, between each Bill, there are great gaps in the strategic action that needs to be taken. Ironically, we have been concentrating a lot on the cutting edge of technology—we have looked at space travel in the Space Industry Bill and at lasers. The pace of technology in those areas is very fast, and this is the same. There is a need for strategic thinking, because the detailed stuff is in danger of becoming out of date. The result is that the Government, being aware of that, have written not just narrow Bills but very vague Bills, giving them lots of power to dream up regulations but no guarantee on the direction in which they are going.

The noble Baroness, Lady Worthington, addresses in her amendment the need to be accurate about what the Bill is. Turning that on its head, in various speeches in our proceedings I have referred to the fact that the part of the Bill dealing with automated vehicles ignores the street scene changes and the changes to the structure of road safety law that will be needed. In Amendment 106, I have drawn attention to hydrogen. That is another specific example of other sorts of developing technology that are lower emission and deserve to be part of an overall strategy.

My final thought on this is that the Government need to do a great deal of connected thinking on all these little bits of effort. We are in danger of leading people to think that we have a strategy fit for the future. I do not believe that we have.

[Baroness Sugg]

My Lords, throughout the proceedings today we have considered the scope and timings of this legislation, and those two points are captured by the amendments in this final group.

Amendment 105 suggests that the legislation comes into force on the day on which it is passed. Under the current text, the Secretary of State will appoint by regulation the day on which the Act comes into force. The commencement timings that are currently contained in Clause 18 follow standard conventions for commencement, whereby the substantive provisions of an Act come into force on dates specified in regulations. I understand the desire of the noble Baroness, Lady Worthington, to make sure that the important measures in the Bill are implemented as soon as possible to ensure that we have the tools available to install the infrastructure necessary to support the uptake of electric vehicles in this country, and to enable insurers to start developing products for automated vehicles. I assure the noble Baroness that we do not intend to delay bringing forward this important legislation once it has passed.

As I mentioned earlier in the debate, we will start to bring forward regulations on smart charge points soon after Royal Assent. As outlined in the policy scoping notes, we think that the regulations under Clause 10 will be needed in the early 2020s for battery electric charge points, and not until the mid-2020s in the case of hydrogen refuelling—although that may not be quick enough for the noble Baroness.

As outlined earlier, the Office for Low Emission Vehicles will continue to monitor the market, working closely with stakeholders, to determine when it is appropriate and right to bring forward the regulations. But it is important that the affected sectors are not disadvantaged by having little or no notice of the coming into force of the Act, and that the Government have the flexibility to bring the provisions of the Act into effect at a time when they are ready to use them.

Amendments 106 and 107 would change the Short Title of the Bill. I recognise that there is room for the Bill’s scope to be reflected in greater detail in the Short Title by making more explicit the range of powers included in the Bill, and as we mentioned at the start of this debate, it is clear that hydrogen refuelling is also very much a part of the Bill. It certainly was not designed to get false credit or to be dishonest, so I will certainly look at that issue again before Report.

I should like to take this opportunity, in the final group of the day, to reiterate that this piece of legislation is not the limit of the Government’s activities in the field of electric vehicles and automated vehicles, nor are we standing still while we wait for this legislation to come through. We have narrowly selected the provisions in this Bill to bring forward those that we think are ready and necessary to legislate for at this point in time. We are using a number of other tools to increase the deployment of electric vehicles. Our forthcoming strategy on how we will get to zero emissions from road transport will set out how we will continue to support the transition to zero-emission vehicles, ensure that the UK is well placed to capitalise on new economic opportunities and drive down emissions from conventional vehicles.

I have heard the frustrations of noble Lords today on the level of ambition in the Bill. I am afraid we will not be able to widen its scope. That will be for future legislation after the Road to Zero document, which will be full of connected thinking. But I certainly commit to taking away points raised by noble Lords and to seek to strengthen the provisions where I can. I thank noble Lords for their contributions today, and look forward to returning to the Bill on Report. I hope the noble Baroness is able to withdraw her amendment.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

Report stage (Hansard): House of Lords
Tuesday 5th June 2018 Lords Chamber

Moved by

[Baroness Sugg]

1: Clause 1, page 1, line 6, leave out paragraph (a)

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, following the in-depth analysis of the Bill in this House, we have been looking to strengthen the definitions in Part 1 to more fully explain the purpose of its provisions. We also recognise that the measures in Part 1 relate to a complex and quickly moving technological field. As such, the specificity of language can go a long way to giving industry and consumers confidence in the Government’s approach.

To that end, I have tabled government Amendments 1, 3, 5 and 6 related to the definition of the automated vehicle, to clarify exactly when and where the provisions of the Bill will relate to such vehicles. As I noted in the discussion on this issue in Committee, we do not believe it is necessary, or even possible, to provide a more detailed definition of an automated vehicle and its technical capabilities at this time. Therefore, the Bill does not specifically cover where and how automation will be defined and regulated. This is also why we are not referencing the SAE definitions of vehicle automation in the Bill, as proposed in Amendment 2 by the noble Baroness, Lady Randerson. This part of the Bill simply amends the existing motor insurance framework to enable insurers to develop insurance policies that can appropriately cover for these types of vehicles. Historically, it was the driver’s use of the vehicle that had been insured rather than the vehicle itself.

During the earlier stages of the Bill, my noble friend Lord Borwick raised the important question of whether its provisions would apply, for example, to an agricultural vehicle on public roads which, while perfectly capable of autonomously running up and down a private field, could be driven on the road manually only by a human driver. This highlights an area where the definition, as currently constituted in the Bill, could be open to debate. Our proposed changes to Clause 1 and 2 resolve this issue by further clarifying that the measures in the Bill will apply only to vehicles which may lawfully be put in self-driving mode on roads or other places in Great Britain.

At this point, it is worth repeating that the purpose of the list of automated vehicles maintained by the Secretary of State is not to confer lawfulness to any vehicle. It is simply a list of vehicles that can lawfully be used in automated roads or in other public places in Great Britain. Our proposed amendment makes this clearer. I believe these changes provide greater clarity on where exactly the measures in the Bill apply to vehicles that are capable of lawfully and safely operating in automated mode.

