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ENVIRONMENTAL SCIENCE FOR THE EUROPEAN REFINING INDUSTRY Petroleum Products in the REACH Regulation Klaas den Haan, Stewardship Conference, SCL 1 June 2015

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ENVIRONMENTAL SCIENCE FOR THE EUROPEAN REFINING INDUSTRY

Petroleum Productsin the

REACH RegulationKlaas den Haan,

Stewardship Conference, SCL 1 June 2015

Stewardship-2015Klaas den Haan

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Reproduction permitted with due acknowledgement

Disclaimers

Considerable efforts have been made to assure the accuracy and reliability of the information contained in this presentation.

However, neither Concawe nor any Company participating in Concawe can accept liability for any loss, damage or injury whatsoever resulting from the use of this information.

The presentation is provided by Concawe and does not necessarily represent the views of any Company participating in Concawe.

Reproduction permitted with due acknowledgements

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Reproduction permitted with due acknowledgement

What will be presented today

Introduction to CONCAWE

The European Regulatory setting

The Petroleum Product Stewardship delivered by Concawe

Product Stewardship and Supply Chains

CLP activities

REACH Activities

Future developments and Concawe activities

Conclusions

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Reproduction permitted with due acknowledgement

CONservation of Clean Air and Water in Europe

Established as a European association for research on health, safety, and environmental (HSE) issues of importance to the European oil refining industry in 1963

Founders: Shell, Esso, Mobil Oil, BP, Caltex & Gulf Eastern.

Objectives:

Acquire adequate scientific, economic, technical, and legal information on HSE issues

Improve the understanding on these issues by the industry, authorities, and consumers

Operating principles:

Sound science

Cost-effectiveness of options

Transparency of results

Our research reports are available at www.concawe.org

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Reproduction permitted with due acknowledgement

42 members, representing ~100% of the European refining capacity

Concawe (EPRA) Membership

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Reproduction permitted with due acknowledgement

Evolution of CONCAWE’s Research Activities

1963 1973 1983 1993 2003 2013

Air Quality

Water Quality

Safety

Noise

Oil Pipelines

Refining Technology

Health

Fuels & Emissions

Product Classification & Labeling

Product Stewardship

Existing Subst. REACH

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Reproduction permitted with due acknowledgement

EU 3-Tier Environmental Protection Legislation

1. Directives defining Environmental Quality Standards 1. Ambient Air Quality (2008/50/EC)

2. Water and Ground Water Standards (2000/60/EC, 2006/105/EC, 2013/39/EU)

Include soil & ground water through the daughter Directive (2006/118/EC)

3. The EU thematic Soil Strategy (COM(2006) 231)

2. Emissions1. European Pollutant Release and Transfer Regulation (EC 166/2006)

2. Urban Waste Water Treatment Directive (5/91271/EEC)

3. Industrial Emissions Directive (IED, 2010)

Since 1996 and already amended 3 times, last update IED (2010/75/EU)

Includes Air & Water targets and obligations to reduce & Soil base line requirements

3. Substances allowed on the EU-Market1. Fuel Quality Directive (98/10/EC, 1993/32/EC & 2009/30/EC)

2. REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals, EC 1907/2006)

3. Classification, Labelling & Packaging (EC 1272/2008)

4. Transport of Dangerous Goods (Road, Rail & Inland Water ways (2008/68/EC))

5. Waste Framework Directive (2008/98/EC)

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Reproduction permitted with due acknowledgement

Soil, Water and Waste Legislative Environment

GroundwaterProtection Directive

ThematicSoil

Strategy

WasteFramework

Directive

REACH Substances

DirectiveEnvironmental

Liability Directive

IED Industrial Emission

Directive

E-PRTRPollutants Release

and Transfer Register

WasteIncineration

Directive

Sewage SludgeApplicationDirective

Chemical analysisand monitoring of

water status Directive

EnvironmentalQuality Standards

Directive

HabitatDirective

BirdsDirective

Council Decision on

Biodiversity

Marine Strategy Framework

Directive

Water Framework

Directive

U-WWTD Urban Waste WaterTreatment Directive

Pollution by substances

Directive(2006/11EC)

