Atmospheric Emissions - Power Generation

• EC Directive 96/61 on Integrated Pollution Prevention and Control
• Pollution Prevention and Control Act 1999
• Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 2001
• The Offshore Combustion Installations (Prevention and Control of Pollution) (Amendment) Regulations 2007

The 2001 Regulations implement the IPPC Directive (EC Directive 96/61) and apply to combustion installations located on offshore oil and gas platforms where an item of combustion plant on its own, or together with any other combustion plant installed on a platform, has a rated thermal input exceeding 50 MW(th). The 2007 Amendment Regulations implement the amendments made to EC Directive 96/61 by the Public Participation Directive 2003/35/EC and bring in tighter requirements for public consultation as part of the permit application process.

• Council Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading with the community

The EU Emissions Trading Scheme (EU ETS) Directive was published in October 2003 and came into effect in January 2005. The Directive applies (amongst others) to installations with combustion facilities with a combined rated thermal input of >20 MW (th). This is a statutory scheme for those relevant installations. The aim of the Directive is to achieve reductions in GHG emissions as outlined by the Kyoto Protocol.

The EU Emissions Trading Directive covers the six greenhouse gasses that are included in the Kyoto Protocol. However to date only CO2 emissions are covered. The scheme may be expanded in future phases to the other greenhouse gases.

• The Greenhouse Gas Emissions Trading Scheme Regulations 2005
• The Greenhouse Gas Emissions Trading Scheme (Amendment) Regulations 2007
• The Greenhouse Gas Emissions Trading Scheme (Amendment No. 2) Regulations 2007
• The Greenhouse Gas Emissions Trading Scheme (Miscellaneous Provisions) Regulations 2007
• UK Phase 1 National Allocation Plan 2005-2007
• UK Phase 2 National Allocation Plan 2008-2012

The Greenhouse Gas Emissions Trading Scheme 2005 (the 2005 Regulations) as amended provide a framework for a greenhouse gas emissions trading scheme and implement Directive 2003/87/EC establishing a scheme for greenhouse gas emission allowance trading.

• MARPOL 73/78 Annex VI - Prevention of Air Pollution from Ships

Annex VI is concerned with the control of emissions of ozone depleting substances, NOx, SOx, and VOCs and require ships (including platforms and drilling rigs) to be issued with an International Air Pollution Certificate following survey. There are a number of exclusions and exemptions, which limits the applicability of Annex VI to offshore oil and gas operations (see Pending Legislation).

Annex VI is not yet implemented in the UK Legislation. Timing of implementation is not known. Some aspects of Annex VI are already in place including requirement for marine fuel oil suppliers to be registered and limits set on NOx emissions from marine diesel engines (including those on offshore installations) installed post January 2000 (see Performance Standards)

• Directive 2005/33/EC amending Directive 1999/32/EC as regards the sulphur content of marine fuels
• Sulphur Content of Liquid Fuels (Scotland) Regulations 2000
• Sulphur Content of Liquid Fuels (England and Wales) Regulations 2000

These Regulations implement Directive 1999/32/EC in the UK setting maximum sulphur content for fuel including heavy fuel oil and gas oil including marine fuel. These Regulations will be replaced in their entirety for marine fuel once new UK wide Regulations are put into place. From 1st January 2008 sulphur content of gas oil must not exceed 0.1%.

• UN-ECE Protocol on Polllutant Release and Transfer Registers
• Council Regulation 166/2006 concerning the establishment of a European Pollutant Release and Transfer REgister (E-PRTR Regulation) (see Pending Legislation).

• Waste and Emissions Trading Act 2003

This Act provides for the enforceability of penalties, including fixed financial penalties, in the current voluntary UK Emissions Trading Scheme 2002. Part 2 of the Waste and Emissions Trading Act 2003 amends Schedule 1 to the Pollution Prevention and Control Act 1999. The amendment provides for penalties in any future emissions trading schemes.

• National Emission Ceilings Regulations 2002

These Regulations set national ceilings and a requirement for the development of a reduction programme for sulphur dioxide, nitrogen oxides and volatile organic compounds in the UK. These Regulations apply to emissions from land, territorial sea and the UKCS.

At present, the UK government believes that it can meet targets through existing targets onshore. However, this does not preclude future targets for offshore operations. The UK Government is in the process of preparing a national programme for reduction of these emissions.

