Do IPC/IPPC Licences Improve Environmental Performance of Chemical Industries; Does the

EPA Help or Hinder?

Marian O’ Gorman, Mella O’ Driscoll

What is an IPC/IPPC licence? The system of Integrated Pollution Prevention

and Control (IPPC) is a licensing regime which applies to certain industries in Ireland.

It was introduced in Ireland on 12 July 2004.

It replaces the Integrated Pollution Control (IPC) system which came into effect in 1994.

The licence itself regulates the quantity and nature of pollutants emitted into the environment by the licensee.

Aims of IPC/IPPCprevent pollutionminimise releases to the environment at

source increase the emphasis on energy

efficiencyapply the precautionary principleapply the polluter pays principle

What are the improvements of the IPPC system over the IPC system?

The IPPC system is much more stringent and provides for a more strengthened framework for environmental protection.

The applicant needs to satisfy more criteria than was the case with the IPC.

The list of licensable activities is extended.

The EPA has extended powers allowing it to operate more efficiently.

The granting of IPPC licences1. Company applies for

planning permission

2. Environmental Impact Assessment

(EIS) required by local authority

3. EPA and local authority decide if criteria are met and satisfy

themselves that the planned industry can be regulated so that it does not damage the environment

4. Planning permission

and IPC licence granted

What happens to industries who have previously being

granted IPC licences? Existing licence holders are currently being

examined.

If these do not satisfy the new IPPC requirements, their licences will be reviewed.

The industry will then be given a certain time period to improve its industrial practices so that the new requirements are met.

Licensing fees for the chemical industry

Activity or class of activity

Fees for an application for an

IPPC licence

Fees for a review of an IPPC licence or revised

IPPC licence

Small activity

Large activity

Small activity

Large activity

Chemicals €7,618 €20,315 €5,713 €14,601

The manufacture of

pesticides, pharmaceutical

or veterinary products

€10,157 €22,855 €7,618 €16,506

Overview of licensable chemical activities

Manufacture of: organic and inorganic

chemicals artificial fertilizers olefins and their

derivatives organic or

organometallic products pesticides pharmaceuticals

veterinary products glues, bonding agents

and adhesives manufacture of vitamins

involving the use of heavy metals

paints, varnishes, dyes and pigments where production exceeds 1000L per week

How do IPPC licences operate?

Once the industry is up and running,it is subject to continual monitoring. The permit conditions may also be updated.

There are four groups of standards which are used to assess industrial activity: • operating standards• environmental quality standards• exposure standards• emission standards

Operating standards

Detail criteria which a pollution emission source must meet.

Environmental quality standards

Set quality objectives for pollutant in order to ensure the receiving environment is not at risk.

Exposure standards

Specify acceptable level of pollution of receiving body at point of entry to environment.

Emission standards

Specify quantity/concentration of pollutants from a given point source per unit time.

Auditing Processes Environmental audit

• Documented and periodic evaluation of industries’ production system and environmental protection processes.

• Carried out by the EPA.

• Investigates industry to see if it is conforming with licence.

Annual audit

• Every industry with an IPPC/IPC is subject to an annual audit.

• Carried out by a team from the EPA.

• Examines breaches of licence and pollution incidents.

Annual Environmental Report

As well as the auditing procedures, the industry is required to submit an annual environmental report which includes the following details;

• emissions to atmosphere• emissions to water/sewer• waste management• noise• energy and water consumption• pollution incidents and complaints• environmental management

programmes in place

Initiation of an eco-industry

IPPC licences help to ensure that industries are as eco-friendly as possible.

The EPA makes recommendations to industries who are finding it hard to comply with IPPC regulations. These include• process redesign to eliminate/reduce emissions• substitution of solvents/materials with more benign

replacements• examination of renewable energy as a

replacement for fossil fuels• recycling of waste products

Legislation

The IPPC licensing system and its aims are outlined in the IPPC directive 96/61/EC. This directive is applicable to all EU member states.

Industries who previously held IPC licences are being examined with relation to the Protection of the Environment (PoE) Act 2003 in order to ensure they satisfy the new IPPC requirements.

IPPC/IPC

Legislation contd.

BREF (BAT Reference notes). These are reference documents on the best available techniques (BAT) for each industry.

They specify base guidelines to which the industry must conform. They also offer recommendations on how to improve on existing techniques.

If an industry is having difficulties meeting the requirements of its IPPC licence, the BREF are consulted in order to identify a more suitable industrial technique.

IPPC/IPC

Does the EPA help or hinder?Help

The EPA helps in many different ways.

The EPA aids the Local Authority in deciding whether an IPPC licence should be granted or not.

The EPA offers assistance to industries who are having difficulties meeting licence requirements.

The EPA may assist with the installation of an Environmental Management System (EMS) in the industry.

The agency may recommend that the company installs an Environmental Management Programme (EMP).

Does the EPA help or hinder?Help

An EMP is a programme installed by the industry which identifies problem causing areas, proposes solutions and sets targets to be achieved within certain time periods.

The EPA monitors this EMP to ensure that it is effective and is being followed.

The EPA also carries out audits on all licensee holders to ensure that IPPC licenses are not being breached.

It is responsible for checking the annual environmental report submitted to it by the licensee holders.

