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Chinese
EHS trendsStricter Supervision under the Reform
of Simplifying Administration
Yusi Wang
Presenter
Regulatory Analyst
Nimonik
Jessica Minhas
Facilitator
Marketing Manager
Nimonik
Presenters
● Legal Framework
● Approvals Required to Open a Factory in China
● Pipes Suit
● Administrative Simplification Before the Construction of a Project
● Administrative Simplification After the Construction of a Project
● Penalties for Violations
● Spirit of the Pipes Suit
● Conclusion
Agenda
● EHS laws in China have recently changed
● Half of the mandatory national standards are no more relevant
● Regulations and penalties are now much stricter
Introduction
● How strict is ‘stricter supervision’?
● What if organizations do not meet compliance obligations?
● Why did half of the national mandatory standards disappear?
You Might be Thinking
● Are recommended standards important?
● What are the main legislative changes?
● Which organizations will be successful
under the new EHS trends?
● How will soil pollution be monitored?
What is the new pollutant discharge license
management system?
You Might be Thinking
National People’s Congress
Standing Committee of
the NPC
State Council
Constitution
Basic Laws
Special Laws
Administrative
Regulations
Departmental
RulesLocal
Regulations
Rules of Local
Government
Local Government
Ministries under
the State Council
Legal Frame and Legislatures
Land related
issues
Company name
pre-approval
Start EIA & SA
EIA Approval
SA Approval
Business
License Acquired
OHA Approval ESR Approval
Applications on
other aspects
Approvals Required for Opening a Factory
● Simplify administrative procedures
● Loosen pre-event and strengthen post-event supervision
● Optimize governmental services
The Pipes Suit（放管服）
Environment
Before After
All environmental impact assessment
documents should be approved by
administrative departments
Just submit the registration form to
the administrative departments
Administrative Simplification Before the Construction of a Project
Health
Before After
● The preparation of pre-assessment for
occupational hazard should be commissioned
to the Occupational Health Technical Service
Institutes (OHTSIs)
● Projects with ordinary occupational hazards:
assessment report should be submitted to
work safety departments
● Construction projects with severe hazards:
assessment report should be applied for
approval
Organizations can do pre-assessment
themselves
Filing and approval procedures have been
cancelled
Administrative Simplification Before the Construction of a Project
Safety
Before After
National and provincial projects requiring pre-
assessment for safety:
•chemical industry
•metallurgy
•nonferrous metals
•building materials
•machinery
•light industry
•textile
•tobacco
•trade
•military industry
•highroad
•water carriage
•rail transit
•electric power, etc.
Significantly fewer projects require pre-
assessment for safety:
• metal smelting,
• chemical industry
Administrative Simplification Before the Construction of a Project
Environment
Before After
● Acceptance check on environmental
protection facility should be
conducted by environmental
administrative departments
● Pollutant discharge license
management will replace
acceptance check for projects
involving pollutant discharge license
management system
● Acceptance check report should
be commissioned to a third party
for projects not involving pollutant
discharge license management
system
Administrative Simplification After the Construction of a Project
Health
Before After
● Occupational disease hazard control
effectiveness assessment should be
commissioned to the OHTSIs
● Projects with ordinary occupational
hazards: acceptance check report
should be submitted to Work
Safety Departments
● Projects with severe hazards:
acceptance check should be
conducted by Work Safety
Departments
● Effectiveness assessment can be
done by the organizations
themselves
● Organizations can conduct the
acceptance check themselves
● A written report for the acceptance
check procedure is required
Administrative Simplification After the Construction of a Project
Safety
Before After
● Following projects should apply to the Work
Safety Departments for acceptance check:
○ Non-coal mine projects
○ Projects for producing or storing
hazardous chemicals
○ Projects for producing or storing
fireworks and crackers;
● Following National and provincial projects
should be submitted to the work safety
departments for archival purpose:
○ chemical industry
○ metallurgy,
○ nonferrous metals
○ building materials
○ machinery, etc.
Organizations can conduct acceptance
check on safety facility themselves
Administrative Simplification After the Construction of a Project
Is Starting a Business in China Simpler than Before?
5% of the total
investment
Penalties for violating Environmental Impact Assessment
in 2011 and 2016
● Shaanxi Coal Energy Company fined 15.8 million
RMB by Xianyang Municipal (Shaanxi Province)
Environmental Protection Bureau
● Discharged pollutants without pollutant discharge
license : 100,000 RMB
● Air pollution prevention facility not compliant:
100,000 RMB
● Consecutive Daily penalty for 79 days
● Total fine = 0.2*79M = 15.8Million RMB
Environmental Pollution Crime Case
Penalties for violating Occupational Health Assessment 2012 and 2017
Penalties for violating Safety Protection 2011 and 2015
Work Safety Accident Case
● Dongguan DGK Component Company’s portal crane collapse
○ 18 dead
○ 33 injured
○ 18.61 million RMB direct economic losses
● Not compliant on special appliance’s utilization procedure
● No proper training for operators
● Fake special appliance’s operation license
● No prevention for hazardous weather
● 3 face criminal charges
● 20 face administrative penalties
Work Safety Accident Case
● Amendment of 12 laws including:
○ Foreign Trade Law
○ Energy Conservation Law
● More power to Local legislatislation
● 50% of the mandatory standards converted to recommended
standards
Premise Simplification of Administration
New laws and regulations with stricter penalty
● Law of Environmental Protection Tax
● Clean Production Audit
● Industrial Energy Conservation
Foundation Less pre-event and more post-event supervision
Pollutant Discharge License Management System
is now the core of Environmental Management System
Foundation Less pre-event and more post-event supervision
Soil investigation and remediation
compulsory for land use transfers
Foundation Less pre-event and more post-event supervision
Foundation Less pre-event and more post-event supervision
Ministry of environmental protection seeking public comments for
the amendment on implementing daily penalties
Regulation on the
Implementation of the
Work Safety Law
Work Safety
Law
Regulation on
Work Safety
Emergencies
Regulations on the
Reporting,
Investigation and
Disposition of Work
Safety Accidents
New Work Safety Legislation Frame
General Trend
Supervision will only get stricter
Current Trend
Simpler pre-event and stricter post-event supervision
Conclusion
Industrial organizations
Compliance is the new basis for competition
EHS Engineers
The only gatekeeper of compliance in organizations
Need to further improve compliance awareness
Consultants
Opportunities
Conclusion
