Unofficial translation

LAW OF MONGOLIA

May 17, 2012                                                      Ulaanbaatar

ON ENVIRONMENTAL IMPACT ASSESSMENT

/Revised version/

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of the law 

1.1.The purpose of this law is to regulate relations on implementing the sub-paragraph 2 of the Article Sixteen of the Constitution of Mongolia, protecting the environment, preventing from the loss of environmental balance caused by the human activities, exploiting the mineral resources with the minimal adverse impact on the environment, assessing environmental impact of the policies to be governed, and development program, plan, and any project to be implemented at the regional and sectoral level, and making conclusions and decisions whether to implement them, and arranging coordination between the stakeholders.

Article 2.Legislation on environmental impact assessment

2.1.The legislation on environmental impact assessment shall consist of the Constitution of Mongolia, Law on Environmental Protection, this law and other legislative acts enacted in conformity therewith.

2.2.If the provisions of the international treaties to which Mongolia is a party provide otherwise than this law, the provisions of the international treaties shall prevail. 

Article 3.Definitions of the law 

3.1.The definitions used in this law shall be understood as follows:

3.1.1."Project" shall mean the factories, services, mining, buildings and facilities  that are to be implemented newly or already in operation, and any activities that are designed to renovate and expand them;

3.1.2."Project implementer' shall mean a legal entity and a citizen who is responsible for the project; 

3.1.3."Environmental strategic assessment" shall mean the determination of potential risk, adverse impact and consequences that can be caused to environment, society and human health due to implementation of policies to be adhered, development program and plan to be implemented in state, regional and sectoral level, by interrelating with trends of climate change, disaster, dangerous phenomenon, accident and danger during their development process;

/This subparagraph was amended by the law as of February 2, 2017/

3.1.4."Assessment of environmental status"' shall mean the determination of the natural condition and environmental characteristics of the local area, that will focus on further project, program, plan and policy development by researching and identifying environmental behavior of territory, where project will be implemented, during the development of feasibility planning study, drawings and designs of any project, development program and plan to be implemented in state, regional and sectoral level;

3.1.5."Cumulative impact assessment" shall mean the determination of the joint and repeated adverse impacts on the public health caused by the projects to being implemented by citizen, business entity and organization within certain areas and basins, and defining the methods and actions that eliminate and mitigate such impacts;

3.1.6."Environmental impact assessment" shall mean the determination of potential adverse impacts and consequences on the environment in advance during the certain project is being implemented by citizen, business entity and organization, and defining the methods and actions that eliminate and mitigate such impacts; 

3.1.7."Assessment expert" shall mean a person who is authorized to review assessment and assessment report as defined in Article 3.1.6 of this law, and issues expert's opinion accordingly; 

3.1.8."Assessment review" shall mean the activity to issue expert's opinion on whether the environmental impact assessment specified in Article 3.1.6 of this law has been conducted in line with respective legislation, and whether report and conclusion are reasonable and correct;

3.1.9."Monitoring and verification" shall mean the activity of preparing the expert's opinion on whether the approved environmental impact assessment report and conclusion are accurate and correct; 

3.1.10."Risk assessment" shall mean the activity of determining the potential impacts as well as disaster and hazardous effects of chemical, physical and biological factors upon human, animal, plant and environment in advance; 

/This subparagraph was amended by the law as of February 2, 2017/

3.1.11."Correspondent protection of biological diversity" shall mean the activity of rehabilitating the biological diversity, at different location, that has lost its natural character, typology and living environment by affecting due to project operation.

CHAPTER TWO

STRUCTURE, SYSTEM AND COORDINATION OF THE ENVIRONMENTAL IMPACT ASSESSMENT

Article 4.Environmental impact assessment

4.1.The following evaluation shall be included in environmental impact assessment: 

4.1.1.Environmental strategic assessment (hereinafter referred to as the "strategic assessment");

4.1.2.Assessment of environmental status (hereinafter referred to as the "assessment of status"); 

4.1.3.Environmental impact assessment (hereinafter referred to as the "impact assessment");

4.1.4.Assessment of cumulative impact.

4.2.A professional council of environmental impact assessment (hereinafter referred to as the "Professional council") in charge of coordinating environmental impact assessment matters, and reviewing and issuing opinions on the results and reports of the assessments specified in Articles 4.1.1, 4.1.4 and 7.1.2 of this law shall operate under the state central administrative body in charge environmental affairs. 

4.3.The Professional council shall be formed by the decision of the state central administrative body in charge environmental affairs.

