Environment Protection Act, 2076 and Environment Protection Regulation,

2077 (Nepal)

This document outlines the key aspects of Nepal's Environment Protection Act,
2076, and Environment Protection Regulation, 2077, focusing on environmental
assessments, regulatory frameworks, and compliance requirements.

1. Introduction and Background

Concerns about the environment gained global traction after the 1960s, driven by
urbanization, industrialization, and population growth. The first significant
environmental law was the National Environmental Policy Act in the USA in the
1970s. The core principle of environmental acts is the simultaneous pursuit of
development and environmental protection, ensuring that development maintains or
improves the quality of life for stakeholders.

Nepal initiated environmental assessment through policies in the 1980s. By the

1990s, a formal Environmental Policy Act and environmental regulations were in
place. These were subsequently modified, leading to the enactment of the
Environment Protection Act 2076 and Environment Protection Regulation 2077.
These current legal instruments aim to streamline the approval process for Initial
Environmental Examination (IEE) and Environmental Impact Assessment (EIA).
Proposals related to the central government require approval from the concerned
central-level ministry, while those related to provincial governments or local bodies
are approved at the provincial level.

2. Key Provisions

i. Applicability and Penalties:

 An Environmental Study Report (IEE or EIA, depending on the project) must

be prepared before initiating any proposal.
  Failure to meet the criteria laid down in the Act can result in the Project
Developer being barred from submitting a report for up to five years.

 Implementing a proposal without an approved Summary Environmental Study

Report, or acting contrary to an approved report, can lead to a fine of up to NPR
500,000.

 Implementing a proposal without an approved Initial Environmental Report

(likely IEE), or acting contrary to an approved report, can lead to a fine of up to
NPR 1,000,000.

 Implementing a proposal without an approved Environmental Impact

Assessment (EIA), or acting contrary to an approved report, can lead to a fine of
up to NPR 5,000,000.

ii. Regulating Authorities:

 Government of Nepal

 Environmental Examiner

 Environment Protection Council

 Department of Environment

 Ministry of Forests and Environment

iii. Environmental Assessment Report:

 An Environmental Assessment Report must be submitted two years after the

initiation of the proposal.

 This report details the project's environmental impact and the mitigation efforts
undertaken.

 Types of Environmental Assessment Reports include IEE, EIA, Strategic

Environmental Assessment (SIA), and Health Impact Assessment (HIA).

iv. Supplementary Environmental Impact Assessment:

  A Supplementary EIA is required for proposals that have already undergone an
EIA but are involved in capacity building or modifications.

v. Environmental Fund:

 The Act mandates the formation of an Environmental Fund to protect the

environment, control pollution, preserve national heritage, and maintain air and
water quality.

 Prior permission from the Government of Nepal or the Ministry of Forests and
Environment is needed to make payments into this fund.

 The fund will receive amounts from the Government of Nepal, State
Governments, Local Bodies, Nepali nationals and institutions, and foreign
governments or international institutions.

vi. Carbon Trading:

 The concept, originating from the Kyoto Protocol (which Nepal ratified on
December 14th, 2005), allows countries with high carbon emissions to purchase
emission rights from countries with lower emissions. Each country has a cap on
its allowable carbon release.

vii. Responsibility of the Government:

 Stop any proposal contravening the Act.

 Control and regulate pollution.

 Initiate environmental protection plans.

 Prepare an annual report on environmental changes, including air and water

quality.

viii. Prohibitions under the Act:

 Any pollution that harms the environment and living beings.

 Damaging the quality of mountains and hills in Nepal.

  Export of harmful substances is restricted.

 Production of harmful substances in Nepal requires prior approval from the

concerned Regulating Authority.

ix. Complaint Mechanism:

 Appeals against fines levied by local authorities can be filed with the District
Court within 35 days.

 Appeals against fines levied by Central or State Government authorities can be

filed with the High Court within 35 days.

 Appeals concerning compensation decisions by a Regulating Authority can be

filed with the High Court within 35 days.

x. Punishment under the Act:

 Other offenses under this Act can incur a compensation payment of NPR
300,000. A two-month period is given to rectify the offense; failure to do so
results in triple the compensation amount.

