Environmental Protection and The Eighteenth Amend ment Impact of Constitutional Amendments on Environmental Protection Legislation, Analysis of Laws in Force, and Assessment of Implementation Issues. FIRUZA PASTAKIA NATIONAL IMPACT ASSESSMENT PROGRAMME APRIL 2012 Environmental Protection and Eighteenth Amendment 1 CONTENTS ACRONYMS AND ABBREVIATIONS ..................................................................................................... 3 EXECUTIVE SUMMARY ........................................................................................................................ 4 Introduction: legislative jurisdiction for environmental matters ............................................................... 9 Part I: Impact of the Eighteenth Amendment ........................................................................................ 10 1. Federal–provincial jurisdiction issues in PEPA 1997 ................................................................... 10 1.1 Environmental impact assessment ..................................................................................... 10 1.2 Hazardous waste ................................................................................................................ 11 1.3 Hazardous substances ........................................................................................................ 11 1.4 Environmental protection order ........................................................................................... 11 1.5 Control of emissions ............................................................................................................ 12 1.6 Offences and penalties ....................................................................................................... 13 2. Subjects that remain under federal jurisdiction ............................................................................ 13 2.1 International treaties, conventions and agreements ........................................................... 14 2.2 Inter-provincial matters and coordination ............................................................................ 14 2.3 National planning, surveys and research ............................................................................ 14 2.4 Foreign loans and foreign aid.............................................................................................. 14 2.5 Taxation ............................................................................................................................... 15 2.6 Copyright, inventions, trademarks ...................................................................................... 15 2.7 Other matters ...................................................................................................................... 15 3. Part II of the Federal Legislative List ............................................................................................ 16 4. Overlap with federal laws governing other sectors ...................................................................... 16 4.1 Shipping .............................................................................................................................. 17 4.2 Oil and gas, mining ............................................................................................................. 17 4.3 Nuclear energy, nuclear waste ............................................................................................ 18 4.4 Other sectors ....................................................................................................................... 18 5. Overlap with other provincial legislation ....................................................................................... 19 5.1 Local government laws ....................................................................................................... 19 5.2 Development authority laws ................................................................................................ 19 5.3 Laws governing certain types of industry and processes ................................................... 20 5.4 Other provincial laws ........................................................................................................... 20 6. Uniformity ..................................................................................................................................... 20 7. Additional considerations ............................................................................................................. 21 7.1 Federal rules and regulations under PEPA ......................................................................... 21 7.2 Guidelines issued by environmental protection agencies ................................................... 22 7.3 Multilateral environmental agreements ............................................................................... 22 Part II: Review of PEPA 1997 Provisions ............................................................................................. 23 1. Definitions ..................................................................................................................................... 23 2. Lack of clarity in certain provisions ............................................................................................... 23 3. Procedures ................................................................................................................................... 23 3.1 Environmental protection orders ......................................................................................... 24 3.2 Environmental impact assessment ..................................................................................... 24 3.3 Environmental protection agencies ..................................................................................... 24 2 Environmental Protection and Eighteenth Amendment 3.4 Clean-up .............................................................................................................................. 