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LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF ATMOSPHERIC POLLUTION

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No. 32

The Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution, revised and adopted at the 15th
Meeting of the Standing Committee of the Ninth National People’s Congress of the People’s Republic of China on April 29, 2000, and
the revised edition is hereby promulgated and shall enter into force as of September 1, 2000.

Jiang Zemin, President of the People’s Republic of China

April 29, 2000

Law of the People’s Republic of China on the Prevention and Control of Atmospheric Pollution ContentsChapter I General Provisions

Chapter II Supervision and Management of the Prevention and Control of Atmospheric Pollution

Chapter III Prevention and Control of Atmospheric Pollution by the Burning of Coal

Chapter IV Prevention and Control of Pollution Discharged by Motor-driven Vehicles and Vessels

Chapter V Prevention and Control of Pollution by Waste Gas, Dust and Malodorous Substances

Chapter VI Legal Liability

Chapter VII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the purpose of preventing and controlling atmospheric pollution, protecting and improving people’s environment
and the ecological environment, safeguarding human health, and promoting the sustainable development of economy and society.

Article 2

The State Council and the local people’s governments at various levels must incorporate the protection of the atmospheric environment
into their national economic and social development plans, make rational plans for the distribution of industrial layout, strengthen
the scientific research on the prevention and control of atmospheric pollution, adopt preventive and curative measures against atmospheric
pollution, and protect and improve the atmospheric environment.

Article 3

The State takes measures to control or gradually reduce, in a planned way, the total amount of the main atmospheric pollutants discharged
in local areas.

The local people’s governments at various levels shall be responsible for the quality of the atmospheric environment under their own
jurisdictions, making plans and taking measures to make the quality of the atmospheric environment under their own jurisdictions
meet the prescribed standard.

Article 4

The administrative department of environmental protections under the people’s governments at or above the county level shall be the
instrument conducting unified supervision and management of the prevention and control of atmospheric pollution.

The administrative departments of public security, transportation, railways and fishery at various levels shall, by performing their
respective functions, conduct supervision and management of the atmospheric pollution caused by motor-driven vehicles and vessels.

The relevant administrative departments under the people’s governments at or above the county level shall, within their respective
functions, supervise and administer the prevention and control of atmospheric pollution.

Article 5

All units and individuals shall have the obligation to protect the atmospheric environment and shall have the right to report on or
file charges against units or individuals that cause pollution to the atmospheric environment.

Article 6

The administrative department of environmental protection under the State Council shall establish national standards for atmospheric
environment quality.

The people’s governments of provinces, autonomous regions and municipalities directly under the Central Government may establish their
local standards for items not specified in the national standards for atmospheric environment quality and report the same to the
administrative department of environmental protection under the State Council for the record.

Article 7

The administrative department of environmental protection under the State Council shall, in accordance with the national standards
for atmospheric environment quality and the country’s economic and technological conditions, establish national standards for the
discharge of atmospheric pollutants.

The people’s governments of the provinces, autonomous regions and municipalities directly under the Central Government may establish
their local discharge standards for those not specified in the national standards for the discharge of atmospheric pollutants. With
regard to those already specified in the national standards for the discharge of atmospheric pollutants, they may set local standards
which are more stringent than the national standards and report the standards to the administrative department of environmental protection
under the State Council for record.

Where the local standards for the discharge of atmospheric pollutants by motor-driven vehicles and vessels established by the people’s
governments of provinces, autonomous regions and municipalities directly under the Central Government are more stringent than the
national discharge standards, they shall be subject to the approval of the State Council.

Units that discharge atmospheric pollutants in areas where the local discharge standards have been established shall observe such
local standards.

Article 8

The State adopts economic and technological policies and measures to facilitate the prevention and control of atmospheric pollution
and comprehensive utilization.

The people’s governments at various levels shall reward units or individuals that have made outstanding achievements in the prevention
and control of atmospheric pollution or in the protection and improvement of the atmospheric environment.

