NOTIFICATION
S.R.O. (1)/2001. - In exercise of the powers
referred by section 31 of the Pakistan Environmental Protection Act, 1997
(XXXIV of 1997), the Federal Government is
pleased to make the following Rules, namely: -
THE
POLLUTION CHARGE FOR INDUSTRY (CALCULATION AND
COLLECTION) RULES,
2001
1. Short title and commencement. - (1) These rules may be called the
Pollution Charge for Industry (Calculation and Collection) Rules, 2001.
(2) They shall
come into force from
the 1st July 2001.
2. Definitions. - (1) In these rules, unless
there is anything repugnant in the subject or context, -
(a)
“Act” means the Pakistan Environmental
Protection Act, 1997 (XXXIV of 1997);
(b)
“Board” means the Provincial Sustainable
Development Fund Board constituted under section 10 of the Act;
(c)
“Director-General” means the Director-General of
the Provincial Agency;
(d)
“Guidelines” means the “Guidelines for
determination of a Pollution Charge for Industry” as contained in Schedule I;
(e)
“industrial unit” means any legal entity
carrying on industrial
activity;
(f)
"Inspection Team" means the Inspection Team
constituted under
rule;
(g)
“pollution charge” means the pollution charge
payable under subsection (2) of section 11 of the Act;
(h)
“pollution level” means the number of pollution
units per unit of production, calculated in accordance with the procedure
contained in Guidelines
and Schedule IV;
(i)
“pollution unit” means the quantity of pollutant
which reflects its relative toxicity vis-a-vis other parameters, as specified in
the Guidelines and
Schedule IV; and
(j)
"Schedule" means the schedule to these rules;
(2) All other words and expressions used
but not defined shall have the same meanings as are assigned to them in the
Act.
1.
3. Determination
of pollution charge.- The pollution charge payable by an industrial unit
shall be determined in accordance with the Guidelines.
2.
4.
Responsibility for calculation, reporting and payment.- An industrial unit
liable to pay the pollution charge shall itself be responsible for ensuring the
correct calculation, reporting and payment of the pollution charge.
5. Determination of pollution level .-
(1) For the purposes of determining the pollution level of an industrial unit,
the Director-General shall constitute an Inspection Team comprising of -
(a)
a representative of the Provincial Agency;
(b)
a representative of the industrial unit;
(c)
not more than two representatives each drawn from the
list of any two authorized NGOs specified in Schedule II; and
(d)
a representative of a certified environmental
laboratory or any other agency approved and designated by the Provincial Agency
for the purposes of determination of the
pollution level.
(2) The
Inspection Team shall determine the pollution level of an industrial unit at least once a year in
respect of discharges of effluents and waste, and emissions of air pollutants.
(3) The
Inspection Team shall also determine the exemption allowed to an industrial
unit as required under Schedule IV.
(4) All
samples obtained by the Inspection Team shall be tested and analysed by a
certified environmental laboratory.
(5) The
pollution units per unit of production determined by the Inspection Team shall
form the basis for calculation of the pollution charge of an industrial unit
under rule 6.
6. Calculation and payment : - (1) The
pollution charge shall be calculated by multiplying the pollution level with
the actual production during the period for which the charge is to be paid, and
with the applicable rate per pollution unit for the year in accordance with the
rates and escalation table shown in Schedule III.
(2) The
pollution charge shall be payable biannually, based on the actual production in
the preceding six months.
(3) The
payment of the pollution charge shall be made by deposit, against proper
receipt in the Government Treasury or any branch of the National Bank of
Pakistan.
(4) The
industrial unit shall submit a copy of the receipt, along with details of calculation of
the pollution charge in the form as set out in Schedule IV, to the Provincial
Agency
7.
Re-determination of pollution level .- (1) If during the year an
industrial unit reduces, for at least three consecutive months, the pollution units
discharged by it to eighty
per cent or less of the level
of at least one parameter, it shall have the right to apply to the Provincial
Agency for re-determination of its pollution level.
(2) The
Director-General may at any time, on application from any person or suo motu
and after giving an
industrial unit an opportunity of being heard, have the pollution
level of the
industrial unit re-determined by the Inspection Team if he has reason to
believe that the actual pollution units being discharged by such industrial unit
in respect of any pollution parameter are twenty per cent or more than the level
determined by the Inspection Team at the time of last measurement.