Article 5.Environmental strategic assessment 

5.1.The ministry of given sector that initiates and develops policy, program and plan shall have strategic assessment conducted during development of the given documents, and submit the assessment report along with the draft of policy document to the state central administrative body in charge of environmental affairs prior to getting it reviewed at the cabinet meeting.

5.2.The strategic assessment shall be conducted by the professional organization authorized by the state central administrative body in charge of environmental affairs, with the collaboration of the institutional and research organization of the given industry, independent expert and specialists, and prepare the report.

5.3.The Government shall approve detailed procedures on conducting strategic and cumulative impact assessments. 

5.4.The Professional council shall review the strategic assessment report and the Cabinet Member in charge of environmental affairs shall present the opinion to the Government.

5.5.The project implementing sectoral ministry and the state central administrative body in charge of environmental affairs shall disclose the information about the strategic assessment opinion in public, post it on their website and ensure the printed copies are available for public review. 

Article 6.Status and cumulative impact assessment 

6.1.The project implementer is required to conduct the assessment according to the Article 3.1.4 of this law and have potential impacts estimated. 

6.2.The status assessment shall be conducted by the project implementer with involvement of the authorized professional organization and of research and analysis organization,  and if required it shall approach the state central administrative body in charge of environmental affairs for direction. 

6.3.The state central administrative body in charge of environmental affairs shall conduct the assessment specified in the Article 3.1.5 of this law on the project that is being implemented by a citizen, business entity and organization at certain areas and basins with the involvement of the authorized professional organization.

6.4.When necessary, the Cabinet Member in charge of environmental affairs may appoint a professional team to conduct the assessment specified in the Article 6.3 of this law.

6.5.The project implementer shall be responsible for the required cost of conducting cumulative impact assessment depending on level of magnitude. 

6.6.The authorized professional organization shall deliver the developed report on the assessment of environmental status and cumulative impact to the Professional council in charge of assessment which is under the state central administrative body in charge of environmental affairs for review. 

Article 7.Impact assessment

7.1.The impact assessment shall consist of the following: 

7.1.1.General assessment of the environmental impact; and 

7.1.2.Detailed assessment of the environmental impact.

7.2.General assessment of the environmental impact is conducted prior to exploitation of natural resources, exploration and exploitation of oil and minerals, obtaining possession and exploitation permit of land for business purposes, and implementation of project. 

7.3.The project implementer is required to have the general assessment of the environmental impact conducted at the state central administrative body in charge of environmental affairs or environmental department in accordance with category specified in Annex of this law by completing the feasibility study, drawing and design approved by the respective competent organizations, definition on the current status of environment of the areas where the project to be implemented, the proposal from the Governor of the given soum or district, and other related documents.

7.4.An assessment expert shall undertake the general assessment of the environmental impact upon planned to be built or already existing factories, services, building and facilities, and their renovation and expansion projects, and projects to exploit natural resources within 14 working days, and draw a conclusion as follows. 

7.4.1.To decline or return the project, where its techniques, technology and operation can be harmful to the environment, not reflected within land utilization plan, and not in compliance with the strategic assessment conclusion and applicable legislation; 

7.4.2.To consider the project can be implemented without conducting the detailed environmental impact assessment on the certain conditions and term; 

7.4.3.To consider that it is required to conduct the detailed environmental impact assessment. 

7.5.When necessary, the period that is determined in Article 7.4 of this law can be extended for another 14 days once, by the decision of the principal expert as defined in Article 7.6 of this law. 

7.6.The principal expert, who is responsible for organizing the assessment expert and their activities, shall be appointed by the decision of the state central administrative body in charge of environmental affairs by taking account of their professional capability and work experience. 

7.7.The Government shall approve procedures and methodology of impact assessment and it shall include the regulations in regards with related matters of the environmental impact assessment, analysis and review of the assessment, and activities of the professional council, and the socio-economic and health impact assessments. 

Article 8.Detailed environmental impacts assessment 

8.1.The purpose, direction, scope and timeframe of the detailed impact assessment shall be clearly indicated in the conclusion that is issued according to Article 7.4.3 of this law. 

8.2.The detailed environmental impact assessment shall be conducted by local business entity that is authorized according to the Article 12 of this law. 

8.3.The authorized business entity specified in Article 8.2 of this law shall prepare the report with result of the detailed environmental impact assessment and develop the environmental management plan. 

