How to tell if you’re under IPPC

SORIS meeting, CIRCE8th September 2004

Janet Murfin, TT Environmental

IPPC background

• IPPC EU directive aims to make business more environmentally sound

• Potentially affects all chemical businesses

• “IPC on steroids” – more industries affected, smaller businesses involved

• Very detailed application/surrender forms

• Costs to apply, maintain and surrender any PPC permit (nb IPPC = PPC)

Where do you stand?

• IPPC is “comply or close” – you need a licence to carry out certain operations

• If you don’t apply at the right time, you can be fined

• It’s important to know whether you are under the regulations or not

• You don’t want to end up under PPC by default/ accident

• Having a permit is expensive

PPC permit timetable

• There’s a sliding timetable for applications if you have an existing installation.

• Inorganics – 2004/05; Some organics (speciality, pharmaceuticals etc) - 2006

• If you put in new plant or a new process, you must check to see if you’ll have to apply as a “new installation” before you can start operations

IPPC costs

• Application, Maintenance and Surrender fees

• EA charges are often pro-rata: how big a site, what chemicals used, proximity to sensitive receptors,

• You also have your & consultants’ time• EA Charges can be found at :

www.environment-agency.gov.uk/business/444669/587179/504799/506594/?version=1&lang=_e

IPPC lifetime costs

• Application fees 8k• Maintenance fees (two years) 4k• Surrender fees 12k• Consultancy fees (2 site reports) 16k• Total cost 40k• Cost per year 20kNot counting staff time and hassle

One installation, running from 2002 to 2004:

Is my business under IPPC?

• It depends on what you actually do: the operations you carry out, the substances you handle, how you manage risks etc

• There’s no easy answer – each site is different, so the answer changes

• Also, there are frequent changes to the regulations – make sure the guidance you’re using is up to date

Your operations and PPC:

Not under PPC

Definitely under PPC

Repacking

Warehousing, resale, distribution

Formulations

Chemical synthesis•Hazardous nature of substances used•Amounts of substances in use•Need for abatement

Including dilution with minor pH adjustments

Main criteria Other parametersinclude

There are also special cases..

• R & D exemption

• Low-impact installation

• SED installation (new amendment 2004)

Why is it so complicated?• EU directive is complex; and PPC is site-

specific (bespoke, in effect)

• REMEMBER – the EA have problems with the PPC regulations, too

What do I have to do?

• It’s your job to decide whether you come under PPC, and if you do under which section

• You have to make your case to the EA• They will then agree or disagree• They won’t come to you – it’s your responsibility• If you have a business which should have a PPC

permit, and you don’t apply, you’ll be fined

How do I actually find out whether we’re under PPC?

Follow these five steps:

1. Know your business

2. Check the PPC regulations

3. Check the interpretation to the regulations

4. Have a good think about it, take advice

5. Contact the EA for confirmation - LAST

Step 1: Know your business

• This may not be as easy as it sounds

• Most SMEs are very flexible and respond quickly to customer needs – everything changes rapidly

• Look at product families or types – what do you make or handle; how do you do it; what raw materials do you use; what wastes are produced

Step 2: check the regulations

• Get hold of a copy of the current regulations and amendments

• EA Website has PPC regulations (SI 1973, 2000) and all amendments: www.environment-agency.gov.uk/netregs/legislation/287972/652894/658261/?version=1&lang=_e

• The relevant section is Schedule 1, Chapter 4, The Chemical Industry

Step 3: check the interpretation

• Get hold of the guidance document which the EA use to show whether you’re under PPC or not

• The guidance is called “IPPC RGS note 4”• Weblink:

www.environment-agency.gov.uk/commondata/105385/ippcrgsno4v2_412508.pdf

• Relevant part: again, Chapter 4: The Chemical Industry

Step 4: Have a think, take advice

• Could you alter what you do to avoid going into PPC?

• Is there anything that would suggest you don’t come under the regulations?

• Do you need help from a consultant?

