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TA B L E O F CONT ENT

TITLE P AG E

PREAMBLE 1

CHAPTER I: PRELIMINARY

Short Title, extent and commencement 2

Repeal 2

CHAPTER II: PRINCIPLES OF APPLICABLE TOENVIRONMENTAL PROTECTION

Purpose 3

Environmental Principles 3

Fundamental right and duty 3

Inter generational equity 3

Middle path strategy 4

Precautionary principle 4

Principles of 3Rs 4

Polluter pays principle 5

Right to information 5

Access to justice 5

Soverign rights principle 6

Principle of payment for environmental services 6

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CHAPTER III: CONSTITUTION, FUNCTIONS AND POWERS OF

AUTHORITIES

National Environment Commission 6

Terms of office of Chairperson and other members 7

Role of the Commission 8

Powers and functions of the Commission 9

Meetings of the Commission 12

Proceedings before the Commission to be judicial proceedings 13

Procedure of the Commission 13

Duties of the Secretariat 14

Powers of the Secretariat 14

Competent Authorities 15

Competent Authority at Dzongkhag Level 16

Duties and powers of the Competent Authorities 16

Environmental Tribunal 17

CHAPTER IV : PROTECTION OF ENVIRONMENTAL QUALITY

Commission to take measures to prevent environmental harm 19Handling of hazardous substances 21Discharge of environmental pollutants 21Environmental Standards for Products: Technologies, andManagement Practices

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Waste Management 22

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Environmental emergencies 23

Other Matters concerning Environmental Protection, includingEmerging Issues

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CHAPTER V: PROTECTION OF FOREST, BIODIVERSITY ANDINTEGRITY

Stewardship of the Environment 24

Forest Coverage, Protected Areas and Vulnerable Ecosystems 24

Protection of Genetic Resources 26

Research and Monitoring 26

CHAPTER VI: ENVIRONMENTAL FINANCING ANDINCENTIVES

Financing of Environmental Protection 2 7

Financial Incentives and Charges for EnvironmentalCompliance

2 7

CHAPTER VII: RIGHT TO ENVINRONMENTAL INFORMATIONAND CITIZENS’ PARTICIPATION

Right to Environmental Information 28

National Environmental Information System 29

Citizens’ Right of Participation in Environmental Decisions 31

Access to Justice 31

CHAPTER VIII: PROCEDURE FOR INSPECTIONS ANDVERIFICATION

Procedure for entry and inspection 3 2

Procedure for taking samples 3 4

Environmental laboratories 3 5

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CHAPTER IX: ENFORCEMENT, OFFENCES AND PENALTIES

Obligation of environmental compliance 35

Environmental offences 36

Penalties for civil offences 37

Penalties for criminal offences 38

When express penalty not provided 38

CHAPTER X: MISCELLANEOUS

Members, officers and employees of the Commission to bepublic servants

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Multilateral lateral and bilateral environmental agreements 39

Power to make rules 39

Amendment 39

Authoritative Text 39

Definitions 40

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PREAMBLE

WHEREAS, Bhutan has a long tradition of living inharmony with nature, which is reaffirmed by the resolutionof the Parliament to maintain a minimum of sixty percent ofcountry’s land under forest cover in perpetuity;

AND WHEREAS, environmental sustainability is anessential element of the Development Philosophy – “GrossNational Happiness,” conceived by His Majesty the King;

AND WHEREAS, Bhutan respects internationalenvironmental laws and has acceded to major internationalenvironment and sustainable development instruments;

AND WHEREAS, there is a need to create institutionalmechanisms to protect its fragile mountain ecosystem;

AND WHEREAS, in dedication to the visionary aspirationsof our beloved Kings and in reverence to the moral, culturaland ecological values passed down by our forefathers andto ensure sustainable socio economic development.

BE IT ENACTED by the National Assembly of Bhutan in its87th Session held on 6th day of the 5th month of the FemaleFire Pig Year of the Bhutanese calendar, corresponding to21st June, 2007 as follows:

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CHAPTER IPRELIMINARY

Short Title, extent and commencement

1. This Act may be called:

a) The National Environment Protection Act, 2007.

b) It shall come into force on the 16th day of the 6th

month of the Female Fire Pig Year of theBhutanese calendar, corresponding to 31st July2007.

c) It extends to the whole of Bhutan.

Repeal

2. All other Acts and regulations governing the use ofland, water, forests, minerals and other naturalresources shall be consistent with this Act. Theprovisions of all existing laws relating to environment,which are inconsistent with this Act, are herebyrepealed.

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CHAPTER IIPRINCIPLES APPLICABLE TO ENVIRONEMENTAL PROTECTION

Purpose

3. An Act to provide for the establishment of an effectivesystem to conserve and protect environment throughthe National Environment Commission or itssuccessors, designation of competent authorities andconstitution of other advisory committees, so as toindependently regulate and promote sustainabledevelopment in an equitable manner.

Environmental Principles

4. The people and the Government in succession shallperpetually strive to consider and adopt itsdevelopmental policies, plans and programs inharmony with the following environmental principles:

Fundamental right and duty

5. A person has the fundamental right to a safe andhealthy environment with equal and correspondingduty to protect and promote the environmentalwellbeing of the country.

Inter generational equity

6. The present generation must ensure that the health,diversity and productivity of the environment ismaintained or enhanced for the benefit of futuregenerations.

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Middle Path Strategy7. In order to achieve sustainable development, natural

resources such as forest, water, air, biodiversity, soil,minerals and the overall integrity of the environmentshall not be degraded. In line with the Government’sMiddle Path Strategy, economic development andenvironmental conservation shall receive equalpriority.

