Strategic Environmental Assessment for a framework for the development of clean coal

Transcription

1 Strategic Environmental Assessment for a framework for the development of clean coal Post Adoption Statement 1 November 2009

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3 Contents 1 Introduction 2 2 Purpose of the Post Adoption Statement 3 3 How Environmental Considerations have been integrated into the 4 framework for the development of clean coal (FDCC) 4 How the Environmental Report (ER) has been taken into account in the 5 FDCC 5 Consulting on the Strategic Environmental Assessment (SEA) and the 6 draft FDCC 5.1 Consultation on the SEA Consultation on the FDCC 8 6 Justification for the adoption of the revised FDCC Demonstration of CCS A longer term transition to clean coal 10 7 Monitoring 11 8 Future Assessments 12 9 Acknowledgements Availability of Documents 13 Lis t of Tables and Annexes Table 1.1: Issues considered within the SEA 4 Table 1.2: Summary of SEA consultation 6 Appendix A: Relationship Between SEA Stages and FDCC Development 14 Appendix B: Recommendations of the ER 17 Appendix C: Consultation s 22 Appendix D: Monitoring Framework 54 1

4 SEA on a framework for the development of clean coal: Post Adoption Statement 1 Introduction 1. The UK s pathway to reducing emissions is underpinned the Climate Change Act, which became law in The Act commits the UK to achieving at least an 80% reduction in greenhouse gas emissions 2050, compared to 1990 levels. This was the target recommended the independent Committee on Climate Change as a fair and achievable share of the target to at least halve global emissions The Climate Change Act made the UK the first country in the world to adopt a long-term legal framework for reducing emissions: a system of five-year carbon budgets, which provide a clear pathway for reducing emissions into the future and keep the UK on track. 2. In July 2009, the Government set the first three budgets covering the periods , and The strategy for how the UK is going to meet these budgets is set out in the UK Low Carbon Transition Plan: National Strategy for Climate and Energy 1. The UK is already on the path to cut emissions and to deliver around twice the emissions reductions we are committed to under Kyoto but the new carbon budgets will be stretching. The final budget period centred on 2020, requires a 34% cut on 1990 levels (or an 18% cut on 2008 levels), which requires an additional 420 million tonnes of savings. 3. The key measures to making these savings will be: a progressively declining cap on emissions in the power and industrial sectors through the EU Emissions Trading System (EU ETS); improvements in energy efficiency; supporting the uptake of low carbon power sources (including renewables, nuclear and CCS fitted fossil fuel power stations); and switching energy demand in the heat and transport sectors to lower carbon alternatives. 4. The shift to low carbon electricity generation is an essential part of the move to a low carbon economy and the challenge is to achieve this transition while maintaining the security of electricity supplies. This means ensuring that there is sufficient electricity generation capacity available, that a diverse energy mix is maintained so that the UK is not overly reliant on any one fuel or technology, and that electricity is affordable. 5. CCS technologies, which have the potential to reduce emissions from fossil fuel power stations around 90 per cent, offer the opportunity for coal to continue to be an important element of a secure and diverse low carbon energy mix and to reduce the costs of tackling climate change: the IEA estimate that the global costs of tackling climate change would increase 70% without CCS available as a proven technology for reducing emissions Although the potential of CCS in reducing emissions is clear, the high capital cost for first of a kind technology, uncertainty about financing and lack of experience in deploying the technology, mean commercial scale projects will not proceed without government support. Within this context, the UK Government has proposed measures that would step up UK efforts to demonstrate CCS on new coal power stations and create a pathway to deployment. These measures were subject to a 12 week consultation process from the 17 of June to the 9 September After reviewing the submissions, the revised package of 1 UK Low Carbon Transition Plan: National strategy for climate and energy. Department of Energy and Climate Change Carbon dioxide capture and storage: a key carbon abatement option. IEA

5 SEA on a framework for the development of clean coal: Post Adoption Statement measures for the Framework for the Development of Clean Coal (FDCC) has been amended 3 and was adopted on 9th November It now includes: No new coal without CCS. A programme of up to four commercial-scale CCS demonstrations, funded a new CCS incentive, and a requirement for any new coal power station to demonstrate the full CCS chain (capture, transport and storage) at commercial scale. A long term transition to clean coal. A rolling review process, which is planned to report 2018, will consider the case for new regulatory and financial measures to further drive the move to clean coal. The Government s ambition is to see CCS ready for wider deployment from 2020 and for any new coal plant constructed from then to be fully CCS from day one. The Government expects demonstration plant will retrofit CCS to their full capacity 2025, with the CCS incentive able to provide financial support. In the event that CCS is not on track to become technically or economically viable, an appropriate regulatory approach for managing emissions from coal power stations will be needed 7. Details on how this policy framework will be implemented are set out in the Government s consultation response As part of the development of the FDCC, it has been subject to a process of Strategic Environmental Assessment (SEA), as set out in Directive 2001/42/EC on the assessment of the effects of certain plans and programmes on the environment (which has been transposed into legislation, Statutory Instrument 2004 No.1633 The Environmental Assessment of Plans and Programmes Regulations 2004), so as to ensure that environmental considerations are properly integrated into this stage of the decision-making process. 9. SEA is an assessment process that supports decision making identifying, characterising and evaluating the likely significant effects of a plan or programme and determining how any adverse effects may be mitigated or where any beneficial effects may be enhanced. 2 Purpose of the Post Adoption Statement 10. The purpose of this Post Adoption Statement is to document how environmental considerations, the views of the consultees and the recommendations of the Environmental Report have been taken into account in the adopted FDCC. Therefore, this statement includes the following information: How environmental considerations have been integrated into the FDCC. How the findings of the Environmental Report have been taken into account. How the opinions expressed in response to the consultation on the draft FDCC and Environmental Report have been taken into account. 3 A framework for the development of clean coal: consultation response. DECC, ( 3

