THE LAW OF AZERBAIJAN REPUBLIC on Industrial and Household Waste This Law defines the government policy in the area of protecting the environment from industrial and household waste (hereinafter referred to as "waste” generated in the form of items and substances as a result of human activity, reducing its negative impact, ensuring ecological balance, re-using waste, regulates the relations with regard to waste excluding noxious gases, sludge and radioactive waste, in Azerbaijan Republic. Chapter I General Provisions Article 1. Main concepts The following are the definitions of the main concepts used in this Law: industrial waste - items, substances and materials, which arise from pro process, agriculture, service sectors and which cannot be used on the spot, as • the items, substances and materials, having lost their primary consumption characteristics completely or partially; household waste (solid household waste) - items, substances and materials arising from human activity in the population's residential places; hazardous waste - waste containing toxic, infectious, explosive, high n and inflammable substances with hazardous characteristics, presenting direct a potential danger to human health and the environment; non-hazardous waste - waste not presenting direct danger to the environment reusable raw materials - waste fit for reuse in production and energy generation, in providing services and collected (prepared) for this purpose; non-reusable waste - waste having limited reusable capacity; or waste • reuse is inefficient from the economic point of view; waste treatment - activity consisting of the processes of waste collection storage, sorting, transportation and neutralisation; waste disposal - storage of waste and/or its deposit in land; neutralisation of waste - treatment of wastes (including incineration) al plants and/or its deposit in land for the purpose of reducing its impact the envi and human health. Article 2. Legislation of Azerbaijan Republic on Waste The legislation of Azerbaijan Republic on Waste consists of the present Law, legislative acts of Azerbaijan Republic and international agreements supported Azerbaijan Republic. Article 3. The area of the Law's application This Law shall be applicable to all juridical and physical persons whose activity generates waste or whose activity is related to waste in Azerbaijan Republic. D:\687321858.doc Article 4. The principles of government policy in regard to waste The following are the principles of government policy in regard to waste: to protect people's health and ecological balance of the environment; to substantiate scientifically the ensuring of ecological balance and economic interests; to establish enterprises related to waste management and to attract funds of governmental and private enterprises, as well as foreign investors for this purpose; to invent and apply low waste technologies; to use economic and other incentive mechanisms in order to include waste in the economic cycle; to monitor compliance with requirements for environmental protection, norms of ecological balance, hygiene regulations (normatives) and sanitary rules; to keep state records on the basis of waste classification and authorization; to ensure release of information to non-government agencies, interested individuals; to take public opinion into consideration in the process of making decisions related to public interest; to provide social security to employees whose work is related to waste; to take national interest into consideration in exercising international co-operation in the area of wastes. Article 5. Regulatory functions of government bodies in the area of wasterelated activities The following are the regulatory functions of government bodies in the area of ^ waste-related activities: to exercise state control in regard to waste; to develop legislative acts and special programs, approve them and exercise state control on their implementation; to provide for economic incentives in legislation covering waste collection and treatment; according to the established procedure; to allocate land for waste disposal, deposit and treatment after having agreed it with relevant bodies of executive power; to co-ordinate the activities of enterprises and organisations with the purpose to detect and reuse waste; in the area of activities relating to waste, to ensure the payment of compensation for damage to the environment by those who have caused that damage; to conduct state ecological expertise (environmental impact assessment); to determine roles regulating transterritorial transportation of wastes; to apply the system of special consent to activities relating to waste; D:\687321858.doc to apply state standards, norms and regulations (normatives) in the area of activities relating to waste; to maintain state records and reporting; to maintain the state cadastre; to ensure the provision of information to the population; to respond to disasters and accidents; to project and construct relevant facilities to store, use and neutralise waste; to provide economic, social and legal conditions for complete waste use and reduction in waste generation; to ensure compliance with legislation by local self-government organisations in their activities relating to waste; to exercise other functions stipulated by legislation. Article 6. Property relations in regard to waste If not otherwise provided for in legislation, juridical and physical persons shall be considered the owners of certain waste from the moment they have received it. The owner shall arrange for taking waste to other enterprises for its reuse and recycle, keep records of waste generated in the production cycle and reused and inform relevant bodies of executive power about it. Chapter II Requirements for activities relating to waste Article 7. Requirements in relation to designing, construction and reconstruction of enterprises, plants and other facilities Juridical and physical persons must comply with the established standards, norms and regulations (normatives) of environmental protection during the design, construction and reconstruction of enterprises, plants and other facilities. They must obtain positive conclusion about the project from relevant bodies of executive power and have other documents regulating the