Hot issues: manufacturing, materials, and environment unit newsletter. Issue 30: September 2007

High Level Group on Competitiveness, Energy, and the Environment (HLG-CEE)

International Conference: Towards a Low Carbon Global Economy
A draft of the ‘Towards a Low Carbon Global Economy’ conference is now available on the HLG-CEE website. Senior executives within industry who are interested in attending should arrange for their registration through this website and also inform Jessica Cull of their desire to attend.

Executives who would like to make a positive contribution to the conference by communicating initiatives within their own industry on how they are moving towards a low carbon operating format, or how they would be willing to engage in future schemes, should make this known to Jessica who can flag this to the European Commission – this might then secure an active participation slot.

The conference is designed to provide business with a voice on the climate change agenda ahead of the intergovernmental discussions taking place in Bali during December.

The HLG-CEE will also be providing two final reports on the EU role in brokering international action to address climate change and better regulatory approaches – together with a summary report of all of the HLG main recommendations since its creation at the end of 2005. The formal work of the HLG-CEE comes to a close in December 2007

Emissions Trading Scheme

The EU Emissions Trading Scheme is a community-wide scheme established for trading allowances to cover the emissions of greenhouse gases from permitted installations. Along with a number of other sectors, steel production is captured by the scheme, as are any combustion plants that have an aggregated thermal input of over 20MW. Phase I of the Scheme runs from 2005 to 2007 and Phase II from 2008 to 2012.

The European Commission (EC) is currently undertaking a review of the scheme to look into ways of improving the scheme post 2012. They have held stakeholder meetings with representatives from Member States, industry and NGOs, to discuss their priorities for the review, namely: scope; robust compliance and enforcement; harmonisation and increased predictability; and linking to other trading schemes around the world. These meetings have now concluded and the Commission will now be developing and drafting a legislative proposal which is expected to be published at the end of 2007. Reports from the stakeholder meetings, as well as economic analysis commissioned by the EC is available on their EU ETS Review website (see link below).

Following an informal consultation with stakeholders on key priorities in the spring, a further formal consultation is planned after the publication of the Commission’s legislative proposal at the end of the year.

Work is also continuing on the proposed inclusion of aviation into EU ETS. Responses to the March to June 07 consultation will help develop a UK negotiating position as the proposal progresses through the various legislative stages. More information on aviation inclusion in the EU ETS can be found on DEFRA’s website (see link below).

European Commission EU ETS Review

http://ec.europa.eu/environment/climat/emission/review_en.htm

DEFRA website: Aviation and the EU ETS

www.defra.gov.uk/environment/climatechange/trading/eu/future/aviation/index.htm

For further information please contact: Jessica Cull (MME) jessica.cull@berr.gsi.gov.uk

Energy meters to get smart and cut carbon and bills

SMART METERS in every home and business will play a crucial role in reducing the UK's carbon footprint and energy bills, according to Energy Minister Malcolm Wicks, speaking as he launched the Government's consultation on energy metering and billing. The consultation covers proposals to cut energy use through the roll-out of state-of-the-art smart meters and real-time visual display units to households and businesses.

The consultation proposals include:

• energy bills which contain more information to help consumers save energy, such as historical comparisons of their energy use
• real-time visual display units on any new meters fitted from 2008, and for any households that request them between 2008 and 2010
• smart meters for all but the smallest businesses over the next five years

Smart meters allow energy suppliers to communicate directly with customers, removing the need for meter readings. They tell people about their energy use through display units, or other ways such as internet and TV. Real-time display units show people how much energy they are using and how much it costs when individual appliances are turned on.

The consultation, which runs until 31 October 2007, also seeks views on the Government's expectation that all gas and electricity customers will be given smart meters over the next ten years. The consultation follows the recent announcement of energy-saving trials involving 40,000 households.

For further information on the consultation please visit:

www.berr.gov.uk/consultations/page40850.html

For further information on the trials please visit:

www.gnn.gov.uk/environment/fullDetail.asp?ReleaseID=298630&NewsAreaID=2&NavigatedFromDepartment=True

Intelligent water metering by 2020 – Yes or No?