Precautionary Principle8. Where there are threats of serious or irreversible

damage, lack of full scientific certainty shall not beused as a reason for postponing measures to preventenvironmental degradation.

9. A developmental activity shall be strategicallyplanned and executed in harmony with the carryingcapacity of the country’s sensitive ecological settingsand geographical terrains.

10. A person taking natural resources from theenvironment or deriving economic benefits isresponsible to ensure sustainable use andmanagement of those resources and their ecology.

Principle of 3Rs11. Every activity shall be planned and implemented in a

way which will cause the least possible change in theenvironment; present the least environmental risk;minimize the consumption of space, raw materials,and energy during construction, production,distribution and utilization to the greatest extentpossible including consideration of the principles ofreduce, reuse and recycle; and forestall or limitenvironmental impact from the start.

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Polluter Pays Principle

12. A person polluting the environment or causingecological harm is responsible for the costs ofcontainment, avoidance, abatement, medicalcompensation, mitigation, remediation andrestoration.

13. State authorities and local governments, institutions,persons, businesses, and the organizationssafeguarding the interests of all of the above shallcooperate for the protection of the environment. Theright and responsibility to co operate shall extend toall aspects of achieving the environmental objectives.

14. The uniformity of the system of environmentalprotection shall be guaranteed by the Government, thelocal governments and the private sector throughappropriate policies, plans and programs such asenvironmental assessment processes, regulations,incentives, fiscal policies and other instruments.

Right to information

15. Every individual has the right to be informed aboutthe state of the environment and all activities whichare being proposed that could affect the environment.

Access to justice

16. Any individual whose right to a safe and healthyenvironment has been affected or is likely to beaffected shall have the right to seek legal redress.

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Sovereign rights principle

17. The state has sovereign rights over renewable andnon renewable natural resources within the limits ofits national jurisdiction.

18. Conservation of natural resources shall be based on aparticipatory approach aimed at achieving anequitable sharing of the costs and benefits ofconservation among resource users.

Principle of payment for environmental services

19. A person using or extracting natural resources shall beliable to pay for ecosystem/environmental services.

CHAPTER IIICONSTITUTION, FUNCTIONS AND POWERSOFAUTHORITIES

National Environment Commission

20. The National Environment Commission shall be anindependent authority and the highest decisionmaking body on all matters relating to theenvironment and its management in the country. TheCommission shall exercise the jurisdiction and powersand discharge the functions and duties conferred orimposed by or under this Act.

21. The Commission shall consist of such number ofmembers, not exceeding nine and unless the rulesotherwise provide, the Commission shall consist of thefollowing:

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a) Prime Minister/Minister of a relevant Ministrynominated by the Prime Minister shall be theChairperson,

b) four five other members who shall be highestranking officers representing relevant ministriesto be nominated by the Chairperson;

c) three representatives of civil society/eminentpersons;

d) Head of the Secretariat as member secretary.

Terms of office of Chairperson and other members

22. The Chairperson and other members shall hold officefor such period, not exceeding five years, as may bespecified by the Government and shall be eligible forreappointment.

23. In any discussion, the Chairperson or other membersshall not have any financial or other interest that mayor is likely to affect their functions prejudicially.

24. Notwithstanding anything contained in section (22), amember may resign by submitting resignation to theChairperson in writing with a minimum of onemonth’s notice;

25. In the event of the occurrence of a vacancy in the officeof the Chairperson, one of the members may benominated/elected by the Commission as the interimchairperson until a new Chairperson is appointed.

26. When the Chairperson is unable to discharge his/herfunctions owing to absence, illness or any other cause,the Chairperson may authorise one of the members inwriting to discharge the functions of the Chairpersonon his/her behalf, until the Chairperson resumes hisduties.

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27. The terms and conditions of service of the Chairpersonand other members shall be such as may be prescribedby the Government:

Provided that the terms and conditions of service ofthe Chairperson or any other member shall not bevaried to his/her disadvantage after his/herappointment.

28. The members of the Commission shall make adeclaration of fidelity and secrecy in such manner asmay be prescribed.

Role of the Commission

29. The role of the Commission or its successor agency isto set the policies and to coordinate the actionsrequired to:

a) Implement the principles enshrined in this Act;

b) Protect and promote a safe and healthyenvironment;

c) Prevent, control and abate environmental harm,including pollution;

d) Ensure conservation and sustainable use ofnatural resources;

e) Institutionalize the environmental assessmentprocess as an integral part of the developmentplanning process through implementation of theEnvironmental Assessment Act, 2000 and;

f) Negotiate and enforce bilateral and multilateralenvironmental agreements.

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Powers and functions of the Commission

30. Subject to the provisions of this Act, the Commissionshall have the responsibility for laying down thepolicies, plans and guidelines for environmentalprotection, sustainable development and properutilization of natural resources. The Commission shall:

a) take measures to prevent environmental harmand protect environmental quality in the mannerset out in section (53) and (54);

b) designate any ministries, organisations, agenciesor committees as the Competent Authority tocarry out its functions;

c) enforce and implement policies, plans andprogrammes for environmental protection;

d) adopt strategies, plans and action programmesfor achieving specific environmental protectionobjectives;

e) recommend ratification of bilateral andmultilateral environmental instruments to theParliament for subsequent enactment;

f) adopt regulations and rules including standardsfor environmental quality, emission limits andproducts, in consultation with other relevantagencies as authorized under this Act;

g) issue directives to relevant agencies or bodies forone or more of the following purposes:

