Environmental protection

08.02.2013 ZF English

General provisions

Environmental legislation was first introduced in 1991. Since then, it has been developed to comply with the standards imposed by the European Union.  Some of the Romanian regulations are stricter than the EU rules. Currently, EU environmental regulations have been transposed into Romanian legislation and any new EU norm is automatically applicable in Romania, as an EU Member State. However, the Romanian Government negotiated and obtained the EU’s approval for transition periods (3 to 12 years from Romania’s accession to the EU) in relation to 11 Directives on the environment, but these concern major environmental matters at national level (e.

g. water and wastewater quality, waste management, Integrated Pollution Prevention and Control – IPPC, currently the Industrial Emissions Directive 2010/75/EU - IED) and do not apply to companies set up after 1990.

Environmental legislation

Romanian environmental legislation consists of framework laws and specific laws that regulate various environmental protection issues.

The main environmental law is Emergency Ordinance (EO) 195/2005 on Environmental Protection, approved under Law 265/2006, which sets out the general responsibilities and obligations of Romanian companies and also of the environmental authorities.

According to current legislation, legal entities must obtain an environmental authorization to perform certain activities considered to have an environmental impact, which are established under a Ministerial Order. This authorization sets out companies’ obligations to comply with applicable environmental norms. In the event of non-compliance (applicable only in connection with the topics covered by the Directives in respect of which Romania obtained transition periods), an environmental compliance program is agreed with the environmental authorities, including measures to be implemented during a certain timeframe. If the related measures are not implemented within the agreed period, the local authority sends a notification to the company in question and if the problem is not resolved within the following 30 days from receipt of the notification, the authority suspends the environmental authorization for a period of up to 6 months. During this period, the company may not carry out its activities and if it still fails to resolve the situation within this time interval, the environmental authority may suspend the company’s operations.

The environmental authorization is issued about 90 days after the application. However, environmental regulations also require other permits and authorizations to be obtained (e.g. water management authorization, fire permit, declaration on toxic substances, etc).

Additionally, the environmental law states that a company that is involved in sale of shares stocks, or assets, merger, spin off, concession, dissolution, or liquidation should notify the local environmental authority about the potential transaction. The environmental authority sets the environmental obligations for the company and if that transaction takes place, the environmental obligations can be negotiated between the two parties involved. Within 60 days of the transaction being concluded, the environmental authority should be notified as to the environmental obligations undertaken by each party.

According to Romanian environmental protection regulations, there are two main types of environmental permits for companies:

• Environmental permit – a regulatory paper for a proposed project (including an area development plan and program) or for a change or extension of an existing activity. The procedure for obtaining the environmental permit may be simple or complex, depending on the environmental impact of the project in question. Where the project is considered to have a significant environmental impact, an environmental impact assessment report must be prepared by a third party (accredited by the Ministry of Environment and Climate Change) as part of the complete procedure. If a new project or the extension of an existing activity is subject to the IED, the related project holder should obtain an integrated environmental permit. The Environmental Authorization is a regulatory paper for an activity in progress. It must be obtained after a company has been commissioned and it sets out the company’s discharge limits. For the activities subject to the IED, an Integrated Environmental Authorization (IEA) must be obtained instead, which sets discharge limits, as well as the company’s obligation to implement the Best Available Techniques in the industries in which it operates. 

The Water Law (No. 107/1996, subsequently amended, is another framework law on environmental protection governing Romanian water resources management.

According to Law 107/1996, the use of water resources (underground and surface water) as well as waste water discharged into a river or lake is regulated under a special permit/authorization (Water Management Authorization) issued by the Romanian Water Authority. The Water Management Authorization sets out the quantity of fresh water required by a company as well as the wastewater quality parameters to be met where a company discharges its waste water into surface water. 

A significant number of specific environmental regulations are also in force in Romania that have been updated or developed according to EU regulations and mainly relate to:   