 Concerned individuals or institutions can be blacklisted for one to five years.

 Blacklisted entities are barred from submitting any proposals.

3. Environmental Impact Assessment (EIA) and Initial Environmental

Examination (IEE)

A proponent must conduct an IEE or EIA based on the potential environmental

effects of their project.

Public Consultation for EIA:

 For projects requiring an EIA, the proponent must publish a notice in a national
newspaper.

 This notice invites the Village Development Committee (VDC) or Municipality

of the project area, along with schools, hospitals, health posts, and concerned
 individuals/institutions, to submit written suggestions on potential
environmental impacts within 15 days.

 Anyone can offer opinions and suggestions to the proponent within this 15-day
period and inform the concerned body.

Scope Determination:

 The proponent submits an application to the concerned body for the

determination of the environmental study's scope, including received opinions
and suggestions, and stating the impacts of implementing the proposal.

 The concerned body investigates the documents and forwards the application
with its opinions and suggestions to the Ministry.

 The Ministry then investigates and determines the scope, either as proposed or
in a revised form.

Proposals Requiring IEE for Energy Sector:

1. Construction of transmission lines up to 132KV.

2. Construction of outdoor substations or taping lines from 220KV or higher.

3. Construction of hydropower projects from 1 to 50 MW capacity.

4. Construction and operation of petroleum products plants or gas plants with a

capacity of 1 to 5 MW.

5. Construction of biogas plants larger than 1500 cubic meters.

6. River control works exceeding one kilometer in length.

Proposals Requiring EIA for Energy Sector:

1. Construction of hydropower projects exceeding 50 MW capacity.

2. Construction and operation of coal and nuclear power plants exceeding 1 MW

capacity.
3. Construction and operation of petroleum products plants or gas plants with a
capacity exceeding 5 MW.

Areas Triggering EIA (regardless of project type):

1. Historical, cultural, and archaeological sites.

2. Environmentally weak and wet areas.

3. National parks, wildlife sanctuaries, and conservation areas.

4. Semi-arid, mountainous, and Himalayan regions.

5. Flood-prone and other dangerous areas.

6. Residential, school, and hospital areas.

7. Areas with main sources of public water supply.

4. Matters to be Mentioned in IEE Reports

1. Name and address of the individual or institution preparing the report.

2. Summary of the proposal:

o Objectives of the proposal.

o Impact on land-use.

o Adverse environmental impact, impact on human life, and population

pressure.

o Damage to local goods or objects.

o Other necessary matters.

3. Explicit details of the proposal:

o Type of proposal (e.g., processing, manufacturing, installation, service

delivery, others).

o Nature and type of goods if related to delivery.

o Installed capacity and operating hours (per day/year).

 o Materials to be used (quantity and year).

o Emissions from the proposal (solid, liquid, air, gas, noise, dust, others),
specifying operation time and emission volume.

o Energy to be used (type, sources, volume of consumption per day/year).

o Human resource requirements.

o Resources required (total capital, working capital, land area, buildings,

machinery, others).

o Detailed particulars of the project implementation area:

 Maps.

 Population and settlement conditions in the area and nearby areas.

 Particulars of any sensitive things or objects if the proposal is to be

implemented nearby.

 Current situation.

 Sources of water.

 Waste disposal or processing arrangements.

 Paths for movement in the area.

o Manufacturing processes.

o Details of the technology.

o Other necessary matters.

4. Impact of the proposal on the environment:

o Social, economic, cultural spheres:

 Impact on human health.

 Degradation of cultural values.

 Destruction of forests.
  Changes in social, cultural, and religious norms and values.

 Others.

o Biological Impact:

 Population.

 Flora and fauna.

 Natural habitat and communities.

o Physical Impact:

 Land.

 Atmosphere.

 Water.

 Noise.

 Man-made objects.

 Others.

