Presentation by Cristian Franz, Head of the Superintendence of the Environment, Chile, at the OECD Conference on Enforcement and Inspections which took place at the OECD Headquarter in Paris on 9 November 2017. Further information is available at http://oe.cd/regpol

1. BUILDING INSTITUTIONS
SUPERINTENDENCE OF THE
ENVIRONMENT- SMA
Cristián Franz
Superintendent of Environment of
CHILE
BUILDING INSTITUTIONS
SUPERINTENDENCE OF THE
ENVIRONMENT- SMA
Cristián Franz
Superintendent of Environment of Chile
November 2017

2. What is
SMA?A governmental institution of
Chile, in charge of both
enforcement and sanctions of
instruments of environmental
management.
http://www.sma.gob.cl/

3. New environmental
institutional framework
Law 20.417, 2010
• Policies and regulation in enviromental matters.
Ministry of Environment
(MMA)
• Administration of the Environmental Impact
Assessment System – SEIA.
Environmental Assessment
Service (SEA)
• Inspection and Sanction regarding standards and
environmental permits.
Superintendence of the
Environment (SMA)
• Solving environmental controversies of their
competence.
Environmental Courts (TA)
https://www.leychile.cl/Navegar?idNorma=1010459

4. What SMA does?
Enforcement of instruments of environmental management
and environmental regulations.
Assists regulated community to promote compliance and provide
information to the community.
Sanctions non compliance with environmental regulations and
request entry to the SEIA if pertinent.
Sets technical guidelines on environmental matters subject of
environmental enforcement

5. ¿What does the SMA inspect?
The SMA inspects instruments of environmental nature, defined by the
environmental law of Chile:
15.400 16 9 14
Environment
license
Prevention and
decontamination
plans
Emission
standards
Quality
standards

6. How SMA does Enforcement?
Directly
SMA
Entrusted
Through Sectorial
Services with
environmental
enforcement
responsibilities
Authorized Third
Parties

7. When SMA carry
out Enforcement activities?
PROGRAMS OR
SUBPROGRAMS
Set by Resolution
every year
COMPLAINTS/DENOUNCES
Issued by citizens,
other governmental
agencies or the same
regulated community
through the self-
denounce mechanism
EX-OFFICIO
By the same SMA

8. Activity
Programme
Activity Planning Inspection
Report from
Enforcement
Department
Publication on Web
Referring to
Sanctions
Department
- Coordination
- Identification of
critical points
- Field Inspection
- Desk study
- Samples & Analysis
- Assement & data
compilation
- Conclusion
Enforcement activities flow
without findings
with findings

9. Reports with
findings
Assessment
by
Sanctions
Department
Denounces
Sanctions
Procedure
Pre-Instruction
Compliance
Programme
Post-Instruction
Make
Charges
Enforcement activities flow

10. Sanction procedures
Background analysis
Case file
Denounces
Information
requirements
Is there merit to initiate
sanction procedures?
Make charges
Disclosure of case
file
NO
YES

11. Sanction procedures
Options DISCHARGES
Effect:
procedure
continues
Potential result:
SANCTIONS
• Admonition by
writing.
• Fines up to 10.000 UTA
(8.908.834 USD)
• Temporal or definitive
closing.
• Environmental license
revocation.
COMPLIANCE PROGRAM:
Effect:
Procedure is suspended
Potential result:
No sanctions

12. Legal Sanctions Applicable
• Written warning
• Permit revocation
• Fine up to 500 UTM
(USD$ 34.603)
Art 36 Num. 1 (some criteria)
a) Not remediable
environmental damage
b) Serious effects on human
health
f) Operating without the
corresponding permit and
envornmental effects are
involved
(among other criteria)
Art 36 Num. 2
a) Remediable
environmental damage
b) Significant risk for human
health
c) Operating without the
corresponding permit
without involving
envornmental effects
(among other criteria)
EXTREMELY
SERIOUS
VIOLATION
SERIOUS
VIOLATION
MINOR
VIOLATION
BEFORE SMA
Permit revocation
Temporary or permanent
Close down
Fine up to 10.000 UTA
(USD$ 8.900.000)
Permit revocation
Temporary or permanent
Close down
Fine up to 5.000 UTA
(USD$ 4.450.000)
Written warning
Fine up to 1.000 UTA
(USD$ 830 - USD$ 830.479)
WITH SMA

13. Legal circumstances for
determining the specific sanction
a) Magnitud of damage or risk.
b) Number of persons whose health could have been affected.
c) The economic benefit obtained from the violation.
d) The intention and the degree of participation in the violation
e) The previous behaviour of the offender.
f) The economic capacity of the offender.
g) Accomplishment of the compliance program.
h) Impact on a Natural Protected Area.
i) Any other circumstance that, in founded judgement of the SMA, should be considered as relevant
for the determination of the sanction.

14. Focus on Compliance
Promotion
The compliance program is a more efficient instrument than sanctions in order to meet the
objectives set by the SMA: The environmental regulations being met.
In fact, money coming from sanctions is directed towards the Public Treasury, not towards
reparation funds or similar instruments. Meaning, money from sanctions can be used in
construction of schools or streets but not to environmental purposes
Instead, money coming from compliance programs is invested
directly in the solution of enviromental problems brought
about by non-compliance, which is good for:
• Authorities fulfilling their objectives.
• Entire communities that stop suffering from the effects of
environmental problems.
• The companies themselves, improving their environmental
and social performances and in this way securing the
viability of their businesses.

15. Compliance programs
279 approved PDC
223 currently in execution
19
28
64
87
81
10 6 6 5
17
2013 2014 2015 2016 2017
Approved Rejected

16. Sanction procedures
Amounts in MUS$
Compliance Programs
Fines

17. Remote monitoring
Use of online sensors:
• Monitoring of Copper Smelting
facilities (D.S 38 de 2013).
• Portable equippment to support
inspection activities (noise
monitoring, odors, particulate matter,
gases).
• Pilot project : Sensor network for
particulate matter in the Capital
Region (Santiago).
New technologies
Challenges

18. Satellital image analysis:
• Territorial environmental monitoring
program: Early alerts and support in
ongoing processes.
• High performance processing capacity.
Challenges
SMA-OS System
• Reducing transaction times and the
review of Environmental monitoring
reports.
• Colaborative work platform developed
entirely by the SMA.
• Complete implementacion with the 16
entities from RENFA by 2018.
New technologies

19. GREEN TAX LAW
Boilers and turbines with
thermal potency equal or
greater than 50 MWt
2017: First year of emission
declarations.
2018: National tax service (SII)
collect taxes.
Challenges
MONITORING REPORT VERIFICATION

20. Cristián Franz
Superintendent of the Environment
Chile