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Economic Instruments and Regulation
Overall Aim
The Scottish Executive and SEPA will ensure advice on waste regulation is accessible to business and its application is fair and consistent
Government has used economic instruments to move away from landfill. The introduction of the UK Government's Landfill Tax in 1996 began to change the economics of disposal. The landfill tax escalator provides that Landfill Tax will go up at least £3 per tonne each year until it reaches £35 per tonne. The tax for financial year 2006/07 is £21 per tonne for active waste.
In the Pre-Budget Report in December 2006, the Treasury announced that from 1 April 2007 the standard rate of Landfill Tax will increase by a further £3 per tonne to £24 per tonne. The Treasury also announced that the UK Government will consider whether the standard rate of Landfill Tax needs to increase more steeply from 2008 onwards, or go beyond the £35 per tonne already committed to for the medium to longer term. The tax on inert waste (much of which will come from the construction and demolition sector) is £2 per tonne. Other fiscal measures such as the Aggregates Levy also incentivise alternatives to disposal to landfill. Higher environmental protection standards at landfill sites mean that the true costs of landfill have to be paid when disposing of waste in this way.
On 1 December 2006, the Waste Management Licensing Amendment (Scotland) Regulations 2006 came into force. This consolidated exemptions from the waste management licensing regime, in the process creating some new exemptions, and preparing for implementation of the WEEE and Batteries Directives. The Waste Incineration (Scotland) Regulations 2003 have required all incinerators and co-incinerators to comply with the requirements of the Waste Incineration Directive since December 2005.
SEPA and the Executive are looking to consult jointly on the better waste regulation agenda. The consultation will focus on both administrative and regulatory measures to simplify the existing waste management regime, without completely replacing it. SEPA is also project managing a review by The Scotland and Northern Ireland Forum for Environmental Research ( SNIFFER) to investigate the regulators' general approach to small and medium sized enterprises, which is due to report by end 2007/08.
Producer responsibility legislation is in place in relation to packaging and end of life vehicles. It will also extend to waste electrical and electronic equipment during 2007. Following consultation, the Executive is discussing with Defra the creation of a producer responsibility scheme for agricultural plastics, to take effect in 2008. Consultation will take place in due course on producer responsibility for batteries.
SEPA have responsibility for assessing businesses that come under the scope of the Pollution Prevention and Control (Scotland) Regulations 2000 ( PPC). The general principles which SEPA is required to observe under the PPC Regulations include the need for installations to be operated in such a way that waste is avoided or reduced. Where waste is produced, installations are required to use Best Available Techniques to recover or recycle waste. The PPC regime, which was introduced in 2000, is currently being formally reviewed at an EU level and the Commission is due to report by end 2007. SEPA will also review their enforcement of PPC, taking into account the review taking place in the EU, to determine whether there is further scope to enhance waste minimisation. As mentioned under business support, SEPA are training staff primarily concerned with enforcing regulation about the potential of waste minimisation to save businesses money rather than just regulatory compliance.
On regulation more generally, SEPA have produced guidance on Understanding the Definition of Waste which can be viewed at www.sepa.org.uk/guidance/waste/is_it_waste.htm. SEPA recognise that waste derived compost meeting the PAS 100 specification can be considered a product. Work is currently underway to extend this concept by developing a series of quality protocols for a number of different materials. This work is being led by WRAP and the Environment Agency and includes input from industry and the other UK environmental regulators. Waste producers and reprocessors can then have confidence that a material, which may previously have been regarded as a waste but now meets the conditions of the protocol, can be re-used or recycled without the need for a licence or permit. SEPA will examine the protocols in due course and a determination made as to the best way to address them in Scotland. As mentioned in the Business Support section SEPA also support NetRegs, which gives SMEs advice on complying with environmental regulations www.netregs.gov.uk.