The Intelligent Metering Initiative Seminar, held at the BERR Conference Centre on 12 September, was a forum to discuss issues relating to a R&D Customer Metering Roadmap and agree to form an embryonic Knowledge Integration Community to drive research and development. An initial vote from the sixty delegates did not solicit a single dissenter from the motion.

This reason was probably best expressed by the Environment Agency’s Trevor Bishop who said that full intelligent metering is an end point - it is just a question of how we get there and when. He informed the audience that the Agency now had statutory responsibility for the Water Resource Plans, a separate process to PR09, and a remit to consider least cost solutions of which metering is a significant factor. The issue of ‘how’ is dependent on how the industry might come together promote both research and activity.

Chaired by Mike Farrimond, director of UKWIR, the water companies’ collaborative research organisation, the meeting began and ended with unanimous shows of hands votes in favour of intelligent metering – but Farrimond’s call for financial rather than verbal support for UKWIR’s work in this area was met with rather less enthusiasm.

Chief among the barriers is a watertight business case to justify to the government and economic regulator Ofwat, the estimated £2.5 billion extra it would cost for a national rollout of smart rather than dumb meters.

Global Sustainability - The Future for Engineering Education Strategy Forum

Ian Pearson, Minister of State for Science and Innovation, recently gave a keynote address about the challenge for the next generation of engineers, while speaking at a major event in the Centenary Celebrations of Imperial College.

Addressing delegates from Industry, academia, civil society at 'Global Sustainability – the Future for Engineering Education Strategy Forum', Mr Pearson said that companies which are successful on the world stage are increasingly recognizing that resource efficiency and sustainable development are central to their competitiveness.

The successful companies of tomorrow will need engineers that can help them find ethical, environmentally sound solutions to the even tougher challenges to come. Whole production processes – engineered to minimize resource use (including energy) – and the move towards products designed to be recycled more easily is the way forward. These will be among the greatest challenges – and opportunities for engineers.

The forum is part of Imperial’s EnVision 2010 project - a major initiative by the Faculty of Engineering to promote excellence in teaching, learning and academic leadership. The strategy also aims to create improved learning environments and facilities for students and lecturers, and foster debate in the engineering community.

Delegates discussed the changes needed to ensure that the engineering graduate of the 21st Century is better equipped to take a leading role in identifying issues and designing solutions to address global issues.

Advance Allocation: Proposal on how to manage overseas spent nuclear fuel awaiting processing at Sellafield

This consultation deals with the Nuclear Decommissioning Authority’s proposal on how to manage overseas customers spent nuclear fuel awaiting reprocessing at Sellafield – specifically to allocate nuclear materials from UK stocks in advance of the actual recovery of the customers material from reprocessing.

The advance allocation consultation has been reopened.

www.berr.gov.uk/consultations/page39761.html

Hazardous Waste - H14 Ecotoxicity Assessment

Consultation to revise Hazardous Waste Technical Guidance WM2 (Interpretation of the definition and classification of hazardous waste). Assessment of Ecotoxicity is an important part of the hazardous waste assessment of many wastes. It is essential that the procedures used for this assessment are robust and technically sound to ensure that Ecotoxic wastes are correctly identified and appropriately managed.

The Environment Agency are proposing a revision of Appendix C14 to include additional elements of the Chemical (Hazard Information and Packaging for Supply) Regulations (CHIP) that were previously omitted from WM2.

Specifically this includes:-

• The use of substance specific thresholds to ensure that the properties of certain very Ecotoxic substances (for example pesticides) are considered.
• The adoption of trace impurity thresholds to reduce the number of trace compounds that have to be considered in calculations of Ecotoxicity for complex wastes.
• Further clarification of the application of animal testing to hazardous waste assessment of Ecotoxicity.
• Removal of the 50ppm threshold for Polychlorinated Biphenyls (PCBs). (This is because the 50 ppm threshold is based on the R33 risk phrase that is not considered for ecotoxicity. PCBs will now be covered by the R50-53 threshold of 2500 ppm)

The Agency intend to maintain alignment with CHIP in future. If CHIP is amended they will change Technical Guidance WM2 without further consultation.

www.environment-agency.gov.uk/yourenv/consultations/1851854/?version=1&lang=_e

Energy billing and metering: changing customer behaviour - a consultation on policies presented in the Energy White Paper

This consultation seeks views about the proposals on billing and metering and how they might best be taken forward to help customers reduce their energy consumption. It also discusses the implementation of the billing and metering aspects of the Energy Services Directive.