Turning to Amendment 4 in the name of the noble Lord, Lord Tunnicliffe, the purpose of Clause 1 is to ensure that the Secretary of State creates, maintains and publishes a list of automated vehicles, vehicles that are,

“designed or adapted to be capable, in at least some circumstances or situations”,

of safely and lawfully driving themselves, without having to be monitored by an individual. The list is to ensure that consumers and industry understand which vehicles are covered by the new insurance measures. In Committee, the noble Lord, Lord Tunnicliffe, rightly noted that it is crucial for manufacturers, vehicle owners and insurers to know whether they are making, buying, loaning or insuring an automated vehicle, and whether the scope of legislation applies to their vehicle. It is for this reason, and no other, that the Bill includes the list.

In previous debates, I have outlined the Government’s view that the most appropriate place for setting safety standards for automated vehicles is the technical committee on vehicle safety that operates under UNECE, supplemented where necessary by appropriate domestic regulation. As a contracting party to UNECE’s 1958 agreement, which establishes these technical standards, the UK, along with 51 other countries, is bound by international law to recognise these standards and accept vehicles approved to these standards. They help not only to deliver high levels of vehicle safety, but to facilitate international trade.

--- Later in debate ---

[Lord Tunnicliffe (Lab)]

My Lords, with the leave of the House, and with apologies for being a little late, I shall speak solely to my Amendment 4. As I understand it—and I would value a nod from the Minister—she did not refer to Amendment 4 until I arrived. Amendment 4 is exactly as we moved before and we got some response to it on the issue of consultation. We heard:

“That is something that we plan to do … we fully expect this to be subject to full consultation”.


We got something really absolute only when the Minister said that the Government,

“will absolutely consult on the detail”.

I thought, “Great, those are the sorts of absolute terms I like”, only to see that she also said,

“where we need to make further primary or secondary legislation”.—[Official Report, 9/5/18; cols. 196-197.]

Well, of course you will consult when you are trying to get legislation through.

I accept that the Minister has gone some way to reassuring us but I am fearful that, given the order-making powers for conventional vehicles, Parliament may never see the safety criteria—ever. What I would like from the Minister, given the public concern about the conceptually new way of travelling, is an assurance that the safety criteria will come in front of us in one form or another before there is substantial automated vehicle activity on the roads.

[Baroness Sugg]

My Lords, I thank noble Lords for their broad welcome of these amendments. As I said, standards will be set separately to the Bill, both internationally and domestically, using long-established procedures that are well understood by industry. I take the noble Lord’s point, given the public concern on this and the fact that standards are usually set in this way. I fully expect that when the standards are developed, there absolutely will be an opportunity for both the public and Parliament to be consulted on them. I cannot confirm today what mechanism would be used for that. But as the noble Lord pointed out, given the concern and given that this is such new technology, different from what we have seen before, I fully expect that to happen.

The SAE levels lack the precision needed for technical standards and are not currently recognised as a technical standard in either the technical committee or the forum looking at use within the UNECE, and that is why we do not believe they should be referenced in the Bill. We have worked closely with the industry—yes, the insurance industry but also the motor manufacturing industry—on these definitions. We will certainly get in touch with them again before Third Reading to check that they are content.

The noble Baroness asked about the reference to,

“in at least some circumstances or situations”.

That is in the Bill because we expect the first automated cars to be used only in specific areas, such as on motorways. There will be a procedure to safely hand back to the driver. On the point about “safely driving themselves”, this is where the line is between partly and fully automated vehicles, which will not need monitoring by the driver. That is the differentiation. At level 3 the driver needs to monitor and to be able to take control at any point, whereas at levels 4 and 5 they do not need to monitor in any way. But I take the noble Baroness’s point on the usefulness of the SAE levels and I will certainly take that back to our representatives on the UNECE. As I said, we play a leading role in that. I am sure they are discussed but I will make sure they are and will look at whether they can be referred to when the standards are set.

As I said, technical standards and future regulations will be developed with the appropriate level of scrutiny and consultation, just as current road traffic laws and vehicle standards are developed. We do not believe that a consultation clause is needed because we are confident that there will be appropriate scrutiny.

[Lord Mackay of Clashfern (Con)]

I understood the noble Baroness, Lady Randerson, to say that the phrase used in the statute is not something the industry uses. I just wonder what the industry phrase is for this idea.

[Baroness Sugg]

As I said, we have been working closely with industry on this. These things are not clearly defined—that is part of the problem of writing this Bill. But “driving themselves” is something on which we worked with industry and we think that it clarifies the difference between having driver monitoring and not having driver monitoring. As far as I am aware, the industry is content but perhaps I will find out from the noble Baroness where the concerns still lie, and I will commit to speaking to it before Third Reading.

[Baroness Randerson]

Perhaps I may help the House by saying that that point was raised with me by representatives of the Society of Motor Manufacturers and Traders. As I understand it, it refers to automated driving or “driverless”, rather than driving itself.

[Baroness Sugg]

I can certainly commit to speaking to that organisation and I will let the noble Baroness know how that conversation goes.

Amendment 1 agreed.

--- Later in debate ---

Moved by

[Baroness Sugg]

3: Clause 1, page 1, line 10, at end insert “, and
( ) may lawfully be used when driving themselves, in at least some circumstances or situations, on roads or other public places in Great Britain.”

--- Later in debate ---

Moved by

[Baroness Sugg]

5: Clause 2, page 1, line 22, after “itself” insert “on a road or other public place in Great Britain”

--- Later in debate ---

Moved by

[Baroness Sugg]

7: After Clause 6, insert the following new clause—
“Report by Secretary of State on operation of this Part
(1) The Secretary of State must prepare a report assessing—(a) the impact and effectiveness of section 1;(b) the extent to which the provisions of this Part ensure that appropriate insurance or other arrangements are made in respect of vehicles that are capable of safely driving themselves.(2) The report must be laid before Parliament no later than two years after the first publication of the list under section 1.”

[Baroness Sugg]

My Lords, in Committee the noble Lord, Lord Tunnicliffe, proposed a reporting amendment to ensure that the Bill’s proposed insurance framework for automated vehicles is in place and working effectively. I committed to consider whether there was anything further we could do in this area. I absolutely agree that there is value in reporting on the impact and effectiveness of Part 1, so I have tabled Amendment 7 to determine whether this legislation is effective.

