10.3 Recycled Water Reuse Policy in China
233
In 2017, the 13th Five-Year Water-saving Society Construction Plan required the
recycled water use in water shortage region to reach 20%, based on the achievement
of recycled water use increasing from 2.76 to 5.22 billion m
3 during 12th five-year
period (NDRC 2017).
Besides water quality, price is the most important and most sensitive factor
affecting recycled water use. In 2002, the National Planning Commission with the
Ministry of Financing, the Ministry of Construction, MWR, and SEPA required to
reasonably define the price relationship between recycled water and tap water and
to develop the pricing mechanism to encourage the use recycled water to replace
freshwater and tap water (NDPC et al. 2002).
In 2004, the Office of the State Council further required to rationally formulate a
recycled water tariff. The producer charges users for the recycled water according to
volume. The tariff shall be formulated at a reasonable price gap to tap water tariff,
under the principle of cost recovery and rational benefit, in accordance with recycled
water quality and purpose.
Additionally, preferential electricity prices are applied in recycled water production, and exemptions from the peak electricity tariff are given. The water resources
fee and the urban utility add-on charge are exempted too. The taxation policy to
encourage to produce and use recycled water shall be researched, in order to reduce
production and use costs (Office of the State Council 2004). In 2008, the exemption of
value-added tax was implemented for recycled water production, if the water quality
meets “the Standards of reclaimed water quality (SL368),” in order to promote the
comprehensive use of resources, energy saving, and pollutant reduction (Ministry
of Financing, State Taxation Administration 2008). However, in 2015, the policy
was revised to return 50% value-added tax (Ministry of Financing, State Taxation
Administration 2015).
In 2009, NDRC reiterated the need to develop a policy to reduce recycled water
use costs and maintain a proper gap to tap water price, while considering water
quality and purpose (NDRC and MOHURD 2009).
In 2018, NDRC required to develop the pricing policy helpful to the recycled
use. The recycled water shall be formulated in accordance with the principle of
maintaining its competitive advantage over tap water. The negotiation price, as well
as the decreasing block tariff, could be applied (NDRC 2018).
Therefore, it could be summarized that the recycled water use policy of the last
20 years in China exhibits the following characteristics:
Encouraging use. All the time, the governments and all related departments are
prompted to use recycled water.
Departmental promotion with different focuses. The construction department
emphasizes on the technology improvement and construction and operation issues in
the recycled water sector, from a view of service, while the water department focuses
on management, security, and water quality from a view of resources.
233
In 2017, the 13th Five-Year Water-saving Society Construction Plan required the
recycled water use in water shortage region to reach 20%, based on the achievement
of recycled water use increasing from 2.76 to 5.22 billion m
3 during 12th five-year
period (NDRC 2017).
Besides water quality, price is the most important and most sensitive factor
affecting recycled water use. In 2002, the National Planning Commission with the
Ministry of Financing, the Ministry of Construction, MWR, and SEPA required to
reasonably define the price relationship between recycled water and tap water and
to develop the pricing mechanism to encourage the use recycled water to replace
freshwater and tap water (NDPC et al. 2002).
In 2004, the Office of the State Council further required to rationally formulate a
recycled water tariff. The producer charges users for the recycled water according to
volume. The tariff shall be formulated at a reasonable price gap to tap water tariff,
under the principle of cost recovery and rational benefit, in accordance with recycled
water quality and purpose.
Additionally, preferential electricity prices are applied in recycled water production, and exemptions from the peak electricity tariff are given. The water resources
fee and the urban utility add-on charge are exempted too. The taxation policy to
encourage to produce and use recycled water shall be researched, in order to reduce
production and use costs (Office of the State Council 2004). In 2008, the exemption of
value-added tax was implemented for recycled water production, if the water quality
meets “the Standards of reclaimed water quality (SL368),” in order to promote the
comprehensive use of resources, energy saving, and pollutant reduction (Ministry
of Financing, State Taxation Administration 2008). However, in 2015, the policy
was revised to return 50% value-added tax (Ministry of Financing, State Taxation
Administration 2015).
In 2009, NDRC reiterated the need to develop a policy to reduce recycled water
use costs and maintain a proper gap to tap water price, while considering water
quality and purpose (NDRC and MOHURD 2009).
In 2018, NDRC required to develop the pricing policy helpful to the recycled
use. The recycled water shall be formulated in accordance with the principle of
maintaining its competitive advantage over tap water. The negotiation price, as well
as the decreasing block tariff, could be applied (NDRC 2018).
Therefore, it could be summarized that the recycled water use policy of the last
20 years in China exhibits the following characteristics:
Encouraging use. All the time, the governments and all related departments are
prompted to use recycled water.
Departmental promotion with different focuses. The construction department
emphasizes on the technology improvement and construction and operation issues in
the recycled water sector, from a view of service, while the water department focuses
on management, security, and water quality from a view of resources.