24 3.5 Follow-up, consultation ....................................................................................................... 24 4. Environmental tribunals ................................................................................................................ 25 5. Environmental magistrates ........................................................................................................... 26 6. Appeals ......................................................................................................................................... 26 7. Suo moto powers.......................................................................................................................... 27 8. Role of the police .......................................................................................................................... 27 9. Penalties ....................................................................................................................................... 27 10. Funding and finances ................................................................................................................... 28 10.1 Environmental taxes ............................................................................................................ 29 11. Environmental quality and emissions standards .......................................................................... 29 12. New considerations ...................................................................................................................... 29 12.1 Public participation .............................................................................................................. 30 12.2 Access to information .......................................................................................................... 30 12.3 Strategic environmental assessment .................................................................................. 31 12.4 Environmental audits ........................................................................................................... 31 12.5 Polluter pays........................................................................................................................ 31 12.6 Cross-border or transboundary issues ................................................................................ 31 12.7 Other matters ...................................................................................................................... 31 Part III: EPA Experience in Enforcement .............................................................................................. 32 1. Scope of the law ........................................................................................................................... 32 2. Definitions ..................................................................................................................................... 32 3. Assessment and evaluation ......................................................................................................... 32 4. Functions, procedures, mechanisms............................................................................................ 33 5. Funding, finances, management .................................................................................................. 33 6. Discharges and emissions, environmental quality standards ...................................................... 33 7. Environmental impact assessment............................................................................................... 34 8. Hazardous substances and waste ............................................................................................... 34 9. Environmental tribunals, environmental magistrates ................................................................... 34 10. Environmental protection orders .................................................................................................. 35 11. Offences and penalties ................................................................................................................. 35 12. Gaps ............................................................................................................................................. 35 13. Miscellaneous issues.................................................................................................................... 35 14. Next steps ..................................................................................................................................... 35 REFERENCES ...................................................................................................................................... 36 Annexes ................................................................................................................................................ 37 ANNEX 1: Contitution of Pakistan 1973, Fourth Schedule — impact on environment and interaction with PEPA 1997 provisions .......................................................................................... 38 ANNEX 2: Multilateral environmental agreements .............................................................................. 42 ANNEX 3: Pakistan Environmental Protection Act 1997 — analysis of issues .................................... 44 ANNEX 4: Guidelines issued by environmental protection agencies ................................................... 78 Annex 5: EPA feedback on enforcement issues ................................................................................... 79 ANNEX 6: Analysis of Rules and Regulations issued under PEPA 1997 ............................................ 