Given the uncertainty around the timing of the introduction of automated vehicles, rather than set a date in statute for issuing the report we have chosen to require the report to be laid before Parliament no later than two years after the list of automated vehicles is first published. We want the report to be as meaningful as possible. That will be possible only if the measures have been in operation for a period of time, with automated vehicles being added to the list and insurance policies being offered to drivers of those automated vehicles.

Subsection (1)(a) of this proposed new clause will require the Secretary of State to report on both the impact for consumers and industry and the effectiveness—whether or not the definitions and list work as intended—of the listing of automated vehicles. I hope that this provision will go some way to reassuring noble Lords, given the conversation we had on the previous group. Subsection (1)(b) of the proposed new clause addresses the issue raised by the noble Lord, Lord Tunnicliffe, in Committee: whether the obligations and duties required by the other clauses of this part of the Bill are working to deliver an effective framework for insuring the use of automated vehicles.

I can reassure noble Lords that the insurance industry supports our intended approach to reporting on the Bill’s impact and effectiveness, and that we will work closely with the industry when delivering the report on the operation of this part. I hope that the amendment provides reassurance that we will report on the effectiveness and impact of Part 1 of the AEV Bill, in order to ensure that it is functioning correctly, and that noble Lords will support it. I beg to move.

[Lord Tunnicliffe]

My Lords, I could spin this out but will the Minister settle for “Thank you”?

[Baroness Sugg]

My Lords, I could spin this out too but I am pleased that the noble Lord welcomes the amendment. That is probably all I should say on this matter.

Amendment 7 agreed.

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Moved by

[Baroness Sugg]

8: Clause 7, page 5, line 22, at end insert—
““road” has the same meaning as in the Road Traffic Act 1988 (see section 192(1) of that Act).”

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Moved by

[Baroness Sugg]

9: Clause 8, page 5, line 39, after “charging” insert “or refuelling”

[Baroness Sugg]

My Lords, the Government believe that hydrogen fuel cell electric vehicles are an important technology alongside battery electric vehicles. That is the future we see for decarbonising road transport. Since 2014, we have provided £5 million to fund 12 new hydrogen refuelling stations and £2 million for public and private sector fleets to become early adopters of the vehicles. It is also why we announced in March an additional £23 million to leverage a ramp-up of investments from industry in refuelling infrastructure and vehicle deployment out to 2020.

It has always been the intent behind the Bill to include both hydrogen fuel cell and battery electric vehicles. However, I fully recognise the point made by the noble Baronesses, Lady Randerson and Lady Worthington, in Committee that this needs to be made clear in the Bill so that there can be no confusion as to its intent. I have tabled government amendments to add “or refuelling” throughout the Bill wherever “public charging point” is mentioned. We will continue to make this commitment clear to the consumer and to give the industry confidence to invest in both technologies to drive the uptake in zero-emission vehicles. I thank the Committee for raising the importance of highlighting hydrogen in the Bill, and I am pleased to move these amendments to improve it, by making it clear that all hydrogen fuel-cell technology is included. I beg to move.

[Baroness Randerson]

My Lords, I shall speak to Amendments 49 and 50, which are in this group. Before I do so, I reiterate my thanks to the Minister, who has taken on board the criticisms of the Bill that were made in Committee by me and the noble Baroness, Lady Worthington, in relation to the slight reference to hydrogen in the Bill when it came from the other place. The Government have accepted most of the amendments and have therefore dealt with the confusion of referring to charging hydrogen vehicles when it is not a phrase anyone would use—one would say “refuelling hydrogen vehicles”.

The amendments may appear simple, but they are very significant because the terminology used sends signals to investors and markets about the Government’s wishes and what form of ultra low emission vehicles they are supporting in this legislation. As originally written, it looked as if the Government were backing battery electric vehicles over other technologies, and these amendments put things in a more balanced light and level the playing field considerably.

However, I invite the Minister to think again before Third Reading and change the title of the Bill. The Bill now refers to three specific categories of vehicles—automated vehicles, electric vehicles and hydrogen vehicles—but its title refers to only two of those three categories, so to the less-than-expert observer it would appear that the Government have no legislation to encourage hydrogen vehicles. The Government could have chosen a much more general title, but they have chosen a relatively specific title because the Bill is limited and specific, so it would be sensible to flag up to the world that the Government have this legislation by putting the word “Hydrogen” in the title. I urge the Minister to reconsider this. I have no intention of pushing this to a vote today, but I think it would be useful if the title could be amended at Third Reading.

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[Lord Spicer (Con)]

My Lords, whatever the difficulties, it must be right to alter the title to include the total market. After all, running a car on water is not a mean objective. That is a very important technology that has been left out of the Bill. I think those who have argued in favour of changing the title are right.

[Baroness Sugg]

My Lords, I thank all noble Lords for their comments on this. As I said, the Government recognise that hydrogen fuel cell electric vehicles have the potential to play a significant role in supporting our ambitions for a zero-emission-vehicle future. The technology around hydrogen vehicles is less developed than around battery electric vehicles. I assure noble Lords that in our forthcoming “road to zero emission” document/strategy, which will be published soon, we will talk about hydrogen and set out more on the Government’s position on that. I absolutely take the noble Baroness’s point that it is important that we address zero-emission vehicles, and that is exactly what that strategy is designed to do.

I am afraid I am going to have to disappoint noble Lords on the question of changing the title. The title “Automated and Electric Vehicles” covers both battery electric vehicles and fuel cell electric vehicles. Both are electric vehicles, so I think the title encompasses the vehicles that we are talking about in the Bill. Given the changes that the government amendments have brought about, it is now clear in the Bill that the hydrogen fuel cell vehicles are also covered, so I am afraid I do not believe it is necessary to amend the title. I hope that on that basis the noble Baroness will feel able not to move her later amendments. I beg to move the government amendment.

Amendment 9 agreed.

