Environmental Laws and regulations
specifically applicable to companies-Related
to air and solid waste
Dr.P.UdhayaKala,
Dean Chemistry, Deputy Director CIQA
Dr.M.G.R.Educational and Research
Institute
1
Overview













Environment, its exploitation and need for laws and regulations.
Difference between Laws and Regulations.
Key pieces of Environmental laws and regulatory Authorities.
Environmental NGOs, think tanks and Local Citizens.
Regulatory regime for Air pollution.
Environmental permits, Length of Permit (Validity Period),
Penalties.
Regulatory regime for contaminated land.
Environmental Impact Assessments.
Regulatory regime for waste.
Environmental Liability-Seller/Buyer/Lender/Previous owner.
Environmental Auditing, Insurance, Taxes.
National Targets.
Reference and Acknowledgement.
2
Environment, Its exploitation and need for Laws
and Regulations
3
Difference between Laws and Regulations
Laws go through the bill process before
becoming established as a law. A bill has to
be written, sponsored by a legislator, debated
and passed through both the House of
Representatives and the Senate after various
committee and budget hearings before going
to the Executive to be signed into law.
A regulation is created by a governmental
agency, often to actually implement a given
law, and does not have to go through the bill
process described above. With regulations,
an agency holds a public hearing and after
that hearing makes a decision on either
adopting,
changing
or
rejecting
the
regulation.
4
Key pieces of Environmental laws








Water Prevention and Control of Pollution Act 1974 (Water Act),
Air Prevention and Control of Pollution Act 1981 (Air Act).
Environment Protection Act 1986 (EP Act)
Wild Life Protection Act 1972.
Forest Conservation Act 1980.
Public Liability Insurance Act 1991.
Biological Diversity Act 2002.
National Green Tribunal Act 2010.
5
Wide range of rules and notifications adopted under
Environment (Protection) Act 1986











E-Waste (Management) Rules 2016, as amended in 2018 (E-Waste Rules)
Batteries (Management & Handling) Rules 2001 (and the proposed draft Battery Waste
Management Rules 2020)
.
Bio-Medical Waste Management Rules 2016
Plastic Waste Management Rules 2016 (and a proposed draft 2021 amendment)
Solid Waste Management Rules 2016
Construction and Demolition Waste Management Rules 2016
Hazardous and Other Waste (Management and Transboundary Movement) Rules 2016,
as amended in 2019 (HW Rules)
Manufacture, Storage and Import of Hazardous Chemicals Rules 1989 (MSIHC Rules)
Coastal Regulation Zone Notification 2019 (and related 2021 procedure for violation of
the CRZ Notification)
Environment Impact Assessment Notification 2006.
6
Recent notification
In May 2021, the Securities and Exchange Board of India (SEBI) introduced the
Business Responsibility and Sustainability Report (BRSR), new reporting requirements
relating to environmental, social and corporate governance (ESG). The BRSR seeks
disclosures from listed entities on their performance against the nine principles of the
National Guidelines on Responsible Business Conduct (NGBRCs) and reporting under
each principle is divided into essential and leadership indicators. The essential
indicators must be reported on a mandatory basis, while reporting of leadership
indicators is on a voluntary basis. With effect from the financial year 2022 to 2023, filing
of BRSR will be mandatory for the top 1000 listed companies (by market capitalisation)
and will replace the existing Business Responsibility Report (BRR) requirements. 7
8
Key regulatory Authorities
9
MoEFCC- Pollution Index
• 60 sectors
• e.g. Asbestos, oil
and gas extraction
etc.
• 36 types e.g. Solar
power, Wind
power, Hydro
electric power
generation etc.
PI- 60
and
above
PI-41 to
59
PI- upto
20
PI- 2140
• 83 types of
industries .
• e.g. Pharmaceutical
formulation, Paint
blending etc.
• 63 sectors e.g.
Sawmills, Tube
retreating etc.
10
Industrial areas having aggregated CEPI
scores of 70 and above - critically
polluted areas (CPA)
Need further detailed investigations in
terms of the extent of damage and a
formulation of appropriate remedial
action plan.
The Industrial areas having CEPI
between 60-70 - severely polluted areas
(SPA)
shall be kept under surveillance and
pollution control measures should be
efficiently implemented,
11
Environmental NGOs, think tanks and Local Citizens
Based on the fundamental right to a clean environment, PILs by citizens or NGOs are
routinely filed in the courts.
The courts are very proactive, and even take up environmental issues on their own
initiative merely based on news articles covering environmental issues.
Through the Right to Information Act 2005 , citizens also obtain information regarding
the status of environmental projects and their environmental permits. This requires all
government departments/agencies to promptly give a substantive and reasoned reply
to any questions asked by any citizen (with a few exceptions, such as trade secrets).
12
Regulatory regime for Air pollution
Permits and Regulator
Companies must apply to the relevant SPCB for either:

A CTO (Air Act).

A common consent order (that is, a combined document for consent under the Water
Act and Air Act.)

