LexisPSL Environment News Podcast – April 2019

<p>In this April podcast of 2019, Mark Davies and Christopher Badger of 6 Pump Court consider and discuss:</p><p data-level="1" data-list="1">- &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; further developments in the creation of the new Office for Environmental Protection</p><p data-level="1" data-list="1">- &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; the European Commission’s latest publication on pharmaceuticals in the environment, and</p><p data-level="1" data-list="1">-&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; the alleged lack of content in Philip Hammond’s 2019 Spring Statement</p><p data-level="1" data-list="1">&nbsp;To listen to the podcast click<a href="https://blogs.lexisnexis.co.uk/docs/default-source/purpose-built-documents/2019_04_02_newscast.mp3?sfvrsn=279f5e14_2&amp;download=true" data-sf-ec-immutable=""> here &nbsp;&nbsp;</a><b></b></p><h4><b>The continued development of the Environment Bill and the Office for Environmental Protection &ndash; listen from 0.30 mins</b></h4><p>Not to be confused with last month’s review of funding and form of the OEP, Mark and Chris proceed to look this time at the review by the Environmental Audit Comittee of the draft Environmental Principles and Governance Bill and in particular the development of the OEP.&nbsp; As the Welsh Government join the Scottish government in announcing a consultation on how to address potential governance gaps when the UK leaves the EU, Mark asks whether devolved government will agree to the proposals for the OEP to have regulatory oversight over their environmental arrangements? And could the OEP really be based in Aberdeen as has been suggested?</p><h4><b>European Commission Report on pharmaceuticals in the environment &ndash; listen from 4 mins</b></h4><p>Next Mark and Chris turn to the emerging problem of pollution caused by pharmaceuticals, looking in particular at risks to the environment and at the problem of antimicrobial resistance in animals and humans.&nbsp; The problem of potential impact on the reproductive capabilites of animals and humans cannot be ignored and Mark and Chris argue that the issue justifies a precautionary approach consistent with proposals to introduce a relevant parameter into the Drinking Water Directive.&nbsp; Of particular concern are possible emissions from antimicrobial manufacturing plants in 3rd countries, which are contributing to the problem at a global level. &nbsp; &nbsp;<b></b></p><p>The Commission appears to favour a holistic approach to addressing the problem, involving pharmaceutical producers, medical professionals, the agricultural sector, governments and water treatment plants.</p><h4 data-level="1" data-list="1"><b>Is there anything of substance in PHilip Hammond’s Spring Statement? &ndash; listen from 7.55 mins</b></h4><p>In the final part of the podcast, Chris and Mark ask is there anything of real substance in the Spring Statement?&nbsp; It may be an exciting time to be an environment lawyer as the Environment Bill is being drafted, policy is being written on environmental principles, there are global initiatives on green finance and the issue of sustainable fashion is being raised - but to what extent are these things manifested as Economic Policy that will drive real long term environmental improvements?</p><p>For more information on these stories, see:</p><p>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lexis PSL News: <a href="https://www.lexisnexis.com/uk/lexispsl/ip/docfromresult/D-WA-A-VEV-VEV-MsSAYWZ-UUC-UZEYAAUUW-U-U-U-U-U-U-ACCDVAZACU-ACCVEEZECU-VBVWEZABW-U-U/1/281955" data-sf-ec-immutable="">European Commission adopts Communication outlining environmental risks in pharmaceuticals</a></p><p>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lexis PSL News: <a href="https://www.lexisnexis.com/uk/lexispsl/commercial/docfromresult/D-WA-A-BUY-BUY-MsSAYWD-UUV-UZEYAAUUW-U-U-U-U-U-U-ACCDVAZBEY-ACCVEEDAEY-VBCAYUCWY-U-U/1/281955" data-sf-ec-immutable="">Welsh Government announces consultation on gaps in environmental principles post-Brexit </a></p><p>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lexis PSL News: &nbsp;<a href="https://www.lexisnexis.com/uk/lexispsl/energy/docfromresult/D-WA-A-ABZW-AUE-MsSAYWC-UUC-UZEYAAUUW-U-U-U-U-U-U-ACCDVACDCV-ACCVEEZCCV-VBVWEAAYA-U-U/8/281955" data-sf-ec-immutable="">Spring Statement 2019: Government introduces climate change initiatives</a></p><p>-&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Lexis PSL News:&nbsp;<a href="https://www.lexisnexis.com/uk/lexispsl/localgovernment/docfromresult/D-WA-A-ABZW-AUE-MsSAYWC-UUC-UZEYAAUUW-U-U-U-U-U-U-ACCDVACDCV-ACCVEEZCCV-VBVWEAAYA-U-U/4/281955" data-sf-ec-immutable="">Spring Statement 2019: Government to set out approach to UK&rsquo;s urban strategy </a></p><p>&nbsp;</p><p>&nbsp;</p><p data-level="1" data-list="2">&nbsp;</p>
Source: LexisNexis Purpose Built
LexisPSL Environment News Podcast - April 2019