Article 9

The State encourages and supports the scientific and technological research into the prevention and control of atmospheric pollution,
disseminates advanced, feasible technologies for the prevention and control of atmospheric pollution; encourages and supports the
development and utilization of clean energies such as solar energy, wind energy and water energy.

The State encourages and supports the development of environmental protection industries.

Article 10

The people’s governments at various levels shall redouble their efforts in afforestation, grass-planting, urban and rural greening,
and take effective measures to do well the work of prevention and control of sand so as to improve the atmospheric environment.

Chapter II Supervision and Management of the Prevention and Control of Atmospheric Pollution

Article 11

New construction projects, expansion or reconstruction projects which discharge atmospheric pollutants shall be governed by the State
regulations concerning environmental protection for such projects.

An environmental impact statement on construction projects shall include an assessment of the atmospheric pollution the project is
likely to produce and its impact on the ecosystem, stipulate the preventive and curative measures. The statement shall be submitted,
according to the specified procedure, to the administrative department of environmental protection concerned for examination and
approval.

When a construction project is to be put into operation or to use, its facilities for the prevention of atmospheric pollution must
be checked and accepted by the administrative department of environmental protection. Construction projects that do not fulfill the
requirements specified in the State regulations concerning environmental protection for such construction projects shall not be permitted
to begin operation or to use.

Article 12

Units that discharge atmospheric pollutants must, pursuant to the provisions of the administrative department of environmental protection
under the State Council, report to the local administrative department of environmental protection its existing discharge and treatment
facilities for pollutants and the categories, quantities and concentrations of pollutants discharged under normal operation conditions
and submit to the same department relevant technical data concerning the prevention and control of atmospheric pollution.

Units that discharge pollutants as specified in the preceding paragraph shall report in due time about any substantial change in the
category, quantity or concentration of the atmospheric pollutants discharged. Their atmospheric pollutant treatment facilities must
ensure normal operations. Where the said facilities are to be dismantled or left idle, approval of the local administrative department
of environmental protection under the people’s government above the county level shall be obtained in advance.

Article 13

Where atmospheric pollutants are discharged, the concentration of the said pollutants may not exceed the standards prescribed by the
State and local authorities.

Article 14

The State implements a system of collecting fees for discharging pollutants on the basis of the categories and quantities of the atmospheric
pollutants discharged, and establishing reasonable standards for collecting the fees therefor according to the needs of strengthening
prevention and control of atmospheric pollution and the State’s economic and technological conditions.

The standards provided by the State shall be observed in the collection of fees for discharge of pollutants, the concrete measures
therefor and. State Council shall enact the implementing procedures

The fees collected for discharge of pollutants shall all be turned over to the Treasury and shall be used for the prevention and control
of atmospheric pollution as prescribed by the State Council and may not be misappropriated. The auditing authorities shall exercise
supervision through auditing according to law.

Article 15

With regard to the regions not meeting the prescribed standards for the quality of atmospheric environment and the acid rain control
areas and the sulfur dioxide pollution control areas designated as such with the approval of the State Council, the State Council
or the people’s government of provinces, autonomous regions and municipalities directly under the Central Government may delimit
them as the major areas for the total emission control air pollutants . The concrete measures for the State Council shall prescribe
the total emission control of major air pollutants.

The local people’s government concerned in the areas for the control of total emission of air pollutants shall check and approve the
total emission of major air pollutants by enterprises and institutions and issue them licenses for emission of major air pollutants.
It shall do this in accordance with the conditions and procedures provided by the State Council and in line with the principles of
openness, fairness and impartiality.

The enterprises and institutions obliged to control their total emission of air pollutants must emit their pollutants according to
the checked and approved standards for the total emission of major air pollutants and the conditions of emission provided by the
license.

