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Offset of Emission Permits among Legal Entities Taking Part in the Permit Allocation Experiment (on the Example of Companies of the Fuel and Energy Complex)
 
PIIS231243500025252-5-1
DOI10.18254/S231243500024433-4
Publication type Article
Status Published
Authors
Nadezhda V. Golub 
Occupation: Leading Legal Counsel of the Department of Legal, Corporate and Property Relations at Territorial Generating Company No. 11, JSC
Affiliation: Territorial Generating Company No. 11 Joint-Stock Company
Address: Russian Federation, Omsk
Journal nameEnergy law forum
EditionIssue 1
Pages67-76
Abstract

Issues of protection of the atmospheric air are among the priority ones for the state. However, operations of companies in certain production sectors, which inter alia include the fuel and energy complex (FEC), are directly associated with the emission of pollutants into the atmosphere. A permit allocation experiment has been approved within the framework of the Clean Air federal project but the experiment performance procedure has a number of gaps making it impossible to efficiently reduce the pollutant emission volume. The author has studied the main problems on the example of the FEC, in particular, heat supply and generating companies. The impossibility of permit-regulated companies to dispose of permits including by way of redistribution may lead to serious consequences for both the environmental and energy security of the country. The solution proposed by the author is introduction in the applicable laws of the mechanism of redistribution (offset) of pollutant emission permits, which will allow to drastically reduce the atmospheric air pollution level in large industrial centers.

Keywordsenergy law, energy security, emission permits, permit allocation experiment, reduction in atmospheric air pollution
Received20.02.2023
Publication date31.03.2023
Number of characters28624
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1 The Constitution of the Russian Federation enshrines the right of everyone to favorable environment [1] since the life quality of the population largely depends on such factors as the environmental situation, in particular, the atmospheric air quality.
2 Issues of protection of the atmospheric air and reduction in the volume of emissions and the concentration of pollutants are among the priority ones for the state. Minimization of the negative environmental impact is put under special control of the President of the Russian Federation, for which reason there was issued Decree of the President of the Russian Federation No. 204 of May 7, 2018 On National Goals and Strategic Tasks of the Development of the Russian Federation for the Period up to 2024 [2] (“Decree No. 204”).
3 Based on Paragraph 3, Subclause A, Clause 7 of Decree No. 204, one of the key environmental goals set to the Government of the Russian Federation is a drastic reduction in the atmospheric air pollution level in large industrial centers by 2024 including an at least 20 % reduction in the total volume of pollutant emissions into the atmospheric air in the most polluted cities.
4 In pursuance of the environmental provisions of Decree No. 204, the Presidium of the Council for the Strategic Development and National Projects under the President of the Russian Federation approved the passport of the Ecology national project by minutes No. 16 of December 24, 2018, which includes the implementation of the Clean Air federal project in the period from October 1, 2018, to December 31, 2024 [3]. The said document has been then replaced with a new Passport approved by the Ministry of Natural Resources and Environment of the Russian Federation [4].
5 Federal Law No. 195-FZ of July 26, 2019 On Conducting of a Pollutant Emission Permit Allocation Experiment and Amendment of Certain Legal Acts of the Russian Federation in Terms of Reduction in the Atmospheric Air Pollution [5] (“Law No. 195-FZ”) was adopted within the framework of the implementation of the Clean Air federal project.
6 The experiment on allocation of permits for emission of pollutants (except for radioactive substances) into the atmospheric air based on summary estimates of the atmospheric air pollution (the “experiment”) is aimed at reducing the negative environmental impact level and is conducted from January 1, 2020 to December 31, 2016 [6].
7 At the same time, it is worth paying attention to the fact that operations of companies in certain production sectors are directly associated with the emission of pollutants into the atmosphere. This concerns companies of the fuel and energy complex among others.
8 Thus, for example, the production of heat and electric energy on the present stage of development of the respective technologies is impossible without occurrence of combustion products, resins and other substances making a negative environmental impact. The volume and composition of emitted pollutants differs depending on the features of engineering processes at facilities making a negative environmental impact. Meanwhile, operations of companies in the energy sphere are unceasing and any suspension results in negative consequences for the respective legal entities, the population of the region and the state in general.
9 Consequentially, we believe that the above indicated goals consolidated in Decree No. 204 cannot be achieved without close cooperation with companies that are part of the fuel and energy complex. It is no coincidence that among the key areas of activities of the Government of the Russian Federation for the period up to 2024 there are reduction in atmospheric air pollution and development of the energy infrastructure [7].
10 As noted earlier, it has been resolved to conduct an experiment to improve the environmental situation by introducing emission permits and thus reducing the volumes of pollutants emitted into the atmospheric air; 12 city districts most polluted in terms of the atmospheric air have become the initial participants of the experiment. In accordance with Clause 2 of Article 2 of Law No. 195-FZ, each territory of the experiment has approved a complex measure plan to reduce the emission of pollutants into the atmospheric air.
11 Thus, based on the requirements of Law No. 195-FZ, emission regulation activities in the territory of the experiment are as follows:
12 - introduction of permits for emission of pollutants into the atmospheric air based on summary estimates;
13 - approval of complex measure plans to reduce the emission of pollutants into the atmospheric air.
14 Emission permits are introduced in accordance with the Rules for Allocation of Permits for Emission of Pollutants (Except for Radioactive Substances) into the Atmospheric Air (“Permit Allocation Rules No. 814”) based on summary estimates for each facility making a negative environmental impact (the “NEI facilities”) [8]. Such permits are determined in respect of each priority pollutant for the aggregate of emission sources of a permit-regulated facility (permit-regulated facility in general).