89 Environmental Protection and Eighteenth Amendment 3 ACRONYMS AND ABBREVIATIONS ADP annual development programme EEZ exclusive economic zone EIA environmental impact assessment Eighteenth Amendment Constitution (Eighteenth Amendment) Act 2010 EPA environmental protection agency EPO environmental protection order GB Gilgit-Baltistan ICT Islamabad Capital Territory IEE initial environmental examination IUCN International Union for Conservation of Nature KP Khyber Pakhtunkhwa LGO Local Government Ordinance 2001 MEA multilateral environmental agreement NEQS National Environmental Quality Standards NIAP National Impact Assessment Programme NWFP North-West Frontier Province (now Khyber Pakhtunkhwa) Pak EPA Pakistan Environmental Protection Agency PEPA 1997 Pakistan Environmental Protection Act 1997 SDF sustainable development fund SEA strategic environmental assessment 4 Environmental Protection and Eighteenth Amendment EXECUTIVE SUMMARY The Constitution (Eighteenth Amendment) Act 2010 gives provincial governments exclusive powers to legislate on the subject of “environmental pollution and ecology”. The implications of this shift in jurisdiction are analysed in this study. When the Pakistan Environmental Protection Act (PEPA) 1997 operated as a federal law, any contradictory provisions in other laws, whether federal or provincial, were nullified because PEPA 1997 had overriding effect. But this is no longer the case. With environmental protection legislation operating at the provincial level, all federal laws now override it. Prior to the enactment of the Eighteenth Amendment, PEPA 1997 governed all operations and activities that have the potential to cause environmental damage. This included subjects such as nuclear power for which only the federal government may legislate. This too is no longer the case. The federal government retains exclusive authority over a number of subjects that should be regulated by environmental law but the ambit of that law will now no longer extend to them. Provincial governments have ahead of them the task of formulating their own environmental legislation. But, as the analysis in this study will show, this is no simple matter. A great number of critically important issues will need to be considered before any provincial legislative action can begin. This study is divided into three parts. Part I discusses the implications of the Eighteenth Amendment on environmental protection legislation, Part II examines in depth the provisions of PEPA 1997 to highlight issues related to the substance of the law and Part III summarises comments received from environmental protection agencies concerning the problems they have faced in implementing PEPA 1997. The findings of this study will be used to prepare a draft Provincial Environmental Act. Part I: Impact of the Eighteenth Amendment An effective environmental protection law depends, among other things, on the establishment of a uniform protection regime across the country. Another factor that contributes to effectiveness is the comprehensiveness of the legislation in terms of the activities and processes it covers. An analysis of PEPA 1997 provisions, examined in the light of the amended Fourth Schedule to the Constitution, raises a number of issues on both counts. Matters under federal authority, jurisdictional conflict Currently, the federal government retains legislative jurisdiction over a number of subjects, many of which involve activities or processes that have a direct impact on the environment and so require regulation. But with environmental matters now under the exclusive authority of the provinces, it is not clear how such activities are to be regulated. Areas in which this problem arises include the following: • Environmental impact assessment for projects and activities on the Federal Legislative List (example, nuclear power plants, major ports, highways). • Import of hazardous waste (import is a federal subject). • Control of pollution in maritime zones, accidents at sea (provinces have limited powers in the marine jurisdiction). • Regulation of hazardous substances on the Federal List (for example, radioactive materials, nuclear waste). • Environmental protection orders related to matters on the Federal List (for example, pollution from ships, an accident at a nuclear facility). • Standards for emissions and noise from facilities on the Federal List (for example, airports). • Offences and penalties with respect to matters on the Federal List. • International treaties, conventions and agreements related to the environment (implementation of treaties, reporting). Environmental Protection and Eighteenth Amendment 5 • Inter-provincial coordination in environmental matters (uniformity in emissions standards, EIA procedures and requirements, penalties); the extent of influence that provincial governments will have in the decisions of the Council of Common Interests. • National planning, surveys and research, meteorological organisations (environmental planning, planning for sustainable development, climate change studies, mitigation planning for climate change). • Foreign loans and foreign aid (access to donor funding for provincial environmental projects). • Taxation (environmental fiscal reform measures, green taxes). • Copyright, inventions, trademarks (benefit sharing for genetic resources, intellectual property rights with respect to traditional knowledge associated with genetic resources). • Jurisdiction of environmental tribunals with respect to matters in the Federal List. • Environmental offences related to matters in the Federal List. • Federal regulatory authorities and their role with respect to environmental matters (for example, nuclear regulatory authorities, regulatory authorities for sectors such as energy, aviation, shipping and telecommunications). Overlap with federal laws governing other sectors With environmental protection legislation now a provincial matter, issues arise about the interaction of such laws with federal legislation. Prior to the Eighteenth Amendment, any inconsistency between PEPA 1997 provisions and those of other laws was nullified by the fact that PEPA 1997 had overriding effect. This is no longer the case. Subjects governed exclusively by federal laws which will now take precedence over