An integrated environmental permit (Air Act)
Prohibited Activities

Clean-up/Compensation
SPCBs can order companies to clean-up air pollution and issue directions to
companies for closure or stoppage of electricity or water supply, until the cause is
adequately addressed. Courts and the NGTs can order compensation to be paid
by
13
companies for harm caused to the environment or people
Length of Permits
An initial CTE
Valid for one year (but depending on the
scale of the project this could be longer)
A CTO under the Water and Air Acts
Varies between three to five years
White category industries
Do not need to obtain a CTO
Green category industries
initial CTO in many states valid for 15
years.
orange categories industries
Ten years
red categories industries
Five years.
Renewal applications
Granted before 60 to 120 days of expiry of
the CTO-Assuming no severe non
compliances
14
Regulatory regime for Air pollution-Penalities
Offence
Penality
Person who is in charge when an offence is
committed, and is responsible to the company for
the conduct of its business.
Liable to be prosecuted and punished accordingly.
company operating without a consent to establish
or operate
immediately receive a closure notice from the
relevant SPCB
A company that fails to comply with any order or
award or decision of the NGT
punishable with a fine up to INR25 crore (section
26(2), NGT Act).
If the failure or contravention continues
An additional fine applies up to INR100,000 for every
day the failure/contravention continues, after
conviction for the first failure or contravention.
Sterlite Industries(I) Ltd was found to be operating
without a valid renewal of its environmental CTO
The company's annual report, is reviewed and
informed , 10% of the profit before depreciation,
interest and taxes (PBDIT) had to be paid as
compensation, which amounted to INR1 billion.
15
Regulatory regime for contaminated Land
Regulator and Legislation
Currently India does not have specific legislation on contaminated land,
although there are clear policy signals that it might adopt a tailored soil
pollution/remediation legislation.
The EP Act, the Water Act, the HW Rules, and extensive case law
based on the polluter pays principle, form the legal basis on which
regulatory authorities (SPCBs) and courts address land contamination.
Investigation and Clean-up
When the environmental pollutant exceeds the prescribed standards,
NGTs have the power to order:
•
Relief and compensation to the victims of pollution.
•
Restitution of damaged property.
•
Restitution of the environment.
16
Environmental Impact Assessments
Activities that require a prior environmental clearance, and a detailed EIA :

Mining of minerals.

Offshore and onshore oil and gas exploration, development and production.

Oil and gas transportation pipelines.

Thermal power plants.

Nuclear power projects and processing of nuclear fuel.

Metallurgical industries (ferrous and non-ferrous).

Asbestos milling and asbestos-based products.

Chlor-alkali industry.

Chemical fertilisers.

Pulp and paper industry.

Sugar industry.

Building and construction projects.

Townships and area development projects.
17
Decentralization of Project Clearances
Category A
Category B
Projects are appraised by Impact Assessment State
Level
Environment
Impact
Agency (IAA) and the Expert Appraisal Assessment Authority (SEIAA) and State
Committee (EAC)
Level Expert Appraisal Committee
(SEAC) provide clearance
Require a ‘Prior Environmental Clearance’ Further sub-divided into Category B1
(EC) from MoEF
projects, which require an EIA, and
Category B2 projects, which do not
require an EIA (neither require public
consultation).
Physical infrastructure includes projects in the Covers projects with lesser size or
ports, highways, water and sanitation, urban capacity, and smaller impacts than
transport, and solid waste management Category A
sectors.
All new National Highways.
18
Four stages to obtain an environmental clearance
• Category A projects
require
mandatory
environmental
clearance and thus
they do not have to
undergo the screening
process.
• Category B projects
undergo a screening
process
and
are
further classified into
B1
(Mandatorily
requiring EIA) and B2
(Not requiring EIA).
Screening
Scoping
Public
Consultation
Public hearings are not
required for some projects,
such as:

Modernisation
of
irrigation projects.

Projects in industrial
estates or parks.

Expansion of roads and
highways not needing
further land acquisition.

Building, construction,
area development and
townships.
Appraisal
19
Environmental Clearance process
20
The regulatory regime for waste
Permits and Regulator
Specific permits, consents or authorisations must be obtained by various parties
generating or handling waste, under the following key waste-management laws:

Solid Waste Management Rules 2016.

Plastic Waste Management Rules 2016.

E-Waste (Management) Rules 2016.

Bio-Medical Waste Management Rules 2016.

Construction and Demolition Waste Management Rules 2016.


Hazardous and Other Waste (Management and Transboundary Movement)
Rules 2016.
Batteries (Management and Handling) Rules 2001
21
Environmental Liability- Seller/Buyer/Lender/
Previous Owner
Seller
The seller is only bound to make disclosure where sale documents contain specific representations and
warranties from the seller about environmental violations/compliance, past, existing or potential, backed
with indemnities, failing which the seller can be liable for a breach or incomplete disclosure.
Buyer
A buyer inherits, in the normal course as the owner, any pre-acquisition environmental liability of the
company relating to the asset (for example, contaminated water or land) or pre-existing environmental
concerns involving payment of damages or compensation or remedial measures.
Lender
In India, lenders do not directly incur liability for environmental wrongdoing and/or remediation costs for
contaminated land, unless they are directly responsible or liable for the management of the company,
with a board position or substantial shareholding and involvement in the day to day running of the
company. However, lenders increasingly undertake an environmental risk assessment of their
customer's projects and include contractual clauses relating to environmental compliance in their loan
documents
Previous Owner/Occupier
A previous occupier being liable is less common. The current occupier is typically liable to the
regulatory authorities and courts, and claims between current and earlier occupiers must be settled
contractually, unless it can be clearly established that only the previous owner caused the pollution.
22
Environmental Auditing
Companies must submit an annual environmental statement to the SPCB from which they
obtained the relevant consent or authorisation. This is an effective control mechanism for the
authorities to assess whether processes and pollution levels comply with conditions specified
in the consent orders. The environmental statement must include information on the:

