Laws of the People's Republic of China

Reply of the State Environmental Protection Administration on the Related Issues concerning Imposing Effluent Fees of WasteWater

Huan Han [2006] No.256

The Environmental Protection Bureau of Hubei Province:

Your Request for Instructions on the Relevant Issues concerning Imposing Effluent Fees of Wastewater (E Huan Bao Wen [2006] No.69) has been received. Upon study, it is replied as follows:

Paragraph 3 of Article 19 of the Law concerning the Prevention and Treatment of Water Pollution prescribes that: "Facilities for centralized treatment of urban waste water shall, in accordance with the provisions of the State, provide paid services of wastewater treatment to the pollutant-discharging entities and impose the fees for wastewater treatment to ensure the normal operation of the aforesaid facilities."

The Circular of the former State Development Planning Commission, the Ministry of Construction and the State Environmental Protection Administration on Printing and Distributing the Opinions concerning Propelling the Industrialization Development of Urban Wastewater and Garbage Treatment (Ji Tou Zi [2002] No.1591) clearly prescribes that: "The fees imposed for the treatment of urban wastewater and garbage shall be specially used for the operation, maintenance and project construction of the facilities for the centralized treatment of urban wastewater and garbage. The fees for treatment of urban wastewater and garbage imposed by a city that has not set up the facilities for centralized treatment of urban wastewater and garbage yet can be used for the investment in the initial work of the project for treatment of urban wastewater and garbage and the relevant supporting projects, however, the facilities for the centralized treatment of urban wastewater and garbage shall be set up within three years and be placed in operation."

Article 2 of the Regulation on the Administration of Collection and Use of Effluent Fees (Order No.369 of the State Council) provides that: "The units and individual industrial and commercial households directly discharging pollutants to the environment shall pay effluent fees in accordance with the present Regulation". The Reply of on the Request for Instructions about the Relevant Issues concerning Imposing Fees for Excessive Discharge of Pollutants (No.141[2005] of the Legal Affairs Office of the State Council) clearly prescribes that: "If a pollutant-discharging entity discharges wastewater to the urban drainpipe network and if the wastewater enters into the urban wastewater treatment plant, it shall pay fees for wastewater treatment; if the wastewater does not enter into the urban wastewater treatment plant, it shall pay fees for discharge of pollutant or excessive discharge of pollutant."

In accordance with the aforesaid provisions, if a city that has started imposing effluent fees fails to build up a wastewater treatment plant within 3 years and does not provide paid any services of wastewater treatment for the pollutant-discharging entities that have paid effluent fees for wastewater treatment, the local environmental protection department shall impose effluent fees for discharge of wastewater or for excessive discharge of wastewater fee in accordance with the standards prescribed by the State from the entities that directly discharge wastewater to the environment.

State Environmental Protection Administration

June 27, 2006