The year 2016 was a turning point in the way China deals with soil pollution. The 10-Chapter Soil Pollution Action Plan laid the foundation and was followed by a rapid rolling out of new initiatives, regulations and enforcement programs. This presentation was given at the European Chamber in Shanghai to provide companies operating in China an update about these new requirements and to share with some insights in strategies leading MNC’s are implementing to manage their liabilities.

1. Implications of the recent
Soil and Groundwater regulations
on companies operating in China
by Johnny Browaeys
Director of Corporate Services
GREENMENT Environment
Presented at the European Chamber in Shanghai on 21 September 2017

2. You will learn about…
1. Risks, liabilities and obligations
2. Targeted sectors and companies
3. Obligations starting, running and closing operations
4. Monitoring, assessment and remediation
5. Special situations and insights (during Q&A)
2

3. • The company and I
• Overview of the Regs
• What to remember & do
• Best practices
• Something to think about
• Questions & Answers
3

4. 4
Who am I?
Moved to China in 2003, set up the West China office for ERM in
2005 and the Environmental Business Unit CH2M Hilll in 2008,
mostly serving foreign companies manage EHS liabilities in China
In 2012 moved to DuPont mostly serving Chinese state owned and
private companies to improve their EHS performance in China
In 2016 moved to GREENMENT, serving foreign & Chinese
companies manage their EHS liabilities and improve their EHS
performance in and outside China
庄博闻

5. 5
GREENMENT: a short but explosive track record…
In February 2012, CH2MHILL decided to divest its Environmental
Business Group in China. The Chinese team took over, did a
management buy out and the rest is history…
GREENMENT, the first Chinese environmental consultancy
operated by international standards, was born
Focusing on real problem solving in the Chinese way, GREENMENT
has grown fast both organically and via M&A and currently has
close to 100 people

6. • The company and I
• Overview of the Regs
• What to remember & do
• Best practices
• Something to think about
• Questions & Answers
6

7. An overview of the overall framework
(no specific soil law yet but many others laws are relevant, and a conglomerate of measures, views, plans etc. apply ….)
7
Environmental Pollution Prevention and control Law of Solid Wastes 、Quality
and Safety Law of Agricultural Products》等
Regulations on safety management of hazardous chemicals, Basic Regulations
on Farmland Protection,
Regulations on Land reclamation, etc.
NPC and its standing committee member
the State Council
2015:Environment protection law
No sub law on soil pollution prevention and control
No regulations on soil pollution prevention and control
2011:Views on strengthening the key work of environmental protection
2013: Recent working arrangement for soil environmental protection and
comprehensive treatment
2016:Action Plan on Prevention and control of Soil Pollution（10-Chapter Soil
Pollution Action Plan)
2017:Management measures on soil environment of contaminated site
2017:Management measures on farmland soil environment
2004:Notice on work of Prevention and control of environmental pollution in
the Process of Shutting down of Industrial Enterprises
2008: Views on strengthening working of soil pollution prevention and control
2012:Notice on the Environmental Safety regarding to the Reuse of Industrial
Enterprise Site
2014:Notice on Strengthening Pollution Prevention and control in the Process of
Shutting down, Relocation of Industrial Enterprises or the Re-development and
Re-utilization of Industrial Sites
criminal law、land management law、agricultural law, etc.
Measures for the implementation of land reclamation
Management Measures on agricultural producing area safety, etc.
Regulations on safety management of hazardous chemicals, Basic Regulations
on Farmland Protection,
Regulations on Land reclamation, etc.
national ministries and commissions
Implementation program of heavy metal pollution prevention and control for
agricultural producing area,
Pilot program of promotion agricultural waste re-utilization,
Plan on national agricultural sustainable development (2015-2030), etc.
Ministry of Environmental Protection >
<Ministry of Agriculture / Land and Resources /
Ministry of Housing and Urban-Rural Development,…
<specific> <relevant>

