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Chamber and committees

Rural Affairs, Climate Change and Environment Committee

Meeting date: Wednesday, December 12, 2012


Contents


Subordinate Legislation


Pollution Prevention and Control (Scotland) Regulations 2012 [Draft]

The Convener (Rob Gibson)

Good morning, everybody, and welcome to the 29th meeting in 2012 of the Rural Affairs, Climate Change and Environment Committee. I ask that members, witnesses and the public make sure that their mobile phones and BlackBerrys are not on, as they can affect the sound system.

Under agenda item 1, on subordinate legislation, members will take evidence from the Minister for Environment and Climate Change on the draft Pollution Prevention and Control (Scotland) Regulations 2012. The instrument has been laid under the affirmative procedure, which means that the Parliament must approve it before provisions may come into force. Following this evidence session, under agenda item 2, the committee will be invited to consider the motion to approve the instrument.

I apologise for being a couple of minutes late in starting, minister. I welcome you and your officials: George Burgess, deputy director of the environmental quality division; Andrew Crawley, legal adviser to the Scottish Government; and Wendy Thornton—I do not know her designation, but she is welcome. Do you wish to speak to the instrument, minister?

The Minister for Environment and Climate Change (Paul Wheelhouse)

I do, if you are willing, convener. I can clarify that Wendy Thornton is a pollution control specialist at the Scottish Environment Protection Agency and is here to support me.

I welcome the opportunity to introduce the newly revised and consolidated regulations on pollution prevention and control for Scotland. The new regulations are a welcome consolidation of the previous Pollution Prevention and Control (Scotland) Regulations 2000, which were subject to 25 sets of amendments and were hard for everyone to work with. The new regulations also transpose the requirements of the industrial emissions directive—the IED—which must be done by 7 January.

The industrial emissions directive itself consolidates seven previous directives, including the directive on integrated pollution prevention and control of 2008.

The regulations cover a wide range of industrial activities, from large chemical plants down to dry-cleaning shops. The principle of integrated pollution prevention and control is now well established. SEPA issues one permit to cover the full range of activities that an industrial installation carries out and all environmental effects. For larger installations, of which there are 475, including landfill, food-processing and intensive pig and poultry sites, that means emissions into air, water or land. For smaller installations, of which there are 1,650, including petrol stations and dry-cleaners, only emissions into air are covered.

The main change that the IED makes to the regulatory regime is around best available techniques—BATs. Up until now, national regulators have decided what constitutes the best available techniques that should be used for certain industrial processes. Under the IED, the best available techniques will increasingly be determined on a European Union-wide basis. That is intended to create a more level playing field for industries that compete in a market that goes Europe-wide and beyond and to enable an easier read-across from one country to another regarding compliance.

Other changes under the IED include some industrial activities being brought within IPPC controls for the first time or on a stricter basis, such as wood preservation and some waste treatment activities, and clearer thresholds for food production activities—especially where animals and vegetables are processed on the same site. For the many businesses that already have PPC permits, the new regulations making changes under the IED will have little or no impact. Their permits will be updated automatically to reflect some relatively minor administrative changes. New installations that apply for permits from January onwards will need to apply under the new regulations. However, because those businesses are new, that will not represent a significant change or adjustment for them.

Existing installations whose activities are being brought within the scope of the PPC regulations for the first time will have until July 2015 to obtain permits from SEPA. As well as offering a process of staged applications for those new activities to make the task more manageable for SEPA and operators, SEPA will provide advice and guidance in support of the new regulations and on what they mean for individual operators.

Going forward, significant efforts will need to be made to influence how the EU establishes what the best available techniques are for each industrial activity, including plants in our chemical sector. That will be a major focus for SEPA in working with regulated customers, whose expertise will be essential in influencing the setting of standards that make sense for businesses in Scotland.

Thank you. I open the session to members to ask questions. I will kick off by referring to the list that you mentioned. Are such matters as waste energy and combined heat and power plants included in the regulations?

Paul Wheelhouse

Sites such as waste treatment plants are already covered by regulations, so the new regulations will not have a major impact on existing sites. However, any new sites will be bound by the new regulations. I ask George Burgess to explain the implications specifically for waste energy plants.

George Burgess (Scottish Government)

The regulations cover both conventional combustion plants and waste incineration; however, because they are already covered by the 2000 regulations, there is no major change in that respect. The waste incineration directive is one of the set of European directives that were consolidated into the industrial emissions directive; in other words, the controls are essentially the same as existing controls that have been consolidated.

You mentioned emissions into the air. Do any parts of these regulations relate to emissions into watercourses?

Paul Wheelhouse

An unintended consequence is that, although the primary purpose for which a site has been regulated might not have such an impact, there might be other knock-on impacts and, under the regulations, SEPA will have an additional enforcement power in the context of incidents and accidents and will be empowered to take enforcement action in the event of an incident that gives rise to serious pollution, even if no permit condition has been breached. In short, if the permit for a site related to, say, waste incineration but there was a pollution incident involving the water table that was not necessarily a direct consequence of the activity for which the permit was given, that could be picked up under the new enforcement power. George Burgess might be able to provide further clarification on the water issue.

