Consultation outcome

Supplementary government response

Updated 6 October 2023

1. Background

On 15 January 2018, Defra and the Welsh Government published a consultation on “proposals to tackle crime and poor performance in the waste sector and introduce a new fixed penalty for the waste duty of care” (the 2018 consultation). This focussed on the standard of operator competence at permitted waste sites, reforming the waste exemptions element within the environmental permitting regime to prevent the use of exemptions to cover illegal activity, and introducing a fixed penalty notice for breaches of the household waste duty of care. The summary of responses was published on 3 July 2018. HM Government’s response relating to raising the standard of operator competence at permitted waste sites and introducing fixed penalty notices for breaches of the household waste duty of care was published on 26 November 2018.

This document sets out our approach for reforms to the waste exemptions regime, having considered the 2018 consultation responses.

The waste exemptions regime provides a system where certain low risk waste activities can be carried out under a registration scheme and are exempt from the need to hold an environmental permit. The 2018 consultation reinforced our decision that reform is needed in order to reduce the risk to people and the environment, including through abuse of the existing regime. We have made changes to the detail of our proposals in response to the 2018 consultation to make sure that the changes are proportionate, but still achieve the aim of minimising risk to people and the environment.

Since the 2018 consultation it has emerged that amendments are also required to the waste codes for the management of sewage sludge under the:

• S3 exemption – Storing sludge
• T21 exemption - Recover waste at a waste water treatment works

The amendments required to S3 and T21 have been addressed in England by the Environment Agency (EA) under a temporary Regulatory Position Statement^{[footnote 1]} (RPS) and in Wales under Regulatory Decision 66 - waste codes for sewage sludges and sludges containing other materials. Prior to publication of RPS231 in January 2020, the EA consulted the relevant industry partners regarding these proposals. Details of these changes are provided in Annex 7.

1.1 Summary of changes

Tables 1a to 1d set out a summary of the general changes to be made to the waste exemptions regime. Table 2 sets out the change to be made to the ten waste exemptions of most concern and identifies the Annex in which further details are available.

Summary of general changes to be made to the waste exemptions regime

1a. Prohibiting the use of waste exemptions in specified circumstances – section 2	Further detail
Prohibiting the use of exemptions at/adjacent to permitted sites	Section 2.1
Limiting the number of exemptions registered at a site	Section 2.2

1b. Requiring additional information to support effective regulation – section 3	Further detail
Compulsory requirement for operators to keep and make records available on request	section 3.1
Requirement for operators to keep records in an electronic format	Section 3.2
The ability for regulators to impose additional information requirements	Section 3.3

1c. Improving regulation of exemptions – section 4	Further detail
Exemption charges	Section 4.1

1d. Technical changes to exemptions – section 6	Further detail
Waste Codes	Section 6.1
Consistency of conditions across exemptions	Section 6.2
Other amendments to the Environmental Permitting Regulations	Section 6.3

Table 2 Summary of changes to be made to the ten waste exemptions of most concern: Changes to individual exemptions – section 5

Exemption (current name)	Change	Further detail
U1 – Use of waste in construction	Changing conditions	Section 5.1 and Annex 1
U16 – Use of depolluted ELVs for parts	Removal	Section 5.2
T4 – Preparatory treatments	Changing conditions	Section 5.3 and Annex 2
T6 – Treatment of waste wood	Changing conditions	Section 5.4 and Annex 3
T8 – Mechanically treating end-of-life tyres	Removal	Section 5.5
T9 – Recovery of scrap metal	Removal	Section 5.6
T12 – Manual treatment	Changing conditions	Section 5.7 and Annex 4
D7 – Burning of vegetation at the place of production only	Changing conditions	section 5.8 and Annex 5
S1 – Storage in containers	Changing conditions	Section 5.9 and Annex 6
S2 – Storage in a secure place	Changing conditions	Section 5.9 and Annex 6

Information is also provided for:

• new standard rules permits – section 7
• transitional provisions – section 8
• future regulatory changes to the waste exemptions regime – section 9

2. Prohibiting the use of waste exemptions in specified circumstances

Waste operators commonly register multiple exemptions at a single site, often with a view to using them together with other exemptions or their permitted activity. This:

• intensifies waste operations and increases the risk profile of a site;
• makes it difficult to establish which activities are covered by the permit or by multiple exemptions, and so determine regulatory compliance;
• complicates monitoring and increases costs for the regulators; and
• is common at sites of concern where illegal activity is discovered.

