GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM [327] M.T. GEBREGIORGS*† Introducing an Administratively Feasible Environmental Tax System in Ethiopia Abstract ............................................................................................ 328  Introduction ...................................................................................... 329  I. Environmental Regulatory Enforcement and Tax Administration Authorities .................................................... 335  A. Environmental Management and Taxation Overview .... 335  B. Federal Environmental Regulatory Authorities ............. 337  1. Ministry of Environment, Forest and Climate Change of Ethiopia (MEFCCE) ............................... 337  2. Ministry of Water, Irrigation and Electricity of Ethiopia (MWIEE) ................................................... 340  C. Addis Ababa Administration Environmental Regulatory Authorities ................................................... 341  1. Addis Ababa Environmental Protection Authority (AAEPA) .................................................................. 341  2. Addis Ababa Water and Sewerage Authority (AAWSA) ................................................................. 343  3. Addis Ababa Cleanliness Administration Agency (AACAA) ................................................................. 343  4. Addis Ababa Solid Waste Re-use and Disposal Project Office (AASWRDPO) ................................. 344  D. Public-Private Partnership (PPP) ................................... 344  E. Tax Administration Systems .......................................... 347  * Ph.D. researcher in Tilburg School of Law, the Netherlands, and Assistant Professor in Mekelle University School of Law, Addis Ababa, Ethiopia. Contact information: M.T.Gebregiorgs@tilburguniversity.edu. † This research was conducted under the supervision of Professor Dr. Jonathan Verschuuren (TSL, Tilburg University). It was financed by the Netherlands Organisation for International Cooperation in Higher Education (Nuffic), under grant no. NICHE/ETH/020. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 328 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 1. Ethiopian Revenues and Customs Authority (ERCA) ..................................................................... 347  2. Addis Ababa Revenue Authority (AARA) ............... 347  II.    Solid Waste Collection and Transportation ........................... 348  A. Municipal Solid Waste Collection Service .................... 348  B. Hazardous Solid Waste Transport and Disposal Permit System ................................................................ 349  C. Private Organizations ..................................................... 351  D Addis Ababa Administration Solid Waste Tax Collection System .......................................................... 352  1. Addis Ababa Cleanliness Administration Agency ... 352  2. Addis Ababa Water and Sewerage Authority (AAWSA) ................................................................. 352  3. Addis Ababa Revenue Authority .............................. 353  4. Addis Ababa Bureau of Trade and Industry Development (AABTID) .......................................... 354  III.    Landfill Taxes and Services .................................................. 355  A. Existing Landfill Service: Repi Landfill ........................ 355  B. Upcoming Landfill and Transfer Stations ...................... 357  IV.    Sewage Sludge, Sewer, and Sludge Cake Management ........ 358  A. Septic Tank and Latrine Sewage Sludge Dislodging Services .......................................................................... 358  B. Sewer Service ................................................................. 360  C. Sewer and Sludge-Based Waste Water Treatment and Disposal .......................................................................... 362  1. Existing Waste Water Treatment and Disposal ........ 363  2. Waste Water Treatment and Reuse Sub-Processes Under Construction .................................................. 366  D. Sludge Cake Treatment and Disposal ............................ 367  V.    Industrial Effluent Treatment and Disposal ........................... 369  A. Federal Effluent Permit System ..................................... 370  B. Effluent Tax Collection System ..................................... 372  VI.    Addis Ababa Administration Emission Tax Permit System.. 373  Conclusion ........................................................................................ 374  ABSTRACT This Article examines the administrative feasibility of introducing an environmental tax system in the Addis Ababa City Administration (AAA) of Ethiopia. Research supports four findings regarding the difficulty of introducing such a system. First, waste collection, sludge GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 329 Environmental Tax System in Ethiopia dislodging services, and sewer services in Ethiopia are lacking. Second, while there is a somewhat effective tax collection system for solid waste, landfill, and sludge taxes, there is not an effective tax collection system for sewer, effluent, and emission taxes. Third, municipal and hazardous solid waste, sludge cake, industrial effluent treatment, and disposal systems are less environmentally friendly than sewer and sludge-based waste water treatment and disposal systems. Lastly, while there is an operating permit system for sewer use and overt hazardous solid waste transportation and disposal, there is no active permit system for covert hazardous solid waste, effluents, and emissions. Based on these findings, it is concluded that solid waste, landfill, sludge, and sewer taxes are somewhat administratively feasible to implement in Ethiopia, but effluent and emission taxes are not. INTRODUCTION The polluter-pays principle relies on national institutions that are entrusted with environmental protection1 to manage2 environmental3 taxes.4 Environmental taxes are not as expensive to administer and implement as a command and control regime, which limits the amount of residuals that each actor generates.5 The use of environmental taxes can be “described as an evolution in 1 U.N. Conference on the Human Environment, Declaration of the U.N. Conference on the Human Environment, ¶¶ 13–17, U.N. Doc. A/CONF.48/14/Rev.1 (June 16, 1972). 2 M.T. Gebregiorgs, What are the Instrumental Roles of the Introduction of Environmental Tax in the Realisation of the Polluter-Pays Principle under the Federal Jurisdiction of Ethiopia, SOUTH AFRICA J. ENVTL. L & POL’Y 22 (2016). 3 U.N. Conference on Environment and Development, Rio Declaration on Environment and Development, ¶ 16, U.N. A/CONF.151/26/Rev.1 (vol. I), annex I (Aug. 12, 1992) [hereinafter Rio Declaration]. 4 See, e.g., M.N. Murty, Market Based Instruments for Pollution Abatement in India, in ECONOMICS OF ENVIRONMENT AND DEVELOPMENT 129 (Pushpam Kumar ed., 2005); SUSAN WOLF & NEIL STANLEY, WOLF AND STANLEY ON ENVIRONMENTAL LAW 24457 (6th ed. 2014); EUROPEAN ENVTL. AGENCY, ENVIRONMENTAL TAXES: IMPLEMENTATION AND ENVIRONMENTAL EFFECTIVENESS 17 (David Gee ed., 1996); Andrew Jordan, Rüdiger K.W. Wurzel & Anthony R. Zito, ‘New’ Instruments of Environmental Governance: Patterns and Pathways of Change, 12 ENVTL. POL. 3, 13 (2003). 5 See Jordan et al., supra note 4, at 4; Nathalie Chalifour, Maria Amparo Grau-Ruiz & Edoardo Traversa, Multilevel Governance: The Implications of Legal Competences to Collect, Administer and Regulate Environmental Tax Instruments, in HANDBOOK OF RESEARCH ON ENVIRONMENTAL TAXATION 249, 253 (Janet E. Milne & Mikael Skou Anderson eds., 2012). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 330 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 environmental management,”6 and its operation relies on an effective fiscal administration.7 Thus, its design “should be simple, both to administer and to comply with,” and it must be administratively feasible.8 Simply put, environmental taxes are just like other taxes, and their administration should be carried out by the tax authorities according to standard tax procedure. In practice, their administration may not be possible without a certain know-how possessed only by environmental authorities. Accordingly, environmental taxes should function as part of the tax system by environmental authorities and tax authorities working closely together towards a common goal.9 However, problems arise when different levels of government are responsible for designing and applying tax expenditures. Hence, distributing power to different levels of government will only work if there is loyal cooperation and mutual trust.10 Regardless of how power is distributed, problems of implementation can arise. These problems are due to administrative complexity, inconsistencies within the existing legal framework, and design flaws involving a “mismatch between the type of instrument chosen and the nature of the problem targeted.”11 The fact that environmental policies usually originate and elaborate in different settings means that designs and assessments are inundated with contradictions and duplications. So, when interventions are required to fix these problems, there must be cooperation and coordination 6 JEAN-PHILIPPE BARDE, OECD DEVELOPMENT CENTRE, ECONOMIC INSTRUMENTS IN ENVIRONMENTAL POLICY: LESSONS FROM THE OECD EXPERIENCE AND THEIR RELEVANCE TO DEVELOPING ECONOMIES 3 (Doc. OCDE/GD(93)193, 1994), http://www .oecd-ilibrary.org/docserver/download/754416133402.pdf?expires=1519155351&id=id &accname=guest&checksum=F3A881E066FC329520E0626AB86582C6. 7 James Alm & H. Spencer Banzhaf, Designing Economic Instruments for the Environment in a Decentralized Fiscal System, 26 J. ECON. SURVS. 177, 188 (2012). 8 Id. at 187–88. 9 Chalifour et al., supra note 5, at 271. 10 Pedro M. Herrera Molina, Design Options and Their Rationales, in HANDBOOK OF RESEARCH ON ENVIRONMENTAL TAXATION 85, 98–99 (Janet E. Milne & Mikael Skou Anderson eds., 2012); interview with Tsegai Brhane, Ph.D. in Envtl. Law, Mekelle U. Sch. of Law of Eth. in Mekelle, Eth. (June 10, 2014); interview with Mekete Bekelle, Assistant Professor in Envtl. Law, Addis Ababa U. Sch. of Law of Eth. in Addis Ababa, Eth. (Apr. 17, 2014); interview with Taddese Lencho, PhD in Tax Law, Addis Ababa U. Sch. of Law of Eth. in Addis Ababa, Eth. (Apr. 12, 2014). 11 David O’Connor, Applying Economic Instruments in Developing Countries: From Theory to Implementation, 4 ENV’T & DEV. ECON. 91, 92 (1998). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 331 Environmental Tax System in Ethiopia from all parties.12 However, since “institutions form and adapt slowly, in the process of investing in certain norms, values, and cultures,”13 the phased implementation of environmental tax should offer institutions a grace period for learning and adjusting to the new rules.14 Lastly, from the outset, environmental tax “must be backed up by governmental monitoring and enforcement.”15 Ethiopia is committed to developing a national environmental liability and compensation regime.16 Ethiopia also introduces incentives and disincentives to discourage practices that hamper the sustainable use of natural resources and the prevention of environmental degradation and pollution.17 According to early research, Ethiopia has given recognition to the distributive and incentive roles of environmental tax.18 Additionally, the legal viability of introducing new environmental taxes are contingent on the gradual phasing in and restructuring of existing environmental taxes.19 In Ethiopia, both the federal and state government have the duty to enforce and respect the right to live in a clean and healthy environment.20 Due to these responsibilities, all city governments in Ethiopia have a duty to introduce a sanitary service provision tax21 12 Chalifour et al., supra note 5, at 263–64. 13 Jordan et al., supra note 4, at 20. 14 O’Connor, supra note 11, at 92–107. 15 Alm & Banzhaf, supra note 7, at 192; see also BARDE, supra note 6, at 51. 16 See Rio Declaration, supra note 3, ¶¶ 7–13. 17 Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia (Amendment). Article 4(33)(1)(k), Proclamation No. 803/2013, Negarit Gazetta, Year 19, No. 61. [hereinafter DPDEOFDREA]; Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia. Proclamation No. 691/2010, Negarit Gazetta, Year 17, No. 1 [hereinafter DPDEOFDRE]; Federal Environmental Protection Organs Establishment Proclamation. Article 6(12), Proclamation No. 295/2002, Year 9, No. 7 [hereinafter FEPOEP]; see also FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA, ETHIOPIA’S CLIMATE-RESILIENT GREEN ECONOMY: GREEN ECONOMY STRATEGY 198 (2014). 18 Gebregiorgs, supra note 2, at 14–15, 18–24. 19 M.T. Gebregiorgs, How Legally Viable is the Introduction of Environmental Tax in the Implementation of the Polluter-Pays Principle under the Federal Jurisdiction of Ethiopia, L. ENV’T & DEV. 41 (2018) (unpublished manuscript, on file with author). 20 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, arts. 13 § 1, 92 § 1–4. 21 Id. at art. 100(2); Addis Ababa City Government Financial Administration Regulation. Article 2(6), Proclamation No. 39/2011, Addis Negarit Gazetta, Year 3, No. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 332 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 and ensure integrated municipal waste management.22 They also have to provide public goods that the private sector will not, or cannot, provide.23 Simultaneously, city governments shall collect money from its citizens only when authorized by law.24 City governments must establish an environmental agency25 and, where possible, should design its tax structure to provide incentives for environmentally desirable activities and disincentives for actions that damage the environment.26 The benefits of agency intervention should equal or outweigh the costs of the agencies planning, monitoring, and enforcement of its policies.27 However, currently, rather than encouraging environmental conservation, the design of the 33 (see the definition of Fees and Charges); see also A Regulation of Revenue Authority of Addis Ababa City Administration. Article 2(5), Proclamation No. 17/2009, Addis Negarit Gazetta, Year 1, No. 17 [hereinafter AARAR]; A Proclamation to Provide for Financial Administration of Addis Ababa City Government. Article 17, Proclamation No. 16/2009, Addis Negarit Gazetta, Year 2, No. 1 [hereinafter AAFAP]; The Federal Government of Ethiopia Financial Administration Proclamation. Article 17, Proclamation No. 648/2009, Negarit Gazetta, Year 15, No. 56 [hereinafter FGEFAP]. 22 City governments in Ethiopia are bound to internalize their social cost in the provision of municipal waste management by and through the implementing environmental taxes. Federal Pollution Control Proclamation, Article 5(1), Proclamation No. 300/2002, Negarit Gazetta, Year 9, No. 12 [hereinafter FPCP]; ENVIRONMENTAL POLICY OF ETHIOPIA § 3.7(c) (1997) [hereinafter EPE]; Addis Ababa City Government Revised Charter Proclamation. Article 2(4) Proclamation No. 361/2003, Addis Negarit Gazetta, Year 9, No. 86 [hereinafter AACGRCP] (see the definition of “Municipal Service”); Waste Management, Collection and Disposal Regulation of the Addis Ababa City Administration Government Regulation. Article 2(2), Proclamation No. 13/2004, Addis Negarit Gazetta, Year 2, No. 29 [hereinafter AAWMCDR] (see the definition of “Sanitary Service”); see also Solid Waste Management Proclamation. Article 4, Proclamation No. 513/2007, Negarit Gazetta, Year 13, no. 13 [hereinafter SWMP]. 