(3) Re-determination
of the pollution charge under sub-rules (1) and (2) shall be allowed by the
Provincial Agency subject to payment of the prescribed fees by the applicant specified in
Schedule V.
8.
Costs
of determination of pollution level .- The industrial unit shall provide all
requisite assistance at the site for the visit of the Inspection Team and shall
bear all costs relating to determination of the pollution level, including the prescribed
fees specified in
Schedule V, and costs of sampling, testing and reporting of results:
Provided
that the costs of re-determination of the pollution level on an application
of any person under sub-rule (2) of rule 7 shall be deposited with the Provincial
Agency when such re-determination is allowed, and shall be refunded to the
applicant and charged from the industrial unit, only if the actual pollution
units being discharged by such unit in respect of any parameter are determined
by the Inspection Team to be twenty per cent or more than the level
determined at the time of last measurement.
9.
Collection
through industrial associations and Chambers of Commerce and Industry. - (1) Subject to rule 4,
where industrial units have formed an association to look after their
collective interests, such association may collect the pollution charge from
its member industrial units and deposit the same against proper receipt in the
Government Treasury or any branch of the National Bank of Pakistan.
(2)
The Chambers of Commerce and Industry at the Federal
and Provincial levels
shall use their good offices to ensure that all industrial units in their
respective jurisdictions pay the pollution charge in accordance with these rules.
(3)
All industrial associations and Chambers of Commerce
and Industry shall submit a monthly report to the Board indicating the total
amount of pollution charge collected by them during the previous month along with
copies of the receipts of payment.
SCHEDULE I
[See rule 2(1)(d)]
Guidelines for determination of pollution charge for Industry
Legal Basis
Section 11 of the Environmental Protection Act, 1997,
contains the following subsections that
provide a legal basis for application of pollution charge, namely:-
(2)
The Federal Government shall levy a pollution charge on
any person who contravenes or fails to comply with the provisions of subsection
(1), to be calculated at such rate, and collected in accordance with such
procedures as may be prescribed.
(3)
Any person who pays the pollution charge levied under
sub-section (2) shall not be charged with an offence with respect to that
contravention or failure.
(4)
The provisions of sub-section (3) shall not apply to
projects, which commenced industrial activity on or after the thirtieth day of
June 1994.
Primary Considerations
The proposed
system of pollution charge has been developed to achieve a balance among the
following, namely: -
1.
The need for an equitable, simple and workable approach
towards establishment of pollution charge.
2.
The need for real progress towards making the industry
environmentally friendly without jeopardizing the economic growth in the
country.
3.
The need of the industry to be allowed a period in
which it can prepare for compliance with the National Environmental Quality
Standards (NEQS).
Guideline
Basic principles discussed and agreed upon in different
meetings of the Environment Standards Committee (ESC) comprising
representatives of FPCCI, NGOs and the Government are summarized below:
1.
The level of pollution charge shall be established
through a process of negotiations.
2.
The level of pollution charge should initially be such
that the industry should feel the impact, but should not be excessive such that
the financial health of the concern is jeopardized.
3.
The system should be applied uniformly across all the
industrial sectors.
SCHEDULE II
[See rule 5(1)(c)]
List of authorized
NGOs
1.
Interrelation Union for Conservation of Nature and Natural
Resources
(IUCN)
House
No. 26, St. No. 87, G-6/3, Islamabad.
Phone
No. 051-2270686-87
Fax
No. 051-2270683
2.
Sustainable Development Policy Institute (SDPI) H. No.
3, UN Boulevard, Diplomatic Enclave, G/5,
Islamabad.
Phone
No.051-2278134
Fax
No.051-2278135
3.
World Wide Fund (WWF) PAKISTAN
Address:
P.O. Box 5180, Ferozepur Road, Lahore.
Phone
No. 042-5862360
Fax
No. 042-5862358
4.
SUNGI
Address:
H. No.17, St. 67, G-6/4 Islamabad.
Phone
No. 2273272 – 2276579-89
Fax
No. 2823559
5 PAIDAR
Address:
64-E, Moscco Plaza,
Office no 3,1st Floor,
Blue Area, Islamabad.
Phone:2820359, Fax:2820379
SCHEDULE III
[See rule 6(1)]
Pollution Charge
rates and escalation table
Schedule for payment of pollution charge:
Pollution charge shall be payable
on a biannual basis, calculated according to the established discharge rate per
unit of production, and the actual production of the unit in the preceding six
months.
