Environmental Protection in Beijing

Public Disclosure Authorized Environmental K Managemarent Institutions & Public Disclosure Authorized Organizationsin Beijing

Beijing Municipal Environmental Protection Bureau Public Disclosure Authorized

June 1994

M t Metropolitan Public Disclosure Authorized Environmental Improvement MEDP Program City WorkingPaper # MEIP/BEII1

ENVIRONMENTAL MANAGMENT INSTITUTIONS AND ORGANIZATIONS IN BEIJING

Beijing MunicipalEnvironmental Protection Bureau

June1994

The City Working Paper Series are informal papers published by the Metropolitan Environmental Improve- ment Program (MEIP), in an effort to share and exchange experiences in urban environmental governance among metropolitan cities in the Asia-Pacific Region.

This paper was prepared by Staff of the Beijing Municipal Environmental Protection Bureau, from funds provided by MEIP.

MEIP is a UNDP-assisted, World Bank-executed initiative now operating in six Asian cities -- Beijing, Bom- bay, Colombo, Jakarta, Kathmandu and Metro Manila. The primnarygoal is to assist selected Asian metropolitan areas to begin reversing the process of environmental degradation through appropriate interventions and improved governance, and to enable them to continue the process following the initial phase of external assistance. MEIP is a constituent partner of UNDP's Urban Management Program for Asia and the Pacific (UMPAP).

The findings, interpretationsand conclusionsexpressed in these papers are entirely those of the au- thors and should not be attributed in any manner to MEIP, the World Bank, UNDP or any of its affiliates. MEIP does not guaranteethe accuracy of the data includedin this paper and accepts no responsibilityfor any consequenceof their use. MEIP encouragesdissemination of its work and will give permission to reproduceportions of this paper if proper acknowledgementof the author is given.

Metropolitan Environmental Improvement Program Environment and Natural Resources Division Asia Technical Department The World Bank 1818, HIStreet

- Washington D.C., N.W. i- 20433 _l ~~~~USA

-E Tel: 202-458-2726, 2729, 2747 M I P Fax: 202-522-1664 TABLE OF CONTENTS

ABBREVIATIONS ...... -iv -

INTRODUCTION ...... v -

BEUING ...... 1 GEOGRAPHY ...... 1 BEIING ...... 3

ENVIRONMENTAL MANAGEMENT INSTIUONS ...... 5 NATIONAL ENVIRONMENTAL PROTECTION INSTlTUTIONS ...... 5 MUNICIPAL ENVIRONMENTAL MANAGEMENT INSTITUTIONS ... 5. THE BEIJING MUNICIPAL ENVIRONMENTAL PROTECTION BUREAU . . 6 The Beijing Municipal Environmental Protection Research Institute ... 7 The Beijing Municipal Environment Monitoring Center ...... 7 The Beijing Municipal Technical Training Center for Environmental Protection ...... 8 DISTRICT AND COUNTY ENVIRONMENTAL PROTECTION AUTHORTIIES ...... 9 District and County Environmental Protection Bureaus ...... 9 Village and Neighborhood Environmental Protection Staff ...... 9 Village and Neighborhood Environment Information Committees ...... 9 BUREAU, CORPORATION AND ENTERPRISE ENVIRONMENT OFFICES ...... 9 THE ENVIRONMENTAL QUALITY ASSURANCE SYSTEM ...... 9

ENVIRONMENTAL PROTECTION IN BEUING ...... 12 ENVIRONMENTAL PROTECTION LAWS ...... 13 ENVIRONMENTAL PROTECTION PLANS ...... 15 ENVIRONMENTAL PUBLIC RELATIONS ...... 16 SCIENTIFIC RESEARCH AND MONITORING ...... 16

ENVIRONMENTAL MANAGEMENT APPROACHES ...... 17 SAN TONG SHI ...... 17 The Legal Foundation .. 17 Implementation .. 18 Results ...... 19 ENVIRONMENTAL IMPACT ASSESSMENTS . . 20 The Legal Foundation .. 20

- ii - Implementation ...... 21 Results...... 22 EXCESS POLLUTION DISCHARGEFEES ...... 22 The Legal Foundation ...... 22 Implementation...... 23 Results ...... 24 DEADLINE CONTROL ...... 25 The Legal Foundation ...... 26 Implementation...... 26 Results ...... 28 POLLUTION DISCHARGEREGISTRATION AND PERMITTING ...... 29 The Legal Foundation ...... 29 Implementation...... 30 Results ...... 32 CENTRALIZEDPOLLUTION CONTROL ...... 35 The Theoretical Foundation...... 35 Implementation...... 35 Results ...... 36 ENTERPRISEEVALUATION ...... 37 The Legal Foundation ...... 37 Implementation...... 37 Results...... 38 ENVIRONMENTALGOALS AND RESPONSIBILITY...... 38 The Legal Foundation ...... 38 Implementation...... 38 Results...... 39 QUANTITATIVEASSESSMENT OF THE URBAN ENVIRONMENT ...... 39 The Legal Foundation ...... 40 Implementation...... 41 Results ...... 41 PUBLIC ENVIRONMENTALPROTECTION ...... 41 The TheoreticalFoundation ...... 42 Implementation...... 42 Results...... 43

CONCLUSION ...... 44

ANNEX A -- POLLUTION PERMITTING IN BEIING ...... Al-I

ANNEX B -- POLLUTIONDISCHARGE PERMITTING AND CLEAN TECHNOLOGY ...... A2-1

- 111 - ABBREVIATIONS

BMEMC Beijing Municipal EnvironmentalMonitoring Center BMEPB Beijing Municipal EnvironmentalProtection Bureau BMEPC Beijing Municipal EnvironmentalProtection Committee BMEPRI Beijing Municipal EnvironmentalProtection Research Institute BMG Beijing Municipal Government BMTTCEP Beijing Municipal Technical Training Center for EnvironmentalProtection

EIA EnvironmentalImpact Assessment EPB EnvironmentalProtection Bureau EPC EnvironmentalProtection Commission(State Council)

NEPA National EnvironmentalProtection Agency (China)

Y Chinese yuan (1990)

Y5.4 US$1

- iv - INIRODUCTION

In the early 1970sChina introduced environmentalprotection policies emphasizing comprehensiveplanning, rational layout, integrated waste utilization, attention to public concerns, and universal environmentalprotection. The EnvironmentalProtection Act of the People's Republic of China (Draft) was issued by the National People's Congress in September 1979. In the 1980s environmentalprotection was further emphasizedand a policy of simultaneousurban and rural economic developmentand environmentalenforcement formulated. The National People's Congress formally issued the EnvironmentalProtection Act of the People's Republic of China in 1989.

Since Beijing opened its first environmentalprotection office in 1974, environmental protection institutions have been establishedat all levels of governmentand the legal framework supportingthese improved; measurableprogress has been made. In April 1980, the Secretariat of the Central Party Committeeissued four directives on construction in Beijing, The Beijing Urban ConstructionMaster Plan. This clarified Beijing's status as China's capital, urging stronger environmentalmanagement and making Beijing a clean and healthy city.

-v - BEIJING

GEOGRAPHY

Situated in the north of the Great North China Plain, Beijing is bordered by the Loess Plateau to the west and the Inner Mongolia Plateau to the north. The Beijing Administrative Area totals 16,808 km2, of which 6,390 km2 (38 percent) is flat land and 10,418 km2 (62 percent) mountainousarea. Beijing has over 120 rivers within its territory, large and small, with a total length of over 2,700 km. The rivers mostly originate in the mountainousareas to the northwestof the city, converging into Beijing's five big river systems, the Yongding River, the Chaobai River, the Grand Canal, the Daqing River and the Jiyun River, before flowing through the Heihe River into the Bohai Sea . Beijing also has 84 reservoirs, with a total storage capacity of 7.2 billion m3.

Beijing has a continentaltemperate monsoon climate. It has distinct seasons: dry, windy springs; hot, rainy summers; cool, humid autumns; and cold, arid winters. During 1954-84, the average temperaturewas 11.6°C, the highest 38°C and the lowest -17°C (Figure 1-2). Annual average precipitation is 640 mm, but this fluctuates significantlybetween both different seasons and different years. 75 percent of the year's BEIJING MONTHLY AVERAGE TEMPERATURE rain occurs between 29 (1951-1984: June and August 26 - 25 (Figure 1-3), 24 24 resulting in an 22 - erratic water supply 20 - and inadequate t/ wastewater dilution 14 \ in some small and 1 22 medium-size rivers t 0 during dryer 8 seasons. Beijing has 6 an annual frost-free 4- period averaging 180 2 0 days. The wind -2 -2.1 2 generally blows -4 from the north all -6 . year. The strongest I _ _ _ _A__ _ _ _ N_ _ monthly average FIGURE1-2 ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 2 3 BEIJING velocity is in April. Dust from the Loess Plateau to the northwest blows into Beijing, which during more and periods causes a "sandstorm"climate.

Beijing's varying BEILJ I NG MONTHLY AVERAGE PRECI P iTAT ION land resources offer (1951-1984) favorable conditions 220 208.7 for agriculture, 200 - forestry, livestock 180 183.5 and other industries. Beijing has a rich 1S0_ endowment of 140- mineral resources; 120 - 43 materials are mined (15 metals, v 100 27 non-ferrous 80 _ metals, and coal) so0 54.0 and the region is renowned for its 40 - 31.2 marble.Beijing has 20 27 7 102. . . rich and accessible _ no 2 PM geothermal energy J F m A M J J A S 0 N 0 resources, as well as FIGURE1-3 relatively good solar energy, with an annual average sunshinetime of 2,700 hours.

BEIJING

Beijing is China's political and cultural center and the primary window for foreign contacts. As a result of reform, a tourism industry has developedand the city hosts one million visitors annually. The city has a total population of over 11 million, of which permanent residents number 10.39 million. The city's registered population is 6.48 million, plus a floating population of 1.3 million. Its planned urban area is 1,026 km2, of which 400 km2 already have been developed. The Beijing metropolisincorporates 18 districts and counties, in which four urban districts cover an area of 87.1 ki 2, four suburban districts occupy 1,282.8 km2 and 10 outer suburban counties 15,437.9 km2. The four urban districts are the densest with population and industry, followedby the suburban districts and outer counties.

Beijing is a prominent city with a long history. Since 1949, Beijing has witnessed significant urban and rural developmentand economicchange, becoming a modem metropolis with a variety of industries operating at a considerable magnitude. By the end of 1990, Beijing's total housing area was 210 million ni2, 10 times greater than in 1949. Beijing contains 23 waterworks with a daily water supply capacity of 520,000 tons; 2,880 km of sewers (85 times greater than 1949); 7 sewerage systemsand 3 domestic sewage treatment plants, with a daily treatment capacity of 250,000 tons. Beijing has a road length of 3,276 km with an area of 29.04 million m2 and 33 major bridges. ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 4

Coal represents over 70 percent of allfuels used EIJING ' FUEL STRUCTURE (Figure 1-4). Of Beijing's C1990O 1.76 million households, 84 percent use relatively clean LiGUIFIEDPETROLE GAS MM fuels like coal gas, natural FUELLCILC15 l gas and liquefiedpetroleum gas. Beijing has over 300 sanitation stations, each CL DEL 3 year collecting3.8 million GASLINE, DIESELCE.3) tons of solid waste and 2. 1 NATLRAL/CCALGAS CO.-9) million tons of night-soil.

In 1990, Beijing reported a total industrial production valueof Y47.1billion, ac- L C75.M countingfor 71.1 percent of Beijing's total production FIGURE1-4 value (Figure 1-5). Beijing has 6,272 industrial enterprises (excludingenterprises BE IJ ING S COCERCI AL OUTPUT at or below the village ciggo level), employing3,854,000 workers; 3,204 enterprises employing296,000 workers UCTIONC12.1S) are township or village enterprises. In addition, COMMERCECS.M Beijing has also 22,800 village-run industrial enter- lICJLTUR AM C6 7-M prises, employing70,000 workers. In recent years, TRANORTr, CQWICATION (3. township and village enterprises have developed and diversified to the degree I NOUrI C7i. 1. that they produce 27.4 percent of BAA's commercial output, or Y28.85 billion. FIGURE 1-5 Beijing annually produces Y30.77 billion worth of goods, and exports US$1.32 billion worth.

Urban economic developmenthas brought increased prosperity, but ensuing urban expansion, population growth and economic developmenthave triggered immense environmentalpres- sures. ENVIRONMENTAL MANAGEMENT INSTlTUTIONS

NATIONALENVIRONMENTAL PROTECTION INSTITUTIONS

The National EnvironmentalProtection Agency (NEPA) is China's national environmental authority. Its responsibilitiesinclude drafting national environmentallaws, rules, regulations, provisions and guidelines;preparing national environmentalprotection plans; monitoring and controlling wastewater, waste gases, solid wastes, noises, and radioactive and electromagnet- ic emissions; supervising environmentalimpact assessmentsfor cross-regionalconstruction projects; integrated managementand nature preservation; and environmentalpublic relations and education.

In order to strengthenand coordinate national environmentalmanagement, in 1981 the State Council created the EnvironmentalProtection Commission (EPC), incorporatingleaders from the state ministries, commissionsand press units, conveningquarterly to assess environmental protection, national environmentalpolicies and emerging solutions. The present chairman is state councilor and chairman of the State Scientific and TechnologicalCommission. The Secretariat of the State Council EPC is in NEPA.

MUNICIPALENVIRONMENTAL MANAGEMENT INSTITUTIONS

The People's Congress of Beijing and its StandingCommittee is constitutionallyempowered to draft and issue municipal rules and regulations. The Urban ConstructionCommittee (People's Congress) supervisesenvironmental protection. The Beijing Municipal Government (BMG) is the executive and administrativebranch of the People's Congress.

In order to strengthen environmentalleadership in Beijing, in 1985 BMG established the Beijing Municipal EnvironmentalProtection Committee (BMEPC), chaired by the Executive Deputy Mayor of Beijing, and whose standingdeputy chairman is the Assistant to the Mayor and Chairman of the Public Works AdministrationCommittee. BMEPC consists of 33 lead- ers from BMG committees, offices and bureaus, military environmentalprotection offices and press units (Table 2-1). BMEPC convenes twice a year to study Beijing's environmental protection plans, to organize and coordinate cooperationsbetween departments and report issues of major concern to BMG Executive Meeting for discussion. The BMEPC office is in the Beijing Municipal EnvironmentalProtection Bureau (BMEPB), whose bureau chief is the office director.