8. Most relevant Regs National Level
(most of below are focused actions from the government to address critical issues, and serve as pilots to learn from)
1. Notice on work of Prevention and Control of environmental pollution in the
Process of Shutting down of Industrial Enterprises （Ministry of Environmental
Protection, No. 47, 2004）
2. Notice on the Environmental Safety regarding to the Reuse of Industrial
Enterprise Site” (Chinese Ministry of Environmental Protection, No. 140, 2012)
3. Notice of the General Office of the State Council on Printing and Distributing
the Arrangement of Recent Soil Environmental Protection and Comprehensive
Management” (General Office of the State Council, No. 7, 2013)
4. Notice on Strengthening Pollution Prevention and Control in the Process of
Shutting down, Relocation of Industrial Enterprises or the Re-development and
Re-utilizationof Industrial Sites ” (Chinese Ministry of Environmental Protection,
No. 66, 2014)
5. Action Plan on Prevention and Control of Soil Pollution（10-Chapter Soil
Pollution Action Plan，2016.5）
6. Measures of Soil Environmental Management for polluted plots (Chinese
Ministry of Environmental Protection, No. 42, 2016)
8

9. Most relevant Regs Shanghai Level
(as example, other cities have their own local regs)
1. Measures of Environmental Security Management in the Process of Re-
development and Re-utilization of Industrial Sites and Municipal Sites,
in Shanghai (2014.6)
2. Regulations on Strengthening the Management of Industrial Land
Transferring (Shanghai Government Office [2015] No. 23)
3. Regulations on Strengthening the Management of the profit-oriented
land (Shanghai Administration Office [2015] No. 30)
4. Measures of Soil Environmental Protection for the Whole Life Cycle
Management of Profit-oriented Land and Industrial land (Shanghai
Environmental protection [2016] No.226)
5. Implement scheme on the action plan for prevention and control of soil
pollution (Shanghai Administration Office [2016] No. 111）
9

10. Most relevant soil standards
1. Environmental quality standards for soil（GB15618-1995）
2. Standard of soil quality assessment for exhibition sites (trial)（HJ350-2007）
3. Screening level of risk assessment for soil environment in Beijing (DB11/T811-2011)
4. Technical Specification for risk assessment of polluted plots in Zhejiang（DB33/T892-
2013）
5. Screening level of health risk assessment for soil environment in Shanghai (2015)
6. Environmental quality standards for soil of agricultural land (third exposure draft)
7. Screening level of risk assessment for polluted soil of construction land (third
exposure draft)
8. Dutch Intervention Values for soil（VROM2013）
9. Regional Screening Level in the ninth district of the United States （RSL2016）
10

11. Most relevant groundwater standards
1. Quality standard for groundwater （GB/T14848-1993）
2. Environmental quality standards for surface water（GB3838-2002）
3. Standard for groundwater quality （DZ/T0290-2015）
4. Standards for drinking water quality （GB5749-2006）
5. Dutch Intervention Values for groundwater （VROM2013）
6. Regional Screening Level in the ninth district of the United States (RSL2016 &SL2016)
11

12. Technical guidelines
 completion acceptance
（HJ 682-2014）
 Technical Guideline for Site Environmental Investigation
（HJ 25.1-2014）
Technical Guideline for Site Environmental Investigation
in Shanghai
 Technical Guideline for Site Environmental Monitoring
（ HJ 25.2-2014 ）
Technical Guideline for Site Environmental Monitoring
in Shanghai
 Technical guidelines for risk assessment of
contaminated sites
（ HJ 25.3-2014 ）
Technical guidelines for risk assessment of contaminated
sites in Shanghai
 Guidelines for Soil Remediation of Contaminated Sites
（HJ 25.4-2014）
standard for remediation plan preparation of
contaminated sites in Shanghai

13. Expected:
“The Law on Soil Pollution Prevention and Control”
At the 12th National People's Congress (2013-2018) an Environmental and Resources Committee was
engaged which conducted research 15 times, held symposiums 25 times and listened to lectures 8
times. More than 70 articles have been produced, leading to a draft document with 70 thousand
words, which so far has been revised 10 times.
• 2006 Research by the experts of the Administration of Environmental Protection
• 2010 Completion of expert opinion
• Nov 2012 Ministry of Environmental Protection established a soil legislation expert group
• 2013 Formally included in the first class of legislative plans at the 12th NPC
• Dec 2014 Ministry of environmental protection submitted suggestion for the draft
• June 16 2017 First review by the 28th meeting of the 12th NPC
• June 28~July 27 draft opened to the public to sollicit for opinions
• 2018 the second review by xxx meeting of the 12th NPC
• 2018 Vote through xxx meeting of the 12th NPC
• 2018? Implement officially
13