6 SEA on a framework for the development of clean coal: Post Adoption Statement The reasons for choosing the FDCC as adopted, in light of the other reasonable alternatives dealt with. The measures that are to be taken to monitor the significant environmental effects of the implementation of the plan or programme. 3 How Environmental Considerations have been integrated into the FDCC 11. Environmental considerations lie at the heart of the FDCC. Achieving significant reductions in carbon emissions from the use of fossil fuels will be a key element of an integrated societal response to the challenge of climate change and in the move to a low carbon economy. The Government s primary purpose is to establish a regulatory and financial framework to demonstrate clearly, in the short term, that Carbon Capture and Storage (CCS) is effective at commercial scale. This will help to make it a viable technology for wider deployment in the medium to long term, which could reduce very substantially the global carbon dioxide emissions associated with electricity generation from coal. The objectives of the FDCC are: advancing the global development of CCS technology; improving the affordability of CCS investment; delivering a diverse and secure low carbon energy supply in the UK; helping create jobs and economic opportunities for UK-based. 12. In undertaking the SEA of the FDCC, DECC has taken the opportunity to assess the range of environmental factors that the FDCC could affect and which complements those issues considered within the development of the policy documentation. The range of issues that have been considered the SEA are outlined in Table 1.1. Table 1.1 Issues considered within the Strategic Environmental Assessment Topics The key sustainability issues identified during evidence gathering and included in the assessment Climate Change the need to continue to reduce direct and indirect greenhouse gas emissions; the need to consider, adapt to and mitigate the potential impacts of climate change within all aspects of development; and the need to minimize energy usage overall and increase the proportion of renewable energy sources. Ecology the need to conserve and enhance species and habitats, recognising intrinsic value as well as the other benefits (economic, amenity, well-being) that a high quality natural environment can deliver; the need to protect and continue to improve the condition of sites, priority species and habitats designated for nature conservation; and the need to minimise habitat fragmentation and severance of migration Resource and Raw Materials routes. the need to promote the sustainable use of resources and natural assets; the need to minimise the total quantity of waste produced, and to increase the proportion of waste that is recycled and re-used; and the need to ensure that disposal of waste to landfill should be a last resort. 4

7 SEA on a framework for the development of clean coal: Post Adoption Statement Topics The key sustainability issues identified during evidence gathering and included in the assessment Economy and Skills the need to promote sustainable growth in the national economy and specifically to increase the Gross Value Added from the UK energy sector; the need to improve the reliability of the national energy supply; the need to minimise the effects on competition in the energy market; the need to promote investment for the long term; the need to increase the national skills base; and the need to ensure that energy costs to consumers are proportionate and that specific groups (such as SMEs, communities, social groups) are considered. Flood Risk and Coastal Erosion the need to avoid an increase in flood risk (including coastal flood risk) and to avoid siting flood sensitive infrastructure in areas of high flood risk or at increased risk of coastal erosion. Water Quality the need to protect and enhance surface (including costal) and groundwater resources (including distribution and flow). the need to protect and further improve river, groundwater and bathing water quality and minimise pollution (from both point and diffuse sources); and the need to encourage improved water efficiency. Traffic and Transport the need to minimise the detrimental impacts of travel and transport on communities and the environment, whilst maximising positive effects. Landscape, Townscape and Visual Archaeology and Cultural Heritage the need to protect the diversity and natural beauty of landscapes, and to minimise the effects on landscape character with landscapes designated as nationally important such as National Parks and AONBs; and the need to protect and enhance the character of townscapes the need to protect or enhance sites of archaeological importance and cultural heritage interest, taking account the diversity of cultural heritage that occurs in both rural and urban areas (such as World Heritage Sites, designated sites and onshore and offshore sites). Air Quality the need to protect and enhance air quality on a local, regional, national and international scale Soil and Geology the need to manage the subsurface environment on and off-shore sustainably and safely; the need to conserve and improve the quality of land used for agriculture; the need to prioritise the re-development of previously developed land and derelict buildings where possible; and the need to maintain and enhance the area of open land. Health and Wellbeing the need to minimise any effects on health inequalities and deprivation; the need to ensure adequate standards of physical health or well-being of the population; and the need to address perceptions of risk. 13. The issues contained within Table 1.1 set the environmental context for the assessment and were identified in the Scoping Report (April 2009), which informed the topic areas considered in the subsequent assessment. These issues were reflected within the draft SEA objectives presented in the Scoping Report and in the finalised SEA objectives, and questions, used in the assessment process as documented in the SEA Environmental Report (June 2009). 4 How the Environmental Report has been taken into Account in the FDCC 14. The Environmental Report and the draft FDCC were developed in tandem. Table A.1 in Appendix A details key stages of the SEA and its relationship with the development of the FDCC. 5