BMG committees and offices have, in accordancewith their sectors, special divisions or per- ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 6

THE BEIJINGMUNICIPAL ENVIRONMENTALPROTECTION COMMITTEE

Chairman: Vice Mayor of Beijing

Standing Deputy Chairman: Assistant to the Mayor and Chairman of the Municipal Adninistration Committee

Deputy Chairman: Vice Mayor of Beijing Deputy Chairman, Beijing Municipal Planning Committee Deputy Chairman of Municipal AdministrationCommittee Director,BMEPB

Members: Deputy SecretaryGeneral, BMG Deputy Director, Beijing MunicipaLEconomic Committee Deputy Director, Beijing Municipal Urban and Rural Construction Committee Deputy Director, AgricuLturaland Forestry Office, BMG Deputy Director,Beijing Municipal Science and TechnologyCommittee Director,General Office, Capital Planning and ConstructionCommittee Deputy Director, Beijing Municipal Commerce Cofmmittee Deputy Director, Legal ConstructionOffice, BMG Director,Beijing Municipal EnviromnentaLSanitation Bureau Director,Beijing Municipal Geology and Minerals Bureau Director,Beijing MunicipalConstruction Planning Bureau Director,Beijing Municipal Township and Village EnterprisesBureau Director,Beijing MunicipaL Traffic AdministrationBureau Deputy Director, Beijing Municipal Public Utilities Bureau Deputy Director, Beijing Municipal Finance Bureau Deputy Director,Beijing Municipal CulturaL Property Bureau Deputy Director,Beijing Municipal Public Security Bureau President,Beijing Municipal Planning and Designing Institute Deputy Director,Beijing MunicipalWater ConservancyBureau County Executive,Miyun County, Beijing County Executive, Huairou County, Beijing Deputy District Head, Chaoyang District,Beijing Deputy District Head, Haidian District, Beijing Director, Military Service EnvirornmentalProtection Office Editor in Chief, Beijing Daily Director, Beijing People's BroadcastingStation Director, Beijing TelevisionStation

Office Director: Director, BMEPB TABLE 2-1 sonnel responsible for environmental protection under their administrative responsibility (Table 2-2).

THE BEIJING MUNICIPAL ENVIRONMENTAL PROTECTION BUREAU (BMEPB)

BMEPB is Beijing's primary environmental protection authority, responsible for the daily administration of environmental protection and coordination, integrated planning, and supervision. In 1972 the Three-Wastes Treatment Office opened in Beijing, in 1974 was renamed the Environmental Protection Office and in 1979 became the present-day BMEPB. Its specific responsibilities include drafting environmental policies, rules, regulations, provisions and standards for Beijing; formulating management measures and rules to implement these regulations; helping NEPA and EPC draft national, urban and rural economic, social and environmental development programs; supervising enterprises' execution of national and local regulations; reviewing and approving construction project EIAs and environmental protection facilities; collecting excess pollution discharge fees and penalties; organizing city-wide environ- 7 ENVIRONMENTALMANAGEMENT INSTITUTIONS

ENVIRONMENTALCOMMISSIONS AND OFFICES IN BEIJING

COMMISSION OFFICE FUNCTION

PLANNING COMMISSION TERRITORY & DEVELOPS THE CITY'S ENVIRONMENTALPLAN & INTEGRATES ENVIRONMENTAL THIS WITH ANNUAL, MEDIUM- & LONG-TERMECONOMIC & DIVISION SOCIAL DEVELOPMENTPLANS; MANAGES PROPOSALS& INVESTMENTSFOR ENVIRONMENTALCONSTRUCTION AND RENOVATION PROJECTS.

ECONOMIC COMMISSION TECHNOLOGY SAFETY & SUPERVISES ENVIRONMENTALPERFORMANCE & POLICY IN THE ENVIRONMENTAL INDUSTRIALSECTOR AND DEVELOPS ITS ENVIRONMENT, DIVISION POLLUTIONCONTROL & RESETTLEMENTPLANS.

ADMINISTRATION ENVIRONMENTAL SUPERVISES ENVIRONMENTALWORK BY THE BUREAUS OF COMMISSION DIVISION GARDENS & REFORESTATION,ENVIRONMENTAL SANITATION, ENVIRONMENTALPROTECTION, MUNICIPAL WORKS, PUBLIC UTILITIES& CITY ENVIRONMENTALPROTECTION.

URBAN & RURAL CONSTRUCTION ORGANIZES & EXECUTES URBAN DEVELOPMENTPLANS & CONSTRUCTIONCOMMISSION MANAGEMENT DIVISION POLICY; DRAWS UP THE CONSTRUCTIONDEVELOPMENT & CONSTRUCTIONSECTION ANNUAL DEVELOPMENTPLANS.

SCIENCE & TECHNOLOGY URBAN DEVELOPMENT RESEARCH,CERTIFICATION EXAMS & INFORMATION COMMISSION DIVISION DISSEMINATIONIN ENVIRONMENTALSCIENCE & TECHNOLOGY.

AGRICULTURE & PRODUCTION SUPERVISESENVIRONMENTAL PRACTICES BY TOWNSHIP REFORESTATION DEVELOPMENTDIVISION ENTERPRISES& FARMS; DEVELOPS THE SUBURBS' & COMMISSION COUNTIES'ENVIRONMENTAL POLICY & ANNUAL ENVIRONMENTAL ______PLAN.

LAWS AND REGULATIONS DRAFTS, REVIEWS AND ADMINISTERS LOCAL ENVIRONMENTAL OFFICE LAWS, PROVISIONS,REGULATIONS & PUBLIC RELATIONS.

TABLE 2-2

mental monitoring, scientific studies, and education and public relations campaigns; and supervising environmental protection by entities under its jurisdiction.

BMEPB has 16 divisions (13 administrative divisions), employing 113 people, of which 80 have completed their education above the junior college level (Table 2-3).

BMEPB affiliates include the Beijing Municipal Environmental Protection Research Institute (BMEPRI), the Beijing Municipal Environment Monitoring Center (BMEMC), and the Beijing Municipal Technical Training Center for Environmental Protection (BMTTCEP).

The Beijing Municipal Environmental Protection Research Institute (BMEPRI)

BMEPRI is China's first professional and multi-disciplinary environmental research institute. Employing 330 people, it has 239 engineering professionals, 60 of them senior technical staff. It contains research facilities for water treatment technology, integrated prevention and control of ambient air pollution, environmental chemistry, biological physics, urban and rural ecology, automated instruments, environmental economics, environmental impact assessment and environmental data.

The Beijing Municipal Environment Monitoring Center (BMEMC) ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 8

THE BEIJING MUNICIPAL ENVIRONMENTAL PROTECTION BUREAU

BEIJING GENERALOFFICE: Administration; document processing & management; deveLoping the MUNICIPAL annual plan. (20 people) ENVIRONMENTAL PROTECTION FIRST SUPERVISORYDIVISION: Supervises industriaLenterprises' management, supervision BUREAU & control of water, noise and soLid waste pollution. (10 peopLe) (133PEOPLE) SECOND SUPERVISORYDIVISION: supervisesair pollution & vehicle exhaust control; examines & approves the constructionor sale of boiLers, stoves & kiLns. (9 peopLe)

THIRD SUPERVISORYDIVISION: Approves& supervises constructionand renovation projects. (9 people)

FOURTH SUPERVISORYDIVISION: Collects excess poltutiondischarge fees and supervises districts& counties' envirormentalmanagement. (8 people)

FIFTH SUPERVISORYDIVISION: Supervisesagricultural and township enterprisepoLLution control. (4 peopLe)

LEGAL DIVISION: Drafts & executes ruLes, reguLations& standards for environmental protection. (4 peopLe)

SCIENCE & TECHNOLOGY DIVISION: Drafts research pLans; disseminates information. (6 peopLe)

PUBLICITY& EDUCATIONDIVISION: Manages city-wide public relations& education; Liaisonwith ChinaEnvirorvnent News. (7 people)

FINANCE DIVISION: Manages the annual plan, envirornmentalstatistics & finance. (9 people)

PERSONNEL DIVISION: Responsiblefor staff recruitment& training. (4 peopLe)

CHIEF ENGINEER'S OFFICE: Researchesenvirornental poLicies & strategies;drafts medium- & long-termstrategies; manages the computersystem. (6 people)

AUDIT & SECURITY OFFICE: Responsiblefor audit supervision& security. (3 peopLe)

OTHER: The Director of BMEPB; other functions. (14 peopLe)

AFFILIATES BEIJING MUNICIPAL ENVIRONMENTALPROTECTION RESEARCH INSTITUTE (330 PEOPLE) (697PEOPLE) BEIJING MUNICIPAL ENVIRONMENTALMONITORING CENTER (232 PEOPLE)

IBEIJING MUNICIPAL TECHNICALTRAINING CENTER FOR ENVIRONMENTALPROTECTION (22 PEOPLE)

TABLE 2-3

Employing232 people, BMEMC has 166 scientific and technical personnel, 25 of which are senior technical staff. It has 19 sections, includingwater, air, instrument analysis, automated ambient air monitoring systems, soil biology, quality control, comprehensive studies and information. BMEMC is primarily responsible for the city-widemonitoring network and monitoring ambient air and rivers in critical areas; providing technical guidance and quality control for district, county and bureau monitoring stations; and conducting scientific studiesin environmentalmonitoring technologies.

The Beijing Municipal Technical Training Center for EnvironmentalProtection (BMTTCEP)

BMITCEP will soon open, and will be responsiblefor technical training for environmental managementpersonnel throughout Beijing, as well as public relations and environmentaledu- cation. 9 ENVIRONMENTALMANAGEMENT INSTITUTIONS

DISTRICT AND COUNTY ENVIRONMENTAL PROTECTION AUTHORITIES

District and County EnvironmentalProtection Bureaus

All 18 district and county governmentsunder BMG have establishedenvironmental protection bureaus (EPBs) and monitoring stations in order to enforce environmentalregulations; some have established environmentalprotection committeesto coordinate environmentalprotection in their region. Their functionsinclude executing national and local environmental laws; supervisingenvironmental practices by enterprises and institutionsunder their jurisdiction; collectingexcess pollution discharge fees; organizing educationalcampaigns and personnel training; helping prepare regional environmentalplans; reviewing construction and renovation projects for enterprises under district or countyjurisdiction; and assisting environmental efforts by other departments, particularly managingwater source protection areas, sightseeinglocations, cultural property and wildlife protection areas. These EPBs are supervised by BMEPB. The districts and counties have different personnel in accordance with their different locations, industrialprofile, populationdensity and functions (Table 2-4).

Village and NeighborhoodEnvironmental Protection Staff

The village or township governmenturban managementoffices and the district and county govemment neighborhoodoffices often employ full-time environmentalstaff, who work with the district or county EPB to monitor pollution sources in their area. In addition, these towns' polluting industries often are required to establish cooperationgroups to maintainpol- lution source files and report problems to the district or county EPBs. This helps enforce environmental protection rules and regulations. Beijing employs 427 neighborhoodenvironmental protection staff.

Village and NeighborhoodEnvironment Information Committees

Each district and town under BMG delegates a deputy director of their Neighborhoodor Village Committee as environmentinformation member, [

BUREAU, CORPORATION AND ENTERPRISE ENVIRONMENT OFFICES

All industrial bureaus and corporations, and certain industrial enterprises and non-industrial bureaus in Beijing maintain environmentoffices handling the organization's efforts to comply with BMG environmentplans and programs, pollution prevention and control campaignsand public relations and education exercises (Table 2-5). Certain major industrial bureaus also maintain monitoring stations to monitor pollution sources associated with their industry and supply BMG with environmentaldata.

THE ENVIRONMENTAL QUALITY ASSURANCE SYSTEM ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 10

DISTRICT& COUNTY ENVIRONMENTALPROTECTION BUREAUS (EPBs)

District & District & Staff Features of District or County EPB county County (1990) area (km)2 population DongchengDistrict EPB 24.7 64.2 39 Treatmentsection, technology & planning, monitor- _ing station. Xicheng District EPB 30.0 77.2 32 Supervision & management section, science & technology section, pLanningsection, monitoring station. ChongwenDistrict EPB 15.9 42.9 36 Management sections for water, air, noise, smoke & dust, monitoring station. Xuanwu District EPB 16.5 58.1 37 Supervision& management section, comprehensive planning section, education& public relationssection, monitoring station. Chaoyang District EPB 470.8 128.1 79 Discharge fee collectionoffice, comprehensive planning section, educationand public reLations section, finance section, monitoring station. Haidian District EPB 426.6 129.9 56 Supervisionsection, management section, education and public relationssection, monitoring station. Fengtai District EPB 304.2 69.5 56 Supervisionsection, comprehensivepLanning section, finance section, Education & pubLic relations section, monitoring station. ShijingshanDistrict 81.8 28.8 52 Supervision section, comprehensivetechnology sec- EPB _tion, monitoring station. Tong County EPB 870 58.4 36 Supervision section, comprehensivemanagement section, monitoring station. Pinggu County EPB 1075.6 38 22 Supervision section,monitoring station, management section. Shunyi County EPB 980 53.1 30 Management section monitoring station. Miyun County EPB 2335.6 42.2 29 Monitoring station. Huairou County EPS 2557.3 25.5 27 Supervisionsection, management section, monitoring ______station. Yanqing County EPB 1980 26.9 29 Supervisionsection, management section, monitoring

_station. Changping County EPB 1430 40.9 37 No. 1 & No. 2 supervisionsections, comprehensive planningsection, monitoring station. MentougouDistrict EPB 1331.3 25.5 28 Supervisionsection, vocation section, monitoring station. FangshanDistrict EPB 1866.7 74.2 47 Supervisionsection, management section, finance section, monitoring station. Daxing County EPS 1012 48.8 30 Supervision section,management section, technology section, monitoring station.