Moved by

[Baroness Sugg]

10: Clause 8, page 5, line 42, after “charging” insert “or refuelling”

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Moved by

[Baroness Sugg]

11: Clause 9, page 6, line 5, after “charging” insert “or refuelling”

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Moved by

[Baroness Sugg]

13: Clause 9, page 6, line 8, at end insert—
“(aa) performance, maintenance and availability of public charging or refuelling points;”

[Baroness Sugg]

My Lords, this group of amendments introduces a requirement on performance standards for public charge points. This is in response to an issue raised in Committee by the noble Lords, Lord Brooke of Alverthorpe and Lord Broers, and the noble Baronesses, Lady Randerson and Lady Worthington. The points raised during debate highlighted the need to take powers beyond those already in Clause 9 to set reliability, maintenance and performance standards for public charging infrastructure.

Public charge points will inevitably fall into disrepair when used in the public domain, particularly in the early stages as new technologies are developing. While we hope and expect that the market will respond to this, there is a risk that when charge points are installed and utilisation is low—hopefully, only in the early stages—then operators or host sites are less likely to repair them.

I agree that having a significant number of public charge points out of action will adversely impact on the user charging experience, inconveniencing and frustrating EV drivers. This would risk drivers running out of charge while trying to find the next available charge point and pose safety risks, as highlighted by the noble Baroness, Lady Randerson, if drivers are left stranded on public highways or in quieter rural locations. I accept the points made in Committee that greater protection is required for the consumer and that the Bill needs to go further in this regard. This group of amendments provides the Government with the necessary power to introduce regulations that would specify performance standards for publicly available EV charge points and ensure that operators take measures to ensure that faulty charge points are repaired.

I thank noble Lords for raising the issue and hope that the amendments are supported. I beg to move.

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[Lord Deben (Con)]

My Lords, I just want to tell my noble friend how helpful I find the amendment and how useful it is. The climate change committee has drawn attention to the fact that one reason for the lack of uptake of such motor cars is people’s feeling that they cannot rely on a charging system to travel around the countryside. The amendment is an important addition to that provision.

However, I remind my noble friend that one issue here is that people are very suspicious of the correctness of the information given to them by the motor car industry generally. Therefore, this support will be invaluable. We are still being told things about motor cars which are not true. The figures being put out for the performance of motor cars—including electric motor cars—are very different from the reality. It is in that atmosphere that the amendment is important.

I hope that the Government will recognise that in other areas in this business, too, regulation is not an imposition but an encouragement. Good regulation is a good thing. We are against bad regulation. In this area, we need regulation that gives people confidence in what is for most of them a very new technology. I thank my noble friend but also urge her to recognise that we need similar support in other areas if we are to get the change which we will need. I remind her that the Government have set far too far a target for the eradication of new petrol and diesel-driven vehicles: 2030 is necessary if we are to meet the fourth and fifth carbon budgets, so there is a real need to get on with things which will encourage people to buy these motor cars.

[Baroness Sugg]

My Lords, I am grateful for noble Lords’ comments on this. This is a real improvement to the Bill, and the provision of this power will help to ensure that we have a working and reliable charge point infrastructure.

On the point made by the noble Baroness, Lady Worthington, I agree that this is a slight chicken and egg situation, in that we are not going to get the cars produced if there is no demand for them, and we will not get the demand for them if we do not have the infrastructure for them. It is important that we look at the two aspects in parallel—the manufacturing of cars and the provision of infrastructure.

I thank my noble friend Lord Deben for his comments. There are many provisions in the Bill on information and transparency. I entirely agree that we need to give confidence to consumers in this new area. This Bill is just part of our work as a Government on encouraging the move to zero-emission vehicles. I am going to say it again, but we will soon be publishing the road to zero strategy, which will set out in more detail how we plan to move towards zero-emission vehicles.

Amendment 13 agreed.

Moved by

[Baroness Sugg]

14: Clause 9, page 6, line 9, after “charging” insert “or refuelling”

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[Lord Lucas (Con)]

My Lords, retrofitting can be very expensive, particularly in concrete structures and if you have not provided for the proper electricity supply or at least the potential for it. We are letting ourselves in for large bills in the future, and small bills in the present, if we agree with the idea that we should insist on new builds providing for charging points.

[Baroness Sugg]

My Lords, I thank the noble Baronesses, Lady Randerson and Lady Worthington, for raising amendments for consideration around housing issues and future-proofing new homes and developments. I entirely agree that if we are to move to zero-emission vehicles, as we all wish to do, we need to make sure that we have the correct infrastructure in housing and non-residential developments.

On Amendment 18 and the removal of public charge points, I hope that I will be able to provide reassurance on this matter. Where charge points are installed on local highways or land owned by local authorities, obviously local authorities already have the ability to ensure the installation of charge points, or prohibit their removal in line with any contracts they have in place. Where charge points are installed with public-funded grants to local authorities, as all public-funded charge points currently are, local authorities will have contractual arrangements in place regarding the charge points.

On the issue of planning permission, where a charge point is installed as a condition of a grant of planning permission, which could be determined in accordance with a particular policy in a statutory plan, whether it can be removed will depend on the specific conditions of the grant of planning permission as set out by the local authority itself. The developer would therefore have to apply to the local planning authority to have that condition lifted if it wanted to remove the charge point. The planning authority has the opportunity to consider the merits of agreeing to lift the condition, but we expect that it would not, and it would be difficult for these charge points to be removed.

On Amendment 19 and the issue of charging infrastructure rights and wayleave agreements, I said in Committee that I would discuss this further with other relevant departments, which I have done. Wayleave agreements are sometimes required for rapid charge point installations if cables need to be laid across third-party land for a new connection to the grid or to upgrade the grid. Currently, the wayleave agreement is voluntary for the third party who own the land and they do not have an obligation to accept the wayleave.

As I mentioned in Committee, in cases where an agreement for a wayleave cannot be reached between the installer of electricity equipment and the landowner, we have powers under the Electricity Act 1989 which give the installer statutory powers upon which it can call if no alternative solution can be found, such as another route for the cable. This means that a statutory application can be lodged with the Secretary of State for Business, Energy and Industrial Strategy to award the installer a necessary wayleave as long as it can prove why it is necessary and expedient. This process also allows the landowner to show how the granting of a wayleave will impact on their use and enjoyment of the land. This is a different situation from that of telecom lines, which, as the noble Baroness said, following the Digital Economy Act 2017 are now considered to be critical national infrastructure. There was widespread evidence of problems there which did not have the same resolution mechanism.

