ENVIRONMENTAL SCIENCE FOR THE EUROPEAN REFINING INDUSTRY Petroleum Products in the REACH Regulation, Stewardship Conference, SCL 1 June 2015
Disclaimers Considerable efforts have been made to assure the accuracy and reliability of the information contained in this presentation. However, neither Concawe nor any Company participating in Concawe can accept liability for any loss, damage or injury whatsoever resulting from the use of this information. The presentation is provided by Concawe and does not necessarily represent the views of any Company participating in Concawe. s 2
What will be presented today Introduction to CONCAWE The European Regulatory setting The Petroleum Product Stewardship delivered by Concawe Product Stewardship and Supply Chains CLP activities REACH Activities Future developments and Concawe activities Conclusions 3
CONservation of Clean Air and Water in Europe Established as a European association for research on health, safety, and environmental (HSE) issues of importance to the European oil refining industry in 1963 Objectives: Founders: Shell, Esso, Mobil Oil, BP, Caltex & Gulf Eastern. Acquire adequate scientific, economic, technical, and legal information on HSE issues Improve the understanding on these issues by the industry, authorities, and consumers Operating principles: Sound science Cost-effectiveness of options Transparency of results Our research reports are available at www.concawe.org 4
Concawe (EPRA) Membership 42 members, representing ~100% of the European refining capacity 5
Evolution of CONCAWE s Research Activities Air Quality Water Quality Noise Oil Pipelines Health Safety 1963 1973 1983 1993 2003 2013 Product Classification & Labeling Product Stewardship Fuels & Emissions Existing Subst. Refining Technology REACH 6
EU 3-Tier Environmental Protection Legislation 1. s defining Environmental Quality Standards 1. Ambient Air Quality (2008/50/EC) 2. Water and Ground Water Standards (2000/60/EC, 2006/105/EC, 2013/39/EU) Include soil & ground water through the daughter (2006/118/EC) 3. The EU thematic Soil Strategy (COM(2006) 231) 2. Emissions 1. European Pollutant Release and Transfer Regulation (EC 166/2006) 2. Urban Waste Water Treatment (5/91271/EEC) 3. Industrial Emissions (IED, 2010) Since 1996 and already amended 3 times, last update IED (2010/75/EU) Includes Air & Water targets and obligations to reduce & Soil base line requirements 3. Substances allowed on the EU-Market 1. Fuel Quality (98/10/EC, 1993/32/EC & 2009/30/EC) 2. REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals, EC 1907/2006) 3. Classification, Labelling & Packaging (EC 1272/2008) 4. Transport of Dangerous Goods (Road, Rail & Inland Water ways (2008/68/EC)) 5. Waste Framework (2008/98/EC) 7
Soil, Water and Waste Legislative Environment Chemical analysis and monitoring of water status U-WWTD Urban Waste Water Treatment IED Industrial Emission E-PRTR Pollutants Release and Transfer Register Environmental Quality Standards Marine Strategy Framework Waste Incineration Council Decision on Biodiversity Water Framework Pollution by substances (2006/11EC) Waste Framework Birds Habitat Groundwater Protection Thematic Soil Strategy Environmental Liability REACH Substances Assessment of Flood Risks Sewage Sludge Application 8
Concawe and Product Stewardship Concawe Product Stewardship activities include all advice Concawe provides to its Members and third parties either for regulatory compliance or voluntary actions to ascertain that Petroleum Substances can be handled safely during their whole life-cycle, including the waste stage. Create the awareness that Petroleum Substances are intrinsically hazardous and need to be handled accordingly. This information is available for Members and other REACH registrants enabling compliance with legislation and Company practices regarding providing product information, handling advice and risk management measures to their first line customers. Neither Concawe nor its Members have any legal competence to enforce that this information propagates further through the supply chain Enforcement of this is a Competent Authority responsibility Product Stewardship is not equal to Extended Producer Responsibility Product Stewardship passes on this responsibility to everyone involved in the Supply chain and life-cycle of the product. This includes not only the prime manufacturers, but also importers, retailers, consumers, waste processers and recyclers. 9
Petroleum Substance supply chains in REACH Refinery Distribution & formulation PS Automotive fuels Depots & terminals Shipping fuels Professional use Articles containing PS Aviation fuels Petrochemical plant Formulation plant A Products Articles with transformed PS Heating fuels Shoe polish Solvents Chemical plant Formulation plant X Households Detergents Paints 10