8 SEA on a framework for the development of clean coal: Post Adoption Statement 15. The assessment proposed a number of recommendations for DECC s consideration, the majority of which relate to requirements to be considered developers when taking forward specific CCS demonstration projects. Many of DECC s responses therefore refer to the guidance and direction given in the draft National Policy Statements for Energy Infrastructure. These are presented in Table B.1 in Appendix B. Recommendations that are not covered within existing permitting or consenting processes are listed in Table B.2.. In addition, DECC proposes to gather evidence for further assessments of CCS technologies, both prior to and during demonstration, to inform how they might be regulated in the future (see Section 1.8). 5 Consulting on the SEA and the draft FDCC 5.1 Consultation on the SEA 16. Consultation has been an integral part of the SEA and the draft FDCC. DECC has engaged with key stakeholders and the statutory consultees in a variety of ways and has sought to ensure that stakeholders take advantage of the opportunity to comment on the draft FDCC. Table 1.2 outlines the process of consultation on the SEA of the draft FDCC. Table 1.2 Summary of SEA consultation Publication/Event Consultees Date Scoping Report SEA statutory consultees: the Environment Agency, English Heritage, Natural England, Department of the Environment s Environment and Heritage Service (Northern Ireland), Historic Scotland, Scottish Natural Heritage, Scottish Environment Protection Agency, Cadw (Welsh Historic Monuments), Countryside Council for Wales, and the Environment Agency Wales. Additional key stakeholders: the Sustainable Development Commission; the Department of Health; Department for Environment, Food and Rural Affairs, Better Regulation Executive;Health and Safety Executive; and Health Protection Agency. Scoping Workshop Environmental Report Statutory Consultees and key stakeholders were invited Consultation with the public, Statutory Consultees and Stakeholders 8 April 2009 to 13 May May June 2009 to 9 September 2009 Post adoption statement & adopted framework for the development of clean coal published N/A 9 November DECC consulted on the content of the Scoping Report not only with the UK statutory SEA bodies (including the Environment Agency, Natural England and English Heritage), but also with other key stakeholders (including the Department of Health, Department for 6

9 SEA on a framework for the development of clean coal: Post Adoption Statement Environment Food and Rural Affairs; the Sustainable Development Commission; the Health and Safety Executive; and the Health Protection Agency). The SEA Scoping Report was sent to all these organisations. 18. During the statutory five week consultation period, which ran from 8th April 2009 to 13th May 2009, nine organisations sent comments on the Scoping Report: the Northern Ireland Environment Agency, the Environment Agency, the Department of Health, Natural England, the Countryside Council for Wales, the Health Protection Agency, the Scottish Environment Protection Agency, Scottish Natural Heritage and Historic Scotland. 19. The responses were used to amend some of the baseline information, and the questions used for undertaking the assessment. None of the responses suggested changing the general approach to assessment, and as such, this has been undertaken as set out in the Scoping Report. 20. Once the Environmental Report was complete it was issued for a 12 week consultation period from the 17 June to 9 September Included within the Environmental Report were four questions that were posed to stakeholders: 1. Do you believe that the assessment identified the likely significant environmental effects arising from the aspects of FDCC and potential alternatives? 2. Do you believe that any further measures are necessary to prevent, reduce or offset likely significant effects of the aspects of FDCC? 3. Do you believe any further monitoring measures are necessary to monitor the significant effects for implementing the Aspects of FDCC 4. Do you agree with the conclusions and recommendation of the Report? 21. In total, eight responses to the Environmental Report were received. These were from the following: Countryside Commission for Wales, Client Earth (CE), Environment Agency (EA), Greenpeace, Natural England, Paul Hatchwell (independent), Scottish National Heritage (SNH) and WWF UK. 22. A summary of responses is provided in Appendix C. The issues that were raised include comments on: assessment (covering principles, revisiting the approach and commenting specifically on individual topics); cumulative assessment; Habitat Regulations; additional information; mitigation; monitoring; 7