Therefore, although I appreciate the noble Baroness’s intentions, as she acknowledges, there is little evidence at the moment that the existing statutory powers are insufficient. Since Committee, we have discussed this issue with the trade body for the distribution network operators, the Energy Networks Association, which is of the view that the existing legislation is well established and effective, especially given the resolution mechanism.

We continue to have concerns that the amendment does not allow for the private rights of the owner of any third-party land to be taken into account or for any potential environmental effects to be considered. Because private land access rights are involved, we want to seek more evidence and consult a wide range of stakeholders before taking that any further.

[Lord Brooke of Alverthorpe]

Can the Minister expand a little further on that? Are the Government positively taking action, or are they waiting for a groundswell of demand before they will take action?

[Baroness Sugg]

Is the noble Lord referring to the granting of wayleaves? We do not think that there is a problem at the moment. After conversations that we have had, we think that wayleaves are granted. They are either resolved between the landowner and the installer or, as I said, there is a resolution mechanism. We have heard of one case that was not able to be sufficiently resolved. Obviously, in those circumstances there will be frustration on the part of one or more parties. However, such cases are invariably resolved using the existing regulations or alternative engineering options, so we do not think that there is a need to take a power on this at the moment.

[Lord Deben]

Does my noble friend accept that it is a question not just of the granting of the wayleave but of the speed at which it is done? There are many such examples and in the end wayleaves are granted. I still do not understand why in these circumstances we have not applied the speed with which we deal with telecommunications because of the pressure for broadband. Why do we not do the same thing?

[Baroness Sugg]

We have based the Bill on the evidence that we have seen and the problems that we have heard about. I acknowledge that the resolution process can be lengthy if it has to go through the Secretary of State for BEIS, but I appreciate that in the application of new technology there is an element of learning and improvement, particularly for new entrants to the market. We will keep the current statutory arrangements under review and, if further evidence becomes apparent, we will consider what further appropriate action we can take.

We have asked the Government’s new EV energy task force to look at the issue of wayleaves. As I said, we acknowledge that if there is a lengthy period before disputes can be resolved, that will put people off. The task force launches shortly and will work with government, the energy sector and the automotive sector to look at what further actions can be taken to ensure that the energy system is used more efficiently for the uptake of electric vehicles. We have specifically tasked the task force with that.

Amendments 20 and 35 in the names of the noble Baronesses, Lady Randerson and Lady Worthington, rightly highlight the importance of ensuring that new developments include provisions for necessary charging infrastructure. I entirely agree with my noble friend that it will be cheaper to get this right now than to try to do so retrospectively. The recent consultation on the National Planning Policy Framework considered the same policy. It sets out that, when developing local plans, local authorities must fully consider the inclusion of charge points in new developments.

The proposed NPPF envisages that applications for developments should be designed to enable the charging of plug-in and other ultra low emission vehicles in safe, accessible and convenient locations. It also sets out that, if setting local parking standards for residential and non-residential development, policies should take into account the need to ensure the adequate provision of spaces for such vehicles. We are considering many responses to the consultation, and the Government will respond in the summer.

In addition to the measures in the NPPF, building regulations have a big potential to play a role in the move to electric vehicles—in particular, regarding the provision of ducting and pre-cabling infrastructure for new buildings. In our industrial strategy we have committed to update building regulations for new residential developments, saying that they must contain the enabling cabling for charge points in homes. That will be an important step in future-proofing new homes and avoiding more costly retrofitting.

The NPPF addresses the specific point on non-residential buildings, but we already have the powers to introduce such changes through building regulations, so we do not think that they need to be included in the Bill. However, we have carefully considered the issues discussed in Committee, and I am pleased to confirm that we will extend our planned consultation on amending the building regulations for new residential dwellings to include appropriate provision for non-domestic buildings. We will consult on the appropriate regulatory requirements for all new buildings—residential and non-residential—to prepare for charge-point provision. As suggested in the amendments, this work will include considering the options for pre-cabling, and options for specifying a certain level of charging or refuelling points.

Amendment 34 would introduce regulation to ensure leaseholders are not denied the ability to install charging infrastructure, and I have reflected on the discussions in Committee on this issue. Of course, where leaseholders and the landlord or freeholder agree, a charger can be installed very quickly, but this amendment seeks to address those scenarios where one or other interested party has not agreed for whatever reason—we discussed what they could be in Committee. We want to consider these issues carefully. They relate to safety, ownership and cost. Following discussions with the Ministry of Housing, Communities and Local Government, I can confirm that access to electric vehicle charge points will now be considered in the work that the Government are doing on leaseholding. A consultation will be published in the autumn.

I take the point made by the noble Baroness on timing. We certainly do not want to wait until 2021 on that and we will not have to. The project has already kicked off with a call for evidence and we will add this point into it. The Law Commission is already part way through examining the responses. The formal consultation is due to be published in the autumn and the final report will be in June next year—a little quicker. That consultation will provide a good opportunity to work through the issues around leasehold.

Given the confirmation that both leasehold properties and non-residential buildings will now be included in the forthcoming consultations, along with the assurance that the Government’s new electric vehicle energy task force has been specifically asked to review the issue of wayleaves, I hope that the noble Baroness feels able to withdraw her amendment.

[Baroness Randerson]

I beg leave to withdraw the amendment.