George Burgess

As the minister has mentioned, with regard to larger-scale installations, which are termed “part A installations”, the regulations refer to

“the direct or indirect release of a substance, a vibration, heat or noise from individual or diffuse sources in an installation into the air, water or land”.

A direct release into water would be covered by the Water Environment (Controlled Activities) (Scotland) Regulations 2011 under the Water Environment and Water Services (Scotland) Act 2003. However, the sort of releases that might find their way into watercourses from the plants that we are talking about will go first into the air or on to the land and then run off and, as a result, would be caught. Wendy Thornton might have something to add about the practicalities from SEPA’s perspective.

Wendy Thornton (Scottish Environment Protection Agency)

Under pollution prevention and control legislation, we are allowed to set limits or controls on emissions into the air, directly into water and on to the land. With that kind of integrated approach, we can determine the best trade-off with regard to controls.

That was helpful.

Alex Fergusson (Galloway and West Dumfries) (Con)

This is not a time when any sector in society will welcome extra financial burdens and I note that certain sectors have raised on-going concerns about the initiative’s financial impacts and how they will settle with other factors that affect their long-term financial planning. How might those sectors be mollified—if that is possible?

Paul Wheelhouse

I refer the member to the new Europe-wide approach to BATs. Business might face additional costs, but the imperative on us is to ensure that sectors such as chemicals and, indeed, agriculture engage as fully as possible with our colleagues in Europe through SEPA and Scottish Government colleagues so that their interests are represented in the setting of BATs and that, where possible, we fully inform the adopted practice that will—if you like—become the level playing field for the whole of Europe. Such an approach will ensure that businesses across Europe bear the cost equally. Indeed, I hope that it will be in line with actions that specific sectors in Scotland from the chemical industry—in, for example, the refineries at Grangemouth—through to our farmers are already taking. As our interests are reflected in the standards that are set, it is perhaps for other countries to move up to our standard instead of our having to take on additional costs to meet new thresholds. We have an interest in playing an important role in the process.

I am grateful for that explanation, but could we in any way be accused of gold-plating regulations and allowing our European partners to continue in a more competitive way than we are able to do in taking these regulations on fully?

Paul Wheelhouse

You might well be right that in the past we might have embraced the true spirit of the regulations while individual sites and other parts of Europe were not quite so enthusiastic. As I said in my opening statement, by setting a Europe-wide standard, the new approach will allow an easier read-across from our sites and industries to those of competitor nations. There might be a language issue in looking at permits in other languages, but assuming that that can be addressed, we will be able to understand to what extent competitors have, or have not, granted permits for sites. Obviously, that will allow us to suggest to our colleagues in Europe that enforcement action should perhaps be taken against sites that are not compliant with the new regulations. The new approach should create an easier mechanism for identifying where good practice has not been followed across Europe. Indeed, if our businesses play their part in complying with the new regulations, we will have an easier means of identifying across Europe those businesses that do not comply and can then bring them up to the right standard.

10:15

Claudia Beamish (South Scotland) (Lab)

Good morning, minister. I see from the clerk’s note that the consultation in September received 31 responses. Are you in a position to draw to the committee’s attention any concerns, such as about large sites, which could have a considerable impact on pollution in Scotland?

Paul Wheelhouse

I can confirm that the consultation took place from 12 September to 24 October. In general, respondents were content with the proposed approach to transposing the IED and with the associated consolidation of the previous regulations. Nothing emerged that significantly changed the draft regulations, but concerns and more general points were made about how the changes would take effect in practice.

One of the principal issues raised was how to influence the setting of the best available techniques—which I mentioned in response to Alex Fergusson’s question—or the standards that the EU will set. As I outlined to Mr Fergusson, SEPA intends to work with businesses, in particular those in industries such as the chemicals sector that feel themselves to be vulnerable to the changes, so that we can bring their expertise to bear at the EU level when setting the BATs.

Another concern was how the regulations will be implemented in practice here. As I said in my statement, SEPA will work with business to ensure that any new obligations are understood and are planned for. In some cases, businesses that will come under the regime for the first time will have until 2015 to implement the regulations, so we will have a period to assist them with understanding the implications and to ensure a smooth implementation process.

Another concern was why SEPA wants operators of activities that are newly subject to the regime to make their applications within certain timeframes. SEPA wants to ensure that the administrative burden is as manageable as possible both for businesses and for SEPA. Obviously, the regulations will bring in new sites that SEPA will then have to look after, and that will have an implication.

Having made a number of references to SEPA, perhaps I can ask Wendy Thornton whether she has any comments about the practical implications from SEPA’s point of view.

Wendy Thornton

One concern was the staged timetable, which is to help our workload. We chose the order of the groupings in the staged timetable so that we will have the majority of applications in early. That means that, if we have any problems with an application—which happens quite frequently—we will have more time to resolve it, so that we can ensure that people have the permit by 2015, as the directive requires.

For most existing plants, very little will change until the new BAT conclusions. As the minister has explained, we are trying to get more involved in the Commission’s technical working groups to influence what goes in the BAT conclusions. We will then have four years to put the requirements into operators’ permits, and over that period we will work closely with any operators affected. During next year, we are planning some industry engagement to help operators and to give them all the information that they need.