14. But most importantly: currently applicable:
“Measures” of Soil Environmental Management for Contaminated Sites
(announced by MEP on Dec. 31 2016, valid since 1 July 2017 and acting as a “trial” for the coming law）
1. Industrial and Mining sites that are closed and redeveloped pose a serious security
risk on public health and ecological environment, therefore, re-development and re-
utilization shall be supervised
2. This applies to any plot of land formerly used for non-ferrous metal smelting,
petroleum processing, chemical, coking, electroplating, tanning, hazardous waste
storage and disposal that will be redeveloped for residential, commercial, school,
medical institutions, nursing room and other public facility purposes
3. Land use will be suspended and risk assessment and risk control & management will
be performed to prevent exposure to human health diffusion of pollutants
4. Stakeholders such as the land user, the polluter, qualified contractors and third party
verifiers will be determined
5. A process to disclose the management of polluted plots will be established and
opened to the public
14

15. “Measures” of Soil Environmental Management for Contaminated Sites
(below are the basic steps that targeted sites shall take）
1. Investigation of soil and groundwater shall be done at suspected contaminated plots
2. Risk assessment of soil and groundwater to provide a scientific basis for risk control
&management, governance and remediation
3. Risk control and management for the polluted land to prevent pollutant diffusion in
the soil or groundwater and to reduce any hazardous exposure risk
4. Governance and remediation of pollution plots to strengthen prevention and
governance of secondary pollution
5. Third party verification of the results, by entrusted institution
15

16. “Measures” of Soil Environmental Management for Contaminated Sites
(the land user or polluter shall engage qualified companies and be punished if failed to do so）
1. Land rights users shall carry out the preliminary investigation of soil and groundwater
and be responsible for the result
2. The “Polluter Pays” principle will be used with lifelong accountability
3. Investigations shall be done by qualified companies and the authenticity, accuracy
and integrity of the investigation results shall be verified by appropriate third parties
4. Polluters and falsifiers of data shall be punished and joint liabilities will be assumed in
case of more than one polluter
16

17. “Measures” of Soil Environmental Management for Contaminated Sites
(below illustrates how contaminated land shall be managed)
1. Land right users should perform a risk assessment and upload the information
open to the public
2. On such land, exploitation shall be suspended, pollution and diffusion should be
prevented
3. Risk control and management shall ensure secure use of contaminated land
4. The competent department of environmental protection at county level shall
submit a proposal that identifies designated areas and organizes environmental
monitoring of soil, groundwater, surface water and atmosphere
17

18. “Measures” of Soil Environmental Management for Contaminated Sites
(remediation shall be done properly by qualified contractors and verified by independent parties)
1. Contaminated land that will be used for residence, commercial, school, medical
institution, nursing room, and other public facilities shall be remediated and the
information shall be made open to the public
2. Treatment and remediation shall be conducted on the original site, in case transport of
polluted soil is required, then transport time, means, routes, amount of polluted soil,
destination and final treatment measures shall be reported to the environmental
protection authorities of both the original site and the destination site and re-use of any
treated soil shall meet the related regulations and standards
3. After completion of the remediation, land right users shall entrust a third party to
complete an assessment of the remediation result and report the results to the public
4. If the remediation result doesn’t meet the related standards then no new construction
project on the site will be approved
18

19. • The company and I
• Overview of the regs.
• What to remember & do
• Best practices
• Something to think about
• Questions & Answers
19