8.4.The following issues shall be included within the detailed environmental impact assessments: 

8.4.1.Typology of the environment of the project implementing area; 

8.4.2.Calculation and research findings of the potential and key adverse impacts, their intensity, spread and consequences; 

8.4.3.Recommendation of the methodology to eliminate and minimize the potential and key adverse impact of the project; 

8.4.4.Recommendation on the use of possible method and technology and utilization of environmentally friendly techniques and technology in order to minimize adverse environmental impact caused by the project operation; 

8.4.5.Impact risk assessment upon human health and environment caused by the project operation if it is stated to conduct the risk assessment within the general environmental impact assessment; 

8.4.6.Closure activity direction, rehabilitation purpose, scope, criteria and equivalent protective measures for oil, mining and radioactive minerals exploitation projects; 

8.4.7.Purpose, scope and criteria of the environmental management plan; 

8.4.8.Proposal and meeting minutes of the local administration where the project is going to be implemented , and citizens public meeting of the area to be affected by the project; 

8.4.9.Historical and cultural findings on the project area, and other issues related to features of the project. 

8.5.It is required to reflect the official feedback provided by project implementer in the detailed environmental impact assessment report. 

8.6.The project implementer shall be responsible for cost of conducting the detailed environmental impact assessment. 

8.7.The business entity that has conducted the detailed environmental impact assessment shall keep the original copy of the primary material of the field survey and the results of the assessment expert's research. It shall prepare four copies of the detailed environmental impact assessment report and the state central administrative body in charge of environmental affairs, project implementer and the Governor's offices of the local area where the project is going to be implemented and itself shall retain each copy and those copies shall have the same legal force. 

8.8.The environmental officer of the local area, the state environmental inspector, Governors of all level, and the state administrative authority in charge of geology and mining affairs shall monitor whether the project implementing citizen or the business entity has conducted the environmental impact assessment.

Article 9.Environmental management plan 

9.1.The entity that has performed the detailed environmental impact assessment shall develop environmental management plan for the purposes of protection, appropriate utilization and rehabilitation of environment of the project area, fulfilment of strategic assessment recommendation, minimization, elimination and prevention of adverse impacts identified by the detailed environmental impact, and monitoring and finding of potential adverse impact that can be formed in the project area.

9.2.The environmental management plan is the inseparable part of the detailed environmental impact assessment.

9.3.The organization that conducted the general assessment shall approve the environmental management plan of the project and authorize the implementation of the project. 

9.4.The state central administrative body in charge of environmental affairs shall approve the procedures and methods for developing the environmental management plan and rehabilitation activity, and an authorized organization approve the rehabilitation standards according to the applicable legislations, respectively.

9.5.The environmental management plan shall consist of the environmental protection plan and environmental monitoring program. 

9.6.The environmental protection plan shall include measures of mitigating and eliminating the adverse impacts identified by the detailed environmental impact assessment, equivalent protective measures, required time and funding to implement them.

9.7.The environmental monitoring and investigation program shall include particularly the monitoring and analysis of the changes shown to the environmental status due to project operation, reporting of results, methods of implementation, required funding, cost and timeframe. 

9.8.The organization that has conducted the general environmental impact assessment shall receive the annual implementation report of the environmental management plan of the project implementer within December of each year, and approve the following year plan and required amount of resources and costs for its implementation. 

9.9.The project implementer other than those specified in Article 9.10 of this law shall deposit monetary assets equal to not less than 50 percent of the required costs for the annual implementation of the environmental management plan in the special account of the environmental protection and rehabilitation of such soum and district governor as a guarantee to comply with the environmental protection duty, and report the fulfilment of the plan annually accordingly. 

9.10.The project implementer of mineral exploitation, concentrating and processing plant and chemical plant shall deposit the monetary assets equal to not less than 50 percent of the required costs for the annual implementation of the environmental management plan in the special account of the environmental rehabilitation of the state central administrative body in charge of environmental affairs as a guarantee to comply with the environment protection duty every year, until expiry of its exploitation operation.

9.11.The funds specified in Article 9.10 of this law shall be reimbursed according to particular schedule during mine closure stage based on requirements set by impact assessment of project implementer, realization of annual environmental management plan of mine operation and realization process of closure management plan specified in Article 14.1.3 of this law.

9.12.The environmental officer of the local area, the state environmental inspector, Governors of all level, and the state central administrative body and environmental non-governmental organization shall monitor the implementation of the environmental management plan and the realization of closure management plan. 

9.13.If necessary, an independent audit shall be conducted upon realization of environmental management plan, rehabilitation completion and the monitoring specified in Article 9.12 of this law by decision of the organization who conducted the general environmental impact assessment for audit opinion and the required cost for this work shall be responsible by the project implementer.

9.14.The organization who conducted the general environmental impact assessment shall resolve whether the project implementer be compensated the deposit placed as a guarantee as per the procedure specified in the Article 9.15 of this law, based on the performance report of the environmental management plan and results of the monitoring set forth in Articles 9.12 and 9.13 of this law. 