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i. Restorative, corrective or mitigatingmeasures;

ii. Environmental planning, protection andmanagement within certain areas, zones,regions or nationwide;

iii. Promotion of environmental education,research or studies;

iv. Promotion of environmentally friendly andenergy efficiency technologies; or

v. Mainstream environment into the nationalPolicy, Plan and Program;

vi. Any other matter in specific or generaldeemed important for the betterment ofenvironmental quality or sustainablemanagement and use of natural resources.

h) comment on all draft legislation, programmes,policies, plans and proposed activities preparedby other government agencies which are likely tohave a impact on the environment and thesustainable use of natural resources;

i) constitute advisory committees consisting ofexperts in the field of environment, sustainabledevelopment and related fields at the national orlocal level to make recommendations on differentaspects of environment protection andsustainable development;

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j) hear and review any case of inconsistencies andconflict between one or more sectoral legislationand/or provisions of this Act with a view toharmonizing the conflicting provisions. TheCommission shall initiate hearing or reviewingon its own or when matter is referred to it by thesectoral authority involved. Following hearingand review, the authorities involved shall agreeon amendments to the sectoral legislation inquestion, to be tabled in the next session of theParliament for enactment. In the interim, theCommission may issue an interim order, whichshall be in force till the next session of theParliament;

k) recommend to the Parliament to declare;

i. any species of plant and/or animal asendangered species including their habitatand thus protected in consultation withrelevant agencies and organizations;

ii. any part of the country to be a national park,wildlife reserve, nature reserve, protectedforest, biosphere reserve, critical watershedand such other categories meritingprotection.

l) shut down any activities without compensationwhen false or misleading information is provided`based on which environmental clearance wasissued;

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m) discharge such other functions prescribed underthis Act;

n) discharge any other functions and tasks assignedto it by the Government;

o) advise the Government on matters relating toemerging environment issues.

31. In the exercise of its functions under this Act, theCommission may give such directions or pass suchorders as are necessary, for reasons to be recorded inwriting to the Secretariat or other CompetentAuthority. Notwithstanding anything saidhereinabove shall preclude the Commission from itscardinal responsibility of enforcing and administeringthe provision of the Act. The Commission maydelegate, subject to such conditions and limitations asmay be specified, such of its powers and functionsunder this Act as it may deem necessary or expedient,to any officer or other authority.

Meetings of the Commission

32. The Commission shall meet on a quarterly basis and atsuch time and place as the Chairperson of theCommission may deem fit. The Chairperson mayconvene special sessions as and when required.

33. The Chairperson of the Commission shall preside overthe meetings of the Commission.

34. The quorum for holding meeting of the Commissionshall be two third of its total members.

35. The decisions will be taken by simple majority.

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Proceedings before the Commission to be judicialproceedings

36. The Commission shall be deemed to be a civil courtand proceeding before the Commission shall bedeemed to be a judicial proceeding when theCommission decides to hear cases before it. Howeverthe Commission may decide to establishenvironmental tribunal and communicate theirdecision to the Government and Chief Justice for itsconstitution.

Procedure of the Commission

37. Subject to the provisions of this Act, the Commissionshall have powers to:

a) regulate the procedure and conduct of thebusiness;

b) delegate its powers or functions to such personsor authorities as prescribed in the rules orregulations made under this Act.

38. The Commission shall, for the purposes of hearingcases, carrying out any inquiry/investigation or forany other purpose under this Act, have the powers to:

a) summon and enforce the attendance of anywitness and examine him;

b) order the discovery and production of documentor other material object producible as evidence;

c) receive evidence on affidavit;

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d) requisition any public record from any court oroffice;

e) issue any payment for the examination ofwitnesses, and;

f) any other matter which may be prescribed.39. The Commission may sue or be sued for any act or

omission of its powers and duties under this Act.Secretariat of the National Environment Commission

40. The Secretariat is responsible for implementing thepolicies, regulations and directives issued by theNational Environment Commission, and foradministering the provisions of this Act by virtue of itbeing the custodian of common seal of theCommission responsible for carrying out day to dayfunction.

Duties of the Secretariat

41. The duties of the Secretariat shall include:a) administering the provisions of the

Environmental Assessment Act, 2000 and itsRegulations;

b) monitoring of the state of the environment,including ambient air and water quality and landuse changes;

c) monitoring of compliance with regulationsestablished under this Act;

d) providing guidance to other governmentagencies and stakeholders concerning actionsrequired to achieve environmental protectionobjectives, including specific measures forcompliance with environmental clearances;

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e) development and maintenance of an effectiveenvironmental information system, includingrecordkeeping of all administrative decisionstaken by the Secretariat;

f) in consultation with relevant agencies andstakeholders, facilitation of the development andimplementation of bilateral and multilateralenvironmental agreements, conventions, treaties,or declarations that have been ratified by theParliament;

g) reporting to the NEC concerning the state of theenvironment and status of implementing thepolicies, regulations and directives issued by theNEC;

h) encouraging and supporting research, and;

i) preparation and publication of periodic state ofenvironment reports and other environmentalinformation aimed at increasing publicawareness for fostering compliance.

Powers of the Secretariat

42. The powers of the Secretariat shall include:a) in consultation with other relevant agencies and

stakeholders, preparation of other draft acts,rules and regulations and standards needed toimplement this Act, for consideration andadoption by the Commission;

b) establishment of implementing rules for specificregulations adopted by the Commission and asauthorised by the Commission through thoseregulations;

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c) recommending to the Commission, legislativeand other measures to be taken where there iseminent risk to the environment or public health;

d) pursuance of enforcement actions as needed,including on the spot fines for non compliancewith the terms and conditions of environmentalclearances, and;

e) administering of EA Act 2000 and its Regulations.

Competent Authorities

43. Government agencies, including ministries and localauthorities delegated with specific functions relevantto environmental protection and its managementunder this Act shall be designated as CompetentAuthorities. They shall carry out their duties andexercise powers in coordination with the Secretariat.