In particular, this consultation seeks views on:

• to promote awareness of domestic energy use through a requirement on energy suppliers to:
  • present consumption data, preferably in graphical form, on consumers’ bills to allow consumers to compare different periods of energy consumption.
  • provide real time display units to certain customers so that they can see in real time and in a way relevant to them how much electricity they are consuming.
• to require the installation of smart meters for business customers above a certain energy usage threshold, where it has been proven to be cost-effective.

www.berr.gov.uk/consultations/page40850.html

Draft second edition of IPPC SG6 for A2 activities in the Solvents sector

www.defra.gov.uk/corporate/consult/sgnote-solvents/index.htm

Building a Greener Future

This policy statement confirms the Government's intention for all new homes to be zero carbon by 2016 with a major progressive tightening of the energy efficiency building regulations - by 25% in 2010 and by 44% in 2013 - up to the zero carbon target in 2016.

The statement also responds to the key issues raised in responses to the consultation paper Building a Greener Future: Towards Zero Carbon Development.

The Regulatory Impact Assessment (RIA) assesses the costs and benefits of the measures set out in the policy statement

www.communities.gov.uk/publications/planningandbuilding/building-a-greener

www.communities.gov.uk/publications/planningandbuilding/final-regulatory

Standard Rules and Guidance for the Introduction of the Environmental Permitting Regulations

This consultation seeks views on the first sets of standard rules that the Environment Agency (EA) intend to make available when the Environmental Permitting (EP) Regulations are due to come into force in April 2008. They cover 28 low to medium risk activities that currently require a waste management licence, such as waste transfer stations and civic amenity sites. The EA are also consulting on associated documents - risk assessments, guidance on standard rules and permit templates.

The EP regulations will streamline and combine the existing Waste Management Licensing and Pollution Prevention and Control regimes. One of the most important changes will be the introduction of standard rules and standard permits.

Before the EA can introduce standard rules for a particular activity they must consult on a set of draft standard rules and this is the first such consultation. The EA will take account of the consultation responses and publish the standard rules on their website before the regulations come into force. Standard rules define how the operator must carry out the activity, for example by limiting the types of waste that can be brought onto the site.

www.environment-agency.gov.uk/yourenv/consultations/1853050/?version=1&lang=_e

Consultation on the implementation proposals of the Carbon Reduction Commitment (CRC)

In the Energy White Paper 2007, the Government announced its intention to consult on the detail of how the proposed UK Carbon Reduction Commitment (CRC) can best be implemented. This consultation invites views on how Government, including the Devolved Administrations, should implement the UK CRC, in order to secure the required emissions reductions.

Key issues for this consultation include:

• The proposed definition of a CRC organisation
• Coverage of specific activities and emissions
• Design of the auction and CRC league table
• Monitoring, reporting, audit and penalties

www.defra.gov.uk/corporate/consult/carbon-reduc/index.htm

Fourth Environmental Permitting Programme Consultation on Government Guidance for EU Directives and Waste Technical Competence

Environmental Permitting Guidance will be replacing existing lengthy guidance for the waste management licensing (WML) and pollution prevention and control (PPC) systems (except for activities regulated by local authorities where the existing General Guidance Manual will be updated to reflect the changes to the system) with an easy-to-read, concise piece of guidance.

It will be a simple, single reference point explaining how the new, streamlined Environmental Permitting Regulations work and, where possible, how they will be implemented.

This consultation provides the rest of the Government guidance package. It is seeking views on draft Government guidance on the requirements of EU Directives covered by EPP and on proposals for assessing technical competence of permit holders with waste operations.

www.defra.gov.uk/corporate/consult/envpermitprog4/index.htm

The future of nuclear power: the role of nuclear power in a low carbon UK economy

The Government is consulting on the future of nuclear power in the UK. BERR want you to take part in this. You can visit the interactive website where you can submit your response directly online.