23 MINISTRY OF NATURAL RESOURCES DEVELOPMENT AND ENVIRONMENTAL PROTECTION, NATIONAL POLICY ON NATURAL RESOURCES AND THE ENVIRONMENT: NATIONAL CONSERVATION STRATEGY VOLUME II, §§ 1.5, 3.6.2 (1994) [hereinafter NCS II]. 24 FGEFAP, supra note 21, at art. 10(1); AAFAP, supra note 21, at art. 10(1); AACGRCP, supra note 22, at arts. 52, 58(1). 25 FEPOEP, supra note 17, at art. 14. 26 NCS II, supra note 23, § 3.6.2; FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA: MINISTRY OF WATER RESOURCES ETHIOPIAN WATER SECTOR STRATEGY 5 (2001) [hereinafter EWSS]; FEDERAL ENVIRONMENTAL PROTECTION AUTHORITY OF ETHIOPIA BALANCED SCORECARD § 2.1 (2012-2016) [hereinafter FEPAE BSC]; MINISTRY OF FINANCE AND ECONOMIC DEVELOPMENT OF ETHIOPIA, BALANCED SCORECARD 13, 33 and 39 (2011-2015) [hereinafter MFEDE BSC]; see also FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA: MINISTRY OF WATER RESOURCES, ETHIOPIAN WATER RESOURCES MANAGEMENT POLICY, (2001) §§ 1.3(3), 2.2.5(B)(1)–(2) (2001) [hereinafter EWRMP]; see also REVENUE AND CUSTOMS AUTHORITY OF ETHIOPIA, BALANCED SCORECARD 10 (2011-2015) [hereinafter RCAE BSC]. 27 NCS II, supra note 23. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 333 Environmental Tax System in Ethiopia Ethiopian tax system seems to fulfil a singular purpose: raising revenues.28 While the Ethiopian Revenues and Customs Authority (ERCA) is by no means the sole player in tax administration, recent tax administration reform has concentrated the power of taxation within that entity.29 Because there are many government bodies involved in tax administration in Ethiopia, there are concerns of disorganization and conflicts of jurisdiction.30 The pollution control system is suffering from a lack of coherence, consistency, and coordination.31 There are conflicts of interest and duplications of effort in the environmental standard formulation, Environmental Impact Assessment (EIA) review, and the permit and monitoring system.32 Ethiopia has serious deficiencies in sanitation, landfill, sewage infrastructures, and its rivers are serving as open sewers for untreated industrial waste.33 The 28 Taddese Lencho, The Ethiopian Tax System: Excesses and Gaps, 20 MICH. ST. INT’L L. REV. 327, 328 (2013); interview with Tsegai Brhane, supra note 10; interview with Belete Ahmed, Research, Drafting & Training Team Leader & Deputy Pub. Prosecutor, Revenue & Customs Auth. of Eth., Addis Ababa, Eth. (May 3, 2014); interview with Yirgalem Eshetu, Core Process Owner, Pol’y Study & Population Affairs Core Process, Addis Ababa Bureau of Finance and Econ. Dev., Addis Ababa, Eth. (Oct. 6, 2015); interview with Atkilt Gebrezgabiher, Addis Ababa Revenues & Customs Branches’ Support & Follow-up Directorate, Director, Addis Ababa, Eth. (Oct. 6, 2015). 29 Taddese Lencho, supra note 28, at 351. 30 Id. at 352. 31 Tsegai Brhane, Industrial Pollution Control and Management in Ethiopia: A Case Study on Almeda Factory and Sheba Leather Industry in Tigrai National Regional State (Feb. 25, 2015) (unpublished Ph.D. dissertation, University of Warwick) (on file with University of Warwick Publications Service). 32 Interview with Tesfaye Yakob, Env’t, Health & Safety Standard Dev. Team Leader, Ethiopian Standards Agency, Addis Ababa, Eth. (June 30, 2014); interview with Mehari Wendmagegn, Compliance Monitoring & Evaluation Directorate Director, Ministry of Env’t, Forest & Climate Change of Eth., Addis Ababa, Eth. (Apr. 10, 2014); M.T. Gebregiorgs, Administrative Powers of the Federal Environmental Protection Authority of Ethiopia in the Protection of the Environment: The Law and the Practice (2010) (unpublished M.A. thesis, University of Addis Ababa) (on file with author). 33 Action for Professionals’ Association for the People (APAP) vs. the Federal Environmental Protection Authority of Ethiopia, (Civil File No. 64902, Federal First Instance Court, Feb. 21, 1999); EPE, supra note 22, § 1.2; U.N. Conference on Sustainable Development, National Report of Ethiopia, 64 (2012) [hereinafter Rio+20]; MINISTRY OF ENV’T, FOREST AND CLIMATE CHANGE OF ETHIOPIA: ASSESSMENT ON INDUSTRIAL POLLUTION AND THEIR ENVIRONMENTAL, ECONOMIC AND SOCIAL IMPACT (2014) [hereinafter MEFCCE AIPEESI]; ENVTL. DEV. ACTION-ETH., SOCIAL IMPACT ASSESSMENT OF KOSHE DUMP SITE CLOSURE AND RECLAMATION PROJECT 4 (2012) [hereinafter SIAKDSCRP]; BELES ENGINEERING P.L.C., ENVIRONMENTAL AND SOCIAL IMPACT ASSESSMENT OF WASTE WATER TREATMENT PLANT AND SEWER LINE EXPANSION AND REHABILITATION IN THE KALITI CATCHMENT xii (2013) [hereinafter GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 334 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 inadequacy of public-private partnerships (PPPs) impedes the progress of waste management.34 These realities show that Ethiopia as a whole, and the AAA in particular, can only do so much in administering taxes that help protect the environment. This research assesses a topic for which there is scarce literature, addressing the principles involved in matching environmental problems with levels of government and their tax regimes.35 In addition, the unique governmental and environmental circumstances within Ethiopia must be understood prior to designing and applying any environmental tax.36 Such an understanding will facilitate the design and administration of feasible environmental taxes. This article seeks to fill the lack of empirical research on environmental tax within Ethiopia and further the understanding needed for the implementation of an effective environmental tax policy there. The research in this Article shows that introducing an environmental tax is administratively feasible when five critical conditions exist. The first is conformity between state and federal environmental policy and tax policy on environmental standards, EIAs, permits, regulations, municipal waste management, and tax mandates. The second condition is that environmental governance must accommodate PPPs. The third condition is that federal and state governments must empower solid waste, landfill, sludge, sewer, effluent, and emission tax collection systems. The fourth is the existence of effective and environmentally friendly treatment and disposal for municipal and hazardous solid waste, sludge cake, industrial effluent, as well as sewer and sludge-based waste. And lastly, the fifth condition is the existence of a permit system for hazardous solid waste transportation and disposal, sewer use, effluent disposal, and emission release. This Article is organized into six major parts. Part I identifies all federal, and Addis Ababa Administration (AAA) agencies at play in ESIA WWTPSLER KC]; AGENCE FRANCAISE DE DEVELOPPEMENT & ADDIS ABABA CITY GOVT., SOLID WASTE MANAGEMENT STRATEGY AND INSTITUTIONAL REPORT 1 (2013) [hereinafter AFDD/AACG SWMSIR]; M.T. Gebregiorgs, The Role of Public Interest Litigation in the Protection of the Environment of Ethiopia: The Law and the Practice, Mekelle University Cultural Landscapes of Ethiopia Conference Proceedings (2015); Tsegai Brhane, supra note 31 (unpublished Ph.D. dissertation). 34 Camilla Louise Bjerkli, Governance on the Ground: A Study of Solid Waste Management in Addis Ababa, Ethiopia, 37 INT’L J. URB. REG’L RES. 1273 (2013); AFDD/AACG SWMSIR, supra note 33, at 12. 35 Chalifour et al., supra note 5, at 250. 36 Economic Instruments, supra note 17, at 12. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 335 Environmental Tax System in Ethiopia the environmental protection, waste management and taxation sector in the AAA. This part also explores existing possible areas for government agencies to engage in PPPs to provide for more environmentally proactive and administratively efficient infrastructure projects. Next, Part II describes existing public and PPP organizations for municipal and hazardous solid waste collection, transport, and fee arrangements in Addis Ababa. The part then identifies challenges with tax collection systems that are preventing effective administration of solid waste programs. Part III explores existing challenges to the current operation of the Repi Landfill in Addis Ababa. The section also identifies the opportunity to limit environmental pollution through the installation of bio-gas capture and energy technology to reduce landfill emissions and its eventual, planned closure. Then, Part IV reports on sewage sludge, sewer, and sludge cake management organizations in Addis Ababa. Here, too, there is an opportunity for the AAA to enhance revenue and investment strategies to provide for improved environmental service coverage to citizens, and for improved environmental practices in the collection, transport, treatment or disposal of waste. In Part V, issues and potential solutions to enhancing environmentally friendly industrial effluent treatment and disposal program, effectuated by the AAA are discussed. Finally, Part VI briefly reports on the current challenges facing the administrative feasibility of designing and implementing a GHG emissions tax program in the AAA’s jurisdiction. I ENVIRONMENTAL REGULATORY ENFORCEMENT AND TAX ADMINISTRATION AUTHORITIES A. Environmental Management and Taxation Overview In Ethiopia, natural resource and environmental management activities are required to be integrated laterally across all sectors and vertically among all levels of government organizations.37 Ethiopia is committed to fostering a system that avoids conflicts of interests and 37 EPE, supra note 22, §§ 2.3(p)–(s); FEDERAL ENVIRONMENTAL PROTECTION AUTHORITY OF ETHIOPIA BUSINESS PROCESS REENGINEERING § 1.2.1 (2010); FEPAE BSC, supra note 26, § 1.7; RCAE BSC, supra note 26; MINISTRY OF WATER, ENERGY AND IRRIGATION OF ETHIOPIA BALANCED SCORECARD §§ 1.3.2, 1.4 (2011-2015); MFEDE BSC, supra note 26. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 336 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 duplications of efforts by assigning responsibilities to separate organizations for environmental and natural resource development and management. The environmental governance in Ethiopia has two wings: (1) environmental and natural resource development and management; and (2) environmental protection, regulation, and monitoring. It aims to exploit the existing institutions to the maximum extent while minimizing cost.38 The federal government sets the minimum threshold of environmental standards, and states have the duty to ensure, at the minimum, the implementation of the federal standards.39 The federal government in Ethiopia is mandated to enact specific laws to utilize and conserve land and other natural resources.40 It has the duty to administer and enact specific laws of the waters linking two or more states or crossing Ethiopia’s national boundaries.41 States must administer natural resources in accordance with the federal laws. In this way, Ethiopia practices fiscal federalism.42 Fiscal federalism is a process of devolving fiscal decision-making power across multi- levelled governments.43 While local governments are better situated to address issues that fall within their jurisdiction, the federal government is better positioned to address issues that have significant national effects.44 Subject to Ethiopia’s federal and state powers of taxation, the federal and state entities must share revenue under this arrangement, and they have the duty to bear their respective financial burden.45 In 38 EPE, supra note 22, §§ 5.1(c)–(d)(iv). 39 FPCP, supra note 22, at arts. 6(1)–(4); FEPOEP, supra note 17, at art. 15(2); The Addis Ababa City Government Executive and Municipal Service Organs Re-establishment Proclamation. Article 9(1), Proclamation No. 35/2012, Addis Negarit Gazetta, Year 4, No. 35, [hereinafter AAEMSORP]. 40 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, art. 55 § 2(a). 41 Id. at arts. 51 § 11, 55 § 2(a). 42 Id. at art. 52 § 2(d). 43 Abu Girma Moges, An Economic Analysis of Fiscal Federalism in Ethiopia, 10 NE. AFRICAN STUD. 111 (2003); Abu Girma Moges, Fiscal Federalism in Theory and Practice, 5 ETH. E-J. RES. & INNOVATION 6 (2013); Luiz R. De Mello Jr., Fiscal Decentralization and Intergovernmental Fiscal Relations: A Cross-Country Analysis, 28 WORLD DEV. 365 (2000). 44 Alm & Banzhaf, supra note 7, at 196–97; Molina, supra note 10, at 88. 45 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995 arts. 51 § 10, 52 § 2(e), 55 §§ 11, 94(1), 95–99; THE HOUSE OF FEDERATION OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA, THE FEDERAL BUDGET GRANT DISTRIBUTION FORMULA 70, 118 (2012/13–2016/17); see AACGRCP, supra note 22, at art. 53 (explaining the equivalence between taxing and spending power as an indicator of GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 337 Environmental Tax System in Ethiopia addition, they have the duty to ensure that any tax is related to the source of revenue that is taxed;46 and, they must ensure that the tax does not adversely affect the relationship between the federal government and regional states.47 Thus, the fiscal framework of Ethiopia ensures that the introduction of federal and state revenue instruments are consistent with their governmental mandates and fiscal needs.48 In addition, according to early research, the scope of environmental tax is legally viable to reflect the degree of Ethiopia’s environmental and fiscal federalism and the absence of legal room in the design of Ethiopia’s environmental and fiscal federalism for environmental tax-based unfair competition and a race to the bottom.49 B. Federal Environmental Regulatory Authorities 1. Ministry of Environment, Forest and Climate Change of Ethiopia (MEFCCE) The Ministry of Environment, Forest and Climate Change of Ethiopia (MEFCCE) has the duty to enforce federal environmental policies and laws as well as spearhead the assurance of environmental protection.50 Implementation of the federal policies and laws must be done without wasting resources.51 Where necessary, the MEFCCE may delegate part of its obligations to other federal and regional organizations.52 The MEFCCE mandates environmental standards to the states.53 However, a state may implement its own standard, on the condition the true degree of autonomy of local governments); Frans Vanistendael, Legal Framework for Taxation, in 1 TAX LAW DESIGN AND DRAFTING 50 (Victor Thuronyi ed., 1996). 46 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, arts. 96–100 § 1; Taddese Lencho, supra note 28, at 340. 47 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, art. 100 § 2; Taddese Lencho, supra note 28, at 340, 346; see also Fasil Nahum, CONSTITUTION FOR NATION OF NATIONS: THE ETHIOPIAN PROSPECT 36, 200 (1997). 48 Gebregiorgs, supra note 19, at 21. 49 Id. at 18–20. 50 EPE, supra note 22, § 5.3(c); DPDEOFDRE, supra, note 17, at art. 10(1)(b); FEPOEP, supra note 17, at art. 5. 51 DPDEOFDREA, supra note 17, at art. 4(33)(1)(f). 52 DPDEOFDRE, supra note 17, at art. 10(7), FEPOEP, supra note 17, at art. 6(24). 53 FEPOEP, supra note 17, at art. 6(7); FPCP, supra note 22, at art. 6(1)(e). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 338 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 that it is not less stringent than the MEFCCE’s.54 The Ethiopian Standards Agency (ESA) also mandates minimum Ethiopian national standards55 by recognizing standards published by national, regional, or international standardization bodies.56 Subsequently, stakeholders must develop their respective derivative standards.57 In practice, the MEFCCE has independently approved the Standards for Industrial Pollution Control in Ethiopia, which was adopted by the federal institutions, regional states, and the AAA.58 Thus, the standard formulation mandate of the MEFCCE overlaps with the mandate of the ESA, leaving it susceptible to a duplication of efforts.59 The MEFCCE has a duty to establish a federal EIA system for projects that are subject to licensing, execution, and supervision by a federal agency or likely to produce trans-regional impacts. It is 54 FPCP, supra note 22, at art. 6(4); FEPOEP, supra note 17, at art. 15(2); AAEMSORP, supra note 39, at art. 9(1). 