Environmental Legislation Update Peter Schofield Director and Principal Environmental Consultant M: 07920 194998 E: peters@gepenv.co.uk W: www.gepenv.co.uk

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Environmental Legislation Update Summary of Updates Legislative Updates Helpful Guidance What’s on the horizon?

Legislation Updates

Energy Saving Opportunities Scheme (ESOS) – an ongoing compliance programme? Applies to ‘large undertaking’ (>250 employees OR £44.8 million annual turnover and balance sheet of £38.6 million) The deadline for the second compliance period (Phase 2) is 5th December 2019. Most organisations select energy data that correlates with their Financial Year (so as of 1st April 2019 most organisations will be collating energy data) To be compliant: Appoint a registered ESOS Lead Assessor Calculate Total Energy Consumption (TEC) Conduct Energy Audits and a Transport Assessment may be required! Regulator (EA) notification must be submitted by 5th December

Streamlined Energy and Carbon Reporting (SECR) – a new reporting requirement? Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations SI 2018/1155 Applies to all UK registered quoted companies AND applies to ‘large’ UK unquoted companies which are defined as meeting at least two of the following criteria (>250 employees, £36 million turnover and balance sheet of £18 million) Applies from 1st April 2019 What do you need to do? Disclose an ‘Energy and Carbon Report’ Scope 1 and Scope 2 Greenhouse Gas Emissions Annual energy consumption (kWh) Energy efficiency measures taken in the last year This financial thresholds are LOWER than ESOS, so more organisations will be obligated to comply (up to 12,000!)

EU Emission Trading Scheme – a new taxation scheme? It could come into force if the UK leave the EU without a deal. If this happens… It would apply to holders of EU ETS Permits Power Generators Large industrial premises / manufacturers Some public sector facilities Apply from 1st April 2019 (?) with the first tax period ending 31 December 2019 Permits would still require carbon emissions reporting The carbon emissions tax would be collected by HMRC The purpose is to maintain a stable carbon price

CRC Energy Efficiency Scheme – end of an era (or a burden)? CRC Energy Efficiency Scheme (Revoked) Last reporting year is 2018/19 Last ‘CRC Annual Report’ to be submitted in July 2019 Last purchase of CRC allowances will be in the ‘buy to comply’ sale in June/July 2019 Need to be careful not to over purchase allowances as refunds are ‘discretionary’… How will the revenue from CRC be recovered after the scheme is closed?

Climate Change Levy (CCL) – an increase in utilities bills? Climate Change Levy (CCL) is a tax charged on energy consumed by businesses (incl. in bills) This will increase from 1st April 2019! Elec ↑45% and Gas ↑67%

Climate Change Levy (CCL) – possibility of exemptions? Climate Change Levy (CCL) exemptions are available – such as Climate Change Agreement (CCA) Exemption percentage (%) also increasing… But the CCA scheme has now closed to new entrants……(so we need to watch this space for a successor scheme)

Fluorinated Greenhouse Gases Regulations – fines in the air? Introduction of new civil penalties from £50k - £200k: £200k – intentional release of gases or failure to comply with enforcement notice £100k – breach of measures to minimise leakage £50K – failure to keep and maintain records Records can be kept by third parties Organisations must be able to present these in 28 days The Regulator in England is the Environment Agency

Helpful Guidance

Streamlined Energy and Carbon Reporting (SECR) – new guidance available Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting requirements Updated: 31 March 2019 Available from BEIS (Gov.UK) Updates include: Group reporting legislation; Public sector reporting requirements; Mandatory GHG reporting requirement; Confirmation that for those organisations choosing not to dual report (still our preferred approach), we encourage use of location-based reporting method.

New! Guidance for Pollution Prevention (GPP) - newly published GPPs GPP 2: Above ground oil storage tanks GPP 8: Safe storage and disposal of used oils GPP 20: Dewatering underground ducts and chambers GPP 21: Pollution incident response planning GPP 22: Dealing with spills GPP 26: Safe storage – Drums and intermediate bulk containers GPP 29: Micro-breweries and micro-distilleries GPPs Available from NetRegs Additional Guidance from Direct.Gov

New! ISO Standards - under review ISO 14064 – Part 1, Part 2 and Part 3 Used to report on Greenhouse Gases ISO 14064 – Part 1 Organisation GHG Inventory Updated in December 2019 ISO 14064 – Part 2: Project GHG Inventory Update due in April 2019 ISO 14064 – Part 3: Verifying GHG Statements

New! ISO Standards - under review ISO 50001:2018 Energy Management System (EnMS) Published in August 2018 Previous 2011 Standard will be withdrawn over 3 years In order to remain certified – organisations will need to transition to the enhanced requirements of the 2018 standard. New requirements relating to structure Good news for those with ISO 14001 or ISO 9001 – integration!

What’s on the horizon?

What’s on the horizon? - Brexit and Environment EU Withdrawal Act – Statutory Instruments (SIs) Statutory Instruments are being prepared for when the UK leaves the European Union on “exit day” As of 29 March 2019, there were approx. 115 Statutory Instruments that are “confirmed” and would come into force on “exit day” The purpose is to ensure continuity of legislation and make changes to redundant references This is developing daily….

What’s on the horizon? - Packaging Waste Consultation Consultation to improve the UKs waste management, from the production of plastic packaging to the waste plastic that needs to be recycled…this consultation includes: Plastic packaging tax Reforming the UK producer responsibility system for packaging waste Deposit Return Scheme for drink bottles and cans Waste and Recycling improvements across England Plastic packaging tax – would apply to all business that produce or import plastic packaging which uses less than 30% recycled content from April 2020. Reforming the UK producer responsibility system for packaging waste – proposed that the full net cost of managing packaging waste is placed on the producers of plastic packaging, consistent with extended producer responsibility and polluter pays principles. Deposit Return Scheme for drink bottles and cans - By ‘deposit return schemes’, we mean those where consumers pay an up-front deposit on an item – such as a sealed drink – at point of purchase, which is redeemed on return of the empty drinks container. The objective of a well-designed DRS is to make it easy for consumers to return drinks containers, which can then be reused or recycled, and to receive the deposit refund. Waste and Recycling - aims to ensure each local authority in England collects the same kind of recycling waste materials, as well as ensure separate food and garden waste collections.

What’s on the horizon? - Consultation on National Air Pollution Control Programme DEFRA is consulting on the implementation of the: UK Air Quality Strategy England Clean Air Strategy Air Quality Plan for NOx Other air quality related strategies The consultation seeks views on how the UK will meet legally binding emission reduction commitments for: nitrogen oxides (NOx); ammonia (NH3); particulate matter (PM); and sulphur dioxide (SO2).

That’s all for now… Peter Schofield Director and Principal Environmental Consultant M: 07920 194998 E: peters@gepenv.co.uk W: www.gepenv.co.uk