DRAFT REGULATION ON INTEGRATED ENVIRONMENTAL PERMIT

FIRST SECTION

Purpose, Scope, Basis, Definitions

Purpose and Scope

Article 1-(1)The objective of this By-Law is to lay down procedures and principles designed to prevent or, where that is not practicable, to reduce emissions into air, water and land and to prevent the generation of waste, by establishing an integrated pollution prevention and control system, in order to achieve a high level of protection of the environment taken as a whole.

(2) This By-Law shall apply to the operationswhere the activities specified inAnnex-1are implemented.

(3) The installations or parts of installations used for research activities, development activities or the testing of new products and processes, as well as nuclear power stations, are excluded from the scope of this By-Law.

Basis

Article 2-(1) This By-Law was prepared on the basis of article 11 of the Environmental Law numbered2872 and dated 09/08/1983 and Article 9 of the Decree Law numbered 644, in parallel with directives numbered2010/75/EC and 2008/01/EC of the European Union.

Definitions

Article 3-(1) For the purposes of the provisions of this By-Law, the following definitions shall apply:

a) Ministry: the Ministry of Environment and Urban Planning.

b)Project Application File: Documentation file prepared by the operator for the Integrated Environmental Permit, including all documents required, if applicable, in article 15 of this By-Law.

c) Environmental inspection: All actions, including site visits, monitoring of emissions and checks of internal reports and follow-up documents, verification of self-monitoring, checking of the techniques used and adequacy of the environmental management of the installation, undertaken by or on behalf of the Competent Authority to check and promote compliance of installations with their permit conditions and, where necessary, to monitor their environmental impact, after the installation starts operating.

ç) Environmental quality standards(receiving environment standards): The set of requirements which must be fulfilled at a given time by a given environment or particular part thereof, as specified in the applicable legislation.

d) Environmental Impact Assessment Report: The report to be prepared in accordance with pre-determined special format established in article 11 concerning the projects specifiedin the list included in Annex-1 of the By-Law on Environmental Impact Assessment numbered 26939 and dated 17/07/2008 or the projects included in Annex-2 for which a decision of “Environmental Impact Assessment Required” has been issued by the Ministry.

e) Emission: The direct or indirect release of substances, vibrations, heat or noise from individual or diffuse sources in the installation or in the plant into air, water or land.

f) Emission limit values (ELVs): The mass, expressed in terms of certain specific parameters, concentration and/or level of an emission, which may not be exceeded during one or more periods of time.

g) Integrated Environmental Permit: The written authorisation in which permission is given for the purposes of protection of the environment and human health, to operate the activities in Annex-1 under certain conditions in compliance with the purpose and the provisions of this By-Law.

ğ) Equivalent parameters or technical measures: Reference parameters or measures which shall be taken into account, on a supplementary or complementary basis, where pollutants whose emission levels are defined in BAT reference documents or BAT conclusions cannot be identified according to the characteristics of the installation.

h) Emerging technique: Atechnique for an industrial activity that, if commercially developed, could provide either a higher general level of protection of the environment or at least the same level of protection of the environment and higher cost savings than existing best available techniques.

ı) General binding rules: emission limit values or other conditions that are adopted with the intention to set permit conditions applicable for one sector as well as all sectors.

i) Public: Citizens of the Republic of Turkey, foreigners residing in Turkey and one or more real persons or legal entities within the framework of national legislation and their associations, organizations or groups.

j) Concernedreal personand/or legal entities: the public affected or likely to be affected by taking of a decision on the granting or the updating of a permit or the determining of permit conditions, and non-governmental organisations promoting environmental protection and meeting any requirements under national law.

k) Operation: Legal existence of the installation/installations and activities.

l) Operator: Any real persons or legal entities who operate in whole or in part the installationor the activity subject to the Integrated Environmental Permit, or who has the right of property and whois entitled tolease or to use other legal rights,

m) Pollution: The direct or indirect introduction, as a result of human activity, of substances, vibrations, heat or noise into air, water or land which may be harmful to human health or the quality of the environment, result in damage to material property, or impair or interfere with amenities and other legitimate uses of the environment;

n) Substance: Solid, liquid and gaseous chemical elements and compounds, excluding the radioactive substances defined in Article 2 of the Radiation Safety Decree published in the Official Gazettenumbered 18861 and dated 07/09/1985, the genetically modified microorganisms defined in Article 4 of the “Regulation on Genetically Modified Organisms and Products” published in the Official Gazettenumbered 27671 and dated 13/08/2010, and the substances that are included in the definition of genetically modified organisms established in Article 2 of the Biosafety Actnumbered 5977 and dated 18/03/2010.

o) Baseline report: Report on the state of soil and groundwater contamination.

ö) Best available techniques (BAT): The most effective and advanced stage in the development of activities and their methods of operation which indicate the practical suitability of particular techniques for providing the basis for emission limit values and other permit conditions designed to prevent and, where that is not practicable, to reduce emissions and the impact on the environment as a whole:

1)Techniques:Includes both the technology used and the way in which the installation is designed, built, maintained, operated and decommissioned.