Industry's operation or process.

Water and raw material consumption.

Pollution discharged into the environment (name of pollutants, quantity discharged,
concentration, and the percentage of variation from the prescribed standards and the
reasons for deviation).

Details of hazardous waste and solid waste generated (along with the characteristics of
the waste).

Impact of pollution control measures taken on conservation of natural resources, as well
as on production costs.

Any additional measures/investment proposals for environmental protection, including
abatement of pollution.
23
Powers of environmental regulators to
access a company
SPCB officers have the power to enter and inspect any place, to:

Examine any plant, record, register, document or other material
object.

Search any place in which an officer has reason to believe that an
offence has or is about to be committed.
24
Environmental Insurance
The Public Liability Insurance Act 1991 requires an insurance policy to be
taken out by owners, users or transporters of hazardous substances, as defined
under the EP Act.
Any one accident (AOA) must represent the paid-up capital of the company,
subject to a maximum of INR50 million (Public Liability Insurance Act 1991). The
AOA limit is fixed at a maximum of INR150 million. The excess of any award that
exceeds the AOA limit is paid by the government through the Environment Relief
Fund. The insured must contribute an amount to this fund which is equivalent to
the premium paid under the Public Liability Insurance Act Policy.
There is no standard insurance policy issued by all insurance companies but
there are various types of insurance cover for environment damage or liability, as
negotiated between the insurance company and the client.
25
Main environmental taxes
A carbon cess is levied on every tonne of coal mined or imported (at INR400 per tonne). A portion of
the collected carbon cess was previously disbursed to the National Clean Energy Fund. However, with
the recently introduced Goods and Services Tax (GST) regime (rolled out on 1 July 2017), the cess
will be used instead for the GST Compensation Fund, meant to compensate state governments for
any loss in revenue arising out of the new GST regime.
The Supreme Court of India imposes 1% of ex-showroom price as Environment Compensation Cess
on diesel vehicles having an engine capacity greater than 2000 CC in Delhi-NCR. In addition, an
Environment Compensation Charge (ECC) is levied on HGV vehicles entering the National Capital
Territory of Delhi.
All project proponent/user agencies must pay a contribution to the Compensatory Afforestation Fund
Management and Planning Authority Fund (CAMPA-Fund) when a request is made for diversion or
de-notification of forest land for non-forest purposes. The authority can only use the fund for
afforestation activities.
Recently, the Ministry of Road Transport and Highways has approved a "Green Tax" on vehicles older
than 15 years.
26
National targets
On 2 November 2021, India's Prime Minister made the following
five key
submissions during the COP26 held in Glasgow, Scotland:


India will take its non-fossil energy capacity to 500 GW by 2030.
India will meet 50% of its energy requirements from renewable
energy by
2030.

India will reduce the total projected carbon emissions by one
billion tonnes
from now until 2030.


By 2030, India will reduce the carbon intensity of its economy by
45%.
By the year 2070, India will achieve the target of Net Zero.
27
Proposal for significant reforms of
Environmental Laws
CMS Rules
In August 2020, India's Ministry of Chemicals and Fertilizers circulated the
5th version of the Draft Chemicals (Management and Safety) Rules (CMS
Rules) to selected stakeholders. The final version is expected sometime in
2022. The draft CMS Rules introduce a new registration, evaluation,
authorisation and restriction of chemicals (REACH)
National Clean Air Programme
The MoEFCC has developed a National Clean Air Programme, which is
adopted at central level in strategies for reduction of air pollution levels at
both regional and urban scales.
28
References
1. http://www.mamhca.org/assets/1/7/Laws_vs_regulations.pdf
2. Environmental Law and Practice in India: Overview by Els Reynaers
Kini and Gautambala Nandeshwar, M V Kini
3. https://moef.gov.in/wp-content/uploads/wssd/doc2/ch2.html
4. https://indiankanoon.org/doc/1000673/
5. https://www.pppinindia.gov.in/toolkit/ports/module2-fgostooeiaaec.php?links=fgost3#:~:text=For%20example%20in%20the%20ca
se,product%20mix%20of%20existing%20projects.
6. https://www.drishtiias.com/to-the-points/paper3/environmental-impactassessment-eia-draft-2020
Acknowledgement
Mr.P.UdhayaSingh, Practising Advocate, District Court, Kanyakumari.
29
Think and raise your questions to save earth
30
31