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FORUM FOR RENEWABLE ENERGY DEVELOPMENT IN SCOTLAND - PROMOTING AND ACCELERATING THE MARKET PENETRATION OF BIOMASS TECHNOLOGY IN SCOTLAND
REGULATORY ISSUES
Planning
56. Consent for a new biomass power plant below 50 megawatts MW is the responsibility of Local Authorities under the Town and Country Planning (Scotland) Act 1997 which requires planning decisions to be made in accordance with the 'development plan'. Very few development plans at present contain specific policies on biomass developments, although they do contain other policies that need to be taken into account, such as environmental criteria and protection of natural heritage. Development plans must be regularly reviewed and it is likely that they will progressively include a number of policies to guide biomass developments. The latest plans are moving in this direction, with certain notable examples such as East Ayrshire including positive development plan policies.
57. The Scottish Executive's National Planning Policy Guideline "Renewable Energy Developments" (NPPG 6), revised in 2000, asks planning authorities to provide positively for all forms of renewable energy development, but to do so in a way that is compatible with statutory obligations to protect natural and built heritage. The Executive's Planning Advice Note "Renewable Energy Technologies" (PAN 45) revised in 2002 provides supplementary advice on issues to be taken into consideration, such as visual intrusion, noise, local ecology and traffic impacts. Specific issues are addressed is done on a case by case basis, but in all cases project developers are expected to demonstrate how they will mitigate any negative impacts.
58. The Executive's planning guidelines and advice referred to above have been welcomed by planning authorities and developers alike. Both documents contain information that is biomass specific. However, the planning guidelines were prepared when there were very few, if any, wood fuel biomass developments in Scotland and interest in biomass energy production is now such that more detailed guidance is necessary. The Scottish Executive intends to review its renewables planning guidance in 2006. However, the issues that BEG has identified require consideration at an earlier stage in order that the developing industry can have the best possible advice. The Executive should consider examining the planning issues around biomass development and issue interim advice in advance of the major review already planned. BEG would be happy to provide input into such work.
59. Projects below 20MWth input do not require IPPC licence and subsequent regulation is the responsibility of the local authority.
60. The modification of other planning guidance and building control regulations relating to housing, commercial and industrial development can assist in the potential inclusion of biomass systems within new or existing developments. This would support the objectives of the Sustainable Building Task Force of the Office of the Deputy Prime Minister.
Regulation
61. A number of regulatory issues were drawn to our attention and we discussed these with representatives of the responsible authorities- Ofgem, the regulator and the Scottish Environment Protection Agency (SEPA). Both assured us that they were anxious to work with the industry to resolve any difficulties that might arise but pointed to the fact that they could only act within the confines of the appropriate legislation. Whilst we fully understand and acknowledge this position, clear and transparent guidance is essential to ensure that biomass development is not unnecessarily hindered by procedural issues.
62. SEPA has assured us that the Agency was very willing to look at its procedures to ensure greater consistency of approach. Similarly, they have undertaken to discuss regulatory issues with potential developers at an early stage in the planning of a development. BEG welcomes these assurances and recommends that the Scottish Executive keeps the position under review.
63. A fundamental problem that needs to be addressed centres on the classification of certain material as "waste" under the terms of the EU Council Directive on waste (The Framework Directive) and the EU Council Directive on the incineration of waste (The Waste Incineration Directive) and enabling UK/Scottish legislation. Industry has pointed out that if potential biomass materials are classified as "waste" then biomass projects would incur additional costs. Such material would require to be transported by a registered carrier and might need a licence to be burned. Additionally, obtaining planning consent might become more difficult. Industry has also expressed concern that SEPA practice appears to be to treat each supply of biomass material on a case by case basis. In the absence of transparent and clear guidance, such an approach introduces delay, uncertainty and problems with inconsistency of interpretation which hinder investment.
64. BEG has looked at how other EU countries implement the EU Waste Directives, and have visited North Rhine Westphalia to see at first hand the practice there. Our conclusion is that the Directives are being implemented in a more rigorous fashion in Scotland than elsewhere and that this is holding back the development of a wood fuel industry here. We believe that the following categories of wood fuel should not be classified by SEPA as waste and that they should be treated in the same way as short rotation coppice and other energy crops:
- Forestry brash, lop and top, derived from the harvesting of standing timber; and
- Any secondary products of primary processing of logs and small round wood, such as bark, butt reducer chips, wood chips and sawdust.
65. We therefore recommend that SEPA should look again at how they implement the provisions, taking account of practice elsewhere.
66. As regulatory issues emerge, BEG encourages SEPA to engage in positive dialogue with industry and ensure there is clear national guidance at the earliest possible stage.
67. A current issue affecting eligibility for ROCs relating to co-firing is the arrangements for the measurement and testing of the biomass fuel used. For commercial reasons, generators want the flexibility to purchase a variety of fuels including pre-blended material. The Royal Commission on Environmental Pollution clearly recommends that "Possibilities for secure arrangements should be investigated whereby Ofgem can certify blended fuels for co-firing as eligible ROCs at sites other than the power station that is going to use them." Ofgem's interpretation of the GBROs requires the testing of the component materials individually at the power station. As there is no practicable means to achieve this for pre-blended material, a barrier is created. Ofgem's concern is that pre-blended fuels would prove difficult to audit, particularly in the case of imported biomass fuels. BEG recognises these concerns but urges industry and Ofgem to work together to identify a solution, as a matter of urgency, and is pleased to note that the current fundamental review of the GBROs will examine this issue. If a solution cannot be found, it could potentially delay the development of the wood fuel infrastructure that co-firing could otherwise stimulate.
68. Later in this report, we discuss and make recommendations in relation to information provision and sharing. We believe that information about regulatory issues should form part of that process.
Actions
- As part of its planned review of NPPG 6 and PAN 45, the Scottish Executive should at an early date provide updated guidance on biomass developments. This guidance should encourage local authorities to consider the wider impact of biomass projects in relation to sustainable development and the employment impacts of plant.
- All the regulatory agencies must recognise the opportunity which exists to develop renewable power sources (with all the wider inherent benefits). This opportunity will be greatly enhanced by a more proactive approach to overcoming problems.
- SEPA should examine its procedures to ensure consistency of approach in relation to the implementation of legislation relating to waste products and, along with Ofgem, should ensure that information about regulatory issues is made more readily available to the biomass sector.
- SEPA should re-examine how it implements the provisions of the EU Council Directives on waste and on the incineration of waste. Forestry brash, root/stump, lop and top derived from the harvesting of standard timber and any (co) products of primary processing of logs and small round wood should be treated in the same way as short rotation coppice and other energy crops.
- Ofgem and industry should work together to develop secure arrangements whereby Ofgem can certify blended fuels for co-firing as eligible for ROCs at sites other than the power station.
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