Guidance Draft Legislation Transposing the Environmental Liability Directive Introduction 1. The Environmental Liability Directive (ELD) provides for the prevention and remediation of environmental damage and gives form and substance to the polluter pays principle. It seeks to promote compliance with good environmental practice by inducing those concerned to adopt measures and develop practices that minimise the risks of environmental damage and reduce their exposure to financial liabilities. This should result in a higher degree of environmental protection and minimise the need for enforcement. 2. The Screening Regulatory Impact Analysis (RIA) on the ELD outlines the options for the transposition into Irish law of the ELD. It discusses the legal and operational issues in transposing specific articles of the ELD, and it reflects the approach being adopted in the legislation transposing the ELD; Appendices 3, 4 and 5 are particularly relevant. 3. Primary and secondary legislation is necessary to transpose the ELD into Irish law. The primary legislation provides for the transposition of the discretions contained in the ELD and an overview of this legislation is provided below. However, this guidance document primarily concerns the secondary legislation which transposes the great majority of the ELD's provisions. 4. A Transposition Table is provided at the end of this document detailing how the various Articles in the ELD relate to the primary legislation (Bill) and the secondary legislation (Regulations). 5. The Environmental Protection Agency (EPA) is being designated as the competent authority for the purposes of the ELD. Overview of the Primary Legislation - Bill 6. The draft Environmental Liability Bill contains 5 Heads and 1 Schedule. The explanatory notes in the Bill explain the purpose of each Head and the Bill. That guidance is not intended to be a legal interpretation of the Bill. 7. The Bill provides for the transposition of the discretionary provisions of the ELD. It provides that: the Minister may make regulations to extend the provisions of the ELD to other species and habitats not embraced by the Annexes of the Birds and Habitats Directives; operators are exempt from liability where the operator demonstrates that the damage was caused by activity/emission expressly authorised by a regulatory authority i.e. 'permit' defence, with the exception of the use of genetically modified organisms (GMOs) for cultivation (including field trials); operators are exempt from liability where the operator demonstrates that the activity/emission was not considered likely to cause environmental damage according Guidance: Draft Environmental Liability Regulations (version 1) page 1 of 13 8. to the state of scientific and technical knowledge at the time i.e. 'state-of-the-art' defence, with the exception of the use of genetically modified organisms (GMOs) for cultivation (including field trials); third parties may request action in the case of an imminent threat of environmental damage subject to certain restrictions; and the spreading of sewage sludge is excluded as an Annex III activity. It also provides for the appropriate transposition of Annex III of the ELD by referring to the relevant Irish transposing legislation for the various Directives associated with the activities included in Annex III. Overview of Secondary Legislation - Regulations 9. The draft Environmental Liability Regulations contain 21 Regulations and 5 Schedules. The guidance below explains the main provisions of these Regulations and it should be read in conjunction with the Regulations. The guidance is not intended to be a legal interpretation of these Regulations. 10. The Regulations provide that when there is an imminent threat of environmental damage or environmental damage has occurred, the operator of the activity is required to take immediate steps to prevent damage occurring or prevent further damage occurring, and to notify the competent authority (EPA). 11. Once the EPA is aware of an imminent threat of environmental damage or of an instance of environmental damage, either because it has been reported by an operator or interested party or through other means, the EPA must: determine whether there is 'environmental damage'; establish the responsible operator; assess the significance of the damage; and advise the operator accordingly. 12. Where environmental damage has occurred, the operator of the activity is required to identify potential remedial measures and to submit these to the EPA for approval. The EPA is responsible for deciding what remedial measures will be implemented, taking account of the measures proposed by the operator and the views of interested parties, before requiring remediation by the operator. Operators are responsible for carrying out remedial measures. 13. Operators are responsible for the costs of preventive and remedial actions. In addition, costs incurred by the EPA can be recovered from the operator. 