We therefore consulted on a number of proposals to address these challenges.

2.1 Prohibiting the use of exemptions at/adjacent to permitted sites

The 2018 consultation proposed amending the Environmental Permitting Regulations so that an exempt waste operation could no longer be carried on at a permitted waste operation. The proposal included exempt waste operations carried out adjacent to a permitted waste site that have direct technical links.

Whilst we acknowledge the concerns raised in the consultation, taking the comments as a whole into account, we will prohibit the use of waste exemptions at permitted sites. Waste exemptions are for activities where the risk has been assessed as low on the basis of that activity alone. Similarly, environmental permits are granted subject to conditions on the basis that the permitted activity is the only waste operation being carried out on the site. Where a permitted activity and exempt activity are carried out together, the cumulative risk profile will not have been assessed and may pose an unacceptable risk to people and the environment. Examples of this include registering waste exemptions to allow increased quantities of waste, additional waste types, or different and additional treatment processes to those authorised by the environmental permit. In situations where operators have registered exemptions that extend their waste activities beyond the limits and conditions of their environmental permit, they will need to apply for a permit variation.

Defra and the Welsh Government have given further consideration to the term direct technical links. We will simplify this term to “direct link” and define this term in the Environmental Permitting Regulations and expand in guidance.

“Direct link” means where an exempted waste activity:

• is carried on adjacent to a permitted waste operation, and
• is carried out under the control of the same operator, or
• uses the same staff, equipment or infrastructure without which the exempt waste activity could not take place

This term helps identify where an exemption is prohibited adjacent to a site permitted for waste management activities.

Similarly to prohibiting exemptions being registered at a permitted site, we are prohibiting exemption registration on adjacent sites where there is a direct link. Both the EA and NRW have processes in place to allow trials involving wastes to take place and these should be agreed in advance of commencement with the regulator on a case-by-case basis.

We will amend the Environmental Permitting Regulations to remove the regulation that provides that where an exemption is registered at a permitted waste site, that part of the permit that authorises the exempt operation is revoked^{[footnote 2]}. Instead, the Environmental Permitting Regulations will make clear that any exemption registered at a site operating under an environmental permit, or where there is a direct link will be invalid. The onus will be on the permit holder to make sure that they are not using an exemption to extend their permitted activities in this way. Guidance for waste exemptions will be amended to clarify the type of situations this will apply to.

It is already the case that exempt waste operations cannot be carried out at installations, under Regulation 5 of the Environmental Permitting Regulations. These reforms will therefore ensure consistency with that approach, by making it clear that waste exemptions cannot be registered with a Direct Link to an installation or permitted waste site.

2.2 Limiting the number of exemptions registered at a site

The Environmental Permitting Regulations currently allow the registration of multiple exemptions at a single site, which can result in a number of small-scale, low risk activities having a cumulatively large-scale and complex risk profile. These combined activities often pose a greater environmental risk and should be regulated through a permit. In the 2018 consultation, we proposed reducing this risk by limiting the number or scope of exemptions registered at a single site.

No preference for any of the options presented in the 2018 consultation was expressed. We did however receive comments welcoming restrictions to limit exemptions registered at a site, as it was felt that this would help create a more level playing field with permitted activities, leading to benefits for legitimate operators and better protection of people and the environment.