55 Ethiopian Standards Agency Establishment Council of Ministers Regulation. Article 5(1), Proclamation No. 193/2010, Negarit Gazetta, Year 17, No. 13. 56 Id. at art. 6(3). 57 Tesfaye Yakob, supra note 32; Emission Waste Tax Focus Group discussion with Mehari Wendmagegn, Compliance, Monitoring, and Evaluation Director, Ministry of Envtl. & Forest of Eth., Addis Ababa, Eth., (July 5, 2014); Emission Waste Tax Focus Group discussion with Girmaye Teshome, Compliance Monitoring Expert, Ministry of Envtl. & Forest of Eth., Addis Ababa, Eth., (July 5, 2014); Emission Waste Tax Focus Group discussion with Tesfaye Yakob, Envtl., Health and Safety Standard Dev. Team Leader, Eth. Standards Agency, Addis Ababa, Eth., (July 5, 2014); Emission Waste Tax Focus Group discussion with Adugna Mekonnen Beyene, Deputy Manager, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Eth., (July 5, 2014); Emission Waste Tax Focus Group discussion with Tamene Mengistu, Envtl. Pollution Inspector, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Eth., (July 5, 2014). 58 FEDERAL STANDARDS FOR INDUSTRIAL POLLUTION CONTROL IN ETHIOPIA (2011) [hereinafter FSIPCE]; interview with Haileslassie Sebhatu, Gen. Manager, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Eth., (Mar. 27, 2014); interview with Adugna Mekonnen, Deputy Manager, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Eth., (Apr. 1, 2014); interview with Meseret Mengiste, Envtl. Awareness & Pollution Inspection Team Leader, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Eth. (Apr. 7, 2014); interview with Asamnew Tekleyowhans, Legal Affairs Officer, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Ethiopia (May 2, 2014); interview with Adugna Mengste, Envtl. Safeguards Team Leader, Ministry of Industry of Eth., Addis Ababa, Eth. (July 7, 2014); interview with Kifle Alemayehu, Director of Water Utilisation, Permit & Admin. Directorate, Ministry of Water, Irrigation and Electricity of Eth., Addis Ababa, Eth. (July 3, 2014); interview with Zewdu Tefera, Legal Affairs Directorate Director, Ministry of Water, Energy & Irrigation of Eth., Addis Ababa, Eth. (Apr. 2, 2014); Emission Tax Focus Group Discussion, supra note 57. 59 Interview with Tesfaye Yakob, supra note 32; interview with Mehari Wendmagegn, supra note 32; Emission Tax Focus Group Discussion, supra note 57. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 339 Environmental Tax System in Ethiopia responsible for evaluating and monitoring the implementation of its EIA study and environmental management plans, respectively.60 Nevertheless, in practice, the Ministry of Water, Irrigation and Electricity of Ethiopia (MWIEE)61 and Ministry of Industry of Ethiopia (MIE)62 are reviewing the portions of the EIA that fall under their jurisdiction. Since the power to review Environmental Impact Assessment Study Report has been delegated to institutions that have a conflict of interest in the review, and because the decision to delegate the duty was based on the decision of the Council of Ministers of Ethiopia, it is vulnerable to substantive and procedural ultra-virus, proceeding “beyond one’s legal power or authority.”63 This is because the delegation of the power to review EIAs to the MWIEE and the MIE allows them to review their own projects; thus, creating a conflict of interest. When projects are subject to federal licensing, execution, and supervision, or when they are likely to produce trans-regional impacts, they are subject to the MEFCCE’s permit, regulation, and audit system.64 Additionally, the MEFCCE must ensure, monitor, and evaluate the adequacy of hazardous and municipal waste management and disposal systems.65 In executing these responsibilities, the MEFCCE is subject to the Office of the Federal Auditor General of Ethiopia’s environmental performance audit, pursuant to its 60 DPDEOFDREA, supra note 17, at arts. 4(33)(1)(b)–(e); FEPOEP, supra note 17, at arts. 6(4)–(5); Federal Environmental Impact Assessment Proclamation. Article 14, Proclamation No. 299/2002, Negarit Gazetta, Year 9, No. 11 [hereinafter FEIAP]. 61 The Environmental Impact Assessment and Social Development Office of the MWIEE must review the EIA of water, irrigation and energy projects. FEPAE BSC, supra note 26; Letters of Delegation of the Power to Review Environmental Impact Assessment to Sectoral Institutions, ENVIRONMENTAL IMPACT ASSESSMENT SOCIAL IMPACT TO MINISTRY OF INDUSTRY [hereinafter FEPAE LDPR EIA SI]; interview with Getnet Fetene, Senior Monitoring & Evaluation Expert in Envtl. Impact Assessment & Soc. Dev. Off., Ministry of Water, Irrigation & Electricity of Eth., Addis Ababa, Eth. (Dec. 19, 2015). 62 The Ministry of Industry of Ethiopia’s Environmental Safeguards Team is delegated to review the EIA of proponents that fall in its domain and issues unconditional or conditional approval or rejects the proposed project. FEPAE LDPR EIA SI, supra note 61; Gebregiorgs, supra note 32, at 51; interview with Adugna Mengste, supra, note 58. 63 Gebregiorgs, supra note 32, at 83. 64 FEPOEP, supra note 17, at art. 6(5); FEIAP, supra note 60, at art. 14; Prevention of Industrial Pollution Council of Ministers Regulation. Articles 5, 13, Proclamation No. 159/2008, Negarit Gazetta, Year 15, No. 14 [hereinafter PIPCMR]. 65 FPCP, supra note 22, at arts. 4(1), 5(2) & 5(4). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 340 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 establishment laws.66 Possible conflicts of interest arise between states that have vested interests in trans-regional issues in the administration of trans-regional projects since the authority to regulate and permit such projects in the AAA is assigned to only one state’s environmental regulatory organization, the Addis Ababa Environmental Protection Agency (AAEPA). 2. Ministry of Water, Irrigation and Electricity of Ethiopia (MWIEE) The Ethiopian Constitution enables,67 the Ministry of Water, Irrigation and Electricity of Ethiopia (MWIEE) to ensure compliance of water projects with federal laws68 and manage water resources permits.69 To ensure the highest social and economic benefits, the MWIEE is responsible for the planning, management, and protection of Ethiopia’s water resources.70 For example, the MWIEE may issue permits for the release of treated waste into water resources and may collect effluent charges from permit holders,71 prepare directives and standards, and determine the way water users utilize water resources.72 Under the Ethiopian Federal Water Resources Management Proclamation, the MWIEE may also delegate part of its mandates to other government bodies.73 Currently, the MWIEE has 66 The Office of the Federal Auditor General of Ethiopia relied on the International Organization of Supreme Audit Institutions Working Group on Environmental Auditing, as a source of international auditing standards. Office of the Federal Auditor General Establishment Proclamation (Amendment). Articles 4, 5(5) &16(3), Proclamation No. 669/2010, Negarit Gazetta, Year 16, No. 22; OFFICE OF FEDERAL AUDITOR GENERAL, PERFORMANCE AND ENVIRONMENTAL AUDIT MANUAL: AUDITORS GENERAL CAPACITY AND ENHANCEMENT PROJECT (2006); see interview with Paulos Zerihun, Performance Audit Director, Off. of Fed. Auditor Gen. of Eth., Addis Ababa, Eth. (Oct. 2, 2015) (explaining that the Office of Federal Auditor has developed the Federal Performance Audit and Environmental Audit Manual, and audited the MEFCCE two times). 67 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, art. 51(11). 68 DPDEOFDRE, supra note 17, at art. 10(1)(b). 69 Ethiopian Federal Water Resources Management Proclamation. Article 2(19), Proclamation No. 197/2000, Negarit Gazetta, Year 6, No. 25, art. 2(19) [hereinafter EFWRMP] (defining “water resource management” as “activities that include water resources development; utilization, conservation, protection and control”). 70 Id. at arts. 6(3), 8(1). 71 Id. at arts. 13, 22(1)–(2); Ethiopian Water Resources Management Regulation. Article 3, Proclamation No. 115/2005, Negarit Gazetta, No. 305, art. 32(1) [hereinafter EWRMR]. 72 EFWRMP, supra note 69, at art. 8(1). 73 Id. at art. 8(2); DPDEOFDRE, supra, note 17, at art. 10(7). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 341 Environmental Tax System in Ethiopia delegated its effluent regulatory power for trans-regional and national water bodies in the AAA to the AAEPA.74 C. Addis Ababa Administration Environmental Regulatory Authorities 1. Addis Ababa Environmental Protection Authority (AAEPA) Subsequent to its duty to establish an independent environmental agency that regulates and protects the environment,75 the AAA has tasked the Addis Ababa Environmental Protection Authority (AAEPA) to ensure adherence to federal environmental standards, or to its own more-stringent ones.76 The AAEPA must review the EIA studies of projects that are not subject to federal licensing and those that are unlikely to result in trans-regional impacts.77 The AAEPA has established an EIA Version Coordinator’s Office, which evaluates and monitors the implementation of EIA studies and environmental management plans.78 The AAEPA has introduced up-to-date instrumental, micro- biology, physicochemical, and soil and air environmental laboratories, 74 Interview with Kifle Alemayehu, supra note 58. 75 FEPOEP, supra note 17, at art. 15(1). 76 The AAEPA has adopted the FSIPCE, supra note 58; AAEMSORP, supra note 39, at art. 11(1); but see Addis Ababa City Government Environmental Pollution Control Regulation. Article 5(2), Proclamation No. 25/2007, Addis Negarit Gazetta, Year 4, No. 56 [hereinafter AAEPCR] (setting forth more restrictive environmental standards). 77 AARPCR, supra note 76. 78 FEIAP, supra note 60, at arts. 3, 14(2); Addis Ababa City Government Environmental Impact Assessment Regulation. Articles 5(2), 17, Proclamation No. 21/2006, Addis Negarit Gazetta, Year 4, No. 48, [hereinafter AAEIAR]; interview with Seid Abdela, Envtl. Impact Assessment Version Coordinator, Addis Ababa City Gov’t Envtl. Protection Authority, Addis Ababa, Eth. (May 7, 2014); interview with Andargachew Getachew, Megenagna Branch Officer, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Jan. 4, 2016); interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, Envtl. Awareness & Pollution Inspection Officer, Addis Ababa City Government Envtl. Protection Authority, Addis Ababa, Eth. (Apr. 7, 2014); interview with Senait Asaminew, Envtl. Awareness & Pollution Inspection Officer, Addis Ababa City Gov. Envtl. Protection Authority, Addis Ababa, Eth. (Dec. 28, 2015); Melkamu Belachew, Powers and Functions of the Federal Inland Revenue Authority and the Position of the Tax Appeal Commission (2003) (unpublished senior thesis, Addis Ababa University) (on file with the Faculty of Law Library Archives); see ADDIS ABABA MINISTRY OF NAT. RES. DEV. & ENVTL. PROT., NAT’L CONSERVATION STRATEGY SECRETARIAT, TRANSITIONAL GOV’T OF ETH., THE CONSERVATION STRATEGY OF ETHIOPIA VOLUME III: INSTITUTIONAL FRAMEWORK AND OPERATIONAL ARRANGEMENTS § 4.2.1(70) (1997) [hereinafter CSE III]. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 342 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 that provide legal oversight of environmental regulations.79 Moreover, the AAEPA has environmental inspectors that may require, without a court order, permits or documents upon unannounced requests. The purpose of these random investigations is to collect original samples for laboratory testing to reveal the extent of industrial compliance to the Federal Environmental Standard of Ethiopia.80 The AAEPA monitors industries within the AAA based on an audit report of industries, public complaint, and annual license renewal. To this effect, it has started to endorse a memoranda of understanding with investment, trade, and operating permit licensing organizations.81 Furthermore, the AAEPA grants licenses, permits, and regulates both federal and local industrial, manufacturing, and service delivery organizations.82 It also regulates and controls the disposal of industrial residue, by-products, and waste.83 In addition, the AAEPA has a duty to collaborate with the Addis Ababa Cleanliness Administration Agency (AACAA) on the management and disposal of industrial and hospital waste, the preparation of landfills, and the prevention and control of environmental pollution.84 79 AAEPCR, supra note 76, at art. 11; see interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; DVD: Researcher’s Video Record- Based Observation and Explanation of Addis Ababa Environmental Protection Laboratory and explanation (on file with author) (showing that except for a few parameters and human resource limitation and turnover, the lab is fully operational with interviews with Mesfin Guche, Instrumental Laboratory Expert, Brhanu Ahmed, Micro-Biology Laboratory Expert; Daniel Bogale, Physicochemical Laboratory Expert, Dawit Alemu, Soil Laboratory Expert; Addis Ababa City Government Environmental Protection Authority 2014); interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78. 80 AAEPCR, supra note 76, at arts. 12, 13(1)(b)–(d), 13(1)(h); see Proclamation of the Constitution of the Federal Democratic Republic of Ethiopia. Article 26(3), Proclamation 1/1995, Negarit Gazetta (extra-ordinary), Year 1, No. 1 (stating, in part, that public officials may place restrictions on the right to privacy for the protection of health in compelling circumstances); see also FPCP, supra note 22, at arts. 7–9, 13 (stating, in part, the scope of environmental inspectors’ authority, rights to appeal the inspectors’ work, and offenses for hindering inspectors); interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78. 81 MEMORANDUM OF UNDERSTANDING BETWEEN THE MINISTRY OF TRADE OF ETHIOPIA AND ADDIS ABABA ENVIRONMENTAL PROTECTION (June 2013); interview with Senait Asaminew, supra note 78. 82 PIPCMR, supra note 64, at arts. 5, 13; AAEPCR, supra note 76, at arts. 14, 15(4), 16–20; see also FSIPCE, supra note 58 (detailing standards for industrial pollution). 83 AAEMSORP, supra note 39, at art. 11(3). 84 AAWMCDR, supra note 22, at art. 22(3). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 343 Environmental Tax System in Ethiopia Subject to the environmental performance audit of the Office of the Chief Auditor of the AAA,85 the AAEPA is expected to undertake an external environmental audit and to appraise the internal audit of industries. Because both the AAEPA and sixty-six percent of the industries in Ethiopia currently fail to undertake an environmental audit, the AAEPA’s inspection tools appear to not be functioning as intended.86 2. Addis Ababa Water and Sewerage Authority (AAWSA) Pursuant to the AAA’s integrated waste management policy,87 the Addis Ababa Water and Sewerage Authority (AAWSA) is required to prepare a master plan for sewerage lines, prepare contract documents, identify financial demands, and improve the liquid waste disposal system in the city.88 The AAWSA also holds the exclusive right to provide sewer and sludge services and to install and operate their treatment and disposal system on a fee basis.89 Subsequently, the AAWSA is mandated by local proclamation to collect a sanitary service tariff90 and to manage its internal and external funds.91 3. Addis Ababa Cleanliness Administration Agency (AACAA) The Addis Ababa Cleanliness Administration Agency (AACAA) was established as a means of ensuring integrated solid waste management in Addis Abba.92 In accordance with its mandate, the AACAA issues directives, competence certificates, and work permits.93 The agency incorporates alternative service delivery systems, facilitates contract-based payment to public and private 85 AACGRCP, supra note 22, at art. 26(1). 