Pollution Charge Escalation:
The following table gives the
Schedule for a period of three years beginning from the July 1st, 2001:
Pollution charge
Schedule
|
Period.
|
Annual escalation.
|
|
(1)
|
(2)
|
|
1st July, 2001
to 30th June, 2002.
|
20% of base rate.
|
|
1st July, 2002
to 30th June, 2003.
|
40% of base rate.
|
|
1st July, 2003
to 30th June, 2004.
|
60% of base rate.
|
SCHEDULE IV
[See rule 6(4)]
Details of calculation of Pollution
Charge
PART 1
A. Pollution Charge for Liquid
Effluents:
Parameters Applicable for Pollution Charge and Definition of Pollution
Unit:
Parameters on which pollution charges are to be applied and
the definitions of the pollution units for each parameter are shown in the
table below.
TABLE
List of selected NEQS parameters for pollution units
calculation
|
S/No.
|
Parameters.
|
1 Pollution Unit.
|
|
(1)
|
(2)
|
(3)
|
|
1
|
COD.
|
50 kgs
|
|
2.
|
TSS.
|
50 kgs
|
|
3.
|
Oil and grease
|
3 kgs
|
|
4.
|
Mercury.
|
20 g
|
|
5.
|
Chromium.
|
500 g
|
|
6.
|
Nickel.
|
500 g
|
|
7.
|
Lead.
|
500 g
|
|
8.
|
Copper.
|
1000 g
|
|
9.
|
Cadmium.
|
100 g
|
|
10.
|
Pesticides and herbicides.
|
100 g
|
The parameters for pollution units given above all arrived
at in view of the following considerations, namely: -
1.
To keep the system simple and cost effective, the
number of parameters should be kept at a minimum.
2.
The quantity of pollutant defined as one pollution unit
reflects the relative toxicity of the pollutant, and consequently the extent of
damage to the environment.
3.
The Federal Agency may expand the above list if deemed
necessary.
Exemption in Pollution Units:
Each industrial unit shall be allowed an exemption
equivalent to NEQS for each parameter on which the pollution charge is
applicable. The exemption is proposed in line with the spirit to the National
Environmental Quality Standards.
Method of Determination of Pollution Charge:
Determination of Pollution Level:
The pollution level in a unit or a production unit if so
desired, shall be measured once a year. The measurement shall be carried out
jointly in the presence of at least one representative each from the unit and
the concerned EPA or agency approved by EPA. Interested NGOs shall be allowed
to accompany EPAs on such visits to ensure transparency and neutrality in the
process. The production of the unit during the determination period shall also
be recorded to ensure that normal operational conditions of the unit prevail.
Alternatively, pollution charge may also be figured out on the basis of
self-monitoring reports submitted under NEQS (Self-Monitoring and Reporting by
Industry) Rules, 2001, in mutual agreement with the concerned EPA.
Calculation Procedure:
1.
The effluent flow of a unit shall be measured for a
limited period, ranging from a minimum of a day to about a week, under normal
operating conditions.
2.
During this period, effluent samples shall be taken at
regular intervals, ranging from once an hour to once in eight hours and the
concentration of pollutant parameters of concern shall be established through
laboratory analysis.
3.
Net quantity of pollutant being discharged (in kg)
shall be calculated by dividing the net quantity of pollutant being discharged
by the amount defined as one pollution unit for the parameter under
consideration.
4.
Number of pollution units for each parameter shall be
calculated by dividing the net quantity of pollutant being discharged by the
amount defined as one pollution unit for the parameter under consideration.
5.
The number of pollution units per unit of production
shall be calculated by dividing the number of pollution units with production
in the period during which tests were carried out.
6.
Number of pollution units shall be calculated on the
basis of production in the period for which pollution charges are to be paid.
7.
The amount to be paid as pollution charge shall be calculated
by multiplying the chargeable pollution units with the applicable rate for a
pollution unit for the year.