Assessment ofFlood Risks

Directive

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Reproduction permitted with due acknowledgement

Concawe and Product Stewardship

Concawe Product Stewardship activities include all advice Concawe provides to its Members and third parties either for regulatory compliance or voluntary actions to ascertain that Petroleum Substances can be handled safely during their whole life-cycle, including the waste stage. Create the awareness that Petroleum Substances are intrinsically hazardous

and need to be handled accordingly.

This information is available for Members and other REACH registrants enabling compliance with legislation and Company practices regarding providing product information, handling advice and risk management measures to their first line customers. Neither Concawe nor its Members have any legal competence to enforce that

this information propagates further through the supply chain

Enforcement of this is a Competent Authority responsibility

Product Stewardship is not equal to “Extended Producer Responsibility” Product Stewardship passes on this responsibility to everyone involved in the

Supply chain and life-cycle of the product. This includes not only the prime manufacturers, but also importers, retailers, consumers, waste processers and recyclers.

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Refinery

Depots & terminals

Chemical plant Formulation plant XHouseholds

Formulation plant A

Distribution & formulation

Automotive fuels

Shipping fuels

Aviation fuels

Heating fuels

Professional use

Petroleum Substance supply chains in REACH

Petrochemical plant

Paints

Shoe polish Solvents

Detergents

Products

PS

Articles with

transformed PS

Articles

containing PS

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Reproduction permitted with due acknowledgement

Articles

containing PS

Refinery

Depots & terminals

Households

Distribution & formulation

Automotive fuels

Shipping fuels

Aviation fuels

Heating fuels

REACH PS* supply chains within boundaries for Concawe

PS

P

S

Includes clear PS* uses supported by a Concawe Member throughout

the whole supply chain:

Fuels, intermediates, base oils, extender oils, bitumen, etc.

May include uses and articles that contain PS*, as produced

Candles, DIY Bitumen roofing, Tyres, etc.

Requires that adequate information is provided by the down-

stream supply chain enable compliance with the REACH

assessment requirements (No data, no support!)

Formulator Producer

* PS = Petroleum Substance

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Reproduction permitted with due acknowledgement

REACH RegistrantProducer 1

Customer 2Producer 2

Customer 1Producer 1

Customer 5 Distributor 2

Customer 9Importer 2

Distributor 4

Customer 8Producer 5

Customer 7Importer 1Producer 4

Customer 6Distributor 3

End user 3Professional

End user 1Consumer

End user 4Consumer

Substance, products & information flow

End user 2Professional

Article 1

ECHA

Business

sector

Product flow

Substance &

information flow

Information flow

Substance flow

Legend

REACHRegistrant Customer 3

Distributor 1Customer 4Producer 3

Simplified hypothetical substance market & supply chains

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Reproduction permitted with due acknowledgement

CONCAWE and the implementation challenges

CLP

Maintain and update the physical-chemical & effects database and deduce the recommended Classification & Labelling advice per product category

Latest advice is found in CONCAWE report 10/14 (available at www.concawe.org)

REACH

Assisting its members in the registration of petroleum products

Keeping the registration dossiers up-to-date

Maintaining and improving the petroleum product category dossiers and the petroleum products covered by these

Streamlining the dossier content to the demands of the European Chemicals Agency (ECHA)

Extending the physical-chemical, effects (HH & Env.) and product use database

Fine-tuning of the petroleum product risk assessments

Advocating the CONCAWE’s pragmatic approach to REACH

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Reproduction permitted with due acknowledgement

REACH elements and possible outcomes

* Fuel use of petroleum products is exempt from authorisation

Exposure

Assessment

Risk

Characterisation

Substance

can be used

without

restrictions

Emissions

Substance

authorised* or

restricted for

certain uses

Insufficient data:

testing ?