• Aarhus Convention on Access to Information, Public Participation in Decision Making and Access to Justice in Environmental Matters 1998
• EC Directive 2003/35/EC providing for public participation in respect of the drawing up of certain plans and programmes relating to the environment and amending with regard to public participation and access to justice Council Directives 85/337/EEC and 96/61/EC (Public Participation Directive)

The Public Participation Directive implements the second part of the Aarhus Convention. Directive requires an increase in the already high level of public participation in the process by which regulators consider environmental implications for offshore activities (see Snippets).

• Merchant Shipping (Pollution) Act 2006

This Act enables the Government to implement Annex VI of the MARPOL 73/78 Convention (see Pending Legislation) and amends the Merchant Shipping Act 1995 to enable implementation of Annex VI using the same powers used to implement other MARPOL 73/78 Annexes.

PPC Regulations

Guidance Notes on the Offshore Combustion Installations (Prevention and Control of Pollution) Regulations 2001

Guidance Notes on Energy Assessment Methodology (pdf file)

Guidance on Substantial Change Assessment This guidance is currently being amended and therefore if you have any queries then please contact the Environmental Management Team to discuss on 01224 254054, or contact your relevant Environmental Manager.

Further guidance on applications for permits under the PPC Regulations are available from DECC website.

EU Emissions Trading Scheme

DECC Guidance on the Greenhouse Gas Emissions Trading Scheme Regulations

Further guidance on the EU Emissions Trading Scheme for offshore installations are available on the following web sites:

DEFRA website

DECC website

MARPOL Annex VI

Marine Information Notice (MIN 317) - The Sulphur Content of Gas Oil and Marine Gas as per Council Directive 199/32/EC (pdf file)

Marine Guidance Note 142 - MARPOL 73/78 – ANNEX VI: Control of Emission of Nitrogen Oxides (NOx) from Marine Diesel Engines (pdf file)

PPC Regulations

No offshore combustion installation* can be operated except in accordance with a permit issued under the PPC Regulations.

A permit is required for any combustion installation (gas turbines, diesels, direct drive compressors, heaters, etc.) located on an offshore oil or gas platform, or other producing facility, where an item of combustion plant on its own, or together with any other combustion plant installed on a platform, has a rated thermal input exceeding 50 MW (th). This 50 MW (th) threshold applies to all operational combustion equipment.

Existing combustion installations which exceed the threshold but do not undergo substantial change** will be covered by the Regulations but will not require a permit until 1 November 2007. Emissions reporting for Platforms over 50 MW (th) was, under Article 15 of the IPPC Directive, required from 2003. Combustion installations, which were put into operation in the period from 31 October 1999 to 31 October 2000 are also classed as existing combustion installations. ('Operation' is the point at which the normal design fuel is first fed and burned in the main combustion unit).

*'Combustion Installation' refers to the total combustion plant on a platform or group of co-located platforms and is distinct from the offshore installation itself. There are a number of exclusions including for example shuttle tankers and mobile drilling rigs.

** A 'substantial change' means 'in relation to combustion installations, a change in operation which may have significant negative effects on human beings or the environment'. (See Renewal and Variation for details of process of determining substantial change).

EU Emissions Trading Scheme

Any installation with combustion plant that on its own or in aggregate with any other combustion plant has a rated thermal input exceeding 20 MW (th) is required to be registered under the EU ETS.

There are two parts to the EU ETS

a) The requirement to be registered under the scheme, and the receipt of a permit under the EU ETS;

b) Application for an allowance from the National Allocation Plan.

Any new relevant installation that is not permitted is classed as a new entrant and must apply for allowance under the New Entrants Reserve (NER). However, the NER has a limited capacity and only certain applications will be eligible. The following types of offshore projects (onshore installations oil and gas E&P operations are not eligible) are considered to be eligible new entrants:

• New installations and new combustion capacity at existing installations;
• Tie-backs and modifications that meet the following criteria:
• Will result in a quantified enhanced recovery of reserves;
• Will require a variation of the relevant permit; and
• Will result in a quantified increased additional power demand that will generate additional emissions from the existing combustion plant.