10 SEA on a framework for the development of clean coal: Post Adoption Statement further study. 23. DECC s responses to the individual points raised respondents to the SEA consultation are also set out in Appendix C. 5.2 Consultation on the FDCC 24. The consultation a framework for the development of clean coal was launched on 17 June 2009 and closed on 9 September The document sought views on the design of a financial incentive to support the delivery of up to four CCS demonstration projects in the UK and a regulatory framework for coal power stations that would drive the development and deployment of CCS technologies and reinforce the expectation that emissions from coal power stations will be substantially reduced in the 2020s. 25. The consultation document was made available online and sent out in hard copy on request. A consultation address (coalandccsconsultation@decc.gsi.gov.uk) was set up, to which all stakeholders were invited to submit their comments. 26. A total of 2,348 responses to the consultation were received. 27. Many responses welcomed the consultation document as a clear commitment from Government to the development of Carbon Capture and Storage (CCS) technologies. Respondents were broadly supportive of the framework s objectives of advancing global development of CCS technology, improving the affordability of investment, delivering a diverse and secure low carbon energy supply and helping to create jobs and economic opportunities in the UK. 28. However, there was a general view that the framework of financial and regulatory measures for the development of clean coal as proposed would not fully enable delivery of those objectives. Industry respondents thought that the open-ended nature of the proposed approach to a requirement to retrofit and contingency policy presented major risks to investors. To help alleviate this, it was argued that a clear roadmap was required investors detailing timescales to wide-scale CCS deployment. Many Non-Government Organisations (NGOs) argued for higher levels of ambition in the trajectory to a decarbonised electricity system. 29. A wide range of suggestions were made on all aspects of the proposals including those relating to funding and regulation. 30. Government published the responses received from organisations, together with a summary of all the consultation responses, on 9th November Justification for the adoption of the revised FDCC 31. In amending the framework for the development of clean coal, DECC reflected on the wide range of views given in the responses to the consultations on the FDCC proposals and the Environmental Report and has also considered the advice from the Committee on Climate 4 A framework for the development of clean coal. DECC, ( 8

11 SEA on a framework for the development of clean coal: Post Adoption Statement Change in their first annual report 5, published on 12 October The proposals have been refined in order to better meet the objectives of the FDCC, which remain to: advance the global development of CCS technology; improve the affordability of CCS investment; deliver a diverse and secure low carbon energy mix in the UK; and, helping create jobs and economic opportunities for UK-based businesses in a new industrial sector. 32. In general terms, DECC considers that the amended proposals are justified the Environmental Report, as supplemented Appendices B and C, and the analysis in the FDCC proposals, as modified the consultation response 6, key points of which are set out below. 6.1 Demonstration of CCS Scale 33. Each of the stages of CCS has already been used successfully in other applications. However, while pilot projects for power generation (up to about 30MW) have been taken forward and will provide valuable lessons, CCS has never been applied at commercial scale as an end-to-end process on a power station. There is a consensus, reflected the declared aims of the G8, the IEA, and the European Technology Platform for Zero Emission Fossil Fuel Power Plants, that the next step towards commercialisation of CCS is commercial scale demonstration. 34. Government has confirmed that it will require any new coal power station to demonstrate CCS at commercial scale with immediate effect, as proposed in the consultation on the FDCC, and has decided that the requirement should also apply to existing power stations that are upgraded to supercritical boiler technology since they are likely to have an equivalent lifespan. This is intended to incentivise effective and timely development of CCS through actions and risks shared the industry and Government and pave the way for further reductions in emissions from coal power stations in the UK and globally in the longer term. With immediate effect, any new coal power station in England and Wales must incorporate a commercial scale CCS demonstration covering all three parts of the CCS chain (carbon dioxide capture, transport and storage) on at least 300MW net of the plant s capacity. 35. Some respondents (both to the consultation on the FDCC and on the consultation of the Environmental Report as part of the SEA) suggested that Government should preclude any new unabated coal capacity requiring CCS to be demonstrated on 100% of the capacity of any new coal power station. This option was considered within the scale dimension of 5 Meeting Carbon Budgets - the need for a step change. Committee on Climate Change, A framework for the development of clean coal. DECC, ( 9