Energy weekly highlights – 5 April 2019

<p><img src="[images%7COpenAccessDataProvider]85600488-6d7d-4adb-81c9-33d7d15c1965" sf-size="7958632"></p><p><b>A round up of key developments in the energy sector covered by LexisPSL Energy. T</b><b style="font-size:inherit;background-color:initial;">his week&rsquo;s edition of Energy highlights includes analysis of the Offshore Wind Sector Deal (the Sector Deal), the split of the system operator (SO) and transmission owner (TO) roles previously held by National Grid Electricity Transmission plc (NGET) and an updated charging scheme for the EU Emissions Trading System (EU ETS).</b></p><h2><b>Electricity and gas market regulation and licensing</b></h2><h5><b>National Grid Electricity System Operator becomes separate entity within National Grid Group</b></h5><p>The National Grid has announced that as of 1 April 2019, the National Grid Electricity System Operator (NGESO) became a separate legal entity within the National Grid Group, separating the system operator (SO) and transmission owner (TO) roles previously held by National Grid Electricity Transmission plc (NGET). NGESO takes on the role of SO, while NGET will continue to act as TO. See: <a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/linkHandler.faces?ps=null&amp;bct=A&amp;homeCsi=412012&amp;A=0.968020832432324&amp;urlEnc=ISO-8859-1&amp;&amp;remotekey1=DIGEST-CITATION(LNB%20News%2003/04/2019%2016)&amp;remotekey2=All%20Subscribed%20Current%20Awareness%20Sources&amp;dpsi=0S4D&amp;cmd=f:exp&amp;service=QUERY&amp;origdpsi=0S4D">LNB News 03/04/2019 16</a>.</p><h5><b>SSE pays &pound;700,000 for missing gas smart meter roll-out target in 2018</b></h5><p>SEE Energy Services, SSE&rsquo;s domestic retail business, has agreed to pay &pound;700,000 to Ofgem&rsquo;s consumer redress fund&mdash;administered by the Energy Savings Trust&mdash;after missing gas smart meter roll-out targets in 2018. Suppliers are required by law to take all reasonable action to roll-out smart meters by the end of 2020. SSE met its electricity smart meter 2018 target but missed its gas target by two months. Ofgem will not be taking formal action against SSE due to the steps it has taken. See: <a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/linkHandler.faces?ps=null&amp;bct=A&amp;homeCsi=412012&amp;A=0.968020832432324&amp;urlEnc=ISO-8859-1&amp;&amp;remotekey1=DIGEST-CITATION(LNB%20News%2003/04/2019%2015)&amp;remotekey2=All%20Subscribed%20Current%20Awareness%20Sources&amp;dpsi=0S4D&amp;cmd=f:exp&amp;service=QUERY&amp;origdpsi=0S4D">LNB News 03/04/2019 15</a>.</p><div><h2><b>Renewable energy</b><b></b></h2></div><h6><b>Offshore Wind Sector Deal&mdash;building sustainability</b></h6><p>Energy analysis: Scott McCallum, partner at Shepherd and Wedderburn LLP, discusses the background to the government&rsquo;s recently announced Offshore Wind Sector Deal (the Sector Deal) and assesses the commitments it makes, what it means for the UK offshore sector, and its likely impact. See News Analysis: <a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/linkHandler.faces?ps=null&amp;bct=A&amp;homeCsi=412012&amp;A=0.968020832432324&amp;urlEnc=ISO-8859-1&amp;&amp;dpsi=0S4D&amp;remotekey1=DOC-ID&amp;remotekey2=0S4D_3218853&amp;service=DOC-ID&amp;origdpsi=0S4D">Offshore Wind Sector Deal&mdash;building sustainability</a>.</p><div><h2>Nuclear energy</h2><h5><b></b><b style="background-color:initial;font-size:inherit;">Nuclear Decommissioning Authority publishes 2019&ndash;2022 Business Plan</b></h5></div><p>The Nuclear Decommissioning Authority (NDA) has published its 2019 t</p>
Source: LexisNexis Purpose Built
Energy weekly highlights - 5 April 2019