The NER is on a strictly first come first served basis and a queuing system will apply. Part of the NER has been ring-fenced for Combined Heat Power (CHP) installations. Facilities not receiving an allocation under the EU ETS will be required to purchase allowances through the Trading Scheme.

The UK has now submitted its final National Allocation Plan for Phase II of the EU ETS to the Commission and the plan accepted. A final list of installation level allocations is available on the DEFRA website.

PPC Regulations

Permit application shall be in writing and shall contain a description of the following:

• A description of the installation, its activities and its location;
• The materials, substances and energy used in or generated by the installation;
• The sources of emissions (release routes) from the installation;
• The nature and quantities of foreseeable emissions from the installation into each medium as well as identification of significant effects of the emissions on the environment;
• The proposed technology and other techniques for preventing or, where this is not possible, reducing emissions from the installation;
• Where necessary, measures for the prevention and recovery of waste generated by the installation; and
• Measures planned to monitor emissions into the environment.

Information on new combustion installation(s) in new developments may be included in an Environmental Statement (ES), or otherwise attached to it by a reference in the main ES document. An application for a permit has to be made separately but a copy of the ES then need only accompany it with the covering letter indicating where the required information can be found.

The permit is based on a mass emissions approach for each of the main pollutants. As oil/gas production declines over field life, emissions will not be constant. It is envisaged that during the study phase, the operator will prepare yearly predictions of each emissions and these will form the basis for negotiation of the overall permit mass emissions (tonnes) for each pollutant. A pro forma of a typical permit application is given in Annex 1 to DECC Guidance Notes.

EU Emissions Trading Scheme

Application for a GHG Permit under the EU ETS should be through the application form available on DECC website. Guidance notes are also available here.

Information that is required to be included, includes:

• Installation/facility details (including any tie-backs) and description of activities covered by the permit (i.e. combustion plant with an aggregated thermal rating of > 20 MW (th));
• Details of fuels used;
• Existing PPC permit details;
• Outline of planned monitoring and reporting measures, confirming arrangements that will be implemented from 1 January 2005; and
• Non-technical summary of installation/facility details.

In addition (if not an existing installation (pre December 2003) where an allocation under the National Allocation Plan will already have been made), an application for an allocation from the New Entrants Reserve (NER) will also be required. Application is through DECC NER Application Form available on DECC website. Guidance on completion of the NER and calculation of allowances is also available on DECC website.

Applications for Phase 1 NER allowances for activities starting after 30 June 2006 are classified as "Later Phase 1 New Entrants". All such applicants will also need to make a separate application to the Phase II NER using the Phase II Application Form (ETS 3.2), the Phase II VO Template and the Phase II Spreadsheet in order to obtain allowances for Phase II under the scheme.

Installations that have entered under Phase I will already have new allocations issued under Phase II.

Data submitted as part of the application for allocation under the NER must be externally verified as part of the application process. This will require production of a Design Report. The Design Report must include, at a minimum:

• The inputs that you have applied to the NER application and benchmarking spreadsheets;
• The allocation that you have calculated from your inputs to the spreadsheets; and
• The best practicable level of assurance that you can provide that these data represent accurate estimates for your installation.

The Design Report will need to be verified by a UKAS accredited verifier, who will produce a Verification Report for submission to DECC. Guidance on production of the Design Report and verification is available on DECC website and further guidance is also available on the DEFRA website. Once the Design Report and Verification Report are received by DECC, the application will be recognised as “duly made”, however final allocations under the NAP will not be issued until DECC have checked and finally approved the Design Report and Verification Report.

The EU ETS permit also requires submission of a Monitoring and Reporting (M&R) Plan (see Monitoring). Applicants must also open an EU ETS UK Registry account to enable trading (see Performance Standards).

PPC Permit

All applications for a permit should be sent to Graeme Cobb at DECC EDU Licensing and Consent Unit (LCU-OED), Atholl House, 86/88 Guild Street, Aberdeen AB11 6AR (graeme.cobb@BERR.gsi.gov.uk).

EU Emissions Trading Scheme

Completed EU ETS and NER applications will be submitted electronically to both DECC Environmental Management Team and DEFRA/Environment Agency by email. Under exceptional circumstances it may be necessary to separately forward hard copies of any supporting documents. Two copies of each document should be submitted. Applications should be emailed to the following email addresses.

