1. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 PPC and COMAH update Janet Murfin

2. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Contents IPPC state of play COMAH 2005 amendments Combined regulatory burden Sea change in EU thinking Regulatory future

3. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 IPPC and the chemical industry

4. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 PPC state of play – chemicals LVOC companies applied in 2003, permits should in theory have been issued Two tranches of inorganic chemical companies have been submitted, first phase of permits are coming through, second phase currently being assessed Final two phases of organics due 1 st and 3 rd quarter 2006 – specialities, pharma – companies should be writing applications

5. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 SMEs and PPC awareness Some chemical manufacturer micro-SMEs (10 employees or less) are still unaware of obligations Others should have been due in 2003, but think they are due 2006 Environment Agency are not going round knocking on doors telling companies to apply Makes it difficult for very small businesses who have multiple job functions

6. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Formulators and distributors Formulators and distributors are mainly non- PPC, if no reaction takes place But check the small print, in case discharge of “red list” substances could obligate you BCDTA and large distributors have been involved in getting changes eg HCl dilution Nobody will tell you if you should apply, particularly if you’re not PPC – it’s your legal responsibility to make a timely application

7. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Your business and PPC If you don’t know whether you’re under PPC or not, find out now Ask EA for Chemicals CD, check RGS 4 Inspectors tend to assume you’re in! Ask them once you’ve an idea where you stand If you’re due in 3 rd Quarter 2006, you should have started the work by now 1 st Quarter 2006, and not started yet? Don’t panic – but it’s more work than you might think

8. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Low Impact Application notes Permit Application is not low-impact on company time and resources Application Form alone can be 70 – 80 pages, also H1, H7, BAT assessment: same as full application without EP-OPRA Main benefit is Low Impact charges and regulatory visits are lower Low Impact permits get drafted faster But you still have to make improvements

9. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 PPC negatives Several closures pre PPC (last straw for ailing businesses?) Manufacturing moved offshore, retaining sales and R& D in UK Some companies have stopped producing chemicals by reaction, just formulating CBI claim environmental regulations preventing inward investment IN UK

10. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 PPC positives Better environmental performance Save money through carrying out waste, water and energy audits (although unlikely to offset regulatory costs) Changes have been made which benefit low impact/smaller sites EA are listening, particularly to industry- based groups

11. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 PPC in the future Currently, fixed price for permit surrender, £12k – this may change from April 2006 to a more proportionate approach Possible re-definition of Low Impact so that smaller firms are no longer PPC Major review of PPC in 2007, once regulations fully implemented – some pressure for this to happen sooner

12. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 COMAH 2005 amendments

13. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 COMAH awareness Awareness of COMAH in SMEs is generally better than PPC Regulations have been around longer Affects chemical businesses regardless of whether they distribute/formulate/ react Regulations easier to understand Most businesses know they have Health & Safety obligations: HSE has a higher profile than EA

14. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Managing COMAH obligations Many people are aware that inventory management is key to COMAH obligations Unlike PPC, you can carry on manufacturing without going into COMAH However, poor classification of MSDSs can lead to sense of false security Management of stock information is vital for businesses whose stock levels/ hazards hover around Lower Tier or Top Tier threshold

15. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Obvious COMAH changes Some companies become Low Tier, others are moving up from Low Tier to Top Tier Mainly due to re-classification of substances and a change in COMAH calculations Low Tier involves MAPP, not too onerous Move from Low Tier to Top Tier is much more work – modelling work, Safety Report

16. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 The “good old days” If you bought a house or set up a business next to a chemical factory: –You probably paid less for it –You accepted that there was a risk of accidents, and noise, and smells –But the factory was there first, and you could have chosen not to live next to it Caveat Emptor applied

17. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Hidden consequences “reverse planning” will now apply to COMAH sites, particularly Top Tier If the risk increases through no fault of your own, you will have to mitigate this risk Guess who pays for this? In theory, planning will be restricted in zones around Top Tier sites – but in practice will every council be aware of this?

18. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 What can companies do? If you are a Top Tier site, or think you may become a Top Tier site: –watch the planning applications very carefully around your site –object strenuously to anything which will lead to greater risk eg increased “level of death” in an incident –liaise with HSE, if necessary quote COMAH regulations in your objection

19. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 COMAH future Many more companies will become COMAH obligated More chemicals are being classed as hazardous (eg CHIP 3.1, and as more information becomes available) Environmentally hazardous chemicals have an impact on COMAH – don’t forget this

20. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Combined regulatory burden Bad timing for companies going into PPC in 2006 – coincides with new obligations under COMAH Extra work on two major pieces of legislation Need for agreement on environmental consequences in PPC application and COMAH Top Tier Safety Report

21. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Sea change in EU thinking There has been a realisation in EU that there are too many directives, often overlapping and conflicting with each other Decision has been made to try to stop making new laws, and spend time sorting out inter-relationships UK Civil Service see this idea as a good thing, trying to support it

22. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Regulatory future “joined up regulation” sounds good, but no sooner are PPC and COMAH out of the way, than we’re into REACH PPC and COMAH are not “file and forget” – both have ongoing obligations Less time on compliance, would give industry more time to compete If we can cope with Brussels bureaucrats, beating China should be easy!

23. IChemE, Chemical Engineering Show, Harrogate, 16 th Nov 2005 Thank you very much Any questions? Presentation available at www.ttenvironmental.co.uk/library.htm www.ttenvironmental.co.uk/library.htm Contact tel: 01274 870306 Email: janet@ttenvironmental.co.ukjanet@ttenvironmental.co.uk