TotaL 16807.8 1032.2 702

TABLE2-4

Beijing has in recent years established an environmentalquality assurance system, combining supervision, management,internal quality assurance, monitoring and control (Figure 2-1). An information feedback system has been set up between these systems and BMEPB to provide timely information. Beijingpresently employs7,866 full-timeand 5,717 part-time environmental workers, forming a comprehensiveenvironmental management and monitoring network and playing an important role in preventing and controlling environmental pollution 11 ENVIRONMENTALMANAGEMENT INSTITUTIONS

ENVIRONMENTOFFICES OF MAJOR INDUSTRIALDEPARTMENTS

UNIT INVESTMENTIN ENVIRONMENTALPERSONNEL ENVIRONMENTALFACILITIES FULL-TIME PART-TIME-' TOTAL

BEIJING FIRST LIGHT INDUSTRY CORPORATION 146.12 87 138 225

BEIJING SECOND LIGHT INDUSTRYCORPORATION 2331.68 165 97 262

BEIJING TEXTILE INDUSTRY CORPORATION 2529.36 413 121 534

BEIJING ELECTRON INDUSTRY OFFICE 1481.41 114 121 235

BEIJING CHEMICAL INDUSTRY GROUP CORPORATION 9066.28 74 225 972

BEIJING BUILDING MATERIAL INDUSTRYCORPORATION 3165.54 292 164 456

BEIJING MACHINE INDUSTRY MANAGEMENT BUREAU 2931.57 238 146 384

CAPITAL STEEL CORPORATION 14572.62 948 178 1126

BEIJING YASHAN PETROCHEMICALCORPORATION 13387.18 445 390 835

HUABEI ELECTRIC POWER MANAGEMENT BUREAU 5774.50 26 18 441

SUBTOTAL 55386.26 3475 1598 50731

OTHER ENTERPRISES 211t 634 1750

TOTAI 5591 2232 7823

' Concurrentwith other work. TABLE 2-5 ENVIRONMENTALPROTECTION PERSONNEL IN BEIJING

ITEMS FULL-TIME PART-TIME SUBTOTAL

BMEPB 113 113

BMEPRI 330 330

BMEMC 232 232

BMTTCEP 22 22

District & County EPBs 702 702

Township& Village EP personneL 427 427

Neighborhood& village EP informationworkers 3,243 3,243

BUREAUS & CORPORATIONS | 5,591 2,232 7,823

OTHERS ] 449 242 691 l TOTAL | 7,866 T 5,717 I 13,583 TABLE2-6

and maintainingan ecological balance (Table 2-6). ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 12

BEIJINGENVIRONMENTAL QUALITY ORGANIZATIONAL GUARANTEE SYSTEM

BEIJING MUNICIPALGOVERNMENT (BMG)

BMGOFFICES & BEIJING MUNICIPAL ENVIRONMENTALPROTECTION COMMISSION COMMISSIONS

I BEIJING MUNICIPAL ENVIRONMENTALPROTECTION BUREAU

MUNICIPAL BEIJING I I BUREAUS, MINISTRIES, DISTRICT/COUNTY DISTRICT/COUNTY BEIJING MUNICIPAL GENERAL MILITARY BUREAUS& EPBS ENVIRONMENTAL COMPANIES ENTERPRISES COMPANIES MONITORINGCENTER

SECOND-RAIK POLLUTION- POLLUTION- NEIGHBORHOOD/ DISTRICT/ MONITORING COMPANIES PRODUCING PRODUCING TOWNSHIP COUNTY COOPERATION ,WORKSHOPS _ ENTERPRISES ENVIRONMENTAL MONITORING NETWORK I | _ I PROTECTION STATIONS POLLUTION-l SUPERVISORS PRODUCING POLLUTION- POLLUTION- ENTERPRISES PRODUCING PRODUCING METEOROLOGYBUREAU _- WORKSTATIONS WORKSHOPS SAliTl ' n ' ' | | ~~~~~~~~~~~SANITATION/EPIDEMIC POLLUTION- PREVENTIONSTATION PRODUCING POLLUTION- WORKSHOPS PRODUCING WATERCONSERVATION WORKSTATIONS BUREAU

POLLUTION- HYDROLOGY& GEOLOGY PRODUCING | RESIDENTS/ POLLUTION COMPANY WORKSTATIONS VILLAGES SOURCE COMMITTEES; ENTERPRISES' WATERSUPPLY COMPANY |SUPERVISING ||COOPERATION|| , |NETWORK ||GROUPlll

ENVIRONMENTALE MONITORINGSITES

FIGURE2-1

ENVIRONMENTALPROTECTION IN BEIJING

Over the past two decades the environmenthas become increasingly important to Beijing's leadership and population. Environmentalprotection agencies have gained a deeper understandingof environmentalissues, strengthenedtheir work force, improved their managerialand legal frameworks, and introduced in-depth scientific and technological monitoring. Improved urban infrastructure, and urban and rural integrated control has brought about measurableimprovements in Beijing's environment. Since 1981, Beijing has invested Y1.45 billion in environmentalcontrol in existing enterprises and institutions (apart from other funds for pollution prevention and control in new projects) (Table 3-1), and Y15.6 billion in urban infrastructure,of which over Y5 billion was applied to public utilities affecting the environment(Table 3-2). During a time of rapid urban and rural constructionand economic developmentand continuingpopulation growth, the rate of environmentaldegeneration actually slowed, certain pollutions were reduced, the landscape improved and the environmentalquality of certain rivers and lakes has increased. POLLUTIONCONTROL INVESTMENT IN BEIJINGENTERPRISES (1981-1 990) (Y,OOO)

Item 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 Total CapitalInvestment 1621029660 11140 9780 13660 20520 12090 32960 13860 7950 167830 Renovation 86140 5302045240 31640 50580 51180 21230 39880 49930 33100 461940 Profitsfrom ReutiLization 4810 690 310 20 220 350 3150 2040 1130 12720 of Wastes EnvironmentalSubsidy Funds 340 2990 7540 11330 15270 20110 22550 30090 17920 22160 150300 Loans 350 4640 15740 4360 25580 48340 106680 67740 62700 46940 383070 Others 1370 2500 130 41160 54690 69960 54960 47860 272630 TotaL Investment 10785 92380 82470 57250 105080 1181530217590 2C3710 201410 159140 1448480

This investmentwas appliedonly to pollutionsources in existing enterprises. TABLE 3-1

A comparisonbetween 1981 and 1990 reveals that though Beijing's urban population grew by nearly 1 million, per capita greenland coverage rose from 5.14 m2 to 6.14 m2 ; land developed for constructionduring this time rose by nearly 80 million m2 (an increase of 83 percent); coal consumptiongrew by 6 million tons annually, but excessivelydusty and smoggy days in urban districts declinedby 30 percent and ambient SO2,CO and NOX, other than during wintertime fell below national standards. During this time, aggregate industrial output value doubled, yet industrial wastewaterdischarges reduced by 2.02 million tons, and toxic and hazardous wastes such as CN, Hg, Cd, and Cr dischargedin this wastewater dropped by over 90 percent (Table 3-3). The number of motor vehicles in Beijing increased severalfoldduring this period, but average traffic noise in urban districts went from 76.7 decibels in 1976 to 71.4 decibels in 1990. In addition, main surface and ground water sources did not worsen.

ENVIRONMENTAL PROTECTION LAWS

In 1979 China issued The EnvironmentalProtection Act of the People's Republic of China (Draft) and a series of environmentalprotection laws, rules and regulations. Over the next decade the People's Congress of Beijing and BMG formulated 19 local environmental protection laws, regulations and provisions, often based on national regulations, which provide a legal foundationfor environmentalprotection (Table 3-4). INVESTMENTIN INFRASTRUCTUREAND PUBLICUTILITIES IN BEIJING m (1981-1990) (Y100,000,000) c

YEAR INFRASTRUCTURE PERCENT FOR TOTAL PUBLIC WATER SUPPLY SEWERS HEAT SUPPLY GAS SUPPLY REFORESTATION ENVIRONMENTAL ROADS INVESTMENT FIXED ASSETS UTILITIESINVESTMENT SANITATION z

1981 5.81 18.5 3.04 0.51 0.25 0.05 0.16M 0.0 0.85 - 1982 6.09 17.70 3.02 0.25 0.15 0.12 0.19 0.05 0.10 0.51 1983 6.71 17.40 2.59 0.26 0.29 0.06 0.19 0.09 0.12 0.55 m 1984 8.8t 16.90 4.70 0.3 0.29 0.10 0.24 0.1l 0.12 1.06 z

1985 13.15 16.91 5.46 0.68 0.07 0.18 0.4t 0.12 0.18 --

1986 14.51 15.34 5.02 1.38 0.20 0.17 0.91 0.17 0.48 0.29 < 1987 19.85 16.38 5.20 0.69 0.11 0.62 0.33 0.17 0.22 1.18 c- 1988 23.15 13.18 10.61 2.61 0.07 1.46 0.6 0.28 0.33 3.24 o

1989 26.5 21.89 9.75 2.69 0.83 0.82 0.53 0.16 0.28 2.80 > 1990 31.6( 23.30 10.20 1.55 0.74 1.32 0.8t 0.36 0.45 3.68 1 TOTAL 156.2 177.50 57.62 10.9 3.00 4.90 4.38 1.5t 3.13 13.3111 z TABLE 3-2 o GROSSINDUSTRIAL OUTPUT VALUE, INDUSTRIALWASTEWATER DISCHARGES & PRIMARYTOXIC WASTES IN BEIJING (1981-1990) m

|______ITEM _ UNIT 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990

GROSS INDUSTRIALOUTPUT VALUE BILLION YUAN 21.7 22.9 25.0 28.2 30.8 32.2 35.7 41.8 44.8 41.7

WASTEWATERDISCHARGE 10,000 TONS 40816 44072 43363 42815 38983 45556 44214 39001 39912 40614

MERCURY & INORGANICCOMPOUNDS (Hg) TONS 0.30 0.30 0.30 0.10 0.10 0.10 0.02 0.01 0.01 0.00

CADMIUM & INORGANICCOMPOUNDS (Ca) TONS 2.90 2.90 2.90 0.50 0.20 0.20 0.25 0.11 0.09 0.10

HEXAVALENTCHROMIUM COMPOUNDS (Cr) TONS 169.00 169.00 169.00 21.30 13.59 9.86 5.15 5.34 2.90 2.03

CYANIDE (Cn) TONS 119.60 120.00 120.00 25.00 11.96 17.22 21.28 20.60 24.20 __13.39

TABLE 3-3 15 ENVIRONMENTALPROTECTION IN BEIJING

NEIJINGENVIRONMENTAL PROTECTION LAWS AND REGULATIONS

1. CircuLar on the Strict ControL of Newly BuiLt and ExPanded ElectroplateFactories and Sites, BMG, November 12, 1981.

2. The Measures of Implementationby the Beiiing Municipalityon the Execution of the State Council's "ProvisionalMeasures on the Pollution DischargeFee System", BMG, May 13, 1982.

3. ProvisionalRegulations on Issues Relating to the Adjustment of ElectroolateFactories and Sites, BMG General Office, July 30, 1982.

4. ProvisionalMeasures of the Beijing Municipalityon EnvironmentalNoise Management, BMG, March 8, 1984.

5. ProvisionalMeasures on the Management of Ambient Air PollutionPrevention and Control in the Beiiing Municipalityand Standards for Waste Gas Emission in the Beijing Municinality(Draft), 8MG, March 8, 1984.

6. ManagementMeasures of Water Source Protection in Guangting Water System, BMG, Hebei Province and Shanxi Province,December 11, 1984.

7. ProvisionalMeasures on the Protection of Water Sources of Miyun Reservoir.Huairou Reservoirand Beijing-MivunWater IntroductionCanal, BMG, July 3, 1985.

8. Regulationsof the Beijing Municipalityon the Executionof the State Council's "Water Pollutio Preventionand Control Act, Standing Comnitteeof the People's Congress of Beijing, October 11, 1985.

9. Water PollutantsDischarge Standard of the Beiiing Municipality,BMG, October 15, 1985.

10. DetailedRules for the Implementationof the "ProvisionaLMeasures on the Protectionof WaterSources of Miyun Reservoir. Huairou Reservoir and Beiiing-MiyunWater IntroductionCanal", BMG, April 1986.

11. ManagementMeasures of the Beijing MunicipaLityon the Protectionof Urban Waterworks and Underground Water Sources, BMG, June 10, 1986.

12. ManagementMeasures on EnvironmentalProtection of Township and Village Enterprises and Neighborhood Enterprisesin the Beijing Municipality,BMG, June 13, 1986.

13. ProvisionalRegulations on the use of Cooling Towers, BMG, BMEP8 and the Municipal Public Utilities Bureau, December 28, 1987.

14. Detailed Rules for Implementationin Beijing of the "AdministrativeMeasures on ENvironmental Protectionof ConstructionProiects", BMG and BMEPB, February 22, 1988.

15. Regulationsof the Beijing MunicipaLityon the Executionof "Ambient Air Pollution Preventionand Control Act of the People's Republic of China", Standing Committee of the People's Congress of Beijing, July 7, 1988; this overrode ProvisionalMeasure on the Management of Ambient Air Prevention and Control in the Beiiing Municipality(1984).

16. ManagementMeasures on the Preventionand Control of AutomobileEmission Pollution, BMG, September15, 1989.

17. ProvisionalRegulations of the Beijing Municipalityon the Executionof "The Proper Use of the Special-PurposeFund for PollutionSource Control, BMG, 1989.

18. Measureson the AdministrativePenalties of the Beiiing Municipalityon the Implementationof "Ambient Air Pollutionand Control Act of the People's Republic of China"',BMG, 1990.

19. Regulationson the AdministrativePenalty Procedures in the Execution of the EnvironmentalProtection Act of the People's Republic of China, BMG, 1990. TABLE 3-4

ENVIRONMENTAL PROTECTION PLANS ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATSONSIN BEIJING 16

Careless urban planning and layout can be a major factor affecting pollution. Pollution control may call for great effort and expense, yet the results may not be very obvious. BMG regards protecting the environment and maintaining ecological balance as a fundamental factor in the preparation of its economic and social development programs for urban and rural areas, specifying that urban, rural, and economic planning and development must incorporate environmental considerations. The Sixth, Seventh and Eighth Five-Year Plans each not only include a chapter outlining environmental protection goals, but incorporate environmental indices into the national economic and social development programs to be implemented by all BMG departments. This promotes the coordination of economic and environmental considerations.

ENVIRONMENTAL PUBLIC RELATIONS

Crucial to environmental management is awareness by both the government and the people. Popular awareness of environmental concerns has been enhanced through events such as lectures, Earth Day parties, picnics, and essay contests. Environmental education has been introduced in the primary and middle schools; some middle schools offer courses in environmental protection, including speech contests, summer camps and other activities. Several districts have organized Young Pioneers Environmental Protection Teams in the primary and middle schools.

SCIENTIFIC RESEARCH AND MONITORING

Environmental protection is a relatively new discipline, combining several natural and social sciences. The state and municipal governments annually budget funds to support cross- sectoral and cross-disciplinary scientific and technological studies. Adhering to the principle of environmental management founded on scientific research and monitoring, BMEPB has in the past decadie completed 158 scientific and technological projects, of which 19 projects have won state awards and 106 projects municipal awards. Many research results were applied to environmental and pollution source management, yielding good economic, social and environmental results, and providing a scientific basis for decision-making by the government and for environmental protection and-control of pollution sources.