The EPA investigates any complaints made by the public.

Does the EPA help or hinder?Hinder

However questions have been raised about certain behaviour displayed by the EPA.

Despite the fact that it was established as an independent body, it mush show regard for government policies.

The 1970’s and 1980’s saw a huge influx of foreign chemical and pharmaceutical industries to Ireland.

These multinational corporations currently provide more than 130,000 jobs in Ireland and are important to the growth of the economy.

The EPA, influenced by the government is therefore opposed to reprimanding them regardless of any breaches in IPPC licences.

Does the EPA help or hinder?Hinder

In the 1997 EPA review, 80% of IPPC licence holders that were audited were found to be in breach.

Of these, 4% were prosecuted.

Section 15 of the EPA act grants immunity to agency or any body working on their behalf from legal action arising from failure to perform or comply with any its duties.

This removes any accountability in the case of negligence.

Case Study 1: Shannon pharmaceutical plant (SIFA) Shannon pharmaceutical plant (SIFA) was at the centre of

a series of complaints regarding a strong rotting odour in the vicinity of the plant during late 2002 early 2003.

The EPA was called out to investigate these claims however they declared that there wasn’t any odours being emitted from SIFA or any other industry in the area.

The EPA also declared that SIFA was operating within the emission limits on its IPC licence.

Cllr Tony Mulcahy, said he received hundreds of phone

calls from local residents concerning SIFA. He also received calls complaining about the EPA.

Shannon Pharmaceutical plant (SIFA)

Local residents felt that the EPA was not taking the complaints seriously or giving them the attention they deserved.

Beecham (SB) and Hickson Pharmchem in the Cork harbour were granted IPC licenses in the 1990’s. A lot of public objection was voiced to this, however the EPA did not carry out any significant investigation of these companies.

The above cases raises questions as to the competency of the EPA and the adequacy of the IPC license held by the plants.

Case Study 2: Proctor & Gamble In August 1996, the urban

district council in Nina, Co. Tipperary were forced to cease pumping from the Gortlandroe well due to water contamination causing an unusual taste and smell, like disinfectant to the water.

The EPA investigated and concluded that the water was contaminated with octamethylcclotetrasiloxane originating from the Proctor and Gamble factory.

It was the most serious case of groundwater contamination in years.

Cost of clean up and distribution of fresh water supplies were in excess of £10,000,000.

The EPA decided to commence legal proceedings.

Proctor & Gamble Under the EPA act 1992, it is the

decision of the agency as to which court such prosecutions are taken.

Maximum fines in each are seen to the right.

The district court was enlisted and was not capable of penalising the company effectively

Two fines of £750 each were imposed for water pollution.

The clean up cost was more than £10 million yet the cost to Proctor and Gamble was £1,500.

Court Max Penalty

District £1,000

Circuit £5,000

High £25,000 + Clean up costs

Fraud If the conditions of an IPPC licence are

repeatedly broken, the EPA send out a warning.

However in order for a company to be fined or closed, the EPA needs to approach the DPP and the case needs to go through the courts.

The courts are very reluctant to close a company as this will mean job losses. Companies are well aware of this and this lack of serious punishment means that there doesn’t exist any real fear of breaking IPPC licence regulations.

Fraud While each licensee is subject to an

annual audit, the EPA only has sufficient personnel and resources to carry out an audit in each industry every 2 to 3 years.

Due to this, it is likely that many breaches of IPC/IPPC licenses may not even be detected.

Large companies are generally found to be in keeping with license requirements as they fear the bad publicity of complaints.

However many breaches in licenses have been observed in small to medium size enterprises, who are trying to cut costs.

The EU dimension The IPPC licensing system is to be applied to all EU

member states. It is currently in operation in Ireland as well as most other ‘old’ member states. It will be introduced to all ‘old’ member states by October 2007.

Four new member states namely Poland, Slovakia, Slovenia and Latvia have been granted an extra transition period (2008-2012). This is because these countries do not have an IPC system already in place as do the ‘old’ member states.

The national, local and regional authorities in each country are responsible for implementing the IPPC system.

Conclusions The IPC/IPPC licensing system promotes

environmental awareness among chemical industries.

It sets down regulations to which the industries much conform. These regulations ensure that industries behave in an environmentally friendly manner.

The EPA and the BREF documents assist the industry in improving their environmental performance by providing alternatives to materials and processes already in place.

The IPPC system paves the way to a better future throughout Europe as industries are forced to take an active responsibility for the environment.

Conclusions However one serious loophole in the licensing scheme

is the lack of serious punishment for breaches in licence regulations.

The EPA needs to be granted more powers including the power to issue fines to offending industries.

The EPA needs to be awarded greater funding so that it can carry out more frequent audits.

There have been quite a lot of complaints made about the EPA and its ability to respond to complaints made by the general public. The current situation is that the EPA does not have to answer to anyone. A regulatory body should be set up to oversee the EPA and to respond to complaints from the public regarding the EPA.

References http://www.epa.ie

http://www/europa.eu.int/comm/environment/ippc

http://www.iol.ie/~cea/

http://www.ireland.com

http://www.chaseireland.org/waste license

http://www.limerickleader.ie

http://www.chaseireland.org/Documents/proORpoll.pdf