Key Compliance Considerations Following the Entry into Force of the Regulations on the Administration of Pollutant Discharge Permits

The Regulations on the Administration of Pollutant Discharge Permits, promulgated on January 29, 2021 (hereinafter referred to as the “Regulations”), will come into force on March 1, 2021. This brief article provides an interpretation from the perspective of corporate compliance.

Three Upgrades to the Pollutant Discharge Permit System

1. Enhanced legal status

The original Measures for the Administration of Pollution Discharge Permits (Trial) was issued by the Ministry of Ecology and Environment and is classified as a departmental regulation, thus having a lower hierarchical status.

The Regulations on the Administration of Pollutant Discharge Permits have been promulgated by Premier Li Keqiang of the State Council and constitute an administrative regulation.

2. The importance of systems is increasing.

The CPC Central Committee’s environmental policy documents set forth the goal of fully implementing the pollutant discharge permit system for the 14th Five-Year Plan period and the 2035 vision.

The regulations stipulate that any entity discharging pollutants without a discharge permit shall be prohibited from releasing such pollutants.

At the same time, it is clarified that the pollutant discharge permit serves as the primary basis for ecological and environmental supervision of discharging entities.

The pollutant discharge permit system has been further refined as a core mechanism of ecological and environmental management, achieving “one‑permit” administration. The compliance status of enterprises’ discharge permits will serve as an important basis for ecological and environmental law enforcement inspections, accountability measures, and public oversight. 3. Strengthened legal liabilities

(1) In cases of direct violations of permit‑management provisions, the administrative fines prescribed by the Regulations have been increased from the previous minimum of RMB 100,000 to RMB 200,000, with no upper limit. If a pollutant‑discharging entity, after being ordered by the ecological and environmental authorities to make corrections and subjected to administrative penalties, refuses to comply; or if it continues to engage in unlawful conduct, or refuses or obstructs follow‑up inspections, it shall be subject to daily continuous penalties in accordance with the provisions of the Environmental Protection Law of the People’s Republic of China, with no maximum cap on the total fine amount.

(2) For pollutant-discharging entities operating without a permit or with an invalid permit, they shall be ordered to make corrections, have their production restricted, or suspend production for remediation, and shall be subject to a fine of no less than RMB 200,000 but no more than RMB 1 million; in cases of serious violations, upon approval by the people’s government authorized to grant such approvals, they shall be ordered to cease operations or shut down.

(3) Discharging units that exceed the permitted limits—namely, concentration, discharge volume, and discharge method—shall be ordered to make corrections or have their production restricted or suspended for remediation, and shall be subject to a fine of no less than RMB 200,000 but no more than RMB 1 million. In cases of serious violations, the discharge permit shall be revoked, and, upon approval by the people’s government authorized to grant such approvals, the unit shall be ordered to cease operations or shut down.

(4) For pollutant-discharging entities that engage in uncontrolled atmospheric emissions or fail to comply with emission limits, they shall be ordered to make corrections and fined between RMB 50,000 and RMB 200,000; in cases of serious violations, they shall be fined between RMB 200,000 and RMB 1 million, and may be ordered to restrict production or suspend operations for remediation.

(5) Dischargers that violate requirements for controlling pollutant emissions shall be ordered to make corrections and fined between RMB 20,000 and RMB 200,000; if they refuse to make corrections, they shall be ordered to suspend production for remediation.

(6) Discharging units that violate the compliance‑related operational management requirements of their discharge permits—such as failing to maintain proper records, submit required reports, or providing false information—shall be ordered to make corrections and shall be subject to a fine of no less than RMB 5,000 and no more than RMB 20,000 per violation; where otherwise provided by law, such provisions shall prevail.

Seven Key Points for Certificate-Compliant Operations

1. Which entities are required to hold a license?

In accordance with the classification management requirements set forth in Articles 2 and 24 of the Regulations, pollutant-discharging entities are subject to either simplified permit management or key‑management.

Some enterprises are required to obtain a pollutant discharge permit, while others need only complete pollutant discharge registration. Pollutant‑discharging entities with significant pollutant generation, emissions, or environmental impacts shall be subject to key management under the pollutant discharge permitting system; those with low levels of pollutant generation, emissions, and environmental impact shall be subject to simplified management. For enterprises, institutions, and other producers and operators whose pollutant generation, emissions, and environmental impacts are all minimal, they shall submit a pollutant discharge registration form and are not required to apply for a pollutant discharge permit.

The scope of pollutant-discharging entities subject to pollutant discharge permit management, the implementation steps, and the list of management categories shall be formulated by the State Council’s competent department for ecological environment, submitted to the State Council for approval, and then promulgated and implemented.

2. Key Points for Compliance Management by Licensed Polluting Entities

(1) Compliance of certificate format

Obtain a pollution discharge permit through legal channels and display the original at the production and business premises to facilitate public oversight. The forgery, alteration, or transfer of a pollution discharge permit is prohibited.

(2) Substantive Compliance with Certification

Operate and maintain pollution prevention and control facilities in accordance with ecological and environmental management requirements, establish standardized pollutant discharge outlets, and install signage.

The competent ecological and environmental authority shall conduct supervisory inspections to verify whether the operation and maintenance of pollution prevention and control facilities by pollutant-discharging entities comply with the provisions of their discharge permits.

(3) Post‑licensing management: Self‑monitoring

Polluting entities shall conduct self-monitoring and maintain original monitoring records, and shall be responsible for the authenticity and accuracy of the monitoring data and records.

(4) Post-Certification Management: Ledger Management

Polluting entities shall establish a system for maintaining environmental management records, accurately documenting the operational status of major production facilities and pollution control equipment, as well as pollutant emission concentrations and quantities. Both the original monitoring records and the environmental management records shall be retained for no less than five years.

(5) Post-Certification Management: Implementation Report

Polluting entities shall submit compliance reports in a timely manner. In accordance with the content, frequency, and timing requirements stipulated in the pollutant discharge permit, they shall submit compliance reports to the approving authority, accurately reporting their pollutant discharge activities, discharge concentrations, discharge volumes, and other relevant information.

If a discharge unit suspends production during the validity period of its pollutant discharge permit, it shall accurately report any changes in pollutant emissions and provide an explanation for such changes in its discharge permit implementation report.

(6) Post-Certification Management: Information Disclosure

Polluting entities shall report to the pollutant discharge permit approval authority information on pollutant discharge activities, discharge concentrations, and discharge volumes, as well as details on the construction and operation of pollution prevention and control facilities, compliance reports for pollutant discharge permits, and self-monitoring data. Where water pollutants are discharged into the municipal sewage network, such reports shall also include information on the connection point of the wastewater to the municipal network and the discharge method. Furthermore, in accordance with the provisions of the pollutant discharge permit, relevant pollutant discharge information shall be disclosed truthfully on the National Pollutant Discharge Permit Management Information Platform.

(7) Post-Certification Management: Priority Management

Pollution-discharging entities subject to key management under the pollutant discharge permit system shall install, operate, and maintain automatic pollutant‑emission monitoring equipment and connect such equipment to the monitoring systems of the competent ecological and environmental authorities. If a pollution‑discharging entity detects anomalies in the data transmitted by its automatic pollutant‑emission monitoring equipment, it shall promptly report to the competent ecological and environmental authorities and carry out inspection and remediation.

Source: Environmental Safety Compliance and Dispute Resolution