EfW DEVELOPMENT GUIDANCE

Transcription

1 EfW DEVELOPMENT GUIDANCE

2 Potential sources of funding Guidance on funding options for energy from waste development. 1.0 London Green Fund (LGF) 2.0 The Carbon Trust 3.0 EDF Energy Green Fund 4.0 Green Investment Bank (GIB) 5.0 WRAP equip Scheme 6.0 Additional sources of information page 2

3 Potential sources of funding There are a number of funding options available to assist companies in the development of sustainable energy facilities, including energy from waste (EfW). The types of funding available are usually project specific and can differ depending on your location. A selection of the funding options currently available is outlined below. These funds do not have an advertised end date. However, as sources of funding are constantly changing to meet market demands, it is worth checking national and local government websites for updates. Figure 1: Available funding sources (as August 2012) London Green Fund (LGF) The Carbon Trust EDF Energy Green Fund Green Investment Bank (GIB) WRAP equip 1.0 London Green Fund (LGF) The London Green Fund (LGF) was launched in This 100 million fund is available for investment in schemes that will cut London s carbon emissions. The fund consists of 50 million from the European Regional Development Fund Programme (ERDF), 32 million from the London Development Agency (LDA), and 18 million from the London and Recycling Board (LWARB). The fund is part of the Joint European Support for Sustainable Investment in City Areas initiative (JESSICA) that was developed by the European Commission and the European Investment Bank. The LGF is managed by the European Investment Bank. The LGF is divided between two smaller urban development funds, which are managed independently and invest directly in waste and energy efficiency projects. The UDFs are the Urban Development Fund (WUDF) with funds of 35 million and the Energy Efficiency Urban Development Fund, (EEUDF) with funds of 50 million. The fund managers decide the amount to invest in selected projects, based on an investment policy agreed by the London Green Fund Investment Board. The fund managers also expect to attract further investment into their UDFs from other investors. The UDF is managed by Foresight Group LLP and is known as the Foresight Fund. It is commercial funding. The WUDF finances the construction or expansion of waste to energy facilities, value added re-use, recycling or re-processing facilities and facilities which displace the use of fossil fuels. To apply for the funding and further details contact the UDF managers who are responsible for assessing project proposals. Contact details can be found at: page 3

4 2.0 The Carbon Trust 2.1 Interest free loans. Small and medium enterprise (SME) businesses in Wales and Northern Ireland can apply for 0% interest loans of 3, ,000 from the Carbon Trust to help them finance and invest in energy saving projects. The repayment period of the loans is dependent on the individual projects. In Northern Ireland 1,000 can be borrowed for every 1.5tCO2 saved per year. In Wales, 1,000 is available for every 2.5t CO2 saved. To be eligible for the loan, SMEs must have incorporated businesses that have been trading for at least 12 months or non-incorporated businesses trading for at least 36 months (this will include charities, friendly societies, clubs and similar). For the purpose of this funding, an SME is defined as a company with fewer than 250 full time or equivalent employees, an annual turnover not exceeding 50m (approximately 42.5m) and/or assets not exceeding 43m (approximately 36.5m) and no controlling interest of more than 25% by a non-sme. More details can be found at: 2.2 Energy efficiency financing (UK) In partnership with Siemens, the Carbon Trust offer financing options including leases and loans from just 1,000 with no maximum limit. Financing is available to all types of organisations. The repayments are calculated to tie in with the anticipated energy production and resulting cost savings making the financing option pay for itself. To qualify for finance, companies are subject to a credit check and trading history as this will assist in determining the available finance. Businesses must have been trading for at least 36 months. In addition to this, an energy saving assessment will be completed by the Carbon Trust to ensure sufficient savings can be made. More details can be found at: page 4