We have considered the comments received alongside the objective of the reform to prevent the use of multiple exemptions to increase permissible limits and avoid permitting. It was felt that options 2 – 4, limiting a total number, or combinations of, exemptions were overly restrictive and potentially overly complicated and so not appropriate. We will therefore progress with option 1 from the 2018 consultation:

• Clarify the Environmental Permitting Regulations so it is clear that where more than one exemption is registered at a site, then the storage limit for each waste type is limited to the lowest limit set out in those exemptions registered. For example, registering an exemption allowing 50 cubic metres of wood to be stored, together with another exemption allowing 60 cubic metres of wood to be stored would not allow for 110 cubic metres of wood to be stored. Instead, an overall storage limit of 50 cubic metres, the lowest limit of the two exemptions registered would be allowed. It does not matter in what order these exemptions are registered. In order to protect human health and the environment, the lowest storage limit is the limit under which an exemption operator must undertake their activities.

The S1 and S2 exemptions are for the secure storage of waste pending recovery elsewhere. The S1 and S2 exemptions therefore cannot be registered at a site where there is a direct link to any other waste exemption.

Where an operator registers more than one exemption at a site:

• they must comply with all conditions and limitations of the registered exemptions; and
• they must make sure that the total amount of waste at that site at any one time and in any period of time does not exceed the lowest limit in the exemptions registered.

“Site” is an area of land or a continuous linear strip of land on which an exempt waste activity takes place. Accompanying guidance will provide further clarity on the meaning of site, including at farms and linear networks.

3. Requiring additional information to support effective regulation

Very little information is gathered about exempt waste activities. This makes it difficult for the regulators to prioritise compliance activity and inspections. The 2018 consultation sought views on various elements relating to requiring additional information.

3.1 Compulsory requirement for operators to keep and make records available on request for all exemptions.

There was strong support (94%) for operators to keep records and make these available to regulators upon request. We will therefore implement this requirement by amending the Environmental Permitting Regulations to include a general record-keeping and production duty in relation to all exempt waste operations. Some record keeping requirements already exist for a subset of exemptions currently listed in paragraph 17 of Schedule 2 to the Environmental Permitting Regulations. This requirement will take effect immediately once the amended regulations come into force.

Operators will be expected to complete a form made available by the regulators for the specific exemptions they are registering. This form will include information such as the specific waste types handled under their exempt activity and details of waste throughputs. This record must be made available on request at the registered site or by a specified date if the operator receives a written request from the regulator.

Operators of an exempt waste activity will be expected to retain records for the duration of their exempt activity and for one year following the cessation of their activity. Further detail will be provided through guidance.

3.2 The requirement for operators to keep records in an electronic format and/or in a system identified by the regulator

Three quarters (75%) of respondents supported this proposal. We will therefore amend the Environmental Permitting Regulations to stipulate that records must be made available to the exemption registration authority in an electronic format and/or in an IT system identified by the regulator where required.

As with the requirement to keep records, this requirement will take effect immediately once the amended regulations come into force. It will be for the regulator to determine when and how often they will require records to be made available (e.g. as part of a targeted compliance check, or on a regular basis).

For records of waste movements, the Environment Act 2021^{[footnote 3]} contains a power that will enable the introduction of an electronic waste tracking system to improve the quality and accuracy of waste data. HM Government, the Scottish Government, the Welsh Government and the Department of Agriculture, Environment and Rural Affairs in Northern Ireland launched a consultation on the “introduction of mandatory digital waste tracking” on 21 January 2022.

The consultation includes proposals for capturing information from those who are digitally excluded when the waste tracking service is introduced. The regulators will give consideration to the interim requirements for those who are digitally excluded in terms of recording exemption related records. Further detail will be provided through guidance.

3.3 The ability for regulators to impose additional information requirements for individual exemptions on a case-by-case basis at registration, on an ongoing basis, or at the end of an operation

There was strong support for this proposal, with 89% of respondents agreeing that the regulators should be able to impose additional information requirements for individual exemptions. However, there was no strong push for particular additional requirements to be added immediately.

The Environmental Permitting Regulations^{[footnote 4]} already require that an operator, seeking to be registered in relation to a waste operation, must notify the exemption registration authority with a description of the waste operation. We will extend the relevant particulars in Schedule 2 Paragraph 10 to give the regulators scope to request additional information at registration, on an ongoing basis, or at the end of an operation if required. This additional information could include for example how long the operator expects the operation to last, and, during renewals, the records of waste managed during the last registration period.

