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Environmental Regulation and Business Strategy in the UK - Essay Example

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This essay "Environmental Regulation and Business Strategy in the UK" focuses on an important component of the permit-granting process, more so if a proposed installation poses or is perceived to pose adverse risks to human health. This was duly recognized by the PPC Regulations…
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Environmental Regulation and Business Strategy in the UK
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?Environmental Regulatory Aspects in Building a Waste-to-Energy Incineration Plant Background Waste management is a concern in most countries, especially the industrialized ones, in the world. Every household and business produces waste, and with resources becoming limited and global warming a reality, waste has to be managed efficiently. In Scotland, waste recycling is increasing, but wastes that cannot be recycled are customarily deposited to landfills, which are almost fully maximized. The Zero Waste Plan of Scotland recommends ways to ensure the maximum recycling of waste (Zero Waste Scotland and Scottish Environment Protection Agency, 2010). The plan also espouses the maximization of the remaining waste by utilizing its energy through waste-to-energy incineration plants. Electrical/and or heat energy can be produced by burning or incineration of wastes (Scottish Environment Protection Agency, 2011). This is an aspect of concern because the burning of solid and liquid material will produce mixtures of solid and gaseous emission like heavy metals, dioxins, particulates, ash residues, and acidic gases. An incineration plant refers to the technical unit and equipment that are dedicated for the purpose of burning or thermal treatment of waste material and in so doing, produce combustion heat (Council Directive 2008/1/EC of the European Parliament and of the European Council ). The definition for the incineration plant includes the site, incineration lines, waste reception, waste storage, fuel and air supplies, post-treatment areas for exhaust gases, waste and wastewater, and all other facilities and devices for control and monitoring the operations in incineration. Incineration of waste is achieved by oxidation, pyrolysis, and gasification. Strictly speaking, the energy produced by the incineration of waste materials cannot be considered renewable energy, but it can replace and supplement the energy that is sourced from fossil fuels like oil and coil, natural gas, and other renewable sources. As stated by the Scottish Planning Policy 6 on renewable energy, the energy derived from waste can help Scotland meet its targets for increasing electricity derived from renewable energy sources (Scottish Development Executive Department, 1997). Energy from waste is therefore considered a part of the response to climate change towards sustainable development. The Renewables Obligation gives incentives to suppliers of electricity to obtain electrical energy from renewable sources (Renewables Obligation, 2007). In Scotland, the Renewables Obligation, and the Renewables Obligation Order were enforced on April 2002. The schemes were introduced by the Scottish Executive and the Department of Enterprise and Trade, and are administered by the Gas and Electricity Markets Authority. The Renewable Orders set the amount of electricity from renewable sources to 5.5% and 6.7% in 2005-2006, and 2006-2007 respectively. In 2009, the Scottish government published the Renewables Action Plan, which committed the country to achieving 20% energy coming from renewable sources by 2020, which also meant that there must be a large increase in the energy derived from the heat (11% increase) and transport sectors (10% increase) (The Scottish Government, 2009). In the Renewables Obligation (Scotland) Amendment Order of 2011 which was enforced in April 2011, waste materials were already included as renewable energy sources. According to SEPA, incineration can be considered compatible with high recycling rates, which is also highly dependent on the segregation of wastes. Energy can be recovered from residual waste that cannot be recycled due to economic and technical reasons. Despite the economic crisis, the practice of waste incineration has risen worldwide (ecoprog/Fraunhofer UMSICHT, 2010). In the last decade, the annual global capacity of the incineration plants increased from 180 to 350 million tonnes. This can further rise by 20% in the next five years. It is further expected that with landfill sites decreasing, new plants will be constructed in metropolitan areas. Results of a recent study by ecoprog and Fraunhofer UMSICHT showed that in 2010, more than four hundred twenty new plants are being planned or under construction worldwide. This is in addition to more than 2000 plants currently in operation. Due to the reduction in landfills, the Scotland and UK governments want to utilise the maximum energy recovery from residual waste that cannot be recycled and hence will go to landfills (Defra, 2007). Energy can be recovered via anaerobic digestion and/or combustion. Defra projects an increase in energy recovery from municipal and household wastes combined of 25% by 2020. Recovering energy from wastes is at par with high recycling rates, and that waste-to-energy actions are better than utilizing landfills. According to the waste data strategy for Scotland report, since 2000 there has been a significant reduction of 58% of the amount of waste sent to landfill and increase from 5-37% in municipal waste that was recycled or composted (Zero Waste Scotland and Scottish Environment Protection Agency, 2010). Despite these efforts, the total controlled waste in Scotland was still 19.5 million tons, where ~11 tons represent commercial waste and ~3 tons are from households. There is limited data for the waste that leaves Scotland. The Scottish waste management flow can be simplified into three paths: from the waste producer to the transfer