86 MEFCCE AIPEESI, supra note 33, at 18; interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78. 87 FPCP, supra note 22, at art. 5(1); EPE, supra note 22, § 3.7(c). 88 AAEMSORP, supra note 39, at arts. 59(1), (3)–(4), (6). 89 Addis Ababa Water and Sewerage Authority Re-establishment Proclamation. Proclamation No. 10/1995, Negarit Gazetta, Year 18, No. 3 [hereinafter AAWSARP]. 90 Regulation to Determine and Collect the Sanitary Service Tariff of the Addis Ababa City Government. Articles 8(1)–(4) Proclamation No. 25/2009, Addis Negarit Gazetta, Year 2, No. 25 [hereinafter RDCSSTAACG]. 91 AAWSARP, supra note 89, at art. 25. 92 AAEMSORP, supra note 39, at art. 55(1), (3); FPCP, supra note 22, at art. 5(1); RDCSSTAACG, supra note 90, at art. 3(2); ADDIS ABABA CLEANLINESS ADMINISTRATION AGENCY SANITATION SERVICE DELIVERY STANDARD 2013/14 [hereinafter AACAA SSDS]. 93 AAWMCDR, supra note 22, at art. 36. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 344 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 partners, and has introduced a tariff system that includes a payment function.94 The AACAA may also delegate branches of the agency to collect sanitary service charges.95 4. Addis Ababa Solid Waste Re-use and Disposal Project Office (AASWRDPO) The Addis Ababa Solid Waste Re-use and Disposal Project Office (AASWRDPO) was established to oversee Addis Ababa’s solid waste transfer stations and re-use and disposal site projects.96 It manages the Repi Landfill, and has introduced a solid waste weighbridge. The AASWRDPO has also introduced a landfill service charge and waste- transfer station that it will implement and manage upon approval.97 Finally the AASWRDPO has the duty to introduce a “Reduce, Reuse, Recycle, and Recover” system to the landfill, and will facilitate the eventual closure of the landfill in aspiration that the site will serve a more sustainable purpose in the future.98 D. Public-Private Partnership (PPP) The term “public-private partnership” (PPP) stands for the transfer “of a good or a service currently provided by the public sector, either in whole or in part, to the private sector.”99 PPPs are an ideal way for the public sector to complete infrastructure projects by relying on the private sector’s diverse experience, capacity, and affordability.100 94 AAEMSORP, supra note 39, arts. 55(5), (9)–(12); RDCSSTAACG, supra note 90, at art. 7(5); interview with Dawit Ayele, Gen. Manager, Addis Ababa Cleanliness Admin. Agency, Addis Ababa, Eth. (July 1 2014); interview with Hamere Kebede, Budget & Plan Process Owner, Addis Ababa Cleanliness Admin. Agency, Addis Ababa, Eth. (June 21, 2014 & Oct. 5, 2015); interview with Belaynesh Tegen, Lema Sema Private Solid Waste Collector, in Solid Waste Tax Focus Group Discussion, Addis Abba, Eth. (June 21, 2014). 95 AAWMCDR, supra note 22, at art. 21(7); AAEMSORP, supra note 39, at art. 55(13). 96 AAEMSORP, supra note 39, at art. 58(1); SWMP, supra note 22, at art. 14. 97 AAEMSORP, supra note 39, at arts. 58(2)–(7). 98 AAEMSORP, supra note 39, at arts. 58(3)–(6); Solid Waste Tax Focus Group Discussion with Nega Fantahun, General Manager, Addis Ababa Recycling and Disposal Project Office, Addis Ababa, Eth. (June 21, 2014); interview with Alemayehu Neme, Deputy Gen. Manager, City Admin. of Addis Ababa Solid Waste Recycling & Disposal Project Off. Addis Ababa, Eth. (Apr. 16, 2014 & Oct. 7, 2015). 99 M. Massoud & M. El-Fadel, Public-Private Partnerships for Solid Waste Management Services, 30 ENVTL. MGMT. 621, 621 (2002). 100 U.N. Conference on Environment & Development, Agenda 21, ¶ 27, U.N. Doc. A/CONF.151/26 (Vol. III) (June 1992) [hereinafter Agenda 21]; Daniela Parvu & Cristina Voicu-Olteanu, Advantages and Limitations of the Public–Private Partnerships and the Possibilities of Using them in Romania, 27E TRANSYLVANIAN REV. ADMIN. SCI. 189, GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 345 Environmental Tax System in Ethiopia Indivisible goods, whose benefits cannot be priced, and the principle of exclusion does not apply, are called “pure public goods.” In contrast, “pure private goods” are completely divisible and subject to the principle of exclusion.101 In reality, most goods possess both elements of “publicness” and “privateness.” Thus, it is rare to encounter goods that are purely public or purely private.102 Applying this reality to distinguish the nature of goods in the market, goods can be classified as “quasi-public” or “quasi-private.” For example, a quasi-public good is neither purely public nor purely private, but is predominately public in nature. Economists argue, and I agree, that the role of the state should be limited to regulating quasi-public goods; leaving the private sector to self-regulate quasi-public goods.103 Environmental governance must acknowledge the role of PPPs, and beyond the sole purpose of providing environmental infrastructure and services. Rather, PPPs should be viewed as arrangements where conscientious environmental norms are formulated and replicated.104 This approach requires the involvement of every level of government to create a framework where a variety of partnerships can develop and be effective.105 As explained below, Ethiopia is in a position to develop multilevel environmental governance strategies that encourage PPPs to participate in infrastructure service projects. For example, with public participation106 and a free market economy in mind,107 Ethiopia is 190–92 (2009); interview with Netsanet Raya, Chief Operation Officer, Kifya Fin. Tech. plc, Addis Ababa, Eth. (June 23, 2014); interview with Dawit Ayele, supra note 94; interview with Gemal Rashid, Deputy Gen. Manager Sewerage Disposal, Treatment & Reuse Core Process, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Apr. 2, 2014); interview with Nega Getahun, Legal & Insurance Director, Addis Ababa Water & Sewerage Authority Addis Ababa, Eth. (Mar. 25, 2014). 101 H.L. BHATIA, PUBLIC FINANCE 4 (19th ed. 1998); TOM TIETENBURG & LYNNE LEWIS, ENVIRONMENTAL AND NATURAL RESOURCE ECONOMICS 31 (9th ed. 2011). 102 BHATIA, supra note 101, at 7. 103 Id. at 8. 104 Tim Forsyth, Building Deliberate Public–Private Partnerships for Waste Management in Asia, 36 GEOFORUM 429, 429 (2005). 105 Van Dijk Meine Pieter & Tilay Mesfin, Micro-Privatization of Solid Waste Collection in Addis Ababa, 32 WATERLINES 154, 156 (2013). 106 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, art. 92(4); Rio Declaration, supra note 3, ¶ 10; EPE, supra note 22, §§ 2.2(h), 4.1(e), 4.2, 4.5(d), 5.2(a). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 346 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 committed to pursuing policies that expand public job opportunities for the unemployed.108 The country is also committed to a democratic developmental state ideology that calls for government to withdraw services that can be effectively provided by quasi-public markets.109 This strategy is also pervasive in the country’s economic development policy, which emphasizes a minimally intrusive and facilitative role for government.110 In effect, the government provides public goods only where they cannot be provided by the private sector.111 Thus, as exampled by these existing government strategies, Ethiopia may be well-positioned to engage with PPPs to provide quasi-public infrastructure and services. Currently, the AAA is exploring PPPs for waste management services. The AAA recognized the advantages of PPP-based waste management,112 and it is committed advancing a PPP policy in this sector by providing a time-restricted tax exemption from any profit and customs duties on imports, subsidized government landfills, long- term loans, and free land to participating sanitary service providers.113 At the moment, PPPs are only partly involved in solid waste collection, sludge dislodging, sludge cake management, Repi Waste Energy, and solid waste tax collection.114 107 See Trade and Practice Proclamation. Article 3, Proclamation No 329/2003, Negarit Gazetta, Year 9, No. 49; MINISTRY OF FIN. & ECON. DEV., GROWTH AND TRANSFORMATION PLAN OF ETHIOPIA: 2010/11-2014/15, at 64 (2010) [hereinafter GTPE I]. 108 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, arts. 41(6), 90; see GTPE I, supra note 107, at 83; NAT’L PLANNING COMM’N, GROWTH AND TRANSFORMATION PLAN II OF ETHIOPIA: 2015/16-2020/21 (2016) (discussing the potential for industries in Ethiopia to generate job opportunities). 109 ETHIOPIA PEOPLES’ REVOLUTIONARY DEMOCRATIC FRONT POLICY MANUAL (2011); interview with Dawit Ayele, supra note 94; Mehret Ayenew, The Growth and Transformation Plan: Opportunities, Challenges and Lessons, in REFLECTION ON DEVELOPMENT IN ETHIOPIA NEW TRENDS, SUSTAINABILITY AND CHALLENGES 7 (Dessalegn Rahmato, Meheret Ayenew & Asnake Kefale eds., 2014). 110 CSE III, supra note 78, § 4.2. 111 See NCS II, supra note 23, §§ 1.5, 3.6. 112 AAEMSORP, supra note 39, at arts. 58(2)–(7). 113 AAWMCDR, supra note 22, at art. 29(1)–(5). 114 Interview with Dawit Ayele, supra note 94. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 347 Environmental Tax System in Ethiopia E. Tax Administration Systems 1. Ethiopian Revenues and Customs Authority (ERCA) The Ethiopian Revenues and Customs Authority (ERCA) must introduce an equitable, efficient, and effective revenue assessment and collection system, while preventing tax fraud and evasion.115 Furthermore, it must support the goal of harmonizing federal and regional tax administration systems.116 To this end, the ERCA may also issue necessary directives117 and enter contracts and international agreements to comply with federal mandates.118 2. Addis Ababa Revenue Authority (AARA) The Addis Ababa Revenue Authority (AARA) is responsible for setting up an effective tax collection system, and undertaking studies that will inform its recommendation of new revenue sources. Once a new system has been identified, the AARA must also monitor its progress119 to mitigate tax avoidance, evasion, and other illegal activities.120 Intergovernmental communication and transparency regarding tax collection practices121 will be essential to the AARA’s ability to successfully execute agreements regarding tax administration.122 Moreover, the AARA must collect a sanitary service tariff rate with trade licenses and other taxes.123 The AAA may delegate any or all of the powers of the AARA to an appropriate federal government body.124 Accordingly, it has delegated125 its power to the ERCA,126 and the Addis Ababa Revenues 115 Ethiopia Revenues and Customs Authority Establishment Proclamation. Articles 5– 6 Proclamation No. 587/2008, Negarit Gazetta, Year 14, No. 44. 116 Id. at art. 5(5). 117 Id. at art. 20. 118 Id. at art. 6(16). 119 See AAEMSORP, supra note 39, at art. 13; AARAR, supra note 21, at arts. 8(1), 9(1)–(7). 120 AARAR, supra note 21, at art. 8(3). 121 Id. at art. 8(5). 122 Id. at art. 9(16). 123 RDCSSTAACG, supra note 90, at art. 9(1). 124 AAEMSORP, supra note 39, at art. 13(1). 125 The delegation is an extension of the Financial Administration and Revenue Reform Sub-Program and tax harmonization. Interview with Yirgalem Eshetu, supra note 28. 126 MEMORANDUM OF UNDERSTANDING BETWEEN ADDIS ABABA ADMINISTRATION AND ETHIOPIAN REVENUES AND CUSTOMS AUTHORITY (Sept. 2011) [hereinafter GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 348 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 and Customs Branches’ Support and Follow-up Directorate has been established as a liaison office between the AAA and the ERCA.127 While the ERCA runs the operations and the AAA covers the cost of liaison office operations, the Addis Ababa Bureau of Finance and Economic Development (AABFED) administers the revenue collected.128 II SOLID WASTE COLLECTION AND TRANSPORTATION As previously stated in this Article, public-private partnerships (PPPs) allow for public sector providers to transfer the issuance of goods and services, either wholly or partially, to the private sector.129 Specifically, PPPs provide an ideal opportunity for the public sector to utilize the advantages of private sector providers’ diversity of experience, project capacity, and accounting in completing quasi- public infrastructure projects.130 However, for PPPs to be effective, government at all levels must be involved in creating a framework that fosters collaboration.131 Below, several examples of ongoing or potential PPPs in the governance of solid waste management in Addis Ababa are explored. A. Municipal Solid Waste Collection Service Efficient municipal solid waste management132 requires regulations based on market standards from private services.133 The AAA is MUBAAAERCA]; interview with Belete Ahmed, supra note 28; interview with Yirgalem Eshetu, supra note 28; interview with Atkilt Gebrezgabiher, supra note 28. 127 Interview with Yirgalem Eshetu, supra note 28; interview with Atkilt Gebrezgabiher, supra note 28. 128 MUBAAAERCA, supra note 126; interview with Belete Ahmed, supra note 28; interview with Yirgalem Eshetu, supra note 28; interview with Atkilt Gebrezgabiher, supra note 28. 129 Massoud & El-Fadel, supra note 99. 130 Agenda 21, supra note 100; Daniela Parvu & Cristina Voicu-Olteanu, Advantages and Limitations of the Public–Private Partnerships and the Possibilities of Using them in Romania, 27E TRANSYLVANIAN REV. ADMIN. SCI. 189, 189 (2009), http://rtsa.ro/tras /index.php/tras/article/download/388/378 (last visited Apr. 15, 2018); interview with Netsanet Raya, supra note 100; interview with Dawit Ayele, supra note 94; interview with Gemal Rashid, supra note 100; interview with Nega Getahun, supra note 100. 131 Van Dijk Meine Pieter & Tilay Mesfin, Micro-Privatization of Solid Waste Collection in Addis Ababa, 32(2) WATERLINES 156 (2013). 132 SWMP, supra note 22, at art. 2(7) (defining solid waste management as “the collection, transportation, storage, recycling or disposal of solid waste, or subsequent use of a disposal site that is no longer”). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 349 Environmental Tax System in Ethiopia committed to creating conditions that allow for PPP-based134 solid waste collection, transportation, and disposing services.135 But, the AAA must also ensure that PPP-based service providers comply with existing environmental regulations. To ensure compliance, the AACAA has enacted regulations for solid waste service providers, regardless of their public- or private-sector status. For example, a person that transports waste to a transfer site or a disposing site with a vehicle must conform with the city-mandated vehicle, instrument, and service standard requirements, such as using vehicles that have the capacity to cover and hold the waste, taking due care not to cause environmental pollution,136 and posting the required notices of the type and nature when transporting hazardous waste.137 This last requirement for hazardous waste is explored further below. B. Hazardous Solid Waste Transport and Disposal Permit System Pursuant to the AAEPA’s delegation of hazardous waste management responsibilities by the MEFCCE, no person may transport or dispose of hazardous waste without obtaining authorization from the AAEPA.138 The AACAA is required to confirm the quality and classification of hazardous waste, and any person who generates hazardous waste must manage and dump it with due care.139 133 See Massoud & El-Fadel, supra note 99. 