Sample calculation of pollution
charge are given below:
|
NEQS Parameters.
|
|
Recorded.
|
Effluent levels.
|
|
(1)
|
|
(2)
|
(3)
|
|
COD.
|
150 mg/l
|
5200
|
mg/1
|
|
TSS
|
150 mg/l
|
500
|
mg/1
|
Annual Operating Day. 160 Days. Product
Rate 6,000 Tons
Effluent
flow rate 5,300 m3/day or
848,000 m3/year Chargeable Calculation of Pollution Charge: |
Actual Pollution Level.
|
Annual Pollution Load.
|
Net Chargeable Units.
|
|||
|
(1)
|
(2)
|
(3)
|
|||
|
COD.
|
5,200 mg/1
|
4,282,400 kg
|
85,648
|
||
|
TSS.
|
500 mg/1
|
296,800 kg
|
5,936
|
||
|
|
|
Total.
|
91,584
|
||
|
Total Units Chargeable.
|
91,584 Units
|
|
|
||
|
Base Rate per Unit.
|
100 Rs./Unit (For example)
|
|
|||
|
Total Pollution Charge.
|
Year 1
|
Year 2
|
Year 3
|
|
|
|
Rs./Year
|
1,831,680
|
3,663,360
|
5,495,040
|
|
|
* Refer to Part I.
** Refer to Schedule III.
PART II
B. Pollution Charge for Gaseous Emissions:
Parameters to be charged and Definition of Pollution Unit:
Parameters on which pollution charge are to be applied and
the definitions of the pollution units for each parameter are given in the
table below:-
TABLE
Selected parameters for pollution units calculation
|
Parameter.
|
Quantity of one pollution unit.
|
|
(1)
|
(2)
|
|
Carbon Monoxide (CO).
|
400 Kg
|
|
Oxides of Nitrogen (NOx).
|
200 Kg
|
|
Oxides of Sulfur (SOx).
|
200 Kg
|
|
Particulate Matter (Coal).
|
250 Kg
|
|
Particulate Matter (Oil).
|
150 Kg
|
|
Particulate Matter
(Cement).
|
100 Kg
|
|
Particulate Matter (Other
Sources).
|
250 Kg
|
The definitions of pollution units given above were arrived
at in view of the following namely: -
1.
The system should be simple and cost effective, and the
numbers of parameters on which pollution charges are to be applied should be
kept at a minimum.
2.
The quantity defined as one pollution unit reflects the
relative environmental impact of a specific parameter on the assimilative
capacity of the surrounding air and impact on human health.
Exemption in Pollution Units :
Each industrial unit shall be allowed an
exemption corresponding to NEQS for each parameter on which the pollution
charge is applicable. The exemption proposed is in line with the exemption
proposed for liquid effluents.
Approach and Method for the Determination of Air Pollution Charge:
Determination of Pollution level:
The pollution level in a unit or a production unit if so desired,
shall be measured once a year. The measurement shall be carried out jointly in
the presence of at least one representative each from the unit and the EPA, or
an agency approved by EPA for this
purpose. Interested NGOs shall be allowed to accompany EPAs on such
visits to ensure transparency and neutrality in the process. All air emission
measurements shall be taken under normal plant operating conditions. The
industrial unit shall arrange for air emission measurement and shall bear the
cost of air emission measurement. The production of the industrial unit during
the determination period shall also be recorded to ensure that normal operating
conditions of the unit prevail at the time of testing. The pollution charge
could also be figured out on the basis of self-monitoring reports with mutual
agreement of EPA.
Calculation Procedure:
The following measurements are needed to calculate the
quantity in kg of each pollutant being emitted namely: -
1.
Flow rate of the gas in the stack or chimney in kg/hr
or cubic meter/hour
2.
Concentration of pollutant in the gas stream in
ppm.
Calculation of gas flow rates requires extensive
instrumentation, is time consuming and expensive. To address this issue, a
simplified fuel based approach is proposed for the quantification of pollutant
loads in gases discharged from fuel fired equipment such as boilers, kilns,
furnaces and dryers. This approach allows direct quantification of gas flow
rate using the amount of fuel consumed and excess air used per unit of fuel.
Excess air is the amount of air used over and above the theoretical amount
needed for complete burning of the fuel, and can be calculated on the basis of
oxygen in the gaseous emissions. In exceptional cases, industrial units that
have arrangements for continuous or online flow measurements of gas emitted may
use actual flow measurements for the quantification of air emissions.
A stepwise procedure for the calculation of air pollution
units from an industrial unit is given as under: -
1.
The concentration of pollutant parameters of concern
and oxygen in the stack gas shall be measured for a limited period, ranging
from a minimum of a day to about a week,
under normal operating conditions. The temperature of stack gases shall also be
measured.