5. Alternatives for proposal implementation: (Design, project site, processes,

time-schedule, raw materials, others)

6. Alternatives to reduce or control environmental impacts.

7. Matters to be monitored while implementing the proposal.

8. Other necessary matters.

5. Matters to be Mentioned in EIA Reports

1. Name and Address of the individual or institution preparing the report.

2. Summary of the proposal:

o Objectives of the project.

o Impact on land-use.
 o Adverse environmental impact, impact on human life, and population
pressure.

o Damage to be suffered by local goods or objects.

o Other necessary matters.

3. Summary of the Report: Brief particulars of matters mentioned in the EIA

report.

4. Particulars of the proposal:

o Specify technical, geographical, environmental, economic, social,

cultural, and physical aspects.

o Specify objectives, working policies, and work schedule for each phase of
implementation.

5. Basic information relating to the proposal: Geo-physical, cultural, biological,

social, and economic conditions of the assessment area, and any possible
changes before implementation. Mention any unavailable data or subjects not
covered by the study.

6. Identification of environmental impacts: Mention possible positive and

negative impacts on the environment during implementation, estimating the
volume of impact according to time and work schedules.

o Geographical area likely to have positive or negative impacts and the

time-schedule.

o Impact of waste and pollution emitted.

o Direct, indirect, and cumulative environmental impacts.

7. Analysis of alternatives for the proposal:

o Analyze matters concerning design, project site, technology, operation

procedure, time schedule, and raw materials.
 o Compare alternatives based on fixed and working capital, local
suitability, institutional training, supervision needs, environmental cost
and returns, and economic significance.

o Short, medium, and long-term adverse impacts.

o Sources of energy to be used and energy-saving measures.

o Analysis of the consequences of non-implementation.

8. Measures to reduce environmental impact:

o Mention practical preventive measures for activities with negative

environmental impacts.

o If impacts cannot be fully avoided, mention compensation arrangements.

o Analyze the effectiveness and cost of preventive measures compared to

other alternatives.

9. Matters concerning environmental management plans.

10.Review of policy and Legal Provisions: Review related policies, laws, and
rules based on the proposal's nature and scale. Specify if any policy or legal
provision needs reform.

11.Monitoring of the Proposal: Mention the procedure for monitoring

environmental impact, the monitoring agency, time schedule, and
monitoring/evaluation indicators.

12.Format and relevancy of environmental examinations.

13.Reference materials: List publications quoted (Author, Date of Publication,

Title, Year/Volume/Number, Page number).

14.Annexes:

o Maps (land structure, geographical location, land-use, land-capacity,

other study-related maps).
 o Aerial photographs of the site and surrounding areas (as far as possible).

o Questionnaires or lists of subject matters used for field research.

o Matters connected with environmental impact evaluation (charts,

photographs).

o Hydrological and climatic data (serially and chronologically arranged).

o Data on flora and fauna of the site.

o Geological and risk evaluation data (if available).

o Information on air and water quality and noise levels before and after
project operation (if available).

o Matrix or serial graphs relevant to environmental assessment.

o Maps, slides, records, video films, and visual support equipment.

o Cropping techniques, data on livestock farming, soil features, and

quantity of chemical fertilizers used.

o List of materials used while preparing the study report.

o List of invitees/participants in discussions, meetings, and gatherings

among concerned agencies, and brief particulars of monitoring
operations.

o List of names of individuals and institutions in the study team involved in

preparing the EIA report.

o Name, address, and telephone number of individuals and institutions

contacted during the study.

6. Differences between IEE and EIA

Feature IEE EIA

Project Size Carried out for small Carried out for big projects
 projects

Addresses mostly known Also addresses unknown

Impact Scope
impacts impacts

EIA and ToR to be approved

ToR approval by concerned
ToR Approval by MOFE (Ministry of
body
Forests and Environment)

Public notice at the Public hearing to be

Public Consultation
beginning conducted at project site

Approval within 21 days by Approval by MOFE within 90

Approval Time
concerned body days

Environmental auditing
Auditing No Auditing Required
required

Recommendation from Recommendation from

Local Body
concerned VDCs, concerned VDCs,
Recommendation
municipality not required municipality is required
Upon reviewing the content of the "वातावरण संरक्षण ऐन, २०७६" (Environment
Protection Act, 2076) and "वातावरण संरक्षण नियमावली, २०७७" (Environment
Protection Regulation, 2077), and comparing them to the summary previously
generated (based on "Environment Protection.pdf"), several discrepancies and
clarifications have been identified. The Act and Regulations serve as the primary
legal sources.