In association with district, county, bureau and corporation monitoring stations, BMEMC has established an environmental monitoring network, intensified quality guarantee performance, conducted routine monitoring, and supplied a variety of data to the government and departments at various levels, providing a scientific basis for their decisions. In 1984, BMEMC established an automatic ambient air monitoring station and the Beijing Municipal Water Conservancy Bureau completed the first section of its automatic water quality monitoring system, enabling timely assessment of the status of and changes in Beijing's air and water quality. ENVIRONMENTAL MANAGEMENT APPROACHES

Environmentalprotection is a complex field, involving every field and industry of the national economy. Control of pollution at the source is critical, but managementapproaches supporting this are also very important.

Ten years of experience have led to the developmentof a set of managementmeasures appropriate to China's and Beijing's circumstances: * the San Tong Shi and environmentalimpact assessment (EIA) approaches to control potential new pollution sources; * excess pollution discharge fines, deadlines for control and evaluationof enterpriseson environmentalprotection; * pollution discharge registrationand permitting, and centralizedpollution control; * environmentaltargets and responsibilities,quantitative assessment for integrated control of the urban environment, and public environmentalprotection performance targets, for administrativedepartments.

Trheseapproaches, all effective managementtools, are playing increasingly important roles in environmentalprotection.

SAN TONG SHI

The San Tong Shi approach refers to the mandatory design, constructionand implementation of pollution control measures simultaneouslywith constructionon all new and retrofitted construction, renovations, expansionsor regional developmentconstruction projects, intended to prevent or strictly control new pollution sources.

The Legal Foundation

San Tong Shi was China's first environmentalmanagement approach, implicitly initiated in the early 1970s and formally stated in the EnvironmentalProtection Act of the People's Republic of China (Draft) (1979), then modified after a review of field experiences in the EnvironmentalProtection Act of the People's Republic of China (1989), which specified penalties for violators of this law.

Article 26 of the EnvironmentalProtection Act states: "All constructionprojects must include pollution control facilities designed, constructed and implementedsimultaneously with the main project. Constructionprojects will be authorized only once the pollution control ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 18 facilities have been approved by the environmental protection administrative department which originally approved the environmental impact assessment." It is further stated that: "Pollution control facilities may not be demolished or abandoned without authorization, and authorization by the local environmental protection administrative department must be sought if the need arises."

Article 36 stipulates: "If a construction project does not include pollution control facilities, or implements these at below national standards, the environmental protection administrative department which cleared the environmental impact assessment must halt operations and impose a fine."

To better implement this approach, the State Council, the State Planning Commission and the State Economic Commission EPC jointly issued the Administrative Measures for Environmental Control for Construction Projects, detailing requirements for the design, construction and operations stages of construction projects, and the specific responsibilities of EPBs, construction departments and construction units. Based on these Administrative Measures, the Beijing Municipal Planning Commission, the Beijing Economic Commission and BMEPB issued the Detailed Rules for Implementation in Beijing Municipality of the "Administrative Measures for the Environmental Protection of Construction Projects" specifying the requirements for construction projects in Beijing and the penalties for violations of the Administrative Measures or the Detailed Rules for Implementation.

Implementation

As provided in the Administrative Measures, the EPBs supervise construction projects over their various stages (Table 4-1). MANAGEMENTOF CONSTRUCTIONPROJECTS

STAGE CONSTRUCTIONUNIT ENVIRONMENTALAUTHORITY

Proposal Submit proposal_ Attend proposal review

Feasibility Submit EnvironmentalImpact Report; Review and approve EnvironmentalImpact Study submit FeasibilityStudy Report Report, FeasibiLityStudy Report

Design Prepare design Review design for environmentalsoundness

Construction Superviseconstruction of pollution |______.control_ facilities

Testing & Prepare report on environmental Supervise implementationof pollution Acceptance facilities control facilities;review and approve .______control facilitiesreport

Operations Strengthen pollutioncontrol Supervisepollution zontrol operations management

TABLE4-1

Planning, land administration, capital construction, renovation, banking, materials supply, and industrial and commercial administration departments must incorporate the San Tong Shi approach into their programs. If a construction project is not approved by the EPB, the 19 ENVIRONMENTALMANAGEMENT APPROACHES planning department may not approve the design assignment and feasibility study reports, the land department may not issue a constructioncertificate and the materials supply department is not to supply materials or equipment. Any project lacking an environmentalprotection facilities acceptancecertificate will not be issued an operating certificate.

Projects starting constructionlacking an approvedEIA or other EPB clearance will be subject to penalties, as will project management,and either a deadline for meeting standardswill be issued or construction will be halted. Unauthorizedprojects causing pollution will be subject to further liabilities.

Implementationof the San Tong Shi approach has led to the developmentof construction managementprocedures for municipal, district and county EPBs, balancing the amount of the investment,potential impact on the environmentand the sensitivityof the project location.

Results

BMEPB annually reviews the past year's projects' incorporationof the San Tong Shi approach. Of 1,325 projects approved by BMEPC since 1985, over 90 percent have implementedthis approach (Table 4-2). Of the 4,977 projects approved by district or county EPBs, some Y26 million has been invested in pollution control, or 2.2 percent of the total amount invested, controllingwhat might have been nearly 5,000 new pollution sources. IMPLEMENTATIONOF SAN TONG SHI IN BEIJINGCONSTRUCTION PROJECTS (1981-1 990)

YEAR PROJECTS PROJECTS INSPECTED LARGE/MEDIUMPROJECTS CLEARED BY BMEPB NUMBER NUMBER PERCENT NUMBER NUMBER PERCENT -INSPECTED COMPLYING INSPECTED COMPLYING

1981 86 21 13 67.0 3 2 66.7

1982 70 38 26 68.4 12 12 100.0

1983 89 84 75 89.4 7 6 89.0

1984 169 64 57 89.0 7 7 100.0

1985 143 87 80 92.0 7 7 100.0

1986 289 151 146 96.7 27 26 96.3

1987 306 102 97 95.1 19 19 100.0

1988 296 116 106 94.0 25 25 100.0

1989 171 95 93 97.9 21 21 100.0

1990 120 79 71 89.9 23 23 100.0|

TOTAL 1721 837 764 91.3 151 146 96.7

TABLE 4-2

The San Tong Shi approach has led to a number of innovative solutions to pollution problems, through technical renovation, new processes or technologiesand replacement of ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 20

old equipment. For example, Yanshan Petro-Chemical Corporation, while expanding their phenol acetone production facilities, invested over Y40 million in doubling wastewater treatment capacity, and over Y8 million in an industrial waste landfill, solving their wastewater and solid waste problems.

ENVIRONMENTAL IMPACT ASSESSMENTS

The environmental impact assessment (EIA) approach evaluates a project's potential environmental impacts, in order to control new pollution and prevent possible environmental problems caused by plant location, layout, processing techniques or project treatment facilities.

The Legal Foundation

China initiated environmental assessment in the 1970s during a regional comprehensive water system assessment for Beijing's western and southeastern suburbs and Guanting drainage. An environmental quality report was first prepared in 1980, exploring the method of assessment and measurement models and establishing a model for more general application of environmental assessment.

The Environmental Protection Act (1979) stipulated in Article 6 that: "All enterprises and institutions must attempt to prevent pollution through plant location, design, construction or production, and must submit to the environmental protection authority and other relevant departments for approval an environmental impact assessment for all new construction, expansion or renovation projects." Article 7 further stipulated: "Environmental impact assessments should be done for all industrial areas, residential areas, public utilities and reforestation zones in existing cities being renovated and new cities being constructed, paying attention to meteorological, geographical, hydrological and ecological conditions."

The Environmental Protection Act (1989) further specified that "Projects must obey national provisions regarding environmental protection management. Construction project environmental impact assessments must assess the potential pollution and other environmental impacts resulting from the project, and outline for review by the pertinent environmental administrative department prevention and mitigation measures in accordance with recognized procedures before applying for approval by the pertinent administrative department. The planning department may only approve the project design report upon approval of the environmental impact assessment." This clarified the requirements and procedures for an EIA.

To better implement this approach, the State Construction Commission, the State Planning Commission, the State Economic Commission and other departments issued a series of laws detailing how these principles were to be implemented.

Beijing was the first city in China to implement this approach. Based on the Environmental Protection Act (1979) BMG issued the Approval Procedures for Environmental Impact 21 ENVIRONMENTALMANAGEMENT APPROACHES

Assessmentof ConstructionProjects (1980), specifyingthe EIA form to be prepared for various types of constructionprojects. In response to The State Council's Administrative Measures on EnvironmentalProtection of ConstructionProjects, BMG issued the Detailed Rules for Implementationin Beijing Municipalityof the "AdministrativeMeasures on EnvironmentalProtection of ConstructionProjects", specifyingthe responsibilitiesof municipal-, district- and county-levelenvironmental authorities, reaffirming the construction projects location principle and specifyingthe penalties for violators.

Implementation

As required by the AdministrativeMeasures on EnvironmentalProtection of Construction Projects, all constructionprojects in Beijing involving industry, communications,water conservation, agriculture and forestry, commerce, health, culture, education, scientific research, tourism, public works, technical renovation projects, regional development projects, or natural resource developmentmust satisfy EIA requirements. Large and medium-sizedprojects must prepare an EIA; smaller projects with potentially severe environmentalimpacts (constructionin urban and suburban districts and towns, dense residential areas, nature preserve areas, water source protection areas, tourist attractions, prominent cultural property) also must prepare an EIA. Small projects and large constructionprojects considered by the environmentalprotection authorities to pose a minimal environmentalrisk need only fill in the environmentalimpact form.

The EIA addresses four topics: overview of the proposed project; the existing environment around the construction site; potential short- and long-term impacts of the project; prevention and mitigation measures. For projects associatedwith the chemical industry, metallurgy, medicine, building materials, power or petro-chemicals,which have serious potential environmentalimpacts, an EIA should be submittedbefore the preparation of the project proposal; for componentsof regional developmentprojects the EIA should be filed no later than the identificationstage; for all other projects the EIA should be prepared before the feasibility study.

The general constructionprojects EIA form must be filed with the responsible departmentfor evaluationbefore applying to the environmentalauthority at that same level for approval. NEPA approves cross-provinceconstruction projects with extraordinaryaspects, while the State Council approves other large constructionprojects. The environmentalauthority generally replies within two months of receiving the EIA; if the authority fails to respond by this time it is considered to have approved the project. If the project changes in nature, location or magnitudethe EIA must be amended and refiled for approval according to these procedures.

To ensure EIA quality, NEPA issued the AdministrativeMeasures on the Certificate of EnvironmentalImpact Assessmentfor ConstructionProjects (1987), establishingstandards for the professional and technical skills of the organization reviewing these assessments. At present, 43 organizationshave been issued the Grade A Certificate, entitling them to do environmentalassessments throughout China, while 8 organizationshave obtained the BMEPB Grade B Certificate, allowing them to do environmentalassessments in Beijing. ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 22

Results

Since the implementation of the EIA approach, BMG has examined and approved 1,891 EIAs. This approach has enabled projects like the Beijing Coal Gas Plant and the Beijing Cement Planl: and Solid Waste Landfill to evaluate potential environmental impacts on the surrounding areas and find better locations. This process has also checked the construction of certain projects that might have harmed drinking water sources, and blocked projects that would have been public nuisances in tourist and cultural property areas and high-density residential areas.

The EIA approach has also helped develop environmental protection awareness, insight and management capacity in the development, construction and management sectors.

The San Tong Shi and EIA approaches are closely related, have played a significant role in the control of new pollution sources and have shaped an effective environmental protection approach to construction projects. However, these procedures emphasize only controlling new pollution sources while existing pollution sources were only addressed through control of single effluents, which is uneconomic and ineffective. In addition, a lack of baseline data and little history of assessment limited the guidance provided by EIA review. These approaches should be closely integrated with excess pollution discharge fees, pollution discharge permits, centralized pollution control, deadlines for pollution source control, and aggregate and centralized control to control old and new pollution sources and achieve uniform economic, social and environmental results.

EXCESS POLLUTION DISCHARGE FEES

The excess pollution discharge fee is an economic measure imposed on pollution-emitting organizations, who pay these rates in compensation for damage to the environment. This approach aims at motivating better environmental management by enterprises and institutions and providing some subsidies to help control pollution and improve the environment.

The Legal Foundation

The excess pollution discharge fee, based on the "polluter pays" principle, is a penalty assessed on the emission, beyond a legal limit, of various pollutants, wastewater, waste gases, solid waste, noise, or radioactive pollutants. These fees are then used to subsidize pollution control at the source.

The Environmental Protection Act (1979) stipulates in Article 18 that "Pollution discharge fees shall be imposed on pollution discharges in excess of the standard set by the state, according to the quantity and density of the pollution emitted." This legally established the excess pollution discharge fee. Laws extending this provision to water, ocean and air pollution followed.

The Environmental Protection Act (1989) stipulates in Article 28 that "Enterprises and 23 ENVIRONMENTALMANAGEMENT APPROACHES institutionsemitting pollution in excess of national or local standardsshall pay excess pollution discharge fees according to national regulations and be responsiblefor their control. Excess pollution discharge fees imposed shall be used to prevent or control pollution and may not be appropriated for other purposes. Detailed measures for the implementationof this will be provided by the State Council."

In 1982, the State Council promulgated the ProvisionalMeasures on the Levy of Pollution Discharge, specifyingthe purpose, amounts, managementand application of the excess pollution discharge fees. The State Council subsequentlyissued The ProvisionalMeasures on the Non-gratuitousUse of the Special-purposeFund for Pollution Source Control, controlling the use of these fees.

Based on these national laws and regulations,BMG drafted measures on the local use of these pollution discharge fees, the control of water and air pollution, and other laws and regulations on discharge standards for ambient air and water pollutants, which, after further improvementsand modifications, gave shape to a comprehensiveexcess pollution discharge approach.

Implementation

BMEPBis responsiblefor the collection and use of excess pollution discharge fees within Beijing. District and county EPBs assess discharge fees for enterprises and institutionsunder their jurisdiction. All districts and counties have establishedpollution discharge supervision stations, employingover 200 people, or half of the district/countyEPB management personnel.

Based on these provisions, BMG assesses excess pollution discharge fees on 10 pollutants, particularly wastewater, waste gases (includingindustrial gas, boiler dust and automobile exhaust), waste residues and noise. Fees collected are categorized into two types, charges and penalties. As defined in the applicablelaws and regulations, charges are part of production expenses and may be amortized in productioncosts, but penalties may not. Penalties include surcharges for excess pollution discharges for three consecutiveyears, fines and doubled fees for violations of the law, and late fees for pollution discharge fees in arrears.