14. The EPA is responsible for overseeing the operation of the Regulations and ensuring that operators fulfil their obligations. Powers are provided to the EPA for this purpose. Regulation 1 - Citation and Commencement 15. This Regulation provides details of the commencement date. These Regulations will commence on a date which will correspond with the enactment of the primary legislation, referred to above. Guidance: Draft Environmental Liability Regulations (version 1) page 2 of 13 Regulation 2 - Interpretation 16. This Regulation provides details of the various definitions used in these Regulations and effectively transposes Article 2 of the ELD. The issues relating to the transposition of these definitions is outlined in Appendix 4 of the Screening RIA. Some of the key definitions are detailed below. Environmental Damage 17. The Regulations do not cover all types of damage to the environment. They relate only to 'environmental damage' as defined which means damage to protected species and natural habitats, water damage and land damage. 18. Environmental damage that comes within the scope of the ELD/these Regulations is 'any damage that has significant adverse effects' in the case of protected species and natural habitats, 'any damage that significantly adversely affects' in the case of water damage, and 'a significant risk of human health being adversely affected' in the case of land damage. In each case, it is important to determine what constitutes 'significant' so as to establish whether or not the damage in question is environmental damage which comes within the scope of these Regulations or if the damage is more appropriate to be dealt with under existing liability regimes (where these exist). The assessment in each case will be a matter for the EPA to decide. Damage to protected species and natural habitats 19. 'Damage to protected species and natural habitats' means any damage that has significant adverse effects on reaching or maintaining the favourable conservation status of such habitats or species; some exemptions are provided. 20. To ascertain if environmental damage to protected species and habitats has occurred, it is necessary to consider the scope of 'protected species and habitats' that are covered by these Regulations, their 'favourable conservation status' and their 'baseline condition'. The Regulations define these terms. 21. The significance of any damage that has adverse effects on reaching or maintaining the favourable conservation status of habitats or species has to be assessed by reference to the conservation status at the time of the damage, the services provided by the amenities they produce, their capacity for natural regeneration and other criteria outlined in Schedule 1 to these Regulations (i.e. Annex I of the ELD). Determining the significance of this damage will be a matter for the EPA. Protected species and natural habitats 22. For the purposes of these Regulations, 'protected species and natural habitats' include a number of species of birds, animal and plants, and habitats, these are: the species of birds, identified in the Birds Directive, 79/409/EEC (listed in Annex I of that Directive and referred to in Article 4(2) of that Directive); the species of animals and plants, identified in the Habitats Directive, 92/43/EEC (listed in Annex II and Annex IV - this includes species listed in both Annexes, and those in either Annex); these species include the salmon, river lamprey, Killarney shad, whiteclawed crayfish, common and grey seals, freshwater pearl mussel, shining sickle moss and petalwort; the bottlenose dolphin, harbour porpoise, Killarney fern and the Kerry Guidance: Draft Environmental Liability Regulations (version 1) page 3 of 13 - - - slug; the natterjack toad; all species of whales and dolphin; and all species of bat including the lesser horseshoe bat; the habitats of species of birds identified in the Birds Directive, 79/409/EEC (listed in Annex I of that Directive and referred to in Article 4(2) of that Directive); for example the habitats of the species - hen harrier, merlin, corncrake, little egret; the habitats of species of animals and plants identified in the Habitats Directive, 92/43/EEC (listed in Annex II of that Directive); for example the habitats of the species salmon, river lamprey, Killarney shad, white-clawed crayfish, common and grey seals, freshwater pearl mussel, shining sickle moss and petalwort; the natural habitats identified in the Habitats Directive, 92/43/EEC (listed in Annex I of that Directive); these habitats types include sand dunes and raised bogs; and the breeding sites or resting places of the species, listed in Annex IV of the Habitats Directive, 92/43/EEC. 23. The above species of birds, animals and plants, and habitats will attract the liability provisions of these Regulations wherever they occur in Ireland. As such, whether such species and habitats are in Special Areas of Conservation, National Parks, Natural Heritage Areas or indeed in any part of Ireland, inclusive of the 200 mile exclusive fishery limit, the same level of protection applies under these Regulations, and boundaries will not present any limits on protection. Operators should ensure that they are familiar with the species and habitats protected under these Regulations. 24. Additional species and habitats may be included but, in this event, these will be subject of separate regulations - this is outlined in the Bill. Further details on this aspect are outlined in Appendix 3 of the Screening RIA. Land Damage 25. 