Article 16

No industrial production facilities that cause environmental pollution shall be built within scenic spots or places of historical
interest, natural reserves, areas close to historical or cultural sites under protection and other places that need special protection,
as designated by the State Council or the people’s government of provinces, autonomous regions and municipalities directly under
the Central Government. Other facilities to be built in these areas must not emit air pollutants in access of the prescribed standards
for pollutant discharge. Enterprises and institutions which built before the enforcement of this Law, with facilities discharging
more pollutants than permitted by the prescribed discharge standards shall be ordered to dealt with within a period of time in accordance
with the provisions of Article 48 of this Law.

Article 17

The State Council shall, in accordance with the general plan for urban development, the target of the environment protection plan
and the quality of the urban atmospheric environment, designate some cities as key cities for the control of air pollution.

Municipalities directly under the Central Government, provincial capitals, coastal open cities and key tourist cities shall be designated
as key cities for the control of air pollution.

Where key cities for the control of air pollution do not meet the standards for the quality of the atmospheric environment, they shall
endeavor to meet such standards within the time limit prescribed by the State Council or the administrative department of environmental
protection under the State Council. The people’s government of such a city shall make plans to meet the standards within the time
limit, and may, in line with the authorization or relevant regulations of the State Council, adopt even more stringent measures to
realize such plans.

Article 18

The administrative department of environmental protection under the State Council together with relevant departments under the State
Council may, in light of the meteorological, topographical, soil and other natural conditions, delimit the areas where acid rain
has occurred or will probably occur and areas that are seriously polluted by sulfur dioxide as acid rain control areas and sulfur
dioxide pollution control areas with the approval the State Council.

Article 19

Enterprises shall give priority to the adoption of clean production techniques that are instrumental to high efficient use of energy
and to reducing the discharge of pollutants so as to decrease the generation of atmospheric pollutants.

The State shall eliminate backward production techniques and equipment that seriously pollutes the atmospheric environment.

The competent department for comprehensive economic and trade affairs under the State Council, in conjunction with other relevant
departments under the State Council, shall publish a catalog of the techniques which seriously pollute the atmospheric environment
ones that shall be prohibited from use within a time limit. It shall also catalog the equipment which seriously pollutes the atmospheric
environment and which shall be prohibited from production, sale, import and use within a time limit.

Producers, sellers, importers or users shall stop the production, sale, importation or use of the equipment listed in the catalog
as mentioned in the preceding paragraph. This must be done within the time limit prescribed by the competent department for comprehensive
economic and trade affairs under the State Council in conjunction with the relevant departments under the State Council. People who
utilizes the production techniques listed in the catalog as mentioned in the preceding paragraph shall, within the time limit prescribed
by the competent department for comprehensive economic affairs under the State Council in conjunction with the relevant departments
under the State Council, stop the use of such techniques.

The equipment eliminated in accordance with the provisions of the preceding two paragraphs may not be transferred to another for use.

Article 20

Any unit that, as a result of an accident or any other exigency, discharges or leaks toxic or harmful gases or radioactive substances,
thereby causing or threatening to cause an accident of atmospheric pollution and jeopardize human health, must promptly take emergency
measures to prevent and control the atmospheric pollution hazards, make the situation known to such units and inhabitants as are
likely to be endangered by the atmospheric pollution hazards, report the situation to the local administrative department of environmental
protection and accept its investigation and settlement.

Under the emergency of a severe atmospheric pollution that may jeopardize human health and safety, the local people’s government shall
announce the situation to the local residents without delay and take compulsory emergency measures, including ordering the pollutant
discharging units concerned to stop the discharge of pollutants.

Article 21

The administrative department of environmental protection and other supervisory and administrative departments shall be empowered
to make on-site inspections of units under their jurisdiction that discharge pollutants. The units being inspected must truthfully
report the situation to them and provide them with the necessary information. The inspecting authorities shall have the obligation
to keep confidential the technological know-how and business secrets of the units inspected.

Article 22

The administrative department of environmental protection under the State Council shall set up a monitoring system for atmospheric
pollution, organize a monitoring network and work out unified monitoring measures.