Competent Authority at Dzongkhag Level

44. Dzongkhag Environment Committees shall beconstituted as Competent Authorities at theDzongkhag Level and shall be chaired by theDzongdag.

45. Each Committee shall consist of at least sevenmembers representing planning, agriculture, forestry,engineering, industry, civil society and localgovernment.

46. Each Committee shall be supported by anenvironmental officer appointed by the Secretariat.

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Duties and powers of the Competent Authorities

47. The duties and powers of the Competent Authoritiesshall include:

a) Issuance of environmental clearances for projectslisted as being under their competence as per theEnvironmental Assessment Act, 2000 and itsregulations;

b) Review of non listed projects prior to forwardingtheir opinion to the Secretariat or any otherrelevant Competent Authority;

c) Compliance monitoring of the conditions ofenvironmental clearance and taking necessaryaction for non compliance;

d) Gathering and forwarding environmentalinformation on a regular basis to the Secretariat;

e) Enabling public participation in environmentaldecisions, including assessments carried outunder the Environmental Assessment Act, 2000and it’s Regulations;

f) Monitoring the quality of the environment;

g) Informing the Secretariat of any deterioration orrisk of deterioration of the quality of theenvironment;

h) Making recommendations to the concernedMinistries, Local Governments, and/or to theSecretariat concerning any measures that need tobe taken to protect the quality of theenvironment; and

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i) Carrying out such other functions as per theterms of reference issued by the Commissionfrom time to time.

Environmental Tribunal

48. The Government may establish an EnvironmentalTribunal to hear specific environmental disputes,when the Commission decides not hear the disputes.

49. An Environmental Tribunal shall consist of threeexpert members of high integrity, knowledge andexperience in the field of environmental adjudication,to be appointed by the Government including at leastone person who is qualified to be appointed as a judgeof the High Court or a retired judge of the High Courtor Supreme Court as chairperson on therecommendation of the Chief Justice of Bhutan.Persons in situations of conflict of interest with respectto the specific dispute to be decided shall bedisqualified.

50. A duly constituted Environmental Tribunal shall be aquasi judicial authority with the power to hear, takeevidence, investigate, issue summons, requestinformation and pass its decision on the issues heardbefore it.

51. The terms and conditions of service of the membersshall be such as may be prescribed by theGovernment, provided that the terms and conditionsof service of the Chairperson or any other membershall not be varied to his disadvantage after his/herappointment.

52. A decision taken by the Environmental Tribunal maybe appealed to the High Court.

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CHAPTER IVPROTECTIONOF ENVIRONMENTALQUALITY

Commission to take measures to prevent environmentalharm

53. Subject to the provisions of this Act, the Commissionmay take all such measures as it deems necessary orexpedient for the purpose of protecting theenvironment and preventing, controlling and abatingenvironmental harm or pollution.

54. In particular, and without prejudice to the generalityof the provisions of section (53), such measures mayinclude measures with respect to all or any of thefollowing matters, namely:a) coordination of actions by the Dzongkhag

Environment Committees and otherauthorities made under this Act or the rules madethereunder;

b) laying down standards for emission or dischargeof environmental pollutants (including noisepollution) from various sources whatsoever,provided that different standards for emission ordischarge may be laid down under this clausefrom different sources having regard to thequality or composition of the emission ordischarge of environmental pollutants from suchsources;

c) laying down, after consultation, restrictions andprocedures on the disposal of waste;

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d) examination of, and restrictions with regard to,any industries, operations or processes or class ofindustries, operations or processes in any area asare likely to cause environmental pollution;

e) laying down standards and procedures forlabelling and best environmental practices withregard to any industries, operations or processesor class of industries, operations or processes;

f) laying down procedures and safeguards for thehandling of hazardous substances;

g) carrying out investigations and research relatingto problems of environmental pollution;

h) inspection of any premises, plant, equipment,machinery, manufacturing or other processes,materials or substances and giving, by order, ofsuch directions to such authorities, officers orpersons as it may consider necessary to take stepsfor the prevention, control and abatement ofenvironmental pollution;

i) establishment or recognition of environmentallaboratories and institutes to carry out thefunctions entrusted to such environmentallaboratories and institutes under this Act;

j) collection and dissemination of information inrespect of matters relating to environmentalpollution;

k) ensure reasonable amounts of water forenvironmental flows to protect the fresh waterbiodiversity and maintain ecosystem functions;

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l) standards laid down as per sub section 54 (b)shall be reviewed and revised at regular intervalsbased on the new scientific findings, changingtime and technology, which shall be strictlyimplemented and enforced.

Handling of hazardous substances

55. No person shall handle or cause to be handled anyhazardous substance except in accordance with suchprocedure and after complying with such safeguardsas may be prescribed under national and internationalinstruments.

Discharge of environmental pollutants

56. No person shall discharge or emit or be permitted todischarge or emit any pollutants in excess of suchstandards as may be prescribed.

Environmental Standards for Products: Technologies, andManagement Practices

57. Polluting products and technologies that can causeadverse impacts on the environment in the absence ofappropriate treatment or design may be regulatedunder this Act, via environmental standardsestablished by the Commission or certification byrecognised international standards organizations, inconsultation with other relevant agencies andstakeholders concerned.

58. The Government may encourage voluntary ecolabelling or eco auditing schemes through fiscalincentives and other means.

