Recently, three departments including the Ministry of Finance have issued the Interim Administrative Measures for Emission Permits Granting Revenue (the "Measures") for implementation as of October 1, 2015.
In accordance with the Measures, emission permits granting revenue shall belong to the government non-tax revenue, and shall be remitted to local treasury in full amount and subject to the local budget administration. Meanwhile, the Measures stipulate, the local people's governments of pilot areas shall grant emission permits through granting under quota or public granting (including auction, listing, agreement, etc.). The method of granting under quotas shall be adopted for the existing pollutant discharging entities that obtained emission permits. The granting method of public granting shall be adopted for emission permits of newly constructed projects, the newly added emission permits of reconstruction and expansion projects and the newly added emission permits of existing pollutant discharging entities for the sake of meeting the requirements of total quantity control of pollutant emission. The term of validity of emission permits shall be five years in principle. The Measures clarify emission permits granting revenue shall be included in the general public budget and used for pollution prevention. In addition, the Measures stipulate the legal liabilities of violation of the Measures and so forth.