of waste to landfills, incineration, and recycling (Zero Waste Scotland and Scottish Environment Protection Agency, 2010). The waste that arises in Scotland goes to 1100 licensed waste management sites that are regulated by SEPA. The sites submit reports on the amount and type of waste they handle. However, the reports do not give the origin of the waste, nor information on the transformation of the wastes to other forms if ever transformation was carried out. This makes the quantification and identification of recycled waste difficult, more so since the licensed sites are permitted to carry out more than one waste management activity (Zero Waste Scotland and Scottish Environment Protection Agency, 2010). Core policies governing operations of incineration plants The amounts of possible pollutants coming from incineration plants are the major consideration in waste-to-energy endeavours. According to the International Agency for Research on Cancer and the World Health Organisation, some of the emissions like polycyclic aromatic hydrocarbons (PAHs) can cause cancer (Council Directive 2000/76/EC of the European Parliament and of the European Council). European Union member states set their own emission limit values for air pollutants. Based on the Directive 2000/76/EC of the European Parliament and of the European Council, minimum requirements for incineration plants have been set. The directive also states that the European Community policy on environment should contribute to protecting human health, which should entail setting up and maintaining strict conditions for operation. Stringent technical requirements and emission limits should be set for waste incinerators operating within the European Union member states. The basis for the regulation regarding environmental pollution is the Integrated Pollution Prevention and Control (IPPC) Directive (96/61/EC) (Environment Agency, 2011). Initiated in 1996, it was fully implemented in October 2007 in EU member states. The directive covers waste disposal by landfill, waste treatment, and storage facilities that deal daily with more than 10 tonnes hazardous waste, facilities treating more than 50 tonnes non-hazardous wastes daily and hazardous waste recovery facilities. In the European Union, approximately fifty-two thousand facilities are covered by the IPPC. The IPPC Directive was implemented in Wales and England through the Pollution Prevention and Control (England and Wales) Regulations 2000. This was replaced by the Environmental Permitting Regulations 2007. In Scotland, the IPPC Directive was implemented through the Pollution Prevention and Control (Scotland) Regulations 2000 (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000), also otherwise known as ‘PPC’ (Scottish Environment Protection Agency, 2011). A list of legislation and guidelines from the European Commission are available online (European Commission, 2010). A more integrated approach to pollution control from industrial sources was introduced by the PPC (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000). The major aim was to achieve a high degree of environmental protection by regulations and actions that are geared towards preventing, or if not possible, reducing air, water and land emissions. Part A activities, those that refer to industrial scale installations, form the basis for the definition of emission as the ““the direct or indirect release of substances, vibration, heat or noise from individual or diffuse sources in an installation into the air, water or land” (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000). The PPC sets regulatory limits for emissions and quality standards, promotes techniques for waste reduction and efficient use of energy and raw materials. Moreover, the PPC considers the risks of accidents that could affect the environment; a plan for reducing accident risks could be a determinant in approving an operators’ permit application. PPC also ensures that a site is returned to its original state after an incineration plant has been closed. The overall aim of the PPC is to improve the efficiency and effectiveness of pollution control, strengthen the regulatory system, increase public confidence on the regulatory system, provide a framework that can respond to changing pollution prevention and control techniques, and provide support towards fulfilment of international environmental protection obligations (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000). Within the framework of its overall objective, operators who apply for a PPC permit have to meet stringent requirements (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000). The proposed plant should be able to meet the emission limit values (ELVs) to prevent or reduce emissions based on the assessment of Best Available Techniques (BAT). Operators have to take responsibility for potential environmental problems that may arise. Furthermore, applicants should conduct environmental impact assessment as well as propose means for preventing or minimizing adverse environmental effects. Plant operators have to take into consideration Environmental Quality Standards (EQSs). During operation, the plants may be required to perform beyond the BAT standard to ensure that no accidents occur that may harm the environment. Measures to prevent potential accidents should be specified clearly in the application for the permit. The regulatory requirements set by the PPC serve as the guiding principle of the Environmental Agency (2011) in regulating the performance of waste-to-energy plants. The Agency continuously monitors the concentrations of particulate matter, and gaseous pollutants such as volatile organic compounds, carbon monoxide, hydrogen chloride, nitrogen oxides and sulphur dioxide (Environment Agency, 2011). Yearly and twice yearly monitoring are conducted to check the levels of hazardous pollutants polyaromatic hydrocarbons, heavy metals, polychlorinated biphenyls, and hydrogen fluoride. Sites are also inspected regularly for compliance with the regulatory requirements. The Thermal