Carbon Capture and Storage (CCS) Offshore Transport and Storage Derek Saward Head, Environmental Management Team DECC EDU-OED

Offshore Licensing Energy Act 2008 Non-exclusive exploration licence to search for sites Covers all UK waters and will be the same as current Petroleum Act exploration licence and issued by DECC Licensee able to undertake geological survey operations, including shallow boreholes, but cannot drill wells Exclusive carbon storage licence to assess potential sites (agreement for lease from The Crown Estates required) DECC is licensing authority for UKCS adjacent to Scotland Scottish Government (SG) is licensing authority for Scottish territorial waters, except where the facility extends onto the UKCS Licensee able to undertake geological survey operations, drill trial wells and undertake trial injection operations

Energy Act - Storage Licensing Offshore Storage Facility Energy Act - Storage Licensing Exclusive storage permit allows construction, maintenance and operation of CCS storage facility DECC is licensing authority for UKCS adjacent to Scotland SG is the licensing authority for Scottish territorial waters, except where the facility extends onto the UKCS (point of injection may be used to determine appropriate authority) Different devolution arrangements apply for oil and gas and gas unloading and storage Construction, maintenance and operation outside the landward baseline of the territorial sea is exempted from FEPA Part II, and this will not change when the MCAA and the Marine (Scotland) Act come into force 3

Energy Act – Storage Decommissioning Offshore Storage Facility Energy Act – Storage Decommissioning Decommissioning of CCS installations under Section 30 of Act (preparation / approval of decommissioning programme) Licensing authority arrangements mirror the construction, maintenance and operation functions DECC is licensing authority for UKCS adjacent to Scotland SG is the licensing authority for Scottish territorial waters, except where the installation extends onto the UKCS Different devolution arrangements apply for oil and gas and gas unloading and storage Decommissioning functions do not qualify for exemption under FEPA Part II 4

Offshore Storage Facility FEPA Part II, Deposits in the Sea For non-reserved activities, FEPA is administered by the Scottish Government in Scottish internal and territorial waters and on the UKCS adjacent to Scotland SG would authorise construction and maintenance of CCS facility between MHWS and the landward baseline of the territorial sea, and authorise relevant decommissioning activity in internal and territorial waters and on UKCS Different devolution arrangements apply for oil and gas facilities and gas storage facilities (and for the other Devolved Authorities)

Coast Protection Act (CPA) Offshore Storage Facility Coast Protection Act (CPA) Covers all activities that could interfere with navigation Consent to locate required for all relevant functions relating to a storage facility that are authorised under the Energy Act or FEPA Part II The consenting authority will be the relevant licensing authority under the Energy Act or FEPA Part II When the MCAA and the Marine (Scotland) Act come into force, the relevant provisions of the CPA will be revoked, and Consents to Locate for activities authorised under the Energy Act will be issued under Part 4A of that Act When the MCAA and the Marine (Scotland) Act come into force, the relevant provisions of the CPA will be incorporated into the MCAA or Marine (Scotland) Act licence 6

Energy Act – Carbon Storage Permit DECC Permitting Process Energy Act – Carbon Storage Permit Guidance will be available on the DECC Oil and Gas website Application submitted to DECC, EDU-LED, CCS Field Team Developer must also seek a lease from The Crown Estates (TCE), and DECC and TCE will coordinate relevant approvals Application triggers request for Consent to Locate under Coast Protection Act Application must be supported by Environmental Impact Assessment (EIA) DECC liaises with other regulators, and consults on related applications (e.g. EIA) that don’t contain restricted information Application amended if necessary, but determination withheld Draft permit submitted to EC, who may give their views 7

Energy Act – Carbon Storage Permit DECC Permitting Process Energy Act – Carbon Storage Permit Internal DECC EDU consultation: OED, Offshore Decommissioning Unit OED, Environmental Management Team Related applications to other bodies: The Crown Estates Health and Safety Executive Related DECC applications subject to consultation: Coast Protection Act (CPA) Environmental Impact Assessment (EIA) CPA and EIA consultation and determinations are linked and determinations notified to LED CCS Field Team for inclusion in the sign-off of the permit 8

Environmental Regulations DECC Permitting Process Environmental Regulations DECC permit approval under the Energy Act would be underpinned by the following regulations: EIA Regulations, Habitats Regulations, Conservation Regulations and Chemicals Regulations (as per pipelines) Offshore Petroleum Activities (Oil Pollution Prevention and Control) Regulations Offshore Combustion Installations (Prevention and Control of Pollution) (Amendment) Regulations and Greenhouse Gas Emissions Trading Scheme Regulations Merchant Shipping (Oil Pollution Preparedness, Response Co-operation Convention) Regulations and Offshore Installations (Emergency Pollution Control) Regulations 9

DECC Environmental Process EIA Regulations Storage facility would normally be covered in the offshore Environmental Statement relating to the CCS project, to underpin the carbon permit application and satisfy the EIA and CPA requirements ES submitted to EMT, and subject to normal Public Notice and consultation Applicant required to respond to any representations and to provide supplementary information as directed by EMT A supplementary application for a Direction may be required prior to commissioning of the facility Determination of the ES and any application for a Direction is issued to the applicant, copied to interested parties and advertised on DECC Oil and Gas website and in the Gazettes 10