59. The Commission may issue regulations, guidelines orcodes concerning:

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a) environmental codes of best practices for specificsectors;

b) standards for environmental auditing andmanagement systems;

c) environmental labelling in order to encourageproduction and marketing of environmentallyfriendly products or services, or to promoteenvironmentally friendly and energy efficiencytechnologies;

Waste Management

60. With the aim of achieving a more sustainableapproach to resource use and a reduction in thequantity of waste going to disposal, the Commissionmay require producers to take responsibility for thecosts of the management of their products when theybecome waste, by diverting end of life products to reuse, recycling or other forms of recovery and safedisposal.

61. Producers/industries shall be fully responsible for safeand proper disposal of their waste.

62. It shall be mandatory for any proponent to providecomprehensive information in the project document,on types and quantities of waste including soundmanagement plan for safe and proper disposal.

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Environmental emergencies

63. Environmental emergencies, including any industrialaccident or accidental spillage or leakage resulting in asignificant release of a hazardous substance into theenvironment, shall be notified to the nearestgovernment authority which shall in turn take thenecessary measures for damage control includingalerting the public affected and inform the Secretariat.

64. On receipt of information with respect to the fact orapprehension on any occurrence of the nature referredto in section (63), whether through intimation underthat section or otherwise, the Secretariat shall, as earlyas practicable, cause such remedial measures to betaken as necessary to prevent or mitigate theenvironmental harm or pollution if the nearestauthority is unable to take necessary measures.

65. The expenses, if any, incurred by any authority oragency with respect to the remedial measures referredto in section (63), together with interest (at suchreasonable rate as the Commission may, by order, fix)from the date when a demand for the expenses ismade until it is paid, may be recovered by suchauthority or agency from the person concerned.

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Other Matters concerning Environmental Protection,including Emerging Issues

66. On the basis of information gathered duringenvironmental monitoring, through representationsfrom citizens and stakeholders, new scientific studies,and other sources of information, the Commissionmay decide whether additional measures are neededto protect the environment and conserve the naturalresources of the country.

CHAPTER VPROTECTIONOF FOREST, BIODIVERSITY AND ECOSYSTEM INTEGRITY

Stewardship of the Environment

67. Every Bhutanese is a trustee of the country s naturalresources and environment for the benefit of thepresent and future generations and it is thefundamental duty of every citizen to contribute to theprotection of the natural environment, conservation ofthe rich biodiversity and prevention of all forms ofecological degradation.

Forest Coverage, Protected Areas and VulnerableEcosystems

68. The Commission shall ensure that, in order toconserve the country s natural resources and toprevent degradation of the fragile mountainecosystem, a minimum of sixty percent of Bhutan stotal land shall be maintained under forest cover forall time. Any changes in the present national forestcover and protected areas shall be made only by theParliament.

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69. In order to ensure sixty percent forest cover inperpetuity in line with Section 30(i), the Commissionshall constitute a high level committee comprising ofrelevant stakeholder agencies, such as Department ofForestry, to:

a) periodically review existing policies, plans andprograms and recommend necessary changes inpolicies, plans and programs, includingimplementation and enforcement mechanisms.

b) initiate aforestation and re forestation programsin degraded and barren land to enhance forestcover.

c) review policies and programs on forest firemanagement and recommend measures to curbforest fire in the country.

70. The Commission shall ensure and promote the use ofclean energy and alternative technologies in order toreduce use of fuel wood/timber from primary forest.Such innovative practices of reducing the burden onnatural resources shall be supported with incentives asper section 78.

71. The Commission, in consultation with other relevantagencies shall ensure conservation and protection ofwetlands, alpine regions, watersheds, and othervulnerable ecosystems in addition to the existingprotected areas.

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Protection of Genetic Resources

72. The Commission, in consultation with relevantagencies shall establish regulatory controls overimport and use of genetically modified organisms(GMOs) including living modified organisms (LMOs)and products containing GMOs and introduction ofalien species.

73. Keeping in mind intergenerational equity andsustainable utilization of natural resources, theCommission shall study and recommend toParliament any proposals for bio prospecting andother commercial extraction and export from thecountry, of any in situ and ex situ plant and animalgenetic resources.

Research and Monitoring

74. In recognition of the importance of scientific researchin the field, the Commission shall initiate scientificresearch and ensure that long term biologicalmonitoring and research frameworks are establishedin order to monitor and assess biological trends andprocesses to measure ecosystem integrity and speciessurvival.

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Chapter VIENVIRONMENTAL FINANCINGAND INCENTIVES

Financing of Environmental Protection

75. The Government shall allocate sufficient funds toenable the Commission, its Secretariat, the advisorycommittees, and the Competent Authorities to exerciseand discharge the powers, duties and functionseffectively under this Act.

76. The Commission and its Secretariat may receive suchsums of money through the Government by way ofgrants, donations, gifts or loans from any sources asper the existing laws of the country.

77. The Government may establish any environmentalprotection funds as may be deemed appropriate.

Financial Incentives and Charges for EnvironmentalCompliance

78. In order to promote environmentally friendlytechnologies, code of best practices and eco labelling,the Government may establish fiscal incentives forenvironmental protection and compliance, including:

a) Provision of tax incentives for environmentalservices and/or manufacture of environmentallyfriendly products;

b) Reductions in customs and other duties for theimport of environment friendly and energyefficiency technologies;

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c) Grants or co financing for civil society or publicsector environmental protection or natureconservation projects.

d) Provision of incentives for reducing, recyclingand reusing waste.

79. The Government may levy charges, including:

a) Charges or fees for utilization of naturalresources; and

b) Taxes or charges for raw materials or productsposing specific environmental risks.

80. The Commission may establish mechanisms forvaluation of natural resources and apply the valuesestablished to legal and economic instruments, such aspayments for environmental services designed to beshared equitably among resource users, the costs andbenefits of conservation and sustainable use of theresource.