DEFRA/EA: etapps@environment-agency.gov.uk

DECC: emt@BERR.gsi.gov.uk

Note - Department of Energy and Climate Change (DECC) has been formed through the merger of BERR energy divisions (including Oil and Gas) with divisions of DEFRA involved with climate change (including EU ETS activities). It is not yet clear how new contact arrangements will be organised under the new government department.

PPC Permit

Any new installation or existing installation undergoing a substantial change will need a permit in place before operations or modifications commence. Applications should be submitted 6 months before start up of new combustion plant.

EU Emissions Trading Scheme

EU ETS registration and allocation must be in place before operations commence.

Verification opinions on applications for new activities must be submitted within 30 working days of receipt of the EU ETS Permit in order to be eligible for any set aside allowance (if installation is eligible to receive an allowance).

The UK has now submitted its final National Allocation Plan for Phase II of the EU ETS to the Commission and had the plan accepted. A final list of installation level allocation is available on the DEFRA website.

Any PPC Permit granted by the Secretary of State will have conditions relating to the following (amongst others) in place:

• Required pollution prevention measures in particular through the application of Best Available Technology (BAT);
• Requirement that the production of non-gaseous waste is avoided where possible by using clean technologies or using waste minimisation/waste recovery technologies;
• Energy is used efficiently;
• Necessary measures are taken to prevent accidents and limit their consequences in relation to the environment;
• Necessary measures are taken to ensure any liquid or solid wastes are recovered for onshore recycling or disposal or offshore disposal in accordance with any other relevant legislation;
• Necessary measures are taken upon cessation of activities to avoid any pollution risk and to decommission and remove the combustion installation;
• Emission controls are in place in the form of emission value limits or equivalent parameters or technical measures or a combination of the two;
• Monitoring and measurement requirements to enable verification of compliance with the permit;
• Provisions on the minimisation of long-distance and transboundary pollution; and
• Measures relating to conditions other than normal operating conditions e.g. process upsets and start-ups.

If the application includes a plan to reduce pollution from the combustion installation, then the Secretary of State may allow the condition to achieve energy efficiency to lapse but only for six months starting with the date the permit is issued.

DECC's preferred approach is to consider the direct mass emissions of combustion pollutants from the entire platform or floater, rather than emissions quantified in terms of mass emissions per unit volume of exhaust gas from each item of combustion plant. In an offshore context, it is considered that this will enable Operators to devote more resources to emissions from the bigger sources (e.g. main power generation turbines), which dominate the releases offshore.

The requirement to undertake an energy assessment is a condition of most offshore PPC permits. The energy assessment should incorporate three main elements:

• Independent review of emissions of Greenhouse Gases (GHG) and other
  atmospheric pollutants and investigation and quantification of any potential
  opportunities to reduce emissions;
• Independent review of the energy usage on an asset, and investigation and quantification of any potential opportunities to avoid energy wastage; and
• Demonstration to DECC’s satisfaction that the whole plant is being operated
  in the most energy efficient manner that is financially viable.

Guidance is now available on the methodology for undertaking an energy assessment (see Guidance)

The EU ETS Permit includes conditions specifying the activities it covers, the emissions of GHG covered and the permitted emission points. The conditions will also place an obligation on the operator to submit a detailed monitoring and reporting plan confirming the monitoring and reporting arrangements that will be implemented (see Monitoring).

Permit conditions also include details of reporting requirements. See ETS Standard Permit and Conditions (pdf file).

Each operator will have an account on the UK Registry that enables them to manage their allowances, including transfer and surrender of allowances.

The EU ETS works on a "Cap and Trade" basis, with emission caps being set for all installations covered by the scheme. Each installation will then be allocated trading allowances based on the National Allocation Plan (NAP) on the 28th February each year. In subsequent years, permitted installations must surrender a number of allocations equal to their emissions from the previous year. Operators must also have their annual emissions externally verified.

The EU ETS Registry is an online database that records:

• Carbon dioxide allowance allocations for installations;
• Annual verified emissions;
• Transaction history of allowance transfers;
• Annual reconciliation of allowances and verified emissions.

Application for an EU ETS UK Registry Account must be made online via the Registry Link (also accessible from the Environment Agency website). Guidance on applying for a Registry Account is also available here.