The calculationof excess pollution discharge fees follows these procedures:

* Polluting units report, or district or county EPBs monitor, pollution dischargesand their concentrations.

* District or county EPBs review the monitoringdata and issue a bill accordingto BMEPB formulas.

* Polluting units, on receipt of the bill, pay BMEPB. Enterprises disputing the assessed amount may appeal for reconsideration. ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 24

* BMEPB submits the collected revenue to the municipalor district finance bureaus, dependingwhether the enterprise is under the jurisdiction of the municipal or district government.

At present, BMG practices the single factor rate; that is, when more than one pollutant is released in one emission, pollution discharge fees are assessed based on the pollution subject to the highest charges.

Excess pollution discharge fees collected are submittedto the municipal, district or county finance bureau, to be put into their environmentalprotection fund. These funds are managed by the municipal, district- and county-levelEPBs and are budgeted for special uses.

According to excess pollution discharge regulations, 80 percent of fees collected should be used to subsidizepollution source control by the polluting units. The fund use plan is forwarded to BMEPB from the polluting unit's head corporation or other authorities at this level. BMEPBnormally disburses from these funds twice a year.

Since the issuance in 1989 of measures specifyingthat these funds be applied to pollution control at the source, 60 percent of collected pollution discharge fees have been used as pollution control appropriations, 20 percent as loans and the remainder of this and other revenues from penalties have been applied to integrated urban environmentalcontrol and developmentof environmentalprotection institutions, such as equipmentpurchase, public relations campaigns and education. These plans are developedby BMEPB, approved by the Municipal Finance Bureau and supervisedby the ConstructionBank.

Results

Since the provisional imposition in 1981 of the excess pollution discharge fee, and its full implementationin 1982, BMG has collected Y237 million from units under its jurisdiction, of which Y20.66 million was derived from penalties (Table 4-3). In recent years, BMG has collected these fees from approximately3,000 pollutant-emittingunits, bringing in annual revenues of over Y30 million.

The excess pollution discharge fee is an effective measure to promote the control of pollution sources. In the case of the excess noise pollution fee, before these fees were imposed most industries did not bother to control noise, but after fines began to be imposed paid more attention to noise and developed control technologiesand equipment. From 1984 to 1990, BMG collected Y8.45 million in excess noise pollution fees, while contributing Y9.2 million in subsidies for the control of 410 noise pollution sources. Between 1985 and 1990, noise pollution fees collected declined by 22 percent, subsidies and investmentin noise control dropped by 62 percent, and the percent of public complaintsabout excess noise reduced from 50 percent to 47 percent.

These fees are a reliable source of funds for pollution control. Since the adoption of these rates BMG has collected a subsidized environmentalprotection fund totalling Y192 million, has lent Y10.25 million, and has helped finance over 3,000 pollution control projects, about 25 ENVIRONMENTALMANAGEMENT APPROACHES

THE COLLECTIONAND USE OF DISCHARGEFEES AND FINESIN BEIJING (1981-1990)

YEAR NUMBEROF CHARGESAND FINES SUBSIDIES ENTERPRISES FINES (1,000 (1,000 YUAN) l CHARGEDAND COLLECTED YUAN) FINED (1,000 TOTAL POLLUTION COMPREHENSIVEPROCUREMENT OTHERS YUAN) SOURCES CONTROL OF MONITORING l______CONTROL INSTRUMENTS 1981 893 6940 3210 1490 70 1650 1982 694 10990 20 7340 3290 860 80 3110 1983 386 10650 36 7670 6460 240 810 160 1984 1212 17040 436 12130 8420 1480 900 1330l 1985 2136 17440 1107 16810 13710 580 840 1680 1986 2337 27400 3000 18170 13690 1150 1440 1890 1987 2528 35790 3020 30480 22550 3210 2740 1980 1988 2607 41150 3200 40020 28330 1760 1860 8070 1989 4034 35820 4880 26330 19900 1450 970 4010 1990 3276 33800 4760 29640 18280 3880 1200 6280 TOTAL 237020 20459 191800 135880 14610 10910 30160

TABLE 4-3

25 percent of the aggregate investment.

One example was the ShijingshanPower Plant, which chronicallydischarged ashes into the Yongding River, seriously silting up the river course and incurring annual pollution discharge fees of over Y1 million. The plant invested over Y20 million in a project to reuse coal powder and ashes; Y16 million of this was provided from the excess pollutants discharge fee fund. The project, when completed, is expected to reduce discharges into the river by 10,000 tons of ash a year, saving Y3 million worth of water conservationexpenses.

These fees have also facilitated regional integrated environmentalcontrol, providing subsidies totalling Y22.62 million. Twenty-fivelow-noise residentialareas have been designated, bringing dust control coverage in Beijing close to 100 percent. Y32 million was spent on environmentalprotection basics, such as equipment, instrumentsand vehicles, which strengthenedmonitoring and improved environmentalmanagement.

These fees, coupled with the deadline control, San Tong Shi and EIA approaches have promoted environmentalmanagement and pollution source control in industrial enterprises. Unfortunately, these revenues collected do not meet pollution control facilities' operational expenses, much less pay for the pollution they are supposed to mitigate. Furthermore, some enterprise managers believe that paying the discharge rates gives them a right to dump wastes, and do not adopt measures on their own initiative to control pollution.

DEADLINE CONTROL ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 26

The deadline control approach controls outstanding pollution sources by ordering reduced emissions of a certain pollutant according to a fixed timetable, mandating the application of existing resources and abilities to a prominent environmental problem.

The Legal Foundation

Deadline control was first initiated in the early 1970s, when several state proclamations announced deadlines for the control of several major pollution sources. The Environmental Protection Act (1979) stipulates "No polluting enterprises or institutions may be established in or near urban residential areas, water source protection areas, prominent cultural relics, sightseeing :Locations,thermal bath spa areas or natural protection areas. Enterprises already established in these areas must be controlled, modified or relocated within a time period prescribed by the relevant authority." This was the legal origin of the timetable pollution control approach.

The Environmental Protection Act (1989) stipulates in Article 29 that "Seriously polluting enterprises and institutions should initiate pollution control within a prescribed time period. The period within which the enterprise or institution must control its facilities will be determined by the governments of provinces, autonomous regions or municipalities under the direct leadership of the State Council. Enterprises and institutions that have been issued a timetable for pollution control must complete this exercise according to the schedule."

It is further stipulated in Article 39 that "Enterprises and institutions that have been assigned a time limit for pollution control but fail to accomplish this work in due time will be charged excess pollution discharge fees, and may be subject to other penalties, work stoppage or termination of operations, according to the severity of the ensuing pollution. Penalties shall be assessed by the pertinent environmental protection administrative department; work stoppage will be ordered by the government who imposed the original deadline; work stoppages or termination of operations in enterprises and institutions under direct State Council jurisdiction shall be decided by the State Council." This further detailed the jurisdiction over and liabilities for units failing to comply with deadlines.

Implementation

The deadline approach establishes a timetable for pollution control, formulating and issuing the control plan, supervising its implementation and associated procedures (Figure 4-1).

Deadline control projects are identified in accordance with environmental objectives in the government's long- and medium-term environmental protection plan, protection priorities and the severity of the disturbance. District and county governments assign deadline control tasks to enterprises and institutions under their jurisdiction, and to smaller organizations under BMG jurisdiction. Corporation head offices may also assign deadline control requirements to polluting units under their command. In addition, the national government may impose deadline control plans independent of municipal plans on severely polluting enterprises. Municipal deadline control projects are often filed by polluting units themselves. 27 ENVIRONMENTALMANAGEMENT APPROACHES

DEADLINEPOLLUTION CONTROL PROCEDURES

PREPARATION INVESTIGATION ENVIRONMENTAL STAGE & PROTECTION EMALUATION PLANNING

RESIDENTSION REGIONAL IC E EYIPG COORDINATION INCESTIGATION E CIRONMENTALB DEADLI E _ & ASSESSMENT PROJECTS FINALIZATION POLLUTION __ SWtRCE INSESTIGATION

TECHNICAL A TECHNICAL I SIRCES LIST OF DEADLINE I ECONOMIC | PROGRAMS OFFUNDS TREATMENT PROJECTS STUDIES M

IMPLEMENTATION GOVERNMENT FORMULATING ESTABLISHINGCHAIN OF STAGE DECISION ON ECONOMIC & RESPONSIBILITY, DEADLINE SOCIAL SIGNING CONTRACTS E TREATMENT DEVELOPMENT PROGRAMSl

|ADJUSTMENTOF PRIONF |TREATMENT PR(JC ||IPLEMENTATION|

ACCEPTANCE COMLTO LEARANCEBY FORMAL ACCEPTANCE STAGE REPORT | PERTINENT BY ENVIRONMENTAL i DEPARTMENT PROTECTION DEPARTMENTS

-TIMING| AWARDS/ E~~~~~FFECTS |PENALTIES| UALITYl

FIGURE 4-1

These projects are then submittedto the relevant state commission,office, municipal environmentalprotection authority or other related commissionor office for review before drafting the deadline control program. The appropriate municipal commission or office, in association with BMEPB, issues deadline control requirements for seriously polluting units. The draft timetableis finalized after consultationwith associated sectors, adopted during municipalenvironmental protection meetings and filed with BMG for formal approval and implementation.

The deadlineplan specifies the targeted wastes, organizationsresponsible, assessment indices and time limit for completing the control project. The timetable is generally within three years, allowing time for disruptions to the program.

Funds for these projects are chronically short, so BMEPB,jointly with the Municipal Planning Commission, the MunicipalEconomic Commissionand the Municipal Finance Bureau developedpreferential relocation policies, which authorize polluting enterprises during the deadline period to relocate facilities to less ecologically sensitive locations and raise funds through tax exemptionsand loans at preferential interest rates. Excess pollution ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 28

discharge fees also provide some subsidies for deadlinecontrol projects.

In order to ensure the completionof deadline control projects on schedule, BMEPB, related commissionsand offices and the district and county governments,review project progress at midyear, advise on emergingproblems and clear the projects at year end. Awards may be granted to enterprises performing well, while penalties, reinforced deadline control requirements, or operations may be halted at units not complying.

Results

Since the implementationof the deadline control approach, China has issued two national deadline control programs. The first was assigned in October 1978, imposing deadlineson 277 serious pollution sources within 167 enterprises, in the metallurgy, petroleum, light industry, textile, and building materials industries, intended to reduce mercury, cadmium, chromium, cyanogen, phenol and other hazardous wastes. The second was issued in January 1990, for 140 state projects.

BMG began to issue deadline control plans in the 1970s, targeting a number of polluted water systems, important sectors and major hazardous substances. In the past decade, 6,800 deadline control projects have been completed, 216 factories or workshops modified or relocated to reduce pollution or other public nuisances, and 27 units penalized for failing to comply with the timetable (Table 4-4). Efforts have also been made to introduce advanced processing techniques and technologies, improved industrial structural adjustmentand layouts and integrated utilization of industrial pollution (Table 4-5). ENTERPRISEPOLLUTION CONTROL AND RELOCATIONIN BEIJING (1981-1 990) ITEM 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 TOTAL TREATMENT 861 540 606 765 737 1283 964 803 705 700 7964 PROJECTS COMPLETED 543 364 353 742 618 1009 961 813 736 750 6889 PROJECTS I_II_II _ RELOCATED 39 19 20 43 35 15 12 14 10 9 216 FACILITIES _ TABLE 4-4

COMPREHENSIVEUTILIZATION OF WASTE (CUW) IN BEIJING _(1981-1990)

[ ITEM 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 TOTAL PRODUCT 77840 46990 23600 180290 51460 37750 52820 153130 130150 131320 885350 OUTPUTVALUE FROM CUW l PROFITFROM 11720 11650 9270 14880 12870 13060 19820 30430 45510 40070 209801

TABLE 4-5

In recent years, 475 electroplatingsites, 110 thermal treatment sites and 143 metal casting 29 ENVIRONMENTALMANAGEMENT APPROACHES sites have been modified to control various pollution and public-nuisanceproblems. One example is the Beijing No. 2 Chemical Plant, which switched to polyvinyl chloride as its raw material and initiated a polyethylenemonomer recovery project, not only recovering over 200 tons of polyethylenemonomer, resulting in an over Y2 million improvementin product quality, but also solving a serious pollution problem.

BMG assigns deadline control plans to control prominent environmentalproblems. In 1987, pollution sources near drinking water protection areas were assigned three-year plans to control or relocate 120 pollution sources affectingthese reservoirs. Similarly, to prepare for the 11th Asian Games in 1990, BMG assigned deadline control plans to 7,893 pollution sources near the 38 exhibitionand practice gymnasiumsand around Beijing's major roads. In addition to the timely completionof these projects, 4,225 projects not included in this plan were completed, ensuring cleaner air, better water quality and an improved environment during the Asian Games.

A thorough investigationof the pollution being discharged, public opinion regarding the source and the available technology,capital and equipmentis needed to develop a timely and effective control plan, which must consider both the severity of the pollution and the availabilityof financial and technical capabilities. Stringent enforcementof these deadlines is the guarantee of its implementation. Once a deadlinecontrol plan is assigned, regular supervision is needed to address emergingproblems.

POLLUTION DISCHARGEREGISTRATION AND PERMITTING

The pollution discharge registrationand permit approach is a measure designed to limit the total quantity of pollution discharged to within a region or river system's carrying capacity.

The Legal Foundation

Rapid economic, urban and rural developmentis leading to pollution loads greater than those manageableby simple concentrationcontrol. This necessitatestotal quantity control, limiting pollution discharges to within the carrying capacity of the local environment.

The EnvironmentalProtection Act (1989) stipulatesin Article 27: "Pollution-emitting enterprises and institutions must register with the local environmentalauthority, in accordance with State Council provisions." The Water Pollution Prevention and Control Act of the People's Republic of China stipulatesin Article 14: "Enterprises and institutions which directly or indirectly emit pollution into water bodies must, as required by the State Council EnvironmentalProtection Commission, register with the local environmental protection authority their pollution-emittingand treatment facilities and varieties, quantity and concentration of pollutionsemitted under normal conditions, and specify their program for water pollution prevention or control."

The Water Pollution Prevention and Control Act also specifies: "Enterprises and institutions emitting pollution into water bodies must submit a Pollution Discharge Registration Form to ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 30

the local environmentalprotection authority, which, after receipt and examinationof the facility, will issue a pollution discharge permit." This was the legal foundationfor the pollution discharge filing, registration and permit approach.