4. Improving regulation of exemptions

The 2018 consultation set out proposals to improve further the way in which users of exemptions are regulated.

4.1 Exemptions charges

We recognise that most respondents focused on the importance of making sure the right checks are in place at the point of registration to protect against waste crime. A number of respondents also suggested exemptions should be chargeable to fund necessary checks at the point of registration.

The Environment Act 2021 gives the regulators the powers to charge for exemption registrations. These charges will help spending on on-line exemption registration services and act as a barrier to operators registering exemptions unnecessarily. Charges will also help support the delivery of risk-based compliance activity. Any new charges for exemptions will be subject to further consultation by the regulators.

5. Changes to individual exemptions

We have carefully considered the responses to our proposals for the ten exemptions for which we consulted on either removing or changing the conditions. The 2018 consultation included three options, with the exception of the U16 exemption for which option 2 was not considered and D7, S1 and S2 exemptions for which option 3 was not considered:

• option 1 - Keep the exemption with no changes to its conditions;
• option 2 - Change the exemption, amend its conditions; or
• option 3 - Remove the exemption and require activities it covers to be carried out under a permit.

Following consideration of the 2018 consultation responses, and the need to minimise risk to people and the environment, we will change the conditions of seven of the ten waste exemptions and remove three. The details and rationale for each exemption is set out in this section.

5.1 Exemption U1 - Use of waste in construction

The majority (60%) of respondents supported a change to the conditions of the U1 exemption. Concerns were raised about waste being incorrectly described and abuse of the tonnages allowed under the U1 exemption. We were also told that amending the conditions would help create a more level playing field amongst businesses.

We have taken the 2018 consultation responses into account and reassessed the conditions proposed in the 2018 consultation to ensure a balance between the needs of industry and the need to maintain a proportionate level of environmental protection.

We will therefore change the conditions of the U1 exemption to minimise the risk to the environment and human health from abuse. We will do this by restricting waste types, quantities and activities in relation to specific construction activities, rather than specifying an overall limit for the exemption. We will also change the name of the U1 exemption from “Use of waste in construction” to “Use of wastes to construct and maintain surfaces and barriers”. This will add further clarity as to the purpose and intention of the U1 exemption.

The proposed revisions mean that the U1 exemption will be more restrictive than it is currently in relation to the use of waste. However, there are alternative options available that avoid the need for an environmental permit. Waste derived materials can be used without a permit if they have been fully recovered and meet end of waste. For example, by using material that is compliant with a quality protocol^{[footnote 5]} (Quality Protocols will be known as Resource Frameworks in future).

Further details of the changes we will implement can be found in Annex 1.

Taking into account the principles consulted on, we propose a transition period of 12 months from the date the amendments come into force. Further details can be found in section 8.

5.2 Exemption U16: Using depolluted end-of-life vehicles for parts

High levels of illegal activity associated with the U16 exemption have been identified by the regulators. The 2018 consultation therefore sought opinions on either retaining the U16 exemption with no changes to its conditions or removing the exemption altogether. It was felt that changing the conditions would not tackle the risk posed by illegal activity associated with the U16 exemption and this option was therefore not taken forward.

There was overwhelming support (86%) for the removal of this exemption, with respondents emphasising the negative impact the illegal activity has on legitimate businesses.

Due to the negative impact abuse of this exemption has on the environment and concerns raised by the waste management industry, we will remove the U16 exemption. This will mean operators currently using this exemption will require an environmental permit to operate, or cease their U16 exemption related activities.

We do not foresee any negative impacts from removing this exemption. Those who wish to continue this type of waste operation will have to do so under a permit, which will provide more robust regulatory control.

There will be a short transition period of 3 months from the date the amendments come into force. Further details can be found in section 8.

5.3 Exemption T4: Preparatory treatments, such as, baling, sorting, shredding

Almost three-quarters (72%) of respondents supported either changing or removing this exemption, with a small majority (51%) preferring its removal.

