Interim Measures on the Compensatory Use of the Special Fund for Control of Pollution Source

(Promulgated by the State Council on July 28,1988)ª¥ª¥

Article 1 This Measuers is established for good control of pollution source and rational use of the fund for the control so as to enhance the social benefit.

Article 2  The project fund for control of pollution source (hereafter refered to as fund) is set up in the state by the environmental protection agencies in provinces (autonomous regions or municipalities directly under the Central Government), cities and counties, and is managed in different levels with independent accounting and discountable lending.

The fund is intrusted to bank in lending for compensatory use.

Article 3  The fund is drawn from the fee levied on over-standard discharge of pollutant which is used to subsidize the key pollutant discharge unit to control the pollution source; and the drawing rate ranges from 20% to 30% determined by the governments in the provincial level.

Where this fund has been put into practice partially or entirely, it may keep on implementing in accordance with the original provision.

The unspent part of the fee levied in the past on over-standard discharge of pollutant should be brought entirely within the fund.The lending interest, overdue fine and interest-fine for misappropriation should be brought entirely within the fund with the exception of the service charge for the bank according to the government regulations.

Article 4  The objects of application for the fund are the enterprises that pay the fee for over-standard pollutant discharge.

Article 5  The scope of use of the fund:ª¥
(1) The control project of key pollution source;
(2) The comprehensive utilization project of "three wastes";ª¥
(3) The Demonstrative control engineering for pollution control;
(4) The control facilities for pollution source of the enterprises to be merged , shifted or moved in order to solve the pollution problem.ª¥

Article 6  Within the object of application and the scope of use of the fund ,the enterprise possessing the following conditions can apply to use the fund from the environmental protection agency:
(1) Handing in the fee for over-standard discharge of pollutant in accordance with the regulations;ª¥
(2) Practicable project through feasibility study;
(3) Raising a certain radio of funds itself;
(4) Being able to pay back the loan.ª¥

Article 7  A priority of lending should be given to those possessing the conditions mentioned in Article 6 and also belonging to one of the following cases:
(1) The project of control within a set deadline;
(2) The control project of serious pollution urgently needed;
(3) The project of which the self-raising funds occupy above 60% of the total investment.

Article 8  The fund is unified management of the environmental protection agency; and the lending plan is sued jointly with the financial agency which allocates each season the stock of the fee of over-standard discharge of pollutant to the "special account of the fund"of the environment protection agency in bank according to the lending plan .

Article 9  The applying enterprise must fill up the "application form of lending for control project of pollution source", appending the report of feasibility study and the like, to be examined and approved by the environmental protection agency, after it has been pre-examined by competent agency of the enterprise and ensured the ability to pay back by the bank entrusted by the environmental protection agency.

The competent agency of the enterprise after pre-examining the application forms from its subordinate enterprises based on the practical situation itself, may also submit a unified application for the fund to the each enterprise according to the approval of the environmental protection agency.

Article 10  After the approval of the application, the application, the applying enterprise will sign an agreement with the bank which will grant exactly the amount on time according to the agreement.The bank will supervise the use, of loan, urge to pay the capital and interest and submit the report of loan granting and recovery each season to the financial and the environmental protection agencies on the basis of regulations.

Article 11  The deadline of lending can not exceed three years. The monthly rate of interest is 2.4¡ëfor the deadline of one year,2.7¡ë for the two years and 3.0¡ë for the three years; and the interest should be squaerd up each season.

Article 12  Before the construction project is put into formal operation or use, the application enterprise must submit the "acceptance report on the completion of the control project of pollution source"to the environmental protection agency taking charge of the approval of lending. After accepted to be qualified, the environmental protection agency can exempt the application enterprise a certain amount of the lending capital, which is in general below the surplus of the total of the fund in the past after deducting the exempting amount each year.

Article 13  The lending capital and interest besides the exempted amount defined in the Article 12, may be paid back with the following funds:
(1) Self-owned funds including the funds for ernewal, reform and development of production of the state enterprise and the funds self-reserved for the coopreated enterprises as well as those for ernewal and reform;
(2) Part of the projects from comprehensive utilization of "three wastes"reserved by the enterprise;
(3) Funds allocated by the higher level for control of pollution source.

Since the amount to pay back by the enterprise is rather great, it is difficult to use entirely the funds mentioned in the above article. After approved by the financial agency, it may be paid back each year in the same way as handing in the fee of over-standard discharge of pollutant, from one year before the formal operation of the lending project up to three years at most.

Article 14  In case the application enterprise requires to change or to terminate the lending agreement, it should be noticed to the bank and submitted for approval from the environmental protection agency which has formerly approval the application.

Article 15  the application enterprise should pay back the loan on time and square up both the capital and the interest. If the payment is overdue, the bank has the right to get it back within a stated time, and to raise the monthly intreest to the highest rate of 3.0¡ë as well as to get in addition the interest fine of 1.5¡ë monthly rate of interest.

Article 16  In case the application enterprise misappropriates the loan, the bank has the right to get back the loan partially or entirely; and to get the interest of the misappropriated part at the highest monthly rate of 3.0¡ë as well as the interestª²fine of 6.0¡ë monthly rate of interest in addition. The person directly in charge of the case and the leading cader of the enterprise will be punished administratively in the working unit or by the competent agency of higher level; and the responsibility of the criminal offence will be investigated by the judicial organ according to law .ª¥

Article 17  The working staff of the environmental protection departments neglecting their  and engaging in malpracfices for selfish gains will be punished administratively in the working unit or by the competent agency of higher level; and the responsibility of the criminal offence will be investigated by the judicial organ according to law.

Article 18  The people's government of each province, autonomous region or municipality directly under the Central government may work out the implementation provision on the basis of this Measures.

Article 19  This Measures shall come into force from September first, 1988.