Relevant to the Pulp and Paper Industry

Relevant to the Pulp and Paper Industry

Environmental Legilsation

Gladys NaylorEnvironmental ManagementMondi South Africa

The Constitution

Section 24 of the Constitution sets out the environmental right as follows:

24. Environment

(1) Everyone has the right:(a) to an environment that is not harmful to their health or

well-being; and(b) to have the environment protected, for the benefit of

present andfuture generations, through reasonable legislative and other measuresthat:

(i) prevent pollution and ecological degradation;(ii) promote conservation; and(iii) secure ecologically sustainable development and use

of natural resources while promoting justifiable economic and social development.

Development of Legislation

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Fore

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Act

101 o

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Law

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12

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Nati

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6 o

f 1998

Nati

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ment

Act

45

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19

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Wate

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Act

10

8 o

f 1

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Am

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Pro

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Act

57 o

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Bio

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10

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Air

Qualit

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39

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Wast

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Act

48 o

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Nati

onal En

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Regula

tor

Act

40

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1989

1997

1998 1999

2001 2003

2004 2005

2006

2008

1994

Const

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10

8 o

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1996

2009

En

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Law

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National Environmental Management Act (NEMA)

The National Environmental Management Act (NEMA) creates the fundamental legal framework that gives effect to the environmental right guaranteed in section 24 of the Constitution of the Republic of South Africa,108 of 1996

The Act repeals the greater part of the Environmental Conservation Act 73 of 1989

NEMA sets out the fundamental principles that apply to environmental decision making

The core environmental principle is the promotion of ecologically sustainable development


Makes provision for integrated environmental governance

Introduces the framework for environmental impact assessments

Contains far-reaching general duty of care to prevent, control and rehabilitate the effect of significant pollution and environmental degradation, including historic pollution and environmental degradation (Section 28)

A criminal offence to cause significant pollution or environmental degradation

Criminal prosecution of environmental crimes may lead to the incarceration of managers as well as directors of companies


Dictates the duty of care to address emergency incidents of pollution (Section 30)

Penalties – a convicted offender is liable to a fine of R1 million and/or imprisonment of up to 1 year)

Provides for a compliance and enforcement directorate with wide powers to enforce NEMA as well as other environmental legislation – EMIs (“Green Scorpions”)

Provides employees the right to refuse to perform environmentally hazardous work and whistle blowers are protected

On 18th June 2010 the new EIA Regulations were published and came into effect on 2nd August 2010

EIA Regulations (R543)

Listing Notice 1 (R544) lists activities which require a Basic Assessment

Listing Notice 2 (R545) lists activities which require a Scoping and Environmental Impact Report

National Environmental Management ActEIA Regulations

Air Quality Act

The Air Quality Act regulates air quality in order to protect the environment

Provides for national norms and standards regulating air quality monitoring

Provides for specific air quality measures

Registration Certificates issued under the Atmospheric Pollution Prevention Act (APPA) need to be converted to AQA Air Emission Licenses

Ambient air quality standards put in place

Air Quality Act Ambient Air Quality Standards

Averaging Period

Concentration

10 minutes

500 µg/m3 (191ppb)

1 hour 350 µg/m3

(134 ppb)

24 hours 125 µg/m3

(48 ppb)

1 year 50 µg/m3

(19 ppb)

Sulphur Dioxide

Averaging Period

Concentration

24 hours 120 µg/m3

1 year 50 µg/m3

Particulate Matter (PM10)

Averaging Period

Concentration

1 hour 200 µg/m3

(106 ppb)

1 year 40 µg/m3

21ppb)

Nitrogen Dioxide (NO2)

Air Quality Act Point Source Emission Limits

Plant Status mg/Nm3

Particulate Matter New 50

Existing 100

Sulphur Dioxide New 500

Existing 3500

Oxides of Nitrogen (NOx expressed as NO2)

New 750

Existing 1100

under normal conditions of 10% O2, 273 Kelvin and 101.3 kPa

Solid Fuel Combustion Installations (greater than 50MW heat input per unit)


Plant Status mg/Nm3


Existing 10


Existing 500


New 50

Existing 300


Gas Combustion Installations (greater than 50MW heat input per unit)


