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Defra, the Welsh Assembly Government (WAG) and the Environment Agency are reviewing which waste handling businesses can operate under exemptions, and which require a permit.

An exemption allows certain waste management activities to be carried out without an environmental permit (formerly known as a Waste Management Licence). Exemptions do not free an operator from regulatory control, but provide a proportionate level of regulation for low risk activities which do not pollute the environment or pose a risk to human health.

Joan Ruddock said:
"Environmental permits are an essential tool in protecting the environment from the impacts of waste, but the system must be fair, simple and proportionate to risk. The changes we are proposing in the consultation we have published today deliver all those things. Our estimate is that they will also offer real savings for some businesses by cutting red tape and making waste management more efficient, which could be as much as £45m over three years."

The review will be of interest to any business recycling, re-using or disposing of any kind of waste. Most businesses currently operating under an exemption will continue to do so but under the new proposals businesses may need to renew and re-register their exemptions more frequently to ensure waste registers are up to date. Some businesses that have previously operated under a waste exemption may now need to apply for a permit, while those with an Environmental Permit may be able to register an exemption. It is proposed that the cost to the Environment Agency of regulating the system will be met through a charge for the registration of all exempt waste operations.

Jane Davidson, the Welsh Assembly Government Minister for Environment, Sustainability and Housing, said:
"These proposed revised exemptions will complete the new environmental permitting regime and ensure that the level of regulation of waste activities match the risk they pose to the environment. This consultation is an opportunity for industry to help shape the new exemptions system."

Dr Paul Leinster, Acting Chief Executive of the Environment Agency, said:
"Most of the waste exemptions currently available have been in place since 1994 with little or no amendment. To keep pace with the changing world of waste management and the new techniques that have been developed, we need a revised suite of exemptions.

"We are seeking to encourage businesses to recover and recycle their waste by offering exemptions for truly low risk operations. Conversely, we are proposing tightening the regulations for those operations that pose a higher risk to the environment.

"We need to hear the views of businesses which might be affected before we make changes to the system. We would encourage all businesses handling waste to look at the website to find out if their waste activity might be affected, and to participate in the consultation."

The consultation is open for 12 weeks from 31 July and 23 October 2008.