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1. Constitution of the Russian Federation (adopted on December 12, 1993 by a nationwide vote with amendments approved on July 1, 2020, by an all-Russian vote) // Official Internet portal of legal information http://www.pravo.gov.ru,  February 1, 2023.
2. Decree of the President of the Russian Federation No. 204 of May 7, 2018 On National Goals and Strategic Tasks of the Development of the Russian Federation for the Period up to 2024 // Official Internet portal of legal information http://www.pravo.gov.ru,  February 1, 2023.
3. Passport of the Ecology national project (approved by the Presidium of the Council for the Strategic Development and National Projects under the President of the Russian Federation, minutes No. 16 of December 24, 2018) // Official website of the Ministry of Natural Resources and Environment of the Russian Federation http://www.mnr.gov.ru,  January 26, 2023.
4. Passport of the Ecology national project (approved by the Ministry of Natural Resources and Environment of Russia) // Official website of the Ministry of Natural Resources and Environment of the Russian Federation http://www.mnr.gov.ru,  January 26, 2023.
5. Federal Law No. 195-FZ of July 26, 2019 (as amended and supplemented on March 26, 2022) On Conducting of a Pollutant Emission Permit Allocation Experiment and Amendment of Certain Legal Acts of the Russian Federation in Terms of Reduction in the Atmospheric Air Pollution // Official Internet portal of legal information http://www.pravo.gov.ru,  January 20, 2023.
6. Federal Law No. 71-FZ of March 26, 2022 On Amendment of Certain Legal Acts of the Russian Federation // Official Internet portal of legal information http://www.pravo.gov.ru,  February 5, 2023.
7. The Key Areas of Activities of the Government of the Russian Federation for the Period up to 2024 (approved by the Government of the Russian Federation, No. 8028п-П13 of September 29, 2018) // ConsultantPlus reference legal system.
8. Order of the Ministry of Natural Resources and Environment of Russia No. 814 of November 29, 2019 On Approval of Rules for Allocation of Permits for Emission of Pollutants (Except for Radioactive Substances) into the Atmospheric Air // Official Internet portal of legal information http://www.pravo.gov.ru,  January 26, 2023.
9. Federal Law No. 7-FZ of January 10, 2002 (as amended and supplemented on July 14, 2022) On Environmental Protection // Official Gazette of the Russian Federation. January 14, 2002. No. 2. Art. 133.
10. See: URL: https://www.kommersant.ru/doc/5282815 
11. See: URL: https://www.vedomosti.ru/business/news/2019/04/15/799117-zakonoproekt-zagryaznyayuschih-vibrosov;  https://www.interfax.ru/russia/658198 
12. See: Radishauskas T.A. The Permit Trading System as One of the Methods of Improvement of the System of Environmental Activities in Russia / T.A. Radishauskas // International Research Journal. 2016. No. 4 (46). URL: https://research-journal.org/archive/4-46-2016-april/sistema-torgovli-kvotami-kak-odin-iz-metodov-sovershenstvovaniya-sistemy-prirodooxrannoj-deyatelnosti-v-rossii,  07.02.2023.  DOI: 10.18454/IRJ.2016.46.120
13. Order of the Ministry of Natural Resources and Environment of Russia No. 813 of November 29, 2019 On Approval of Rules for Making and Update of Summary Estimates of Atmospheric Air Pollution // Official Internet portal of legal information http://www.pravo.gov.ru,  February 5, 2023.
14. Order of the Ministry of Natural Resources and Environment of Russia No. 805 of November 27, 2019 On the Inter-Departmental Council for Conducting an Experiment on Allocation of Permits for Emission of Pollutants (Except for Radioactive Substances) into the Atmospheric Air Based on Summary Estimates of Atmospheric Air Pollution (together with the Provision on the Inter-Departmental Council for Conducting an Experiment on Allocation of Permits for Emission of Pollutants (Except for Radioactive Substances) into the Atmospheric Air Based on Summary Estimates of Atmospheric Air Pollution) // Official Internet portal of legal information http://www.pravo.gov.ru,  February 2, 2023.
15. See: URL: https://regulation.gov.ru/ 
16. See: URL: https://rspp.ru/events/news/biznes-vystupil-protiv-oborotnykh-shtrafov-za-prevyshenie-kvot-na-vybrosy-62d13e9964d4e/?sphrase_id=246399

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