Dr Paul Leinster CBE

1

better regulation for the 21st century
delivering environmental outcomes

• Dr Paul Leinster CBE
• Chief Executive, Environment Agency for England
  and Wales

2
purpose of regulation

• Ensures industry operates in a way that minimises
  adverse effects on people and the environment
• Establishes minimum requirements
• Promotes innovation
• Provides sanctions against freeloaders
• Gives confidence to the public
• Provides intervention to correct market failure

3
guiding principles

• Focus on environmental benefits and outcomes
• Target processes and operators presenting the
  greatest environmental risks
• Match the Environment Agencys approach to the
  operators performance and attitude
• Prevention at source through waste minimisation
  and pollution prevention
• Use influence and advice to deliver outcomes,
  wherever possible underpinned by regulation

4
guiding principles

• Minimum of administration and bureaucracy
• Standardise and simplify where possible
• Transition periods for the introduction of new
  regulations
• Information on emissions, site hazards and risks,
  operator performance and compliance with permit
  conditions readily available
• Incentives for better performers
• Retain firm and proportionate prosecution and
  enforcement

5
our model of regulation
6
emissions to air 2005
Industry
Transport
Other
Percentage of UK emissions
100
80
60
40
20
Carbon
Sulphur
Volatile
Carbon monoxide
Sulphur dioxide
Volatile organic compounds
Benzene
NETCEN / Environment Agency
7
emissions from industrial processes we regulate
1990
1995
2000
2006
Percentage of 1990 emissions
120
100
80
60
40
20
Benzene
Carbon
Dioxins
Nitrogen
Lead
PM10
Sulphur
Volatile
monoxide
oxides
dioxide
organic
compounds
Environment Agency
8
pollution incidents
9
better regulation in practice

• Outcome focused service levels eg waste crime and
  hazardous waste
• Operator and pollution risk appraisals (OPRA)
• Site and Sector Compliance Assessment Plans
• Compliance Classification Scheme
• More audits, fewer inspections
• Sector plans voluntary improvement plans agreed
  with sectors
• Advice and guidance

10
better regulation in practice

• On track to meet 25 admin burden reductions by
  2010
• National Customer Contact Centre
• National permitting services
• Regulatory Scrutiny Panel
• Online registration
• Simplified forms and guidance
• Getting the Basics Right

11
the sectors environmental pressures
12
operator environmental performance
13
the sectors environmental management
14
if all else fails annual fines by sector
Number of companies fined
255
284
270
243
225
15
savings delivered to businesses we regulate

• Environmental Permitting Regulations 70m
  saving over 10 years
• Guidance documents reduced by 8,000 pages
• Removed 23,000 low-risk abstractors from
  regulation 1m per year
• 500,000 low risk hazardous waste producers no
  longer need to register with us 14m per year
• 4,500 low risk activities no longer need a
  licence saving 9.5m
• Reduced low risk waste inspections from 60,000 to
  36,000 saving business around 100k per year

16
savings delivered to businesses we regulate

• Standard rules permits average saving 2,000
  per permit
• Proportionate dividend to charge payers (2 pa)
  reflected in unit charges
• Quality protocols over 10 years first 11 will
  save 400m and generate 280m sales
• On track to meet 25 admin burden reductions by
  2010
• online registration
• simplified forms

17
NetRegs

• Web-based free environmental guidance for small
  businesses
• what you need to do to comply with the law
• how to use your resources more efficiently
• Over 100 business sectors
• Used by over 300,000 businesses
• Estimated savings for business of about 7m/yr in
  admin costs

www.netregs.gov.uk
18
uk political drivers

• Hampton Review, 2005 reducing admin burdens
• Macrory Review, 2006 improving compliance
• Target to reduce admin burdens by 25 by 2010
• Hampton Implementation Review, 2007
• Regulators Compliance Code, 2007
• Enterprise Strategy, 2008 small firms,
  regulatory budgets, Anderson Review on guidance
• Regulatory Enforcement and Sanctions Act 2008

19
regulators compliancecode

• Activity based on comprehensive risk assessment
• No inspection without reason
• Businesses should not have to give unnecessary
  information or the same piece of information
  twice
• Businesses that persistently break regulations
  should be identified quickly
• Regulators provide authoritative, accessible
  advice
• Regulation should encourage economic progress
  only intervene when there is a need for
  protection

20
challenges for industry

• Organisations to take full responsibility for
  their activities
• Identify and minimise key environmental impacts
• Set quantified goals and targets
• Monitor and report externally against these at
  site and company level
• Benchmark environmental performance
• Monitor impacts and develop assessment criteria
• Contribute to research on health and
  environmental impacts of activities

21
benefits of regulation

• 34 billion UK environmental market
• 9 billion potential waste management market
• 3 billion saving in operating costs by
  minimising waste
• 2.5 billion energy efficiency savings
• 30 cut in water bills

22
better regulation science programme

• Investigate the effectiveness of our
  interventions
• Understand how we can earn and maintain public
  trust and change business behaviours
• Overall environmental risk assessment across
  sectors
• Horizon scanning to identify environmental issues
  and risks

23
the regulators challenge

• Regulators, under unprecedented pressure, face a
  range
• of demands, often contradictory in nature
• be less intrusive but more effective
• be kinder and gentler but dont let the
  bastards get away with anything
• focus your efforts but be consistent
• process things quicker and be more careful next
  time
• deal with important issues but do not stray
  outside your statutory authority
• be more responsive to the regulated community
  but do not get captured by industry
• The Regulatory
  Craft, Malcolm Sparrow (2000)