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PRACTICE NOTES
Key legislation Environmental impact assessment (EIA) aims to protect the environment by ensuring that a planning decision-maker, including a local planning authority (LPA), in deciding whether to grant planning permission for a project which is likely to have significant effects on the environment, takes into account those likely significant effects in the decision-making process. EIA in respect of town and country planning matters is governed by: • the Town and Country Planning (Environmental Impact Assessment) Regulations 2017 (English EIA Regulations), SI 2017/571 in England, and • the Town and Country Planning (Environmental Impact Assessment) (Wales) Regulations 2017 (Welsh EIA Regulations), SI 2017/567 in Wales together the 'EIA Regulations'. The EIA Regulations transpose into English and Welsh law the changes made by Archived Directive 2014/52/EU to Archived Directive 2011/92/EU on the assessment of the effects of certain public and private projects on the environment (as they had effect immediately before IP completion day—11 pm on 31 December 2020), in so far as they govern town and country planning matters. For information on how Brexit has impacted
PRECEDENTS
Produced in partnership with DLA Piper UK LLP As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content. For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources. 1 Definitions In this schedule: Environment means any and all living organisms or ecosystems (including, without limitation man, flora and fauna), and the media of air (including without limitation, air within buildings, other man-made structures and natural structures above or below ground), water (including without limitation controlled waters as defined in section 104 (1) of the Water Resources Act 1991, and water within drains and sewers), and land (including without limitation buildings and other man-made structures above or below ground); Environmental Agreement means an agreement, covenant, guarantee, indemnity
PRECEDENTS
Produced in partnership with DLA Piper UK LLP As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. This has an impact on this content. For further guidance, see Practice Note: Brexit—impact on environmental law and News Analysis: Brexit Bulletin—key updates, research tips and resources. 1 Definitions In this schedule: Environment means any and all living organisms or ecosystems (including, without limitation man, flora and fauna), and the media of air (including without limitation, air within buildings, other man-made structures and natural structures above or below ground), water (including without limitation controlled waters as defined in section 104 (1) of the Water Resources Act 1991, and water within drains and sewers), and land (including without limitation buildings
NEWS
Public Law analysis: The Court of Appeal held that, for the purposes of the Environmental Information Regulations 2004 (EIR 2004), reg 12(4)(a) environmental information is ‘held’ by a public authority at the date it receives the original request, not at the date of any internal review under EIR 2004, reg 11. The same temporal focus applies to the reg 12(1) assessment insofar as EIR 2004, reg 12(4)(a) is engaged. An internal review examines whether the original response complied with the Regulations; it does not create a continuing duty to search for later-acquired material. Public authorities may therefore confine reviews to the original information position, while applicants seeking subsequently created or obtained information must ordinarily submit a fresh request. Produced in partnership with Kyran Kanda, barrister of St Philips Chambers.
PRACTICE NOTES
Chemical sites in the UK There are a significant number of operational and no longer operational chemical sites in the UK. In the vast majority of cases, these properties are located in areas of industrial development. However, this does not mean that the surrounding environment is not sensitive—sites located in the North East along rivers like the Tyne are adjacent to mud flats that have been designated a Site of Special Scientific Interest (SSSI). Older chemical sites have often been developed, and those located near the centre of towns and cities may have been developed for residential end use. Potential environmental liabilities associated with chemical works Operational chemical sites have the potential to cause environmental damage from their bulk liquid storage and processing areas or waste stream—particularly associated with their drainage system. In addition, fires at these facilities have potential to cause significant damage, for example the 2011 Chemie Pack fire in Rotterdam. Case study—Chemie Pack, Rotterdam: • 5 January 2011—a devastating fire started on the Chemie-Pack site, located on a large industrial park in Moerdijk, 35
PRACTICE NOTES
Environmental insurance is a useful way of managing environmental risks stemming from the work carried out by contractors and consultants. For more on environmental insurance generally, please see Practice Notes: • Environmental insurance—why take out environmental insurance? • Environmental insurance—types and extent of coverage Scope of activity For the purposes of this note, contractors and consultants are parties that have been engaged to complete work on behalf of a client. Contractors are usually those that complete the work, while the consultant may complete design or investigative activities. While these activities are relevant to contaminated land consultants and contractors, the potential scope of activity is much wider, including: • architects that may complete a design for fuel storage • a foundation and earthworks contractor that may disturb soils, and • internal fix contractors that may handle chemicals (even glue) in confined spaces Potential environmental liabilities associated with contracted and consulting works Potential environmental liabilities that may be associated with contractors or consultants include: • pollution introduced to a construction site (ie a fuel bowser that spills) • existing
PRACTICE NOTES