The consultation seeks views on the information and arguments set out on whether the private sector should be allowed to build new nuclear power stations. BERR want to hear from members of the public, industry, non-Governmental organisations (NGOs) or any other organisation or public body.

BERR are seeking views on whether the Government has considered the relevant arguments; whether BERR have considered the arguments reasonably and whether there are other important arguments BERR have overlooked.

Your views will contribute to the shaping of the policy on the future of civil nuclear power in the UK. They will help Government assess the arguments before it reaches its final decision on the future of new nuclear build. BERR will consider carefully the responses it gets and this will enable BERR to take a decision on nuclear later in the year.

Technical consultations: Justification and Strategic Siting Assessment. Alongside this in-principle consultation there is a linked technical consultation on the details of running a Justification process and a Strategic Siting Assessment.

Homes for the future: more affordable, more sustainable - Housing Green Paper

Consultation on proposed EU Soil Framework Directive and initial Regulatory Impact Assessment

www.defra.gov.uk/corporate/consult/soil-directive/index.htm

Consultation on private sewers transfer – implementation options

In February 2007, the Government announced its intention to transfer ownership of private sewers and lateral drains to the statutory water and sewerage companies in England and Wales.

This consultation invites views on four options relating to the method of transfer together with questions on the scope of transfer and measures to prevent the proliferation of new private sewers and the recurrence of existing problems.

www.defra.gov.uk/corporate/consult/sewers-transfer/index.htm

Longer time limits for prosecution of breaches of Building Regulations - Consultation

www.communities.gov.uk/index.asp?id=1512082

The future of the Code for Sustainable Homes - Making a rating mandatory

The Code measures the sustainability of a new home. It went live in England as a voluntary standard in April 2007. This consultation document follows on from the positive response received to Building a Greener Future: Towards Zero Carbon Development, where we asked if rating against the Code should be mandatory. This consultation document explores this in more detail and seeks views on:

• making a rating against the Code mandatory for new homes
• the connection between the Code and Energy Performance Certificates
• using Home Information Packs (HIPs) as the mechanism for making the Code rating available to prospective buyers
• when DCLG should update the Code
• the future content of the Code, including introducing minimum standards for Lifetime Homes.

www.communities.gov.uk/index.asp?id=1511885

Consultation on the implementation of the European Pollutant Release and Transfer Register (E-PRTR) Regulation and the UN-ECE Protocol on Pollutant Release and Transfer Registers

For the reporting year 2007 onwards, the European Pollutant Emission Register (EPER) is replaced by the European Pollutant Release and Transfer Register (E-PRTR) Regulation, and with this transition comes a number of new reporting requirements. Most notably, data is required for several new industry sectors that fall outside the scope of the UK’s existing pollution inventories.

At the same time, as a signatory state to the PRTR Protocol, the UK is required to establish a national PRTR, as opposed to the separate inventories that currently exist.

This consultation document sets out and seeks views on proposals for extending the UK’s current PRTR capabilities in these and other ways. It does not however address the implementation of the E-PRTR Regulation in Scotland. This will be consulted on separately by the Scottish Executive. It is expected that the two consultations will run in parallel.

www.defra.gov.uk/corporate/consult/prtr-reg-implement/index.htm

The Future of the Wool Textile Industry Export Promotion Levy

Consultation on Energy End-Use Efficiency and Energy Services Directive 2006/32/EC

www.defra.gov.uk/corporate/consult/energyservices/index.htm

Consultation on the Aviation Emissions Cost Assessment

www.dft.gov.uk/consultations/open/emissioncostassessment/

Consultation on 'Recycle on the Go'

This consultation paper is issued by Defra, in association with Encams and Recycle Now. It proposes a voluntary code of practice and an associated good practice guide which are intended to help stimulate the provision of recycle bins in public places, and to facilitate good practice.

The measures contained in the consultation paper apply to England, and are voluntary.

The paper is principally concerned with how litter is collected for disposal or recycling in places that the public have access. The consultation underpins a commitment in the Waste Strategy for England 2007 on public place recycling.

The consultation paper seeks views on the proposed voluntary code of practice and the associated good practice guide.

Consultation on managing radioactive waste safely: a framework for implementing geological disposal

Following from the commitment to consult on how implementation of geological disposal of higher activity radioactive waste can be taken forward, the UK Government and the Welsh and Northern Irish devolved administrations have published a framework for the long term management of higher activity radioactive waste.