Regulating purchase-enabled sustainability action in businesses—International Day of Forests 2019

<section><section><p><img src="[images%7COpenAccessDataProvider]dba48b30-49ee-4968-b93a-df006e3857ce" sf-size="3003695"></p><p><i>First published in LexisPSL. LexisPSL Environment includes a&nbsp;<a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/synopsis/158749:158750/Capacity-Market%2C-balancing-services-and-energy-system-flexibility/Smart-metering?wa_origin=paHomePage"></a><a href="https://www.lexisnexis.com/uk/lexispsl/environment/synopsis/92175:92191/Environmental-reporting%2C-management-and-responsible-business/Responsible-business%2C-human-rights-and-sustainability?wa_origin=paHomePage" data-sf-ec-immutable="">dedicated subtopic with practical guidance and legal news items on </a></i><a href="https://www.lexisnexis.com/uk/lexispsl/environment/synopsis/92175:92191/Environmental-reporting%2C-management-and-responsible-business/Responsible-business%2C-human-rights-and-sustainability?wa_origin=paHomePage" data-sf-ec-immutable=""><i>responsible business, human rights and sustainability.&nbsp;</i></a><i style="font-size:inherit;background-color:initial;">Click&nbsp;<a data-sf-ec-immutable="" href="http://www.lexisnexis.co.uk/products/lexis-psl-c.html?utm_source=Blog&amp;utm_medium=Energy_blog&amp;utm_campaign=101177%20-%20Energy%20blog">here</a>&nbsp;for a free trial of LexisPSL.</i></p><p>With climate change and environmental impact increasingly on businesses&rsquo; radars, there is a rising trend for purchase-enabled sustainability action business models, eg promising to plant a tree for each purchase. Tree-planting has been adopted by a growing number of companies intending to offset their carbon emissions. While this may be attractive to environment-conscious consumers, little is known about how to measure and verify the effectiveness of these models. In other words, how do we know trees are actually being planted, and what difference does this action realistically make? Jono Adams, sustainability consultant at Anthesis Group, comments on these purchase-enabled sustainability action models and the voluntary nature of regulation.</p><h2>Good intentions?<br></h2><p>Despite 80% of European companies considering climate change as a business risk, most have no targets for reducing their greenhouse gas emissions and 53% have no climate goals, according to the&nbsp;<a data-sf-ec-immutable="" href="https://www.cdp.net/en/research/global-reports/europe-report-2018" target="_blank" title="Opens in a new window">Carbon Disclosure Project report 2018</a>. It appears that, despite growing concerns about climate change, many businesses are slow to accept their environmental responsibility.</p><p>Adams says the move towards purchase-enabled sustainability regimes, such as tree-planting, sometimes starts with businesses&rsquo; intention to reduce their environmental impact as much as possible but equally, it may simply be motivated by encouraging more sales of their product by appearing to be a more responsible organisation.</p><p>For the businesses that are considering their environmental responsibility&mdash;from those who want to reduce their carbon footprint to those who want to make an &lsquo;overall positive environmental and/or social impact&rsquo;&mdash;a range of options are available, such as:</p><ul><li>developing a strategy that is in line with the ambitions set as part of the Paris Agreement to keep global temperature increase below 2⁰C&mdash;Adams suggests a science-based carbon target</li><li><a data-sf-ec-immutable="" href="https://bcorporation.net/" target="_blank" title="opens in a data-sf-ec-immutable="" href="https://bcorporation.net/" target="_blank" title=""></a data-sf-ec-immutable="" href="https://bcorporation.net/" target="_blank" title="opens in a ></li></ul></section></section>
Source: LexisNexis Purpose Built
Regulating purchase-enabled sustainability action in businesses—International Day of Forests 2019