Substance is

candidate for

phase-out

Properties

Effects

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Reproduction permitted with due acknowledgement

REACH Implementation Challenges

The refinery sector and the petroleum substances importers needed a consistent and efficient registration approach

REACH was new and the expectations of the Regulators and Industry appeared not to be aligned.

Concawe developed the technical and factual parts of all Petroleum Substance Registration Dossiers between 2008 and 2010

Concawe has used a category approach in line with its CLP activities

Petroleum Substance uses that indicate harm to human health and/or environment are never included, unless the associated risks can be managed (All traffic lights are green).

The advice how to manage these risks is passed on through the Safety Data Sheets (SDSs)

The SDSs are comprehensive documents that require specialist skill to be fully comprehended.

There are concerns on information propagation through the supply chain and whether the appropriate information is communicated.

REACH is a journey that only started with the substance registrations

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Reproduction permitted with due acknowledgement

REACH implementation challenges 2

Implementing REACH provided a means for expanding the factual database on Petroleum Substances that Concawe maintains on behalf of its Members that is still continuing The product stewardship advice on products hazards (C&L), exposures

and handling is now better backed by the new data obtained

Concawe continues to extend its understanding of the petroleum product portfolio placed on the market, leading to an ongoing rationalisation of the included substances and supported uses

Concawe is challenged by Regulators on petroleum substance and their impacts based upon “beliefs”

Petroleum Substances are not mixtures but UVCBs

The Regulators also have to demonstrate the facts and the associated assessments to be incorrect, using hard evidence

Concawe executes an extensive research programme strengthening its Petroleum Substance database to face these challenges

In 2015, Industry must demonstrate the understanding of their products and support Product Stewardship advice with sound, defendable data

The Concawe database enables this, but can always be improved

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Reproduction permitted with due acknowledgement

Expanding the knowledge base

Significant work programme under way on key aspects of Petroleum Substances under REACH to:

Improve Substance ID to further enhance the read-across support

Expand Hazard Information (execute testing proposals, once approved)

Complete the PBT assessments

Review the environmental risk assessments to address concerns raised by the Agency

Update the assessment models

Enhance the exposure assessments taking into account downstream user information, if provided

Adapt Classification & Labelling taking into account any new information

Include demonstrated Uses and associated exposures, where possible

Rationalise Petroleum Substances Volumes & Uses of these Remove uses that were demonstrated unrealistic

Advise to de-register Petroleum Substances that are no longer placed on the market

Distinguish between Petroleum Substances and hydrocarbon solvents

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Reproduction permitted with due acknowledgement

Analysis of Tonnages & Uses

Million tonnes*(registrations)

CMRs Classified (non-CMRs)

Not Classified TOTAL

Manufactured 384 (569) 394 (471) 39.9 (261) 818

Imported 90.2 (225) 95.3 (280) 7.28 (174) 193

Exported 35.8 ( 94) 13.5 ( 72) 1.57 ( 47) 50.9

Intermediate Use 223 (496) 85.4 (327) 10.9 (110) 320

“Marketed” 215 391 34.7 640

Fuel 210 (396) 381 (401) 1.48 ( 81) 593

Industrial 0.791 ( 26) 2.12 (154) 13.0 (281) 15.9

Professional 0.0400 ( 5) 1.94 (140) 18.9 (206) 20.8

Consumer + Articles 0 ( 0) 0.984 ( 80) 0.971 ( 96) 1.96

“Widespread” 0.0400 2.92 19.8 22.8

Sold to Distributors 4.19 ( 6) 4.20 ( 43) 0.381 ( 19) 8.77

Other Uses 0.0900 ( 1) 0.103 ( 1) 0.0362 ( 8) 0.229

“Non-allocated” 4.28 4.30 0.417 9.00

“Marketed” = (Manufactured + Imported) – (Exported + Intermediate Use)