12 SEA on a framework for the development of clean coal: Post Adoption Statement the reasonable alternatives during the scoping phase of the SEA, but was ruled out on the basis that it would not deliver on value for money grounds. Government s view is that, at this stage, capturing carbon dioxide from at least 300MW net of a plant s capacity is an ambitious and necessary first step to seeing wider application of CCS. A demonstration at this scale recognises the need to secure value for money and the diminishing returns for learning once the demonstrations pass a minimum commercial scale. There is therefore no justification for going further given the objectives of the FDCC and the Government s wider policy framework for reducing emissions from the power sector, which is centred on the EU ETS. Further, smaller demonstration projects have lower costs, making it more likely so that Government will be able to support a wider range of technologies, each of which may have particular advantages or disadvantages in the future. (See further Appendix C, nos. 4 and 7.) Technology 36. As proposed in the consultation, the demonstration programme will seek to test both preand post-combustion capture technologies (which could include oxyfuel), rather than concentrate on any one technology, so that the UK can gain experience of, and establish expertise in, a variety of technologies. However, DECC has specified that a maximum of two of the projects will cover post-combustion capture, which limits the amount of new unabated coal capacity in the UK. (For technical reasons, it is only possible to capture emissions from an entire unit of an Integrated Coal Gasification Combined Cycle (IGCC) plant and any other units are expected to use gas as their fuel. Post-combustion CCS, however, can proceed on any proportion of a conventional pulverised fuel coal plant s capacity, and the remaining portion will be fuelled coal.) 37. Although the Environmental Report indicated that the different technologies (precombustion, post-combustion, oxyfuel) may differ in their potential environmental effects on the range of topics assessed, no single technology was preferred every measure. (For example, pre-combustion and oxyfuel would be preferred on the grounds of lower resource requirement, whereas post-combustion uniquely facilitates retrofit to existing power stations). Therefore, there was no evidence from the Environmental Report, or from stakeholder responses, that suggested any technologies should be discounted at this stage. Eligibility 38. Government will provide funding for a programme of up to four commercial-scale CCS demonstrations on coal power stations. Government has decided that this programme should be open to coal power stations dedicated to serving large industrial installations, as well as those serving the grid. This should add to the number and diversity of projects that come forward, maximising the prospects for achieving the demonstration programme s objectives. 6.2 A longer term transition to clean coal 39. The consultation on the FDCC set out Government s ambition for CCS to be proven 2020 and proposed that an independent review would decide whether CCS were technically and commercially viable for full CCS retrofit, and if not, what further action was needed to either develop the technology or control the emissions from coal power stations should CCS appear not to be a viable technology. Government has decided to move away from a concept of testing when CCS is technically and commercially proven (which is in any case difficult to determine in generic, rather than plant-specific terms) to a broader assessment of 10

13 SEA on a framework for the development of clean coal: Post Adoption Statement the prospects for retrofit in relation to the status of CCS and its role in decarbonisation of the electricity mix. 40. DECC has decided to bring the review process into Government, informed expert advice, rather than having it carried out an independent body. This decision reflects the fact that a key driver in early CCS deployment is likely to be the availability of publicly funded financial support about which only Government can ultimately make decisions. 41. While the FDCC consultation proposed a single review of CCS technologies in 2020, Government has decided to maintain a rolling review drawing on expert advice from the Environment Agency, the Committee on Climate Change, and others, with demonstration projects in the UK, EU and globally providing a source of evidence on the technical, economic, environmental and safety performance of CCS and any other relevant matters. This is in recognition of the fact that the status of CCS technologies may change rapidly and a rolling review will better allow Government to keep abreast of developments and respond in a timely fashion. 42. Furthermore, DECC has decided to bring the report date forward from 2020 to 2018, so that new policies will be able to come into effect earlier. The EU is aiming to have a programme of up to 12 CCS demonstrations operational 2015, therefore this could allow a 2018 review to include three years of evidence on the costs and performance of the capture, transport and storage elements of the CCS chain, including an early indication of the integrity of those storage sites tested. 43. Drawing on the evidence base collated through the rolling review process, Government will publish a report 2018 that will consider the case for new regulatory and financial measures to drive the move to clean coal within the context of wider progress on the move to a decarbonised electricity system. Further high level environmental assessment work may form part of the review process as and when appropriate. 7 Monitoring 44. Monitoring should be focussed upon the: significant effects that may give rise to irreversible damage, with a view to identifying trends before such damage is caused; and significant effects where there was uncertainty in the assessment of the FDCC and where monitoring would enable preventative or mitigation measures to be undertaken. 45. The Environmental Report identified a need for focus on monitoring for the topics of climate change, ecology, water quality, air quality, and soil and geology. Specific additional monitoring suggestions were made consultees and are outlined in the summary of consultation in Appendix C. Monitoring measures are outlined in Appendix D and will be refined as necessary as more information about CCS technologies emerges. 46. The monitoring programme will use existing regulatory regimes and data collection processes to provide information for these potential environmental impacts. In consequence, DECC will make use of information collected a range of existing statutory agencies such as the Environment Agency and Natural England. Additionally, the measures identified in the Offshore SEA will be particularly relevant to the monitoring of transport and storage of CO 2. 11