The Government is seeking views not only on the technical aspects of developing a disposal facility, but how we can engage most effectively with those communities that might have a potential interest in hosting the facility.

The consultation closes on: 2 November 2007

www.defra.gov.uk/corporate/consult/radwaste-framework/index.htm

Consultation on UK report regarding plans and programmes to meet EU air quality limit values (reporting year 2005)

This consultation document requests comments from interested parties on the UK Government and Devolved Administrations’ draft report to the European Commission on plans and programmes to meet EU ambient air quality limit values.

Under the Air Quality Framework Directive (1996/62/EC), where limit values, plus a margin of tolerance where applicable, are exceeded, a member state must produce plans and programmes to ensure compliance within the required timescale. Plans and programmes must be submitted to the European Commission no later than two years after the end of the year during which the exceedences were observed.

The consultation document concerns exceedences of EU limit values, plus margins of tolerance where applicable, for sulphur dioxide, nitrogen dioxide, and particulate matter in certain zones and agglomerations of the UK in the calendar year 2005. The relevant limit values for these pollutants are established by the First Air Quality Daughter Directive (1999/30/EC).

The plans and programmes included in the report represent existing Government polices for meeting the relevant EU air quality limit values; the plans are drawn in particular from the recently revised UK Air Quality Strategy. The comments received during the consultation will be considered in finalising the report for submission to the European Commission by the end of 2007.

www.defra.gov.uk/corporate/consult/air-limitvalues2005/index.htm

Consultation on the revised Code of Good Agricultural Practice to protect water, soil and air quality

Consultation on diffuse sources of water pollution from agriculture

www.defra.gov.uk/corporate/consult/waterpollution-diffuse/index.htm

Consultation on the implementation of the Nitrates Directive in England

This consultation invites views on:

• proposals for revised Action Programme measures to control pollution caused by nitrogen from agricultural sources.
• whether to apply these measures within discrete Nitrate Vulnerable Zones (as revised) or throughout the whole of England

The Department has recently completed reviews of both the extent of current Nitrate Vulnerable Zones and the effectiveness of the current Action Programme. The outcomes of these reviews are discussed in the consultation paper and form the basis of the above proposals.

This consultation is part of a wider process of engagement in the development of measures for tackling diffuse pollution from agriculture. The proposals are specifically aimed at meeting the requirements of the Nitrates Directive.

www.defra.gov.uk/corporate/consult/waterpollution-nitrates/index.htm

Electricity priority user arrangements: Proposals to update the priority user arrangements for use during an electricity supply emergency

The Government is consulting on the electricity priority user arrangements that exempt certain users from planned power cuts during an electricity supply emergency. These arrangements have not been updated for some time and we want to ensure that they are fit for purpose.

In the extremely unlikely event of a widespread disruption to the electricity supply, rota disconnections (where consumers are cut off in blocks for 3 hours at a time on a pre-planned rota) could be implemented. The priority user arrangements exempt certain categories of consumer from rota disconnections. They do not offer any protection in the event of a disruption to the electricity supply from the more usual causes e.g. severe weather or accidental damage.

The purpose of this consultation is to seek views on the proposals to bring the arrangements up to date, simplify them and improve their effectiveness in protecting those sites where the loss of electricity could have a significant impact on public health and safety.

www.dti.gov.uk/consultations/page40550.html

Consultation on the standardised reporting of radioactive discharges

The UK, in common with other EU Member States, regularly provides the European Commission with data on radioactive discharges in accordance with the requirements of Article 37 of the Euratom Treaty. In December 2003, the Commission published a Recommendation under Article 37 on standardised information on radioactive airborne and liquid discharges into the environment from nuclear power reactors and reprocessing plants in normal operation (2004/2/Euratom). The Government carried out a limited consultation by way of a questionnaire and stakeholder workshops during 2005.

The ultimate aim of the Recommendation is to standardise reporting across EU Member States, such that accurate and meaningful comparisons of discharges across the Community can be made. The UK's proposed approach is intended to establish reporting requirements on a secure statistical basis, such that instances of over- and under-reporting of radioactive discharges are minimised and to ensure that the regulatory approach across the UK and industry is consistent.