CHAPTER VIIRIGHT TO ENVIRONMENTAL INFORMATIONANDCITIZENS’

PARTICIPATION

Right to Environmental Information

81. All citizens have a right of access to environmentalinformation. The Commission and its Secretariat shalltherefore:

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a) promote environmental education, advocacy andawareness;

b) regularly publish information on theenvironment, including periodic state of theenvironment reports;

c) make environmental information available inelectronic databases which are easily accessible tothe public through public telecommunicationsnetworks, including:i. Reports on the state of the environment;

ii. Texts of legislation on or relating to theenvironment;

iii. As appropriate, policies, plans andprogrammes on or relating to theenvironment, and environmentalagreements; and

iv. Other information available in electronicform that may facilitate the application ofthis Act.

d) encourage operators whose activities have asignificant impact on the environment to informthe public voluntarily of the environmentalimpact of their activities and products.

National Environmental Information System

82. The Commission may establish a nationalenvironmental information system for the purpose ofgathering, processing, analysing, and disseminatingdata on the state of the environment of the Country. Itshall be organised in such a manner as to enable:

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a) Tracking of changes (both qualitative andquantitative) in the utilization, loading and stateof the environment, and any resulting impacts;

b) Recognition and analysis of any emerging issueswith respect to the environment so as to enabletimely response;

c) Determination of the causes of environmentalimpacts and;

d) Identification of appropriate corrective andremedial measures to be taken.

83. The national environmental information system shallinclude data gathered via:a) Regular monitoring of the quality of air and

water, according to the quality standards andsampling/evaluation methodologies establishedby the Commission;

b) Monitoring of compliance with environmentalclearances and other regulations establishedunder this Act;

c) Reports submitted by users of the environmenton their environmental performance; and

d) Independent studies and researches.

84. The Secretariat shall be responsible for organising andmanaging the national environmental informationsystem.

85. The Commission and its Secretariat shall haveauthority to issue directives requiring agencies,institutes, organisations, stakeholders and persons tofurnish information or reports relating to any aspect ofthe environment and its utilization that such person ororganization is deemed to possess.

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Citizens’ Right of Participation in EnvironmentalDecisions

86. Citizens are entitled to participate in decision makingprocesses concerning the environment, when theGovernment deems appropriate to hold publicconsultations, including:a) Contributing views during the process of

drawing up policies, plans and projectformulation and implementation;

b) Consulting the public during environmentalimpact assessment process before the issuance ofenvironmental clearance. Provided that the largerinterest of the community/country shall prevailover individual interest; and

c) Commenting on draft legislation or regulationsunder preparation to implement this Act.

87. The public concerned shall be informed in a, timelyand effective manner, either by public notice orindividually as appropriate, on any environmentaldecision making procedure, when all options are openand effective public participation can take place.

Access to Justice

88. Any person aggrieved by a decision taken under thisAct may appeal to the Commission. The personaggrieved may challenge the substantive andprocedural legality of any decision, act or omission.

89. This right of access to a review procedure shall applyin particular to any person who considers that:

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a) a request for information has been ignored,wrongfully refused, whether in part or in full,inadequately answered, or otherwise not dealtwith; and

b) a decision, act or omission has otherwiseimpaired his or her rights.

90. The Commission shall ensure that such a person hasaccess to an expeditious procedure for reconsiderationby the Commission or review by the EnvironmentalTribunal.

91. An appeal against the decision of the Commissionmay be made to the High Court.

CHAPTER VIIIPROCEDURE FOR INSPECTIONS ANDVERIFICATION

Procedure for entry and inspection. –

92. Subject to the provisions of this section, any personempowered by the Commission in this behalf shallhave a right to enter, at all reasonable times with suchassistance as he/she considers necessary, any placeother than a house/human dwelling where anindividual is residing and/or rearing his/her family:

a) for the purpose of performing any of thefunctions of the Commission entrusted tohim/her;

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b) for the purpose of determining whether and if soin what manner, any such functions are to beperformed or whether any provisions of this Actor the rules made thereunder or any notice,order, direction or authorisation served, made,given or granted under this Act is being or hasbeen complied with;

c) for the purpose of examining and testing anyequipment, industrial plant, record, register,document or any other material object or forconducting a search of any premise in whichhe/she has reason to believe that an offence underthis Act or the rules made thereunder has been oris being or is about to be committed and forseizing any such equipment, industrial plant,record, register, document or other materialobject if he has reason to believe that it mayfurnish evidence of the commission of an offencepunishable under this Act or the rules madethereunder or that such seizure is necessary toprevent or mitigate environmental pollution.

93. Every person carrying on any industry, operation orprocess of handling any hazardous substance shall bebound to render all assistance to the personempowered by the Commission under section (92) forcarrying out the functions under that section and if hefails to do so without any reasonable cause or excuse,he shall be guilty of an offence under this Act.

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94. If any person wilfully delays or obstructs any personsempowered by the Commission under section (92) inthe performance of his functions, he/she shall be guiltyof an offence under this Act.

Procedure for taking samples

95. The Commission or any officer empowered by it inthis behalf, shall have power to take, for the purposeof analysis, samples of air, water, soil, raw materials,finished products and any other substance from anyfactory, premises or other place in such manner asmay be prescribed.

96. Subject to the provisions of section (95), the persontaking the sample shall:

a) serve on the occupier or his/her agent or personin charge of the place, a notice, then and there, insuch form as may be prescribed, of his/herintention to have it so analysed;

b) in the presence of the occupier or his/her agent orperson, collect a sample for analysis;

c) cause the sample to be placed in a container orcontainers which shall be marked and sealed andshall also be signed both by the person taking thesample and the occupier or his/her agent orperson;

d) send without delay, the container or thecontainers to the laboratory established orrecognised by the Commission.