provincial environmental law are as follows: • Shipping (jurisdiction over marine waters for pollution control, oil spills, environmental protection along the coastline, accidents in ports). • Oil and gas, mining (oil and gas exploration, petroleum production, certain types of mining and mineral development activities). • Nuclear energy, nuclear waste (“nuclear damage”, governed by federal law, does not cover damage to natural resources and the environment; no requirements for impact assessment). Similarly, the following subjects are either wholly or partly governed by federal law: • highways • railways • power generation and electricity • factories • pesticides • imports • quarantine • public health • dangerous cargo and explosives • land acquisition (in the national interest as well as specifically for mining) • cantonment areas. Overlap with other provincial legislation Assuming that provincial environmental laws are provided overriding effect, at the provincial level the issue is not so much of jurisdictional conflict as it is of duplication. Contradictory provisions in other provincial legislation will be nullified, leaving many laws with sections that have no legal effect. There are, however, some cases where overlaps or duplication may occur. These are as follows: • Local government laws (duplication, but also an opportunity to develop a hierarchy of environmental protection measures). • Development authority laws (most contain no environmental protection provisions, some allow activities that undermine the fundamental objectives of environmental protection). • Laws governing certain types of industry and processes. 6 Environmental Protection and Eighteenth Amendment Uniformity There are concerns about the administrative consequences of differing protection regimes in different provinces, and the procedural difficulties and inter-provincial conflict that could arise as a result. There is in addition the question of Pakistan’s international obligations under various multilateral environmental agreements (MEAs), since the “implementing of treaties and agreements” remains a federal subject. Although the provinces are now in charge of environmental matters, many operations, activities and processes remain beyond their reach. Nor is it clear how environmental impact assessment requirements will apply in the case of such projects. The Pakistan Environmental Protection Agency (Pak-EPA) is now responsible only for Islamabad and the ‘special areas’, while provincial EPAs have not been delegated powers with respect to matters on the Federal List. As provinces develop their own environmental legislation, it is of the utmost importance that they agree to adopt common standards which can subsequently be strengthened by individual provinces but not weakened. In addition, the federal and provincial governments should begin immediately to negotiate a delegation of powers so that subjects on the Federal List do not escape the net of environmental regulation. For Pakistan’s international commitments under environmental treaties, meanwhile, a coordinating mechanism is required. Additional measures and considerations There are a number of parallel measures that will be required for the environmental protection legislative regime to function properly as a whole, they include the following: • Rules and regulations under PEPA must be adapted and reissued along with the provincial environmental law. • Draft rules under preparation need to be finalised. • New instruments are needed to cover matters that have not yet been properly addressed in the law. • Guidelines issued by environmental protection agencies for specific sectors should be assessed, amended if necessary, and adopted by all the provinces. • Requirements for the implementation of multilateral environmental agreements must be included in provincial environmental laws, and a mechanism for reporting needs to be developed. Part II: Review of PEPA 1997 provisions In the coming months, provinces will be working to finalise their environmental laws in order to take up the challenge of environmental management at the provincial level. Whether the text of PEPA 1997 is used as a template and amended, or whether new legislation is drafted from scratch, this exercise provides an opportunity to address some of the other shortcomings of PEPA 1997. The more important of these are as follows: • Definitions: certain key terms have been omitted (for example, marine pollution, biological waste); some definitions are inconsistent or outdated (for example, pesticides, agricultural waste). • Lack of clarity in certain provisions (for example, environmental laboratories, pollution charge, functioning and jurisdiction of environmental tribunals and environmental magistrates). • Procedures need to be simplified, clarified or refined (for example, procedures related to environmental protection orders, environmental impact assessment, environmental protection agencies). In some cases, procedures have not yet been defined (clean-up requirements, follow- up procedures, consultation). • Environmental tribunals and environmental magistrates (powers, jurisdiction, procedures for hearing complains); appeals and the role of the High Court; suo moto powers. • Role of the police, enforcement responsibility of EPA officers. Environmental Protection and Eighteenth Amendment 7 • Penalties need to be reassessed, and revised based on the environmental impact of offences rather than the type of offence. The purpose of administrative penalties needs to be clarified. • Funding for mechanisms created under PEPA 1997 is not guaranteed (for example, sustainable development funds); funds recovered under PEPA 1997 are not channelled back into environmental work; new sources of revenue should be introduced (for example, environmental taxes). • Environmental quality and emissions standards must be uniform, and no variations should be permitted in terms of geographical area unless it is to strengthen the standards. The relevant provisions must be