Article 23

The administrative department of environmental protection under the people’s governments of large and medium-sized cities shall regularly
publish reports on the quality of the atmospheric environment and gradually introduce the system of forecasting the quality of atmospheric
environment.

A report on the quality of the atmospheric environment shall include such contents as the characteristics of urban atmospheric pollution,
the types of major pollutants and the extent of harm caused by the pollution.

Chapter III Prevention and Control of Atmospheric Pollution by the Burning of Coal

Article 24

The State promotes the method of dressing coal by washing for the purpose of reducing the sulfur and ash in coal, and restricts the
mining of high-sulfur or high-ash coal. If the coal mined from a newly-built coal mine is of high-sulfur or high-ash, supporting
facilities for the dressing of coal by washing shall be installed to make the sulfur and ash in coal fall within the prescribed limits.

If the coal mined from an established coal mine is of high-sulfur or high-ash, supporting facilities for the dressing of coal by washing
shall be installed within a time limit in accordance with the plan approved by the State Council.

It is prohibited to mine the coal with toxic or harmful substances, such as radioactive and arsenic, that exceed the prescribed limits.

Article 25

The relevant departments under the State Council and the local people’s governments at various levels shall adopt measures to improve
the urban energy structure and popularize the production and utilization of clean energy.

The people’s governments of the key cities for the control of air pollution may, within the regions under their respective jurisdictions,
designate areas as those prohibited from producing and consuming seriously polluting fuels prescribed by the administrative department
of environmental protection under the State Council. The units and individuals within such areas shall stop consuming such seriously
polluting fuels within the time limit prescribed by the local people’s government and shall instead consume natural gas, liquefied
petroleum gas, electricity or other clean energy.

Article 26

The State adopts economic and technical policies and measures conducive to the clean utilization of coal, encourages and supports
the consumption of fine coal of low-sulfur or low-ash, and encourages and supports the development and popularization of the technology
of coal cleaning.

Article 27

The competent department concerned under the State Council shall, pursuant to the standards for boiler discharge of atmospheric pollutants
prescribed by the state, stipulate corresponding requirements in the boiler quality standards; boilers that do not meet the prescribed
requirements shall not be permitted to be manufactured, sold or imported.

Article 28

Urban construction shall be conducted on the basis of over-all planning. In areas with coal heating, unified provision of heat sources
shall be practiced and central heating system shall be developed. In areas covered by central heating pipelines or networks, no new
coal heating boilers may be installed.

Article 29

People’s governments of large or medium-sized cities shall make plans for catering service enterprises to start the use of clean energy
such as natural gas, liquefied petroleum gas and electricity within a prescribed time limit.

Other users of domestic cooking ranges in urban areas of large or medium-sized cities not designated as areas prohibited from the
consumption of coal shall use sulfur-fixed briquette of coal as fuel or other clean energy. They shall do so within a prescribed
time limit so as to gradually eliminate the direct use of raw coal as fuel.

Article 30

Where any newly built or expanded thermal power plants and other large or medium-sized enterprise that discharge sulfur dioxide more
than the prescribed standards for pollutants discharge or the quota of total control allow, supporting facilities for desulphurization
and dust removal must be installed or other measures for controlling the discharge of sulfur dioxide or for dust removal must be
adopted.

In the acid rain control areas or sulfur dioxide pollution control areas, if an existing enterprise discharges atmospheric pollutants
more than the standards for pollutants discharge allow, the discharge of atmospheric pollutants of the enterprise shall be controlled
within a time limit. This will be in accordance with the provisions of Article 48 of this Law.

The State encourages enterprises to adopt advanced technology for desulphurization and dust removal.

Enterprises shall gradually adopt measures to control the nitrogen oxide generated by the burning of fuel.

Article 31

When coal, gangue, coal cinder, coal ashes, sandstone, lime soil or other materials is stored in densely inhabited areas, fire and
dust prevention measures must be taken in order to prevent atmospheric pollution.