You must also apply for account representatives using form ETS4 (Excel File). Again, guidance is available from the Environment Agency website)

The Public Participation Directive (PPD) requires a number of aspects of public notification and consultation, and the Offshore Combustion Regulations have been amended to incorporate these:

a)       An outline of main alternatives (if any) should be included in permit applications;

b)      The public should be notified and made aware of any decisions making available relevant consents and permits with the reasons and considerations on which decisions have been based;

c)       Public notification at the earliest possible time where the information can be provided on the nature of possible decisions; and

d)      Making available within timeframes the necessary reports, advice issued to the regulator in accordance with legislation when applications were made and information relevant to a decision which only became available after advertisement of an application.

The MCA has issued a Marine Guidance Note (MGN 142) that establishes NOx emission limits for marine diesel engines with more than 130 kW power output, which are installed in ships, vessels or offshore installations constructed after 1st January 2000.  The same limits will also be applied to marine diesel engines with more than 130 kW power output which undergo a major conversion where the maximum continuous rating of an engine is increased by more than 10%.  MGN 142 also provides guidance for testing, survey and certification and for demonstrating compliance of such engines.

Where possible, direct measurements should be taken for emission reporting or generation of machine specific factors for emission calculations. Although there are inherent inaccuracies in the measurement of emissions in an exhaust stack, it is considered by DECC to be an acceptable method of determining the emissions from a machine.

Pollutant gases and the thermal efficiency of the plant have to be monitored and reported. The main pollutant gases that will need monitoring are:

1. Oxides of nitrogen and other nitrogen compounds.

2. Sulphur dioxide and other sulphur compounds.

3. Carbon monoxide.

4. Unburned Hydrocarbons - UHC*.

(* In practice, it is expected that only UHC as an overall 'total hydrocarbons' will be measured/monitored, rather than each individual hydrocarbon gases, although an indication of the ratio between methane and other hydrocarbon gases should be estimated).

In order to establish an emissions baseline, direct measurement of combustion plant exhausts must be carried out. This applies to all combustion plant including those deemed as "small combustion plant" as defined in DECC Guidance Note. Priority should be given to monitoring of the principal emitters i.e. the gas turbines. Monitoring of any remaining combustion plant, which has not been included in the first phase, should be conducted thereafter.

Predictive Emissions Monitoring Systems (PEMS) are considered an acceptable means of monitoring emissions from turbine exhausts as well as offering machine management benefits. However, direct measurements must be carried out initially to verify the emissions estimate from the PEMS.

More information on measurement and monitoring requirements can be obtained from DECC Guidance Notes, in particular information on frequency of measurements required.

The monitoring programme must be agreed with DECC before commencing the programme, and the initial survey must be completed within twelve months of first permit issue or first oil and gas. Monitoring reports must be submitted direct to DECC at emt@berr.gsi.gov.uk within 3 months of completion of each survey or by any other deadline given in the PPC permit. The frequency and scope of ongoing monitoring surveys will be reviewed following an assessment of the results of each survey.

A condition of the EU ETS permit is for the operator to submit a Monitoring and Reporting Plan to DECC for approval. Monitoring and Reporting Guidance for the Offshore Sector (Word document) is available on DECC website.

The following need to be monitored/measured under the EU ETS:

Fuel consumption;

Emissions to be reported either on the basis of calculations or direct measurement. Measurement of emissions shall use standardised or accepted methods.

DECC Guidance on Offshore Sector Monitoring and Reporting is available on DECC website. A number of guidance documents are also available on the DEFRA website including factors for CO2 emissions and useful conversion factors.

The M&R Guidance sets tiers for monitoring requirements based on accuracy of the monitoring method. The Guidelines require that the highest tier approach shall be used by operators to determine parameters for monitoring and reporting purposes. Only if it is shown to the satisfaction of DECC that the highest tier approach is not technically feasible or will lead to unreasonably high costs, may a next lower tier be used. BP has undertaken a review of fuel gas and flare gas monitoring for each asset that can be used to determine the monitoring and reporting tier.

In addition, operators must submit an Improvement Plan on an annual basis, to demonstrate how they intend to acheive monitoring and reporting requirements.

There are no set requirements for Improvement Plans, as each installation is likely to pose different challenges.

Step 1 - quantify current measurement uncertainty.