Treatment of Waste Guideline 2009 of Scotland describe the expectations from operators, developers and other key stakeholders in compliance with the planning objectives of Scotland Environment Protection Agency (SEPA) and the policies on waste of the Scottish Government. The new guidelines updated and replaced the SEPA’s Guidelines for Thermal Treatment of Municipal Waste that was published in August 2004 (Scottish Environment Protection Agency, 2009). It presents SEPA’s approach to giving permits to facilities for the thermal treatment of waste facilities based on Scotland’s policies for waste management. In addition, the guidelines advise on the types of information that is required by SEPA when it determines granting of environmental licences for facilities for energy recovery. The guidelines state that all thermal treatment plants utilized for recovering energy from wastes should only treat waste that remain after the recyclable materials have been extracted, either before or after delivery to the plant. This ensures that recycling efforts are not impeded, and waste prevention is encouraged. Thermal treatment plants are also required to be a part of a larger integrated network of other waste management facilities that are involved in composting and recycling. This means that the thermal treatment is the end-of-the-line of the waste management effort. Energy in the form of heat or electricity derived from waste should be recovered and used efficiently. Aside from waste treatment by incineration, these guidelines also apply to other current and potential thermal recovery processes (i.e. pyrolysis, gasification, and gas-phase anaerobic digestion). Overview of the permit application process An operator who wishes to put up an industrial scale incineration plant has to follow the regulatory requirements set by the PPC (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000) for Part A activities (for industrial-scale facilities). The permit application procedure begins with the operator’s submission to Scottish Environment Protection Agency (SEPA) of a formal application. This application must contain sufficient information on the necessary issues that will enable SEPA to judge if the application is in accordance with the regulations of SEPA. Once SEPA determined that the application is needs improvement, or is insufficient, it is returned to the applicant for modification or clarification of issues. By legislation, SEPA is identified to be a “key agency”. It cooperates with authorities in planning development strategies, and thus it has an obligation to comment on policies and proposals on matters relation to thermal treatment of waste. As a consultee on environmental matters pertaining to waste treatment plants, the SEPA has to examine the different factors that affect the operations of thermal treatment plants (Scottish Environmental Protection Agency, 2009). Potential applicants should approach SEPA during proposal preparation to discuss the licensing requirements, to ensure that the proper application requirements are met. As the principal authority in the licensing of thermal treatment plants, the SEPA checks if the BAT or best available techniques have been considered and that the detailed plan for energy recovery is efficient and follows the Quality Assurance Scheme for Combined Heat and Power. Moreover, SEPA will check if the emissions will not adversely affect human health and the environment, the design of the plant suits the kind of wastes to be treated, and that generated wastes are minimized and will not cause harm to environment and human health. The environmental licensing policy for waste thermal treatment plants from SEPA gives the details of the licensing requirements for waste thermal treatment plants depending on the size and nature of the waste to be treated. Since SEPA believes that energy recovery and efficiency are major factors for consideration due to consequent carbon reduction, these should be considered early in the permit application stage, especially when applying for Part A permit. Operator applicants should show that the methods they propose are appropriate and that heat and electrical energy can be recovered efficiently. Once the application is deemed acceptable, then SEPA distributes it to several consultees for review. The applicant should also advertise or publish the application in order to invite public consultation. The PPC sets the process of consultation, but SEPA can also undertake its own process, if it chooses. The application is published on a public register by SEPA. If SEPA decides that additional information may be necessary for approving the permit application, it will ask the applicant to provide this information within a certain period. If the operator fails to comply within the required period, SEPA may declare that the application as withdrawn. On the other hand, when all the requirements have been met, SEPA will consider the full application, the comments, suggestions, and recommendation from the consultees, and other factors like the result of the public consultation. SEPA then drafts the permit, containing all the conditions for the compliance of the requirements of the PPC Regulations. Operators are required to perform self-monitoring of emissions, and provide data to SEPA, although SEPA also conducts its own monitoring. SEPA also ensures that the installation will comply with the permit conditions. Changes in the manner in which the installation operates will necessitate change in permit. Transfer, variation, and changes in permits are laid out in the PPC regulations. If a permit is surrendered as in the case when the installation has to stop operations, an application for such should also be made. This application, also submitted to SEPA, should contain a description of the site’s condition, specifically those that have occurred during the permit application was made. The application should also describe ways in which pollution was avoided, and steps taken to return the site to a satisfactory state. Update on the environmental permitting