'Land damage' means any land contamination that creates a significant risk of human health being adversely affected as a result of the direct or indirect introduction, in, on or under land, of substances, preparations, organisms or micro-organisms. 26. The significance of the risk of human health being adversely affected needs to be assessed. A number of factors should be considered in assessing land damage and determining whether the risk of human health has been significant or otherwise, these include: the characteristic and function of the soil; the type and concentration of the harmful substances; preparations, organisms or micro-organisms; their risk and the possibility of their dispersion. Determining the significance of this damage will be a matter for the EPA. Water Damage 27. 'Water damage' means any damage that significantly adversely affects the ecological, chemical and/or quantitative status and/or ecological potential, as defined in the Water Framework Directive, of the waters concerned; some exceptions are provided. The Regulations identify the body of waters which come within the scope of the Regulations. 28. Water damage that has a significant risk of human health being adversely affected comes within the scope of these Regulations. Assessing water damage will depend on the assessment of the monitoring data available before and after the incident of damage occurs. Determining whether this damage is such that it significantly adversely affects the parameters Guidance: Draft Environmental Liability Regulations (version 1) page 4 of 13 involved or is simply damage/deterioration with respect to the parameter concerned will be a matter for the EPA to decide. Waters 29. For the purposes of these Regulations, 'waters' means all waters covered by the Water Framework Directive and as such includes all waters from rivers to lakes to coastal waters out to 12 nautical miles (i.e. including the territorial seas). The area between 12 nautical miles and the 200 mile exclusive fishery limits is not included for the purposes of water damage. Apart from this area, there has been no exclusion of any stretch of water regardless of its size. Regulation 3 - Scope 30. This Regulation transposes Article 3 of the ELD and outlines the activities to which the Regulations apply. Although liability provisions vary depending on the activity concerned, these Regulations have implications for all occupational activities. Schedule 3 Activities 31. Regulation 3(1)(a) provides that an operator of certain occupational activities, identified in Schedule 3 (Annex III of the ELD), is strictly liable for environmental damage caused by that activity and to any imminent threat of such damage occurring because of that activity. The activities listed in Schedule 3 are activities which are regulated under various Irish statutes and are considered to be of higher risk to the environment. As outlined earlier, the primary legislation provides for references to be made to the Irish transposing legislation for these activities rather than to the Directives. Other Activities 32. Regulation 3(1)(b) provides that for all other occupational activities, other than those listed in Schedule 3, the operator is liable for damage to protected species and habitats caused by that activity and to any imminent threat of such damage occurring because of that activity, where the operator has been at fault or negligent. 33. Regulation 3(3) provides that private parties are not given a right of compensation as a consequence of environmental damage or of an imminent threat of such damage. Integration with existing regimes 34. Existing domestic legislation that addresses damage to the environment remains in place and Regulation 3(4) provides that the Regulations are without prejudice to the generality of the provisions of existing domestic legislation. Effectively, where environmental damage occurs, the liability-related actions are likely to be taken under these Regulations rather than under the powers in domestic legislation (where these exist) but not under both sets of legislation because the scope and effect of existing domestic legislation is not as great as that provided in these Regulations. Operators should ensure that they are aware of their responsibilities under existing legislation as well as under these Regulations. Guidance: Draft Environmental Liability Regulations (version 1) page 5 of 13 Regulation 4 - Exceptions 35. This Regulation transposes Article 4 of the ELD and provides for a number of exceptions from the liability scheme. Environmental damage or an imminent threat of such damage resulting from the following are excluded from the scope of these Regulations: (i) an act of armed conflict, hostilities, civil war or insurrection; (ii) a natural phenomenon of exceptional, inevitable and irresistible character; (iii) activities the main purpose of which is serve national defence or international security; (iv) activities the sole purpose of which is to protect from natural disasters; and (v) damage caused by pollution of a diffuse character (where it is not possible to establish a causal link between the damage and the activities of individual operators). 