Environmental Permitting (England and Wales) (Amendment) Regulations 2015

Debate between Lord Grantchester and Duke of Montrose

Wednesday 4th February 2015 Grand Committee

[The Duke of Montrose (Con)]

I thank my noble friend the Minister for that good explanation. Is there a ready supply of these combined heat and power boilers within the United Kingdom or elsewhere to enable operators to fulfil the terms of the regulations?

[Lord Grantchester (Lab)]

My Lords, I am again indebted to the Minister for his excellent introduction to the regulations. Energy efficiency has a crucial impact on energy security across the whole of the United Kingdom. It forms part of the measures to reduce emissions to meet our greenhouse gas reduction targets and is a vital part of keeping energy costs down for everyone. The Minister’s department is to be commended on taking this initiative to amend the regulations to require operators to undertake a cost-benefit analysis of installations of cogeneration. Has the Minister any evidence that this was not happening previously?

I note that these regulations have been delayed past the deadline of June 2014 following consultations, and that therefore England and Wales are following the vanguard of regulations in Scotland and Northern Ireland. How do these regulations compare? Will these measures be applied consistently across the whole of the United Kingdom to further the attainment of the UK’s international emissions reductions targets?

The success of this measure will very much depend on the individual circumstances of each application. I note that there was extensive dialogue with affected operators during the consultation process, from which the Minister’s department has taken concerns on board in drafting these regulations. However, no details about this dialogue, or of the consultation, have been provided in the Explanatory Memorandum. Can the Minister give further clarification by providing an assessment of the likely uptake of cogeneration?

Of the estimated 18 gigawatts of electrical cogeneration potential in the UK, only 8.4 will be built by 2020. It would be helpful to understand the quantum by which that might be improved by this measure. I wondered whether the consultation process had given his department any feel for what it might be, even through no impact assessment has been provided, on the grounds that the outcomes are difficult to quantify.

Finally, the Explanatory Memorandum states that guidance, which has also been subject to public consultation, is being prepared by the Environment Agency. Could the Minister give the Committee any indication of when it might be made public as this omission is likely to prolong the delay before these regulations will produce benefits? Meanwhile, I am content to agree to the regulations.

Environmental Permitting (England and Wales) (Amendment) (England) Regulations 2015

Debate between Lord Grantchester and Duke of Montrose

Wednesday 4th February 2015 Grand Committee

[The Duke of Montrose (Con)]

My Lords, I thank the Minister for introducing this measure. I am most grateful to see that the regulations start off by allowing enforcement undertakings in the case of any infringement of pollution. I declare my interest as a farmer and I am looking at the subject from that angle. Of course, at the moment farmers who pollute or allow noxious substances to escape from their farms are subject to penalties under the common agricultural policy and the good agricultural and environmental condition standards. Farmers can be penalised by those, first; and secondly, the Environment Agency can impose penalties. Usually the idea is that a small penalty is imposed as a warning, but there is power to impose a very much heavier penalty. I am wondering whether these enforcement undertakings will work in tandem or whether they will be the opening gun of trying to enforce regulations when people are not complying properly and causing pollution or environmental damage.

[Lord Grantchester (Lab)]

Once again, the Minister has provided the Committee with an excellent introduction to, and explanation of, the regulations. The noble Duke, the Duke of Montrose, brought up the situation regarding farming and these regulations. In case there should be any anxieties, I declare my interest as an owner of a dairy farm. However, my reading of the regulations is that of the nine classes of regulated activity to which they pertain, none applies to dairy farming—except, possibly, the water discharge activity. It would be extremely helpful if the Minister could clarify the extent to which farming is affected by these regulations, and how they might work together with the regulations under the common agricultural policy.

The Minister has clarified that these regulations introduce no new requirements and make no changes to existing offences and existing enforcement mechanisms, but merely allow the Environment Agency to accept enforcement undertakings when they are on offer. I agree that the order is constructive in that it allows the Environment Agency greater flexibility in its approach to transgressions, and follows his department’s Fairer and Better Environmental Enforcement review, which was initiated by the previous Labour Government. The regulations will make a positive addition to the Environment Agency’s ability to do its job well. The benefits to society include giving priority to restoration of harm ahead of criminal convictions.

The Explanatory Memorandum states, with regard to guidance, that the department will write to the Environment Agency setting out the expectation of how these enforcement undertakings will be used to ensure that enforcement is in accordance with Better Regulation principles. Will the Minister update the Committee on this progress? When does he expect that the Environment Agency will be able to publish its guidance on enforcement matters?

As the Minister explained, the Explanatory Memorandum provides no impact assessment, on the basis that the order has no impact on business or other organisations unless they fail to comply with the law. However, this was the subject of extensive discussions in the other place. The changes proposed in 2010 would have significantly reduced costs to both the Environment Agency and Natural England. As the Minister said, at the very least the order will help to free up the Environment Agency’s time.

In addition, since 2010 it is understood that consideration has been given to costs recovery. Did the Minister’s department give any consideration to recovery of the Environment Agency’s costs for monitoring and administering the new enforcement undertakings element of the order? Will he confirm that the Environment Agency can recover its costs from the order? The reply of the Minister in the other place rather missed the point to a certain extent, in his statement that it has no effect on business. It should surely be possible to produce an impact assessment on the benefits to business in this Better Regulation measure. After all, it is the aim of Better Regulation to bring benefits.

Finally, the ability to quantify the value of ecosystem services has also developed greatly since 2010. Are the Government able to give an estimate of the ecosystem services benefit of the increased compliance resulting from this change? I would be very grateful if the Minister could clarify his department’s approach to the benefits of this order.