2.
The quantity of fuel consumed and production shall be
monitored during the same period.
3.
The flow rate of gases shall be calculated using
standard formulas, with quantity of fuel used, concentration of oxygen and
temperature as inputs.
4.
Net quantity of air pollutant being discharged (in kg)
shall be calculated by subtracting the NEQS concentration from the measured
concentration, and multiplying the net concentration in excess of NEQS with the
calculated flue gas flow.
5.
Number of pollution units for each parameter shall be
calculated by dividing the net quantity of pollutant being discharged by the
amount defined as one pollution unit for the parameter under
consideration.
6.
Number of pollution units per unit of production shall
be calculated by dividing the number of pollution units with production in the
period during which the tests were carried out.
7.
Number of pollution units shall be calculated on the
basis of production in the period for which pollution charges are to be
paid.
8.
The amount to be paid as pollution charge shall be
calculated by multiplying the chargeable pollution units with the applicable
rate for a pollution unit for the year.
Pollution Charges for Non-Fuel Cases and Other Exceptions:
For processes where fuel is not used or where it is not
possible to calculate gas flow rates on the basis of fuels used, direct
measurement of gas flow rates shall be required.
Standard guidelines and procedures for measurement of gas
flow rates shall be prescribed. The remaining calculation procedures for the
number of pollution units and amount to be paid shall be the same as those for
fuel related emissions.
Separate calculation procedures shall be developed for the
cement industry to account for volume corrections associated with carbon
dioxide produced from the calcining process.
The system of pollution charges proposed in this document
shall not apply to the power industry. Standards and procedures for the power
industry shall be issued separately.
Sample Calculation of Pollution For Charge Gaseous Emission:
|
NEQS parameters.
|
Recorded.
|
Emission.
|
|
(1)
|
(2)
|
(3)
|
|
Carbon Monoxide (CO)
|
800
|
mg/nm3
|
|
Oxides of Nitrogen (NOx)
|
400
|
mg/nm3
|
|
Oxides of Sulfur (SOx)
|
400
|
mg/nm3
|
|
Particulate Matter (Coal)
|
500
|
mg/nm3
|
|
Particulate Matter (Oil)
|
300
|
mg/nm3
|
|
Particulate Matter (Cement)
|
200
|
mg/nm3
|
|
Particulate Matter (other)
|
500
|
mg/nm3
|
|
|
Fuel Consumed.
|
Excess Air %
|
Fuel Gas Discharged.
|
|
|
Kg/Year
|
|
M3/Year
|
|
Bagasse
|
495,000,000
|
30
|
1,854,646,438
|
|
Pollutant.
|
Total Air
Emissions
(mg/Nm3).
|
Exemption (mg/Nm3).
|
Net Chargeable Emission
(mg/Nm3).
|
Annual **
Chargeable Pollution Load
(kg).
|
Chargeable
Pollution Units.
|
|
CO
|
1,600
|
800
|
800
|
1,483,717
|
3,709
|
|
NOx
|
160
|
400
|
-
|
-
|
-
|
|
SOx
|
-
|
400
|
-
|
-
|
-
|
|
PM
|
6,744
|
500
|
6,244
|
11,580,412
|
46,322
|
Total
Chargeable Pollution Units* 50,031
@
Base Rate / P.U (Rs. 100/P U)
|
Total Pollution Charge.
|
Year 1
|
Year 2
|
Year 3
|
|
Rs./Year
|
1,000,619
|
2,001,238
|
3,001,857
|
*Refer to Schedule VI (B)
** Refer to Schedule III
Re-Determination of Pollution Charges:
If, during a running year, the unit attains a status (for a
period of at least three consecutive months) which corresponds to eighty per
cent or less of the value of at least one parameter, the unit or the production
unit is entitled to apply for a fresh assessment of pollution charge. The EPA
may impose a fee for such re-assessment.
SCHEDULE V
[See rule 7(3) and rule 8]
Fees for
determination of pollution level
|
Processing fees.
|
|
|
Rs. 5,000/-
|
|
Sample analysis fees.
|
|
|
Rates of certified labs under Notification No. S.R.O. 258 (1)/2000, dated 10th
February, 2000, shall be applicable.
|
|
[File No.1 (5)/2001-L/E]
|
|
|
(QAZI GHULAM MUSTAFA)
Deputy
Secretary
|
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