Inspections

Risk based regulation of processes

In April 2003, all processes regulated by Local Authorities under the Local Air Pollution Prevention and Control regime were assessed to determine the relative level of risk associated with their processes. The method assigns a level of proposed "regulatory effort" to individual processes (high, medium or low) according to their relative risks. The method relates to how often individual processes require "auditing" by the Local Authority according to their risk score.

Risk assessment using this method is based upon both the nature of the process and the way in which it is managed and is divided into two parts:-

1. Environmental Impact Appraisal (EIA) - This is the potential environmental impact of a process according to its type, level of upgrading to meet regulatory requirements, and its location.
   
   
2. Operator Performance Appraisal (OPA) - This relates to how well the operator manages the potential environmental impact of the process.

Each of these aspects is evaluated by scoring the process against a number of different components. These components are listed in the Risk Rating Methodology together with guidance on how they should be applied and their implications for regulatory planning. Where a component is not relevant, a score of zero should be awarded. An example score sheet is provided to record the scores for each process.

Under the LAPC and LAPPC regimes, small waste oil burners (PG1/1) and unloading of petrol at service stations (PG1/14) are recognised to require significantly less regulatory effort than other processes. This is due to the relative simplicity of these processes and as specimen applications and authorisations are provided for Local Authorities. DEFRA already categorises these processes in a lower charging band and also expects that the frequency of inspection should be less than for other processes. Therefore, the method should not be applied to these two process types.

Use of the Risk Assessment Method

Set out below is the proposed approach that Local Authorities should take in applying the risk assessment method and utilising the results in determining regulatory effort.

Step 1 - Desk-based scoring of processes
All of the Part B Processes under an authority's control should be scored using the risk assessment method, based on information held on file, together with officers' knowledge of the processes concerned. The output will be a series of scores for different attributes and allocation of the process to a risk category, which is linked to the regulatory effort required by the process.

Step 2 - Use the score sheets during the visits to selected processes
Where scheduled visits to processes are undertaken, the scoring should be used as a basis for discussion with operators. Where possible, a copy of the methodology and draft completed score sheet should be provided to the operator prior to the visit. The completed score sheet should be shown to the operator and the scores discussed with them, together with any action that could be taken to reduce their scores and risk category. It is envisaged that this should not add significantly to the length of the visit but should provide a focus for discussion.

Step 3 - Use the scoring to determine regulatory effort
Section A1.4 in the methodology provides guidance on how the results of the risk assessment method should normally be used in determining the level of resources to be devoted to the subsistence activities of processes.

Step 4 - Review scores on a regular basis
Scores for each process should be reviewed on a regular basis, and at least annually. In particular, scores should be reviewed following visits, any changes to the authorisation, receipt of complaints or when enforcement action is taken.

A separate assessment should be carried out for every process/activity which attracts a separate subsistence charge.