20. 1) Pollution Prevention and Protection
(industries, companies and activities will be targeted and specific actions will be required)
1. To control the discharge of toxic and harmful substances
2.To prevent leakage of toxic and harmful substances
3.To establish and implement annual detection program
4.To report discharge and transfer of toxic and
harmfulsubstances annually
* Note：Special situations
Enterprises that may be causing contamination, or that need to remove facilities, equipment or
structures, or that plan to close or relocate, or that enhance facilities or other reasons
Key industries that shall be
supervised for soil pollution
prevention and control
Key enterprises that shall
be supervised for soil
pollution prevention and
control
Comply with management measures of soil prevention and
control for listed industrial published by apartment of
environmental protection and industry & information
technology
General enterprises (all
shall prevent & control soil
and groundwater pollution)
Take measures of effective prevention to deal with
possible activities of soil pollution, and prevent and reduce
pollution
No provision
Take measures of pollution prevention and
control
Preparation of prevention & control program and
emergency response program, and recording on
local department of environmental protection
and industry & information technology
General situation *special situationTypes of enterprise

21. Who is targeted?
(6 industries and 3 activities are targeted in general and individual companies will targeted specifically)
21
Non-ferrous metal
smelting
petroleum processing
chemical
coking
electroplating
tanning
Collection of hazardous
wastes
Utilization of hazardous
wastes
Disposal of hazardous
wastes
Residential
Commercial
School
Medical
Nursing room
Plan to convert land use
Plan to reclaim land use rights
Reclaimed land use rights

22. 2) Once investigation reveals contamination
(once investigated your land plot will be known and tracked)
* Note ：
Special situation 1: According to the investigation of soil pollution, detection and inspection results on site, government should ask relevant
enterprise to conduct investigation of soil and groundwater, the relevant enterprise involved in ①toxic and harmful substances 、②
hazardous solid waste、③ solid waste stacking/landfill ④extraordinarily / serious pollution accident， ⑤other situation ；
Special situation 2: profit-oriented land use changing, or before withdraw , sell, transfer, termination of land use right
1. Find out the types and
source of pollution；
2. Investigation results should
be submitted to local
environmental protection
apartment, and identified
pollution responsible person
To conduct site investigation of soil
and groundwater, the results should
be submitted to the department of
land resource, a record to be held in
the department of environmental
protection and urban planning
No provision
No provision
But refer to requirements from the
directory of key industrial
supervision for soil pollution
No provision；
【refer to the general private in
article 7， all institution and
individual should be responsible for
the soil pollution according to the
law, including responsibility of
pollution investigation, land right
user should conduct pollution
investigation and have recourse
right of pollution responsible
person
Key industries that shall be
supervised for soil pollution
prevention and control
Key enterprises that shall
be supervised for soil
pollution prevention and
control
General enterprises (all
shall prevent & control soil
and groundwater pollution
General situationTypes of enterprise *special situation

23. The process that follows
(the expert panels are your interface with the government to align on the problem and its solution)
23
Phase I preliminary environmental
investigation of the site
Phase II preliminary environmental
investigation of the site
Phase II detailed environmental
investigation of the site
Phase III risk assessment for human
health exposure
Remediation Plan
Remediation ExecutionEnvironmental
supervision
Preliminary
environmental site
investigation
Detailed
environmental site
investigation and
risk assessment
Completion acceptance
expert panels

24. 3) Risk Control & Remediation
(summary of the process, led by the land user/polluter till the site is clean)
Responsible person for pollution Responsibility of governmentTypes of enterprise
Investigation of soil
and groundwater
pollution situation
Land right users
Risk assessment of soil
pollution / record
Establishment of pollution site archive
by environment protection apartment
Provincial directory of risk
management & control and
remediation for soil remediation
National directory of risk
management & control and
remediation for soil remediation
Program on
function
limitation
Risk management
and control by
government
Report and screening
Polluter responsible
pursuing
recovery
1. If responsible
person for pollution
can’t be identified or
die out, land right user
is responsible for
taking relevant actions
2. If the land right user
can’t be identified or
die out, government is
responsible for
relevant responsibility ResponsibilityInorder
Take measures of risk
management by risk
assessment
If need to take measures
on risk management
Review and propose
Remediation program
/environmental record /ask
opinions from
*remediation Supervision
Effect assessment of
remediation / record
Follow up risk management &
control measures and
assessment
Follow up management
measures if need
Submit to provincial government
and remove from the directory
Forbidden construction project
except remediation project
Qualified
Unqualified
Note ：
relevant requirements of remediation ： ①prevention of
secondary pollution； ②legal treatment of three wastes ③
transferring program of polluted soil, report in advance and legal
disposal ④information disclosure on remediation site
Key industries that shall be
supervised for soil pollution
prevention and control
Key enterprises that shall be
supervised for soil pollution
prevention and control
General enterprises (all
shall prevent & control soil
and groundwater pollution