9.15.The state central administrative body in charge of environmental affairs shall approve the procedures on monitoring transactions of the specific account of environmental protection and rehabilitation specified in Articles 9.9 and 9.10 of this law. 

Article 10. Analysis of the detailed environmental impact assessment 

10.1.The authorized business entity who conducted the detailed environmental impact assessment shall deliver the assessment report along with the enclosed documents to the organization who conducted the general environmental impact assessment, within the timeframe set out in the general assessment. 

10.2.The expert who has received the detailed environmental impact assessment report shall issue an opinion on the assessment within 18 working days after the receipt, and when necessary, the principal expert of the state central administrative body in charge of environmental affairs shall appoint the expertise team to conduct the assessment review on the report. 

10.3.The principal expert of the state central administrative body in charge of environmental affairs can extend the period specified in Article 10.2 of this law for up to 18 days for one time. 

10.4.The state central administrative body in charge of environmental affairs shall decide whether the project can be implemented based on the detailed impact assessment report, the opinions issued by the expert and the professional council, who supplied assessment analysis, and the proposal specified in the Article 18.4 of this law.

10.5.The project implementer and the professional organization who conducted the assessment shall jointly organize the activities to present the detailed environmental impact assessment report to the local community, which will be affected by the project operation. 

10.6.The relations regarding to the creation of the database for the environmental impact assessment shall be organized as per Chapter Seven of the Law on Environmental protection. 

Article 11.Monitoring and verification

11.1.If human health and environment is being damaged and has been damaged due to operation of business entity or organization that is implementing the project on basis of completed detailed environmental impact assessment, then the examination and verification shall be conducted to verify if the assessment was adequately completed. 

11.2.The principal expert of the state central administrative body in charge of environmental affairs shall set the timeline for preparation of the examination and verification conclusion and each time appoint the working group that consists of the professional experts of related field. 

11.3.The professional organization who conducted the assessment shall be responsible for the cost required to conducting the examination and verification and the cost shall be reimbursed by the party in breach based on result of the examination and verification. 

11.4.The business entity who conducted the assessment and the project implementer are required to collect and submit the required documents without undue delay to the state central administrative body in charge of environmental affairs. 

11.5.If it was found that the detailed environmental impact assessment was done inadequately under the examination and verification, then it is required to conduct the re-assessment up to the required standard and during this period, the state central administrative body in charge of environmental affairs shall suspend the license for conducting the detailed environmental impact assessment for other projects. 

11.6.If it is determined that the additional work needs to be done under the examination and verification, then the related cost shall be borne by the professional organization who conducted the detailed assessment at first.

Article 12.Issuing and terminating the license for conducting detailed environmental impact assessment

12.1.The state central administrative body in charge of environmental affairs shall issue the license, specified in sub-paragraph 1.7 of the Article 8.1 of the Law on Permits, to a Mongolian business entity that meets the requirement defined in Article 7.5 of the Law on Environmental Protection. 

/The part "specified in Article 15.6.6 of Law on Licensing of Business Activities" in this paragraph was amended as "specified in sub-paragraph 1.7 of Article 8.1 of Law on Permits" by the law as of June 17, 2022, and shall be entry into force from January 1, 2023/

12.2.The following documents shall be enclosed to the application for a license to engage in conducting detailed environmental impact assessment: 

12.2.1.Introduction of the business entity's activity; 

12.2.2.Documents illustrating the database, facilities, human resources and capacity required to engage in assessment work. 

12.3.The Professional council shall review the capacity of the applicant business entity who wants to engage in detailed environmental impact assessment within 5 working days and issue an opinion. 

/The part "within 28 working days" in this paragraph was amended as "within 5 working days" by the law as of June 17, 2022, and shall be entry into force from January 1, 2023/

12.4.The business entity that is authorized to conduct detailed environmental impact assessment shall aim its activity towards the detailed environmental impact assessment.

12.5.The state central administrative body in charge of environmental affairs shall authorize the business entity to engage in the detailed evaluation of the environmental impact for 3 years based on the decision issued by the Professional council. 

12.6.The business entity shall submit the application for a license renewal along with the performance report to the state central administrative body in charge of environmental affairs 2 months prior to expiry date of the license authorizing to conduct detailed environmental impact assessment. 

12.7.The Professional council shall review the application specified in Article 12.6 of this law, and report and other information related to the environmental impact assessment, and issue a conclusion whether to extend the license to engage in detailed environmental impact assessment. 

12.8.The state central administrative body in charge of environmental affairs shall renew the period of the license to conduct detailed environmental impact assessment for another 3 years based on the conclusion issued by Professional Council.