134 SWMP, supra note 22, at art. 4(1). 135 AAWMCDR, supra note 22, at art. 17(1); ADDIS ABABA CLEANLINESS ADMINISTRATION AGENCY SOLID WASTE MANAGEMENT POLICY § 6.2.2. (1996) [hereinafter AACAA SWMP]. 136 AAWMCDR, supra note 22, at arts. 8(1)(a)–(b), 18(1); SOLID WASTE COLLECTING CONTRACTUAL FORMAT OF ADDIS ABABA CLEANLINESS ADMINISTRATION AGENCY AND PRIVATE SOLID WASTE COLLECTING ORGANIZATIONS § 5.2.6 (2006) [hereinafter SWCCF AACAA PSWCO]; AACAA SSDS, supra note 92, at 12. 137 AAWMCDR, supra note 22, at art. 13(3)–(4); SWMP, supra note 22, at art. 13. 138 FPCP, supra note 22, at arts. 2(9), 4(1) (defining “Hazardous Waste”); AAWMCDR, supra note 22, at art. 13(4); Federal Democratic Republic of Ethiopia, Environmental Protection Authority, Letter to the Addis Ababa Environmental Protection Authority Ref. no. 8 1.1 1089, Date 25 02 2012 [hereinafter FDRE EPA L AAEPA]; Federal Democratic Republic of Ethiopia Environmental Protection Authority, Letter to the Ministry of Trade of Ethiopia, Ref. No. 8 1.1 2245, Date 08 08 2012 [hereinafter FDRE EPA L MTE]; AAEPCR, supra note 76, at art. 2(8). 139 AAWMCDR, supra note 22, at art. 13(3). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 350 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 In the AAA, an estimated two-to-four thousand tons of hazardous waste is generated per year.140 The hazardous waste must be sorted at its source, stored in specific conditions, and managed by private companies employed by the waste producers.141 In practice, two types of hazardous waste transport systems exist: overt hazardous solid waste transportation and disposal, and covert hazardous solid waste transportation and disposal. Overt hazardous solid waste transportation and disposal must obtain the proper permits from “concerned organizations.”142 After securing the appropriate permits, it is sealed and buried in the Repi Landfill.143 On the other hand, covert hazardous solid waste transportation and disposal is often not subject to any permit system.144 This is because what is transported and disposed of in the Repi Landfill is often a mix of both municipal and hazardous solid wastes.145 Thus, while there is a functioning permit system for overt hazardous solid waste transportation and disposal, there is not an accurate and enforceable permit system for covert waste. In the AAA, there are currently 610 household and zoning-based small solid waste collecting organizations that collect 1 m3 per 60 Ethiopian Birr (ETB).146 The schedule of the AAA instructs small solid waste collecting organizations to work two times a week in solid 140 AFDD/AACG SWMSIR, supra note 33, at 53. 141 Id. at 53, 105. 142 Group discussion with Nega Fantahun, supra note 98; interview with Alemayehu Neme, supra note 98; interview with Dawit Ayele, supra note 94. 143 Group discussion with Nega Fantahun, supra note 98; interview with Alemayehu Neme, supra note 98. 144 Interview with Dawit Ayele, supra note 94; interview with Tadele Demeko, Deputy General Manager, Addis Ababa Cleanliness Admin. Agency, Addis Ababa, Eth. (May 9, 2014 & Oct. 7, 2015); group discussion with Nega Fantahun, supra note 98; interview with Alemayehu Neme, supra note 98; interview with Ephrem Sisay, Landfill Officer, City Admin. of Addis Ababa Solid Waste Recycling & Disposal Project Off., Addis Ababa, Eth. (May 9, 2014). 145 AFDD/AACG SWMSIR, supra note 33, at 53; SIAKDSCRP, supra note 33, at 10; interview with Dawit Ayele, supra note 94. 146 MEMORANDUM OF UNDERSTANDING BETWEEN ADDIS ABABA CLEANLINESS ADMINISTRATION AGENCY AND ADDIS ABABA WATER AND SEWERAGE AUTHORITY (2011) [hereinafter MUBAACAAAAWSA]; ADDIS ABABA CLEANLINESS ADMINISTRATION AGENCY ANNUAL REPORT 7 (2015) [hereinafter AACAA AR 2015]; ADDIS ABABA CLEANLINESS ADMINISTRATION AGENCY, MICRO AND SMALL SOLID WASTE COLLECTING ORGANISATIONS ZONING AND SERVICE DELIVERY DIRECTIVE (2008) [hereinafter AACAA MSSWCOZSDD]; interview with Dawit Ayele, supra note 94; interview with Tadele Demeko, supra note 144; interview with Seifu Nasir, Res., Awareness, Contract & Legal Admin., Addis Ababa Cleanliness Admin. Agency, Addis Ababa, Eth. (Apr. 8, 2014 & Oct. 5, 2015). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 351 Environmental Tax System in Ethiopia waste collection. Collected solid waste is deposited in 8 m3 “skips” (solid waste containers) at transfer stations. Then, the AACAA’s vehicles transport the waste from the transfer stations to the Repi Landfill.147 According to the AACAA’s Annual 2015 Report, this system of solid waste collection operated at a 99.8 percent success rate in meeting its waste management plan targets for household- based solid waste collection.148 C. Private Organizations There are thirty private solid waste collection organizations that collect 1 m3 per 74 ETB.149 These organizations are contractually bound to collect municipal solid waste from customers (governmental and non-governmental organizations) and transport it to the Repi Landfill.150 As a condition of a permit, the private organizations are required to have at least one truck that picks up solid waste containers; or, alternatively, one trash compactor and one truck that picks up solid waste.151 At one point, some private organizations could use open truck solid waste collection because there were not enough waste collectors to meet demand. Currently, after complaints from the public and street sweepers, private waste collectors must now strictly conform to requirements, such as protective covering over solid waste when in transport.152 The AACAA 2015 report declared the projected household generated solid waste, and the actual amount collected in AAA153 matched nearly perfectly.154 Nevertheless, between sixty to sixty-five percent of the solid waste was disposed of in the Repi Landfill, and 147 SWMP, supra note 22, at art. 5(2); AACAA MSSWCOZSDD, supra note 146, at 3; AACAA SSDS, supra note 92, at 4–7; interview with Dawit Ayele, supra note 94; interview with Tadele Demeko, supra note 144. 148 AACAA AR 2015, supra note 146, at 22–29. 149 Interview with Seifu Nasir, supra note 146; interview with Tadele Demeko, supra note 144. 150 SWCCF AACAA PSWCO, supra note 136, §§ 5.2.5–5.2.6. 151 Id. § 5.2.1; AACAA SSDS, supra note 92, at 22. 152 Solid waste collecting organizations were given a grace period of six months before they needed to unconditionally conform to the requirements. Interview with Seifu Nasir, supra note 146. 153 AACAA AR 2015, supra note 146, at 4, 25. 154 Id. at 25. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 352 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 the remaining was dispersed in rivers and open fields.155 This discrepancy demonstrates that the solid waste collection service is a work in progress and, as recently as 2015, the service is working poorly. D Addis Ababa Administration Solid Waste Tax Collection System 1. Addis Ababa Cleanliness Administration Agency The AACAA is expected to, subject to permission from the Addis Ababa Bureau of Finance and Economic Development (AABFED), open a special bank account for the sanitary service charge.156 The AACAA may also delegate and endorse a memoranda of understanding with the institutions that collect sanitary service tariffs with water bills, trade licenses, and other taxes.157 The AACAA is expected to ensure that the collected tariff is deposited in its account periodically,158 arrange for the revenue to be utilized for sanitation objectives,159 and submit periodic reports of the sanitary service revenue, management, and utilization to the AABFED and other concerned bodies.160 Consequently, it has opened a special sanitary service tariff in the Commercial Bank of Ethiopia, and signed a memorandum of understanding with the Addis Ababa Water and Sewerage Authority (AAWSA).161 2. Addis Ababa Water and Sewerage Authority (AAWSA) The AAWSA collects the sanitary service tariff monthly from the city with the customer’s water bill.162 Subsequently, it must identify and summarize the collected sanitary service charge, and timely deposit it into the AACAA’s special sanitary service account.163 In effectuating its tariff collection system, the AAWSA must also work 155 AACAA SWMP, supra note 135, at 1; AFDD/AACG SWMSIR, supra note 33, at 1; see also Bjerkli, supra note 34, at 1277–78; Researcher’s Video Record-Based Observation of AAA (2016) (on file with author) EBS Television Broadcast Apr. 18, 2016 (confirming the dispersal of solid waste in rivers and open fields). 156 RDCSSTAACG, supra note 90, at art. 7(1). 157 Id. at arts. 7(2)–(3). 158 Id. at art. 7(4). 159 Id. at art. 7(6); see also id. at art. 3. 160 Id. at arts. 7(4)–(7). 161 Interview with Tadele Demeko, supra note 144; interview with Hamere Kebede, supra note 94; interview with Seifu Nasir, supra note 146. 162 RDCSSTAACG, supra note 90, at arts. 8(1)–(4). 163 Id. at art. 8(2). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 353 Environmental Tax System in Ethiopia in cooperation with the AACAA, and when necessary, endorse memorandums of understanding with the AACAA (and other concerned agencies) to ensure the efficient collection of the sanitary service tariff.164 Thus AACAA has endorsed a memorandum of understanding with the AAWSA for the latter to collect the sanitary service tariff on behalf of the AACAA.165 The AAWSA recently delegated the collection of the tariff to a PPP, model-based Kifya Financial Technology plc.,166 and the AACAA is racing to create a memorandum of understanding to solidify this agreement.167 This arrangement of delegation has resulted in an issue of accountability between the AAWSA and the AACAA. That is, the AAWSA has not been computing the sanitary revenue strictly in-line with the sanitary tariff rate.168 In 2015, the AAWSA deposited only forty percent of the monthly sanitary service tariff in the special bank account of the AACAA, which is estimated to be 151,002,460 ETB.169 Thus, even though the AAWSA is collecting the sanitary service tariff, it is not depositing the exact amount at the right time. This presents a challenge in accountability in delegating service tariff collections to public or private entities. 3. Addis Ababa Revenue Authority There are two other government organizations authorized by the AACAA to collect the sanitary service tariff, the Addis Ababa Revenue Authority (AARA) and the Addis Ababa Bureau of Trade and Industry Development (AABTID).170 The AARA must collect sanitary service tariffs with trade licenses, deposit the tariffs in AACAA’s special bank account, and report the amount to the AABFED, as authorized under a 2009 Addis Ababa city 164 Id. at art. 8(5). 165 MUBAAAERCA, supra note 126; interview with Tadele Demeko, supra note 144; interview with Seifu Nasir, supra note 146. 166 Interview with Netsanet Raya, supra note 100. 167 Interview with Tadele Demeko, supra note 144; interview with Seifu Nasir, supra note 146; interview with Hamere Kebede, supra note 94. 168 Interview with Tadele Demeko, supra note 144; interview with Hamere Kebede, supra note 94; interview with Seifu Nasir, supra note 146. 169 MUBAACAAAAWSA, supra note 146; AACAA AR 2015, supra note 146, at 29; interview with Gemal Rashid, supra note 100; interview with Tadele Demeko, supra note 144; interview with Hamere Kebede, supra note 94; interview with Seifu Nasir, supra note 146. 170 RDCSSTAACG, supra note 90, at art. 9(3). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 354 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 proclamation.171 Currently, the AARA has delegated its responsibilities under the proclamation’s mandate to the Ethiopian Revenues and Customs Authority (ERCA), and the ERCA has started collecting the environmental related charges.172 Here, as seen with the AACAA’s challenge of accountability with the AAWSA, the AARA and ERCA are failing to properly track the tariffs from collection to deposit in the AACAA’s account. For example, from 2011 to 2014, the AARA collected the following sanitary service charges:173 23,640,144.53 ETB in 2011; 46,757,124.29 ETB in 2012; 50,182,617.96 ETB in 2013; and, 43,409,699.69 ETB in 2015.174 However, neither the AARA nor the ERCA earmarked the deposited sanitary service tariff collected in the AACAA special bank account.175 Without proper documentation, there is no way to ensure that the funds generated by the tariffs are making it to the AACAA, or otherwise being sued for their appropriated purposes. 4. Addis Ababa Bureau of Trade and Industry Development (AABTID) The AABTID administers the commercial registry and issues, renews, suspends, and has the authority to cancel licenses for business organizations.176 It must also, subject to the endorsement of a memorandum of understanding with the AACAA,177 collect the sanitary service charge of the city based on the registration and renewal of trade licenses, and then deposit those charges in the special bank account of the AACAA.178 Nevertheless, the AABTID is neither earmarking nor depositing the solid waste charge collected in the special bank account of the AACAA.179 171 Id. at arts. 9(1)–(2). 172 MUBAAAERCA, supra note 126. 173 Addis Ababa Micro Tax Payers Sub-Cities Branches (2011-2014) [hereinafter Sanitary Service Spreadsheet]; interview with Hamere Kebede, supra note 94. 174 Sanitary Service Spreadsheet, supra note 173 (see the sanitary service charge of 11 months of 2014). 175 The AARA deposits the solid waste charge collected in the central treasury. Interview with Atkilt Gebrezgabiher, supra note 28; interview with Belete Ahmed, supra note 28; interview with Tadele Demeko, supra note 144; interview with Hamere Kebede, supra note 94. 176 AAEMSORP, supra note 39, at art. 21(2)(d). 177 RDCSSTAACG, supra note 90, at art. 10(3). 178 Id. at arts. 10(1)–(2). 179 Interview with Tadele Demeko, supra note 144; interview with Hamere Kebede, supra note 94. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 355 Environmental Tax System in Ethiopia Previous research suggests that since multiple public and private organizations are tasked with collecting tariffs and fees for sanitary services,180 the system is only partially effective.181 However, based on the findings of this Article, it is clear that the organizations failure to properly track and account for the collected money is largely due to the lack of effective administration by the governing agency, the AACAA. III LANDFILL TAXES AND SERVICES A. Existing Landfill Service: Repi Landfill One potential solution to control landfill spillover in AAA’s emerging regulatory environment is a landfill tax. This tax could be levied by weight, volume, or toxicity of contaminants, and the revenue could be used to maintain an ecologically sound waste management system in the city. AAA’s primary landfill, the Repi Landfill, and a newer landfill and related transfer stations, are under construction. In Ethiopia, each urban administration shall, in conformity with federal environmental standards, ensure that solid waste disposal sites are adequately constructed and properly used.182 Each administration must ensure, subject to environmental auditing,183 that all new solid waste disposal site construction and modification has undertaken an Environmental Impact Assessment (EIA).184 The Repi Landfill is under the ownership and administration of the Addis Ababa Solid Waste Re-use and Disposal Project Office (AASWRDPO).185 It is thirty-six hectares in size and is in the southwestern part of AAA’s jurisdiction, in Nifas-Silk-Lafto Kifile ketema. It is the first landfill in Addis Abba, and it has been in use since 1968.186 Although it is supposed to use a weighbridge to weigh 180 Gebregiorgs, supra note 2, at 25; Gebregiorgs, supra note 19, at 26–29, 41. 