2)Available techniques:Means techniques implemented by taking into consideration the costs and advantages under economically and technically sustainable conditions, as long as they may be applied technically and economically by the operator, without considering whether or not the techniques are used or produced inside Turkey.

3)Best:Means most effective in achieving a high general level of protection of the environment as a whole.

p) BAT reference document: Drawn up and published by the EU commission for Annex-1 activities and describing, in particular, applied techniques, present emissions and consumption levels, techniques considered for the determination of best available techniques as well as BAT conclusions and any emerging techniques, giving special consideration to the criteria listed in Annex-3.

r) BAT conclusions: Adocument containing the parts of a BAT reference document laying down the conclusions on best available techniques, their description, information to assess their applicability, the emission levels associated with the best available techniques, associated monitoring, associated consumption levels and, where appropriate, relevant site remediation measures.

s) Emission levels associated with the best available techniques: The range of emission levels obtained under normal operating conditions using a best available technique or a combination of best available techniques, as described in BAT conclusions, expressed as an average over a given period of time, under specified reference conditions.

t) Existing installation: An installation which is in operationbefore the date on which this By-Law enters into force and which is subject to the Integrated Environmental Permit.

u) Substantial change: Achange in the nature or functioning, or an extension, of an installation according to article 13 paragraph 2, which may have significant negative effects on human health or the environment.

ü) Non-substantial change: Any change to the characteristics, or to the operation, or to the size, of the installation other than those mentioned in article 13 paragraph 2 of this by-law.

v) Hazardous substances: Substances, mixtures or products as described in the by law on control of big industrial accidents published in the Official Gazette numbered 27676 and dated 18/08/2010.

y) Installation: Aconstant activity or whole of the activities where all other operations are carried out, which can have effect on pollution and which is technically connected to the activities of one or more activities listed in Annex-1.

z) Soil: A living natural resource covering land as a thin layer which is composed through the decomposition of minerals and organic wastes.

aa) Compatibility document: The report issued by the Competent Authority after a compatibility check carried out by the competent authority for the purpose of verifying that the installation satisfies the conditions that were imposed in the Integrated Environmental Permit.

bb) Competent Administration: Relevant public organizations and institutions involved in the procedure for granting the Integrated Environmental Permit and different from the Competent Authority.

cc) Competent Authority:Central and provincial organization of the Ministry.

SECOND SECTION

General Principles on Integrated Environmental Permits

Installations subject to Integrated Environmental Permits

Article 4-(1) An Integrated Environmental Permit must be obtained for the construction, assembly, operation or relocation of, and making of any substantial changes to, installations in which any of the activities included in Annex-1 are carried on. If, upon implementation of any changes, the installation reaches the threshold values specified in the list found in Annex-1, an Integrated Environmental Permit must be obtained.

(2) For activities subject to the Environmental Impact Assessment By-Law listed in Annex1, an integrated environmental permit application process starts following submittal of the specially formatted EIA report, and for activities listed in Annex2, the aforementioned process starts following presentation of the project information file.

(3) Integrated Environmental Permit shall be granted by the Ministry. The Ministry may transfer such power to the provincial organization.

Obligations of the operator and general binding rules

Article 5-(1)The installations in which any of the industrial activities included in the scope of application of this By-Law are carried out shall fulfill the following obligations:

(a) Obtain an Integrated Environmental Permit and fulfill the conditions established in that Permit.

(b) Submit the documentationand information required per the scope of the environmental legislationto the Competent Authority so that compliance of the activities with the permit conditions may be checked.

(c) Notify the Competent Authority any changes, whether substantial or not, that is intended to be made atthe installation.

(ç) Notify the Competent Authority within twenty business daysof any transfer of ownershipor change of the name of the installation.

(d) Take measures considered necessary by the relevant legislation in order to prevent accidents and to limit their consequences to human health or to the quality of the environment.

(e) If applicable, take any appropriate complementary measures that the Competent Authority considers necessary to limit the environmental consequences and to prevent further possible incidents or accidents.

(f) Provide the necessary assistance and cooperation during site visit, inspection and control activities.

(2) During the establishment and operation of the facilities required to obtain integrated environmental permits, the following are to be observed;

a) All the appropriate preventive measures are taken to prevent and to reduce pollutionspecifically by the application of the best available techniques.

b) The generation of waste is prevented, minimized or where waste is generated, it is prepared for re-use, recycling, recovery or, where that is technically and economically impossible, it is disposed of while avoiding or reducing any impact on the environment.

c) Energy, water, raw materials and other sources are used efficiently.

ç) The necessary measures are taken upon definitive cessation of activities to avoid any risk of pollution and return the site of operation to the satisfactory state defined in accordance with Article 29.