BMG has formulated, based on state laws, regulations to prevent and control ambient air and water pollution, detailing the implementationof the pollution discharge registration and permit approach for pollution-dischargingunits.

Implementation

BMG experience suggeststhis approach breaks down into five stages:

(a) Preparation: studying the relevant laws and regulations, formulating specific nmanagementmeasures, studying policies and preparing organizations, policies, laws and regulations.

(b) Registration: filing by pollutant-emittingunits to create a database and identify the discharge aggregate.

(c) Discharge Application, Planningand Distribution: identifyinga region's function and drainage; establishingprotection objectives and a control program; distributing the pollution load between the units; and filing the application for a pollution discharge permit.

(d) Assessmentand Permitting: assessingthe polluting units; determining the program and type of permit; and approving and issuing the pollution discharge permit.

(e) Supervisionand Management: establishinga network to monitor discharges through assessment, samplingand monthly and quarterly reports (Figure 4-2).

BMG studied the pollution discharge registrationand permit approach in three sectors: i) total quantity control of discharges into river systems; ii) water pollution discharge permits for selected industries; and iii) total quantity control of ambient air pollution discharge in selected localities.

Discharge permit experimentswere conductedin March 1988 on the First Light Industrial Corporation, the Chemical Industrial Corporationand the Textile Industrial Corporation, to control COD [Annex n].These industries, accountingfor 64 percent of Beijing's COD discharges, were identified from the 1987 experiment (Tables 4-6, 4-7 and 4-8). These enterprises registered their procedures and the distribution of discharges, control targets and reduction indices for the three industries were assessed. Temporary pollution discharge permits were issued to these enterprises in December 1989.

In 1989 BMG conductedexperiments in total pollution quantity control permits, following a 1987 study of pollution discharge in the Shanxia section of the Yongding River, an important 31 ENVIRONMENTALMANAGEMENT APPROACHES

Pollutant DischargePermit Procedure

Studyingand PubLicizing(Regulations) Organizingthe Implementation Preparation Stage Management,Amount Standard RevisingMeasures and AmountLevies Specifying and Policies Targets PolicyResearch & Coordination & Plans Form-filling(terms of Reference, fillingform & Statement) Filing& Consolidationof Data& Registration Establishmentof Database DynamicSupervising Stage AmountDischarge Measurement Masteringthe Regulationof DividingFunctionaL Areas Pollutants (Drainage& Region) Discharge EstablishingProtection Objectives Quantitative Assessment (DrinkingWater Source,etc) Approch& GoaL Discharge IntegratedControl Programs AppLication (Integration,Planning& Reduction ResponsibilityApproach Planning& Measures) CentralizedControl Distribution DistributingPollutants Discharge Stage Amount(Envirorinmental Evaluation, "Three-simultaneous",Deadline Control,Standard,Aggregate Loading Indices) Application (form-fiLLing) for Pollutants Discharge Permit Review & issu Permit Examination (Copy) Deadline Treatment Determining the Variety of Permit and Programs for Permitting Issue Discharge Permit(form-filling) Issuing Supervising & Management Pollutants onitoring and ControL Network Discharge (Self-examination,MutuaL Monthty,Quarterly Permit Examination & Samplesurvey) Report & Expresses -Consolidated Summary Supervising and ManagementStage Awards Summary& Improvement Monitoring I Information & Management| feedback

FIGURE4-2 water source for enterprises and householdson the river bank from the Guanting Reservoir to Beijing. The experimentaimed to control COD and SS, by requiring that 15 pollution- emitting units, responsible for 33.5 percent of area discharges, register for assessment. The pollution load was distributed between the enterprises and pollutant reduction targets identifiedbased on enterprise specifics, pollution distribution and available processing techniques, technologiesand management.

A pilot experiment on total quantity control of ambient air pollutants in the Shijingshan District is being implemented. ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 32

POLLUTANTDISCHARGE PERMIT PROCEDURES OF BMG

POLLUTANTSDISCHARGE PERMIT REGISTRATION|

MARCH- JANUARY- AUGUST- DECEMBER JANUARY- JANUARY- DECEMBER JULY NOVEMBER 1989-- DECEMBER APRIL 1988-- 1989-- 1989-- REVIEW& 1990-- 1991-- PREPARATION FILING L PLANNING& PERMIT SUPERVISION ACCEPTANCE STAGE REGISTRATION DISTRIBUTION ISSUED

[, ? . _ BM~~~~~~~~~~~~~SEPBSURVEY PERSONNEL PRODUCTION MUNICIPALITIES' CORPOR-SUMMARY TRAINING PROCESS PLANNING& ATION MGMT. , _ ~~ANALYSIS CONTROL ASS- APPROACH| DATA- l ~~~~~~~~OBJECTIVESMENHT BASE

DRAFTING r TERMSOF RESEARCH REFERENCE DISCHARGE CONTROL BMEPB STUDIES Z _ ~~REGULATIONS| |OBJECTIVES FOR |[SUS l l | ' | ~~~~~~THETHREEPILOT PEMTl j ' 0 | ~~~~~~~ENTERPRIS,'', ' ll ||ESTABLISHING |, § , l EXPERIMENTs WATER MUNICIPAL DISTRICT/ DISTRICT/ IN POLLUTANTS GOERNMENT| |CONTY COUNTY INDUSTRIES PRODUCTION REIE EPBS ENV. l , , . l l l | 0 ~~~~~~~~~~~~~~SUPER.l

1 1 1 , | | ~~~~~~IDENTIFICATION STATION ESTABLISHING COMPARISON OF THE PILOT WITHIN THE PERMISSIBLE ENTERPRISES INDUSTRY DISCHARGEFOR ENTERPRISES | |& CONTROL ll '||THE PILOT . PROJECTS ENTERPRISES& l l , , ' -, | | ~~THEIRCONTROL i g ~~~~~REDUCTIONOBJECTIVES | FIGURE 4-3MEASURES

| | ~~~~PLANNING&ll i | ~~~~DISTRIBUTIONll

Since the Shanxia pollution discharge permit experiment, efforts have been made to improve laws and regulations. The district governmentscompiled ManagementMeasures on the Water PollutantsDischarge Permit in the Shanxia Section of Yongding River, and enterprises developed managementand monitoringprovisions, modified the rules and regulations, establisheda monitoringnetwork, installedflowmeters and adopted other monitoring measures, such as deadline pollution source control and double-factorfees. COD discharges dropped from 723.5 tons in 1987 to 353 tons in 1990 (-51 percent), and SS discharges diminshed from 2,160 tons in 1987 to 940 tons in 1990 (-56.5 percent), strongly controlling 33 ENVIRONMENTALMANAGEMENT APPROACHES

TOTAL VOLUMECONTROL TARGETS FOR THE BEIJINGTEXTILE INDUSTRIAL CORPORATION

Item Unit 1988 1990 1995 l______(projected) WastewaterDischarged 1000Tons 32400 34000 37000 COD DischargeAmount Tons 7500 6800 5900 Dischargesper Output Kg/1000Yuan 259 240 183

Rate of Reduction .. -9% -21% TABLE 4-6

TOTAL VOLUME CONTROLTARGETS FOR THE BEIJINGFIRST LIGHT INDUSTRIAL CORPORATION

Item Unit 1988 1990 1995 l______(projected) WastewaterDischarged 1000Tons 35600 36000 36000 COD DischargeAmount Tons 39000 36669 27669 Dischargesper Output Kg/1000Yuan 2250 1830 960

Rate of Reduction -6% -29% TABLE 4-T

TOTAL VOLUME CONTROLTARGETS FOR THE BEIJINGCHEMICAL INDUSTRIAL CORPORATION

Item Unit 1988 1990 1995 l ______(projected)t______WastewaterDischarges 1000Tons 49890 50120 51500 COD Discharge Amount Tons 17500 17100 14734 Dischargesper Output Kg/1000Yuan 665 650 366

Rate of Reduction -2.3% -15.8% TABLE 4-8 the discharge of pollutants in the area. Coupled with measures such as sewer interception, water quality in the Shanxia section measurably improved.

The implementationof total quantity control enhanced the participating enterprises' pollution control capacity. Since the introductionof the pollution discharge permit approach, average output values increased by 1.9 percent while COD discharges declinedby 8.16 percent, a reduction of 5,150 tons over 1988-1990(Table 4-9). The Beijing Chemical Industry Corporationcontinued growing, yet pollution output stabilized and began to decrease. During 1985-1988,output value increased from Y2.06 billion to Y2.6 billion (+26.2 percent), while COD discharge increased from 16,500 tons to 17,500 tons (+6 percent). During 1988-1990, after the introductionof total quantity control, output value increased from Y2.6 billion to Y2.75 billion (+5.7 percent) while COD discharge declined from ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 34

17,500 tons to 16,500 (-5.7 percent) tons (Table 4-10). INDUSTRIALOUTPUT VALUE VERSUSCOD DISCHARGESFOR THE FIRSTLIGHT INDUSTRY, CHEMICALINDUSTRY AND TEXTILEINDUSTRY CORPORATIONS (1985-1995)

YEAR OUTPUTVALUE ACTUALDISCHARGES PROJECTEDDISCHARGES (,000,000YUAN) (,O00 TONS) (,O00 TONS) 1985 5970 71.4 1986 6440 68.8 1987 6910 66.2 1988 7390 63.7 64.0 1989 7550 60.8 62.2 1990 7530 58.8 60.4 1991 8004 59.2 (projected) 1992 8478 58.1 1993 8952 56.9 1994 9426 55.7 1995 9900 54.6 TABLE 4-9

TOTAL QUANTITY CONTROLOF COD DISCHARGE--THEBEIJING CHEMICAL INDUSTRY CORPORATION(1980-1995)

YEAR OUTPUT VALUE WASTEWATER DISCHARGES/ (,OOO,OODYUAN) 10,000 YUAN OUTPUT VALUE 1980 1600 8800 1981 1692 10340 1982 1784 11880 1983 1876 13420 1984 1968 14960

1985 2060 16500 1986 2254 16833 1987 2448 17166 1988 2642 17500 1989 2836 17200 1990 3030 16500 1991 (projected) 3224 16146 1992 3418 15793 1993 3612 15440 1994 3806 15086 1995 4004 14734 TABLE4-1107

The pollution discharge permit approach is intended to encourage the more rational use of resources and energy and reduce consumptionof raw and subsidiary materials through plant 35 ENVIRONMENTALMANAGEMENT APPROACHES renovation, improved processing techniquesand change of product structure. For example, Beijing No. 2 Woolen Textile Plant, as part of the Beijing Textile Corporation's experiment invested Y1.5 million in upgrading wool washing techniquesand equipment, leading to the annual recovery of 172 tons of lanolin, worth nearly Yl million, the reduction of water consumptionfrom 327,000 tons per year to 54,000 tons (-83 percent) and COD concentration in the wool rinsewater dropping from 20,000 milligramper liter to 1,200 milligramsper liter (-94 percent). The plant's improved wastewatertreatment facilities have strongly controlled pollution and generated significant economicand environmentalresults.

The pollution discharge permit approach depends on accurate monitoring. Pollution reduction targets must consider both technicalpossibilities and economic results. The pollution discharge permit approach must be coupled with other approaches to promote pollution source managementand control. Further research is needed regarding the distribution of discharge quotas.

CENTRALIZEDPOLLUTION CONTROL

The centralizedpollution control approach was developed in recent years to collectively manage pollution sources, maximizingpollution control at a minimum cost, through the use of new technologiesand improved utilization of resources and energy.

The TheoreticalFoundation

Environmentalprotection experience suggeststhat control of individual pollution sources is often ineffective and improvementsare meager at best, even when a great amount of money is spent on facilities. Pollution is best controlled through rational planning, consolidating financial resources and adopting more advanced technologiesand industry standards.

Centralized control is relatively economical,collecting available human, material and financial resources, new technologies, processing techniquesand equipment into an integrated control plan. It encourages a more rational use of resources, energy and pollution control facilities and often enhances investment,equipment operation expenses, area covered and managementpersonnel, leading to distinct improvementsin environmentalquality.

Implementation

The implementationof a centralizedcontrol measure is complex, and must consider the nature of the pollutants and the availabilityor lack of environmentalinfrastructure, particularly sewage treatment sites, solid waste disposal sites, sewerage conduits, and and reforestation, so that centralized pollution control can be developed in coordination with urban and rural construction.

Centralized pollution control may take various forms appropriate to different pollutants. Centralized wastewater control, for example, may best be managed according to one of the following formats: ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 36

* joint treatment between enterprises; * joint treatmentof the same type of wastewater between similar factories; * centralizedtreatment for specialpollutants (e.g., effluents from electroplateor emulsion); or * centralizedtreatment at a municipal sewage treatment facility of wastewaterpre- treated by the factory.

Improved planning, modified industrial structures or layout, increased use of cleaner fuels, municipal or joint heating, dust control areas or reforestation may be useful in the centralized control of ambient air pollution. Domestic and industrial solid waste disposal sites, landfills, and hazardous waste disposal centers are crucial to centralized control of solid wastes. Designatedquiet zones and improved traffic flow helps control noise pollution.

BMG has long valued centralized control measures for preventing and controlling pollution, emphasizingthese in their annual, medium- and long-termpollution control plans. The Eighth Five-Year Plan, to be implementedin [year], includes central control measures such as constructingdomestic sewage treatment sites, solid waste disposal sites and municipal heating.

Results

Since 1984, BMG has promoted centralizedcontrol measures, particularly cleaner fuels and municipalheating, to prevent and control ambient air pollution. 85 percent of urban householdshave been fitted with gas and municipal heating has been installed in 50 million ni2 of floor space, leading to the eliminationof 1,817 boiler houses, 2,208 boilers, 1,639 chimneys and 25,717 household stoves. Within one year this saved 300,000 tons of coal and reduced emissions by 74,000 tons of dust and slag and over 5,700 tons of SO2(Table 4-11). Ambient air quality has also been improved through reforestation. CENTRALAND MUNICIPAL HEATINGIN BEIJING

Items 1984 1985 1986 1987 1988 1989 1990 Total

Thermal Central Heating (104mW) 877 39 59 125 204 156 150 1,610

District Heating (104m2) 650 335 170 155 314 401 2,205

Joint Heating (10'm2) 80 238 255 227 240 172 96 1,308

Heat Residue (0ler?) 46 14 47 107

Boiler Houses Eliminated 75 209 241 348 308 355 281 1,817

Cooking Stoves Eliminated 79 8,057 7,441 928 6,146 1,192 1,953 25,717 TABLE 4-1 1

Efforts have been made to control hospital wastes. In 1989, a multi-functionalincinerator with a processing capacity of 150 kilograms per hour was installed in a 500-bed hospital to incinerate the wastes of 9 nearby hospitals, not only reducing costs and saving energy, but using the incinerator to its fullest capacity and reducing pollution. 37 ENVIRONMENTALMANAGEMENT APPROACHES

BMG plans to construct a wastewatertreatment site and an industrialhazardous treatment center in an industrial district in an effort to centralize industrial pollution control.

