Answer ... (a) What environmental regulations or requirements must renewables generators in your jurisdiction observe on an ongoing basis (from pre-development to decommissioning)?
Prior to the construction of a large-scale renewable energy power plant, an environmental impact assessment (EIA) may need to be conducted in accordance with the Environmental Impact Assessment Act.
Projects, depending on their size, may be classified as Class 1 (larger-scale) or Class 2 projects. If a project is classified as a Class 1 project, an EIA is always required. If the project is classified as a Class 2 project, the minister of economy, trade and industry will carry out a review to determine whether an EIA is required.
Class 1 projects include:
- solar power plants with an output of 40,000 kW or more;
- wind power plants with an output of 50,000 kW or more;
- geothermal power plants with an output of 10,000 kW or more;
- hydroelectric power plants with an output of 30,000 kW; and
- thermal power plants (including biomass fuel-based projects) with an output of 150,000 kW or more.
Class 2 projects include:
- solar power plants with an output of at least 30,000 kW but less than 40,000 kW;
- wind power plants with an output of at least 37,500 kW but less than 50,000 kW;
- geothermal power plants with an output of at least 7,500 kW but less than 10,000 kW;
- hydroelectric power plants with an output of at least 22,500 kW but less than 30,000 kW; and
- thermal power plants (including biomass fuel combustion) with an output of at least 112,500 kW but less than 150,000 kW.
In order to determine whether a Class 2 projects requires an EIA, the minister will consider whether it meets the conditions set out in the METI ordinance. For example, an EIA will be required where:
- a school or residential area is located near the power plant; or
- there is a natural area located nearby which requires protection.
The assessment can take around six months from the time the producer notifies METI of the outline of the project.
The EIA process generally takes three to four years, and construction work cannot begin until the assessment process is completed.
Even where projects are not required to undergo an EIA pursuant to the Environmental Impact Assessment Act, prefectural ordinances may require the implementation of an independent EIA.
In addition, there are various regulations (on both a national and potentially local level) regulating matters such as excess noise, vibrations and water pollution, which must be observed by operators.
(b) What are the potential consequences of breach of these requirements – both for the renewables generator and for its directors, managers and employees?
If a business operator attempts to construct a renewable energy project requiring an EIA without first obtaining an EIA, the project will be unable to obtain the necessary development permits.
Fines can be imposed for non-compliance with regulations regarding noise, vibration, water pollution and so on. Directors or employees of the company who violate these regulations can also face punishment.
(c) Which national and regional regulatory bodies are responsible for the enforcement of environmental obligations, and what is their general approach in regulating the renewables industry?
The Ministry of the Environment is broadly responsible for the enforcement of environmental obligations within Japan.
The main approach of the Ministry of the Environment to implementing environmental laws is via regulation. In practice, this means, for example, that:
- businesses which have the potential to have a harmful impact on the environment must obtain permission to operate in advance; and
- fines are imposed on business operators that discharge more than a certain prescribed limit of hazardous substances into the environment.