36. Regulations 4(2), 4(3) and 4(4) provide other exceptions. They preclude the application of the Regulations to environmental damage or to an imminent threat of such damage arising from an incident in respect of which liability or compensations falls within the scope of a number of conventions. Further details in relation to the exceptions are provided in Appendix 3 of the Screening RIA. Regulation 5 - Temporal application 37. This Regulation transposes Article 17 of the ELD and outlines the time limits for application of the ELD. 38. The "operative date" of the ELD/these Regulations in Ireland will be the date on which the transposing instrument comes into effect. As such, environmental damage caused by an emission, event or incident which takes place prior to the "operative date" is not covered by these Regulations; and environmental damage caused by an emission, event or incident which takes place after the "operative date" but which has derived from a specific activity which took place and finished before the "operative date" is not covered by these Regulations. 39. In addition, this Regulation provides that environmental damage caused by an emission, event or incident which took place 30 years previously is not covered by these Regulations. This means that an operator would not be considered liable for an incident which caused environmental damage which has only recently come to light where that incident occurred more than 30 years previously. Regulation 6 - Competent authority 40. This Regulation transposes Article 11 of the ELD and provides for the EPA to be designated as "the competent authority" for the purposes of these Regulations. 41. The Regulation also outlines the duties of the EPA with respect to instances of environmental damage or an imminent threat of such damage which include: establishing which operator has caused the damage or the imminent threat of damage; assessing the significance of the damage; and determining which remedial measures should be taken. Guidance: Draft Environmental Liability Regulations (version 1) page 6 of 13 Regulation 7 - Preventive action 42. This Regulation transposes Article 5 of the ELD and outlines the operator's responsibilities with respect to an instance of an imminent threat of environmental damage. The responsibilities of the EPA are also outlined. 43. An operator is required to take the necessary preventive measures where an imminent threat of environmental damage occurs. While there are similar provisions in existing domestic legislation these are not as extensive as the corresponding provisions in these Regulations. It is intended to allow these regimes to exist in parallel with these Regulations especially as some of these provisions apply to damage to the environment outside the scope of these Regulations. 44. It is noted that an operator may not, in all circumstances, have sufficient information to determine whether the imminent threat of damage is indeed environmental damage as defined in the ELD/Regulations. However, it is considered that, where an operator is in doubt, they should adopt a precautionary approach and take the necessary preventive measures. 45. The Regulation also provides that it is an offence for an operator not to comply with its specific obligations on preventive action. Regulation 8 - Remedial action 46. This Regulation transposes Article 6 of the ELD and outlines the operator's responsibilities with respect to the occurrence of environmental damage. The responsibilities of the EPA are also outlined. 47. An operator is required to take the necessary remedial measures where environmental damage occurs. This includes specific remedial measures under this Regulation and remedial measures under Regulation 9. 48. It is noted that an operator may not, in all circumstances, have sufficient information to determine whether the actual damage is indeed environmental damage as defined in the ELD/Regulations. However, it is considered that, where an operator is in doubt, they should adopt a precautionary approach and take the specific remedial measures detailed in Regulation 8(1)(a). 49. The Regulation also provides that it is an offence for an operator not to comply with its specific obligations on remedial action. Regulation 9 - Determination of remedial measures 50. This Regulation transposes Article 7 of the ELD and outlines the steps to be taken in determining the appropriate remedial measures. An operator is required to identify the potential remedial measures in accordance with Schedule 2 to these Regulations (i.e. Annex II of the ELD), and to submit these to the EPA for their approval. Prior to making a decision on the remedial measures to be taken and the appropriate prioritisation of these, the EPA is required to consult with relevant persons. Guidance: Draft Environmental Liability Regulations (version 1) page 7 of 13 51. The Regulation also provides that it is an offence for an operator not to comply with its specific obligations on the identification and submission of the potential remedial measures. Regulation 10 - Land owners 52. This Regulation provides that land owners cooperate as required with the EPA and operators in implementing remedial measures; it gives powers to the EPA to direct land owners to cooperate. 