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

Lord Grantchester Excerpts

Monday 22nd January 2018 Lords Chamber

[Baroness Bakewell of Hardington Mandeville (LD)]

My Lords, I am grateful to the Minister for his helpful and constructive introduction to these regulations. As has been said, they bring into line medium combustion generators with larger ones. However, in applying these regulations to 1 to 50 megawatt generators, it has to be said that 50 megawatts would be capable of powering up to 8,000 homes. That is not a small undertaking and is therefore, quite rightly, worthy of regulation. This size is typical of the generators used, as the noble Lord has said, for a range of purposes including electricity generation, domestic and residential heating and cooling, providing heat and steam for industrial processes and so on. Generators of this capacity are inherently diesel or gas powered, and these regulations bring diesel down to the level of gas-powered generators.

The Government are rightly attempting to reduce the level of emissions in this country. Poor air quality is the largest environmental risk to public health in the UK. However, they are presently 10 years late in meeting air quality standards. Public health is at risk and there is no time to lose if the NHS is not to be overburdened with patients with respiratory problems. Government estimates show that in 2008, the number of deaths attributable to fine particulate matter—that is, poor air quality—was 29,000. In 2016, the Royal College of Physicians estimated that the cost of the health impacts of air pollution to the UK was £20 billion.

There are approximately 143,000 medium combustion plants in the European Union, with an estimated 30,000 in the UK. The increase in the use of such generators has been identified as a source of avoidable increases in national emissions. Many generator farms have been set up solely to sell electricity back to the national grid. While this is very enterprising, it is having an effect on the nation’s health. The National Audit Office identified in 2017 that the Government will not achieve compliance with EU limits on nitrogen dioxide until 2021, some 11 years later than the deadline of 2010. In 2016, more than 85% of air quality zones in the UK, 37 out of 43, did not meet EU nitrogen dioxide limits and government estimates show that all 43 air quality zones will not be compliant with the limits until 2026. The measures being taken today are a step in the right direction, but there is still much more to do, and faster.

While I am happy with agreeing to the regulations, I would like to raise a point about flooding. In paragraphs 7.9 and 7.10 of the Explanatory Memorandum, the regulations indicate that the Environment Agency can use enforcement undertakings for a number of activities. In those areas of the country prone to continual flooding, such as the Somerset Levels, householders and businesses are often flooded to varying degrees of depth. Many have standby generators to pump water out of their premises when levels do not subside in an acceptable timescale, and often much larger generators have to be brought in to ease widespread flooding. Will the Minister give a reassurance that in such cases, enforcement action would not be taken if the generator in use did not comply with the regulations we are approving today?

I fully support the move to improve air quality as indicated in the air quality strategy and agree that tackling the most polluting generators must come into line first. However, an FOI request in October 2017 revealed that the Government had spent £370,000 in unsuccessfully challenging two court claims that their plans to tackle air pollution were “illegally poor”. Was this a wise use of money and could it not have been better spent on tackling air pollution itself? It is important to ensure that enforcement powers not only continue to remain available to tackle pollutants, but that the culture shift we are beginning to see in government from defending flawed environmental policy to enabling and adequately funding the means to safeguard air quality moves ahead at a much faster pace. These regulations are a welcome step in the right direction and I support them.

[Lord Grantchester (Lab)]

My Lords, I thank the Minister for his introduction to the regulations before your Lordships’ House. I am also grateful to him for facilitating a meeting last week with his officials, Sejal Mahida, Andrew Baxter and Katie Doubleday, who explained many of the technical details and issues behind the regulations and the medium combustion plant directive.

Poor air quality is the biggest public health risk facing the UK. The Government’s slow and inadequate response to the situation has led to several infraction proceedings in the courts, brought by ClientEarth. As the noble Baroness, Lady Bakewell, has said, 29,000 people suffer prematurely due to problems from breathing poor-quality air. Children are also bearing the brunt of this air quality crisis, as the worst pollution hotspots often occur around schools due to the concentration of diesel fumes from vehicles discharging at idling speed at a low height, at which children are vulnerable.

The European Commission has recognised the seriousness of the situation and, from its review, published in 2013 the clean air package. It has issued various emissions directives concerning different sizes of plants. It is from the Government’s failures to meet air quality standards that ClientEarth has secured court rulings that the Government must bring forward and implement clean air strategies. It can be argued that this experience has highlighted the need to create an effective enforcement agency to assist Governments to meet their environmental responsibilities. It is to the Government’s credit that they have finally accepted this and will bring forward proposals for this new governance structure. Perhaps the Minister could say how the Government are developing their thoughts, what their proposals are and whether they will be ready by the time the UK leaves the EU.

It is to be recognised that the Government have consolidated previous amending instruments into the 2016 regulations. These regulations will continue the process of bringing these amendments into a single set of regulations. They will apply to combustion plants and generators, some of which will feed into the grid. There are 23,000 such plants and generators, which have proliferated in recent years.

Labour has been very critical of the Government for allowing polluting diesel to bid into the capacity market as this could be said to have contributed to the problem. Notwithstanding that Labour may not have allowed access to the capacity market, bearing in mind that both BEIS and National Grid are confident that there will continue to be sufficient liquidity and security of supply will be unaffected by this supply, it is nevertheless accepted that these amendment regulations fall outside the capacity market’s regulations and rules, and so are not strictly a relevant consideration and allow the capacity market the stance of technology neutrality. In allowing this diesel technology, it must comply with all the directives concerning emissions and air quality.

The important point highlighted by your Lordships’ Secondary Legislation Scrutiny Committee is that old and new combustion plants and generators must comply with the emission standards by the end of December 2018. This will avoid the unintended consequence that older diesel plants will not receive a competitive advantage from unabated emissions that new modern equipment has to adhere to. Labour supports the Government in that operators bidding for new agreements will need to meet the same emissions controls, irrespective of whether they are existing or new generators. In that sense it will be a level playing field.

I support the regulations before your Lordships’ House and welcome the early implementation of the higher standards being imposed from 2019. Indeed, from 2019 emissions will have to be reduced to the extent that emissions from diesel plants and generators will be on a par with gas. These amendment regulations will result in new agreements signing up to higher standards sooner. Existing and older plants will have to clean up sooner. It is recognised that the greater polluters—existing plants—are being tackled first to meet the standard achieved by newer plants.

While recognising that this will have an impact on several stakeholders, the explanatory documents underline the greater public benefit of air improvements, with savings to the National Health Service welcomed by several foundations including the heart and lung foundations. For this reason, we endorse the shorter timeframes coming into play and recognise that they will be significant in helping the UK meet its 2030 reduction targets.