activity related to waste. Article 8. Industrial requirements in regard to waste In the industrial process, juridical and physical persons must: take established standards, norms and quality requirements of environmental protection into consideration; base activities related to waste on special consent; introduce low waste technologies; take stock of waste arising from industrial process, inform a relevant body of executive power about it as well as about waste cycle; execute industrial control in regard to waste; undertake measures to prevent accidents, inform a relevant body of executive power and general public when there is a danger of an accident that may upset ecological balance or when such an accident has taken place. The rules for the implementation of activities generating hazardous waste that cannot be neutralised shall be determined by legislation. Article 9. Conditions of waste treatment D:\687321858.doc The following shall be ensured during waste treatment: environmental safety of technological processes aimed at reducing the quantity of waste, its treatment and neutralisation; if it is not taken into account in technologies, hazardous and non-hazardous waste shall not be mixed during treatment; reduction of real and potential danger during waste treatment; waste shall be gathered in the places of its generation and stored by type in special technically equipped containers or on land especially set aside for this purpose; special containers or land where treated waste is stored, shall be maintained in good condition for the purpose of environmental protection; the isolation of places, where non-reusable waste is buried or stored, from the environment and then the determination of possibilities for its use; the arrangement for waste reuse in places of its generation or at waste treatment plants; the reduction in waste quantity, the implementation of waste treatment and /^ neutralisation through biological, physical-chemical, mechanical-technical, thermal and other methods. Article 10. Requirements to places of waste treatment The determination, designing, construction, use and their liquidation of waste treatment places shall be conducted according to relevant norms and procedures. In selecting sites and technologies for waste treatment, the conditions determined by bodies of executive power based on the requirements of ecological expertise about harmful impact on human health and the environment must be taken into consideration. Monitoring of the environment must be conducted in order to determine the impact of waste treatment sites on the environment. Waste treatment sites must have indicatory signs and observed entrances; complete environmental safety ef technology areas must be ensured. For this purpose, is prohibited to dispose and treat waste in the sites that have not been designated for that. The activity of waste treatment enterprises must be aimed at the reduction in its quantity and its neutralisation. Those enterprises shall base their activity on the procedures stipulated in regulations as well as on the documents certifying right of ownership of waste. Waste treatment enterprises must have plans on responding to emergencies those plans must be approved by relevant bodies of executive power. Article 11. Requirements for waste disposal Waste must be disposed in compliance with permissions by relevant bodies of executive power and the requirements contained in normative acts (regulations). D:\687321858.doc For the purpose of waste disposal and neutralisation, special research (geological, hydrological, etc.) with the consent of relevant bodies of executive power must be conducted; and where necessary, public opinion must be obtained. It is prohibited to bury waste on the territories of cities and other residential sites, resort, hospital, forest and recreation zones, on the territories with underground water, reservoirs with production and drinking water, as well as zones with mineral resources and zones where mining works are conducted. Waste landfills shall be recorded in the landfill state register according to the procedure established by relevant bodies of executive power. Owners must monitor landfill sites according to the procedure agreed with relevant bodies of executive power. Owners of waste disposal sites must conduct necessary rehabilitation works after their operation has been terminated. In order to arrange for rational waste collection, its valuable components (waste from food and textile industry, different metals, paper, etc.) must be collected separately. Article 12. Requirements for cleaning residential areas of household waste For the purpose of neutralisation residents must dispose household waste on designated sites. To dispose, store and bury waste in non-designated sites is prohibited. Residential areas must be cleaned of household waste regularly. Relevant bodies of executive power shall determine rules for cleaning up residential areas, temporary storage of household waste, regular transportation and neutralisation in compliance with sanitary rules, hygiene and environmental regulations (normatives). Article 13. Requirements for waste transportation ~. Relevant bodies of executive power shall determine the rules for waste transportation by vehicles of relevant kind, waste loading and unloading and requirements (norms and rules) for ensuring ecological safety. Carriers of waste shall be responsible for ensuring environmental and human health safety from the time of waste loading to its delivery to juridical and physical persons. After its authorisation hazardous, waste must be transported only by special vehicles. Waste authorisation paper is the document certifying its quantity and impact characteristics. Authorisation of waste shall be implemented by relevant bodies of executive power according to the established procedure. Article 14. Import, export and transit transportation of waste Import, export and transit transportation of waste shall be implemented according to the rules determined by the legislation of Azerbaijan Republic. D:\687321858.doc It is prohibited to import the waste that cannot be treated safely, or pass waste as transit through Azerbaijan Republic, or bring it into the country in order to bury or neutralise. Chapter III D:\687321858.doc