1. Lynne McNaughton – Specialist II National Carbon Reduction Unit
SEPA’s Role in ESOS
Lynne McNaughton –
Specialist II
National Carbon Reduction Unit
Brief Introduction – Regulated by NCRU, 6 members in the team covering ESOS, CRC and EU ETS – ESOS contacts 6

2. Objectives What is SEPA’s role in the ESOS Regulations?
What measures may be used to ensure the Regulations are fulfilled?
Where can I get further advice relating to compliance?
Hopefully be the end of this short presentation you will understand what SEPA’s role is in the ESOS Regulations, how we will ensure that the requirements of the Regulations are fulfilled and where you can get more information should you need it.

3. What is SEPA’s Role?
SEPA is the Compliance Body for participants registered in Scotland:
Responsible for monitoring compliance in Scotland;
The Environment Agency is the UK Scheme Administrator:
Responsible for the system for notification of compliance for all UK participants;
For approving competence of lead assessor registers
SEPA IS THE ENVIRONMENTAL REGULATOR FOR SCOTLAND, BUT SOME OFFSHORE ACTIVITY IN SCOTLAND WILL BE COVERED BY DECC.
The Environment Agency is the UK scheme administrator amongst other things, they are responsible for the notification system for the whole of the UK as well as the approval of lead assessor registers;
SEPA as the compliance body in Scotland
WILL TAKE STEPS TO MONITOR COMPLIANCE WITH THE SCHEME BY CONDUCTING FOLLOW UP-WORK WITH COMPANIES UP TO AND AFTER THE COMPLIANCE DEADLINE.

4. What tools can SEPA use?
Use of letters & notices to seek information and compliance;
Inspection of premises;
SEPA intends to carry out a number of inspections over the compliance period
In monitoring compliance with the regulations, there are a number of tools available. SEPA has the power to carry out inspections of premises and ask to review any paperwork which may assist in checking compliance with the ESOS regulations.
SEPA may use verbal requests, s, letters or statutory notices to seek information and ask for steps to be taken to secure compliance with the Regulations.
SEPA are currently undertaking follow up reviews of companies compliance following data collated by the Environment Agency. This will be carried on throughout the compliance phase and may involve site visits or requests to access the ESOS evidence pack.

5. What tools can SEPA use?
SEPA uses its Enforcement Policy when considering actions to secure compliance with any Regulations.
There are a number of tools available:
Advice/Guidance
Warning Letters
Statutory Notices
Civil Penalties
Where any non-compliance with the Regulations is identified SEPA will use its Enforcement policy when considering what the best option is to bring a company back into compliance.
The tools available relating to ESOS might involve advice/guidance, warning letters as well as statutory notices and civil penalties. The ESOS regulations do not include reference to criminal prosecution. SEPA will ensure that it assesses any non-compliance on a case by case basis, however, civil penalties are likely considered as a last resort in making sure companies comply with ESOS.

6. What tools can SEPA use? Serve Compliance Notices (Regulation 35)
Requesting information from a Responsible Undertaking to check compliance;
Enforcement Notices (Regulation 38)
Stipulating steps to be taken to comply
Penalty Notices (Regulation 39)
Imposes civil penalties for breaches of ESOS Regulations.
The ESOS Regulations contain a number of specific enforcement measures to both get information to assess compliance, request measures to be taken or impose a punitive penalty for non-compliance.
These are in the form of notices and include Compliance Notices, Enforcement Notice and Civil Penalty notices. However, SEPA has discretion in choosing to waive, reduce or modify a civil penalty.
Where a penalty is served this will be published on the SEPA website.
-Failure to comply with the notice or supplying incomplete information allows SEPA to determine the information requested;

7. Specific Non-Compliances
Failure to notify the EA by deadline (5 Dec 2015)
Failure to maintain records;
Failure to undertake an ESOS assessment;
Failure to comply with a notice;
Giving false or misleading information;
There are specific non-compliances within the ESOS regulations which may result in any of these tools being used –
These are:
Failure to notify by the deadline – the penalty if applied is up to £5000 and additional £500 a day until notification complete. (up to max of 80 days)
THIS DEADLINE WAS EXTENDED TO 29TH JANUARY TO NOTIFY THE EA OF AN INTENT TO COMPLY AND THEY WERE GIVEN A FURTHER DEADLINE OF 15TH APRIL TO SUBMIT A FULL NOTIFICATION
Failure to maintain records – penalty up to £5000 and cost to SEPA of carrying out audit activity to confirm that the company has complied with ESOS
Failure to undertake an ESOS audit – penalty of up to £50,000, £500 a day until breach remedied and requirement still to do the assessment. (up to max of 80 days)
Failure to comply with a notice – penalty of up to £5000 and £500 a day;( up to max of 80 days)
Providing false or mis-leading information – penalty of up £50,000

8. Current Statistics Total ESOS participants in Scotland ~505
As of 7 March 2016 Scotland had 321 full notifications of compliance
63 companies submitted an intent to comply notice
Approximately 77 free riders – deadline for submission 15 April 2016
EA data from Experian - indicates 7716 company names which met the qualification criteria in Scotland. After going through the data provided by the EA we think that there are 505 companies which either notified as a qualifying company in Scotland or where the ultimate parent is in Scotland this includes companies who have advised that they do not qualify.
As of 7 March 2016 from the above total of 505; Scotland had 321 notifications of compliance; 63 intent to complies; 77 freeriders; 44 notified they do not qualify.
There were 63 intent to comply notifications submitted (29 Jan deadline); we wrote to these companies and have correspondence from a number stating either, have complied or will ensure that work is completed, or do not qualify. This set will require review after 15th April deadline.
There are approximately 77 free-riders provided by the EA through analysis of their data. Checks are currently being carried out on this data and we are contacting these companies to make them aware of the 15 April deadline. Compliance notices will be sent in the first instance to those companies that do not comply by 15 April. If they do not respond to the compliance notice further enforcement will be considered e.g. enforcement notices, civil penalties
Intent to complies (63) – Followed up by May 2016;
ISO50001: Participants that have notified they will be obtaining ISO50001 accreditation will be given until 30 June 2016 to notify
Do Not Qualify (44) – These will be checked in future for confirmation

9. Further Information SEPA ESOS team: ESOS@sepa.org.uk
SEPA Enforcement Policy
Environment Agency Guidance on ESOS:
Further information can be gained from SEPA or the Environment Agency.

10. THANKS!
Questions?