5 3.0 EDF Energy Green Fund In 2001 EDF Energy set up the Green Fund using the funds from their Green Tariff. Every customer contributes an amount to green projects which the company match pound for pound. The fund is used to help promote the development and installation of renewable energy technology in communities. The fund is mainly used to help non-profit organisations set up micro-generation technologies. Any technology that produces heat and electricity will be considered and innovative technologies are supported, as long as evidence of successful trials can be provided. The fund will provide up to 30,000 (excluding VAT) for a single scheme. The funding is usually only awarded to schemes that have secured funding from other sources of an equal or greater amount, and the applicant is also expected to contribute to the overall cost. The scheme will not be eligible to receive EDF funds if they have already secured funding from other energy companies. There are two rounds of funding per year with the closing dates being 28th February and 31st August. Currently there is no known end date for the fund. All applicants are scored in two stages against pre-set criteria. Unsuccessful applicants are not allowed to re-apply for the project in the next funding round, however they can apply for subsequent rounds. Further details and the application form can be found at: Green Investment Bank (GIB) The Green Investment Bank is being set up by the government to provide the significant investment that will be required to establish a green economy in the UK. In December 2011 the Department for Business, Skills and Innovation (BIS) published the criteria for deciding where the bank will be based and what the bank s first priorities will be until 2016, which includes energy from waste generation. A new team will be set up within BIS to drive investment in the UK s green infrastructure until the Green Investment Bank is formally established. The UK Green Investments (UKGI) team will have access to the 100 million made available by the Government to invest in smaller waste infrastructure projects on a fully commercial basis. A further 100 million has been provided for investment in the non-domestic energy efficiency sector for the next financial year. 80 million has been awarded to fund managers Foresight and Greensphere. UKGI will also be available to co-invest in offshore wind projects. It is proposed that the GIB project will evolve over three phases as below: UK Green Investments from 2012 until state aid approval for GIB is granted, BIS UK Green Investments project will make direct investments in green infrastructure projects. Establishment GIB will be established as a stand-alone institution following state-aid approval. It is expected that state aid approval will be granted in autumn Full borrowing from April 2015, the GIB will be given full powers to borrow, subject to public sector net debt falling as a percentage of GDP and further state aid approval being granted. To keep up to date with the GIB developments please visit: page 5

6 5.0 WRAP equip Scheme The equip leasing scheme has been set up by WRAP to help companies secure financial assistance for new and second hand recycling plants and machinery, through guaranteeing the future value of plant machinery which is leased. Financial benefits from the scheme include: VAT is charged on each individual rental payment, removing the need for it to be paid up front; lease facilities are generally not payable on demand or subject to annual reviews; and all rental payments made by the company can be set against tax liabilities To qualify for the scheme, a business must sort, reprocess, recycle or manufacture products using one of a range of materials that include plastic, organics (In-Vessel composting or Anaerobic Digestion only), textiles, glass or wood (only treated/ contaminated wood). equip can support waste to energy applications but it must be clearly demonstrated that there is no higher value use for the material. The equip scheme has been designed to process applications quickly - with applications for equipment up to 250,000 processed in less than one month, and applications over 250,000 taking a maximum of eight weeks from receipt of the completed application form. Further details and the application form can be found at: 6.0 Additional Sources of Information 6.1 The Knowledge Transfer Network Provides advice on funding and networking and recently launched the Energy Generation and Supply Knowledge Transfer Network which is a useful on line resource to find funding and partners The British Private Equity & Venture Capital Association The industry body for the private equity and venture capital industry in the UK The Green Grants Machine A source of information on grants, loans, awards and other funds available to help businesses go green. page 6

7 Feasibility, due diligence and good practice in EfW project development 1.0 Introduction 2.0 Developing a business case 3.0 Energy from waste technologies 4.0 Site selection 5.0 Due diligence Guidance to help in the feasibility assessment of EfW facilities to facilitate the design and feasibility processes of EfW plants. page 7

8 1.0 Introduction The purpose of this guidance is to provide a source of information for waste producers and businesses who are interested in developing small scale energy from waste (EfW) plants. This guidance focuses on the feasibility study stage of the project process. There are a number of different EfW technologies available, including combustion, AD, gasification and pyrolysis, which can provide an energy recovery option for those wastes which cannot be re-used, recycled, composted or digested. Projects of this nature frequently take a period of time to develop and implement so it is prudent to periodically review the initial feasibility work in light of any changes to feedstock, legislation/, funding options, progression of new technologies and observation of lessons learned on similar projects. An initial, robust feasibility assessment should help to lay the foundations for a successful project. This document covers the areas of business case development, site selection, technology options and due diligence. In addition to providing a quick overview of key project considerations, it also provides useful contacts and sources to assist with this process. 2.0 Developing a business case Developing a business case should help to ensure a successful, well planned project, prior to investing any funds. The business case should help answer the following questions: What are the key legislative and policy issues: should the waste be managed in an EfW facility? What will the feedstock be? What is the need for the facility in respect to waste management and/or low carbon energy production? What are the local waste management options and alternatives? What is the most appropriate technology for the waste feedstocks being considered? Do I have a suitable site? What size should the facility be? How much will a facility cost to construct (including the feasibility of heat and energy off-take/connection to electricity grid and combined heat and power (CHP))? How much will the facility cost to operate? How long will the project take from planning to operation? Is the project economically viable and how will it be funded? Have I carried out appropriate project due diligence? Who will be the project partners? What legal matters need to be considered? page 8

