MMO SUDG Industry Workshop: March 29-302017 Newcastle

Note from the Co-Chairs: Peter Barham (SUDG); Shaun Nicholson (MMO)

Background

The aim of the workshop was to provide a forum for an open and transparent discussion for the identification of the key regulatory issues facing various marine industries, share best practice and an opportunity to encourage knowledge transfer to improve the efficiency of the licensing process and reduce regulatory uncertainty/burden. The Industry Day provides a consistent and users perspective overview of the key strategic issues and regulatory challenges.

There is general agreement that better relationships and understanding between regulators and industry will lead to better and more cost effective licensing. An initial workshop was held in March 2016 and this is a note of the second workshop which took place in March 2017.

Key points from the presentations

Speakers from industry were asked to give key overview about the importance of their sector and to update the workshop on developments over the last twelve months which are active and potentially significant to Blue Growth.

Presentations that were given by MMO staff or those from industry will be available on the SUDG website (

Rosie Kelly – Marine Policy Manager (The Crown Estate)

  • The Energy, Minerals and Infrastructure (EMI) team at TCE are responsible for leasing and licensing activities within the marine environment in England, Wales and Northern Ireland. The Planning team within EMI deal with marine planning, policy, consenting, data management and optimisation.
  • Scottish assets have now been devolved to the Scottish Government as of 1st April 2017. All Scottish assets are now managed by the Crown Estate Scotland which is a completely separate company to TCE.
  • TCE is currently running a marine aggregates tender process; new aggregates sites are likely to be awarded in summer 2017.
  • Wave and tidal stream leasing opportunities are available on an ad hoc basis for projects up to 3MW, and up to 30MW for tidal stream projects. Work is being undertaken on the approach to plan-level Habitats Regulations Assessment.

Carbon Capture Storage – Rosie Kelly (TCE) on behalf of Judith Shapiro at the Carbon Capture Storage Association

  • Since the Government cancelled the CCS competition in November 2015 there has been no progress on a new CCS strategy, but there is still appetite from industry.
  • A new strategy is required to maximise benefits and recognise synergies with the oil and gas industry.
  • There is ambition to develop regional CCS hubs and look for international collaboration, but this needs to be done quickly to enable CCS to fulfil its role in meeting climate change targets.
  • The MMO should consider CCS within the development of marine plans as CCS projects will hopefully be coming forwards within the lifetime of the plans.

Pete Jamieson – Chair ESCA (European Subsea cables Association)

  • Independent report from Huddersfield University values the UK cables sector at £64bn per annum.
  • The capacity for existing telecommunication cables is almost full and we could expect to reach capacity in the next 5 to 8 years, so we will need more telecom cables as well as interconnectors and export cables from offshore windfarms.
  • Cable laying is relatively benign and carried out after extensive route planning to avoid environmental damage and technical limitations.

There is a real need to relate objective information about the potential environmental impacts of marine activities to proportionate licensing based on risk assessment and management.

  1. ESCA is currently drafting good practice guidance in conjunction with regulators to provide a more consistent approach to cable assessments, planning and licensing.

Louise Bridges (Hanson) Marine Aggregates

  • Aggregate extraction is essential for infrastructure development especially in the South East.
  • The aggregate sector is working on strategic and more efficient mechanisms for data gathering to create better databases for decision making by both industry and the regulator. The growing information collected by the sector working with regulators gives a better overall basis for making decisions. In addition, the approach developed within the sector allows decisions to be made from a consistent baseline, which means a more consistent approach to scoping EIAs and greater value of the information from surveys.
  • The information collected has been done on the recommendations from Cefas based on their knowledge of benthic communities and allows potential changes to be assessed in a statistically valid way.
  • The industry trade body (BMAPA) has recently produced good practice guidance for extraction of aggregates from England’s seabed in conjunction with The Crown Estate and support from MMO and various advisors.
  • Investor confidence is essential and currently Hanson has sufficient confidence that it is investing £70m in two new ships and a new berth in London.

Nick Butler – Thames Tideway Tunnel (TTT)

  • TTT is a significant project for improving the environment by reducing the potential for storm water and sewage discharges into the Thames estuary.
  • TTT has found real benefits in ‘embedding’ MMO staff into the project team.
  • There is on site recognition of the importance of the work and the need to resolve any issues quickly and pragmatically but which remain within legal requirements and conditions.

Brian Clark (British Marine) Marinas

  • By and large the activities of BM members are small scale and applicants are often unfamiliar with the regulatory process.
  • BMF therefore welcomes visits by MMO staff to assist applicants.
  • Good feedback from BM members has been received and good working relationships with the MMO have been established.
  • BM would welcome greater collaboration and more opportunities to ‘break down barriers’ between regulators and applicants.
  • BM welcomes fast tracking licensing initiatives but equally appreciates the need to protect the marine environment; there is also a need for proportionate regulation.