181 Each sector is expected to notify AABFED of its revenue sources, which are to be automatically earmarked from the retained revenue. Interview with Yirgalem Eshetu, supra note 28. AACAA has started to give notification to all concerned organs. Interview with Tadele Demeko, supra note 144. 182 SWMP, supra note 22, at art. 14(1). 183 Id. at art. 14(3). 184 Id. 185 Interview with Alemayehu Neme, supra note 98. 186 SIAKDSCRP, supra note 33, at 9–11. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 356 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 incoming waste between the transfer stations and disposal site, due to technical problems with its weighbridge the solid waste weight is currently measured based on volume, which does not guarantee accuracy.187 The Repi Landfill is generating pollution. It is a substandard, open air, saturated dump without any effluent treatment or drainage system.188 Also, since it does not separate municipal and hazardous waste, these wastes are comingled in their disposal.189 Even though the waste is supposed to be spread, compacted, and covered with soil, the present method of waste disposal is crude, open-dumping: hauling the wastes by truck, spreading and levelling by bulldozer, and compacting by compactor and bulldozer.190 There is no daily covering with soil, no leachate containment or treatment, no rainwater drain- off, no odor or vector control, no liners, and no gas ventilation.191 Since the proper treatment for the waste is not followed at the Repi Landfill, it is nearly impossible to control its spill-over.192 In part, because of these pollution problems, the AAA is closing and reclaiming the Repi Landfill.193 At the time of this writing, nineteen hectares of the landfill closed, seven hectares have been given to Cambridge Industries Ltd. Repi Waste Energy, two hectares were allotted to Repi Transfer station, and the remaining eight hectares will be closed soon.194 Moreover, since AAA installed a landfill gas extraction and burning system that generates bio-gas- based energy, the landfill has reduced twenty-five to thirty percent of 187 AAEMSORP, supra note 39, at arts. 58(2), -(4), -(7); interview with Alemayehu Neme, supra note 98; interview with Ephrem Sisay, supra note 144. 188 Rio+20, supra note 33, at 64; SIAKDSCRP, supra note 33, at 4–10; interview with Alemayehu Neme, supra note 98; interview with Ephrem Sisay, supra note 144; Researcher’s Video Record-Based Observation of Repi Landfill, Addis Ababa, Ethiopia (Apr. 16, 2014) (on file with author). 189 SIAKDSCRP, supra note 33, at 10; interview with Alemayehu Neme, supra note 98; interview with Ephrem Sisay, supra note 144; group discussion with Nega Fantahun, supra note 98; interview with Dawit Ayele, supra note 94; interview with Tadele Demeko, supra note 144. 190 Interview with Ephrem Sisay, supra note 144; SIAKDSCRP, supra note 33, at 10. 191 Interview with Ephrem Sisay, supra note 144; SIAKDSCRP, supra note 33, at 10. 192 Interview with Ephrem Sisay, supra note 144; SIAKDSCRP, supra note 33, at 10. 193 Interview with Alemayehu Neme, supra note 98; SIAKDSCRP, supra note 33, at 5, 47. 194 Interview with Alemayehu Neme, supra note 98; SIAKDSCRP, supra note 33, at 5, 47. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 357 Environmental Tax System in Ethiopia its carbon emission.195 This gas extraction, burning, and generation of bio-gas energy has fulfilled the validity, certification, and verification stages of the Clean Development Mechanism-based carbon trading registration of the UNFCCC; and the landfill will, in due course, provide carbon credit.196 B. Upcoming Landfill and Transfer Stations Subject to EIA study approval by the MEFCCE, the AAA is constructing the Sendafa Landfill with five different solid waste cells, along with the Repi, Akaki, and Bole Arabsa Transfer Stations.197 The Sendafa Landfill is a 136 hectare modern landfill with a twenty-year use period198 that may be prolonged through the AASWRDPO’s Reduce, Reuse, Recycle, and Recover strategy.199 Since the AAA is within the state of Oromia, which has a special interest in its social services,200 the Sendafa landfill and feeder transfer stations will provide service to eight special zones in the state.201 While the existing solid waste treatment and disposal is environmentally unfriendly, this upcoming landfill and the transfer stations are promising. Another alternative to ameliorate pollution from solid waste would be private landfill services. Currently, there are no private landfills in AAA’s jurisdiction. The opportunity for PPPs in expanding landfill services may be a viable option for the AAA to pursue. In effect, 195 The gas extraction and burning system includes gas monitoring technology that records carbon emissions from the process. COMMUNICATION AFFAIRS BUREAU OF ADDIS ABABA ADMIN., ANNUAL BOOK 150 (2014). 196 Id.; group discussion with Nega Fantahun, supra note 98; interview with Alemayehu Neme, supra note 98. Some 25%–30% of carbon emissions are reduced when organic solid waste (methane) is burned and bio-gas-based energy is generated than when it is directly released into the atmosphere. Interview with Tedros Abrha Weldemichael, Chemist, Sheba Leather Factory Production Manager, Mekelle, Eth. (Apr. 9, 2016). 197 Group discussion with Nega Fantahun, supra note 98; interview with Alemayehu Neme, supra note 98; interview with Getachew Belachew, Envtl. Impact Assessment Version Officer, Addis Ababa City Gov. Envtl Protection Authority, Addis Ababa, Eth. (Dec. 28, 2015); interview with Muhammed Ibrahim, Vice Head & Envtl. Protection Core Process Leader, Oromia Rural Land & Envtl. Protection Bureau, Addis Ababa, Eth. (June 27, 2014). 198 Interview with Ephrem Sisay, supra note 144; interview with Alemayehu Neme, supra note 98. 199 Interview with Alemayehu Neme, supra note 98. 200 FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA CONSTITUTION, proclamation 1/1995, art. 49 (5). 201 Interview with Alemayehu Neme, supra note 98. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 358 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 public landfill services may, through different participatory or transferring methods, be sold to private investors.202 As for landfill taxes, private solid waste collecting organizations deposit a 4 ETB per 1 m3 landfill charge directly in the Commercial Bank of Ethiopia.203 This depositing structure could make the administration of landfill taxes in the future more feasible. IV SEWAGE SLUDGE, SEWER, AND SLUDGE CAKE MANAGEMENT A. Septic Tank and Latrine Sewage Sludge Dislodging Services Sewage from septic tanks and latrines continue to pollute groundwater in AAA, and the patchwork of public and private sludge services creates a situation where many household’s sludge is not pumped out in a timely manner. Most liquid waste in AAA is handled by a PPP-based sludge dislodging service.204 Sludge collected from septic tanks or latrines must be capable of being pumped,205 and the maximum accessible distance between the cesspool and the vacuum truck must not be more than forty meters.206 The AAWSA has a special mandate that allows sludge dislodging charges for the use of sludge using vacuum trucks.207 Previously, the AAWSA delivered sludge dislodging services to households for 176 ETB and 500 ETB for institutions per trip. Now, while it provides highly subsidized sludge dislodging service to households, it has handed over sludge dislodging services for institutions to private partners.208 And while there is technically a feasible sewer service 202 AAWMCDR, supra note 22, at art. 17(1). 203 The bank account number is posted in the compound of AACAA. Group discussion with Nega Fantahun, supra note 98; interview with Alemayehu Neme, supra note 98; interview with Dawit Ayele, supra note 94; interview with Tadele Demeko, supra note 144. 204 Interview with Gemal Rashid, supra note 100; interview with Nega Getahun, supra note 100; interview with Solomon Tafese, Addis Ababa Akaki-Kaliti Sub-City Water & Sewerage Manager, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (June 17, 2014). 205 The Addis Ababa Water Supply and Sewerage Disposal Services Regulations. Article 39(1)(b), Proclamation No. 5/1995 (Repealing) Regulations, No. 31/2002, Neg. Gaz., Year 5, No. 1 [hereinafter AAWSSDSRRR]. 206 Id. at art. 39(1)(a). 207 AAWSARP, supra note 89, at art. 16(2)(a); AAWSSDSRRR, supra note 205, at art. 39(1). 208 Interview with Gemal Rashid, supra note 100; interview with Nega Getahun, supra note 100; interview with Gemila Mohammed, Waste Water Treatment and Re-use Process GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 359 Environmental Tax System in Ethiopia provision available to households, the AAWSA does not provide sludge dislodging services for them.209 The eligible customers of AAWSA are getting sludge dislodging service within one to four days.210 When AAWSA faces an extra demand for its sludge dislodging service, it bargains with its private partners. For instance, in 2014 it collected 176 ETB from its customers and outsourced the extra-load to private sludge dislodging service providers at a peak rate of 600 ETB per trip.211 The AAWSA may invite, encourage, license, and supervise private investors to participate in the vacuum trucks dislodging service,212 and its board determines the conditions to be followed in a PPP agreement of service.213 Subject to environmentally conscious contracts with the AAWSA, private sludge dislodging service providers committed to using the waste water treatment plants of the AAWSA are emerging.214 On average, each private sludge-dislodging car services septic tanks or latrines four times a day.215 The private service’s sludge dislodging service fee is based on the distance (kilometers) to and Owner, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Jan. 4, 2016); interview with Nuri Muhammed, Waste Water Treatment Case Manager, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth., (Apr. 3, 2014 & Dec. 25, 2015); interview with Tadese Eshete, Kaliti Waste Water Treatment Plant Supervisor, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Mar. 28, 2014); interview with Tilahun Yimer, Kotebe Waste Water Treatment Plant Deputy Case Manager, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Dec. 25, 2015); interview with Solomon Tafese, supra note 204. 209 Addis Ababa Water & Sewerage Authority, Sewer Service Delivery Contract Format § 1.3 [hereinafter AAWSA SSDCF]; interview with Andargachew Getachew, supra note 78. 210 Previously, sludge dislodging service customers were subjected to a much longer waiting period. Addis Ababa Water and Sewerage Authority, Waste Water Treatment and Reuse Sub-Process Annual Report (2015) at 2 [hereinafter AAWSA WWTRSP AR]; interview with Gemila Mohammed, supra note 208; interview with Nuri Muhammed, supra note 208; interview with Tilahun Yimer, supra note 208. 211 Effluent Tax Focus Group Discussion, Addis Ababa Eth. (June 28, 2014); interview with Nega Getahun, supra note 100; interview with Solomon Tafese, supra note 204. 212 AAWSARP, supra note 89, at art. 16(2)(b). 213 AAWSSDSRRR, supra note 205, at art. 39(2); AAWMCDR, supra note 22, at art. 20(3). 214 Addis Ababa Water & Sewerage Authority, Private Sludge Dislodging Service Provision Contract Format [hereinafter AAWSA PSDSPCF]; interview with Gemila Mohammed, supra note 208. 215 Interview with Gemila Mohammed, supra note 208. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 360 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 from the service site, and is calculated with the prevailing market rate. On average, the charge for each trip for both households and institutions is between 800 and 1,500 ETB.216 Since septic pump-out trucks do not access all areas within the AAA’s jurisdiction, to service new high-volume customers, sewage from septic tanks and latrines continue to pollute groundwater.217 Thus, there is only a partially effective PPP-based sludge dislodging service since the PPP fails to provide affordable service in the entire AAA jurisdictional area. The AAWSA has eight sludge dislodging service payment branches to facilitate the sludge dislodging charge,218 and its customers register and pay a cash receipt service charge that is voucher-based at their respective branch.219 Also, adhering to contract law,220 the payment for the sludge dislodging service charge is taken simultaneously with the service. B. Sewer Service221 The AAWSA has a special mandate for sewerage system use.222 Any person (from households to industries) who wants to use the sewer system must conform to federal effluent standards and get a license from the AAWSA.223 The AAWSA facilitates the issuance of sewer permits in its eight branches, a service that is subject to contractual agreement and annual renewal.224 Upon an applicant’s receipt of a sewer system license, the AAWSA initiates sewer installation within three meters of the boundary of the applicant.225 216 Interview with Gemal Rashid, supra note 100; interview with Nega Getahun, supra note 100; interview with Solomon Tafese, supra note 204. 217 ESIA WWTPSLER KC, supra note 33, at xii, 260. 218 AAWSSDSRRR, supra note 205; Gebregiorgs, supra note 2, at 33; Gebregiorgs, supra note 19, at 32–41. 219 Interview with Gemila Mohammed, supra note 208. 220 Civil Code of the Empire of Ethiopia Proclamation. Art. 2278, Proclamation No. 165/1960, Negarit Gazetta, Year 19, No. 2. 221 See the definition of “sewerage service” in AAWSARP, supra note 89, at art. 2(21) (“Sewerage Service” means the collection, treatment, and disposal of waste water and sewage). 222 Id. at art. 16(1). 223 AAEPCR, supra note 76, at arts.7(1)–(2); interview with Zelalem Ketema, Sewer System Monitoring Case Manager, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Jan. 4, 2016); interview with Andargachew Getachew, supra note 78. 224 AAWSA SSDCF, supra note 209, at 10. 225 AAWSSDSRRR, supra note 205, at arts. 27(1)–28(1); AAWSA SSDCF, supra note 209, §§ 1.1–2.2; interview with Gemila Mohammed, supra note 208; interview with Zelalem Ketema, supra note 223; interview with Tadese Eshete, supra note 208. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 361 Environmental Tax System in Ethiopia The applicant is responsible for constructing waste water facilities and pre-treatment facilities (e.g., conveyance and bulk waste catchment structures).226 Then the water facilities and sewer line227 are installed and connected—either where the authority compels the proprietor, or at his or her request.228 The cost for the construction and installation of the waste water facilities, within the property line up to the public sewer system, is covered by the proprietor.229 Unless the AAWSA permits otherwise, the connection to the public sewerage system shall be installed by its own crew.230 Subject to the Waste Water Discharge Standard, the AAWSA shall determine the volume of the waste water discharged into the sewerage system.231 Since its waste water treatment plants are dependent on natural processes, the AAWSA issues permits to industries only if their effluent physicochemical properties conform to the Federal Effluent Standard of Ethiopia.232 Despite the presence of an operating sewer use permit system, there are still some uncontrolled and illegal connections of sewage to sewer lines.233 Even so, the existence of the sewer use permit system is functioning and able to be utilized by those who wish to conform to the law. In AAA, there are the Kaliti, Akaki and Eastern Sewage Catchments; and, except for a few condominium sewer packages, the centralized sewer systems are available only in the Kaliti 226 AAWSSDSRRR, supra note 205, at arts. 27(3), 28(2), 31; AAWSA SSDCF, supra note 209, § 2.3; AAWSARP, supra note 89, at art. 2(24) (“Waste Water Facility” means any public or private arrangement, works, structure, appliance or equipment which is made, constructed, installed, or used for the removal, storage, transportation, treatment, disposal, or discharge of any waste water). 