25. What’s on the governments agenda in the next 18 months
(understand the government’s planning and prepare for it)
1. Grasp the distribution of contaminated plots of land and the environmental risk
conditions from key industries and enterprises’ land before the end of 2020
2. Focus on non-ferrous metal mining, non-ferrous metal smelting, oil extraction,
petroleum processing, chemical, coking, electroplating, tanning and other industries
and on cadmium, mercury, arsenic, lead, chromium and other heavy metals,
polycyclic aromatic hydrocarbons, petroleum hydrocarbons and organic pollutants
3. Various regions should determine a list of key enterprises to be supervised, the list
will continuously be updated and open to public, listed enterprises must conduct soil
environmental monitoring every year and make the results public
4. Prioritize on Industrial parks, key industry enterprise land and potential
contaminated sites, carry out environmental monitoring of new construction land
5. Before the end of 2017 determine and make public the list of key enterprises to be
supervised for soil and groundwater, keep the list up to date and starting 2018, key
supervision enterprise must conduct environmental quality monitoring for soil and
groundwater every year and make the results public
25

26. • The Company and I
• Overview of the regs
• What to remember & do
• Best practices
• Something to think about
• Questions & Answers
26

27. Environmental due diligence and environmental impact
assessment during the site selection phase
1. Recognize potential pollution sources (historical/current, on-site/
off-site)
2. Sample and analyze baseline soil and groundwater conditions
3. Assess potential liabilities and obligations
4. Evaluate and decide to site selection / budget environmental costs
27
Before Acquisition

28. Environmental protection measures for soil and groundwater
during the enterprise construction and operation period
Source control, zoning control, pollution monitoring,
emergency response
• Prevent and tackle the contamination at the source, take measures to
prevent pollutant leakage into the underground
• Use a rational layout consolidating production facilities and products
with high risk for causing impacts on the underground, install and
maintain reliable anti-seepage facilities
• Establish a system to monitor groundwater quality under the factory
and implement a control plan to prevent spreading of contamination
• Develop emergency response plan to prevent unpredictable and
unexpected soil & groundwater pollution accidents & prevent
spreading
28

29. Environmental protection measures for soil and groundwater
during the enterprise construction and operation period
Source control
1. Design piping systems in a way they remain visible
2. Reduce underground facilities
3. Secondary cofferdam of material storage
4. Automatic alarm and regular check for leakage detection
5. Effective collection of wastewater
6. Selective collection and temporary storage of solid wastes
7. Control of leakage
8. Regular maintenance and leakage prevention
29

30. Environmental protection measures for soil and groundwater
during the enterprise construction and operation period
Zoning control
1. Understand, identify and manage key areas with potentially
invisible pollution sources such as underground tanks, buried waste,
water sinks etc.
2. Understand and manage potential visible impacted areas, such as
aboveground tank areas, production workshop and so on
3. Separate the above from non-polluted areas, e.g. green areas, office
areas, and other areas that don’t produce pollutants
4. Understand the concept of rigid impermeability: impermeable
concrete, waterproof coating
5. Understand the concept of flexible impermeability: HDPE film
6. Understand the concept of natural impermeability: natural clay
30

31. Environmental protection measures for soil and groundwater
during the enterprise construction and operation period
Pollution Monitoring
1. Leakage monitoring
2. Soil sample monitoring
3. Groundwater sample monitoring
• Upstream position
• Potential contaminated area
• Downstream position
31

32. Environmental protection measures for soil and groundwater
during the enterprise construction and operation period
Emergency Response
1. Emergency response
2. Consequence control
3. Cut off the source of the leak
4. Clean up leakage
5. Treatment of soils polluted by leakage
6. Empty waste water collection pool
7. Emergency groundwater inverted
8. Emergency monitoring and remediation / control
32