From a practical point of view, I think that we have addressed the concerns that were raised in the consultation.

Paul Wheelhouse

I might add that, in setting the BATs, we need to achieve something that is realistic. Rather than just agree a common baseline for everyone, we need to ensure that industry comments on what is realistic for industry, so that we take on board Mr Fergusson’s point about costs. Industry should have an opportunity to engage and to influence the decision so that we ensure that issues of cost, practicality and what can realistically be achieved within a given timescale are taken on board by the Commission.

Jim Hume (South Scotland) (LD)

Our clerk’s note refers to the business and regulatory impact assessment that was done, but we do not have a copy of it in front of us. Given your economic background, minister, can you tell us whether it was a positive or a negative economic assessment for Scotland as a whole, and to what degree it was such?

Paul Wheelhouse

I regret to inform the committee that I do not have the detail of the BRIA in front of me; shortly, I will ask George Burgess to comment on it. However, as I said, the consultation exercise revealed that some sectors, such as chemicals, had concerns about the potential rather than the actual costs for them, depending on what regulations were set. Generally though, there was a positive response to the consultation. I ask George Burgess to comment particularly on the BRIA.

George Burgess

The regulations will have little immediate direct effect, as has been said. That makes it impossible to identify what the longer-term effect will be, whether positive or negative. It will depend almost entirely on what emerges at the European level as part of the BAT process and on whether that will bring extra costs. We can ensure that the BRIA that was done is made available to the committee, but it does not set out in great detail the costs that businesses might face, because a lot of that will simply not emerge until further down the line when we all see the BAT conclusions at European level.

The Convener

We have been given a copy of the BRIA by the Subordinate Legislation Committee, so it is available for members here to read.

If members have no other questions for the minister, I have one that follows on from the BATs and so on. Clearly, regulations must be complied with. Are you satisfied, minister, that we have the people in place to ensure compliance? In fact, one wonders whether other countries will have the people in place to ensure compliance.

Paul Wheelhouse

I take your latter point on board. My knowledge of what regimes will be in place in other member states is not extensive. However, with the new industrial emissions directive and the BATs being pan-European, we will apply pressure where we can to ensure that other countries comply with the regulations. I think that that would be entirely fair. We will ask our businesses to take on board tighter regulations in many areas, although most businesses will not be directly affected, as George Burgess said. There is an expectation that we will put pressure on the Commission to ensure that the regulations are implemented across the whole of Europe.

On what is happening in Scotland, the consolidation exercise must happen anyway in the context of other measures that the Scottish Government is taking in respect of the remit and role of SEPA. As I think I have said to the committee before, we must ensure that SEPA’s efforts are targeted through a risk-based approach to its monitoring and enforcement actions. Its approach will therefore be to target the potentially larger polluters or those that have a history of non-compliance. I hope that that will ensure that, domestically, we focus on businesses that have failed to comply or that pose the greatest threat to the environment. That should take a little bit of pressure off the garage forecourts and the dry-cleaners of this world, because SEPA will use its resources and capabilities more to impact on the larger emitters or polluters. Where businesses comply, we can obviously take a slightly more relaxed approach. However, we will target our resources on businesses with a history of non-compliance and those that pose the greatest threat environmentally.

Therefore, I can assure the committee that SEPA is very much focused on ensuring that it tackles the sources of emission and pollution risks in Scotland. As for other nations, we will have to rely on the Commission to apply pressure on them to match our standards.

Richard Lyle (Central Scotland) (SNP)

Good morning, minister. I note from the cover note on the regulations that you have

“consulted on proposals for an integrated framework of environmental regulation”.

The note goes on to say that

“therefore ... the draft Regulations will be short-lived”.

How short-lived will they be?

Paul Wheelhouse

The coming into force of the new regulations in January will mark the start of an implementation process that will last several years. During that time, SEPA will maintain close dialogue with sectors that are affected in the interest of ensuring that any changes are practical and as smooth as possible.

I ask George Burgess to comment on the draft regulations.

George Burgess

I think that the term “short-lived” was one that I drafted at an earlier stage.

We expect to bring to the Parliament in the spring a bill on better regulation, which will create the powers under which we can bring together the pollution prevention and control regime—which we are considering today—and other environmental regulation regimes, such as those on waste management, releases to water and radioactive substances.

That bill will obviously take some time to work its way through the Parliament, so it will be at least 2014 before the fully integrated set of regulations that we envisage is in place. Therefore, the draft regulations will be short-lived, but not quite mayfly-like.

So they will be in force for two years.

As there are no further questions, we move on to item 2, which is consideration of motion S4M-05105, which asks the committee to recommend approval of the draft regulations.

Paul Wheelhouse

I thank the committee for considering the proposal.

I move,

That the Rural Affairs, Climate Change and Environment Committee recommends that the Pollution Prevention and Control (Scotland) Regulations 2012 [draft] be approved.

Motion agreed to.

Thank you very much, minister.

We will suspend briefly while we change over panels of witnesses for the next item.

10:27 Meeting suspended.

10:28 On resuming—