Responses are requested on specific questions contained within the body of the consultation document. In addition, Defra are particularly interested in any information on the costs and benefits that resulting from the implementation of these proposals. An initial impact assessment is included as an annex to the consultation document.

This consultation closes on: 23 November 2007

www.defra.gov.uk/corporate/consult/rad-discharges/index.htm

Changes to the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) Regulations SI 2006/1463

This consultation seeks views on the proposed replacement of the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment (RoHS) Regulations (SI 2006 / 1463) with a new set of RoHS Regulations.

The Department for Business, Enterprise & Regulatory Reform (BERR) is seeking the views of producers of electrical and electronic equipment (as defined in Regulation 3 of the Regulations) and others on proposed amendments in relation both to exempt applications and enforcement

www.berr.gov.uk/consultations/page41209.html

A Sustainable Construction Strategy

www.berr.gov.uk/consultations/page40642.html

Consultation on our proposed Environmental Protection charges for 2008/09

The EA review their charging schemes annually to ensure they are recovering their costs, and that their charges are as fair as possible. The EA consult with stakeholders before they make any changes to their schemes and their responses then form part of the submission to the Department for Environment, Food and Rural Affairs for approval in consultation with the Welsh Assembly Government and HM Treasury.

The EA are launching their annual charges consultation which sets out our proposals for the following charging schemes from the 1 April 2008:

Environmental Permitting (replacing Waste Management Licensing and Pollution Prevention and Control)
Radioactive Substances Act Regulation (RAS)
EU Emissions Trading Scheme (EU ETS)
Integrated Pollution Control (IPC).

Despite our estimate that inflation and new regulatory duties will increase our costs by 4.7%, through our ongoing efficiency savings the EA have kept the baseline increase to charges to 3.4%. This is below the current Retail Price Index of 3.8% (National Statistics, July 2007).

In addition the EA are proposing to introduce a new Environmental Permitting (EP) scheme to reflect the forthcoming Environmental Permitting Regulations. The EA also plan to introduce Release 1 of the Unified Charging Framework to support the new EP scheme.

The EA are also proposing a range of technical amendments, mostly as a result of the proposed EP scheme, but also to their RAS charges.

www.environment-agency.gov.uk/yourenv/consultations/1859693/

Summary of Significant Water Management Issues

This is our second River Basin Planning consultation under the Water Framework Directive.

This consultation sets out what we believe are the most significant issues that face each River Basin District. These issues are raised early in the process to give you time to consider how best to address them. The information and proposals may affect you, your environmental interests or your business, and we want to know what you think

www.environment-agency.gov.uk/yourenv/consultations/1830617/?version=1&lang=_e

Manufacturing Advisory Service (MAS)

The Manufacturing Advisory Service (MAS) plays a major role in providing UK manufacturers with the practical support they need to improve productivity and achieve success in an increasingly competitive global economy.

MAS owes much of its success to the strong partnership between BERR, RDA s and other key stakeholders who provide access to free (for SMEs) hands-on advice and assistance from professional experts. More than a third of firms have gone on to take up in-depth project work with the service at a subsidised rate, enabling them to achieve a competitive edge through adopting global best practice in manufacturing.

From April 2008, MAS will offer a greatly extended range of help and advice covering;

• Operational efficiencies beyond the shop floor to all aspects of manufacturing companies activities;
• Promoting innovation through implementing best practice in development and commercialisation of new products;
• Strategic planning and skills development;
• Sourcing materials, services and technology;
• Improving the performance and operation of the supply chain;
• Improved resource efficiency in both energy and waste

You can register with the national website to receive a regular e-newsletter in order to find out about recent news and forthcoming events involving MAS.

DIRECTOR
Robert Sullivan
0207 215 1474
robert.sullivan@berr.gsi.gov.uk

Manufacturing

Energy and Environment Policy

Sector Knowledge

Jessica Cull
Senior Policy Advisor
Energy and EU ETS
020 7 215 4121
jessica.cull@berr.gsi.gov.uk

Sue Hawker
MAS
020 7215 3849
Susan.hawker@berr.gsi.gov.uk