Scotland

If your business operates in Scotland and its activities affect surface water or groundwater, you need authorisation from the Scottish Environment Protection Agency (SEPA) under the Water Environment (Controlled Activities) (Scotland) Regulations 2011 — usually called "CAR". CAR is an integrated regime: one application process covers abstraction, impoundment, engineering in or near a water body, and discharges to water or groundwater.

Carrying out a controlled activity without authorisation is a criminal offence carrying up to five years' imprisonment on indictment plus an unlimited fine. SEPA also has civil sanctions (Fixed and Variable Monetary Penalties) under the Regulatory Reform (Scotland) Act 2014.

The four authorisation tiers

CAR uses a risk-based four-tier system. The tier that applies to your activity depends on SEPA's assessment of its environmental risk — not on your choice. Work out which tier applies before you design the activity, because higher tiers need more evidence and longer lead times.

Tier 1 — General Binding Rules (GBR)

Low-risk activities are authorised automatically provided you follow the relevant General Binding Rule. You do not apply; you remain legally bound. Examples include GBR 15 (general farming activities affecting the water environment), GBR 24 (construction site runoff), and GBRs for small abstractions below specified volumes.

Tier 2 — Registration

Moderate-risk activities need a one-off Registration with SEPA. You submit a short notification, pay a registration fee, and SEPA confirms the registration if the activity meets the criteria.

Tier 3 — Simple Licence

Higher-risk activities that fit within standard conditions need a Simple Licence. You submit a full application; SEPA grants the licence with tailored conditions. Application fee plus annual subsistence charge.

Tier 4 — Complex Licence

The highest-risk activities — major abstractions, impoundments, large discharges, significant engineering — need a Complex Licence. Expect to provide a full environmental assessment, modelling of impacts, and a monitoring plan. Determination takes four months (statutory), often extended for major projects.

How SEPA applies the Water Framework Directive

CAR authorisations are the primary vehicle by which SEPA delivers WFD objectives in Scotland. Every authorisation decision applies the no-deterioration test and the environmental objectives set in the river basin management plan for your catchment. SEPA will check the current ecological and chemical classification of the affected water body on the Water Environment Hub before setting conditions.

For discharges, Priority Substance Environmental Quality Standards (set in the EQSD as retained and the Priority Substances Directive) drive emission limit values. For abstractions, catchment water availability and hands-off-flow thresholds apply.

  1. 1. Identify which tier applies to your activity

    Use SEPA's published tier guidance and the CAR Practical Guide to find the tier for your proposed activity. Complex projects often trigger multiple tiers — for example, a hydropower scheme typically needs a Simple or Complex Licence for the impoundment, plus a licence for the abstraction, plus GBR or Registration for construction runoff.

  2. 2. Request pre-application advice

    SEPA offers a pre-application service. For Simple and Complex Licences this is strongly recommended — it will tell you what WFD constraints apply to the water body, whether your design needs modification, and what evidence you will need to submit. The service is chargeable for complex applications but usually saves time and money.

  3. 3. Gather evidence of WFD compliance

    Before submitting a Simple or Complex Licence application, collect the current classification of the affected water body, any hands-off-flow data from SEPA, Priority Substance screening for discharges, and a mitigation plan if the activity could affect ecology (fish passage, sediment, morphology).

  4. 4. Apply via the SEPA Portal

    All CAR applications (Registration, Simple Licence, Complex Licence) are submitted through the SEPA Portal. Upload supporting evidence, pay the application fee, and SEPA will confirm receipt. GBR activities do not require an application but you must be able to evidence compliance on request.

  5. 5. Respond to consultation and determination

    Simple and Complex Licence applications are publicly consulted for 28 days. SEPA may request further information or propose conditions — respond promptly to avoid determination delays. Statutory determination is 4 months from receipt of a duly made application.

  6. 6. Operate in line with authorisation conditions

    Once authorised, you must comply with all conditions (limits on volume or concentration, monitoring, reporting, and any specific mitigation). Submit compliance data on the schedule set in the authorisation. Breaches can trigger Fixed or Variable Monetary Penalties or prosecution.

  7. 7. Vary, transfer, or surrender

    If your activity changes, apply to SEPA to vary the authorisation. Authorisations transfer with the activity on change of operator, but you must notify SEPA. If you cease the activity, apply to surrender to stop subsistence charges.

Fees and timescales at a glance

GBR None Immediate (no application needed)
Registration Low (fixed) Typically within 3 months
Simple Licence Moderate 4 months statutory
Complex Licence High 4 months statutory; often extended for major projects

Enforcement and civil sanctions

SEPA has a graduated enforcement toolkit:

  • Compliance and warning letters for minor, fixable breaches.
  • Fixed Monetary Penalties (FMP) — set amounts (for example £1,000) for specified minor offences under the Regulatory Reform (Scotland) Act 2014.
  • Variable Monetary Penalties (VMP) — scaled to the harm and culpability; no statutory cap.
  • Enforcement undertakings — voluntary offers of restoration and improvement accepted as an alternative to prosecution.
  • Prosecution — Regulation 44 CAR offences carry up to 12 months' imprisonment on summary conviction and up to 5 years on indictment, plus unlimited fines.