Here are the key areas where the previous summary requires correction or
refinement:

1. Penalties for Non-Compliance (Applicability):

 Fines for Implementing Proposals without Approved Studies:

o The previous summary stated fines of NPR 500,000 for not having a
"Summary Environmental Study Report," NPR 1,000,000 for an "Initial
Environmental Report (IEE)," and NPR 5,000,000 for an EIA.

o Correction based on Environment Protection Act, 2076, Section

18(1):

 For implementing a proposal without an approved Brief

Environmental Study (संक्षिप्त वातावरणीय अध्ययन):
Fine up to NPR 100,000.

 For implementing a proposal without an approved Initial

Environmental Examination (IEE) (प्रारम्भिक वातावरणीय
परीक्षण): Fine up to NPR 500,000.

 For implementing a proposal without an approved Environmental

Impact Assessment (EIA) (वातावरणीय प्रभाव मूल्यांकन):
Fine up to NPR 1,000,000.

 Fines for Acting Contrary to an Approved Report:

o The previous summary combined these fines with those for non-approval.
 o Correction based on Environment Protection Act, 2076, Section
18(2): If any act is done contrary to the approved report or prescribed
conditions are not followed:

 For Brief Environmental Study: Fine up to NPR 100,000.

 For IEE: Fine up to NPR 200,000.

 For EIA: Fine up to NPR 500,000.

 Barring Period for Report Submission:

o The previous summary mentioned a developer could be barred for "up to

5 (five) years".

o Correction based on Environment Protection Act, 2076, Section

18(4): A proponent punished for implementing a proposal without
approval (under Section 18(1)) may be barred from submitting any other
proposal for a period ranging from one to three years.

2. Regulating Authorities:

 Environment Protection Council:

o The previous summary listed "Environment Protection Council".

o Clarification based on Environment Protection Act, 2076, Chapter 2

(Sections 10-12): The Act establishes an "Environment Protection and
Climate Change Management National Council (वातावरण संरक्षण
तथा जलवायु परिवर्तन व्यवस्थापन राष्ट्रिय परिषद्)".

3. Environmental Assessment Report (Environmental Audit):

 Submission Timeline:

o The previous summary stated it's submitted "after two years of initiation
of the Proposal".
 o Clarification based on Environment Protection Act, 2076, Section
7(1) and Environment Protection Regulation, 2077, Rule 17: The first
environmental audit report must be submitted within two years of the
commencement of commercial operation or service of the proposal (if
not otherwise specified in the approved EIA report), and then regularly as
prescribed.

4. Supplementary Environmental Impact Assessment:

 Conditions:

o The previous summary mentioned it's required for "capacity building and
modification".

o Clarification based on Environment Protection Act, 2076, Section 5

and Regulation, 2077, Rule 11: Supplementary EIA is required for more
specific conditions, including if the nature of the proposal changes,
capacity increases by more than a prescribed threshold (e.g., 25% for
electricity generation), project area changes affecting the environment, or
new technology increases adverse impacts.

5. Environmental Fund:

 Name and Permission for Payments:

o The previous summary mentioned an "Environmental Fund" and that

"Prior, permission from the Government of Nepal or the Ministry of
Forests and Environment is required to make any payment in the
environmental fund".

o Clarification based on Environment Protection Act, 2076, Section 28

and Regulation, 2077, Rule 42: The fund is named the "Environment
Protection and Climate Change Fund (वातावरण संरक्षण तथा
जलवायु परिवर्तन कोष)". The statement about requiring prior
permission to make payments into the fund appears to be a
 misinterpretation. The Act and Regulations list sources that contribute to
the fund. Decisions on spending or disbursing from the fund are typically
what require approval by a managing committee (Regulation, Rule 45).