14 SEA on a framework for the development of clean coal: Post Adoption Statement 47. As identified in the Environmental Report, monitoring of CCS demonstrations will be particularly important. Firstly because CCS has not yet been demonstrated at commercial scale and so it may well be necessary to refine mitigation measures as understanding of the CCS chain and its impacts develops; and secondly because an assessment of whether and when wider CCS deployment is appropriate will need to consider environmental and safety factors, for which the monitoring of CCS demonstrations can provide an evidence base. Government plans to give the Environment Agency an on-going role in monitoring CCS demonstration plants through secondary legislation under the Pollution Prevention and Control Act This will contribute to the broader rolling review process, which will be informed advice from the Environment Agency. The new regulations will require CCS demonstration plant operators to hold a valid permit as a condition of operation and will be consulted on in early Future Assessments 48. DECC proposes to gather evidence for further assessments of CCS technologies, both prior to and during demonstration, to inform how they might be regulated in the future. 49. The principal sources of such evidence will be: updating of its Strategic Environmental Assessment for offshore energy developments, which already covers oil and gas and wind, to cover a range of emerging technologies including geological storage of carbon dioxide; the reports which successful applicants for Section 36 consent (or in due course a development consent order under the Planning Act 2008), to build fossil fuelled power stations over 300MW in size, will be required to make to DECC on the technical feasibility of CCS retrofit. Operators will be required to complete these reports within 3 months of first exporting electricity to the grid and every 2 years thereafter 7 ; from a rolling review of progress with CCS technologies from demonstration projects in the UK, EU and globally covering technical, economic, environmental, safety and other relevant matters; from evidence collected the Environment Agency as part of CCS demonstration monitoring under new secondary legislation to be made under the Pollution Prevention and Control Act As part of the planned 2018 report, the question of retrofit to demonstration projects will be considered. In the event that CCS is not on track to become technically or economically viable, preventing retrofit, an appropriate regulatory approach for managing emissions will be needed. The review will consider what additional measures, consistent with and complementary to the EU ETS and any other market interventions that are in place, are necessary - for example, an emissions performance standard way of a plant level cap. 7 Guidance on Carbon Capture Readiness (CCR) for Section 36 Electricity Act 1989 Consent Applicants. ( 12

15 SEA on a framework for the development of clean coal: Post Adoption Statement 51. Environment Agency expertise will be an important contributor to the review, and we expect that they will draw on evidence that they will be collating to provide an evidence base for the BAT (Best Available Techniques) process: we want to see CCS identified as BAT as early as possible, although economic factors may mean that this is unlikely to be possible The Environment Agency s ongoing contribution to the information exchanges that inform BAT assessments across Europe, through the BAT reference documents, will be essential. 52. There are significant business opportunities presented CCS and from our natural assets in the North Sea and it is important that UK business is able to maximise these benefits. We are considering how best to ensure that the demonstration programme contributes to this process and will be reviewing both the objectives and criteria for selection of projects to take account of this. The Government will be publishing a CCS industrial strategy that considers the wider issues of innovation, skills and infrastructure. 9 Acknowledgements 53. DECC would like to thank Entec UK for help with undertaking the Strategic Environmental Assessment on a framework for the development of clean coal and in evaluation of responses received on the Environmental Report. 10 Availability of Documents 54. The adopted Framework for the Development of Clean Coal along with the Environmental Report and this Post Adoption Statement are available on the DECC website at: The documents are also available for inspection free of charge at the following address:- Department for Energy and Climate Change 3 Whitehall Place London SW1A 2AW 13

16 Appendix A: Relationship Between SEA Stages and FDCC Development Table A.1 Relationship between SEA Stages and FDCC development SEA Stage Relationship with FDCC Development Stage A: Setting the context and objectives, establishing the baseline and deciding on the Scope Identifying other relevant The SEA Directive requires: plans, programmes and an outline of the contents, main objectives of the plan or programme and environmental protection relationship with other relevant plans and programmes (Annex 1(a)), and objectives the environmental protection objectives, established at international (European) Community or Member State level, which are relevant to the plan or programme and the way those objectives and any environmental considerations have been taken into account during its preparation. (Annex 1(e)) The SEA scoping process identified and reviewed other relevant plans, programmes, policies and strategies that were applicable to the FDCC and outlined the nature of the relationship with other relevant plans and programmes. These included plans and programmes at an international, European or national level covering a variety of topics (including spatial and resource planning). Of particular relevance to the FDCC included: UN Framework on Climate Change Air Quality Framework Directive (96/62/EC) Birds Directive (Directive 79/409/EC) Habitats Directive (Directive 92/43/EC) Integrated Pollution Prevention and Control Directive (96/61/EC) Water Framework Directive (2000/60/EC) The Climate Change Act 2008 Planning Policy Statement 1: Delivering Sustainable Development Collecting baseline information Planning Policy Statement 23: Planning and Pollution Control The SEA Directive requires an assessment of: the relevant aspects of the current state of the environment and the likely evolution thereof without implementation of the plan or programme. (Annex 1 (b)) the environmental characteristics of areas likely to be significantly affected. (Annex 1 (c)) the existing environmental problems which are relevant to the plan or programme including, in particular, those relating to any areas of particular environmental importance, such as areas designated pursuant to Directive 79/409/EEC and 92/43/EEC. (Annex 1 (d)) Baseline information has been collected for the following topics: climate change, ecology, resources and raw materials, economy and skills, flood risk and coastal erosion, water quality, traffic and transport, landscape, archaeology, air quality, soil and geology and health. These include those topics required the SEA Directive and that were identified and consulted upon in the Scoping Report. It is only with sufficient knowledge of the existing baseline conditions that the key potential effects of the 14