“Widespread” = Non-fuel Professional + Non-fuel Consumer + Non-fuel Articles

“Non-allocated” = Sold to Distributors + Other Uses not declared

Focus

area

* Data as per 30 May 2015

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Reproduction permitted with due acknowledgement

Further foreseeable developments

Industry requires sufficient time to deliver the aforementioned work for Regulatory Authorities assessment of Petroleum Substances Industry prefers quality input & data to support all REACH deliverables

The original category approach is challenged, as REACH is a substance driven regulation

Strict evaluation of any Petroleum Substance, today may invoke testing demands that are not necessary

Substance of Very High Concern (SVHC) Roadmap timeline would best take these constraints into account in the interest of all parties

To date, Concawe has obtained many new data supporting the assessments originally included in their REACH Registration Dossiers Concawe has positively reacted to the challenges of the Regulators

Based upon the acquired new data, none of the traffic lights has changed

The uncertainties have been reduced, considerably

The working relationship between ECHA and Concawe is demonstrating that we listen to and learn from each other This is only possible when adequate openness and transparency is present and

when each others roles are mutually appreciated

Collaborative activities appear the better route to resolving issues

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Reproduction permitted with due acknowledgement

Conclusions

Concawe has build up a thorough understanding of the EU-refining sector and Petroleum Substances to:

Provide detailed Product Stewardship advice to its members and other involved third parties

Provide consistent Classification & Labelling Advice compliant with EU legislation and the UN-GHS principles

Assist any registrant of Petroleum Substances to comply with the REACH requirements, today and in the future

REACH appeared to be an opportunity for enhancing the knowledge base on petroleum substances that, to date, has not led to unidentified Product Stewardship issues

It also provided insight on the Regulatory requirements of today

The new data acquired, since REACH came into force, strengthens the product stewardship advice provided in the past

The new data has provided enhanced learning on Petroleum Substances

The new data underpins the past advice provided and the associated risk assessments led to minor Risk Management Measures updates

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Reproduction permitted with due acknowledgement

Thank you for your attention

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Back-up slides

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Reproduction permitted with due acknowledgement

Environmental legislation in the EU

There is ample legislation in the EU and its Member States that isdirected to the protection of the environment and human health andin doing this create the good quality environments required toachieve this.

The purpose of having a good quality environment is to preserve asustainable and diverse ecosystem that can provide the naturalresources and ecosystem services required to maintain and improvetoday’s and tomorrow’s living standards.

The EU refining sector fully acknowledges this.

However, we believe that industry will be best placed to assistdelivering these objectives when:

These take into account the available state-of-the-art science, includingfactual industry data;

These are pursued in an socio-economical viable manner and

Industry proposed alternatives are subject to a sound assessment oftheir socio-economic merits, human health and environmental impacts.

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0

5

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15

20

25

30

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1969 1974 1978 1981 1984 1987 1990 1993 1997 2000 2005 2008 2010 2012 2014 2016 2018 2020 2022

Water Pollution control directive 1976

IPPC-1996IPPC-2008

IED-2010

Reported Oil discharged (kt/a)

Oil discharged per reported throughput (g/t)

Projected Oil discharged (kt/a)

Projected Oil discharged per reported throughput (g/t)

Legislative landmarks

40 years of Refinery discharges data & what’s next?

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2008 2012 2016 2020

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Refinery

Chemical plant Formulation plant XHouseholds

Formulation plant A

Professional use

Supply chains outside the boundaries for Concawe

Petrochemical plant

Paints

Shoe polish Solvents

Detergents

Products

Articles with

transformed PS

Control the controllable!

Once a PS* is transformed into a different substance, it is no longer

a PS and is therefore not covered by a Concawe dossier:

Even when the transformation is performed by a Concawe MC

e.g. Hydrocarbon solvents, monomers, aromatics, etc.

* PS = Petroleum Substance