Plant Status mg/Nm3


Existing 100

Total Reduced Sulphur (measured as H2S)

New 10

Existing 10


New 600

Existing 2000under normal conditions of 10% O2, 273 Kelvin and 101.3 kPa

Lime Kiln


Plant Status mg/Nm3


Existing 100

Total Reduced Sulphur (measured as H2S)

New 15

Existing 15


Existing 300


New 300

Existing 300


Recovery Boilers

Air Quality Act - Penalties

A person convicted of an offense in terms of AQA is liable to a fine of up to R5 million and/or 5 years imprisonment (previously R500 under APPA)

A second time offender is liable to a fine of up to R10 million and/or imprisonment of up to 10 years (previously R2000 under APPA)

National Environmental Management:Waste Act (NEM:WA)

Came into effect on 1 July 2009 (with the exception of certain sections)

Regulates waste management in order to protect health and the environment

Provides for institutional arrangements and planning matters

National Waste Management Strategy

Norms and standards such as the classification of waste

Designation of Waste Management Officers

Provides for the licensing and control of waste management activities

Remediation of contaminated land (sections 35 to 41 not in effect yet)

Requires Industry Waste Management Plans

Establishment of a National Waste Information System

Licensing of Waste Management Activities


Sets out compliance and enforcement provisions

Offenses (section 67)

Penalties – an offender could receive a fine of up to R10 million and / or imprisonment of up to 10 years for certain offences (set out in section 68 of the Act)


Incentives and Disincentives

Income Tax ActJan 2008

Environmental Capital ExpenditureTax deductionS36B

Income Tax ActJan 2009

Clean Production Tax Benefits Tax deductionS12I

Income Tax ActMar 2009

Biodiversity Tax Benefits Tax deductionS36C

Elec Regulation ActMar 2009

RE Electricity Tariffs Feed in tariffsvaried

Customs and Excise ActJul 2009

Energy Efficiency Levy Energy levy2c/kWh

Customs and Excise ActOct2009

Light Bulb Levy Bulb levyR3/bulb

Incentives and Disincentives

Customs and Excise ActSep 2010

Revised Vehicle Taxes Vehicle Levyper CO2

Agreement?

Waste Tyre Levy Tyre Levy

R15 – R140

??

Emission Taxes CO2 tax

R100/ton?

Waste Act?

Extended Producer ResponsibilityPaper / packaging levy

R/ton?

Environmental Capital Expenditure

“environmental treatment and recycling assets”

Tax write-off

40%Year 1

Accelerated depreciation allowance

20%Year 2

20%Year 3

20%Year 4

“environmental waste disposal assets”

Tax write-off

5%Per year

Straight line depreciation allowance


“environmental treatment recycling assets”

“any new and unused air, water, and solid waste treatment and recycling plant or pollution control and monitoring equipment if the plant or equipment is -

a) utilised in the course of a taxpayer’s trade in a process that is ancillary to any process of manufacture or any other process which, in the opinion of the Commissioner, is of a similar nature;

and

b) required by any law of the Republic for purposes of complying with measures that protect the environment”.


“environmental waste disposal assets”

“any new and unused air, water, and solid waste disposal site, dam, dump, reservoir, or other structure of a similar nature, or any improvement thereto, if the structure is -

a) of a permanent nature;b) utilised in the course of a taxpayer’s trade in a

process that is ancillary to any process of manufacture or any other process which, in the opi9nion of the Commissioner, is of a similar nature; and

c) required by any law of the Republic for purposes of complying with measures that protect the environment”.

Renewable Energy

Wind, sun, water, biomass

Tax write-off

50%Year 1

Accelerated depreciation allowance

30%Year 2

20%Year 3

Possible Future Charges?

NEM: Air Quality Act

Permitted Allowance

exceed

Charge / Excess?

Possible Future Charges?

National Water Act

Waste Discharge Charge System

exceed

Charge based on pollutants

Why is this important?

Duty of Care

Sustainability of our natural resources

Reputational Risk

Criminal Sanctions

What will our legacy be?

http://asia.news.yahoo.com/afp/20101006/img/pts-hungary-accident-chemic-006517b301fe0.html

http://ngm.nationalgeographic.com/2010/10/gulf-oil-spill/gulf-spill-photography

Questions?

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