Taking into consideration the responses to the 2018 consultation, Defra and the Welsh Government consider that the T4 exemption does have a role to play in supporting the waste collection and recovery market providing the waste activities involved are limited to make sure they are low risk. For this reason, we will change the conditions of the T4 exemption. We will reduce the storage limits and amend the conditions for specified waste types to ensure more frequent turnover and reduce stockpiling. We will also amend the general conditions to minimise fire risk. We will amend the title of the exemption from: “Preparatory treatments (baling, sorting, shredding etc.)” to “T4 Preparatory treatment of waste”.

Further details of the changes that we will implement can be found in Annex 2.

There will be a transition period of 6 months from the date the amendments come into force. Further details regarding the transition period can be found in section 8.

5.4 Exemption T6: Treating waste wood and waste plant matter by chipping, shredding, cutting or pulverising

Three-quarters (75%) of respondents supported either changing or removing this exemption, with a clear preference to change the provisions rather than removing the exemption.

Despite the lower level of illegal activity for this exemption (10%) compared with others, the risks of fire and from the incorrect description of waste wood justify the need for change. The Resources and Waste Strategy for England sets out a strategic approach to waste crime in England, that includes looking at further measures to prevent and tackle fly-tipping. The Welsh Government is working on a Litter and Fly-tipping Prevention Plan that will include measures to tackle fly-tipping.

We recognise the concerns raised and will change the conditions of the T6 exemption in order to minimise risk to people and the environment. We will reduce the storage limits and amend conditions for specified waste types to ensure better turnover and reduce stockpiling. We will amend the title of the exemption from: “Treatment of waste wood and waste plant matter by chipping, shredding, cutting or pulverising” to “Treatment of waste wood and plant matter”.

Further details of the changes that we will implement can be found in Annex 3.

There will be a transition period of 6 months from the date the amendments come into force. Further details can be found in section 8.

5.5 Exemption T8: Mechanically treating end-of-life tyres

More than three-quarters (78%) of respondents supported changing or removing this exemption.

Given the level of risk in relation to fire from the storage of tyres, and evidence that exemption limits are being exceeded by significant amounts, we have concluded that the T8 exemption cannot be retained.

We will therefore remove the T8 exemption from the waste exemptions regime. This will mean that operators currently using this exemption will need to operate under permits or cease their T8 exemption related activities.

We do not foresee the costs of removing the use of this exemption outweighing the benefits to environmental protection and public safety, and expect to see increased compliance for those that move into the permitting regime. We also expect to see a reduction in the types of criminal activity associated with the misuse of the T8 exemption. We anticipate this will benefit legitimate operators who are currently undercut by rogue operators.

Removal of the T8 exemption will not affect those that produce and only store waste tyres as part of their business (e.g. tyre fitters, garages, roadside recovery operators), as storing tyres prior to collection at their own premises is covered by Non-Waste Framework Directive (NWFD) exemptions^{[footnote 6]}.

Due to the negative impacts of illegal activity on legitimate businesses and associated risk to the environment and human health, there will be a short transition period of 3 months from the date the amendments come into force. Further details can be found in section 8.

5.6 Exemption T9: Recovering scrap metal

The majority (82%) of respondents supported changing or removing this exemption, with a close preference for its removal.

Given the level of risk in relation to fire, and the need for proper site drainage and compliance monitoring, the appropriate form of regulation of this waste activity is through the environmental permitting regime.

As such, we will remove the T9 exemption. This will mean operators currently using this exemption will need to operate under permits, or cease activities allowed under the T9 exemption. The removal of the T9 exemption will help level up the metal recycling sector and apply equally to all operators within the sector.

Due to the prevalence of illegal activity associated with the T9 exemption and negative impacts on legitimate businesses, there will be a short transition period of 3 months from the date that the amendments come into force. Further details on transitional arrangements can be found in section 8.

5.7 Exemption T12: Manually treating waste

Nearly three-quarters (74%) of respondents supported changing or removing this exemption, with a clear preference to change the provisions rather than removing the exemption.

Given the low value of some wastes allowed under the T12 exemption, including recycled mattresses that are costly to treat for re-use, and that the profit often comes from taking them in with a gate-fee and then abandoning them, Defra and the Welsh Government believe tighter control would be beneficial. Mattresses are difficult to separate into their constituent parts for processing, are highly combustible, and will therefore be better regulated under a permit.