regulations On April 6, 2008, the Environmental Permitting Regulations was effected throughout the UK. These regulations replaced and extended the scope of the PPC Regulations 2000. The main aim of the new regulations remains the same: to authorize industrial processes and the waste industry that could have an important impact on the environment. A PPC permit automatically becomes an Environmental Permit with the same reference number. An IPPC permit and a Waste Management Licence will merge into one Environmental Permit. New installations should get the permit before operations begin since it is considered a criminal offence to operate before a permit is granted. Public consultation Public consultation is an important component of the permit-granting process, more so if a proposed installation poses or is perceived to pose adverse risks to human health. This was duly recognized by the PPC Regulations, which set the public consultation process as another requirement for the application of new permits. Four types of consultation may be conducted; of these, two are statutory, while the other two depend on the circumstances. Consultations with the public and statutory consultees are always required. The other two are consultation with Member States of EU and landowners when necessitated by the circumstances. Public consultation aims to inform the public regarding the application, and to provide the public with access to the application data. The statutory consultations will also provide facts and opinions that SEPA is unaware of, and which can help in determining the outcome of the application. Applicants are required to advertise their application in a local newspaper and the Edinburgh Gazette beginning on the 14th day after the application has been submitted (Scottish Environment Protection Agency, 2011). Members of the public can examine the application and give comments with 28 days after the advertisement date. Under the PPC, SEPA is also required to maintain a register where the public can properly access applications and the status of applications for environmental permits. Electronic registers can be maintained, however, SEPA should ensure assistance to members of the public to access these. The register must contain the details of all permit applications, and should include comments and SEPA’s request for further information, if any. Furthermore, the responses of the applicants, any advertised material, and comments of reviewers should also be posted. In addition, approval of permits by SEPA, revocations, transfers, surrender and variation of any permit should also be made available. Enforcement or suspension of the permit, and appeals by the operator to the contrary must be published, together with any action with respect to the appeal. Results of monitoring activities by the SEPA should be disclosed in writing, and any information of update on the license granted by SEPA is to be made available to the public (Scottish Executive Environment, Rural Affairs Department, and SEPA, 2000). The information on the registry will help the public to keep updated on the regulatory compliance and operational guidelines for the operation of waste-to-energy incineration plants. The public therefore should make full use of the opportunity to have their views, concerns, and opinions heard, and in so doing will they will have a voice in the permit-granting process. References Defra (2007) Environment [Internet], Department for Environment, Food and Rural Affairs, UK. Available from: [Accessed 28 April 2011]. ecoprog/Fraunhofer UMSICHT (2010) Waste to energy:the worldwide market for waste incineration plants 2010/2011. Cologne/Oberhausen,ecoprog GmbH. Environment Agency (2011) IPCC Waste Treatment and Storage [Internet], Environment Agency. Available from < http://www.environment-agency.gov.uk/business/sectors/32451.aspx> [Accessed 27 April2011]. Environment Agency (2011) Position Statement [Internet], Environment Agency. Available from [Accessed 28 April 2011]. European Commission (2010) Environment [Internet], European Commission. Available from [Accessed 26 April 2011]. Ofgem 92007) Renewables Obligation [Internet], Ofgem (Office of Gas and Electricity Markets). Available from [Accessed 30 April 2011]. Scottish Environment Protection Agency (2011) Improving air quality [Internet]. Scottish Environment Protection Agency. Available from [Accessed 28 April 2011]. Scottish Development Executive Department (1997) Scottish Planning Policy 6: Renewable Energy. Crown. Scottish Environment Protection Agency (2011) Public participation in Part A activities [Internet], Scottish Environment Protection Agency. Available from [Accessed 27 April 2011]. Scottish Environment Protection Agency (2009).Thermal treatment of waste guidelines 2009. Scottish Environmental Protection Agency. Scottish Environment Protection Agency (2011) Waste information [Internet], Scottish Environment Protection Agency. Available from [Accessed 27 April 2011]. Scottish Executive and the Scottish Environment Protection Agency (2005) Waste Incineration (Scotland) Regulations 2003. Practical guidance: Edition 2. Edinburgh, Scottish Executive. Scottish Executive Environment, Rural Affairs Department, and SEPA. (2000). The pollution prevention and control (Scotland) regulations 2000. A practical guide. Scottish Environment Protection Agency. Council Directive 2008/1/EC of the European Parliament and of the Council as of 15 January 2008 concerning integrated pollution prevention and control (codifed version). Council Directive 2000/76/EC of the European Parliament and of the Council as of 4 December 2000 on the incineration of waste. The Renewables Obligation (Scotland) Amendment Order 2011: Draft Order. Scotland. The Scottish Government (2009) Renewables Action Plan: Renewable Energy Divsion. Scotland, The Scottish Government. Zero Waste Scotland and Scottish Environment Protection Agency (2010) Consultation on a waste data strategy for Scotland. Stirling, Scottish Environment Protection Agency. Read More
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