9 2.1 Technical feasibility The first crucial step for a potential EfW proposal will be to develop a business model to determine the most appropriate technology. The specific elements as shown in Figure 1 will need to be considered within the feasibility assessment before choosing a technology: Figure 1 Typical project feasibility assessment diagram and Location Feedstocks type of waste Location Before an EfW plant can be built, you will need to establish how much land is required, as technology footprints vary for each type and design of EfW plant (see section 4 Site selection). The proposal will also need to consider land allocation for feedstock, waste reception, processing requirements, storage requirements and other ancillary equipment. Dependant on the outputs of the process (in terms of heat, steam and/or electricity) you may need to consider heat users, access to an electricity sub-station or local electricity distributor. Where will the process residues be managed and is the location well situated to facilities which can manage bottom ash and flue residues or does this need to be accommodated in your site? Further information can be found in section 4. Gate Fees and revenues Feasability assesment Feedstock Security Government incentives Energy production CAPEX and OPEX Operation of facility page 9

10 2.1.2 Feedstock waste A market assessment of waste facilities is crucial at the feasibility stage. This would include a waste forecast, a consideration of policy targets (for example LA recycling) and evaluation of existing and planned waste capacity within a specified distance from the proposed location. The availability of waste feedstock and its variability are key parameters when determining which technology will be the most suitable for the proposal, as well as the long term economic viability of a project. The feasibility assessment will need to include a detailed analysis of the availability and physical & chemical characteristics of the feedstock. The larger mass-burn technologies are less sensitive to variations in feedstock, however others, such as gasification are more sensitive, requiring pre-treatment of feedstock. The physical and chemical properties of the fuel can have an impact on the energy efficiency, operation and emissions of an EfW facility. See forthcoming WRAP guidance on feedstocks and fuel classification for more detail, but typically the following factors will need to be evaluated to determine the overall fuel quality: biogenic content; moisture content; ash content; net calorific value; size and density; and chemical content (including chlorine, mercury, cadmium and other heavy metals) Fuel preparation The feedstock may also require further processing before it can be thermally treated. The type of fuel preparation techniques used would depend on the input fuel and the EfW technology being used. Some of the most commonly used fuel preparation techniques include: sorting; biological treatment; crushing, grinding, shredding; separating; screening; washing; drying, cooling; pelletising; compacting; and dust removal Feedstock security The work involved in the concept, feasibility, design, commissioning and operational stages of an EfW facility represents a large capital investment over a long period of time. A cost/benefit analysis needs to demonstrate to funders that sufficient suitable waste feedstock is available over that period to ensure the facility can run at or near capacity and generate the revenues or savings expected. Developers will also need to demonstrate feedstock security and consider any changes to their business that might impact on the quantity or composition of the waste they require. page 10

11 2.1.5 Electricity and heat production The UK Government has set an ambitious target to reduce 60% of carbon emissions by 2050 and has identified the importance of energy recovered from waste in displacing fossil fuels. EfW technology can convert the low entropy chemical energy in waste derived fuels into high entropy heat, electricity or both. The amount of energy produced depends upon the composition of the feedstock, the technology used, the boiler and turbine efficiency and how long the facility will need to operate. The technology selection and set up of the facility will depend on the desired outputs, which in most cases can be set up to produce direct heat/ steam (most efficient), electricity (least efficient) or a combination of both. For small and medium enterprises (SMEs) which require a significant supply of heat and/or power, a nearby EfW facility can represent a secure source of power and protect the business against potential rising energy costs Operation of the facility The operation of EfW facilities, particularly advanced thermal treatment plants, require a greater level of skill and operator knowledge compared to conventional incinerators. The availability of staff with the required skills will need to be considered, along with the number of additional staff required to operate the facility. The feasibility assessment will also need to consider any maintenance costs and emissions monitoring costs within the business case Outline CAPEX and OPEX A key parameter for the development of a business case is the capital expenditure (CAPEX) and operational expenditure (OPEX) that is required to purchase and run the EfW equipment over its lifetime. The capital cost represents the estimated total plant costs, which include but are not limited to: main equipment costs; direct plant costs; purchase of the land; costs associated with obtaining planning permission; environmental permits and indirect plant costs. The operational cost includes, but is not limited to: raw materials; labour; electrical energy consumed; maintenance; materials consumed; consultant services; general insurance; expenses; local tax; unforeseen expenses and ash disposal Government incentives There are a number of policies supporting the delivery of EfW technologies that fit within the waste hierarchy. The UK Government is committed to sourcing 15% of its energy from renewable sources by 2020 and has stated where appropriate that EfW can make a contribution to the renewable energy target. The landfill tax escalator is also acting to reduce the amount of waste sent to landfill. Gate fees, current disposal costs, and energy/transport requirements are all considerations which will need to be considered within a business case. Within the policy framework there are a number of funding opportunities to generate revenue from energy production that SMEs can now access to build into a business case for investment in small scale EfW technology. These include: the Renewables Obligation (RO); Renewable Heat Incentive (RHI); Combined Heat and Power (CHP); and Feed in Tariffs (FiTs). Where projects involve the export of power to the National Grid, there is the potential to gain additional revenue through the sale of Renewables Obligations Certificates (ROCs). ROCs are issued by Ofgem to producers of renewable electricity. As all energy suppliers have an obligation to provide a certain amount of their electricity from a renewable source, those suppliers who do not produce renewable energy can purchase the certificates from those who do, so the ROCs themselves have a market value, which can add significantly to the income of a renewable energy supplier. Similarly, where a plant provides direct heat to a heat user the supplier can apply for payments through the Renewable Heat Incentive (RHI). This works in a similar manner to the ROCs regime, but supports non-fossil fuel produced heat delivery, rather than electricity. See WRAP guidance on Financial for more detail. page 11