As such, we will change the conditions of the T12 exemption. We will introduce stricter conditions in order to minimise the risk (including of fire) of waste being stockpiled and then abandoned under a T12 exemption. Further details of the changes can be found in Annex 4.

There will be a transition period of 6 months from the date the amendments come into force. Further details on transitional arrangements can be found in section 8.

5.8 Exemption D7: Burning waste in the open

As set out in the Summary of Responses, 67% of respondents prefer a change to the conditions of the D7 exemption as opposed to maintaining the current conditions.

Defra and the Welsh Government acknowledge the concerns raised during the 2018 consultation. However, these revisions are considered necessary to reduce the environmental risks associated with the use of this exemption and ensure an adequate level of environmental and human health protection. The EA and NRW work with other regulators and where there are other regulatory requirements to burn waste on site, they will consider an appropriate regulatory approach. For example, the EA have published RPS 071 for the disposal of trees and plants infected with specified plant diseases^{[footnote 7]} and RPS 178 for the treatment and disposal of invasive non-native plants^{[footnote 8]}. NRW have adopted similar Regulatory Decisions RD58 for the treatment and disposal of invasive non-native plants and RD59 disposing of trees and plants affected by disease or pests. These Regulatory Decisions are available from NRW on request.

As such we will change the conditions of the D7 exemption. We will adjust storage time limits and conditions and remove the use of certain types of waste to minimise risk to the environment and human health. We will amend the title of the D7 exemption from: “Burning waste in the open” to “Burning vegetation at the site of production”. This name change will provide greater clarity on the scope of activities the D7 exemption covers. Operators that wish to carry on activities that will not be allowed under the revised D7 exemption will need to be authorised to do so under an environmental permit or cease their D7 exemption related activity.

Further details on the changes can be found in Annex 5.

There will be a transition period of 6 months from the date that the amendments come into force. Further details on transitional arrangements can be found in section 8.

5.9 Exemptions S1: Store waste in secure containers, Exemption S2: Storing waste at a secure site, and Exemption S3: Storing sludge

Just over half (57%) of respondents preferred a change to the rules rather than no change, and 80% supported the proposals to split the S1 and S2 exemptions into six new exemptions (numbered S1, S2, S4, S5, S6, and S7).

We received a number of comments in response to the 2018 consultation that were specific to the detailed changes that we initially proposed for the new S1- S7 exemptions. Reflecting these comments and in the interest of ensuring the waste exemptions regime remains clear and usable for operators and regulators, we have decided to retain the S1, S2 and S3 exemptions rather than split them into seven new and revised exemptions. Rather than separating the S1 and S2 exemptions to distinguish between waste types we have reformed and renamed the S1 and S2 exemptions to better reflect material that should be stored in either a secure container or a secure site, pending recovery elsewhere. Our wider reforms to the waste exemptions regime and prohibition on registering multiple exemptions at a site, or on or with a direct link to an environmental permit will secure the protections intended through the 2018 consultation proposals.

Further required amendments to specific waste types allowed under the S1 and S2 exemptions have become apparent since the 2018 consultation. Where necessary, the EA has consulted the relevant industry partners regarding these proposals.

We will also increase the storage limits in Non-Waste Framework Directive (NWFD) exemption 3 (temporary storage of waste at a site controlled by the producer) and NWFD exemption 4 (temporary storage at a collection point) from 50 cubic metres to 100 cubic metres. These NWFD exemptions are often overlooked but allow waste to be stored without the need for an environmental permit or exemption registration.

Further details of the changes we will make can be found in Annex 6.

There will be a transition period of 12 months from the date that the amendments come into force for the S1 and S2 exemptions. Further details regarding transitional arrangements can be found in section 8.

6. Technical changes to exemptions

6.1 Waste codes

We will change waste codes in certain exemptions to make the waste types in those exemptions clearer. The majority of respondents (83%) supported our proposed changes. Respondents indicated that the changes were sensible and pragmatic, would correct previous errors, and would have less potential for incorrectly classifying waste to fit exemptions.