The centralized control of pollutantsis an important cross-sectoralmeasure to solve urban environmentalproblems. It requires a sizable investment,but may have a significant impact on environmentalquality. BMG's role is to organize its implementation,arrange financing and coordinate efforts between all affected sectors.

ENTERPRISEEVALUATION

Environmentalevaluation has been recently introduced as a means to control pollution sources. Enterprises are not just evaluated on the basis of production rates and economic return, but also on environmentalindices, to improve environmentalmanagement and motivate sustainabledevelopment by enterprises.

The Legal Foundation

Industrial enterprise emissionsare a major pollution source. For years, enterprise assessment focussed only on profitability, with no indices of environmentalprotection, resulting in the enterprises' lop-sidedpursuit of money, ignoring environmentaland social matters. Many enterprises wasted resources and energy and emitted serious pollution.

To change this, the State Council stipulatedin Decisionon Further Intensificationof EnvironmentalProtection Performance (1990) that: "Environmentalprotection performance will be an important factor in evaluatingenterprises."

Based on this Decision, NEPA has identified environmentalindices to be used to rate enterprises, including targets for water pollution discharge, dust control, integrated solid waste utilization targets and noise. Several State Council industrial offices have also developed specific assessment indices and implementationrules, based on national regulations and the sector's level of advancement.

Based on these requirements, BMG stipulatesin Provisions of Beijing Municipality Regarding the Assessmentof EnvironmentalProtection Indices in Enterprise Rating that "enterprises will be assessed on environmentalprotection, payment of excess discharge fees, implementationof the San Tong Shi approach, integrated waste utilization and operation of pollution control facilities". BMG also stipulatesthat enterprises will be assessed on their control of wastewater discharges, dust emissions, noise, and industrial solid waste management.

Implementation

Enterprises must report to their managing environmentdepartments their initiatives to meet environmentalprotection indices. Enterprises will be rated Grade B if their environmental protection score is over 80, and Grade A if over 90. ENVIRONMENTALMANAGEMENT INSTITUTIONSAND ORGANIZATIONSIN BEIJING 38

BMEPB will order deadline control if enterprises previously graded A or B are found during verification not to be meeting set targets. Enterprises continuing not to meet targets within the deadline will lose their rating.

Results

This approach was developed and modified for implementation in 1991. A number of industrial enterprises have already improved their environmental management, and others are expected to further reduce pollution discharge and realize that economic, social and environmental goals are compatible.

ENVIRONMENTAL GOALS AND RESPONSIBILITY

All levels of government in China are judged on environmental conditions under their jurisdiction. The goal is to ingrain environmental concerns and leadership into all sectors and levels of government.

The Legal Foundation

China is increasingly insistent on environmental protection simultaneously with improvement of standards of living. Practice bears out that a conscientous effort by all levels of government is essential to improving the environment.

The Environmental Protection Act (1989) stipulates in Article 16 that: "Local governments will be responsible for environmental quality under their jurisdiction and must adopt measures to improve environmental quality." It further stipulates in Article 24 that: "Units emitting polluLtionor other public hazards must incorporate environmental considerations into their plans and establish an approach and adopt measures to prevent and control pollution and hazards such as waste gas, wastewater, waste residue, powder and dust, odorous gases, radioactive substances, noise, vibrations and electro-magnetic wave radiations from production and other activities." These provisions detail the environmental protection responsibilities of all government levels, sectors and units, fostering environmental protection through management from the top down.

Implementation

Environmental responsibility is implemented by responsibility contracts, detailing the desired goals and assessment measures to be applied. The contract is drafted by the municipal EPB in consultation with other related departments and specifies the various levels' responsibilities, the environmental protection goals, performance targets, work plans and other appropriate guidelines. The contract's goals and performance targets are drafted by the municipal EPB based on BMG environmental goals. Public environmental projects are formulated by various government offices, BMG bureaus, and corporations. The contract is reviewed by BMEPB and submitted to BMG for approval and assignment. The draft contract, afte:r review by the other departments, is finalized and adopted by BMEPC. 39 ENVIRONMENTALMANAGEMENT APPROACHES

Contracts between the district and the mayor or county executives, or between the BMEPC chairman and bureau chiefs or corporate managers are signed in formal ceremonies, underscoringthe environmentresponsibilities of all levels of government.

Examination,assessment and evaluationin accordancewith parameters establishedby the BMEPC General Office and other departments, is crucial to this approach. The BMEPC General Office at midyear reviews the executionof these contracts and notes persistent or emergingproblems. BMEPC also surveys district and county heads at the end of the year, and with the appropriate committees and offices assesses and grades the participatingbureaus and corporations. BMG and BMEPC award the "EnvironmentalProtection Winner" Cup or other honors to distinguisheddistricts, counties, bureaus and corporations, enlisting competitionin the cause of environmentalprotection.

Results

Since 1989, the mayor of Beijing has twice signed environmentalprotection responsibility contracts with all 18 district and county heads and the BMEPC Chairman, while the Beijing Executive Deputy Mayor has signed contracts with 56 bureau chiefs, corporate managers and Central Governmentand military managers in Beijing, incorporatingenvironmental responsibilityinto governmentaland departmentalagendas. The district and county heads in turn have signed contracts with neighborhood,village and township governmentsunder their jurisdiction, and bureau chiefs and corporate managers have signed contracts with responsible personnel in their local-level units. These contracts have changed environmentalprotection work from isolated efforts by environmentalprotection authorities to cooperative efforts and common responsibilitiesbetween all levels of the governmentand industrial departments.

In 1989, cooperationbetween districts, counties, bureaus and corporations, as detailed in these contracts, enabled integrated environmentalcontrol around the 38 exhibition and practice gymnasiumsand near Beijing's major roads during the 1990 Asian Games. Cooperationbetween all levels helped control over ten thousand pollution sources, significantlyreducing smoke, industrial smells, dust and auto emissionsand improving water quality.

The environmentalresponsibility approach depends on the earnest implementationof the contract. Practical and effective goals must be detailed, and specific assessment and evaluation methodsmust also be established. The EPBs must organize coordinationand superviseimplementation. Experience shows that the environmentalgoal responsibility approach is an effective and important environmentalmanagement measure.

QUANTITATIVEASSESSMENT OF THE URBAN ENVIRONMENT

The quantitativeassessment approach to integrated urban environmentalcontrol was adopted at the national level to promote in-depth developmentof the urban environment, improve its quality through environmentalassessment and establish environmentalconstruction goals. ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 40

The Legal Foundation

Cities attract population and industries. They are often national and regional centers of politics, economics, culture, education, science and technology, and lead a country's development.

Experience suggests that the urban environment is impacted by many economic and social factors. Controlling industrial pollution sources alone will not cure urban environments. Instead, integrated urban environmental control is needed to strengthen urban infrastructure and environment and target all pollution sources through urban planning, rational layout and an improved industrial structure. In 1984 the People's Congress of China specified that: "Urban governments must concentrate on better urban design, construction and management, and improve public utilities to facilitate integrated environmental control." The Decision on Strengthening the Integrated Urban Environmental Control was adopted by the first National Conference on Environmental Protection in 1985.

To facilitate this, EPC issued Decision on the Assessment of Integrated Urban Environmental Control (1988), which specifies that urban governments, national and provincial, should prioritize integrated environmental control, making urban environmental quality a major objective of their administration and an important measurement of their achievement. The State Council assesses municipalities, provincial capitals, autonomous regions and major municipalities under provincial jurisdiction, including Beijing, on 21 indices, including ambient air, water, noise control, solid waste disposal and reforestation.

The assessment indices fall into three categories: environmental quality, pollution control and infrastructure.

* Six indices of urban environmental quality (30 points): Annual and daily average value of ambient air total suspended particulate 7 points Annual and daily SO2 averages ...... 3 points Rate of meeting drinking water source quality targets ...... 7 points Average COD value in surface water ...... 5 points Average noise across the region ...... 4 points Average noise near major urban roads ...... 4 points

* Eight indices of urban pollution control (42 points): Dust control ...... 4 points Rate of meeting industrial exhaust targets ...... 3 points Rate of meeting automobile exhaust targets ...... 4 points Industrial wastewater discharge per Y10,000 production ...... 5 points Industrial wastewater treatment rate ...... 4 points Rate of industrial wastewater discharge ...... 5 points Rate of integrated utilization of industrial solid wastes .5...... S points Rate of industrial solid wastes disposal .5...... S points Rate of meeting environmental noise standards ...... 7 points 41 ENVIRONMENTALMANAGEMENT APPROACHES

* Six indices of infrastructure(28 points): Municipal gas supply ...... 3 points Municipal heat supply ...... 3 points Briquettepopularization rate ...... 5 points Urban sewerage treatmentrate ...... 5 points Domestic waste treatmentrate ...... 5 points Urban reforestationcoverage ...... 5 points

Implementation

Integrated urban environmentalcontrol is managed by BMG, coordinatedby BMEPC, and supervised and assessed by the BMEPC General Office. The 21 assessment indices are assigned to the appropriate departments, which incorporate these targets into district, county, bureau and corporate environmentalprotection contracts and BMG economic and social developmentprograms. For example, urban industrial pollution control indices are supervised by the Municipal Economic Commission;municipal gas and heat supply is managed by the Municipal Public Utilities Bureau; urban reforestation is managed by the Capital ReforestationOffice and the Municipal Gardening Bureau.

The BMEPC General Office develops in accordance with state requirements and preferred control methods, an integrated urban environmentprogram, a planning and control approach and a data report format. The designateddepartments collect and file the data with the BMEPC General Office, which supervisesand analyzes the programs' implemenationand ensuing data, and submits these for evaluation, after review by BMG, to EPC.

Results

The quantitativeassessment approach has enhancedthe urban environment and improved the landscape. The combinationof the quantitativeassessment and responsibilitycontract approaches specify the responsibilitiesof different departmentsand units, set performance goals and facilitateimprovement. Since the implementationof the quantitativeassessment approach in 1989, dust control and automobile exhaust indices have improved significantly.

However, in large cities with strong economic developmentand population growth, environmentalimprovement directly depends on urban infrastructureimprovement, even though upgrading is difficult and expensive. It is estimated that an infrastructure investment of YO.2billion to Yl billion translatesinto one BMG integrated control score point. Compared to medium- and small-sizedcities, Beijing faces considerabledifficulty in improving overall integrated control.

PUBLIC ENVIRONMENTALPROTECTION

Public environmentalprotection performanceswas adopted by BMG to facilitate integrated environmentalcontrol and assess various branches of the government. It requires that all governmentdepartments undertake environmentaldemonstration projects, to produce direct ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 42

and visible local benefits.

The TheoreticalFoundation

Environmentalprotection incorporatesmany topics. Practice confirms that a comprehensive approach is the best way to apply limited financial, material and human resources within a short period of time to resolve blatant pollution problems, enhancingnot only urban environmentalquality but also public awarenessof environmentalmatters.

Since 1984, BMG has completed 10 to 12 environmentalprotection programs. Each program included several components;one program included the control or relocation of 50 industrialpollution sources.

Since 1989, Beijing's mayor has required that districts, counties, bureaus and corporations undertakepublic environmentalprotection tasks in response to citizen concerns. Satisfaction of public complaintshas since been adoptedas another parameter of management achievements. These organizationsin turn required that sectors and units under their jurisdiction undertake environmentaldemonstration projects, and similarly have used these for evaluation.

The selectionof public environmentalprotection assignmentsis generally based on: i) priority tasks; ii) major public nuisances; iii) major environmentalproblems with significant influence; and iv) potential financial or technical innovations.

Implementation

An annual environmentalprotection plan is drafted by BMEPC General Office in accordance with BMG environmentalcontrol plans and priorities, critiqued by the affected districts, counties, bureaus and corporations, filed with BMEPC for further review and formally issued during the annual BMG environmentalconference. These plans are then publicly announced through newspapers and radio at the beginningof each year.

The districts, counties and corporations draft their own environmentalprotection plans following BMG priorities and local situations, then file these with BMG General Office and BMEPC for approval.

BMEPC General Office examinesprotection plan implementationmidyear to identify emergingproblems. The examinersreport their findings to BMG and BMEPC and review troubled projects again at the end of year, grading the unit and issuing penalties for non- complianceor commendationsfor improvement.

Since the introductionin 1989 of the public environmentalprotection performance approach, Beijing's mayor has on many occasionsurged that environmentalprotection actively and diligently address public concerns. Attentionand initiative by the various levels of leadership has ensured the timely completionof many environmentaldemonstration projects. 43 ENVIRONMENTALMANAGEMENT APPROACHES

Results

Since 1984, BMG has undertaken 76 environmentaldemonstration projects controlling ambient air, water, noise and industrial pollution and protecting the environment. Beijing's bureaus, corporations, and governmenthave carried out 1,800 environmentalprotection projects, solving an array of problems.

During this time, Beijing established22 exclusivelyresidential zones, particularly the Second and Third Ring Road ReforestationBelt, improving the living environment for millions of residents. Beijing has also designated25 low-noisezones, reducing disturbances for 65,000 householdsand developed central and joint heating supplies, intensifingcontrol and management,resulting in dust control of nearly 100 percent.

Nearly all of Beijing's residents are now using honeycombbriquette fuel, while 85 percent of Beijing householdsare connected to municipalcooking gas, which has led to measurableair quality improvementoutside of the winter months.

After controls were imposed on 10 rivers and lakes, Beijing's water quality and aquatic environmenthas tangibly improved. To protect drinking water sources, Beijing closed Miyun and Huairou counties to tourists, stoppedconstruction of several industrial and tourist facilities, closed dams and roads during flood seasons, restricted tourist access, stopped fish cultivationin these water bodies and planted forests to protect drinking water sources. Beijing has also introduced biological measuresto control certain insects through natural means, and undertaken a variety of eco-agricultureexperiments and land, drainage and reforestationresearch, which has reduced soil erosion by 50 percent and enabled continued suburban development.

Public environmentalprotection is an important means of facilitatingintegrated environmentalcontrol and improving environmentalquality. Emphasis must be laid both on public concerns and tangible results as well as financial and technical factors. Supervision must be more than a mere formality.