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Environmental laboratories

97. The Government may establish one or moreenvironmental laboratories or recognise one or morelaboratories or institutes as environmental laboratoriesunder this Act.

98. The Commission may lay down regulations andprocedures to specify:

a) the functions of the environmental laboratory;

b) the procedure for the submission to the saidlaboratory of samples to be tested, and;

c) such other matters as may be necessary orexpedient to enable that laboratory to carry outits functions.

CHAPTER IXENFORCEMENT, OFFENCES AND PENALTIES

Obligation of environmental compliance

99. All agencies, institutions, associations and personsshall comply with the obligations set forth in this Actand other relevant environmental legislation andregulations. The duty to comply shall inter aliacomprise the following general duties:

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a) to provide any information required byregulation or by duly issued directive;

b) to ensure that all information provided isaccurate and not misleading;

c) to cooperate during an environmentalcompliance inspection, and not wilfully delay,prevent or obstruct an officer on duty fromentering a facility;

d) to comply with all conditions set forth in a dulyissued environmental clearance or any otherissued order, and;

e) not to use or extract natural resources without apermit.

100. The Secretariat shall have primary responsibility formonitoring compliance and for enforcing theobligations of this Act.

Environmental offences

101. A violation or infringement of any of the obligationsset forth in the provisions of this Act shall constitutean offence and may be subject to penalty according tothe Bhutan Penal Code or as per penalties set forthunder section 104.

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Penalties for civil offences

102. For a civil offence under this Act the penalty maycomprise one or more of the following:

a) payment of a fine ranging in amount from one totwelve man months of the minimum NationalWage Rate;

b) order to take mitigating, corrective or restorativemeasures as may be deemed necessary to preventfurther damage being caused to human healthand/or environment;

c) reimbursement of any costs incurred by anauthority because of the offender’s failure to takethe notified measures in time;

d) payment of compensatory costs for rectifying anydamage to persons or property caused by theoffence;

e) suspension or revocation of an environmentalclearance, in part or in whole;

f) in the event of the offence being continued afterstop order, a fine equivalent to ten man monthsas per the minimum National Wage Rate per daytill the day such offence is discontinued; and

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g) shut down any industries without compensationwhen an offence continues after stop order.

103. The assessment of a penalty for a civil offence underthis Act shall be based on the:

a) cost of environmental damages caused;

b) frequency of the offence committed;

c) impact on the human health and theenvironment;

d) intention of the offender; and

e) extent of achieved or intended economicadvantage from the offence.

Penalties for criminal offences

104. When the Bhutan Penal Code does not expresslyprovide penalties for criminal offences then dependingon the magnitude of the offence and the intention ofthe offender, a criminal penalty of imprisonmentranging from one month to one year may be applied inaddition to cost of the environmental damages.

When express penalty not provided

105. When an express penalty for an environmental offenceis not provided under this Act or regulations, theoffender shall be liable as per the provisions of otherexisting laws.

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CHAPTER XMISCELLANEOUS

Members, officers and employees of the Commission to bepublic servants

106. All the members, officers and other employees of theCommission, when acting or purporting to act inpursuance of any provisions of this Act or the rulesmade or orders or directions issued thereunder shallbe deemed to be public servants.

Multilateral and bilateral environmental agreements

107. Multilateral and bilateral environmental agreementsratified by the Parliament shall be enforceable as anyother domestic laws, retrospectively as well asprospectively.

Power to make rules

108. The Commission may make rules for carrying out thepurposes of this Act.

Amendment

109. When necessary, the Commission shall submit areport and proposals for any amendments to this Actto the Parliament.

Authoritative Text

110. In case of difference in meaning between theDzongkha and the English texts, the Dzongkha textshall prevail.

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Definitions

111. In this Act, unless the context otherwise requires:

(1) Activity means any human activity includingpolicies, plans, programmes and projects.

(2) Agency means a ministry, department,municipality established under the BhutanMunicipal Act, 1999 or any autonomous publicbody of the Government of Bhutan or companiesincorporated under the Companies Act 2000.

(3) Air pollution means an undesirable change inthe physical, chemical and biologicalcharacteristics of air which will adversely affectplants, animals, human beings and inanimateobjects;

(4) Applicant means a person seeking adevelopment consent or environmental clearancefrom a competent authority or the Secretariat.

(5) Authority means the National EnvironmentCommission, Secretariat, Competent Authority ortheir officers on duty under this Act.

(6) Act means the National Environment ProtectionAct, 2007.

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(7) Balanced socioeconomic developmentalactivities means a social or economicdevelopmental program that is planned andexecuted with minimum of adverse impact on thehuman health and environment.

(8) Beneficial use means a use of the environmentor any portion thereof that is conducive to publicbenefit, welfare, safety or health.

(9) Commission means the National EnvironmentCommission

(10) Competent Authority means any agencydesignated as competent authority by theCommission to carry out its functions.

(11) Concerned people means individuals, groupsand communities whose interests may be affectedby a project

(12) Development consentmeans the approval issuedor renewed by a competent authority in the formof a license, lease, or permit for land use orconstruction.

(13) Developmental activity means developmentalprojects and programs that may be of national orlocal level, planned or ad hoc, having impact onthe human health and environment.