53. The Regulation also provides that it is an offence for a land owner not to comply with a direction from the EPA. Regulation 11 - Request for Action 54. This Regulation transposes Article 12 of the ELD and defines these persons who are entitled to request the EPA to take action in instances of environmental damage or an imminent threat of such damage. Such persons are those affected or likely to be affected by environmental damage, or those having a sufficient interest in environmental decision making relating to the damage. 55. The persons having a sufficient interest in environmental decision making include organisations whose aims or objectives relate to the promotion of environmental protection or who have, during the period of 12 months preceding the request for action, pursued those aims or objectives. Local authorities, other agencies and environmental non-governmental organisations who satisfy these requirements are considered to be those who have a sufficient interest in environmental decision making. For the purposes of this Regulation, persons and organisations who are affected by environmental damage and the aforementioned organisations are considered to be the persons referred to in Regulation 11(1). 56. The Regulation also outlines the steps to be taken where the person requests the EPA to take action, and the actions required of the EPA in such instances. 57. The EPA may dismiss a request for action relating to an instance of an imminent threat of environmental damage in certain situations - this is outlined in the Bill. Further details on this aspect are provided in Appendix 3 of the Screening RIA. Regulation 12 - Review procedures 58. This Regulation transposes Article 13 of the ELD and provides that the persons referred to in Regulation 11(1) may apply to the High Court to undertake a review of the EPA's decisions by way of judicial review. Regulation 13 - Prevention and remediation costs 59. This Regulation transposes Article 8 of the ELD and provides that the operator bears the costs of preventive and remedial actions taken. Costs are defined in Regulation 2 and include the costs of assessing environmental damage, an imminent threat of such damage, alternatives for Guidance: Draft Environmental Liability Regulations (version 1) page 8 of 13 action as well as the administrative, legal and enforcement costs, the costs of data collection and other general costs, monitoring and supervision costs. 60. Regulation 13(2) provides that where the EPA incurs costs in relation to preventive or remedial actions taken, it may recover these costs from the operator who has caused the damage or the imminent threat of damage. 61. Regulation 13(3) provides operators with certain exemptions from the costs of preventive or remedial actions taken in specific situations involving a third party or a public authority. 62. In addition, operators may be in a position to seek an exemption from the costs of remedial action in certain situations as outlined in the Bill - permit and state-of-the-art defences. However, these defences do not apply to the cultivation of GMOs (including field trials). Further details on this aspect are provided in Appendix 3 of the Screening RIA. Regulation 14 - Cost allocation in cases of multiple party causation 63. This Regulation transposes Article 9 of the ELD and provides that costs may be allocated on the basis of joint and several liability i.e. where a group of operators are liable for the costs of remediation, each member of that group is also responsible for the whole amount, irrespective of their actual contribution to the damage. Regulation 15 - Limitation period for recovery of costs 64. This Regulation transposes Article 10 of the ELD and provides for the initiation of cost recovery proceedings by the EPA to be taken within 5 years from the date on which the measures have been completed or the liable operator or third party has been identified, whichever is the later. Regulation 16 - Cooperation with regulatory authorities 65. This Regulation provides powers to the EPA to ensure effective and efficient cooperation with regulatory authorities who may be involved in supporting the EPA for the purposes of these Regulations. Regulation 17 - Cooperation between Member States 66. This Regulation transposes Article 15 of the ELD and provides for cooperation between Member States with a view to ensuring that preventive action and where necessary, remedial action is taken in respect of any environmental damage. This cooperation has particular importance with respect to Northern Ireland and specifically from a water aspect as a number of river basin districts are shared between the two jurisdictions. Arrangements for cooperation between the respective competent authorities will be put in place. Regulation 18 - Register 67. This Regulation provides that the EPA maintains and provides the reports, as necessary and as required under Article 18 of the ELD. Guidance: Draft Environmental Liability Regulations (version 1) page 9 of 13 Regulation 19 - Injunctive Relief 68. This Regulation provides the EPA with powers to seek a High Court order to direct an operator or a land owner to comply with the direction or requirement under these Regulations and to make any other provisions including the payment of costs. 