As set out in the summary of responses, we received various additional proposals and concerns to some of our suggested changes. We have taken the suggestions and concerns received into consideration and made sure that these have been balanced against the need for the proposed changes. Details of our changes to the waste codes can be found in Annex 7.

Since the 2018 consultation, it has emerged that amendments are also required to the waste codes for the management of sewage sludge under the S3 exemption (Storing sludge) and T21 exemption (Recover waste at a waste water treatment works). These changes are summarised below:

Exemption T21: Recover waste at a waste water treatment works

There is a need to extend the exemption to allow the treatment of partially treated sewage sludge. This activity has recently been included in RPS 231 in England and Regulatory Decision RD66 in Wales. In order to finalise these RPSs and RDs, consultation with relevant industry partners was undertaken. These additions will reflect industry practice and are low risk.

Details of these changes are provided in Annex 7.

Exemption S3: Sewage Sludge

We will correct an error with the waste codes currently listed for the management of sewage sludge. This change does not alter the storage limits or activities covered by these exemptions. These changes are also addressed in RPS 231 in England and Regulatory Decision RD66 in Wales.

6.2 Consistency of conditions across exemptions

The changes proposed to the seven retained exemptions include alterations to the storage volume and time limits of certain wastes. It is important that, as far as practicable the changes made align with the conditions set under exemptions not listed here. We therefore set out in the 2018 consultation our intention for proposed changes to avoid inconsistency. More than three-quarters (76%) of respondents supported our approach and we have undertaken an exercise to make sure our proposed changes are consistent with the intention of other waste exemptions for the same, or similar, wastes.

6.3 Other amendments to the Environmental Permitting Regulations

Since our 2018 consultation further minor amendments to the Environmental Permitting Regulations have been identified. These amendments provide clarity, correct errors, or ensure consistency across the waste exemptions regime following the proposals set out in the 2018 consultation. These changes do not alter the purpose of the exemption regime. Where these changes do not apply to waste codes, these are set out in Annex 8.

In addition to the proposals set out in the 2018 consultation a minor amendment to an amendment to the Environmental Permitting Regulations made by the Waste (Circular Economy) (Amendment) Regulations has been identified. The amendment we will make will correct a typographical error and does not alter the purpose of the exemption regime or the Waste (Circular Economy) (Amendment) Regulations.

7. Standard rules permits

We recognise that there may be a need for new and amended standard rules permits as a result of the change to, or removal of exemptions covered by these reforms. Standard rules permit applications are an alternative to more complex bespoke permit applications. The regulators conduct separate consultations where necessary on new standard rules permits. Consultations will be held in instances where the regulator considers common waste operations that need a permit as a result of the revisions to the waste exemptions regime and are not covered by existing standard rules permits (as set out on GOV.UK^{[footnote 9]} and NRW’s website^{[footnote 10]}).

8. Transitional provisions

The amendments we are making will result in a number of activities that currently operate under a registered exemption requiring an environmental permit to operate.

The general principles of our approach to transitional arrangements are:

• to prioritise changes during the transition based on environmental risk and any need to enhance the regulators’ ability to exercise appropriate controls
• to allow reasonable time periods for operators to make informed judgements about the options open to their business and to take the necessary steps to comply with new regulatory requirements
• to allow reasonable time periods for operators to make an application for an environmental permit, where applicable, and for the regulators to determine the applications
• to reduce the administrative effort and cost associated with making changes to a minimum for all those who will remain subject to a waste exemption. These activities pose the lowest risk and so should be given the easiest route to regularising their position under the changed system
• those operating under an exemption not listed within this document will not need to re-register, except as part of the usual renewal process
• those operating under an exemption for which the conditions are being changed will not need to re-register, but they will be expected to comply with the new conditions

We originally proposed to include a blanket transitional period of 18 months from the date of the amendments coming into force, or until the expiry of existing exemptions, whichever was soonest. Just over half (52%) of respondents felt that the original proposals were inadequate to implement the changes to the waste exemptions regime. However, as set out in the summary of responses, views were mixed as to whether the transition period was excessive or insufficient.