Habitats and Conservation Regulations DECC Environmental Process Habitats and Conservation Regulations Relevant habitats and species issues must be addressed in the EIA A site survey is required to identify any Annex I habitats or Annex II species and to assess potential impacts on those habitats and species The importance of the area for European Protected Species and, if relevant, the potential impact on those species (mortality, injury or disturbance) must be assessed The potential impact on the integrity of any protected site, and on its protected features or species, must be assessed DECC may be required to undertake an Appropriate Assessment to support its determination 11

EIA, Habitats, Species and CPA - Consultees DECC Environmental Process EIA, Habitats, Species and CPA - Consultees Internal DECC consultation: LED, CCS Field Team External consultation: MMO and/or DA (e.g. Marine Scotland Policy / Licensing) Chemical Advisers (Marine Scotland Science or CEFAS) Statutory Nature Conservation Bodies (e.g. JNCC and SNH) Ministry of Defence (Defence Estates) Hydrographic Office Maritime and Coastguard Agency (MCA) Light Authorities (NLB or Trinity House) Relevant Onshore Authorities Relevant Industries (e.g. BT, SFF, Port Authorities) 12

Chemicals Regulations DECC Environmental Process Chemicals Regulations The operation of the storage facility will inevitably involve the offshore operational use and/or discharge of chemicals, and a permit will be required under the Chemicals Regulations The chemicals must be certified for offshore use The application is submitted to EMT, and must include a chemical risk assessment, which is reviewed by Marine Scotland or CEFAS on behalf of DECC Determination of the application is issued to the applicant, copied to interested parties and advertised on DECC Oil and Gas website The operational use and/or discharge of chemical at the onshore facilities would be regulated by the relevant onshore authority (e.g. SEPA) 13

Oil Discharge Regulations DECC Environmental Process Oil Discharge Regulations Any offshore discharge of “oil”, with the exception of machinery space discharges authorised under Merchant Shipping Regulations, must be covered by a permit issued under the Oil Discharge Regulations (OPPC Regs) The Oil Discharge Permit application is submitted to the DECC Offshore Environmental Inspectorate The application is not subject to external consultation as the discharges must be separately assessed in the EIA (the permit application contains more detail in relation to the sources and treatment facilities) Determination of application is issued to the applicant, copied to interested parties and advertised on DECC Oil and Gas website 14

Atmospheric Emissions Regulations DECC Environmental Process Atmospheric Emissions Regulations If the aggregated thermal capacity of the combustion equipment installed on the facility is >20 MW(th), a permit is required under the Greenhouse Gas Emissions Trading Scheme Regulations (EU ETS Regs) If the aggregated thermal capacity is >50 MW(th), a permit is also required under the Offshore Combustion Installations (Prevention and Control of Pollution) Regulations (PPC Regs) Both applications submitted to EMT, and PPC applications must be advertised in the Gazettes (the emissions are assessed in the EIA, but the PPC and EU ETS applications contain more detail about the equipment and its operation) Determinations of applications are issued to the applicant, copied to interested parties and advertised on DECC Oil and Gas website 15

Contingency Planning Regulations DECC Environmental Process Contingency Planning Regulations All offshore facilities, including relevant pipeline systems, must be covered by an Oil Pollution Emergency Plan (OPEP) that satisfies the requirements of the Merchant Shipping (Oil Pollution Preparedness, Response Co-operation Convention) Regulations (OPRC Regs) and Offshore Installations (Emergency Pollution Control) Regulations (EPC Regs) The OPEP is submitted to the DECC Offshore Environmental Inspectorate The OPEP is subject to a 60 day consultation procedure, involving the MCA, the MMO and/or DA and relevant Statutory Nature Conservation Bodies Approval of OPEP is notified to the applicant and advertised on DECC Oil and Gas website 16

Energy Act - Drilling Activities Offshore Storage Wells Energy Act - Drilling Activities Separate approval is required for every trial or storage well DECC is licensing authority for UKCS adjacent to Scotland, and the assessment and approval process will be based on current procedures for oil and gas wells SG is the licensing authority for Scottish territorial waters (well location will determine appropriate authority) Different devolution arrangements apply for oil and gas, and gas storage CCS well operations outside Scottish territorial water are exempted from FEPA Part II (and the MCAA), but may be covered by the Marine (Scotland) Act in Scottish territorial waters 17

DECC Permitting Process Offshore Storage Wells DECC Permitting Process Guidance will be available on the DECC Oil and Gas website Well consent application submitted to DECC CCS Field Team Application must be supported by Environmental Impact Assessment (EIA) Application for EIA relating to a Mobile Drilling Unit (MoDU) would trigger request for Consent to Locate under Coast Protection Act Environmental approval process would also include assessment under Habitats Regulations, Conservation Regulations, Chemicals Regulations, Oil Discharge Regulations and Contingency Planning Regulations Environmental processes subject to consultation, and all DECC sign-offs coordinated (including HSE if appropriate) 18

Couldn’t be simpler - thank you Any enquiries – please e-mail emt@decc.gsi.gov.uk