Since the adoption of this policy, Beijing's mayor has on many occasions called for prompt and resolute public action. In 1985, the BMG annual plan targeted for relocation by the end of the year 5 highly polluting enterprises near the famous ZhoukoudianPeking Man Relics in the Fangshan District. On learning that one of these plants probably would not be able to relocate in time, the mayor called an emergencymeeting and announcedthat the plant would be required to stop operations if it did not relocate on schedule. In 1989, when a closed plant was found to have resumed production without authorization, BMG halted operations immediatelyand issued strong warnings to the district head and the deputy director of the Municipal Bureau of Cultural Property. Thanks to the mayor's and other officials' diligent leadership, environmentalprotection is regularly accomplishedeach year. CONCLUSION

Beijing's environmentalinstitutions and managementapproaches have been developed over 20 years, during which environmentalpractices have undergone many changes:

* from end-of-pipe (EOP) pollution control to renovation of technical processes, improved resource recovery and integrated waste utilization;

* from basic control of industrialpollution sources to a combination of improved managementand control;

* from control at the source of single pollutants to regional integrated and centralizedpollution control;

i from basic urban environmentalprotection to comprehensiveprotection of both the urban and rural environments;

* from basic industrial pollution source control to the control of industrial and domestic pollution;

* from simple concentrationcontrol to a combinationof density and aggregate control;

* from administrativemanagement to a combinationof administrative, legal and economic measures; and

* from EPBs' isolated efforts to cooperationbetween all sectors, departments and industries.

Environmentalprotection incorporates many topics. A body of environmentalprotection laws and regulations is the basis of Beijing's management. BMG approaches vary yet are mutuallycomplementary, giving rise to a set of effective managementmeasures. Nonetheless,not all measures have been fully implementedyet, and many other useful measures have yet to be drafted. As China continues to restructure economically, certain approaches can be expected to change.

In the past two decades, China has found environmentalmanagement methods both suiting its circumstancesand producing successes. Nevertheless, many problems still exist: public relations and educationhave not completelyheightened public awareness; macro-strategy 45 CONCLUSIOY research and long- and mid-term environmentalplanning suffer from too narrow a scope of study and imperfect methodology;experience is particularly lacking in least-costanalysis. Environmentalmanagement approaches already in practice need to be further improved, and aggregate control is still to be further developed.

Monitoring reveals that atmosphericpollutants such as wintertimeSO 2 and CO are not yet effectively controlled; certain rivers' water quality is unimproved;automobile exhaust along major urban roads is increasing; urban solid, toxic and hazardous wastes have not yet been brought under effective treatment. Inexperienceand shortage of funds aggravate these problems. As Beijing and the rest of China develop, new environmentalproblems can be expected to emerge, as improved living standardswill probably further strain the environment.

The State Council has adopted environmentalprotection as a fundamentalnational policy. BMG also attaches great importanceto the environment, and in the Eighth Five-Year Plan specifies environmentalgoals and mitigationand engineering measures, combining environmentalconsiderations with urban and rural development,to achieve economic, social and environmentalbenefits. Beijing is confidentthat exchangesand cooperation with other countries' environmentministries will enhance managementand facilitate environmental protection, to make Beijing a clean city with a sound environmentalpolicy. ANNEX A -- POLLUTION PERMlTING IN BEIJING

In the early 1970s, a number of developedcountries established some version of a pollution discharge permit system, restricting the total amount of a certain pollutant released in industrial effluents, rather than the concentrationsof that pollutant. The U.S. Environmental Protection Agency first formulatedits pollution discharge permit system in 1972, limiting pollution in industrial wastewaterdischarges by identifyingpractical on-site pollution managementand control techniques. When the permit is renewed, the permitted amount of discharges is not to be greater than in the previous license.

BMG opened its first municipalenvironmental protection office in 1972. Environmental managementand regulations were lacking and environmentalconsciousness virtually nonexistent. BMEPB drafted environmentalregulations and began monitoring and enforcement, but these were based on the principle of controlling wastes at the end of the factory's pipes; the concentrationof wastes in industrial effluents dropped and some environmentalimprovements were noted, but at considerableexpense.

The EnvironmentalProtection Act (1989) stipulatesin Article 27 that: "Pollution-emitting enterprises and institutions must file and register their facilities as required by the EnvironmentalProtection Commission". The Water Pollution Prevention and Control Act further stipulates in Article 14 that: "Enterprises and institutions that directly or indirectly emit pollutants into water bodies must, as provided by the EnvironmentalProtection Commission, register with the local environmentalprotection authority their pollution- emitting facilities and waste treatment facilities,the varieties, quantities and concentrationof pollution emitted under normal conditions, and provide technical references for how they prevent and control water pollution". This act further specifies that: "Enterprises and institutions emitting pollution into water bodies should submit a 'Pollution Discharge Filing and RegistrationForm' to the local environmentalprotection authority, which, after investigationand examination, will issue a pollution discharge permit to enterprises exceedingthe national or local pollution discharge standard and the national aggregate pollutants discharge index." These provisionsprovided a legal foundationfor pollution registration and permitting.

BEHING'S PROGRAM

BMEPB drafted municipal regulations for the prevention and control of ambient air and water pollution based on these national regulations,and introduceda pilot pollution discharge registration and permitting system.

After the selectionof COD discharges as the experiment's benchmark, and an analysis of

Al-l ENVIRONMENTALMANAGEMENT INSTITUTIONS AND ORGANIZATIONSIN BEIJING 2

COD discharges from all of Beijing's industrial corporations, the First Light Industrial Corporation, the Chemical Industrial Corporation and the Textile Industrial Corporation, whose combined discharges accounted for 57 percent of Beijing's total COD discharges, were chosen for this exercise.

BMEPB established a permitting system and a waste auditing procedure. The industrial corporations implemented control procedures, BMEMC monitored these plants and checked the monitoring data, and BMEPB supervised and reviewed this work.

The total permissible amount of pollution to be emitted and its distribution between the enterprises was calculated by BMEPB; this was identified based on the local environment's carrying capacity, the concentration, quantity and effects of the pollutant, the industrial sector's total pollution load and the amount of discharges per Y10,000 of output value. The total amount of COD discharged was restricted, rather than its concentration in the wastewater.

The introduction of CT and increased control over the industrial process was the focus of the plan, which advanced several specific goals:

1. A realistic evaluation of an industrial process' potential to minimize pollution; 2. The modification of equipment and technology to use less energy and raw miaterials; 3. Transportation improvements minimizing pollution from leaks; 4. Improved layout of industrial plants and production lines; 5. Management and staff education; 6. Recycling and reuse of wastes; 7. Implementing up-to-date treatment and other technology (in accordance with least-cost principles); 8. A distribution plan which incorporates centralized control and environmental programming; and 9. Stabilization or reduction of the amount of wastes discharged--unavoidable increases must be balanced by reductions either by other plants in the same sector or in other wastes from the same plant.

APPLICATION

The participating units, after review by BMEPB, filled out the discharge application and registration forms. After approval by their managing corporation, the units returned to BMEPB their applications and analyses of their production lines and ensuing pollution discharges. Factories must include in the waste audit a quantification of all material lost during production, pollution in the discharged wastewater, pollution discharged per unit of production and the ratio between pollution production and discharge. Pollution discharge flowcharts and action plans were drafted from these, and the average amount of pollution discharged per production cycle calculated.

Al-2 After the pollution control targets were defined, BMEPB, the municipal economic affairs office and other relevant municipaloffices reviewed and approved the applications,upon which permits were issued to the enterprises.

IMPLEMENTATION

Once the permits were issued and pollution audits completed, the participating plants developed a number of pollution control measures, includingtechnical upgrading, improved product mixes, improved utilization of resources and wastes, plant relocation, on-site waste treatment facilities, and enhancing employeeenvironmental awareness and capabilitythrough training, which was especially effective.

These changes were not inexpensivefor the enterprises, but proved to be both environmentallyand economicallyeffective. Between the three pilot enterprises, average COD discharges dropped by 8.16 percent from 1988 to 1990 (individualcontrol projects reported COD reductions by as much as 92.5 percent), while combined industrial output value during this period increased by 1.9 percent. By comparison, from 1985 to 1988, the Beijing Chemical Industry Corporation's industrial output value increased by 26.2 percent, while COD discharges increased by 6.0 percent.

An analysis of the pilot corporations' revised productionprocesses versus EOP waste treatment suggested that Y10,000 invested in EOP treatment facilities reduces COD discharges by 2 tons, while the same amount invested in cleaner technology and production processes reduces COD discharges by 6 tons.

EXPANDINGTHE POLLUTION DISCHARGEPERMIT SYSTEM

The Pollution Discharge Permit System has fostered the applicationof a variety of pollution control measures to the industrial process, the incorporationof environmentalprotection targets into production plans, and simultaneousenvironmental and economic development. By 1992, 59 factories in Beijing had been issued permits and initiated waste reduction programs, and COD, suspended solids and oil discharges have already measurably diminished. In 1993, BMEPBhopes to extend this permit system to other industrial bureaus in Beijing, prioritizing enterprises whose emissions of certain wastes account for over 80 percent of the pollution load; BMEPB also is planning a research project to further apply clean technologyto pollution permitting [Annex 2].

Al-3 ANNEX B -- POLLUTION DISCHARGE PERMrITING AND CLEAN TECHNOLOGY

BMEPB's experiment with ChemicalIndustrial Corporation, First Light Industrial Corporation and Textile Industrial Corporationemphasized permitting as a means to control industrial pollution, but many of the way these enterprises complied with the permit--plant relocation, renovating or installing on-site waste treatment facilities, auditing the industrial process to identify sources of pollution--fitthe definition of clean technology (CT). This work has produced measurablebenefits; BMEPB hopes to introduce CT to other enterprises, and is planning a research project which will apply cleaner technology to pollution permitting.

This process will include:

* Establishingan agency, probably managed by NEPA, to coordinate and guide the use of CT. 3 Establishinga Cleaner ProductionInformation and ConsultingCenter. e Formally incorporatingCT into the pollution discharge permit system. 3 Developing standard pollution auditing procedures for industrial processes. 3 Selectingrepresentative industrial sectors and enterprises for demonstration projects. 3 Training industries' managementand technical staff in CT.

BMEPC has establisheda CT task force, representingthe Municipal Economic Commission, the Planning Commission, BMEPB, BMEPRI, BMEMC, and the industrial sectors, which has convened several research groups:

* The IndustrialGroup (primarily the industrial sectors and demonstrationproject enterprises), who will research and introduce CT, waste stream auditing and the reduction of wastes.

* The Policy Research Group (primarily the municipaladministrative departments),responsible for policy research related to the CT and discharge permit systems.

* The General Group (primarily BMEPB and its affiliates), responsible for coordination, identifyingexperts to review project results, and organizing documenttranslation.

The Beijing CT agency should correspond with a national CT institutionalnetwork, and

A2-1 through this, seek guidance from NEPA experts and conduct exchangeswith other provinces and municipalitiesexperimenting with CT.

THE BEIJINGMUNICIPAL CLEANER PRODUCTIONINFORMATION AND CONSULTINGCENTER

Up-to-dateinformation on pollution managementand technologyis essential to categorize and analyze Beijing's key pollution sources, in order to study Chinese and foreign enterprises in similar sectors to develop waste reduction schemes and managementpolicies. The proposed Beijing Municipal Cleaner ProductionInformation and ConsultingCenter (BMCPICC)will assist these enterprises in this work. NEPA already plans to establish a national pollution control information center, to communicatewith the United Nations Environment Programme (UNEP) International Cleaner ProductionInformation Clearinghouse (ICPIC), based in Paris and housing 700 case studies, providing online information services free of charge; BMCPICC will be able to promptly access data and assistance from ICPIC and NEPA experts.

PROFESSIONAL,MANAGERIAL AND TECHNICAL STAFF TRAINING

Courses, seminars, workshops, training materials and in-country and overseas training tours are important to enhance managementand technical staff understandingof CT and discharge permitting, and to improve technical capability.

* Workshopsand seminars NEPA and UNEP have already held two workshops in Xiamen, Fujian Province and Shaoxing, Zhejiang Province. Foreign experts were brought to China to introduce recent developmentsin CT, data collection and waste auditing and reduction. BMG hopes to co-sponsorwith NEPA and UNEP workshopsbringing to Beijing participants from government agencies, industrial sectors, scientific and research institutions.

* Overseas training Two kinds of overseas training are being designed. For management,exchanges will be conductedwith governmentagencies, industrial sectors and developed countries' scientific and research institutions experienced in CT, such as France, Denmark, the Netherlands,U.S. and Australia, to gain deeper understandingof the developmentof CT and the design of demonstration projects. Technical staff will also be sent to study foreign counterparts' production lines, technical renovationsand recent advances in CT.

* Trainingmaterials UNEP's Audit and Reduction Manual for Industral Emissions and Wastes and other UNEP material will be translated, and adapted to incorporate Chinese experience, for use as textbooks, while seminars and workshops will provide other useful material.

CLEAN TECHNOLOGYDEMONSTRATION PROJECTS

BMEPB is ready to select one to three plants in five or six representative industrial sectors for demonstrationprojects. These units' employeeswill be trained by an expert task force,

A2-2 and the results used to develop a municipaltraining program. Participating plants will review their use of raw materials and energy, and examine every stage of operations to identify pollution sources and areas for further improvement. Where a sector or product offers more than one productionprocess, each option will be evaluated by CT standardsto develop a code of best practices.

Foreign experts will be involved in two demonstrationprojects, the pollution auditing and reduction study, and the introductionof CT to enterprises, and will review the studies' technological,economic and environmentalfindings. The results will provide the enterprises with guidelines for future investments.

POLICY CHANGES

NEPA and BMEPB have been interested in CT since the early 1980s, but existing environmentalregulations and standardsare instead based on simple concentrationcontrol. The introductionof CT and pollution discharge permits should lead to appropriate revision of these laws.

Pollution auditing should be used to develop a list of key pollutants and schedules for their phase-out by enterprises; these schedules should be coordinated with city plans to provide a systemicbase for the introductionof CT.

As CT and the pollution discharge permit system are implemented, economicincentives and other policies that will encourage enterprises to adopt cleaner procedures should be studied. These might include low-interestloans, preferential tax policies, compensation,tradable pollution rights and a revised pollution discharge fee collection system.

A2-3 MetropolitanEnvironmental Improvement Program Environmentand NaturalResources Division Asia Technical Department The World Bank 1818,H Street WashingtonD.C., N.W. 20433 USA

Tel: 202-458-2726,2729, 2747 Fax: 202-522-1664