• nb whether to go into PPC or not can be a business decision, so the owner has the final say – it’s their money

Step 5: confirm with EA

• Find out who your local inspector is at the EA – call 0870 8 506 506

• Talk to them over the phone, or have a meeting at their office

• Follow up with a letter outlining your processes, and ask for a decision in writing

• Retain their reply on file – repeat the exercise if you change your operations significantly

If you do come under IPPC

• Make sure you know exactly the reasons why you do: check Schedule 1 in the regulations; check the interpretation again

• Get it confirmed at this stage, in writing, from the EA

• Find out your deadline (usually a 3 month period).

• Plan to start your application about a year to 18 months before the deadline

Note: you may come under several categories for PPC

• Example: you make surfactants. • You could class yourself as organic chemicals

(nitrogen chemistry) due 2003 (your application would be late!)

• Or you could class yourself as surfactants, due 2006

• nb where you use different types of chemistry, the largest volume handled usually takes precedence – but confirm this with EA

Example: 1 - know your business

Product types

How handled

Raw materials

Wastes

esters Synthesis.

(bulk storage)

Fatty acids, alcohols

washings to sewer

pesticides formulation Pesticides, solvents

Special waste

fertilisers formulation NPK etc Washings to sewer

Example: 2 - check the regs

• For esters – due June to August 2006 as they’re surfactants

• For pesticides formulation – n/a as long as no pesticide discharge to sewer

• For fertiliser formulation – seems to be included in June to August 2005

• PROBLEM – why is fertiliser formulation included, but pesticide formulation is not?

Example: 3 - check the interpretation

• RGS note 4 says that fertilisers are produced for PPC purposes if a chemical reaction takes place, and in chemical plant and it’s for commercial purposes

• Fertiliser formulations, involving mixing and minor pH adjustments, are NOT under PPC, despite initial reading of regulations

• It pays to read the small print!

Example: 4 - think about PPC

• If I don’t make the esters, I won’t be under PPC

• It will cost me more to be in PPC than the profits from the esters anyway

• We won’t have a competitive advantage if we are in PPC

• Decision – end ester production before 2006 to avoid going into PPC

Example: 5 - confirm with EA

• The company stopped ester production

• They talked to their local Inspector, wrote a letter explaining what they do, and have received written confirmation that they’re not under PPC.

• Everybody’s happy: the company know where they stand, and the EA know the company are a non-PPC business

You may be wary of asking the EA for their opinion

Some reasons why smaller chemical businesses don’t want to talk to the EA:

• They don’t know we exist• I want to keep my head down• If they know about us, we’ll be inspected

and pestered and it’ll be terrible hassle• I’m worried they’ll charge us• They might ask us about other regs like

COMAH

If you’re wrong about PPC…

• The EA will find out eventually, and they will be down on you like a ton of bricks, including fines, back-charges etc

…but if you ask the EA politely:

• They’ll be willing to help (and impressed)

• It’ll be off the public record, at this stage

• It’ll be FREE, GRATIS & FOR NOTHING

If you’re certain you’re not in PPC

• Then you probably don’t need to contact the EA

• But you still need to keep any eye on your business to make sure you don’t stray into PPC territory (just like you would with the COMAH regulations)

Summary

• Find out if you’re in IPPC or not from the regulations, and check what the regulations mean using the interpretation document RGS no 4.

• Confirm this with your EA inspector

• If you’re in IPPC, also confirm the section(s) which take you in, and the application deadline(s)

Essential do’s:

• Read the regulations yourself

• Give yourself time and space to do this, because it is complicated

• Ask for advice if you’re confused

• Contact the EA, but only after you’ve checked your position beforehand

Don’t start your application

• Before you’ve checked whether your eligible

• Before you’ve decided whether you’re going to alter your business to avoid PPC altogether

• Before you’ve confirmed the dates with the EA, so you know your targets (a year to 18 months beforehand is about right)

Do contact us

• If you want independent advice, need help with your PPC position or PPC application in any way

• Contact details: – Janet Murfin– 01274 870306 (direct)– janet@ttenvironmental.co.uk

• Presentation on my website at www.ttenvironmental.co.uk/news.html

• Thanks for listening - any questions?