General Binding Rules

Article 6-(1) Without prejudice to the obligation to obtain an Integrated Environmental Permit, the Competent Authority may impose general binding rules for certain categories of activities listed within Annex-1.

(2) Where general binding rules exist, the permit shall be prepared to also include such rules.

(3) General Binding Rules shall be determined in a way ensuring environmental protection equivalent to and in compliance with that achievable with Integrated Environmental Permit conditions.

(4) General binding rules shall be kept up to date by considering developments in the best available techniques and the provisions specified inparagraph five of Article 28.

Coordination between the Competent Administrations

Article 7-(1) Competent Authority shall ensure the effective and efficient cooperation and coordination between the competent administrations in the process of the Integrated Environmental Permit.

Principles fordetermining emission limit values, equivalent parameters and technical measures

Article 8-(1)The emission limit values for polluting substances shall apply at the point where the emissions are discharged into the receiving environment. Any dilution prior to that point shall be disregarded when determining those values. With regard to indirect releases of polluting substances into water, the effect of a water treatment plant may be taken into account when determining the emission limit values of the installation concerned, provided that a high level of protection of the environment as a whole is guaranteed and provided.

(2) The emission limit values, equal parameters or technical measures shall be set based on the best available techniques, taking into account the technical details, geographical location and local environmental conditions of the installations under the scope of Annex-1, without setting conditions related to the usage of a certain technique or technology.

(3) The emission limit valuesconstituting the basis forIntegrated Environmental Permit shall be set in accordance with the following principles:

a) BAT conclusionson BAT Reference Documents shall apply as BAT conclusions except for paragraphs four and five of this article and without prescribing the use of any technique or specific technology.

b) The nature of the emissions and their ability to shift from one environmental medium to another shall be considered.

c) Permit conditions shall include rules in order to fulfill commitments established in international treaties and shall be determined in a way ensuring the high level of environmental protection as a whole.

ç) The impact of the emissions on human health and environmental conditions as a whole shall be taken into account.

d) The emission limit values setin the legislation in force on the date of the permit shall not be exceeded.

(4) The Competent Authority for granting the Integrated Environmental Permit shall set emission limit values whichensure that, under normal operating conditions, emissions do not exceed the emission levels associated with the best available techniques as laid down in the decisions on BAT conclusions through either of the following:

a) Emission limit values shall be expressed for the same or shorter periods of time and under the same reference conditions as those emission levels associated with the best available techniques; or

b)Where emission limit values are expressed differently from those in point (a), the Competent Authority shall, at least annually, assess the results of emission monitoring in order to ensure that emissions under normal operating conditions have not exceeded the emission levels associated with the best available techniques.Conditions of the Permit shall be reviewed within the scope of Article 28 provided that emission limit values are exceeded.

(5) Without prejudice to Article 10, the Competent Authority for granting the Integrated Environmental Permit may, in specific cases, set less strict emission limit values. Such exemption may apply only where an assessment shows that the achievement of emission levels associated with the best available techniques as described in BAT conclusions would lead to disproportionately higher costs compared to the environmental benefits due tothe geographical location or the local environmental conditions of the installation concerned or the technical characteristics of the installation concerned.

(6) The Competent Authority shall specifyin the permit conditions the reasons for the application of the previous paragraph including the result of the assessment and the justification for the conditions imposed.In the permit conditions;

a) The emission limit values set in accordance with the previous paragraph shall not exceed the emission limit values in the applicable legislation.

b) The Competent Authority for granting the Integrated Environmental Permit shall take all precautions to achieve a high level of protection of the environment as a whole.

c) The Competent Authority shall re-assess the application of paragraphsfourand five as part of reconsideration of the permit conditions pursuant to Article 28.

(7) The Competent Authority may, on condition that it is specified in the provisions of the Integrated Environmental Permit, grant temporary exemptions from the requirements of the paragraphs three andfour of this Article and from Article 5.2. (a) for the testing and use of emerging techniques for a total period of time not exceeding nine months, provided that after the period specified, either the technique is stopped or the activity achieves at least the emission levels associated with the best available techniques specified in the Integrated Environmental Permit.

(8) The Competent Authority shall follow the developments in best available techniques and of the publication of any new or updated BAT conclusions and make that information available to the real persons and legal entities concerned.

(9) The Competent Authorityshall encourage the application of emerging techniques, in particular for those emerging techniques identified in BAT reference documents.

Determination of monitoring requirements

Article 9-(1) The monitoring requirements referred to in Article21(1)(d) shall, where applicable, be based on the conclusions on monitoring as described in the BAT conclusions.

(2) The frequency of the periodic monitoring referred to in Article 21(1)(i) shall be determined by the Competent Authority in each individual installation or in general binding rules.

(3) Periodic monitoring shall be carried out at least once every 5 years for ground water and 10 years for soil. This duration shall be re-evaluated according to the evaluation results of the risk of contamination by the Competent Authority.

(4) The measurements and analysis within the context of this By-Law shall be carried out by laboratories authorized by the Ministry.