There was particular concern that the transitional period for exemptions with the highest levels of illegal activity should be minimal, or in some cases the amendments should have immediate effect.

As a result of responses received and discussions with the regulators, we will stagger the approach to the reforms for the waste exemptions regime. We will include a transitional date by which each exemption will either be removed, or from when the amendments will come into force.

The transitional period for each exemption has been considered in line with the general principles that have been set out above. It is intended that the amendments to the Environmental Permitting Regulations will be made within the next year. Further detail when the amendments will come into force will be shared in due course.

Exemption	Change	Transition period (time until regulations come into force, once made)
U1 – Use of wastes to construct and maintain surfaces and barriers	Changing conditions	12 months
U16 – Use of depolluted ELVs for parts	Removal	3 months
T4 – Preparatory treatment of waste	Changing conditions	6 months
T6 – Treatment of waste wood and plant matter	Changing conditions	6 months
T8 – Mechanically treating end-of-life tyres	Removal	3 months
T9 – Recovery of scrap metal	Removal	3 months
T12 – Manual treatment	Changing conditions	6 months
D7 – Burning of vegetation at the site of production	Changing conditions	6 months
S1 – Temporary storage of waste in secure containers pending recovery elsewhere	Changing conditions	12 months
S2 – Temporary Storage of waste at a secure site pending recovery elsewhere	Changing conditions	12 months

Exemption	Transition period (time until regulations come into force, once made)
Prohibiting the use of exemptions at/adjacent to permitted sites	6 months
Limiting the number of exemptions registered at a site	6 months
Compulsory requirement for operators to keep and make records available on request	Immediately
Requirement for operators to keep records in an electronic format	Immediately
Changes to waste codes	Immediately

For those waste exemptions to be removed, we will make provision in the regulations for operators to continue operating under their existing exemptions after the transition date, as long as they have submitted a permit application to the regulators before the transition date. The existing exemption conditions will continue to apply after the transition date, or until the registration of the exemption expires until such time as the permit application is determined. The regulators will set out an approach for managing exemptions where the permit application is incomplete or rejected and will communicate this to industry directly.

For those waste exemptions for which the conditions are to be amended, operators will be able to operate under their existing exemptions (including exemptions that need to be renewed) until the end of the transition period. At the end of the transition period, all exempt operators must comply with the new conditions, or the operator must have made an application for an environmental permit, or the activities must cease.

New exemptions subject to transitional provisions that are registered after the amendments to the Environmental Permitting Regulations can also operate under the existing exemptions until the end of the transition period.

9. Future regulatory changes to Exemptions

As referred to in section 4.1, through the Environment Act 2021 we will give the regulators the powers to charge for exemptions.

The Environment Act 2021 also gives the regulators powers to amend certain exemption conditions without requiring a legislative change. The details for this will be developed at a later date, but it is considered likely that this will be similar to the existing practice for varying conditions in standard rules permits to reflect changing circumstances and new practices. The intention is to allow a similar flexibility for lower risk exempt activities.

Since the 2018 Consultation the regulators have set out examples where operators have had their registrations deregistered in response to enforcement action. In some instances operators have immediately re-registered exemptions to continue to manage waste and receive the associated gate-fee, despite a history of criminal activity associated with their waste activity. In order to tackle waste crime, the regulators will identify the most appropriate mechanism to prevent this illegal activity in the future.

1. Waste codes for sewage sludge and sludge containing other materials: RPS 231 ↩

2. Section 22(8) of the Environmental Permitting (England and Wales) Regulations 2016 ↩

3. https://www.legislation.gov.uk/ukpga/2021/30/section/58/enacted ↩

4. Paragraph 10, Schedule 2 ↩

5. Quality protocols: converting waste into non-waste products ↩

6. Waste exemption: NWFD 2 temporary storage at the place of production ↩

7. Disposing of trees and plants affected by disease or pests: RPS 71 ↩

8. Treatment and disposal of invasive non-native plants: RPS 178 ↩

9. Standard rules: environmental permitting ↩

10. Apply for a standard rules permit for waste operations ↩