227 AAWSARP, supra note 89, at art. 2(19) (“Sewer line” means a series of sewers, including the manhole, if any, along the sewer). 228 AAWSSDSRRR, supra note 205, at arts. 26–28(3); AAWSA SSDCF, supra note 209, § 1.3. 229 AAWSSDSRRR, supra note 205, at art. 28(2); AAWSA SSDCF, supra note 209, § 1.2. 230 AAWSSDSRRR, supra note 205, at art. 29; AAWSA SSDCF, supra note 209, §§ 3.1–3.3. 231 AAWSSDSRRR, supra note 205, at arts. 32–33. 232 Effluent Tax Focus Group Discussion, supra note 211; interview with Gemal Rashid, supra note 100; interview with Tadese Eshete, supra note 208; interview with Nega Getahun, supra note 100; interview with Nuri Muhammed, supra note 208; interview with Tilahun Yimer, supra note 208; interview with Zelalem Ketema, supra note 223. 233 ESIA WWTPSLER KC, supra note 33, at xii. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 362 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 Catchment.234 The sewer service is limited to municipal waste that encompasses toilet, shower, and kitchen waste water.235 Solid materials, oil, petrol, sludge cake, and rain water are strictly prohibited.236 The sewer service in the AAA, which operates on slope- based gravitation, accounts for only ten percent of the total necessary sewer coverage. Because of the high volume of sewage waste, it is vulnerable to ruptures.237 Thus, the high volume of sewage waste, and susceptibility to ruptures creates insufficient sewer service in the Kaliti Catchment. AAWSA sewer customers must pay sewer service fees either by aggregating the cost of service and connection charges in a block payment; or by paying through a six month’s voucher-based payment of a nominal sewer connection charge.238 The sewer service charge has not fully internalized the external costs of operating the sewer service, such as environmental contamination from sewer rupture.239 C. Sewer and Sludge-Based Waste Water Treatment and Disposal 1. Existing Waste Water Treatment and Disposal The main objective of the AAWSA Waste Water Treatment and Re-use Sub-Process (WWT RUSP) is the treatment and disposal of 234 Effluent Tax Focus Group Discussion, supra note 211; interview with Nuri Muhammed, supra note 208; interview with Tadese Eshete, supra note 208; interview with Tesfalem Yifa, Sewerage Dep’t: Construction Supervision & Contract Admin. Team Leader, Water, Sanitation Rehabilitation & Dev Project Off. of Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Mar. 22, 2016). 235 Interview with Gemila Mohammed, supra note 208. 236 AAWSA SSDCF, supra note 209, §§ 2.1, 7.4; AAEPCR, supra note 76, at art. 7; interview with Nuri Muhammed, supra note 208; interview with Tadese Eshete, supra note 208; interview with Zelalem Ketema, supra note 223; interview with Solomon Tafese, supra note 204; interview with Andargachew Getachew, supra note 78. 237 Effluent Tax Focus Group Discussion, supra note 211; ESIA WWTPSLER KC, supra note 33, at 160; interview with Gemal Rashid, supra note 100; interview with Tesfaye Werede, Supervisor of Sewerage System, Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Apr. 3, 2014); interview with Tesfaw Ashagrie, Water Supply & Sanitation Directorate: Envtl. Specialist & Team Leader, Ministry of Water, Irrigation & Electricity of Ethiopia, Addis Ababa, Eth. (June 19, 2014); interview with Zelalem Ketema, supra note 223. 238 On average the sewer connection charge is 3,000 to 4,000 ETB. Effluent Tax Focus Group Discussion, supra note 211; interview with Gemal Rashid, supra note 100; interview with Tesfaye Werede, supra note 237; interview with Tesfaw Ashagrie, supra note 237; interview with Zelalem Ketema, supra note 223; interview with Tadese Eshete, supra note 208. 239 AAWSSDSRRR, supra note 205; AAWSA SSDCF, supra note 209, § 5; Gebregiorgs, supra note 2, at 31; Gebregiorgs, supra note 19, at 32–40. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 363 Environmental Tax System in Ethiopia sewer waste, sludge-based waste water, and sludge cake.240 At the time of this writing, the AAA is working to expand waste water treatment services by planning and constructing gravitation, primary, and secondary biological-based241 treatment plants in Kaliti, Kotebe, Gelan, Mikililand, Ayat Gerji, Bole Homes, and Chefe.242 The existing waste water treatment and disposal structures in the sub-cities of Kaliti, Kotebe, Gelan, Mikililand, Ayat Gerji, and Bole Homes are described in detail, below. Each day an average of 16,020 to 19,020 m3 of sewer system-based waste water and 19,000 m3 of sludge dislodging-based waste water is treated and disposed of in the natural stabilization pond system of the Kaliti and Kotebe Waste Water Treatment Plants.243 The Kaliti Waste Water Treatment and Re-use Sub-Process (WWT RUSP) is a lagoon treatment system built in the late 1970s. The system consists of inlet screens and grit chambers, two settling chambers, two rectangular pond systems, slant parallel pond systems, and eight drying beds.244 The system treats and disposes of sludge and sewer-based waste water, subject to manual intake measurement.245 Even though it is currently operating beyond its design capacity, the system is not able to satisfy the needs of the city.246 Sewage enters into the Kaliti WWT RUSP by a gravity sanitary sewer piping system.247 It is first subject to preliminary screening and 240 AAWSA WWTRSP AR, supra note 210, at 1; interview with Gemal Rashid, supra note 100; interview with Nuri Muhammed, supra note 208; interview with Tadese Eshete, supra note 208; interview with Tilahun Yimer, supra note 208 (stating that waste water constitutes 90% of the sludge transported to the waste water treatment plants). 241 AAWSA WWTRSP AR, supra note 210, at 1; interview with Nuri Muhammed, supra note 208; interview with Tilahun Yimer, supra note 208. It is important to note that they have neither tertiary nor chemical treatment schemes. 242 AAWSA WWTRSP AR, supra note 210, at 1. 243 Id.; interview with Gemal Rashid, supra note 100; interview with Gemila Mohammed, supra note 208; interview with Nuri Muhammed, supra note 208; interview with Tadese Eshete, supra note 208. 244 ESIA WWTPSLER KC, supra note 33, at 24–26. 245 At the time of this writing, the flow meter of the Kaliti WWT RUSP lagoon was not operating. Interview with Tadese Eshete, supra note 208; interview with Getachew Demeke, Kaliti Waste Water Treatment Plant Biologist, Addis Ababa Water and Sewerage Authority, Addis Ababa, Eth. (Mar. 28, 2014); interview with Tesfalem Yifa, supra note 234. 246 ESIA WWTPSLER KC, supra note 33, at xii, 24; AAWSA WWTRSP AR, supra note 210; interview with Tadese Eshete, supra note 208; interview with Nuri Muhammed, supra note 208; interview with Getachew Demeke, supra note 245. 247 ESIA WWTPSLER KC, supra note 33, at 25. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 364 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 sedimentation. The sewage then flows to the distributing cell which moves the waste water into parallel “A” and “B” stabilization and oxidation ponds.248 The treatment steps are displacement-based.249 At the maximum flow rate, following thirty days of hydraulic retention time in the stabilization ponds, the treated waste water that resides in A4 and B4 maturation ponds250 is released to the redistributing and screw pump. While there, physical, chemical, and biological laboratory tests are undertaken. Later, if the treated waste conforms to environmental standards, it is directly discharged to Small Akaki River. If the waste water does not conform to environmental standards, it is sucked back against gravity to the stabilization ponds for retreatment.251 In addition to the Kaliti Waste-Water Treatment Plant Environmental Laboratory Center’s regular appraisal, the AAEPA has the duty to sample the waste water. The waste water samples then undergo environmental standard-based laboratory evaluation and monitoring.252 In practice, since the AAWSA does not have a full- fledged laboratory, a sample must be taken from each waste water treatment plant and tested in the AAEPA’s laboratory.253 Despite the AAWSA’s recent plan to test ninety biological and physicochemical parameters, the AAWSA could only test sixty-six waste water samples.254 Consequently, the AAWSA’s poor performance in this sample-based test of waste water treatment has seriously affected the waste water treatment performance.255 The thirty-day detention period was designed to process 7,500 m3 per day capacity, but its current intake is about 10,000 m3 per day.256 248 ESIA WWTPSLER KC, supra note 33, at 28, tbl.3.3; interview with Getachew Demeke, supra note 245. 249 Interview with Getachew Demeke, supra note 245. 250 See ESIA WWTPSLER KC, supra note 33, at 26; interview with Getachew Demeke, supra note 245; interview with Tsigereda Tafese, Kaliti Waste Water Treatment Plant Chemist, Addis Ababa Water and Sewerage Authority, Addis Ababa, Eth. (Mar. 28, 2014). 251 See ESIA WWTPSLER KC, supra note 33, at 26; interview with Tsigereda Tafese, supra note 250. 252 Interview with Getachew Demeke, supra note 245; interview with Tsigereda Tafese, supra note 250. 253 AAWSA WWTRSP AR, supra note 210, at 5–7. 254 Id. at 2. 255 Id. at 5–7. 256 Interview with Getachew Demeke, supra note 245; interview with Tesfalem Yifa, supra note 234. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 365 Environmental Tax System in Ethiopia This discrepancy between designed-for and actual sewage at the Kaliti WWT RUSP diminishes the plant’s proper functioning,257 which increases the risk of premature discharge of waste water into the river. Similar to the Kaliti WWT RUSP, the natural stabilization and lab evaluation process are utilized at the Kotebe WWT RUSP. The Kotebe WWT RUSP was established in 2000.258 It treats 2,000 m3 of waste water per day and disposes of it in the Great Akaki River.259 The WWT RUSP plant operations at Gelan, Mikililand, Ayat, Gerji, and Bole Homes WWT RUSP face similar issues with premature waste water discharge as the Kaliti and Kotebe plants. Each plant discharges treated (and under-treated) waste in the Akaki River.260 The AAWSA’s 2015 Waste Water Treatment and Re-use Sub-Process Annual Report, revealed the underperformance of the waste water treatment and disposal plants.261 The underperformance of these plants was identified by the AAWSA to be resultant to capacity issues with the natural pond treatment and disposal processes. Specifically, while the waste water that joins Kaliti, Gerji, and Kotebe is above their respective operational capacities, the waste water that joins Mikililand, Gelan and Ayat is below their potential capacities.262 Thus, the inability of the sewer and sludge dislodging system to capture the expected amount of waste water appears to be the primary reason why the waste water treatment and disposal plants are underperforming.263 257 ESIA WWTPSLER KC, supra note 33, at 18 (reporting that waste water escapes from broken sewer pipes and into streams at various locations). 258 Interview with Nuri Muhammed, supra note 208; interview with Tilahun Yimer, supra note 208. 259 AAWSA WWTRSP AR, supra note 210, at 1; interview with Nuri Muhammed, supra note 208; interview with Tilahun Yimer, supra note 208; Video Recording: Researcher’s Video Record-Based Observation of Kotebe Waste Water Treatment Plant, Addis Ababa, Eth. (Dec. 25, 2015) (on file with author). 260 Gelan, Mikililand, Ayat, Gerji, and Bole Homes WWT RUSP treat 3000, 750, 1000, 1500, and 400 m3 of sewer-based waste water, respectively, per day. AAWSA WWTRSP AR, supra note 210; interview with Nuri Muhammed, supra note 208; interview with Tadese Eshete, supra note 208; interview with Tilahun Yimer, supra note 208. 261 AAWSA WWTRSP AR, supra note 210, at 1. 262 Id. at 1. 263 Id. at 7. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 366 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 2. Waste Water Treatment and Reuse Sub-Processes Under Construction The AAA is currently developing a short-term solution for higher density residential areas that lack access to sewer systems serviced by waste water treatment plants. This solution consists of installing decentralized waste water treatment packages for condominiums in areas lacking mainline sewer connection. The decentralized system can be used until condominium developments are connected to main sewer lines, at which time the temporary system will be dismantled and reinstalled in another area lacking access to a sewer system.264 Another AAA project is the construction of new, and improvement of existing, wastewater treatment systems throughout the city. These projects are organized by phases of implementation and completion. First, the Chefe and Koyifechi WWT RUSP plants are in their final stages of construction, and have waste water treatment capacities of 12,500 and 27,000 m3 per day, respectively.265 Next, the commencement of the Kaliti Waste Water Treatment Plant Expansion and Rehabilitation as well as the Sewer Lines Expansion of Kaliti Sewage Catchment began in 2012.266 The AAA has planned two phases of completion for the Kaliti project, which is expected to run through 2030. To achieve the Kaliti project, the AAA is committed to developing centralized and integrated sewer collection systems, and water treatment plants with an upflow anaerobic sludge blanket reactor based on high-rate trickling filtration systems.267 With the first phase of the Kaliti project underway, the AAWSA began a $100,000 project to renovate and enlarge the Kaliti WWT RUSP from 7,600 to 100,000 m3 per day.268 The AAWSA’s Kaliti plant expansion project is expected to increase the AAA’s sewer 264 Interview with Tesfalem Yifa, supra note 234. 265 AAWSA WWTRSP AR, supra note 210; interview with Nuri Muhammed, supra note 208; interview with Gululat Teshome, Envtl. Team Leader, Water, Sanitation Rehabilitation & Dev. Project Off. of Addis Ababa Water & Sewerage Authority, Addis Ababa, Eth. (Mar. 21, 2016). Chefe WWT RUSP is accompanied by a twenty-two km sewer line development. Interview with Tesfalem Yifa, supra note 234. 266 ESIA WWTPSLER KC, supra note 33, at 17; interview with Tesfalem Yifa, supra note 234. 267 ESIA WWTPSLER KC, supra note 33, at 28–31, 160; interview with Tesfalem Yifa, supra note 237. It is electromechanical. 268 Interview with Gemal Rashid, supra note 100; interview with Tesfalem Yifa, supra note 234; interview with Gemila Mohammed, supra note 208; interview with Nuri Muhammed, supra note 208; interview with Getachew Demeke, supra note 245; Effluent Tax Focus Group Discussion, supra note 211. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 367 Environmental Tax System in Ethiopia service area from only reaching ten percent of residents in the Kaliti service area to sixty percent. 