Step 2 - identify necessary improvements.

Step 3 - undertake necessary cost and engineering studies.

Step 4 - schedule and implement necessary improvements (including allocation of necessary time and resources).

If there are problems with meeting the Improvement Plan, DECC should be contacted as soon as possible to advise the delay and amended timetable. Also see Snippets.

PPC Permit

Emissions reporting is required for all relevant installations (including existing installations that do not require a PPC permit until November 2007). Annual reporting will be required thereafter. Wherever possible this data should be gathered from sampling rather than calculated from emissions factors (see Monitoring).

DECC have stated that generic emissions factors such as those produced by Oil and Gas UK will no longer be an acceptable means of estimating emissions for reporting under the Regulations. An approach more tailored to the specific equipment item will be required. In theory, there may be some scope to use vendor emission factor data to predict emissions rather than installing a monitoring port and carrying out machine specific measurements. However due to the limited dataset available, this approach could not be assumed to give good agreement in all cases. Extensive verification is required in order for such a method to meet with DECC approval.

Operators should also provide information on pathways of release, methods of relevant monitoring, sampling and analysis which are acceptable to DECC, and provide evidence that quality assurance procedures are in place to ensure all monitoring and test results are sufficiently accurate and reliable. Where the Operator uses a specialist monitoring contractor, then the Operator shall be responsible for ensuring that the appropriate technical skills, equipment, QA procedures, etc. are in place within the contractor's organisation.

EU Emissions Trading Scheme

A number of annual reports are required to be submitted:

• Annual report on improvements towards the use of the highest tier approach for monitoring of major resources (ETS5);
• Annual report on potential improvements in monitoring (ETS6); and
• Annual emissions report (ETS7).

The annual emissions report (ETS7) shall include:

• Installation/activity details;
• For each relevant activity for which emissions are calculated data to be provided on emissions factors, oxidation factors, total emissions and uncertainty;
• For each relevant activity for which emissions are measured, data to be provided on total emissions, reliability of the measurement methods and uncertainty.

Permit conditions will also include a requirement to report any breakdown or malfunction of any monitoring or reporting equipment.

Annual reports must undergo external verification before submission.

Any unused allowances at the end of each year must be surrendered (see Performance Standards).

PPC Permit

Statutory reporting required under the PPC Regime is to be submitted via the EEMS Atmospheric Reporting system. The Atmospherics reporting form can be obtained from the EEMS website.

EU Emissions Trading Scheme

The annual report on improvements towards the use of the highest tier approach for monitoring of major resources, should be undertaken using form ETS5 (Excel File). Guidance on completion of ETS5 (Excel file) is available from the Environment Agency Website. ETS5 will then need to be reviewed by your verifier, who will identify recommendations for further potential improvements and report this, together with the operators response to recommendations, using form ETS6 (Excel File). Additional guidance for the offshore oil and gas industry may also be available on DECC website.

Annual emissions under EU ETS must be reported annually using form ETS7 (Excel File available from DECC website). Guidance on completion of ETS7 for the offshore oil and gas industry is also available from DECC website. ETS7 will need to be externally verified before submission to DECC.

Monitoring and Reporting Guidance for the Offshore Sector (Word document) and Annual Emissions Reporting Verification (Word document) are available on DECC website. Additional guidance is available on the Environment Agency Website and the EU Website.

PPC Permit

Completed EEMS reports are submitted electronically to the EEMS website.

EU Emissions Trading Scheme

Completed forms should be submitted to DECC (LCU OED) by email at emt@BERR.gsi.gov.uk

PPC Permit

EEMS report to be submitted by 7th February each year. The section of the report of relevance to the PPC Permit will be verified by EEMS and then returned to the operator for signature. EEMS will then submit the verified report to DECC by the 1st March each year. For more information see the EEMS website.

EU Emissions Trading Scheme

A checklist for monitoring and reporting requirements is available on the DEFRA website. In summary:

• Annual emissions report (ETS7) to be prepared (end December/January) each year;
• Submission of verified annual emissions report (ETS7) - 31 March each year;
• Surrender allowances (from UK Registry) - 30 April each year;
• Submission of annual monitoring improvements reports (ETS5 and ETS6) - 30 June each year

The DECC Permit Condition non-compliance Notification Form is to be used for reporting any identified non-compliances against Combustion Installation Permit Conditions issued under the provisions of the Offshore Combustion Installations Regulations 2001.