Court of Appeal considers meaning of practical completion

<img src="[images%7COpenAccessDataProvider%7Ctmb%3Acarouselth]34fa62cf-8874-42fb-8718-81b3d1e284c3" sf-size="100"><p>&nbsp;</p><p>In <i>Mears v Costplan&nbsp;</i><a data-sf-ec-immutable="" href="http://www.lexisnexis.com/uk/legal/docview/getDocForCuiReq?lni=8V52-RK02-D6MY-P2FT&amp;csi=279841&amp;oc=00240&amp;perma=true&amp;elb=t" target="_blank">[2019] EWCA Civ 502</a>, the Court
of Appeal has provided a useful summary of the law on the meaning of practical completion.</p><p>The ruling is an important one for construction lawyers&mdash;’practical completion’ is a term widely used, but often not defined, in construction contracts.</p><p>Following a review of various authorities on the meaning of practical completion, the court summarised the law as follows:</p><ul><li>practical completion is easier to recognise than define. There are no hard and fast rules</li><li>the existence of latent defects cannot prevent practical completion. In many ways this is self-evident&mdash;if the defect is latent, nobody knows about it and it cannot therefore prevent the certifier from concluding that practical completion has
been achieved</li><li>in relation to patent defects, there is no difference between an item of work that has yet to be completed (ie an outstanding item) and an item of defective work which needs to be remedied. Snagging lists usually identify both without distinction</li><li>practical completion is a state of af</li></ul>
Source: LexisNexis Purpose Built
Court of Appeal considers meaning of practical completion

Energy weekly highlights – 29 March 2019

<p><img src="[images%7COpenAccessDataProvider]0f333b7c-ec57-43c2-81c7-17683d7affae" sf-size="897615"><br></p><p>A round up of key developments in the energy sector covered by Lexis&reg;PSL Energy this week.&nbsp;</p><p>&nbsp;</p><h2>Capacity Market and balancing services</h2><p>&nbsp;</p><h5>What does the future look like for the Capacity Market in the UK?</h5><p><a href="[f669d9a7-009d-4d83-ddaa-000000000002]9A5FC7F8-A1E5-4F91-B6F0-0C9AA0F37226">Energy analysis</a>: Anna Sweeney, senior knowledge lawyer in the infrastructure, projects and energy team at Addleshaw Goddard, outlines the government&rsquo;s latest consultations on the capacity market (CM) and explains what&rsquo;s coming next. </p><div><br></div><h5>Invitation for comment on UK capacity market published in the Official Journal</h5><p>The European Commission has reached the <a data-sf-ec-immutable="" href="http://eur-lex.europa.eu/legal-content/EN/TXT/?toc=OJ:C:2019:109:TOC&amp;uri=uriserv:OJ.C_.2019.109.01.0003.01.ENG">preliminary conclusion</a> that the UK Capacity Market contributes to an objective of common interest and is necessary. The Commission has invited parties in the UK to submit their comments and to provide all information that may help assess the measure. The letter inviting comments was published in the Official Journal on 22 March 2019. </p><div><br></div><h5>Government publishes Capacity Market (Amendment) (No 2) Rules 2019</h5><p>The Department for Business, Energy &amp; Industrial Strategy has published the <a data-sf-ec-immutable="" href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/786989/capacity-market-amendment-no2-rules-2019.pdf">Capacity Market (Amendment) (No 2) Rules 2019</a>. The rules come into force on the same day that the Electricity Capacity (No 1) Regulations 2019 come into force. The rules amend Rule 1.2, 1.3 in Chapter 1 (General Provisions) and make amendments to Chapter 16 (Modifications in respect of Capacity Agreements existing on 15 November 2018 and in respect of the T-1 Auction for the Delivery Year commencing on 1 October 2019). The rules enable the T-1 2019 auction to operate during the scheme&rsquo;s &lsquo;standstill&rsquo; period, pending the outcome of the European Commission&rsquo;s in-depth investigation of the UK&rsquo;s Capacity Market. </p><div><br></div><h5>Government updates guidance notes on its Storage and Scale competition</h5><p>The Department for Business, Energy &amp; Industrial Strategy has updated its guidance notes and application form for its <a data-sf-ec-immutable="" href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/789238/Storage_at_Scale-Competition_Guidance_Notes_March_2019.pdf">Storage and Scale competition</a>. The competition is seeking innovative and replicable solutions in order to offer a market competitive alternative to conventional commercial large-scale energy technologies. Up to &pound;20m in funding will be available from 2019-21 to fund up to three demonstration projects. The deadline for operational testing is December 2021.</p><p>&nbsp;</p><h2>Renewable energy</h2><p>&nbsp;</p><h5>Ofgem publishes guidance for suppliers under the Renewables Obligation</h5><p>Ofgem has published <a data-sf-ec-immutable="" href="https://www.ofgem.gov.uk/publ data-sf-ec-immutable="" href=""></a data-sf-ec-immutable="" href="https://www.ofgem.gov.uk/publ></p>
Source: LexisNexis Purpose Built
Energy weekly highlights - 29 March 2019