12 Combined Heat and Power (CHP) is a form of plant design which produces electricity, but in addition then captures and utilises the waste heat from the process. In this case, the supplier can choose whether to claim under ROCs for the electricity or to claim under RHI for the heat, but they cannot claim for both. Feed in Tariffs (FiTs) are a similar scheme to ROCs but aimed very much at the small scale. Eligible installations need to be less than 5MW capacity, which would exclude many EfW facilities Gate fees and revenue One of the important factors that determine the projected revenue from an EfW facility is its gate fees. This is the fee which is paid by the waste fuel supplier for the treatment and disposal of waste. The revenue generated from gate fees depends on the location of the site, the type of process and the capacity of the plant, as well as other economic factors. Gate fees are levied on each tonne of waste accepted at site for treatment in order to offset the total operating cost of the systems. It is customary for operators to include the profit within the cash flow for calculation of gate fees. The gate fees levied would also depend on the projected revenues from electricity sales, ROCs, RHI and the sales of other outputs and residues such as secondary aggregates made from bottom ash and permission and an Permit will need to be obtained for the construction and operation of the facility. It is important to factor in the cost of preparing a planning and permit application, as well as the time taken to prepare and determine these applications. Securing planning is a key project hurdle and it is advisable to carry out initial planning feasibility work for the proposed site and development at the business case development stage. For further information see the WRAP guidance on planning. For further information see the WRAP guidance on environmental Legal agreements New projects will need to consider contractual arrangements and legal warranties. It is important that legal advice is sought early within the project development to scope any potential legal barriers and determine any risks to the business. The overall business case will need to consider issues such as the utilisation of waste materials, electricity generation, grid connection agreements, planning conditions and technology warranties. Any joint venture or partnerships may have to be warranted, and legal support may also be required to ensure contracts are in place. Seeking legal advice within the feasibility phase will provide the necessary evidence for any commercial commitments that may be required from project concept to delivery. page 12

13 3.0 Energy from waste technologies There are a number of EfW technologies which can process waste to generate energy in the form of electricity, heat or cooling. The most well-known type of commercial EfW plant is the modern waste incinerator which burns wastes at high temperatures to produce heat which converts water to steam. The steam is then used to drive a turbine, generating electricity which is exported to the National Grid. There are also other EfW technologies generally referred to as advanced thermal treatments (ATT) or as advanced conversion technologies (ACT) though many remain unproven on a commercial scale for specific feedstock use. Examples across the range of EfW thermal processes include: incineration; gasification; pyrolysis; and plasma gasification. Figure 2 plant flow diagram (Otto Simon Ltd) 3.2 The most well known thermal process is incineration and a variety of EfW incineration technologies are available such as fluidised bed or moving grate. During incineration the waste is burnt in the presence of oxygen at a high temperature normally above 850 C. The process produces steam which can be used to generate electricity and heat; wastes that are not incinerated remain as a solid residue. page 13

14 3.3 Gasification Figure 3 Gasification plant flow diagram (Otto Simon Ltd) Gasification is considered a commercial technology in the coal and chemicals industry and a variety of gasification designs are available such as up draft, down draft, entrained flow and fluidised bed reactors. Gasification is another thermal process during which a controlled amount of oxygen, air or steam is passed through the waste preventing full combustion. The process occurs at high temperatures, normally above 750 C, producing syngas ( synthetic gas, which typically contains Carbon Monoxide, Hydrogen and Methane) and a solid residue or char. The syngas can be burnt to produce steam or converted via a prime mover such as a gas engine or turbine which can be used to produce electricity and heat. Gasification is considered as an advanced thermal treatment technology, and although not yet commercially proven in the UK using MSW, there are wood biomass gasification plants being established across the UK. The advantages of gasification plants are that they can be modular and the operating parameters can be varied to match the variety of feedstock composition. page 14