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Moved by

[Baroness Sugg]

22: Clause 10, page 6, line 27, after “charging” insert “or refuelling”

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Moved by

[Baroness Sugg]

24: Clause 10, page 6, line 30, after “charging” insert “or refuelling”

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Moved by

[Baroness Sugg]

29: After Clause 10, insert the following new Clause—
“Duty to consider making regulations under section 10 on request by elected mayor
(1) The Secretary of State must consider making regulations under section 10 in relation to roads forming part of the key route network in a relevant area if—(a) the mayor for the relevant area makes a request for such regulations to be made,(b) conditions 1 and 2 are met, and (c) the Secretary of State considers that the mayor has complied with any prescribed requirements before making the request.(2) Condition 1 is that the Secretary of State is satisfied that, before making the request, the mayor—(a) published proposals for regulations to be made under section 10 in relation to roads forming part of the key route network in the area, and(b) consulted—(i) persons who would be likely to be subject to requirements under the regulations (if made), and(ii) such other persons as the mayor considers appropriate,in relation to the published proposals.(3) Condition 2 is that the mayor has given the Secretary of State a summary of the responses to the consultation referred to in subsection (2)(b).(4) The Secretary of State may disregard a request to the extent that it relates to the definitions of “large fuel retailer” and “service area operator”.(5) For the purposes of this section—(a) “relevant area” means the area of a combined authority or Greater London;(b) a road forms part of the key route network in a relevant area if—(i) in the case of the area of a combined authority, the road is one in relation to which functions are exercisable by the combined authority as a result of an order under section 105A(1) of the 2009 Act;(ii) in the case of Greater London, the road is a GLA road (within the meaning of the Highways Act 1980);(c) the mayor for a relevant area is—(i) in the case of the area of a combined authority, the mayor for the area elected in accordance with section 107A(2) of the 2009 Act;(ii) in the case of Greater London, the Mayor of London.(6) In this section—“the 2009 Act” means the Local Democracy, Economic Development and Construction Act 2009;“combined authority” means a combined authority established under section 103(1) of the 2009 Act.”

[Baroness Sugg]

My Lords, this group of amendments considers an interesting and important point around the role of metro mayors in enabling the installation of charging infrastructure. I explained in Committee that we would reflect on the points made in that debate and my response has been to table Amendment 29. Cities, regions and counties play a hugely important role in local environmental strategies and dealing with air quality challenges. Charging infrastructure will need to be a part of these strategies and this provision would give them a lever to help deliver it locally. As discussed in Committee, it is important that the relevant highways authorities and combined authorities work together with industry to deliver local solutions, supported by government. We spoke on earlier groups about how local authorities and metro mayors are working together and I welcome the London EV infrastructure task force, launched by the Mayor of London last week, as a good example of this working in practice. We look forward to what it achieves.

Government Amendment 29 would enable metro mayors—the Mayor of London and mayors of combined authorities—to designate locations defined in Clause 10. As we have just discussed, this is limited to large fuel retailers and service area locations installing charging infrastructure within their defined key route networks. Mayors would be required to consult on such premises and notify the intent for regulations to be made to the Secretary of State, who must then decide whether to make regulations. Reasoning would be provided to applicant mayors should the Secretary of State choose not to introduce such regulations. It is intended that these powers could only be exercised once the definitions of large fuel retailers and the factors that would determine the suitability of a particular location have been adopted in regulations. We think this would provide clarity and ensure appropriate scrutiny prior to the power being exercised.

I shall speak also to Amendments 30A, 31, 32A and 33A in this group, as we can make some movement on them. Amendment 30A, tabled by the noble Baroness, Lady Worthington, as an amendment to Amendment 29, seeks to introduce requirements that when proposed by mayors the Secretary of State must either introduce requirements following a mayoral request or provide reasoning why not when notifying the applicant mayor. I assure the noble Baroness that the Secretary of State intends to bring forward the regulations on the basis that they are appropriate, but it is right and proper that the Secretary of State would have the ability not to introduce the regulations should, for any reason, he not be satisfied that the requirements have been complied with. Should that be the case for any reason, as I said in my opening remarks, it is certainly the intention that any reasoning would be fully explained to the relevant mayor.

Amendment 30A would also delete proposed new subsection 1(c) of Amendment 29, which we want to maintain. It is important to ensure that no unreasonable burden is placed on retailers, that any approach is in line with agreed definitions and that any appropriate consultations have been undertaken. I confirm that I will bring forward at Third Reading a government amendment similar to Amendment 30A but with that provision maintained.

Amendments 31 and 33A, also tabled by the noble Baroness, Lady Worthington, seek to widen the scope of designation by metro mayors beyond large fuel retailers on the relevant key route networks or red routes in London. We have some concerns about widening the scope beyond the key route networks if motorway service areas were also included. We think it is most appropriate for DfT and Highways England to maintain a strategic national-level oversight of service areas, given their responsibilities for these motorway routes and the need to ensure sufficient infrastructure at these strategic locations. However, removing the limitation of the key route networks may be appropriate so metro mayors can take a strategic view of large fuel retailers across their areas. To be absolutely clear, this would be appropriate for charge points at large fuel retailers only, not on the roads themselves. I know local authorities have been concerned.

Amendment 32A seeks to clarify that metro mayors should consult the relevant local authority. This is something we would fully expect to happen. It is important that local authorities are involved in infrastructure provision, and I confirm that at Third Reading we will look to bring forward government amendments similar to Amendments 31, 32A and 33A, but removing the reference to service area operators for the reasons I have mentioned. I hope that will address the noble Baroness’s concern. I beg to move.

Amendment 30A (to Amendment 29)

Moved by

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[Lord Campbell-Savours]

My Lords, we may not be in the blame game, but the noble Lord has actually made a strong statement there about the response of TfL to the boroughs. I reserve my comments until, perhaps, we have had a response from those who almost stand in the dock—and perhaps I can raise my comments on Third Reading.

[Baroness Sugg]

My Lords, I apologise if there is any confusion on this issue. Obviously, having amendments to a government amendment can lead to confusion. As I said, we will bring forward a government amendment, taking on board other comments, and we will endeavour to do that as soon as possible.

On Amendment 33, on extending the power to local transport authorities, we have a number of combined authorities with a directly elected mayor which are designed to deliver their strategic transport priorities across their city regions. We support the devolution of powers to authorities when local decision-making will support improved delivery of transport outcomes. Mayoral combined authorities and the Mayor of London provide an appropriate level of democratic accountability and strategic oversight, which individual local authorities do not necessarily have. We have made the decision to devolve certain strategic powers to metro mayors and metro mayors only and, in this case, we do not think that we should extend them to other local transport authorities.

I will move on to the issues involved in Amendment 29. We discussed London councils, TfL and the mayor at length in Committee and I mentioned this in my opening remarks. We welcome the new taskforce which has been set up and is well represented by all these organisations. There is a real will to work together to deliver these rapid charge points. We are encouraged by that and look forward to seeing progress made.