What does the future look like for the Capacity Market?

<article data-sf-ec-immutable=""><section><p>Energy analysis: Anna Sweeney, senior knowledge lawyer in the infrastructure, projects and energy team at Addleshaw Goddard, outlines the government&rsquo;s latest consultations on the capacity market (CM) and explains what&rsquo;s coming next.</p></section></article><section><section><h2><mark id="CITEID_684927"></mark>What is the current status of the CM?</h2></section><section><p>The UK CM is currently in a standstill period following the ruling in&nbsp;<i>Tempus Energy and Tempus Energy Technology v Commission</i>, Case&nbsp;<a data-sf-ec-immutable="" href="https://www.lexisnexis.com/uk/lexispsl/energy/document/412012/8V4T-XNB2-8T41-D4G7-00000-00/linkHandler.faces?psldocinfo=What_does_the_future_look_like_for_the_capacity_market_in_the_UK_&amp;linkInfo=F%23GB%23T%23sel1%252014%25year%252014%25page%25793%25&amp;A=0.48286984056174576&amp;bct=A&amp;ps=null&amp;risb=&amp;service=citation&amp;langcountry=GB" target="_parent">T-793/14</a>&nbsp;by the General Court of the EU that annulled the European Commission&rsquo;s 2014 decision that the CM scheme was compatible with state aid rules. This means that the European Commission now has to carry out an in-depth investigation to assess whether the CM scheme is compatible with the state aid rules (the European Commission has also appealed against the court&rsquo;s ruling). The investigation began on 21 February 2019 and could take up to 18 months.</p><p>On 22 March 2019, the European Commission&nbsp;<a data-sf-ec-immutable="" href="http://bit.ly/2UbHmth" target="_blank" title="Opens in a new window">announced</a>&nbsp;that it had preliminarily concluded that the UK CM contributes to an &lsquo;objective of common interest&rsquo; and is necessary. The European Commission has invited parties in the UK to submit their comments and to provide all information that may help assess the measure as part of its investigation. Comments are required to be submitted by 22 April 2019.</p><p>BEIS has welcomed the European Commission&rsquo;s preliminary conclusion that &lsquo;the UK CM contributes to an objective of common interest and is necessary&rsquo; and is confident that the investigation will determine that the CM is fully compliant with state aid rules upon a full review of the evidence. However, the European Commission wants to know from demand side response (DSR) providers whether they think that the CM is disadvantaging them compared to generators, since DSR providers can only bid for shorter capacity contracts. It also seeks views on whether the CM should be open to direct foreign generator participation, not just through interconnectors bidding for capacity.</p><p>Until the CM regains state aid approval (and there is no guarantee that </p></section></section>
Source: LexisNexis Purpose Built
What does the future look like for the Capacity Market?