17 SEA Stage Relationship with FDCC Development FDCC could be identified, characterised and assessed. Identifying environmental For each topic, within the analysis of the existing baseline and its future problems evolution, relevant environmental problems were identified. Developing SEA objectives The SEA objectives have been informed examination of the baseline evidence, incorporating the identification of key issues, the review of policies, plans and programmes; and the comments received during the consultation on the Scoping Report. They were developed to allow for a comprehensive assessment of the likely effects of the FDCC implementation covering the relevant social, economic and environmental aspects. Stage B: Deciding the scope of the SEA and developing strategic alternatives Testing the plan or The FDCC objectives were considered against the SEA objectives and programme objectives were found to broadly reinforce the achievement of specific SEA against the SEA objectives objectives, notably those on climate change and economy and skills. No Assessing the strategic alternatives Consulting on the scope of the SEA Stage C: Assessing the effects of the plan or programme Predicting the effects of the plan or programme, including alternatives Evaluating the effects of the plan or programme, including alternatives Mitigating adverse effects amendments were suggested as part of this testing. Reasonable alternatives identified against the objectives of the FDCC were based on the following three factors - the technology, timescale, and scale of operations. Each of these alternatives was considered against the objectives within the summary of assessment contained in the Environmental Report. The scoping consultation also provided the opportunity for additional alternatives to be proposed stakeholders and these were also considered DECC with a response to each given in the Environmental Report (Table 2.1). SEA Regulation 9 requires a determination as to whether the proposed plan or programme is likely to have significant environmental effects. Prior to making this decision, DECC took into account the criteria specified in Schedule 1 to the Regulations and consulted the consultation bodies for a five week period. The statutory SEA bodies are identified as: the Environment Agency (England and Wales); Scottish Environment Protection Agency (SEPA); Department of the Environment Northern Ireland (DoENI); English Heritage; Historic Scotland; Cadw (Welsh Historic Monuments; Natural England; Scottish Natural Heritage; Countryside Council for Wales. Scoping consultation for the SEA of the FDCC went beyond these statutory bodies and included the Department of Health, Department for Environment, Food and Rural Affairs, Better Regulation Executive, the Health Protection Agency,the Sustainable Development Commissions and the Health and Safety Executive. A workshop was also held during the five week consultation process to which all consultees were invited. All comments gained during scoping consultation were recorded and documented in Annex E 5 of the Environmental Report. The likely significant effects of the FDCC and the reasonable alternatives have been identified, characterised and assessed against the following topics: climate change, ecology, resources and raw materials, economy and skills, flood risk and coastal erosion, water quality, traffic and transport, landscape, archaeology, air quality, soil and geology and health. For each topic, the relevant methodology to determine significance is referenced, any uncertainties are outlined and where relevant, mitigation and enhancement measures are proposed. This is 15

18 SEA Stage Relationship with FDCC Development contained in the Environmental Report (the NTS, section 4 and Annex A1 to A12). Proposing measures to Monitoring proposals for the likely significant effects of the implementation monitor the environmental of the FDCC were proposed within the Environmental Report the NTS, effects of plan or section 4 and Annex A1 to A12). Consultees comments were invited and programme received on this aspect of the Environmental Report. These have been implementation given due consideration DECC and revised. These have also been linked to commitments in the FDCC for monitoring; along with other DECC initiatives concerning monitoring the effects of the implementation of the energy infrastructure NPSs and with the monitoring requirements associated with the offshore licensing. Preparing the DECC collaborated with Entec on the completion of the Environmental Environmental Report Report. DECC provided specific input into those sections of the Environmental Report that described the FDCC and the reasonable strategic alternatives. DECC also provided considered responses to the proposals for alternatives made the stakeholders during scoping of the Environmental Report. Stage D: Consulting and decision making Consulting on the draft Consultation with the public, statutory consultees and other stakeholders plan or programme and the was undertaken between 17th June 2009 to 9th September Environmental Report responses were received on the Environmental Report and approximately 2,300 responses were received on the draft FDCC. These are summarised in this Post Adoption Statement and in DECC s summary of responses 8. Assessment of significant No changes were made to the FDCC DECC that would significantly changes Decision making and provision of information change the conclusions of the Environmental Report The revised FDCC is published on 9th November, accompanied this Post adoption Statement. Section 1.6 outlines the reasons why DECC has adopted the final FDCC. Stage E: Monitoring implementation of the plan or programme Monitoring implementation of the plan or programme Section 1.7 of this Post Adoption Statement contains the monitoring measures that will be used to monitor and assess the effects of implementation. This will be refined, as necessary, as more information about CCS technologies emerges. 8 A framework for the development of clean coal: consultation response. DECC. November

