Draft Environmental Permitting (England and Wales) (Amendment) Regulations 2018

Holly Lynch Excerpts

Monday 22nd January 2018 General Committees

[Holly Lynch (Halifax) (Lab)]

I join the Minister in saying what a pleasure it is to serve under your chairmanship, Mr McCabe. I am grateful to her for her introductory comments on the regulations.

The Opposition are supportive of the changes aimed at limiting emissions from medium combustion plants, which have a negative impact on air quality, as we have heard. We also support the measures to improve enforcement relating to flood risk activities. We welcome the fact that the Government have chosen to go beyond the controls in the medium combustion plant directive. However, it is clear that the Government’s approach to the capacity market has contributed to a fairly recent rapid increase in the use of highly polluting diesel generators; I will outline our concerns about that.

The Labour party is acutely aware that there is a dirty air emergency in the UK. Our analysis of the figures from the Library found that in 2015, around 8.3 million under-18s lived in local authority areas where levels of nitrogen dioxide exceeded legal limits. This means that over 60% of young people in this country live with the risk of health problems caused by pollution. According to the EU, the three pollutants that most significantly affect human health are particulate matter, nitrogen oxides and ground-level ozone. The most significant emissions from medium combustion plants are sulphur dioxide, nitrogen oxides and particulate matter, so it is clear that air quality must be treated as a public health priority, and that action against those types of generators is long overdue.

The Government have estimated that the regulations will affect some 30,000 plants across England and Wales, the equivalent of nearly 50 per constituency. The plants are used for electricity generation, residential heating and cooling, and providing heat for industrial processes. In relation to electricity generation, we have concerns that Government policies appear to be responsible for the fact that there are now so many small-scale generators in operation—a situation described by Policy Exchange as

“a proliferation of diesel generators”.

For years, the capacity market rewarded small-scale diesel and gas generators in pursuit of the important goal of securing electricity supplies and bringing forward sufficient reliable capacity. Air quality concerns were, to a large extent, overlooked. This process is described in the Government’s impact assessment for these regulations, which I will report in some detail:

“Incentives in the energy market have been encouraging greater use, and an increase in the number of, generators with high emissions of NOx. These generators are primarily diesel fuelled and emit very high NOx emissions relative to other forms of generators. High NOx emitting generators can lead to local NO2 concentrations capable of causing harm to human health and have the potential to cause breaches in hourly NO2 air quality limits set in the Ambient Air Quality Directive (AAQD). The aggregate impact of emissions from all generators also affects national UK emissions totals and compliance with emission ceilings set through the Gothenburg Protocol and National Emission Ceilings Directive.”

To be clear once again, we are glad that action is being taken to tackle pollutants, but I hope lessons will be learned for the future. It appears that air quality concerns were not taken seriously enough when this particular market was designed. As a result, Government incentives have led directly to an increase in harmful pollutants. The need to provide stable capacity was given greater weighting than the merits of air quality. Both are important, yet such an imbalance is regrettable.

We recognise that the regulations originate in action by the European Commission, which carried out a review of EU air quality between 2011 and 2013. This led to the Commission’s clean air package, which included proposals to regulate emissions from medium combustion plants. The Government have decided to transpose the medium combustion plant directive by extending the scope of the permitting regime in the Environmental Permitting Regulations 2016 to include those plants.

We welcome the fact that operators of new medium combustion plants will require a permit to operate plants from 20 December 2018, from which date they will be subject to an emissions cap for certain pollutants. It is also welcome that operators will need to keep a record of operations to demonstrate compliance with their permit conditions for at least six years. We are also pleased to see that the regulations go beyond the medium combustion plant directive, as most diesel generators operate for less than 500 hours and will therefore be exempt from NOx emission controls under the directive.

However, I note the long implementation period for existing medium combustion plants; the Government assert that it will give operators sufficient time to adapt to the new requirements. Operators of existing plants will fall within the permitting regime only from 2024 or 2029, depending on the variations outlined by the Minister. I urge the Minister to bring these plants within the regime much sooner. Does she accept that allowing a transition period of more than a decade for some plants does not reflect the seriousness of the air quality crisis?

I want to push for a little more detail. It is becoming increasingly difficult to distinguish between generators used for back-up and commercial purposes. National Grid has been actively recruiting hospitals and other organisations to make back-up generators available at peak times to avoid blackouts. Has the Minister considered whether the regulations go far enough in tackling emissions from these generators, which can cause air pollution—in the case of hospitals, in the areas where we can least afford it, though of course we appreciate the vital role of back-up generators in such institutions?

Finally, I have been through the extensive information provided with the regulations, searching for details on the measures to improve enforcement relating to flood risk activities. As shadow Minister with responsibility for flooding and an MP with a constituency affected by flooding, I have a particular interest in this element of the regulations. There is next to nothing in the explanatory notes and impact assessment covering these changes. I very much welcome an empowered Environment Agency, able to take action against those involved in creating or enhancing flood risk, but if the Minister could provide more practical examples of how and when those powers might be used, I would be grateful.

Having sought clarification from the Minister on those points, I will not detain the Committee any longer.