Landfills in the UK Historically, landfills in the UK were operated under a dilute and disperse approach, where contamination from them was permitted to discharge slowly to the environment. The adoption of the Waste Framework Directive, Directive 2008/98/EC and the Landfill Directive, Directive 1999/31/EC, among other statutory controls, resulted in fundamental changes: • the requirement for landfill has reduced with landfill tax, diversion targets and recycling targets • design, construction and containment management has improved • there are stricter controls on operational sites, such as pre-treatment of waste and a ban on liquid waste • environmental permits can only be surrendered when a landfill no longer poses risks to the environment or human health, and • financial bonds are required by the operator to pay for aftercare obligations Consequently, the number of operational contained landfills is in decline, while there remains a significant number (many thousands) of historical dilute and disperse landfills across the country. Dilute and disperse landfills comprise former quarries or areas of raised ground that were used to dispose of a variety of wastes—historically
PRACTICE NOTES
Petrol stations in the UK From a peak of 39,958 in the late 1960s, there are now around 8,400 petrol forecourts in the UK. When considering any environmental liability associated with petrol stations, consideration should be given to those locations that are: • operational forecourts • forecourts due to close and be redeveloped, and • closed forecourts that were redeveloped in the past Given their location (often) in town centres, redevelopment is often completed for residential end use. Although forecourts sell fuel from the oil majors, the businesses themselves are owned by smaller entities. The improvement in land value associated with redevelopment has driven the closure of many petrol stations, especially as small businesses operating them have found it hard to remain profitable. Potential environmental liabilities associated with petrol stations Petrol stations have the potential to cause environmental damage from: • the leakage of fuel from underground storage tanks (USTs) and the associated pipeline system to the pumps • leakage from drainage systems, surface run off of spills or the poor performance of drainage interceptors, and • vapours
PRACTICE NOTES
The need for environmental insurance Development of brownfield or redeveloped land has the potential to increase the value of a client’s property. However, the client may face the following liabilities: • unidentified pollution conditions present at the site • unknown ongoing impact to third parties beyond the boundary of the site • exacerbation (such as by piling activities of contractors) of existing pollution within the site, and • introduction of new pollution at the site Some clients may be willing to accept this risk, however others and stakeholders (including funders, future tenants and neighbours) may require insurance to be purchased. For more
PRACTICE NOTES
Environmental insurance is a useful way of managing environmental risks, both for operational businesses and in many transactions and development projects. For more on environmental insurance generally, please see Practice Notes: • Environmental insurance—why take out environmental insurance? • Environmental insurance—types and extent of coverage Pollution legal liability insurance When focusing on transactions, the pollution legal liability (PLL) insurance product is often used to manage unknown liabilities residual to a transaction—for example as the result of suspected but unidentified pollution. This has the benefit of providing financial confidence to stakeholders,
PRACTICE NOTES
Originally produced in partnership with Duncan Spencer of EDIA Ltd and Argyll Environmental Ltd. This Practice Note provides an overview of the scope and types of environmental insurance, including environmental insurance for property, businesses, or contractors. It also considers extent of insurance for property transfer, operational or business risk and contractors’ risk policies, as well as the impact of climate change on the insurance industry. Environmental insurance Environmental insurance is a risk transfer solution to indemnify the insured against losses arising as a result of potential environmental liabilities. There are a range of insurance products available to cover the variety of losses that can potentially arise as a result of environmental liabilities. For more on environmental insurance, see Practice Notes: • Environmental insurance—why take out environmental insurance? • Environmental insurance—transactions • Environmental insurance—remediation and development projects • Environmental insurance—contractors and consultants • Environmental insurance—chemical sites • Environmental insurance—landfills • Environmental insurance—petrol stations Who is the insurance for? The type and extent of coverage will vary dependent on the individual or organisation
PRACTICE NOTES
Originally produced in partnership with Duncan Spencer of EDIA Ltd What is environmental insurance? Environmental insurance is a risk transfer solution to indemnify the insured against losses arising as a result of potential environmental liabilities. The insured for property based coverage can be the buyer or seller of a property, or often both. A separate environmental insurance policy is often required because public liability insurance typically excludes environmental liabilities with the exception of sudden, unintended and unexpected pollution incidents. In addition, public liability insurance will only provide cover for third party damages, and not for the remediation of the property of the insured. Insurance policies are available to provide cover for a variety of potential losses arising from environmental liabilities including: • on-site remediation • off-site remediation • civil disputes, and • legal expenses Role of insurance Obtaining insurance may enable transactions or developments to proceed where there are environmental risks and liabilities as it provides financial security and removes uncertainty. It places the risk of liability with a suitable third party carrier. Insurance