19 Appendix B: SEA Recommendations The assessment proposed a number of recommendations for DECC s consideration, the majority of which relate to requirements to be considered developers when taking forward specific CCS demonstration projects. Many of DECC s responses therefore refer to the guidance and direction given in the draft National Policy Statements for Energy Infrastructure. These are presented in Table B.1 (all references are based on the draft National Policy Statements published on 9 November 2009) 9. Recommendations that are not covered within existing permitting or consenting processes (such as those defined the National Policy Statements) are listed in Table B.2. Table B.1: FDCC Assessment SEA Recommendations and DECC s No Topic SEA Recommendations DECC s 1. Resources and raw materials 2. Resources and raw materials Ensure that developers are given clear direction to reference measures during pipeline installation that minimise excavation waste and re-use excavation waste locally. Ensure that developers reference the range of potential mitigation measures identified in the Environmental Report when considering potential effects on resource use and waste generation. Measures identified in the Environmental Report include: process development, including full scale plant trials, to develop and optimise carbon capture technologies, This practice is already in use and is regulated the Environment Agency under the Environmental Permitting (England & Wales) Regulations Developers of infrastructure that are defined as nationally significant infrastructure projects under the Planning Act 2008 will also need to accord with the direction given in the National Policy Statements (NPSs) for Energy Infrastructure. EN-1 (the Overarching Energy NPS) requires that applicants should set out the arrangements that are proposed for managing any waste produced. These issues are reflected in the direction given to the IPC and developers in EN-1 and EN-2 (the Fossil Fuel NPS). EN-1 sets out the issues with regard to CCS, guidance on good design and the requirements for the developer to set out waste 9 Draft National Policy Statements can be downloaded from: 17

20 No Topic SEA Recommendations DECC s 3. Flood risk and coastal erosion 4. Flood risk and coastal erosion including the materials use for a particular coal type; There is potential to make choices and optimise operational and capital investment components of a particular deployment, for example, increasing plant size (e.g. height of CO 2 absorption and stripper towers) which increases process efficiency at the cost of greater equipment size; locate power stations close to CO 2 storage locations to reduce effects from transport; locate pipelines so as to minimise excavation waste (including laying on the sea bed where no excavation is required); re-use excavation waste locally; and exploit efficiencies of scale for surface transport with shipping, with the lowest costs and emissions per tonne, preferred to rail transport, which are both preferred to road transport. Ensure that developers reference the requirements that flood resilience should be built in to CCS plants and FRA/FCA can address pipeline issues at the planning stage. National Flood and Coastal Defence Databases should be consulted at planning application stages along with any third party owners of flood defences. Ensure that developers are given clear direction to reference in the design of installations, where coasts are not defended against flood risk or coastal erosion and are mobile, to coastal change. management practices. It requires that the applicant should seek to minimise the volume of waste produced and the volume of waste sent for disposal unless this is inconsistent with the best overall environmental outcome. These issues are reflected in the direction given to the IPC and developers in EN-1. EN-1 states that flood risk assessments (FRAs) will be required for energy projects of 1 hectare or greater in Flood Zone 1 and for all proposals for energy projects located in Flood Zones 2 and 3. This includes consideration of the need to be safe and remain operational during a worst case flood event over the development s lifetime. In determining the application, the IPC is directed to consider (amongst other things) whether, in flood risk areas, the project is appropriately flood resilient. These issues are reflected in the direction given to the IPC and developers in EN-1. EN1 states that the FRAs should identify and assess the risks of all forms of flooding to and from the project and demonstrate how these flood risks will be managed, taking climate change into account. The FRA will need to consider the effects of a range of 18

21 No Topic SEA Recommendations DECC s 5. Flood risk and coastal erosion Ensure that developers are given clear direction to reference a worst case end use for flood assessment in order to demonstrate that flood risk, including surface water runoff, of a CCS equipped coal plant can be effectively managed. 6. Water Quality Ensure that developers are given clear direction to undertake local studies that can establish, for instance, the depth to underlying aquifers, the site connectivity and pathways to sensitive water abstractions and designated water bodies, the water quality and ecological value of receptors. 7. Air Quality Ensure that developers are given clear direction to undertake assessments of air emissions from plant as there is uncertainty around the overall effects on local NOx and SOx emissions; which is dependent on the type of technology that comes forward for CCS flooding events including extreme events on people, property, the natural and historic environment and river and coastal processes. These issues are reflected in the direction given to the IPC and developers in EN-1. EN-1 states that the applicant considers if there is a need to be safe and remain operational during a worst case flood event over the development s lifetime. These issues are reflected in the direction given to the IPC and developers in EN-1. EN-1 requires that the applicant should undertake an assessment of the existing status of, and impacts of the proposed project on water quality, water resources and physical characteristics of the water environment. EN-1 also requires that an applicant should describe the existing water resources affected the proposed project and the impacts of the proposed project on water resources. These issues are reflected in the direction given to the IPC and developers in EN-1. EN-1 states that the applicant should identify where the project is likely to have adverse effects on air quality and the applicant should undertake an assessment of these impacts. The applicant should describe any significant air emissions, their mitigation and any residual effects distinguishing between the construction and operation stages, and taking account of any significant emissions from any road traffic generated the project. EN-2 directs the IPC to be satisfied that any consent it grants takes account of likely environmental impacts resulting from air emissions and that in the case of SOx, NOx or particulates it follows 19