Examples of these may include, but not be limited to: exceeding total annual emissions of polluting substances from combustion equipment authorised under the permit; or failure to carry out and/or submit monitoring programme survey and findings, independent energy audits, cost benefit analysis or improvement programmes if requested by the Department.  In addition the form may be used to notify DECC of any other applicable notifications. 

The completed form should be sent to offshore.inspectorate@berr.gsi.gov.uk

Note: The form must not be used as a means of applying for any routine variation to an existing permit for changes to combustion equipment. 

Additional information can be found in the PPC Non-Compliance Guidance Notes

This regulation empowers the Secretary of State to issue a notice - known as an 'enforcement notice' - where he is of the opinion that an operator has contravened or is contravening any condition of his permit. The Secretary of State will do this by issuing a notice which will state what the contravention is, what measures must be taken to remedy or prevent the contravention and the time scale in which these measures must be taken. Such measures can include the steps to be taken to remedy any pollution caused.

It is suggested that applicants prepare a PPC application (Annex 1 of DECC Guidance Notes) detailing before and after emission profiles, and use this, together with an examination for significant environmental impact, as the basis for discussion with DECC. DECC will enter into dialogue with the applicant and will give its decision as to whether the change is considered "substantial". If substantial change is deemed likely to occur, then the initial study work can be used as input to a formal IPPC application.

DECC's Substantial Change Assessment Guidance (Word document) provides details on what information is required for an assessment to be made. This Guidance is currently under review, so any queries should be directed at the appropriate Environmental Manager within DECC Team.

DECC Draft Revised EIA Guidance (currently out to consultation) details the following as a guide for evaluating substantial change.

• If there is an increase between 40,000 - 100,000 tonnes of CO2 at the host installation then this may constitute substantial change under the PPC Regulations. An application to vary the PPC permit will be required.
• If as a result of the propopsed activity there is an increase of >100,000 tonnes CO2, a new PPC application would be required.

If in the course of field production, unforeseen circumstances mean that the original permitted tonnage values of emissions are likely to show a marked increase, then either a variation to the terms and conditions of a permit can be sought, or an application for a revised permit will need to be made.

Additionally, DECC should be advised of marked change to the fuel composition or overall fuel mix.

Notification must be given to DECC at least 14 days before making a change to the operation that will affect the description of the installation and its GHG emissions.

The EU ETS application form (see Consents) may be used to apply for a new permit or to apply for a variation to an existing permit.

Note that if additional allowance is required, that this will need to be applied for from the New Entrants Reserve (see Consents), which is strictly limited. Where no allowance is available, allowances will need to be purchased through the Trading Scheme.

Two new proposed EU instruments are out for consultation by the European Commission:

• Proposal 2008/16/EC for a Directive amending Directive 2003/87/EC so as to improve and extend the greenhouse gas emission allowance trading system of the Community

• Proposal 2008/17/EC for a Decision on the effort of Member States to reduce their greenhouse gas emissions to meet the Community's greenhouse gas emission reduction commitments up to 2020

On 23 January 2008 the European Commission published a package of proposals for tackling climate change and delivering a low carbon economy in Europe. These proposals together aim to implement the decisions agreed by EU Heads of State and Government at the March 2007 Spring European Council, including a 20 per cent reduction in EU GHG emissions by 2020 from 1990 levels, increasing to 30 per cent when there is an international climate agreement; 20 per cent of total EU energy consumption to come from renewable energy sources by 2020 and measures to support carbon capture and storage (CCS). 

The proposed amendments to the EU ETS Directive discussed in this consultation document sit alongside proposals for a new Directive on renewable energy, a draft Decision allocating among Member States the responsibility for achieving emissions reductions outside the EU ETS sectors and a new Directive and Communication relating to CCS. The amended EU ETS Directive is an integral part of this package, and is therefore central to meeting the EU’s GHG reduction targets.

DEFRA has launched a consultation on the new proposals. The consultation document can be accessed on the DEFRA website. This consultation closed on 30 July 2008 but information is still available on the website.