15 3.4 Pyrolysis Figure 4 Pyrolysis plant flow diagram (Otto Simon Ltd) Historically the pyrolysis process has been used in the chemical industry to produce charcoal and coke from wood. During pyrolysis no oxygen is used; the waste undergoes thermal degradation at temperatures between 300 C to 850 C. The process typically produces a hydrogen rich syngas (which typically contains Carbon Monoxide, Hydrogen and Methane), a liquid oil and a solid char. The relative proportions of these products can be altered by the speed of the process and the temperatures at which the reactor runs. The syngas can be burnt to produce steam or converted via gas engines to produce electricity and heat or condensed to produce more oils. Pyrolysis is not yet developed at a commercial scale within the UK, although developmental projects are up and running and reference plants have been built within the EU to recover organic wastes. 3.5 Plasma gasification Plasma gasification techniques use an electric current, an inert carrying gas and powerful electrodes to create plasma - an ionised gas (not dissimilar to lightning). In plasma gasification, fuel or waste is fed to a reactor vessel where it comes into contact with electrically generated plasma and is heated to temperatures of up to 6,000ºC. Organic molecules are converted into a syngas that can be used to generate electricity and liquid fuels, while most metals melt or are vaporised and other inorganic solids are converted into a glass-like substance that can be marketed to the construction industry as an aggregate replacement. page 15

16 4.0 Site selection 4.1 The site selection process Choosing the right site can minimise planning delays and help ensure project success. The planning system is plan-led and finding a site which is allocated for an EfW facility in an adopted Development Plan will increase the likelihood of success. Modern EfW facilities are industrial in nature and often fit well within an industrial setting. The site selection process is very important in determining the correct and most suitable location for the proposed facility. There is national guidance contained within Policy Statement 10 (PPS10), its Companion and Supplement to Policy Statement 1: and Climate Change which deal with location criteria for such developments. Annex E of PPS10 provides locational criteria which assist in the site selection process. 4.2 Site selection process check list The list below provides a check list that should be considered when locating a potential EfW facility Availability, location and feedstock Is the feedstock readily available in a format that the chosen technology can treat? Is the feedstock located within a cost effective distance from the site? Road based transportation should ideally be no more than a 1 hour drive. Is the site located close to the primary road network, thereby avoiding residential and school routes? Is the site access suitable for HGV movements? Is the site available and deliverable for the proposed use? Has there been sufficient consideration for the location where the waste residues from the EfW process will end up, either to be re-processed or disposed of at a suitably licensed (hazardous) landfill site? page 16

17 4.2.2 Development plan policies: If you are looking for a site: Is there an up to date adopted Core Strategy and supporting development plan document with sites allocated for waste uses? Are any of these allocated sites suitable and available for your proposal (see checklist below)? If no, does the development plan include a policy for EfW proposals on unallocated sites? If yes, ensure the site you select adheres to this policy (checklist below may also assist). If there is no up to date waste development plan, is there an emerging waste plan? If so, check if any sites have been nominated for waste uses or nominate your site for waste use. If you have a site which you think is suitable for an EfW facility: check that your site complies with the policies in the adopted development plan; and where there is an emerging plan (one which hasn t yet been adopted) make representations to the Authority that your site is available and suitable for waste uses (use checklist below to help with the assessment) Location of nearby utilities and grid connection point Is there a suitable and viable substation/grid connection point nearby for export to grid? Are there any utility constraints that may restrict the construction or operational elements of the proposed facility? Location of nearby possible heat/cooling customers Is there a suitable customer nearby that could utilise either heat or cooling from the EfW process? Land classification/location avoid greenbelt - otherwise you will need to demonstrate the very special circumstances for proposing inappropriate development in green belt land; try to utilise previously developed land; ideally locate within an industrial setting; and try to identify the potential to co-locate with existing or planned waste management facilities Location of sensitive receptors Ideally the site should not be located within close proximity to: residential properties; school or colleges; Areas of Outstanding Natural Beauty (AONBs); national parks; areas or sites of historic interest (e.g. listed buildings World Heritage Sites, Conservation Areas); and areas of nature conservation interest, e.g., Sites of Special Scientific Interest (SSSI), Special Area for Conservation (SAC), Special Protection Area (SPA), Local Nature Reserve (LNR), National Nature Reserve (NNR), Biosphere Reserves or Global Geoparks etc. page 17

