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    ENVIRONMENTAL REGULATIONS

    Introduction

    The national environmental protection system was created and is based upon Lithuania's sovereignty over its natural resources, focussing on the preservation of the environment. Article 53 of the Constitution of the Republic of Lithuania establishes that "the State and each individual must protect the environment from harmful influences". Article 54 of the Constitution establishes that "the State shall concern itself with the protection of the natural environment, its fauna and flora, separate objects of nature and particularly valuable districts, and shall supervise its moderate utilisation and augmentation. The exhaustion of land and entrails of the earth, the pollution of water and air, the production of radioactive impact, as well as the impoverishment of fauna and flora, shall be prohibited by law."


    Applicable Legislation

    1. The 21 March 1991 Law No. I-1163 of the Republic of Lithuania "On Taxes on State Natural Resources";
    2. The 21 January 1992 Law No. I-2223 of the Republic of Lithuania "On Environmental Protection";
    3. The 7 October 1992 Law No. I-2944 of the Republic of Lithuania "On Taxes on Oil and Gas Resources";
    4. The 22 November 1994 Law No I-671 of the Republic of Lithuania "On Forests";
    5. The 5 July 1995 Law No. VIII-573 of the Republic of Lithuania "On Underground";
    6. The 16 August 1996 Law No. I-1495 of the Republic of Lithuania "On Environmental Impact Assessment of Planned Economic Activities";
    7. The 16 June 1998 Law No. VIII-787 of the Republic of Lithuania "On Handling of Waste";
    8. The 13 May 1999 Law No. VIII-1183 of the Republic of Lithuania "On Taxes for Pollution of the Environment";
    9. The 4 November 1999 Law No. VIII-1392 of the Republic of Lithuania "On Protection of Air";
    10. The 25 September 2001 Law No. IX-517 of the Republic of Lithuania "On Management of Packaging and Packaging Waste".

    Regulatory Framework

    The principal institutions involved in regulation and administration of environmental matters are as follows:

    1. The Ministry of Environment;
    2. The Ministry of Agriculture;
    3. County Governors; and
    4. Municipalities.

    Regulation of Economic Activities

    Assessment of Environmental Impact

    According to Article 15 of the Law on Environmental Protection, legal and natural persons who plan to engage in economic activities must, at their own expense, prepare and submit to appropriate institutions the documents concerning possible impact of their economic activities on the environment. The environmental impact assessment is carried out in accordance with the Law on Environmental Impact Assessment of Planned Economic Activities.

    Project Approval and Construction

    Article 16 of the Law on Environmental Protection established that legal and natural persons designing the construction, reconstruction or expansion of any objects which are likely to have an effect on the environment must provide in the project documentation the measures for rational use of natural resources and for avoiding negative effects on the environment. Such project documentation must be co-ordinated with relevant municipal institutions and the Ministry of Environment. No construction work may be performed without co-ordinated approval by appropriate regulatory institutions.

    Permit to Use Natural Resources

    Article 19 of the Law on Environmental Protection requires that legal and natural persons must obtain a permit for the use of natural resources and discharge of pollutants into the environment prior to starting their commercial operations. Legal and natural persons are required to conduct their commercial operations pursuant to the conditions established in the permit for the use of natural resources and discharge of pollutants into the environment, and may not exceed established norms and standards of environmental protection.

    When conducting commercial operations that are potentially hazardous to the environment, persons must, at their own expense, monitor the degree of environmental pollution and its impact on the environment, ensure public availability of this information and capacitate pollution control. In addition, persons conducting commercial operations must keep records of the use of natural resources and discharge of pollutants in the manner established by laws and other legal acts. Finally, persons conducting commercial operations which do not require a permit for the use of natural resources and discharge of pollutants in to the environment must follow the applicable environmental protection norms and standards.


    Land Use

    The principal particular purpose of land utilisation is established in the territorial land use-planning documentation. Land users who wish to use the land for a purpose other than that established must receive a permission from the governor of the county in which the land plot is located. The person seeking the change in status must compensate losses incurred by the State because of the change of the status of agricultural land, except as otherwise established under laws and other legal acts.


    Investigation and Exploitation of Underground Areas and Resources

    Underground areas are owned exclusively by the State. Exploitation, investigations and utilisation of underground resources may be performed on the basis of the permits issued pursuant to the procedures established by the Law on Underground and other legal acts. Such permits can be granted to legal and natural persons by the Government of the Republic of Lithuania or the public institution authorised by the Government.

    Point of Interest
    Legal and natural persons must provide the Geological Survey of Lithuania with the data on the underground that was acquired in the course of investigations of the underground or during the utilisation of underground resources, except for the data on indirect investigations that have been carried out without using State funds.



    Protection of Forests

    Currently, most Lithuanian forestland belongs to the State. Forests are classified into four groups to distinguish their cultivation purposes and regime as well as their functionality.

    Laws regulate the use of forestlands for timber production as well as other purposes such as gathering of mushrooms and herbs. Timber production is regulated to ensure a constant supply and maintain a proper balance between new growth and harvested timber. Annual timber harvesting standards are established for each forest by its manager and/or owner according to the methodology approved by the Ministry of Environment.

    Point of Interest
    Individuals may unreservedly enter and utilise natural resources (such as gathering of mushrooms, medicinal herbs and the like) of both State and private forests (except certain types of forests provided in laws (e.g. reserves)), subject to the requirements established in relevant legal acts.