CHAPTER THREE

DUTIES AND RIGHTS OF THE PARTIES INVOLVEDIN THE ENVIRONMENTAL IMPACT ASSESSMENT

Article 13. Rights of the project and program implementer 

13.1.The project and program implementer shall exercise the following rights:

13.1.1.To make the request for conducting strategic and impact assessment to the authorized organization and business entity; 

13.1.2.To select the business entity for conducting status, strategic and detailed impact assessment; 

13.1.3.To demand the business entity, who will conduct the strategic and impact assessment, to keep the confidentiality of some necessary information related to the technique, technology and business of such policy, program, plan, and project.

Article 14.Duties of the project and program implementer 

14.1.The organization that developed the program and plan included within strategic assessment and project implementer shall have the following duties: 

14.1.1.To provide the competent authority and officials with the documents relevant to strategic assessment to be conducted on the policy, program and plan, as well as to project impact assessment; 

14.1.2.To report and present the performance of the environmental management plan to local community, local governor's office, the parties affected by project and respective state central administrative body in a timely manner;

14.1.3.The oil and mining projects shall submit rehabilitation and closure management plans to the state central administrative body in charge of environmental affairs by developing them at least 3 years before such operation starts and closes upon collection of the proposals from the state central administrative body in charge of the given sectoral matters. 

Article 15.Rights of the business entity who has license to engage in conducting detailed environmental impact assessment

15.1.The business entity that is authorized to conduct detailed environmental impact assessment shall exercise the following rights:

15.1.1.To receive the documents required for conducting detailed environmental impact assessment from the project implementer; 

15.1.2.To access and collect the sample without any disturbance if it is necessary to do so when conducting detailed environmental impact assessment; 

15.1.3.To monitor the implementation of the environmental management plan which reflects the results of the detailed environmental impact assessment, and when necessary, to provide conclusion on whether to continue the project to the relevant state central administrative body.

Article 16.Duties of the business entity that is authorized to conduct the detailed environmental impact assessment

16.1.The business entity that is authorized to conduct the detailed environmental impact assessment shall have the following duties: 

16.1.1.It is permitted to use the conclusion of previously made assessments and research results, and conduct the additional studies in order to clarify them; 

16.1.2.To make amendment to the report of the detailed environmental impact assessment in accordance with the review and recommendation;

16.1.3.To be responsible for the correctness and adequacy of the detailed environmental impact assessment; 

16.1.4.To keep  confidentiality of the information on technique, technology and business of the project. 

16.2.The business entity that is authorized to conduct detailed environmental impact assessment shall control the risks associated with assessment in accordance with the legislation on Insurance.

Article 17.Duties of the banks, financial and investment institutions

17.1.Bank, financial and investment institutions are obliged not to invest, finance and/or loan to any operation and services that are harmful to the environment, society and human health.

CHAPTER FOUR

THE COMMUNITY INVOLVEMENT

Article 18.The community involvement in the impact assessment

18.1.The central administrative body in charge of environmental affairs shall disclose the information on the development program and plan to be conducted the strategic assessment and/or the projects that were included in the environmental impact assessment to the public through its website. 

18.2.The feedback shall be obtained from the public in the course of conducting strategic assessment on the policies to be governed in the national and regional levels, and the development program and plan to be implemented which are being planned to be implemented by the Government.

18.3.The timeline for collecting the feedback from the public in regards with the strategic assessment shall be no more than 30 working days and the feedback can be taken verbally and/or written form. 

18.4.During the process of preparing report, the legal entity, that is undertaking the detailed impact assessment of project shall organize the discussion and collect the feedback officially from the local administration to be implemented the project, and local citizens and residents who will be affected by the project. 

18.5.The community involvement affair shall be regulated by the procedure; and Cabinet Member in charge of environmental affairs shall approve such procedure. 

CHAPTER FIVE

MISCELLANEOUS

Article 19.Liabilities for violators of law

19.1.Unless an official who has breached this law is subject to the criminal liability, he or she shall be held liable under the Law on Civil Service.

19.2.An individual or a legal entity who has breached this law is subject to the liability in accordance with Criminal Code or Law on Infringement.

/This Article was modified by the law as of December 4, 2015/

Article 20.Compensation of the damage

20.1.The damages to the environment that have been caused by the act of implementing the project without conducting the environmental impact assessment or violation of the requirements established by the assessment shall be estimated using the methodology that is approved by the central administrative body in charge of environmental affairs and compensated by the person in breach. 

20.2.The damages to the environment that have been caused by the incorrect performance of the detailed environmental impact assessment shall be compensated by the competent business entity or organization who conducted the detailed environmental impact assessment.

CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA DEMBEREL.D