18 4.2.7 Other site sensitivities Figure 5 A suitable site location for an EfW facility Sites should ideally not be located within: an area liable to flooding; an Air Quality Management Area (AQMA); and a Ground Water Source Protection Zone (SPZ) 1 as defined by the Environment agency. Careful consideration should also be given to the following: the impact of the development on aerodrome safeguarding areas depending on the stack height of the facility; the potential of the site to support protected species (ecology) and any implications that may have for the development; and the potential impact of the proposed EfW on Special Protection Areas (SPA) and Special Areas of Conservation (SAC) located near the site. There would need to be a compelling case in the public interest if the proposed EfW is likely to harm the SPA or SAC through emissions to air and other impacts. It is advisable to review the Air Pollution Information System information and contact the Environment Agency and Natural England on this matter. page 18

19 5.0 Due diligence 5.1 What is due diligence? Due diligence is a process often undertaken at a time of business acquisition, restructuring or major project development. The purpose of due diligence is to review the profile of a company or project to understand any potential risks. 5.2 What does it include? A due diligence audit is normally undertaken to gather information and evidence. This can include auditing different aspects across a company or project such as an assessment of liabilities, potential impact on value, environmental compliance, health and safety and technology. Figure 6 Examples of the different audits that can form part of due diligence Due Dilligence 5.3 Why is it useful? A due diligence audit can be used to act as a guarantee when undertaking a new project. Financial institutions, insurance companies and business partners will want information and evidence to demonstrate investment potential and understand liabilities. Audit Technical Audit Financial Audit Legal Audit page 19

20 Guidance to explain the planning process and how it affects energy from waste developments 1.0 Introduction 2.0 The planning system 3.0 Development plan led system 4.0 Changes to the planning system 5.0 Design 6.0 Key stages of the planning process 7.0 Health 8.0 Other consents page 20

21 1.0 Introduction Following the development of a business case and initial feasibility work, securing planning permission is the next key step in the delivery of an EfW facility. Understanding the planning process will help you develop a realistic project programme taking account of: time required to prepare a planning application; the likely time taken for the planning authority to determine the application; and the time required to seek discharge of pre-commencement style planning conditions which are needed before you can commence construction. This guidance focuses on EfW planning proposals determined under the Town and Country regime for proposals with a power generation capacity of less than 50MW 1. A robust planning application prepared in parallel with an Permit application 2 can be cost effective, assists in securing the necessary consents and minimises the risk of legal challenge to decisions made either by the planning authority or the EA. The planning system helps ensure that development takes place in a way which balances environmental, social and economic impacts in the public interest quick checklist can seem a challenge but you can minimize costs and avoid project delays by understanding the system and following some key steps: Make sure your proposal is consistent with the adopted local development plan. Establish the key planning considerations traffic increase, impact on nature conservation, landscape, local residents etc., and make sure these impacts are minimised as much as possible through good quality design of the proposal [Design Council website and BREEAM guidance]. Consult the planning authority and key statutory consultees, for instance: EA; Natural England; Design Council; Highways Agency. If your site is in an area where a new development plan is being prepared, contact the LPA, promote your site for inclusion in the development plan and make representations to ensure that emerging policies support your proposal. Consult local people The Localism Act has introduced a statutory requirement to consult on certain projects, available from the Communities and Local Government Guidance It is advisable to discuss the approach to community consultation with the LPA. Impact Assessment (EIA): in most cases an EIA is mandatory but you should check with the planning authority at an early stage. Allow enough time to prepare a comprehensive Application: agree with the planning authority the information required in support of the planning application to avoid delays at a later stage. 1 Energy facilities which generate over 50MW of energy are considered nationally significant infrastructure projects and will be determined by the National Infrastructure Unit. 2 See WRAP guidance on Permitting Regulations page 21

22 2.0 The planning system The planning system helps to ensure that development takes place in a way which balances environmental, social and economic impacts thereby securing sustainable development. The core elements of the planning system are: preparing development plans; and managing the development itself. These activities are mainly led and undertaken at the local authority level by the LPA. The LPA is responsible for deciding whether a proposed development should be allowed to go ahead. In areas where there are two tiers of local authority (county and district councils), planning applications for waste development, including energy from waste facilities, should be made to the higher level (county council rather than district or borough). Where an LPA: refuses planning permission; attaches an unreasonable planning condition to a planning approval; or delays decision-making beyond a statutory period (13 weeks for a non EIA type proposal and 16 weeks for an EIA type development (See Section 6.2), then applicants will have the right to appeal to the Secretary of State. Appeals are usually considered by a Inspector who is appointed by the Secretary of State. 3.0 Development plan led system LPAs prepare development plans through consultation with local communities which set the broad framework for acceptable development in their local area. County Council Authorities (WPA) will prepare waste core strategies and development plan documents which guide waste development in the larger county areas. Unitary authorities will perform both roles. Development plans may allocate specific sites for waste development and should provide guidance as to the type of sites which are considered most suitable. The planning system is a development plan led system. applications have to be decided in line with the development plan unless there are very good reasons not to (e.g. the plan is out of date or other material considerations should be given more weight). Ensuring a planning proposal is consistent with up to date development plan policies minimises the risk of planning delay or failure. The Advisory Service and Portal websites provide guidance on the plan making process. page 22