[Lord Tunnicliffe]

My understanding from the Minister’s opening remarks is that Amendment 29 is in the pot to be brought together with the other amendments in a new amendment being brought forward at Third Reading.

[Baroness Sugg]

Yes, the plan is to bring forward one amendment. We aim to combine Amendments 29, 30A, 31, 32A, 33 and 33A into one—we hope simplified—government amendment. On the point made by the noble Lord, Lord Tope, I make it clear that these are only regulation-making powers under Section 10, which is solely for large fuel retailers and service area operators. That is what these devolved powers refer to. I acknowledge that they do not go as far as the metro mayors want. I do not suggest that we get into another conversation about widening the scope of the Bill and the powers of the metro mayors. The Government’s amendment is related purely to those operators. We will come back to this ahead of Third Reading.

The noble Baroness, Lady Randerson, referred to the DPRRC memo. We will go back to the committee with our response and I will copy in all noble Lords. Under Regulation 16(4), the first regulations made following a request by a metro mayor would be subject to the affirmative procedure so the first use of the powers would be debated by Parliament. However, any further exercise of the power is expected to raise similar issues to the first such exercise. Any such regulations would also have been subject to two periods of consultation: the metro mayor would be required to undertake local consultation before asking the Secretary of State to make regulations, and under Regulation 16(3) the Secretary of State would be required to undertake consultation before making the regulations. We think that is sufficient. I am afraid I received the letter only yesterday evening, but we will reply in the coming days and I will make sure that all noble Lords are copied in.

As I said, we will endeavour to come back as soon as possible with a revised government amendment which I hope will simplify matters.

Amendment 30A withdrawn.

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Moved by

[Baroness Sugg]

36: Clause 11, page 6, line 38, after “charging” insert “or refuelling”

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Moved by

[Baroness Sugg]

39: Clause 12, page 7, line 26, leave out “public charging points” and insert “provided as mentioned in paragraph (a)”

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Moved by

[Baroness Sugg]

44: Clause 16, page 9, line 17, at end insert—
“(4A) Where—(a) a statutory instrument contains regulations under section 10 (large fuel retailers etc), and(b) the regulations amend the definition of “large fuel retailer” or “service area operator”,the instrument containing the regulations may not be made unless a draft of it has been laid before Parliament and approved by a resolution of each House.”

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Moved by

[Baroness Sugg]

48: After Clause 16, insert the following new Clause—
“Report by Secretary of State on operation of this Part
(1) The Secretary of State must, in respect of each reporting period, prepare a report assessing—(a) the impact and effectiveness of regulations made under this Part;(b) the need for regulations to be made under this Part during subsequent reporting periods.(2) Each report must be laid before Parliament after the end of the reporting period to which it relates.(3) The first reporting period is the period of two years beginning with the day on which this Act is passed.(4) Each subsequent period of 12 months after the first reporting period is a reporting period.”

[Baroness Sugg]

My Lords, following similar amendments in Committee, government Amendment 48 introduces a new clause on reporting for Part 2. This amendment would require the Secretary of State to produce a report to be laid before each House of Parliament every year, commencing two years after Royal Assent. This is a broad reporting clause and, for example, would allow the Government to: assess the effects of the regulations on electric vehicle uptake; assess the effects of regulations on industry and consumers; assess how regulations are benefiting the energy system and consumer electricity bills; look at the impact on the Government’s carbon and air quality targets; and consider other social and environmental impacts.

As well as this proposed new clause on reporting, the Government already have other reporting mechanisms and requirements. I explained some of these in Committee, such as the legal obligations to report, and make public, data on air quality and emissions of a range of damaging air quality pollutants, as well as the reporting duties that already exist under the Climate Change Act 2008.

In addition to those reporting requirements, the department publishes statistics on electric vehicle registrations on websites and provides data on the number and location of public charge points. The powers in the Bill will enhance this information and ensure that it is openly available.

As well as assessing the impact of the regulations made, I am also pleased to have included in the amendment a requirement for an assessment of the need for other regulations to be made under this part during subsequent reporting periods. This will help to ensure that further regulations are made in a timely and appropriate manner. I hope that noble Lords are able to support this new clause as one that will complement the Government’s other reporting mechanisms, I beg to move.

[Baroness Randerson]

My Lords, I am pleased to see this amendment committing to a reporting procedure. It is highly sensible because of the way in which we are having to second-guess the future. The speed of response to change could well be quite rapid. I recall the noble Baroness, Lady Worthington, quoting some statistics at our last sitting. She referred to a big spike in the sales of petrol cars that matched the rapid decline in the sale of diesel cars. I use that example to illustrate that changes in this market can be very rapid in response to public knowledge, concern and awareness of environmental issues.

I will use the opportunity of this reporting amendment to urge the Government to give some thought now to the possibility of including car parks in their proposals at Third Reading. Car parks were included as a possibility for further regulations, I suggest gently to the Government that they have the discretion not to implement anything about this in the near future, but they could look, after the first report comes forward, at car parks if their measures implemented in relation to service stations have not proved sufficiently effective. That would mean that they would have the weapon in their armoury, kept in the background. They would not have to go to further legislation and further amendment, which could be difficult and time-consuming. However, I welcome the idea of regular government reports on this rapidly changing situation.

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[Lord Tunnicliffe]

My Lords, I believe that we asked for this provision in Committee, and if we did not, we meant to do so. Either way, we thank the Minister.

[Baroness Sugg]

My Lords, I am grateful for the broad welcome expressed by noble Lords for the reporting amendment. I can reassure my noble friend that we will lay the report within two years of the Act being passed and further reports every 12 months after that. I did raise the issue of this wording and I have been assured that it has many precedents.

As this is the last group of the day, I thank all noble Lords for their contributions. I know that some believe that the Bill is too narrow in scope and does not go far enough in the provision of electric charging infrastructure. I would like to point out that infrastructure is just one element of Part 2. We have also made provisions on access, connection, information, data, smart charging and now reliability. While I acknowledge the views of noble Lords on infrastructure, we have sought to address any issues where we find them. Again, it is a part of the Bill, not its entirety. Indeed, the Bill forms only a small part of the work that the Government are doing to ensure that we have a successful transition to electric vehicles. I may as well say one last time that our upcoming “road to zero” strategy will set out our plans in more detail.