    Use of Water Resources

    Subject to the criteria established for issuance of permits for the use of natural resources, a permit for the use of water resources must be obtained by persons wishing to extract water from surface or ground water bodies or discharge household, industrial waste-water and waste-water from other types of economic activities, or to use water bodies for various other needs (navigation, hydro-technological facilities, fishery etc.).

    Permits for the use of water resources are granted for a period of up to 5 years by a respective Regional Environmental Protection Department at the Ministry of Environment.

    A permit for the use of water resources includes the following parts:

    1. water taking, consumption, supply;
    2. waste discharge;
    3. monitoring of environment.
    Waste-water may be discharged into the natural environment only in instances when it does not exceed the limits for pollution as approved by the Ministry of Environment.

    It is prohibited to pollute water bodies or ice cover with household, industrial or other waste, as well as with oil products, toxic chemicals, fertilisers, radioactive and other harmful substances. The discharge into ground water, underground cavities or karstic potholes is also prohibited. Ice may be used only if this does not reduce the stock of water resources in the water body or deteriorate its quality.


    Protection of Air

    The Law on Protection of Air addresses two types of pollution of air: stationary and mobile sources of pollution.

    The users of stationary pollution sources are obliged to obtain a permission according to the conditions and procedures established by the Ministry of Environment. When it is intended to construct objects that may be considered as stationary pollution sources, legal and natural persons are obliged to establish measures minimising the pollution of air.

    Natural and legal persons (producers, importers, traders) are obliged to use the fuel that satisfies the quality and composition requirements established by Ministries of Environment, Communications and Economy.

    The Ministry of Environment establishes the quantities for emission of contaminants from a stationary pollution source, approves the rules on evaluation of quality of air and exercises a continuous control over the agglomerations where the pollution limits are or may be exceeded.

    Lithuania has ratified a number of international agreements concerning protection of the Earth's ozone layer and elimination of the "greenhouse effect".


    Waste Management

    Article 4 of the Law on Handling of Waste provides that the producer of waste or the entity or person storing waste must properly handle the waste or transfer it to a waste manager. In both cases, the cost of waste management is the responsibility of the producer or custodian of the waste.

    The Law on Waste Handling sets forth certain additional requirements in respect of enterprises holding permissions to utilise natural resources. In particular, Articles 6 and 15 establish special procedures for termination of activities of such enterprises; activities may only be finalised in accordance with a plan as approved by the Ministry of Economy.

    Article 32 of the Law on Waste Handling provides for certain economic measures relating to waste management. In order to encourage waste prevention and accumulate funds to be used for waste management, the law mentions taxes on materials, products and packaging that contribute to the creation of waste. Such taxes may be introduced under separate laws of the Republic of Lithuania.

    Point of Interest
    From 1 January 2003 the Law on Management of Packaging and Packaging Waste will come into force. Pursuant to this law, producers and importers that will not meet relevant criteria relating to collection, recycling and reuse of packaging and packaging waste will be obliged to pay a tax for pollution of the environment with product waste.



    Environmental Taxes

    Taxes on State-Owned Natural Resources

    According to the Law on Taxes on State Natural Resources, natural and legal persons that utilise the State's natural resources are taxed for their use. The rates of taxation for particular types of natural resources are established by the Government of the Republic of Lithuania (taxation on oil and gas is set separately, as described below).

    Taxes on Oil and Gas Resources

    The Law on Taxes on Oil and Gas Resources provides for the taxation of natural and legal persons that are given the right to exploit oil and gas resources in the territory of Lithuania or in the economic zone of the Republic of Lithuania in the Baltic Sea. The basic tax rate is 20% of the price of oil and gas, which may not be less than the price determined by the Government of the Republic of Lithuania.

    Taxes for Pollution of Environment

    The Law on Tax for Pollution of Environment provides that tax rates are fixed every 5 years for groups of pollutants based on their hazardous impact on the environment. The listing of pollutants and their grouping is a responsibility of the Government of the Republic of Lithuania and its authorised institutions.

    The Law on Tax for Pollution of Environment also abolishes the application of increased and reduced tax rates for environmental pollution. In cases of successful application of measures to reduce pollutant emissions more than 10% with respect to the maximum allowed pollution standards, the law provides for a tax - holiday from the particular pollutant's tax for a period of up to 3 years. If the established pollution standard is exceeded, the responsible person has to pay a fine established by the law.

    Point of Interest
    The Law on Tax for Pollution of Environment provides for annually increasing tax rates.



    Environmental Liability

    Sanctions for violation of environmental protection requirements in Lithuania are provided for in civil, administrative and criminal law.

    If natural resources are utilised without a permission, an entity must pay applicable taxes based on the amount of resources used plus a fine calculated under the established procedure.

    The Code of Violations of Administrative Law of the Republic of Lithuania defines various offences relating to environmental pollution and sets administrative penalties. The violations, including unauthorised excessive pollution or emissions, are penalised by fines up to LTL 10,000 (approximately EUR 2,896) depending on the type of pollutant and the extent of contamination.

    The Criminal Code of the Republic of Lithuania provides for criminal sanctions for the pollution of water, land and air which vary from monetary penalties of up to LTL 6,250,000 Litas (approximately EUR 1,810,125) to imprisonment for up to 5 years.

    Point of Interest
    A large number of officers from various institutions are given the authority to impose sanctions for the violation of environmental protection laws.

     

     
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