23 4.0 Changes to the planning system The Government introduced significant changes to the planning system when the Localism Act received Royal Assent in November What is new? The Act makes a number of key changes to the planning system: a statutory requirement for pre-application consultation; neighbourhood planning; allows councillors to discuss a planning proposal before it reaches the planning committee; abolishes the Infrastructure Commission which previously determined applications for energy facilities over 50 MW; and abolishes the regional tier of planning policy. Regional Spatial Strategies will no longer be part of the development plan. 4.2 National Policy Framework The Government has streamlined national planning guidance by the introduction of the National Policy Framework (NPPF), which sets out the government s planning policies for England. It replaces the previous Policy Statements (PPSs)/ Policy Guidance Notes (PPGs). The NPPF states that there is a presumption in favour of sustainable development, as well as containing general planning policies which will be relevant to energy from waste development, such as nature conservation, cultural heritage, climate change etc. Annex 1 of the NPPF explains how it should be implemented. It specifically excludes detailed waste policies as a national waste planning policy and will be published alongside the National Management Plan for England. In the meantime Policy Statement (PPS) 10: for waste management will remain the relevant national policy for waste. page 23

24 5.0 Design Good design is now a core part of Government planning policy. When determining planning applications local authorities are required to consider design quality. Where energy from waste proposals involve new buildings or structures a Design and Access Statement will need to be submitted along with the planning application. Design is a process which should be a defining part of any project and will evolve as the project develops. Good design balances the function, quality and impact of the facility. Further detailed guidance is provided in Designing Facilities- a guide to modern design in waste. Further information is available on the BREEAM website: Guidance on preparing Design and Access Statements is provided in: Circular 01/2006 Guidance on changes to the development control system: Design and Access Statements - How to read, write and use them CABE 2006: Good quality design which incorporates sustainability principles can minimise planning delay, particularly if the location for the EfW facility is located in a visible and/or sensitive location. The design needs to be appropriate for the particular site and location. Some planning authorities will have design guidance for planning proposals this can be checked during pre-application discussions with the relevant authority. Achieving sustainable design of waste facilities is an important part of the design process. Many local authorities now require sustainability to be considered in planning applications. The Building Research Establishment s Assessment Method (BREEAM) is a recognised process to guide the design and assess the facility s performance in terms of environmental sustainability. Some Local Authorities may have policies requiring developments to achieve a certain BREEAM rating. page 24

25 6.0 Key stages of the planning process The Portal provides detailed information on the planning process and allows applications to be submitted online. It is advisable to develop a realistic planning programme, preferably at the feasibility stage of the project. The period for preparing and determining a planning application can vary significantly according to the level of complexity of the proposal. For example a development requiring an EIA requires a longer period of time for the planning application to be prepared. Other key factors which will impact on planning programmes include carrying out ecology surveys in the appropriate season or gathering bespoke air quality data which can be required for EfW projects, particularly if the application site is near sensitive ecology sites. Figure 1- Key Stages of the Process Consult the community Initiate pre-application discussions with Authority Confirm if Impact Assesment is required Consult Prepare Appplication Submit Appplication Local Authority Consultation Sign off legal agreements if applicable Issue of Decision Notice Discharge of pre commencement conditions the Local Authority page 25