Day 2

Martin Webb (PD Ports) Ports

  • Around 118,000 people are employed in the ports and related industries creating a total GVA of £7.7bn
  • The ports sector has experienced both good and bad times over recent decades.
  • The ports sector contributes to carbon emission reduction – shipping is preferable to other forms of transport - ‘loads off roads’ etc - and there is a growing trend to link with other companies to maximise green benefits through better logistics.
  • PD ports works closely with environmental bodies including the INCA (Industry Nature Conservation Association).
  • Timescales and costs of marine licence applications is a challenge but this is improving and there are opportunities for working close with MMO through embedding staff and staff exchanges.
  • There is a need for consistency as the ports industry is competitive but needs an equal playing field for regulatory aspects.
  • If there is friction between an applicant and MMO it is because something has already gone wrong.
  • PD Ports believe that ‘Start it right and keep it right’ – is better for all.
  • Liaison and good communications is key to good working.

Sophie Hartfield (DONG Energy) Offshore Renewables

  • The offshore renewable energy (wind) industry is still learning – the first offshore wind farm was only commissioned in the UK in 2000.
  • Offshore wind is increasingly sought as an investment opportunity by pension funds (and companies such as Lego).
  • The industry is keen to build the relationship with MMO, Defra and BEIS.
  • There is a need to see regulators properly resourced.
  • The industry is working towards co-existence with others but issues and conflicts can arise with certain sectors including fishing.
  • Offshore energy installations are big, expensive and require considerable planning; timing is essential and the application process is critical in helping making everything work.
  • There is currently about £10bn worth of investment in the offshore renewable energy sector representing ca. 22.5% of all UK construction costs.
  • Huge amount of work looking at potential environment impacts and ORJIP (offshore renewable joint industry programme) will be reporting on findings of various environmental projects in the coming months.

Stephen Roast (EDF) Nuclear Energy

  • Lots of lessons learnt from Hinkley Power Station applications; these need to be applied to other nuclear new builds (NNB).
  • There are good examples where science and information has been used to help design of features such as fish recovery and return systems.
  • EDF has worked closely and successfully with regulators through the development of Marine Technical Forum at Hinkley and Sizewell NNBs.

Conclusions

  • Industry and MMO need to work together because we all want the same things; a better environment and sustainable development.
  • We want regulation to be effective and not overly bureaucratic with the environment as the focus of licensing.
  • There is good evidence of MMO and industry working together and we need to develop examples of best practice that can be used more widely.
  • There is a real need for business as usual while Brexit negotiations are underway
  • There are opportunities for training for both industry staff and regulators, through for example, the MMO-Industry Interchange Programme.

During the workshop there were also a number of break out sessions for MMO staff and industry representatives to work together to identify issues and opportunities which would assist the licensing process while ensuring that all legal and environmental protections were still met. These are summarised below and create a number of opportunities for further work.

Summary of licensing feedback discussions from Industry-Regulator break out sessions

Communication and engagement

  • More, regular communication in person/on the phone instead of email, with suggestions of how to do this such as greater MMO involvement with existing fora around the coast
  • Engagement with industry, in particular Industry Interchange, was praised and more opportunities welcomed. Would like more site visits by the MMO.
  • Asked for more local licensing expertise, for example in coastal offices, so customers have a contact near to them
  • More guidance and clarity on MMO’s position on key issues would be welcomed, in a place of public reference e.g. on the website or as guidance webinars that could be circulate among relevant customer groups. Some stakeholders offered use of their websites if it was not appropriate for GOV.UK.
  • Some held the view that the MMO should not charge for dealing with pressure groups and correspondence/communications (e.g. Ministerial briefing) around cases at it was the MMO’s job to do this.
  • Similarly asked that the MMO deals with representations made during the consultation process where possible, rather than forwarding them on to applicants.
  • Justification should be provided if there is any change to fees and charges

Systems and processes

  • Regulation needs to be proportionate to risk
  • Issue was raised about emergency repair situations occurring at weekends and whether a self-service approach may be established for such reporting
  • Positive feedback about helpfulness of staff
  • Lack of resource/staff turnover noted as an issue. Applicants asked for case teams to be more consistent so deal with the same MMO officers more regularly
  • Some representatives present said their organisations would be prepared to pay extra for a more personalised service from the MMO and welcomed embedding MMO staff in the case of large projects
  • Some suggested improvements to MCMS – any further feedback on the system can be provided to the MMO at any time
  • Would like quick decisions, or if not a realistic indication if the process will take over 13 weeks so that commercial decisions can be informed accordingly
  • Applicants would like to have sight of/better understand the criteria used by the MMO when making a decision
  • Find explanation of licence conditions useful
  • If estimates are to be increased this should happen as early as possible
  • Not always clear what additional activities may require marine licences (e.g. ground investigations), developers are learning this from experience but more guidance/lessons learned might be helpful
  • Many were generally content with value for money and the amount charged, though suggested some changes e.g. paying for a more personalised service

Work with other regulators

  • Greater clarity and consistency (e.g. charging) across devolved administrations and crown dependencies requested (although some feedback that the MMO’s processes were better than others)
  • Better implementation of the Coastal Concordat
  • All regulators to promote other relevant consenting regimes (e.g. marine licence, listed building consent, SSSI consent, planning permission, Crown Estate lease etc)
  • Asked why the MMO redacts the names of primary advisers when forwarding information
  • Need to address at the project level if a Defra family approach is being taken (e.g. EA leading on
  • MMO could better consider the practical commercial impacts of the strong position of some SNCBs on the licence holders