6. Punishment under the Act (Other Offences):

 Fine Amount:

o The previous summary stated: "For any other offences pertaining to this
Act Rs. 300,000... compensation will have to be paid Two months time
period will be given to rectify the offence or else compensation of triple
the amount will have to be paid.".

o Correction based on Environment Protection Act, 2076, Section 19:

For offenses under the Act or its Rules where no separate punishment is
specified, the fine shall be up to NPR 100,000. The "NPR 300,000" and
"triple the amount" for rectification failure is not found in this section for
general offenses.

 Blacklisting/Barring Period:

o The previous summary stated blacklisting for "one year to five years".

o Correction based on Environment Protection Act, 2076, Section

18(4): As mentioned earlier, for offenses of implementing a proposal
without approval, the proponent may be barred from submitting other
proposals for one to three years.

7. Proposals Requiring EIA for Energy Sector:

 Coal Power Plants:

o The previous summary stated EIA is required for "Construction and

operation of Coal and Nuclear power plant of more than 1 MW capacity".

o Correction based on Environment Protection Regulation, 2077,

Schedule 2 (EIA requirements):
  Nuclear power plants (आणविक शक्ति उत्पादन केन्द्र)
require EIA irrespective of capacity (Item 6.1.2).

 For other sources including coal, electricity generation requires

EIA if the capacity is 50 MW or more (Item 6.1.1). Proposals for 1
MW to less than 50 MW require IEE (Schedule 1, Item 5.1.3), and
50 kW to less than 1 MW require a Brief Environmental Study
(Schedule 3, Item 3.1.1). The "more than 1 MW" threshold for EIA
for coal plants in the previous summary is incorrect.

8. Areas Triggering EIA:

 The list in the previous summary included "Semi-arid, mountainous and

Himalayan regions" and "Residential, school and hospital areas" as automatic
triggers for EIA.

 Clarification based on Environment Protection Regulation, 2077, Rule 3(3)

and Schedule 4 (Environmentally Sensitive Areas): While these areas are
environmentally important, Schedule 4 (which lists areas where projects might
automatically require EIA even if below general thresholds) is more specific.
For instance, it lists areas with steep slopes (>45 degrees) or proximity to
drinking water sources. "Semi-arid, mountainous and Himalayan regions" and
"Residential, school and hospital areas" are not listed as broad, universal
automatic EIA triggers for all project types in Schedule 4, though impacts on
such areas are critical considerations during any environmental assessment.

9. Differences between IEE and EIA:

The table in the previous summary contained several inaccuracies:

 Public Consultation:

o Previous: IEE (Public notice at beginning) vs. EIA (Public hearing at

project site).
 o Correction (EPR 2077, Rule 5 for IEE; Rule 7 & 8 for EIA): Public
hearing can also be required for IEE proposals that could cause
significant adverse environmental impact, displace households, or are of
public concern, not just for EIA.

 Approval Time:

o Previous: IEE (21 days by concerned body) vs. EIA (90 days by MOFE).

o Correction (EPR 2077, Rule 4(6) for IEE; Rule 9(1) for EIA):

 IEE approval: Within 30 days (or 45 days if external opinions are

sought).

 EIA approval: Within 60 days (or 90 days if external opinions are

sought).

 Auditing:

o Previous: IEE (No Auditing Required) vs. EIA (Environmental auditing

required).

o Correction (Environment Protection Act, 2076, Section 7; EPR 2077,

Rule 17): Environmental auditing is required for proponents of proposals
that have implemented both IEE or EIA. The claim that IEE requires no
auditing is incorrect.

 Local Body Recommendation:

o Previous: IEE (Recommendation from concerned VDCs, municipality not

required) vs. EIA (Required).

o Correction (EPR 2077, Rule 4(3) for IEE): For IEE, the proponent is
required to submit the IEE report to the concerned Municipality or
Village Council for recommendation if the proposal falls under their
jurisdiction.
The content of reports (IEE/EIA) listed in the previous summary generally aligns
with the types of information required, which are formally detailed in Schedules 6
(IEE Report) and 8 (EIA Report) of the Environment Protection Regulation, 2077.

This review highlights the importance of referring to primary legal documents for
accurate and up-to-date information.