69. It also provides that such applications to the High Court will be permissible regardless of whether or not there has been a prosecution or an intention to prosecute under these Regulations. Regulation 20 - Powers of authorised persons 70. The purpose of this Regulation is to provide that persons, authorised by the EPA may enter any premises where they have reasonable grounds for believing that there is environmental damage or there may be an imminent threat of environmental damage. 71. The Regulation also provides that it is an offence for a person to refuse, obstruct or impede such personnel in carrying out their duties, or not to comply with any direction given by such personnel. Regulation 21 - Offences 72. The purpose of this Regulation is to provide for summary and indictable offences. Summary offences may be prosecuted by the EPA and indictable offences are a matter for the Director of Public Prosecutions. Environment Policy Section Department of the Environment, Heritage and Local Government July 2008 Guidance: Draft Environmental Liability Regulations (version 1) page 10 of 13 Transposition Table Environmental Liability Directive Article 1 Purpose Article 2 1 2 3 (c) 4 5 6 7 8 9 10 11 12 13 14 15 16 Article 3 1 2 3 Article 4 1 2 3 4 5 6 Article 5 1 2 Definitions: environmental damage damage protected species and natural habitats Extension of the habitats and species discretion 1. 2. To be dealt with in the draft Environmental Liability Bill conservation status waters operator occupational activity emission imminent threat of damage preventive measures remedial measures natural resource services and natural resources services conservation status waters operator occupational activity emission imminent threat of damage preventive measures remedial measures natural resource services and natural resources services baseline condition recovery and natural recovery costs Scope and application baseline condition recovery and natural recovery costs other ancillary definitions Scope 3. (1) (2) (3) (4) Exceptions 4. deals with overlap with existing legislation Exceptions (1) (2) (3) (4) (5) (6) Preventive action 7 Preventive action (1) (2) (3) (4) (5) (6) 3 4 Article 6 1 2 Draft Environmental Liability Regulations Not necessary for transposition Citation and commencement Interpretation environmental damage damage protected species and natural habitats Remedial action 8. 3 Guidance: Draft Environmental Liability Regulations (version 1) (1) (2) (3) (4) part of Art 5(4) remaining part of Art 5(4) offences Remedial action part of Art 6(3) remaining part of Art 6(3) page 11 of 13 Environmental Liability Directive Article 7 1 2 3 4 Determination of remedial measures Article 8 1 2 3 Prevention and remediation costs 4 (Permit and State of the Art Defences) 5 Article 9 Article 10 Article 11 1 2 3 4 Article 12 1 2 3 4 Cost allocation - multiple party Limitation period for recovery of costs Competent authority Draft Environmental Liability Regulations (5) offences 9. Determination of remedial measures (1) (2) (3) (4) (5) offences 13. Prevention and remediation costs (1) (2) (3) To be dealt with in the draft Environmental Liability Bill (4) Cost allocation in cases of multiple party 14. causation 15. Limitation period for recovery of costs 6. Competent authority (1) (2) (3) (4) Request for action 11. Request for action (1) (2) (3) (4) To be dealt with in the draft Environmental Liability Bill Review procedures 5 Article 13 1 2 Article 14 1 2 Article 15 1 2 3 Article 16 1 2 Article 17 Article 18 1 2 3 Article 19 Review procedures 12. (1) (2) Not necessary for transposition Financial security Not necessary for transposition Not necessary for transposition Cooperation between member states 17. Cooperation between Member States (1) (2) (3) Relationship with national law Temporal application Reports and review 5 18. Not necessary for transposition Not necessary for transposition Temporal application Register Not necessary for transposition Not necessary for transposition Implementation Guidance: Draft Environmental Liability Regulations (version 1) page 12 of 13 Environmental Liability Directive Draft Environmental Liability Regulations Not necessary for transposition Not necessary for transposition Not necessary for transposition Not necessary for transposition 10. Land owners 15. Cooperation with regulatory authorities 19. Injunctive Relief 20. Powers of authorised persons 21. Offences Criteria in Assessing Damage to Protected Schedule 1 Species and Natural Habitats 1 2 Article 20 Article 21 Entry into force Addressees Annex I Criteria referred to in Article 2(1)(A) Annex II Remedying of environmental damage Schedule 2 Remedying of Environmental Damage Annex III Activities referred to in Article 3(1) Schedule 3 Activities; and to be dealt with in the draft Environmental Liability Bill International conventions referred to in Article 4(2) International instruments referred to in Article 4(4) Information and data referred to in Article 18(1) Schedule 4 International Conventions Schedule 5 International Instruments Annex IV Annex V Annex VI Guidance: Draft Environmental Liability Regulations (version 1) Not necessary for transposition page 13 of 13