At an EU level, the revision of the Waste Framework Directive is currently being considered. While any changes to the definition of waste have been explicitly ruled out, clarifications of what counts as recovery or disposal are likely. The revision is looking at introducing EU-wide standards for certain recovered material streams (analogous to the protocol work described above).
The Landfill (Scotland) Regulations 2003 already lay down that a number of materials cannot be landfilled. These materials include: waste in liquid form, waste which in landfill is explosive, corrosive, oxidising or flammable, infectious clinical waste, chemical substances which are new or not identified and the effects of which on man or on the environment are not known, tyres other than tyres used as engineering material, bicycle tyres and tyres with an outside diameter above 1400mm. In addition, Animal By-Products legislation prohibits retail outlets from sending certain types of waste food to landfill.
From 31 March 2007, it will not be possible to landfill waste which has not been pre-treated.
Other countries have introduced more widespread landfill bans, often in relation to material which can be recycled, composted or incinerated. In the UK, major landfill bans have been a difficult policy option to pursue, given our heavy reliance on landfill. However, recent moves towards sustainable waste management means that more extensive landfill bans can be considered.
In the Scottish Ministers' view, further landfill bans, using the powers under the Pollution Prevention and Control Act 1999, could be introduced for clear environmental or health reasons or to help divert further waste away from landfill. Before introducing further landfill bans to support the strategic aim of reducing the amount of waste sent to landfill, we would need to be clear that there are alternative ways of dealing with the waste, such as recycling, composting or thermal treatment. In addition, time would have to be given to allow markets and facilities to develop and adjust. Consultation would be required. Landfill bans would need to be capable of being enforced.
It could be argued that there is already scope for landfill bans for some materials where there is already a strong recycling or composting market: such materials include clear container glass, scrap metals, green waste, paper/card, plastic bottles, untreated wood and textiles. There might also be scope to ban material which can be re-used (e.g. second-hand furniture) from being sent to landfill.
The Scottish Ministers intend to produce an annual report on the scope to introduce more landfill bans. The first such report will be produced by 31 December 2007.
As well as legislation, there may also be scope for voluntary agreements. For example, WRAP has established the Courtauld Agreement with retailers, on packaging and food waste. The Environment Agency has established industry sector plans on improving environmental performance and SEPA will consider if these plans should extend to Scotland. http://www.environment-agency.gov.uk/business/444251/1215866/?version=1&lang=_e. The Scottish Executive will consider, with DEFRA and the other administrations across the UK, if there is scope for further voluntary agreements with industry to promote sustainable waste management.
What is currently happening:
4.1 SEPA is project managing a review by SNIFFER to investigate the regulators' general approach to small and medium enterprises, which is due to report by the end of March 2008.
4.2 The DTI and the Executive have prepared regulations transposing the permitting requirements of Article 6 of the WEEE Directive.
4.3 There is agreement in principle that a GB wide statutory producer responsibility scheme should be established for agricultural plastics. Trials are currently being undertaken to establish the best approach to collection and it is expected that Regulations will come into force in 2008.
4.4 SEPA enforces waste minimisation through the PPC regime.
4.5 SEPA has published the following guidance: Is it Waste? Understanding the Definition of Waste www.sepa.org.uk/guidance/waste/is_it_waste.htm.
4.6 WRAP are developing waste protocols that may be applied by SEPA to clarify when a waste material ceases to be waste 2.
What will happen:
4.7 SEPA and the Executive are proposing to embark on a joint consultation on better waste regulation by end March 2007.
4.8 SEPA will review their enforcement of PPC, taking into account the review taking place in the EU, to determine whether there is further scope to enhance waste minimisation by March 2008.
4.9 The Executive will produce an annual report on the scope to introduce more landfill bans by the end of each calendar year.
4.10 SEPA will review the Environment Agency Sector Plans by August 2007 and consider if this approach is appropriate for Scotland.
4.11 The Executive will consider, with DEFRA and the other administrations across the UK, by July 2007 if there is scope for further voluntary agreements with industry to reduce the amount of waste sent to landfill.
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