Chapter IV Prevention and Control of Pollutants Discharge by Motor-driven Vehicles and Vessels

Article 32

Motor-driven vehicles and vessels shall not be permitted to discharge atmospheric pollutants in excess of the prescribed discharge
standards.

No unit or individual may manufacture, sell or import motor-driven vehicles and vessels that discharge atmospheric pollutants in excess
of the prescribed discharge standards.

Article 33

Where motor vehicles currently in use do no meet the standards for pollutants discharge by motor vehicles at the time they are manufactured,
they may not be driven on the road.

If the people’s governments of provinces, autonomous regions and municipalities directly under the Central Government prescribe new
standards for pollutants discharge by active motor vehicles and technically transform them, it shall be subject to the approval by
the State Council.

Motor-vehicle repair units shall, in accordance with the requirements for prevention and control of atmospheric pollution and relevant
national technical regulations, carry out repairs to make the motor-vehicles meet the prescribed standards for pollutants discharge.

Article 34

The State encourages the production and consumption of motor-driven vehicles and vessels which use clean energy.

The State encourages and supports the production and consumption of superior fuel oil, and takes measures to reduce the pollution
of atmospheric environment by harmful substances in the fuel oil. Units and individuals shall, according to the time limit prescribed
by the State Council, stop the production, import and marketing of leaded gasoline.

Article 35

The administrative departments of environmental protection under the people’s governments of provinces, autonomous regions and municipalities
directly under the Central Government may authorize the annual testing of pollution by motor-vehicle’s exhaust fume in accordance
with the relevant regulations. The Central Government may authorize the units undertaking annual test of motor-vehicles whose qualifications
have been recognized by the public security authorities to conduct these tests.

The departments of communications, fishery and other competent authorities with supervisory and administrative power may authorize
the units undertaking annual test of motor-vessels whose qualifications have been recognized by the relevant authorities to conduct
annual test of pollution by motor-vessel’s exhaust fume in accordance with the relevant regulations.

The administrative departments of environmental protection under the local people’s governments at or above the county level may conduct
supervisory pick-test of the pollutants discharge by active motor-vehicles at their place of parking.

Chapter V Prevention and Control of Pollution by Waste Gas, Dust and Fetor

Article 36

Units that discharge dust into the atmosphere must adopt measures to remove such dust.

The discharge of toxic waste gas and dust into the atmosphere shall be strictly restricted. When such discharge is really necessary,
the discharged gas or dust must undergo purification treatment.

Article 37

Inflammable gas engendered during industrial production shall be recovered for utilization; if such gas is discharged into the atmosphere
due to the lack of recovery facilities for utilization, it shall undergo treatment for the prevention and control of pollution.

The discharge into the atmosphere of converter gas, acetylene, yellow phosphoric tail gas engendered by the electric furnace process,
and organic hydrocarbon tail gas must be reported to the local administrative department of environmental protection for approval.

When the discharge of inflammable gas is really necessary because of the malfunctioning of the recovery and re-use installations,
the inflammable gas discharged shall be fully burnt, or other measures shall be taken, to reduce atmospheric pollution.

Article 38

Units that discharge sulphide-bearing gas in the process of refining petroleum, producing synthetic ammonia or coal gas, cooking fuel
coal and smelting non-ferrous metal shall be equipped with desulphurizing installations or shall adopt other measures for desulphurization.

Article 39

The discharge of gases and aerosols containing radioactive substances into the atmosphere must comply with the state provisions on
radioactivity protection and must not exceed the prescribed discharge standards.

Article 40

Units that discharge fetor into the atmosphere must take measures to prevent the pollution of neighboring residential areas.

Article 41

In densely inhabited areas and other areas that need special protection according to law, the burning of asphalt, asphalt felt, rubber,
plastics, leather, garbage and other materials that may produce toxic or harmful smoke or dust or fetor shall be prohibited.

