CHINA Law and Practice Contributed by: Yan Gao, Yilin Wang and Zhuohui Li, Zhong Lun Law Firm
• water and soil conservation plan approval; • flood impact assessment approval (where applica- ble); and • fire, seismic and lightning protection design review. Completion acceptance covers the main works, envi- ronmental protection facilities, water and soil conser- vation facilities, and fire protection facilities. Licensing Following construction and grid connection, the oper- ator is generally required to apply to the NEA or its regional offices for a generation electric power busi- ness licence within six months of grid connection. Certain projects are exempt, including distributed generation projects approved or filed by the compe- tent energy authority, and renewable energy genera- tion projects with an installed capacity of below 6 MW. 3.2 Obtaining Approvals to Construct and Operate Generation Facilities To obtain the necessary approvals, investors typically prepare project application reports, siting proposals and design documents, and submit them to the com- petent authority for approval or filing. Most approvals do not require hearings, though most decisions are subject to a public notice period. Public participation applies primarily to land acquisition and environmental impact assessment. Environmental Impact Assessments All projects must conduct an environmental impact assessment under the Environmental Impact Assess- ment Law. Projects are classified into three tiers according to their likely environmental impact: • those likely to cause significant environmental impact must prepare a full Environmental Impact Assessment Report; • those likely to cause moderate impact must com- plete an Environmental Impact Assessment Form; and • those with minimal impact need only complete an Environmental Impact Assessment Registration Form. For projects likely to cause significant environmental impact and required to prepare a full Environmental
Impact Assessment Report, public participation is mandatory: prior to submission, the building unit must solicit opinions from relevant organisations, experts and the public through public hearings or other appro- priate means, and must attach to the submitted report a written explanation of whether and how such opin- ions have been adopted. Projects requiring a full Assessment Report or Form must obtain formal approval from the competent ecological environment authority before construc- tion commences. Projects requiring only a Registra- tion Form need only complete a filing. The compe- tent authority must issue its decision within 60 days of receiving a complete report, or within 30 days of receiving a complete form. Approving authorities have direct power to issue binding decisions. 3.3 Approvals to Construct and Operate Generation Facilities All approval and filing procedures are conducted in accordance with the relevant laws and regulations specifying the required documents. Investors may consult preliminary document checklists on govern- ment affairs service websites. Competent authorities may attach conditions to approvals for the siting, con- struction and operation of generation facilities, includ- ing requirements as to commencement and comple- tion dates, investment scale, construction standards and validity periods of approval documents. There is no standalone process for obtaining an amendment or relaxation of approval conditions under PRC law; where material changes to approved parameters are required, the investor must apply to the competent authority for an amended approval document. 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities The principal mechanism for obtaining land-use rights for generation facilities is through state-owned con- struction land. Where the proposed site involves rural collectively-owned agricultural land, the land must first be expropriated by the government and converted to state-owned construction land, following which, land- use rights may be granted to the investor through ten- der, auction or listing. Local governments determine compensation standards for expropriated agricultural
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