• The procedure for the issuance of environmental authorizations and permits: Environmental Permits are issued for projects as well as for significant changes made to activities in progress whereas Environmental Authorizations are issued for activities in progress.
• The procedure for obtaining a Development Consent permit for public and private projects with a potential significant environmental impact, based on the Environmental Impact Assessment (EIA) report.
• The procedure for the development of environmental impact assessment reports on activities with a significant environmental impact.
• Various regulations on waste management (temporary storage deposits, final storage landfill development, collection and disposal of hazardous waste).
• Packaging and packaging waste regulation setting out the recovery and recycling targets for packaging waste. Producers and importers of packaged goods and disposable packaging have annual recovery and recycling targets (annual percentage of packaging put on the Romanian market) that can be met either by companies setting their own collection system or by transferring these obligations to special collection organizations certified in this respect.
• Regulations on materials containing Polychlorinated Biphenyl’s (PCBs) as well as materials containing asbestos that are considered hazardous in terms of human health and the environment and should gradually be disposed of.
• Management of dangerous chemical substances (classification, labelling, packaging, notification, control of activities posing a major accident risk involving dangerous substances); the REACH Regulation on Registration, Evaluation and Authorization of Chemicals effective as from 1 June 2007 in the EU as well as in Romania. Where the quantity of manufactured or imported chemicals is 1 ton or more per year, pre-registration with the European Chemicals Agency (between 1 June and 1 December 2008) was voluntary and free of charge. After 1 December 2008 pre-registration became compulsory and significant registration fees are paid. Non-registered chemicals (in quantities specified by REACH) may no longer be produced and used and high penalties are imposed for non-compliance with REACH rules.
• Noise level (outside and inside an industrial area and in residential areas); noise maps have been developed for residential areas and stricter noise level limits have been imposed on companies.
• Government Decision (GD) no. 1037/13.10.2010 on electrical and electronic equipment waste (WEEE) transposes Council Directive no.2002/96/EC and sets separate collection as well as recovery, reuse and recycling targets for EEE producers (including manufacturers and sellers). A separate collection rate of at least 4.00 kilograms on average per inhabitant per year of WEEE from private households is supposed to be met. The recovery targets which should be met range between 70 and 80% depending on the type of EEE. The rate of component, material and substance reuse and recycling which should be met is between 50 – 80% depending on the type of EEE. These annual targets (currently valid) can be met by companies organizing their own collection systems or by transferring these obligations to special waste collection organizations certified in this respect.
• The separate collection target (45% by 2016) for batteries and accumulators put on the Romanian market by producers as defined in the related regulation (GD 1132/2008). There is also a registration procedure in a special registry of battery and accumulators producers. Special reports on batteries and accumulators must also be provided to the environmental authorities.
• The requirement for oil producers/importers to collect and recover 80% of the oil put on the Romanian market (EO 196/2005, with subsequent modifications, and GD 235/2007). If this recovery target is not achieved, an environmental tax of around 0.45 euro/litre for the quantity of waste oil not recovered should be paid to the Environmental Fund Administration (EFA).
• GD 170/2004 on waste tires management, requires tire producers/importers to recover and recycle 80% of used tires (expressed as proportion of their weight). If this target is not met, an environmental tax of about 0.45 euro/kg for the quantities not recovered/recycled must be paid to the EFA. 
• Wastewater quality requirements to be met for discharges into municipal sewerage and for discharges into rivers or lakes.
• Discharges into the atmosphere (limits for air emissions and limits for different types of pollutants acceptable in residential areas).
• Drinking water quality (according to the relevant EU Directive).
• Soil quality in sensitive areas (agricultural and residential areas) and industrial areas. This norm regulates the normal, warning and intervention limits for different soil quality parameters. Where the intervention limits are exceeded, the owner of the land may be required to carry out a soil clean-up.
• Directive 2004/35/CE on environmental liability with regard to the prevention and remedying of environmental damage, transposed into Romanian legislation under Emergency Ordinance no.68/2007 as approved by Law no. 19/2008, which sets out the application of “the polluter pays” principle. Government Decision (GD) no. 1408/2007 regulates the assessment of soil and subsoil pollution levels to identify the damage caused and to establish environmental rehabilitation liabilities.
• The revised Emission Trading Scheme (ETS) Directive 2003/87/CE establishing a scheme for greenhouse gas emission allowance trading within the EU and amending Council Directive 96/61/EC, which  introduces fully harmonized and EU-wide rules for emission allowances distribution, and is applicable also to Romania as EU Member State.

Environmental Authorities

The environmental authority at central governmental level is the Ministry of Environment and Climate Change (MECC), in charge of national environmental policy and strategy development. The Romanian environmental legal framework is also developed by the MECC. The central implementation authority is the National Environmental Protection Agency (NEPA) which coordinates the local environmental authorities and ensures the necessary training process for all parties involved in environmental matters.. The Local Environmental Protection Authorities (42 LEPAs)-are located in each of Romania’s 41 counties and in Bucharest. Each LEPA is responsible for the environmental regulatory (authorizing) process of companies doing business in that county. A special authority has been established for the Danube Delta area, the Danube Delta Biosphere Reserve Administration.

The National Environmental Guard (NEG) is the national environmental protection enforcement institution, subordinated to the MECC. The NEG is represented by a Local Environmental Guard (LEG) in each county and in Bucharest. The LEGs verify compliance by companies located in the relevant county with environmental regulations and norms. For non-compliance, LEGs may impose penalties, according to the amount of environmental damage or risk caused by the non-compliance.

 

Source: KPMG - Investment in Romania report (May 2013)