I have listened to the arguments put by noble Lords throughout the passage of the Bill and I have moved amendments to improve it. Again, I thank noble Lords for their constructive engagement.

Amendment 48 agreed.

Automated and Electric Vehicles Bill

Baroness Sugg Excerpts

3rd reading (Hansard): House of Lords
Wednesday 13th June 2018 Lords Chamber

Moved by

[Baroness Sugg]

1: Clause 12, page 7, line 22, leave out from “making” to “relevant” in line 23 and insert “section 11(1)(a) regulations in relation to the whole or part of a”

[The Parliamentary Under-Secretary of State, Department for Transport (Baroness Sugg) (Con)]

My Lords, this group of amendments follows the debate on Report considering the role of metro mayors in enabling the installation of charging infrastructure. In line with commitments I made on Report, I have tabled government amendments to provide clarity around this clause. I have removed reference to the “key route network” so that metro mayors can take a strategic view of large fuel retailers across their areas. As I mentioned on Report, this is limited to “large fuel retailers” and not “service area operators”, as these areas, which are situated primarily on motorways, are best dealt with on a national level.

I have made it clear that regulations can be proposed only once “large fuel retailers” has been defined. In any instance where the Secretary of State of State chooses not to introduce regulations, he will be required to inform the applicant mayor of the reasoning and there will be a requirement to ensure that relevant local authorities are consulted. I beg to move.

[Baroness Randerson (LD)]

I thank the Minister for that explanation. For the information of those listening, the noble Baroness, Lady Worthington, and I attempted to lay an amendment to clarify the issue of service areas, or car parks as they might be called. However, according to the rules of the House that was not possible at Third Reading, so there is no amendment from us. But there is still a question in my mind: how do the Government envisage the strategy and policy, going forward? As I mentioned the last time we discussed this, if you go to a service area on a motorway you get your electric charging near the café—very often hundreds of feet from the fuel station—but that does not appear to be what is in the Government’s mind in relation to other service areas. I would like to know what the Government’s strategy is on this. I am sorry to be raising such a detail at Third Reading but we really only talked about this on Report. I still do not have a real understanding of why the Government are not considering having regulations in relation to the car parks associated with service areas, rather than just the fuel stations.

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[Baroness Sugg]

My Lords, I thank noble Lords for their contributions on this last group in the Bill. On the location of charging points within service areas, I take the point made by the noble Baroness, Lady Randerson, and the location of the charge points will be consulted on for the regulations.

On car parks and destination charging in general, I entirely agree that destinations such as car parks should install charging infrastructure to support the overall transition to electric vehicles. While, in relation to the provision of public charge points, the Bill focused on enabling long-term strategic journeys, following the debate on Report, my noble friends and I are well aware of noble Lords’ strength of feeling about the provision of charge points in private car parks, and we have followed this up with the department. I thank the noble Baroness, Lady Worthington, for her persistence on this matter, and I am today able to commit to taking forward more action in this area. We will engage further with the private car parking industry to encourage best practice and will consider whether voluntary commitments can be made by the main private car park operators. We will also work with the Institution of Civil Engineers with a view to ensuring that industry guidance on the design and maintenance of car parks includes information and advice on charging provision. We will consider addressing requirements for charging infrastructure for car parks through the Private Member’s Bill on a parking code of practice, which has cross-party support.

I take this opportunity to update noble Lords on an issue which has come up at various stages of the Bill: the provision of electric charge points in our car park. I spoke to the parliamentary estate office this morning, and I am pleased to say that despite there being many other pressures on its time, we are making good progress on this. The feasibility study has produced some positive results and we are expecting the installation of some charge points in Royal Court soon.

This Bill provides a stepping stone in the development and deployment of automated vehicles on UK roads, and for zero-emissions vehicles, both electric battery and hydrogen refuelling, it will address access, standards and connection for public charging or refuelling points. It will address some of the issues of range anxiety, ensure adequate information for users and ensure that future charge points are smart. I acknowledge noble Lords’ feelings on the narrowness of the Bill, and I entirely agree that the Government must look at the bigger picture. The Bill is just one part of the work the Government are doing to ensure that we have a successful transition to zero-emissions vehicles. The upcoming strategy on electric vehicles will set out in more detail a suite of other measures which will enable us to reach a zero-emissions future.

I also take this opportunity to thank the Bill team, who have worked on this Bill for many months, and my noble friends Lord Lucas and Lord Borwick, the noble Lord, Lord Tunnicliffe, the noble and gallant Lord, Lord Craig, the noble Baronesses, Lady Randerson and Lady Worthington, and all other noble Lords who have helped to ensure rigorous scrutiny throughout the passage of the Bill. The constructive engagement, conversations and debates have led to significant improvements.

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[Lord Craig of Radley (CB)]

My Lords, before the Minister sits down, we have concentrated very much on charging points, but the Bill was amended on Report to cover hydrogen refuelling points. They may not need exactly the same thing, so I would like an assurance that the way they are treated will take account purely of what they are for rather than making the broad assumption that they are charging points and therefore electric only.

[Baroness Sugg]

I am happy to confirm that. Many amendments changed the Bill to ensure that we were dealing with hydrogen refuelling points as well. That was always the intent of the Bill but I agree that that was not clear enough, which is why we moved government amendments following interventions by the noble Baroness, Lady Randerson, and others on that issue. The technology around hydrogen is not yet as advanced as it is around electric battery but we will be addressing our hydrogen strategy in the upcoming Road to Zero document.

Amendment 1 agreed.

Moved by

[Baroness Sugg]

2: Clause 12, page 7, line 26, leave out “and 2” and insert “to 3”

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Moved by

[Baroness Sugg]

12: Clause 18, page 11, line 16, at end insert—
“(8) If a draft of a statutory instrument containing relevant section 11(1) regulations would, apart from this subsection, be treated for the purposes of the standing orders of either House of Parliament as a hybrid instrument, it is to proceed in that House as if it were not such an instrument.(9) In subsection (8) “relevant section 11(1) regulations” means regulations under section 11(1) that are made pursuant to section 12 (duty to consider making regulations on request by elected mayor).”