REACH PS* supply chains within boundaries for Concawe Refinery Distribution & formulation PS Automotive fuels P S Depots & terminals Shipping fuels Formulator Producer Articles containing PS Aviation fuels Includes clear PS* uses supported by a Concawe Member throughout the whole supply chain: Fuels, intermediates, base oils, extender oils, bitumen, etc. May include uses and articles that contain PS*, as produced Candles, DIY Bitumen roofing, Tyres, etc. Requires that adequate information is provided by the downstream supply chain enable compliance with the REACH assessment requirements (No data, no support!) Heating fuels Households * PS = Petroleum Substance 11
Substance, products & information flow REACH Registrant Producer 1 ECHA Legend Substance & information flow Information flow Product flow Customer 1 Producer 1 Customer 2 Producer 2 Substance flow REACH Registrant Customer 3 Distributor 1 Customer 4 Producer 3 Customer 5 Distributor 2 Customer 6 Distributor 3 Customer 7 Importer 1 Producer 4 Customer 8 Producer 5 Business sector Customer 9 Importer 2 Distributor 4 End user 1 Consumer End user 2 Professional End user 3 Professional End user 4 Consumer Article 1 Simplified hypothetical substance market & supply chains 12
CLP CONCAWE and the implementation challenges Maintain and update the physical-chemical & effects database and deduce the recommended Classification & Labelling advice per product category Latest advice is found in CONCAWE report 10/14 (available at www.concawe.org) REACH Assisting its members in the registration of petroleum products Keeping the registration dossiers up-to-date Maintaining and improving the petroleum product category dossiers and the petroleum products covered by these Streamlining the dossier content to the demands of the European Chemicals Agency (ECHA) Extending the physical-chemical, effects (HH & Env.) and product use database Fine-tuning of the petroleum product risk assessments Advocating the CONCAWE s pragmatic approach to REACH 13
REACH elements and possible outcomes Effects Substance can be used without restrictions Risk Characterisation Insufficient data: testing? Properties Substance authorised* or restricted for certain uses Emissions Exposure Assessment * Fuel use of petroleum products is exempt from authorisation 14 Substance is candidate for phase-out
REACH Implementation Challenges The refinery sector and the petroleum substances importers needed a consistent and efficient registration approach REACH was new and the expectations of the Regulators and Industry appeared not to be aligned. Concawe developed the technical and factual parts of all Petroleum Substance Registration Dossiers between 2008 and 2010 Concawe has used a category approach in line with its CLP activities Petroleum Substance uses that indicate harm to human health and/or environment are never included, unless the associated risks can be managed (All traffic lights are green). The advice how to manage these risks is passed on through the Safety Data Sheets (SDSs) The SDSs are comprehensive documents that require specialist skill to be fully comprehended. There are concerns on information propagation through the supply chain and whether the appropriate information is communicated. REACH is a journey that only started with the substance registrations 15
REACH implementation challenges 2 Implementing REACH provided a means for expanding the factual database on Petroleum Substances that Concawe maintains on behalf of its Members that is still continuing The product stewardship advice on products hazards (C&L), exposures and handling is now better backed by the new data obtained Concawe continues to extend its understanding of the petroleum product portfolio placed on the market, leading to an ongoing rationalisation of the included substances and supported uses Concawe is challenged by Regulators on petroleum substance and their impacts based upon beliefs Petroleum Substances are not mixtures but UVCBs The Regulators also have to demonstrate the facts and the associated assessments to be incorrect, using hard evidence Concawe executes an extensive research programme strengthening its Petroleum Substance database to face these challenges In 2015, Industry must demonstrate the understanding of their products and support Product Stewardship advice with sound, defendable data The Concawe database enables this, but can always be improved 16
Expanding the knowledge base Significant work programme under way on key aspects of Petroleum Substances under REACH to: Improve Substance ID to further enhance the read-across support Expand Hazard Information (execute testing proposals, once approved) Complete the PBT assessments Review the environmental risk assessments to address concerns raised by the Agency Update the assessment models Enhance the exposure assessments taking into account downstream user information, if provided Adapt Classification & Labelling taking into account any new information Include demonstrated Uses and associated exposures, where possible Rationalise Petroleum Substances Volumes & Uses of these Remove uses that were demonstrated unrealistic Advise to de-register Petroleum Substances that are no longer placed on the market Distinguish between Petroleum Substances and hydrocarbon solvents 17
