Draft Environmental Permitting (England and Wales) (Amendment) Regulations 2018

(Limited Text - Ministerial Extracts only)

Monday 22nd January 2018 General Committees

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dr Thérèse Coffey)]

I beg to move,

That the Committee has considered the draft Environmental Permitting (England and Wales) (Amendment) Regulations 2018.

It is a pleasure to serve under your chairmanship, Mr McCabe.

There have been considerable improvements to air quality in recent decades, but we want and need to do more, particularly to bring nitrogen dioxide concentrations to within statutory limits. While actions from the 2017 air quality plan to tackle roadside concentrations are put into effect, we also need to look to other sectors to reduce air pollution, including the energy generation sector.

Through the regulations, we are addressing three matters. First, we will reduce emissions from medium combustion plants and generators, giving effect to the medium combustion plants directive, and going beyond what was agreed by us and other EU nations by introducing emission controls on highly polluting generators.

Secondly, the regulations allow fairer and more proportionate enforcement proceedings related to flooding. Following this amendment, if a landowner damages a river bank while undertaking works, the Environment Agency could accept an offer from them to repair the damage and ensure it does not happen again, rather than prosecuting them. This will reduce costs and speed up the process for businesses, farmers, the court system and the Environment Agency.

Thirdly, the regulations will help us to meet the legally binding limits we agreed through the ambient air quality directive and the agreed statutory targets in the revised national emissions ceilings directive. We estimate that the regulations alone will deliver 43% of the sulphur dioxide emissions reduction, 22% of the nitrogen oxides emissions reduction, and 9% of the reduction in particulate matter needed to meet our 2030 targets.

Medium combustion plants are commonly used to generate heat in hospitals, hotels, offices, prisons and other large buildings, as well as in industrial processes and power generation. The regulations will require new medium combustion plants to reduce emissions from 20 December 2018, and existing medium combustion plants to come within the permitting regime from 2024 or 2029—the deadline will depend on the size of the plant; larger plants must comply sooner than smaller plants.

However, the medium combustion plants directive does not sufficiently tackle pollution from small-scale, flexible generators, which can be highly polluting, and which have proliferated in recent years. That is why we are taking a tougher stance than required under the directive, and will tackle pollution from diesel generators, which emit on average six times the nitrogen oxides emitted by gas-powered engines. The regulations will require generators to be permitted and to meet a nitrogen oxides emission limit. New generators will need to comply from 1 January 2019. Existing generators and those providing certain services to National Grid will need to comply from a later date, depending on their size, emissions, operating hours and the duration of their agreements with National Grid.

We have gone further than the directive by requiring generators to reduce their emissions irrespective of the number of hours for which they operate; by ensuring that the most polluting generators comply with conditions necessary to protect local air quality from 1 October 2019, irrespective of whether they are classed as existing or new; and by taking a tougher stance on the conditions that must be met in order to benefit from transitional arrangements, and to keep those transitional arrangements. As a result, we will significantly improve the quality of the air we breathe.

I hope the Committee is unified. We believe that the draft regulations will deliver positive environmental benefits, and are a further demonstration of our commitment to improving air quality in this country. I commend them to the Committee.

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[Dr Coffey]

I welcome the hon. Lady’s support for what we are doing, and her questions. First, on flood risk, we needed to add certain provisions under section 61 of the Water Act 2014 to the schedule, and this only came into force in April, so we have been looking for an opportunity to present this. On how this activity will be undertaken, from my experience of working with the Environment Agency and landowners, these things are normally quite harmonious, but the Environment Agency would like these extra powers so that if things go wrong, it does not have to build a whole case and take it through to criminal proceedings. It is important that we have a good relationship with our businesses and farmers who undertake these activities, and that they are encouraged and motivated to do the right thing.

I am not aware of specific issues with regard to the impact assessment. I understand that the regulations are not considered to have a particular impact on businesses, but where there has been the odd example of an issue, the regulations will allow the Environment Agency to take appropriate, proportionate action more quickly.

I recognise what the hon. Lady says, and that is why is we are taking action to accelerate work on tackling air pollution from diesel generators. More than once, dare I say it, Governments have focused on a matter—prioritised tackling carbon, say—without necessarily fully considering or knowing about air quality issues. I recognise what she says, and that is why I am pleased that we have taken this action.

On the transition time, the long implementation period is justified because of the very large number of plants in scope. Many operators of these plants will not have previously been part of the environmental permitting regime. In effect, we are talking about raising awareness and getting people to make changes. We are talking about hospitals and schools, which will not be able to switch over suddenly. We believe that instead of seeing retrofitting, which is perhaps the quickest way to tackle some of these challenges, we will start to see wholesale plant replacement, and people will be able to deliver investment cases.

I recognise what the hon. Lady says on other issues, including compliance and bringing down sulphur dioxide, particulate matter and nitrogen oxide emissions. She will recognise that we are in contravention of one measure of NOx, and that is on roadside concentration limits. We are within statutory limits in all the other areas that she mentions. That said, she and I, and the House, are keen to ensure that where possible, we do things to improve, and alleviate the challenges of, air pollution, especially in situations like the present one, where we know that people can take abatement measures on existing equipment, or where we can provide an incentive to move to new equipment more quickly.

Do the regulations go far enough? We think that they do, and that they are proportionate. The hon. Lady asked whether things could move more quickly; I hope that I have explained why we think this is the appropriate pace. Back-up generators used to generate electricity for the National Grid fall under these controls where used only for genuine testing of up to 50 hours; at that point, there may be some exemptions. The industry has challenged us on why we are accelerating this transition. We are determined to take action, and that is why we are happy to stand up to those people who would like us to have an even longer arrangement, or to not have the transition. I am confident that if the regulations are agreed by this Committee, the House will wholeheartedly support the regulations tomorrow, as the Lords did. I expect them to be agreed in Wales tomorrow, too.

Question put and agreed to.