Article One Purpose and Reference

The guidelines are formulated on the basis of the Chinese State Council’s administration regulations on sewage charges and pollutant charges (State Council No.369), Shanghai Municipal Guidelines on the use of funds from sewage charges and pollutant charges (Shanghai Finance Construction [2004] No.204) as well as the guidelines on the set of guidelines on Baoshan District's management of industry development special funds to enhance restructuring and transforming the economy along with the reality of Baoshan District to regulate the use and management of environment protection special fund, improve the benefits and efficiency of environment protection special fund, pollution control and environment quality.

Article Two The source of the fund

The district financial budget will allocate 25 million yuan to Baoshan District Environment Protection Special Funds (or Special Fund) annually. The special fund will be managed in an exclusive bank account. Annual budget of for the special fund can be properly adjusted following previous year’s fund’s practices. The collected pollution charge in the district, special subsidy funds offered the Shanghai Municipal Environment Protection Bureau, individual, legal persons and social organizations’ donation to the fund for environment protection are all included in the management of the special fund’s exclusive bank account.

Article Three The scope of application

The special fund follows the budget fund’s management regulations to stick to the rules of “planning and coordination, putting priority to key things, focusing on actual effects and exclusive funds for exclusive use”.

The special fund will be mainly used to support, invest, reward and subsidy the relevant projects of the pollution prevention, comprehensive rectification and improving environment quality of the district.

Article Four Supporting ways and requirements

Projects which has been planned and been approved by the special fund will receive a certain volume of fund following the projects’ direct investment volume, environment effects and other comprehensive effects stated in detail in the following paragraphs to be invested in the ways such as supportive investment, investment, reward and subsidies. Major projects supported by the fund include:

(I) Pollution source control projects
1. Key pollution source control projects, including pollution source control projects and pollutant emission reduction projects having pollution sources heavily complained by residents and heavily disturbing residents.

2. Key pollution source’s pollutant emission’s online monitoring, monitoring facilities’ construction and operation projects;
3. Key pollution source pollution accident early-warning system construction projects;
4.Closure, Halt, Merge and relocation projects to eliminate pollution;
5.pollution source control projects at key protection areas such as residential zones, education zones, water sources protection zones, scenic zones and resort areas.
After pollution source control projects completed, they will receive subsidies up to 30 percent of the project’s direct investment volume according to operation environment performances.

(II) promotion projects of new technology and new techniques to control pollution
1. Comprehensive utilization projects for waste water, gas and solid;
2. Typically significant pollution source control projects or demonstration project for solving the area or industry’s pollution;
3.Research, development and promotion application projects for new technologies and clean production techniques to control pollution
After such projects completed, they will receive one-time subsidies up to 20 percent of the project’s direct investment volume.
(III) Regional pollution prevention and control projects
1. Regional control projects included into the district government’s environment comprehensive cleaning campaign;
2. Environment protection projects such as relevant environment functioning zone’s setting up and management, which are approved by the municipal government and district government, mainly including non-general-coal-burning zone, no-coal-burning zone, flying dirt control zone, smoke dust control zone, noise-safe zone, environment ecological town (village), green neighborhood and so on;
3. Regional environment infrastructure construction projects and their supportive projects, including regional waste water collection and centralized processing facilities and renovation projects, waste water control projects, centralized heating and so on;
4. Regional emission reduction projects based on pollutant total volume emission reduction counting;
5. Regional ecological protection demonstration projects;
After such projects have been completed, they will receive one-time subsidies up to 20 percent of the project’s direct investment volume.

(IV) Environment Management Ability building and research and development projects
1.Environment protection management ability building projects, including environment quality monitoring network building, environment supervision stations’ required technology attraction and equipment upgrades projects;
2. Real-time management Info-system building and operation projects on key pollution sources;
3.relevant science research and development projects to disclose and solve regional environment protection and management puzzles;
4.Environment technology support project for key development and construction projects;
5. Encourage and promote the environment protection ability upgrades for the region’s all units;
Such projects can be invested by the special fund.
(V) The State Council and Municipal Government’s definition of other pollution control projects
Such project will receive one-time subsidy up to 30 percent of the project’s direct investment volume.

Article Five Organization
The district environment bureau will be in charge of the special fund’s project management which includes issuing project information, receive, evaluate, implement, supervise and review the projects.

Article Six Application and Approval

(I) The formulation of the special fund’s annual use plan
The district environment protection bureau will follow the use scope of the special fund and next year’s environment protection focus to generate the draft of next year’s special fund use plan for the next year on the current year’s third season; the plan will be report to be joint conference of Baoshan District’s enhancing adjusting structures and promoting transformation to support the management of industries’ special development fund. After the conference passes the report and the district government approves the report, the plan will be ready for use.

Once the plan has to be adjusted, the bureau should raise the revision draft and report to the conference for passing.

(II) the implementation of the special fund’s annual plan
The report and circulation process will follow the Baoshan District’s set of guidelines on enhancing adjusting structures and promoting transformation to support the management of industries’ special development fund’s swift and simplified procedures.

Once the district Party committee and district government approves the plan’s projects needing government purchase or monthly payment, the projects will be carried out immediately; other projects will be carried out according to procedures by the end of that year. The district has to report a mid-term action report of the plan to the joint conference.

(III) settlement of the plan
After the plan passing the conference and approved by the district government, the funds will be in action.

(IV) Online publication
The guidelines and results of the plan will be published online at the platform of Baoshan District’s set of guidelines on enhancing adjusting structures and promoting transformation to support the management of industries’ special development fund.

Article Seven Management and Supervision
(I) Special fund should not be used in other projects irrelevant to environment sanitation, greenery, pollution control for new companies and other pollution control.
(II) Applicant should not receive investment, subsidy or reward of the special fund unless they receive national or municipal edition of funds;
(III) the bureau should inspect the use of special funds and operation of projects, once projects failed emission standards, it will impose punishment according to laws. The punished companies cannot be an applicant in three years.
(IV) The use of special fund should strictly follow the scope of the fund to use it exclusively . violator who used the funds else where will be banned from use this fund for three years and the fund investment should be paid back in full volume.

Article Eight Accessory Rules
(I) The Guidelines will be valid for three years after being printed and enacted.
(II) Baoshan District Environment Protection Bureau and Baoshan District Development and Reform Commission in Shanghai are in charge of the rights to interpret the Guidelines.