Million tonnes* (registrations) Analysis of Tonnages & Uses CMRs Classified (non-cmrs) Not Classified Manufactured 384 (569) 394 (471) 39.9 (261) 818 Imported 90.2 (225) 95.3 (280) 7.28 (174) 193 TOTAL Exported 35.8 ( 94) 13.5 ( 72) 1.57 ( 47) 50.9 Intermediate Use 223 (496) 85.4 (327) 10.9 (110) 320 Marketed 215 391 34.7 640 Fuel 210 (396) 381 (401) 1.48 ( 81) 593 Industrial 0.791 ( 26) 2.12 (154) 13.0 (281) 15.9 Professional 0.0400 ( 5) 1.94 (140) 18.9 (206) 20.8 Consumer + Articles 0 ( 0) 0.984 ( 80) 0.971 ( 96) 1.96 Widespread 0.0400 2.92 19.8 22.8 Sold to Distributors 4.19 ( 6) 4.20 ( 43) 0.381 ( 19) 8.77 Other Uses 0.0900 ( 1) 0.103 ( 1) 0.0362 ( 8) 0.229 Non-allocated 4.28 4.30 0.417 9.00 Focus area Marketed = (Manufactured + Imported) (Exported + Intermediate Use) Widespread = Non-fuel Professional + Non-fuel Consumer + Non-fuel Articles Non-allocated = Sold to Distributors + Other Uses not declared * Data as per 30 May 2015 18
Further foreseeable developments Industry requires sufficient time to deliver the aforementioned work for Regulatory Authorities assessment of Petroleum Substances Industry prefers quality input & data to support all REACH deliverables The original category approach is challenged, as REACH is a substance driven regulation Strict evaluation of any Petroleum Substance, today may invoke testing demands that are not necessary Substance of Very High Concern (SVHC) Roadmap timeline would best take these constraints into account in the interest of all parties To date, Concawe has obtained many new data supporting the assessments originally included in their REACH Registration Dossiers Concawe has positively reacted to the challenges of the Regulators Based upon the acquired new data, none of the traffic lights has changed The uncertainties have been reduced, considerably The working relationship between ECHA and Concawe is demonstrating that we listen to and learn from each other This is only possible when adequate openness and transparency is present and when each others roles are mutually appreciated Collaborative activities appear the better route to resolving issues 19
Conclusions Concawe has build up a thorough understanding of the EU-refining sector and Petroleum Substances to: Provide detailed Product Stewardship advice to its members and other involved third parties Provide consistent Classification & Labelling Advice compliant with EU legislation and the UN-GHS principles Assist any registrant of Petroleum Substances to comply with the REACH requirements, today and in the future REACH appeared to be an opportunity for enhancing the knowledge base on petroleum substances that, to date, has not led to unidentified Product Stewardship issues It also provided insight on the Regulatory requirements of today The new data acquired, since REACH came into force, strengthens the product stewardship advice provided in the past The new data has provided enhanced learning on Petroleum Substances The new data underpins the past advice provided and the associated risk assessments led to minor Risk Management Measures updates 20
Thank you for your attention 21
Back-up slides 22
Environmental legislation in the EU There is ample legislation in the EU and its Member States that is directed to the protection of the environment and human health and in doing this create the good quality environments required to achieve this. The purpose of having a good quality environment is to preserve a sustainable and diverse ecosystem that can provide the natural resources and ecosystem services required to maintain and improve today s and tomorrow s living standards. The EU refining sector fully acknowledges this. However, we believe that industry will be best placed to assist delivering these objectives when: These take into account the available state-of-the-art science, including factual industry data; These are pursued in an socio-economical viable manner and Industry proposed alternatives are subject to a sound assessment of their socio-economic merits, human health and environmental impacts. 23
40 years of Refinery discharges data & what s next? 45 Reported Oil discharged (kt/a) 40 35 Oil discharged per reported throughput (g/t) Projected Oil discharged (kt/a) Projected Oil discharged per reported throughput (g/t) Legislative landmarks IED-2010 1.40 1.20 30 25 Water Pollution control directive 1976 IPPC-1996 IPPC-2008 1.00 0.80 0.60 0.40 20 0.20 15 0.00 2008 2012 2016 2020 10 5 0 1969 1974 1978 1981 1984 1987 1990 1993 1997 2000 2005 2008 2010 2012 2014 2016 2018 2020 2022 24
Supply chains outside the boundaries for Concawe Refinery Once a PS* is transformed into a different substance, it is no longer a PS and is therefore not covered by a Concawe dossier: Even when the transformation is performed by a Concawe MC e.g. Hydrocarbon solvents, monomers, aromatics, etc. Professional use Articles with transformed PS Petrochemical plant Formulation plant A Products Shoe polish Solvents Chemical plant Formulation plant X Control the controllable! Detergents Paints Households * PS = Petroleum Substance 25