Phase III will run 2013-2020 and will include year on year reductions in allowances with a driver of reducing EU emissions by 21% between 2005 and 2020. There will be no National Allocation Plans (NAPs) with allocations being managed centrally by the EU.

Initial Phase III reduction of 5% reduction in the EU cap compared with the average for Phase II. Another 5% will go to Phase III New Entrants Reserve. Allocation method is not yet clear. 80% of allowances will be allocated for free in 2013 declining each year to zero in 2020, except in the power sector where there are no free allowances. Where no free allowances available allocations will be made by auction. Corporate penalties will also be included. Not clear where oil and gas industry fits into the scheme (i.e. whether classed as power sector).

Carbon Capture and Storage - a separate Directive has been published. Credit will be given under EU ETS for CO2 captured and stored.

A Climate Change Bill was introduced before the UK Parliament on 14 November 2007The Bill is intended to introduce powers in order to combat climate change by setting annual targets for the reduction of CO2 emissions until 2050. The Bill sets sectoral reduction targets and targets for energy efficiency. The Bill introduces a new cap and trade scheme for large business not already covered elsewhere, so this is unlikely to impact the offshore oil and gas industry. The Bill puts into law targets to reduce carbon dioxide emissions by at least 60% by 2050 and 26-32% by 2020, against a 1990 baseline. Consideration will also be given to including other greenhouse gases and emissions from shipping. The Bill when enacted will apply to England and Wales.

A draft Scottish Climate Change Bill is due to go to the Scottish Parliament by the end of 2008.

The Merchant Shipping (Pollution) Act 2006 has enabled the UK Government to produce Regulations to implement Annex VI of MARPOL 73/78. Draft new Regulations are currently under preparation by the MCA, following extensive consultation with DECC and industry. Note: MARPOL 73/78 also defines a ship to include "floating craft and fixed or floating platforms" and these are required where appropriate to comply with the requirements similar to those set out for vessels.

International Air Pollution Prevention Certificate

Annex VI of MARPOL 73/78 is concerned with the control of emissions of ozone depleting substances, NOx, SOx and VOCs and require an International Air Pollution Prevention Certificate following survey to ensure compliance. Discussions between DECC, MCA and Oil and Gas UK`indicate that it is likely that UK installations will be given the option of obtaining a UK Air Pollution Certificate through independent surveyors or to have the survey carried out during routine DECC inspections by DECC inspector. The procedure for this survey will be contained in an Marine Safety Notice from the MCA. This procedure has yet to be formally agreed with DECC.

Exclusions/Exemptions to Annex VI

Annex VI only applies to diesel engines over 130 KW and does not apply to turbines.

Emissions arising directly from the exploration, exploitation and associated offshore processing of seabed mineral resources are exempt from Annex VI, including the following:

• emissions resulting from flaring, burning of cuttings, muds, well clean-up emissions and well testing;
• release of gases entrained in drilling fluids and cuttings;
• emissions from treatment, handling and storage of reservoir hydrocarbons;and
• emissions from diesel engines solely dedicated to the exploitation of seabed mineral resources.

In addition, Regulation 13 concerning NOx does not apply to emergency diesel engines, engines installed in lifeboats or equipment intended to be used solely in case of emergency.

Diesel Sampling

Regulation 18 of Annex VI requires that every delivery of diesel be recorded on a bunker delivery note and that a sample of each delivery to be taken and retained for 12 months. However, the MCA has taken a pragmatic approach and will not require the full MARPOL procedure to be applied for the delivery of fuel to an installation. MCA would like to see a common industry procedure developed and has been in discussion with Chamber of Shipping on this. Oil and Gas UK is involved with these discussions.

For Phase II, DECC will not allow operators to submit improvement plans that do not demonstrate progress towards meeting the required measurement or reporting tiers under EU ETS. DECC will use enforcement notices and impose deadlines on operators as necessary to ensure compliance. Where operators cannot meet imposed tiers, verifiers will be forced to confirm "non verified" annual reports. Where operators submit "non verified" annual reports, emissions levels will be set based on historical data or maximum levels of uncertainty.

The North Sea Conference meeting in May 2006 has agreed on new reduction targets for maritime air emissions from shipping traffic. It called for a 40% reduction in NOx emissions in the long term and a reduction in the permitted sulphur content in fuel from the current 1.5% to 1%.