– Work Plan –
Pilot Project: Developing a Wastewater Discharge Fee Program
Central Environmental Authority
Ministry of Environment - Sri Lanka
1.Background
Sri Lanka has adopted a traditional command and control approach to environmental protection where Central Environmental Authority (CEA) has responsibility for water pollution control. While all industrial facilities discharging wastewater are required to have treatment facilities, water pollution continues to be a major environmental challenge. The total industrial organic pollution in Sri Lanka is about 700,000kg/day in terms of Chemical Oxygen Demand (COD) with the highest loading are from the textiles, food and chemical sectors. The total cost for industrial wastewater treatment with average of 90 percent efficiency is 4.8 Rs. billion per year.
To address this situation, CEA has considered establishment of a wastewater discharge fee (WDF) scheme that will create economic incentives for industry to comply with discharge standards, and generate revenues that can support an environmental fund. As a first step, CEA conducted a pilot study on industrial enterprises located within the KelaniRiver basin. Out of fifty eight industries surveyed in the study, 50 percent did not have wastewater treatment facilities, 20 percent had facilities but did not meet the required discharge standards, and 30 percent had adequate wastewater treatment facilities which met the discharge standards.
Based on the findings of the study, CEAdeveloped apreliminary pollution charge formula and the required procedures to calculate the discharge fees based on COD. The National Environment Act (NEA), however, does not have adequate provisions to levy charges from industries based on pollution loads. The CEA has also preliminarily identified priority industrial sectors to be covered in the first phase of implementation of the scheme which includes most high polluting sectors in the country.
As a next step, CEA would like to support efforts to amend the NEA to allow for a WDF scheme, andevaluate and improve the preliminary scheme. In doing this, the CEAwould like to share experience with other countries that have similar programs in place.
The Asian Environmental Compliance and Enforcement Network (AECEN) is a regional practitioner network that promotes improved compliance with environmental legal requirements in Asia through regional exchange of innovative policies and practices. As a member of AECEN, CEA worked with AECEN in 2006 to prepare a rapid assessment of the country’s compliance and enforcement program. As one assessment finding, the report was to “move forward on pilot testing and implementing the waste water discharge fee scheme.” The U.S. Agency for International Development (USAID) Environmental Cooperation-Asia (ECO-Asia) program is the principal funding agency for AECEN.
2.Objectives
CEA and AECEN will cooperate in a series activities aimed at establishing a WDF program. The main project objectives are to: (1) develop the enabling laws, regulations and procedures for establishing a WPF program based on country priorities and constraints; and (2) facilitating dialogue with regional counterparts.
3.Program of Cooperation
CEA and AECEN will cooperate over a 15-18 month timeframe to implement a series of activities that will enable CEA establishment of a WDF program. Key tasks include: (1) establishment of a working group; (2) legal and regulatory reform; (3) technical analysis; and (4) regional cooperation. CEA and AECEN will complete activities in parallel to ensure that the legal and regulatory development process makes best use of technical information and stakeholder inputs.
Establishment of Working Group
The CEA will convene theWDF Working Group to guide CEA and ECO-Asia in the implementation of the work plan activities. Chaired by CEA, the Working Group will include representatives from CEA and relevant line agencies. CEA will review and approve all draft pilot project outputs, including work plans, draft legal amendments, regulations and WDF policies, plans and procedures.
Legal and Regulatory Development
It is necessary to amend the NEA for establishment of a WDF program under the authority of the CEA. To support this effort, AECEN will assist CEA in developing a summary of NEA amendments necessary to support establishment of a WDF program. The summary of possible amendments will guide governmental agencies with overall responsibility for amending NEA.
In addition to legal amendments, AECEN will also provide technical assistance in preparing draft regulations on wastewater fees based on technical studies (see below). To support this effort, CEA will host a consultative process for soliciting stakeholder inputs, including the regulated industry, on proposed policies, plans and procedures. The WDF Working Group will review and approve proposed WDF proposed policies, plans and procedures.
For project inputs, AECEN will provide technical assistance via international and national experts, who will prepare draft legal amendments and regulations on procedures. AECEN will also support consultative workshops hosted by CEA. To ensure effective and efficient development of new policies, plans and procedures, CEA will dedicate staff at the project management and implementation support levels to support analysis and facilitate stakeholder inputs.
Technical Studies and Analysis
To inform the legal and regulatory development process, under the guidance of the WDF Working Group, CEA will lead focused efforts to gather technical information on: (1) selection process and selection of industrial target sectors; (2) development of procedural guidelines; and (3) assessment of institutional requirements and necessary resources for developing and implementing the WDF program.
While AECEN can access international and national experts to complete these studies, CEA will dedicate technical staff to provide inputs on priorities and challenges, and review all necessary concepts, proposals and plans. CEA will also host technical stakeholder meetings, as necessary, to gain feedback on proposed plans. If practical, AECEN will cooperate with technical institutes to complete technical studies.
Stakeholder Consultation and Regional Cooperation
To support policy formation and adoption of best practices, CEA will facilitate stakeholder consultation meetings to share ideas and obtain feedback from the regulated community. The WDF Working Group will also meet as often as necessary to review pilot results and provide guidance on project direction. As appropriate, ECO-Asia will support these efforts by assisting with consultation workshops.
To ensure access to best practices in the region, ECO-Asia will facilitate cooperation between CEA and other stakeholder, and counterparts in the region who have developed and implemented similar programs. Cooperative activities could include technical exchanges, observational programs and provision of information, and will support legal and technical aspects of the project.
4.Implementation Schedule
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DRAFTJuly 30, 2007