33. Environmental protection measures for soil and groundwater
during closure or relocation
Preparation of emergency response plan to prevent
environmental impact
1. Before closure and relocation, carefully check risk sources and risk
factors that may trigger sudden environmental events, prepare a
special emergency response plan according to the circumstances
2. Reserve necessary emergency equipment, goods and materials,
involve emergency rescue workers, strengthen the prevention and
control of risk in the process of transportation
3. During the relocation be ready to respond and collect and dispose
of contaminants and report to the local government and
environmental protection department
33

34. Environmental protection measures for soil and groundwater
during closure or relocation
Standardize the demolition of various types of facilities
1. Ensure that pollution control facilities operate properly during the
relocation process and properly dispose pollutants generated
during the process of leaving or moving
2. Recognize and properly dispose pollutants that result from
demolition of production equipment
3. Prepare temporary treatment and disposal programs for any part of
the facilities that can not operate normally during closure or
relocation
4. Clean up and dismantle aboveground buildings, underground
buildings, structures, production facilities, pipelines, pollution
control facilities, toxic and hazardous chemicals, and storage
facilities for petroleum products
34

35. Environmental protection measures for soil and groundwater
during closure or relocation
Safe disposal of remaining solid waste
1. Dispose of toxic and hazardous substances, hazardous wastes,
general industrial solid wastes from the original site or generated
during the relocation process
2. Hazardous waste, should be entrusted to a professional institution
with a hazardous waste business license for safe disposal and
ensure a process is in place for proper transfer of hazardous waste
3. Ensure a process is in place for disposal of general industrial solid
waste in accordance with relevant environmental standards
4. Solid wastes should be assessed according to the relevant
requirements of the "Hazardous Waste Identification Standard”,
wastes that can not directly confirmed as non-hazardous, shall be
considered hazardous
35

36. Environmental due diligence before official withdrawal
1. Look for possible hidden environmental risks
2. Identify soil and groundwater impacts
3. Implement soil groundwater pollution control measures and
remediation as early as possible
4. Remove or reduce risks prior to official withdrawal from the site
36
Before Divestiture

37. • The company and I
• Overview of the regs
• What to remember & do
• Best practices
• Something to think about
• Questions & Answers
37

38. 38
The estimated total clean-up cost for China is 5–6 Trillion RMB
(Ref: Zhiyan Consulting – 2016)

39. 39
• Example: Greenment
Thermal Remediation
Technology partnership
with Belgian company
Haemers
• Good for sensitive areas
(no emissions or noise)
• Good for difficult
situations (deep or under
buildings)
• Has quick results
(2-3 months)
• Has guaranteed results
(no residual
contamination or
rebound)
• Minimizes lost time of
land use income
Remediation Solutions are welcome
(but need to suit the Chinese needs: want quick and guaranteed results)

40. • The company and I
• Overview of the regs
• What to remember & do
• Best practices
• Something to think about
• Questions & Answers
40

41. Questions and Answers that were discussed
(many more questions were discussed, most solutions are case-by-case)
1. What if the pollution on my site is not mine?
2. What if the pollution comes from 2 different polluters ?
3. What if my neighbor site carrying my contamination, is sold?
4. What if the authorities don’t want I do remediation?
5. What if we have a contamination and want to sell or close or move next
year?
6. What if the land is redeveloped for other similar industrial use ?
7. What if I have cleaned my site but am not allowed to clean the plume of my
contamination that has spread to my neighbours? Etc.
41

42. Johnny.browaeys@greenment.net
www.greenment.net
http://www.linkedin.com/in/johnnybrowaeys
Mobile & Wechat: 13761894720
Ask for our Regulatory Updates Newsletter:
Contact me to learn about Greenment’s Soil Investigation and Remediation capabilities

43. Disclaimer
1) The information presented in this document is not legal advice, is not to be acted on as
such. Furthermore, it shall not be quoted, distributed, broadcasted, reproduced,
published, transferred or sold partially or completely without prior written agreement
from Greenment.
2) Use without quoting for self-study purposes is permitted
www.greenment.net 43
9/29/20
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