amended. The review of PEPA 1997 also brings to light areas that have not so far been covered by the law. These include the following subjects: • Public participation must be an integral part of all procedures. • Access to information must be guaranteed, and situations where information may be withheld must be specified and kept to a minimum. • Strategic environmental assessment (SEA) is becoming standard best practice in many countries, and should be introduced in this country. • Environmental audits should be required, covering all types of industrial and commercial operations with a potential impact on the environment regardless of scale or of when they began operations. • The ‘polluter pays’ principle should be properly integrated into the law, with provisions for follow- up inspections and procedures to ensure that clean-up is carried out at the polluter’s expense. • Cross-border or transboundary issues need to be taken into account with respect to the country’s participation in international environmental programmes as well as concerning cross-boundary pollution issues between provinces. Part III: EPA experience in enforcement EPA members from all four provinces, along with Gilgit-Baltistan, were asked to provide their assessment of issues that arise in the implementation of PEPA 1997 in its current form. The purpose of this exercise was to collect information that could be used to amend the law in order to improve its operation. Their comments cover a broad range of issues, including the following:1 • Scope of the law: coastal provinces are concerned that the scope of PEPA 1997 does not extend to marine waters. • Definitions: EPAs have noted that a number of key definitions are missing from PEPA 1997 (for example, marine pollution, commercial activity, contamination, ambient air, coastal waters, coastal pollution, marine pollution, polluter, littering). • Assessment and evaluation mechanisms are required for entities established under PEPA 1997 (for example, the Environmental Protection Council and the sustainable development fund). • Functions, procedures and mechanisms need to be streamlined (for example, functions of the EPAs, working procedures for the sustainable development fund, mechanisms for issuing environmental protection orders, procedures for levying the pollution charge). • Funding, finances, management: financing for the sustainable development fund is not guaranteed or fixed; a separate account should be established into which monies collected from fees and charges are paid; all fines and fees relating to IEE, EIA, environmental reports and laboratory analysis should be deposited in a separate fund. • Discharges and emissions, environmental quality standards: certain types of discharges have not been included (for example, discharges from processes); the recipient (receiving source) of discharges is not taken into account; EPAs do not have the power to add sources of pollution to the list of emissions regulated by PEPA 1997; rules are needed to regulate vehicle emissions; pollution charges should be specified and should be determined annually. • Environmental impact assessment: the IEE/EIA Regulations 2000 should be revised, with greater clarity introduced in the categorisation of projects and activities; small-scale projects which do not 1 The Punjab EPA did not provide its comments in the prescribed format. 8 Environmental Protection and Eighteenth Amendment need to undertake an IEE or EIA should be required instead to submit an environmental report; the director-general of the EPA should have the power to issue a stay order, to halt all project activity (temporarily or permanently), and to impose spot fines • Hazardous substances and waste: licensing provisions should be revised; a list should be developed of hazardous substances that are to be regulated under the law. • Environmental tribunals, environmental magistrates: provisions on the selection of tribunal members need to be amended; a separate account should be set up into which fines imposed by the tribunal can be paid; the role of environmental magistrates needs to be clarified. • Environmental protection orders: procedures and mechanisms are not clearly defined; it is not clear how penalties are to be collected; the director-general of the EPA should have the power to levy spot fines on those violating environmental protection orders. • Offences and penalties need to be rationalised; current penalties do not keep up with inflation; pollution charges should be revised annually; procedures for the determination of pollution charges are unclear. In addition to these matters, many EPAs have expressed concerns that PEPA 1997 in its current form fails to address certain issues. Apart from the need to cover maritime zones, and marine and coastal pollution, these include: • solid waste disposal • radiation and radioactive waste • vibrations • pollution or environmental damage from commercial activities • littering and damage to the physical environment • municipal services, sanitation, solid waste management, safe drinking water. To be fair, some of these matters were covered in detail under the provincial Local Government Ordinances of 2001. Those Ordinances are no longer in force but it is only a matter of time before all provinces enact new or amended local government legislation. Rather than duplicating provisions on municipal services, it is advisable that broad powers are provided under provincial environment law for the management of such services at the local level, and that specific provisions in this regard are dealt with in local government laws. Next steps The findings of this study are to be used to prepare a draft Provincial Environmental Act. Given the complexity of the issues raised here, the opinion of legal experts will be sought once the draft has been finalised. The draft Act will then be submitted to the provinces for their feedback. A final draft will then be prepared by each province and submitted for approval to the provincial assembly.