26 6.1 Initiate pre-application discussions At the outset, proposals should be discussed with the relevant LPA prior to submitting the planning application. The LPA will be able to provide advice on the requirements for the planning applications including the forms, certificates, plans and supporting information which is required to be submitted with the application. They should also be able to advise on any key planning issues which are relevant to the proposed site for the development, and also provide advice on consulting with the local community and stakeholders prior to the application being submitted, which is now a legal requirement for certain proposals. All LPAs should be happy to engage in pre-application discussions. However, it is now becoming common for planning authorities to charge for this service. It is advisable to check relevant websites or call the authority planning reception for assistance on this matter. For proposals in London with a waste capacity over 50,000 tonnes per annum it would be advisable to also consult the Greater London Authority (GLA). The GLA provides pre-application advice to developers although there is a charge for this service. 6.2 Confirm whether an Impact Assessment (EIA) is required. Certain waste proposals will require an EIA to be carried out. Essentially there are two categories of development for the purposes of EIA: Schedule 1 developments are those where an EIA is always required. This would include incineration of hazardous waste or incineration of more than 100 tonnes per day of non-hazardous waste; and Schedule 2 developments may require an EIA if they fall above certain thresholds and are likely to have a significant effect. This would include development which involves incineration (other than that specified in schedule 1 above) or exceeds 0.5 ha or is in a sensitive area e.g. a National Park or Area of Outstanding Natural Beauty (AONB). Guidance states that an EIA is less likely to be required on waste facilities with a capacity under 50,000 tonnes per annum. The developer can submit a screening opinion request in order to confirm whether an EIA would be required. The EIA Regulations require an EIA to be submitted in support of a proposal which is likely to have potential significant impacts on the environment. A waste proposal could have transport, ecology, air quality, noise, archaeology, ground condition, landscape/visual and flood risk impacts. Where considered significant these will need to be assessed, with assessments submitted with the planning application to allow the LPA to consider the potential impacts. If no EIA is needed then supporting information may still be required, such as a transport assessment and ecology surveys. It should be noted that the proposed connection of the EfW facility to allow electricity or heat off-take does not need to form part of the planning application. However, if the proposal is an EIA type development, any environmental impacts of the transmission line must be assessed separately. page 26

27 6.3 Undertake pre-application consultation with the local community EfW proposals can be controversial and cause delays during the planning phase. Local communities can be concerned about a number of issues including: increased traffic; visual impact; noise generation; and dust and odour. Effective communication with the local community and other stakeholders can help significantly reduce the risk of a planning application being refused and is now a legal requirement of the planning process for certain proposals. It is important to consider consultation early in the process in discussion with the LPA. They may have ideas about who should be consulted and how best to carry out the consultation. Most authorities will have a Statement of Community Involvement (SCI) which will set out guidance on pre-application consultation for developers. There a number of key points to consider: Develop a consultation plan: At the outset it is useful to put together a consultation plan which sets out what you are trying to achieve, who should be consulted, when and how. Deciding who to consult: Different people and organisations will have differing interests in the proposals. In the case of neighbours to the scheme and Parish/ Town Councils it can help build trust if they are made aware of the proposals early in the process. Deciding how and when to consult: The timing and method of consultation needs to be appropriate for the audience. It is advisable to give careful consideration to the way the consultation is carried out, the timing and venue for any events. Feedback: It is important to show that you are listening to the local community. Consultation feedback will need to be analysed and results communicated back to those involved. Showing how you have taken account of comments and made changes if possible can be very helpful. Managing expectations: The local community may have their own view of what they can achieve from the consultation process. It is important to manage expectations and be clear about how they can input into the scheme; and Reporting: Most authorities will require a statement to be submitted with the planning application detailing what pre-application consultation has been carried out and with whom. The results should therefore be written up and submitted as supporting information to the application. The government provides guidance on consultation good practice. page 27

28 6.4 Submitting a planning application LPAs encourage planning applications to be submitted electronically via the Portal A planning application fee will be payable to the LPA on submission of the application. The fees will vary according to the type of application made. Guidance can be found at the Portal: When the application is submitted the LPA will go through the process of validating the applications. This involves checking the forms, plans and the planning fee to make sure the application is complete and valid. If there are any problems the application is unlikely to progress until the necessary details have been received. If the application is complete it is confirmed as valid and formally registered, given a reference number and an acknowledgement letter is sent out. 6.5 Local authority consultation, planning decision & right of appeal The application is then advertised and internal/external consultations are carried out by the planning authority. The Town and Country (Development Management Procedure) Order 2010 sets out the requirements to publicise and consult on planning applications. The statutory period for consultation is 21 days. The application is also made publically available, and occupiers of properties immediately adjacent to the site should be notified, giving them the opportunity to comment (if they wish). Any written comments received from the public or consultees are available for anyone to see via the authority. Energy from waste proposals are classed as a major development and should therefore be determined within 13 weeks or 16 weeks if an EIA is required. It is not unusual for these statutory periods to be exceeded. 6.6 Community Infrastructure Levy The Community Infrastructure Levy (CIL) allows local authorities in England and Wales to raise funds from developers undertaking new build projects in their area. The money can be used to fund a wide range of infrastructure that is needed as a result of the development. This includes new roads or safer road schemes, flood defences, schools, hospitals and other health and social care facilities, park improvements, green spaces, leisure centres, etc. More information about the CIL can be found via the Department for Communities and Local Government. page 28