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(14) Effluent means any substance whether liquid,solid or gaseous which directly or indirectlyalters the quality of any segment or element ofthe receiving environment so as to effect anybeneficial use adversely or is hazardous orpotentially hazardous to health;’; and

(15) Emission control limit means the mass orvolume of pollutant expressed in terms of certainspecific parameters, concentration and/or level ofan emission that a project or its activities may notexceed during one or more periods of time

(16) Emission means the direct or indirect release ofsubstances, vibrations, heat or noise fromindividual or diffuse sources in the project intothe air, water or land

(17) Environment means the physical factors of thesurroundings of human beings including theearth, soil, water, atmosphere, climate, sound,odors, tastes and the biological factors of animalsand plants of every description including thecomplex web of interrelationships between theabiotic and biotic components which sustain lifeon earth.

(18) environmental activities – means any programsor projects for restorative, preventive orimprovement of environment

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(19) Environmental assessment means allprocedures required under Bhutanese law toidentify means to ensure that the activities of aproject are managed in an environmentally soundand sustainable way

(20) Environmental clearance means the decisionissued in writing by the Commission orCompetent Authority to commenceimplementation of a project, which includesterms to ensure that the project is managed in anenvironmentally sound and sustainable way

(21) Environmental harmmeans direct or indirect:

a. harm to the environment involving removalor destruction of, or damage to –

i. native vegetation or;

ii. the habitat of native vegetation or;

iii. indigenous aquatic or terrestrialanimals;

b. alteration of the environment to its detrimentor degradation or potential detriment ordegradation

c. alteration of the environment to the detrimentor potential detriment of an environmentalvalue; or

d. alteration of the environmental of a prescribedkind

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(22) Environmental impact assessment report meansa written analysis of the predicted environmentaldevelopmental activity and containing anenvironmental cost benefit analysis

(23) Environmental management plan means a planwhich specifies the environmental, health andsafety terms for the design, construction,operation, and decommissioning of a project

(24) Environmental terms means any terms of theenvironmental clearance and waste disposallicense; codes of best practices, standard norms orguidelines that may be attached with thedevelopmental consent, the national effluentstandards or predetermined degree determinedhazardousness of any substance or materials.

(25) Facility means a place of production, processingor a service unit that may be a point source foremission or discharge of pollutants

(26) Holder means the recipient of an environmentalclearance under Chapter III of the EA Act 2000

(27) Industrial facility means an establishmentproviding any nature of Socio economic services.

(28) Industrial plants means manufacturingindustries of any goods and services

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(29) Knowing standard means what an ordinary andreasonable person should have known of whatmay happen, resultant to one’s commission oromission of an act in the ordinary course of life.

(30) Land – means and includes messuages, buildingsand any easements relating thereto.

(31) Litter means unwanted waste materials whethera by product which has arisen during amanufacturing process or a product which haspassed its useful working life and has beendiscarded.

(32) Local Government means Geog DevelopmentCommittee, Dzongkhag DevelopmentCommittee, Municipal Committee, UrbanCommittee, Town Committee or VillageCommittee and includes any committee createdand established by or under any law to exercise,perform and discharge powers, duties, andfunctions corresponding or similar to the powers,duties and functions exercised, performed anddischarged by any such Committee;

(33) Materials any chemical or organic substance,unused raw materials or residue.

(34) Monitoring means a program of systematic,objective and quantitative measurements,observations and reporting of projects that mayhave environmental impacts

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(35) Noise pollution means the presence of sound ata level which causes irritation, fatigue, hearingloss or interferes with the perception of othersounds and with creative activity throughdistraction

(36) Person means any individual, legal entity oragency whether registered or not registeredunder the Companies Act 2000.

(37) Plan means a coordinated set of policies andprograms, based on the political decisions of theGovernment of Bhutan, intended to achievespecific objectives within a specified time period.

(38) Point source means a facility dischargingemission or effluents of any nature into theenvironment

(39) Pollutant means any substance whether liquid,solid or gaseous which directly or indirectlyalters the quality of any segment or element ofthe receiving environment so as to effect anybeneficial use adversely or is hazardous orpotentially hazardous to health; and,

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(40) Pollution means any direct or indirectalternation of the physical, thermal, chemical,biological, or radioactive properties of any part ofthe environment by the discharge, emission, orthe deposit of wastes so as to effect any beneficialuse adversely or to cause a condition which ishazardous or potentially hazardous to publichealth, safety, or welfare, or to animals, birds,wildlife, aquatic life, or to plants of everydescription;

(41) Prescribed means prescribed by statutoryregulations.

(42) Program means a set of coordinated activities ofpublic or private to achieve specific objectives ofa plan

(43) Project means an activity which may havesignificant effects on the environment

(44) Remedial Measures developmental activitiesundertaken by the polluter to reduce adverseenvironmental effects or reclamation of affectedareas.

(45) Governmentmeans the Government of Bhutan

(46) Sector based guidelines means guidelines issuedas code of best practices by relevant sector oragencies.

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(47) Strategic Environmental Assessment means asystematic process for evaluating theenvironmental consequences of a proposedpolicy, plan or program of the Government

(48) Secretariat means the Secretariat of the NationalEnvironment Commission

(49) Taking means physically removing or extractingnatural resources from its original place ofgrowth and deposition

(50) Toxic chemical means a substance characterizedby definite molecular composition which hasharmful effects on living materials or which cancreate hazardous changes in the environment.

(51) Waste means includes any matter prescribed tobe waste and any matter, whether liquid, solid,gaseous, or radioactive, which is discarded orintended to be discarded.

(52) Water bodies means shall include territorialrivers, lakes, ponds and wet earths of national orhistoric significance within the politicalboundaries of the Kingdom.

(53) Wetland means Land where an excess of water isthe dominant factor determining the nature ofsoil development and the types of animals andplant communities living at the soil surface. Itspans a continuum of environments whereterrestrial and aquatic systems intergraded.

(54) Multilateral and Bilateral environmentalagreements means treaties, conventions,covenants, executed between two or morecountries including their protocols.