In densely inhabited areas, the areas around the airport, the areas in the vicinity of main traffic arteries or the areas designated
by the local people’s government, it shall be prohibited to burn in the open air stalks, fallen leaves or other materials that will
cause smoke or dust pollution.

The municipal people’s government may, in light of the actual conditions, adopt measures other than those specified in the preceding
two articles to prevent and control the smoke or dust pollution.

Article 42

In the transportation, loading and unloading, and storage of substances that may diffuse toxic or harmful gases or dust, sealing or
other protective measures must be taken.

Article 43

The municipal people’s government shall take measures such as the responsibility system for afforestation, strengthening administration
of construction operation, expanding the area of the paved ground, control of the heaping up of debris and waste and using clean
transportation measures to increase the per capita possession of green land, reduce the size of bare land and surface dirt, and prevent
and control the dust pollution in the urban areas.

Units that conduct construction operation or other activities that generate dust pollution in the city’s urban areas must take measures
to prevent and control the dust pollution in accordance with the local regulations on environmental protection.

The competent administrative authorities under the State Council shall take the control of dust pollution as part of the ground for
assessment of a city’s comprehensive control of its environment.

Article 44

Business-operators in the catering services industry in urban areas must adopt measures to prevent and control the pollution caused
by lampblack to the residential environment in the neighborhood.

Article 45

The State encourages and supports the production and use of substitutes for the ozone-layer-depleting substances, and gradually reduces
the output of the ozone layer depleting substances until the termination of their production and use.

Units that produce or import ozone-layer-depleting substances must, within the time limit prescribed by the State, carry out the production
and import in accordance with the quotas approved by competent administrative authorities under the State Council.

Chapter VI Legal Liability

Article 46

Any violator of this Law shall, according to the circumstances of the case, be ordered to stop the illegal act, make rectification
within a time limit, be given a warn or be imposed upon a fine of not more than 50,000 yuan by the competent administrative department
of environmental protection or any of the supervisory and management departments as mentioned in Paragraph 2 of Article 4 for any
of the following acts:

(1)

Refusing to report or submitting a false report on items for which registration is required by the administrative department of environmental
protection under the State Council for the discharge of pollutants.

(2)

Refusing an on-site inspection by the competent administrative department of environmental protection or any of the supervisory and
management departments, or resorting to trickery and fraud during inspection;

(3)

Failing to normally operate the installations for the treatment of atmospheric pollutants by the units that discharge pollutants or
dismantling or leaving idle the installations for the treatment of atmospheric pollutants without prior approval by the administrative
department of environmental protection; or

(4)

Storing coal, coal gangue, coal cinder, coal ash, sandstone, lime soil or other materials in densely inhabited areas without taking
any measures for fire and dust prevention.

Article 47

Where the provisions of Article 11 of this Law is violated and a construction project is put into operation or to use in circumstances
where its facilities for the prevention and control of atmospheric pollution either have not been completed or have not met the requirements
specified in the state provisions concerning environmental protection for such a construction project, the administrative department
of environmental protection responsible for the examination and approval of the environmental impact statement on the construction
project shall order the suspension of its operations or use and may concurrently impose a fine of not less than 10,000 yuan but not
more than 100,000 yuan.

Article 48

Whoever, in violation of the provisions of this Law, discharges pollutants to the atmosphere in excess of the national or local discharge
standards shall make treatment thereof within a time limit, and shall also be imposed upon a fine of not less than 10,000 yuan but
not more than 100,000 yuan by the administrative department of environmental protection under the local people’s government at or
above the county level. The power to decide on the treatment within a time limit and the administrative penalty for violation of
the requirements for treatment within a time limit shall be prescribed by the State Council.

Article 49

Whoever, in violation of the provisions of Article 19 of this Law, produces, sells, imports or uses the equipment that is prohibited
to produce, sell, import or use or employs the techniques that are prohibited to employ shall be ordered to make rectification by
the competent department for comprehensive economic and trade affairs of the people’s government at or above the county level; if
the circumstan