We received extensive responses to two public consultations on the review of exemptions, the second being on the draft Environmental Permitting (England and Wales) (Amendment) (No.2) Regulations 2009, which is due to come into force on 6 April 2010 but will not, subject to transitional provisions, be fully implemented until October 2013.
We are committed to introducing a system to regularly review and amend exempt waste operations in the future. We have suggested that the first review should be conducted in 2013, to coincide with the end of the transitional period for existing operations to have re-registered or applied for an environmental permit.
This will provide the opportunity to draw on operational experience to assess how well the revised exemptions are working. However, DEFRA would consider specific amendments to the exemptions if it becomes necessary to do so.
We are currently consulting publicly on draft Government guidance to accompany the Regulations. Chapter 14 of the draft guidance sets out proposed criteria and considerations for future reviews.
An explanation of the methodology used to estimate the costs for policy option three is provided in chapters six and seven of the impact assessment which accompanies the Explanatory Memorandum to the Environmental Permitting (England and Wales) (Amendment) (No. 2) Regulations 2009.
These chapters explain the risk based approach adopted during the development of the revised exemptions and give an overview of the types of administrative and direct costs incurred under each option.
Based on the available information, we believe that around half of the metal recycling operations (c460) operating under the current chargeable paragraph 45 exemption from environmental permitting would continue to do so if the proposed tonnages applied.
Under the revised regime those operations which remain exempt or could register for an exemption for the first time would no longer be subject to either the initial registration fee (currently £724) or annual re-renewal fee of £272. The remainder will incur additional costs associated with applying for an environmental permit which are likely to exceed the current registration fee.