269 In the second phase, a duplicate of the improved Kaliti WWT RUSP will be constructed adjacent to the Kaliti plant. This additional plant is projected to add 100,000 m3 of waste water processing.270 Together, these plants will result in a total of 200,000 m3 of waste water processing per day.271 Next, the planned expansion of over eighteen kilometers of main, secondary, and tertiary sewer lines, constructed to improve waste water transport to and within the plants, is under way.272 Additionally, a thirty-kilometer and an eighty-kilometer sewer line was set up in the Kaliti Catchment in 2015 and 2016, and the government has already advertised a bid for the development of sewers in the other catchments.273 Thus, while the existing sludge and sewer-based waste water treatment and disposal systems present significant environmental concerns, e.g. due to the premature release of undertreated waste water and issues with operational capacity, the Kaliti plant expansion project is an example of the AAA proactively planning to provide better sewer service to residents, while employing more environmentally sound technologies for waste water treatment. D. Sludge Cake Treatment and Disposal All forms of sludge should undergo treatment before reuse or discharge into the natural ecosystem.274 At the Kaliti and Kotebe Waste Water Treatment Plants, operators dispose of sludge in a non- compact or land-intensive natural drying bed system.275 The sludge treatment process at Kaliti WWT RUSP begins with the arrival of 269 Interview with Gemal Rashid, supra note 100; interview with Tesfalem Yifa, supra note 234; interview with Gemila Mohammed, supra note 208; interview with Nuri Muhammed, supra note 208; interview with Getachew Demeke, supra note 245; Effluent Tax Focus Group Discussion, supra note 211. 270 ESIA WWTPSLER KC, supra note 33, at 33; interview with Tesfalem Yifa, supra note 234. 271 ESIA WWTPSLER KC, supra note 33, at 33; interview with Tesfalem Yifa, supra note 234. 272 ESIA WWTPSLER KC, supra note 33, at 19; interview with Tesfalem Yifa, supra note 234. 273 Interview with Tesfalem Yifa, supra note 234. 274 ESIA WWTPSLER KC, supra note 33, at 42. 275 AAWSA PSDSPCF, supra note 214, § 7; interview with Nuri Muhammed, supra note 208; interview with Nega Getahun, supra note 100; interview with Tadese Eshete, supra note 208; interview with Tilahun Yimer, supra note 208. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 368 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 trucked sludge from service areas at the sludge lagoons and drying beds of the plant. The lagoons and drying beds were constructed in 1999 with a treatment capacity of 110,000 m3 per year of sludge.276 The truck sludge is dislodged in 8 m3 skips that screen for foreign elements in the sludge and reduces erosion. While the supernatant is decanted from the surface and returned to the plant, the liquid evaporates in the drying ponds of the lagoons, and the sludge cake is removed manually.277 However, in practice, this process of drying and removal is not effectively followed and liquid waste from the drying beds at the plant is being released directly into the Small Akaki River, instead of being returned to the plant.278 The water treatment plants are open for sixteen hours a day, without any volume limitation, to all sludge dislodging service providers.279 Despite a limited drying bed system, solar radiation dries the sludge cake in an average of two months.280 The sludge cake then goes to restricted fields without any treatment and reuse.281 In 2015, the AAWSA, with its limited sludge cake managing laborers and loaders, manually disposed of 91,200 m² of sludge cake.282 The proposed Kaliti WWT RUSP plant retrofitting and expansion project includes provisions to rehabilitate the existing sludge drying lagoons to treat digested sludge. Although the sludge cake treatment and the disposal charge plays an important role in covering some of the costs of the service, confusion remains regarding who must pay the charge.283 As stated previously, private sludge dislodging service providers are contractually bound to pay a cash receipt voucher-based nominal 276 ESIA WWTPSLER KC, supra note 33, at 26. 277 Id. at 25; interview with Getachew Demeke, supra note 245 (stating that the sludge cake can measure around 7 meters in depth). 278 ESIA WWTPSLER KC, supra note 33, at 18; Video Recording: Researcher’s Video Record-Based Observation of Kaliti Waste Water Treatment Plant, Addis Ababa, Eth. (Mar. 28, 2014) (on file with author). 279 ESIA WWTPSLER KC, supra note 33. 280 Interview with Tilahun Yimer, supra note 208; interview with Getachew Demeke, supra note 245. 281 Effluent Tax Focus Group Discussion, supra note 211; interview with Nega Getahun, supra note 100; interview with Nuri Muhammed, supra note 208; interview with Tadese Eshete, supra note 208; interview with Getachew Demeke, supra note 245; interview with Tilahun Yimer, supra note 208. 282 AAWSA WWTRSP AR, supra note 210, at 1–5. 283 Interview with Tilahun Yimer, supra note 208; interview with Getachew Demeke, supra note 245. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 369 Environmental Tax System in Ethiopia charge of 200 ETB annually per vehicle to the AAWSA.284 By contrast, the public sludge dislodging vehicles are not subject to payment, although the public service providers collect a charge from service customers.285 Thus, while there is a sludge cake treatment and disposal charging system for privately dislodged sludge, there does not appear to be one for publicly dislodged sludge. For this reason, only the private sludge dislodging service providers pay in this instance. V INDUSTRIAL EFFLUENT TREATMENT AND DISPOSAL While few industries dispose of their treated effluents into the sewer system, the majority of industries dispose untreated effluent into water bodies.286 This is directly at odds with an industrial water user’s obligation to install and use a waste treatment method for treating pollution. Industrial users may only discharge the type and volume of treated waste permitted by law.287 Few industries actually install and use waste water pre-treatment facilities.288 In an assessment undertaken in fifty-three industries by the MEFCCE, sixty percent of industries have no treatment technology, and forty percent 284 AAWSA PSDSPCF, supra note 214, § 4; AAWSA Board Minute no. 208/1999; interview with Gemal Rashid, supra note 100; interview with Nega Getahun, supra note 100; interview with Solomon Tafese, supra note 204; interview with Tadese Eshete, supra note 208; interview with Nuri Muhammed, supra note 208; interview with Tilahun Yimer, supra note 208; interview with Gemila Mohammed, supra note 208. 285 AAWSSDSRRR, supra note 205, at art. 39(1). 286 Action for Professionals’ Association for the People (APAP) vs. the Federal Environmental Protection Authority of Ethiopia, (Civil File No. 64902, Federal First Instance Court, Feb. 21, 1999); Action for Professionals’ Association for the People (APAP) vs. the Federal Environmental Protection Authority of Ethiopia, (Civil File No. 62904, Federal High Court, June 12, 2008); Action for Professionals’ Association for the People (APAP) vs. the Federal Environmental Protection Authority of Ethiopia, (Civil File No. 51052, Federal Supreme Court Cassation Division, Dec. 3, 2006); MEFCCE AIPEESI, supra note 33; MINISTRY OF INDUSTRY OF ETH., SUMMARY OF REVIEW WORKS ON ENVIRONMENTAL MANAGEMENT PRACTICES OF SELECTED INDUSTRIES IN ETHIOPIA (2014) [hereinafter MIE SRWEMPSIE]; interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; interview with Adugna Mengste, supra, note 58; interview with Zelalem Ketema, supra note 223; Researcher’s Video Record- Based Observation of Akaki River, Addis Ababa, Eth. (June 17, 2014). 287 EWRMR, supra note 71, at arts. 12(1)(a)–(b). 288 Effluent Tax Focus Group Discussion, supra note 211; MEFCCE AIPEESI, supra note 33; MIE SRWEMPSIE, supra note 286; interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; interview with Adugna Mengste, supra, note 58; interview with Zelalem Ketema, supra note 223. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 370 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 have treatment technology that lacks necessary funding, human resources, or chemicals for testing.289 Thus, besides a few exceptions, the existing industrial effluent treatment and disposal system results in significant pollution to natural water bodies. A. Federal Effluent Permit System Prior to issuing an investment, trade, or operating license for any project, a licensing agency should ensure the review of the Environmental Impact Assessment (EIA) study by the concerned organization.290 No person shall release waste291 into water resources without having obtained a permit from the supervising body.292 Applications for the discharge of any treated effluent into surface or ground water must be made to the supervising body.293 In deciding whether to grant or refuse a permit, the body must consider effluent and stream standards.294 The water use permit application process has several procedural steps. First, water use permit applications to the MWIEE must contain basic information such as the location, intended place of use, volume, and method of use.295 Next, MWIEE must issue the permit within sixty days after receipt of the application in instances where the water use proposed does not infringe on any person’s legitimate interests or result in harmful effects on the water resource and the environment.296 Although, at the moment, the MWIEE has not yet developed an effluent permit format,297 it must state the detailed information, conditions, and restrictions for effluent generated by the proposed use in the permit form. If the MWIEE rejects an application, it must 289 MEFCCE AIPEESI, supra note 33, at 19. 290 FEIAP, supra note 60, at art. 3(3); AAEIAR, supra note 78, at art. 5(2). 291 FEIAP, supra note 60, at art. 3(3); AAEIAR, supra note 78, at art. 5(2). 292 EFWRMP, supra note 69, at art. 11(1) (d); see also id. at art. (2)(7) (defining “supervising body” as the Ministry where it pertains to water resources at central level, or any organization delegated by the Ministry pursuant to Article 8(2) of the proclamation). 293 EFWRMP, supra note 69, at arts. 11(1), 13. 294 EWRMR, supra note 71, at art. 11(2); FSIPCE, supra note 58. 295 EWRMR, supra note 71, at arts. 3(a)–(g). 296 EFWRMP, supra note 69, at arts. 13(2), 14(1)(a)–(b); see also id. at arts. 4, 11. 297 Even though an effluent permission format was proposed by the Licensing and Monitoring Directorate, it was sidelined due to overlap and conflict of interest. Interview with Kifle Alemayehu, supra note 58; interview with Zewdu Tefera, supra note 63; interview with Tesfaw Ashagrie, supra note 237; interview with Zebider Alemneh, Water Supply & Sanitation Directorate: Environmentalist, Ministry of Water, Irrigation & Electricity of Eth., Addis Ababa, Eth. (June 19, 2014). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 371 Environmental Tax System in Ethiopia notify the applicant in writing of the rejection and the reasons for rejection within sixty days after receipt of the application.298 As a condition for the permit, the applicant must follow several requirements for waste treatment. Any person discharging treated waste water has an obligation to install and use a waste treatment method, to discharge only the type and volume of treated waste permitted, and to allow the MWIEE to take a treated waste discharge sample at any time.299 Most industries in AAA currently only use primary treatment technology. Once issued, a permit holder may seek renewal from the MWIEE at least one month before a permit’s expiration date.300 The MWIEE checks for the permit holder’s compliance with the conditions, obligations, and restrictions attached to the permit. Upon verifying compliance, the MWIEE renews a treated waste water discharge permit every two years starting from the date of its issuance.301 The MWIEE notifies the applicant in writing that the permit is renewed or denied within five days of receiving the renewal application. This decision must be registered and is subject to later variation or rejection.302 A permit shall be presumed void if it is not renewed within the time limit.303 The MWIEE may suspend or revoke a permit at any time when the holder fails to fulfil their obligations.304 Such modifications can apply to an entire permit or specific parts. The suspension or revocation of treated waste water discharge permits305 often results from failure to comply with the conditions prescribed in the permit306 or fraudulent acts by the permit holder at the time of issuance.307 Subsequently, the MWIEE must register all suspension or revocation decisions.308 While the federal water use permitting system mainly operates under the MWIEE, the AAA has developed a parallel permitting 298 EFWRMP, supra note 69, at art. 14(3). 299 EWRMR, supra note 71, at art. 12(1). 300 EFWRMP, supra note 69, at arts. 15(1)–(2); EWRMR, supra note 71, at art.13(1). 301 EFWRMP, supra note 69, at arts. 15 (1)–(2); EWRMR, supra note 71, at art.13(1). 302 EWRMR, supra note 71, at arts. 13(3)–(5). 303 EFWRMP, supra note 69, at art. 15(3). 304 Id. at art. 17. 305 Id.; EWRMR, supra note 71, at art. 14. 306 EWRMR, supra note 71, at art. 14(1)(a). 307 Id. at art. 14(2). 308 Id. at art. 14(3). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 372 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 system for the two major rivers in the jurisdiction: the Big Akaki in East Addis Ababa and the Small Akaki in West Addis Ababa. These rivers drain into the Abasamuel lake to the south,309 which flows to the Awash River.310 The AAA’s Addis Ababa Environmental Protection Authority (AAEPA) was mandated by the MWIEE to consider the negative impact on water resources, prior permits, and stakeholders when someone requests a permit to discharge.311 The AAA effluent permit system provides a legal framework for application procedures for permits,312 denying or accepting permits,313 determining the duration of permits, and the procedures to renew,314 suspend,315 or cancel permits.316 Furthermore, it has laboratory and environmental inspectors that enable it to undertake effluent standard- based inspections317 and evaluations.318 Nonetheless, since its effluent audit system is in its infancy,319 it has a nominal regulatory role when proponents annually renew their trade licenses.320 Therefore, the AAEPA does not currently have an operating effluent permit system. B. Effluent Tax Collection System The inbuilt area of Addis Ababa is located in the Akaki River basin, which is the major tributary of the Awash River basin. The AAA generates about 49,000,000 m3 of waste water annually, most of which ends up in the rivers and streams flowing through the city.321 Most of the industries are in the Kaliti catchment and are situated along streams that are currently being used as open sewer channels.322 309 DPDEOFDRE, supra, note 17, at art. 10(7); EFWRMP, supra note 69, at art. 8(2); interview with Kifle Alemayehu, supra note 58. 310 AFDD/AACG SWMSIR, supra note 33, at 4. 311 AAEPCR, supra note 76, at arts. 15(4), 16–20. 312 Id. at art. 16. 313 Id. at art. 17. 314 Id. at art. 18. 315 Id. at art. 19. 316 Id. at art. 20. 317 Interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; interview with Senait Asaminew, supra note 78. 318 Interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; interview with Senait Asaminew, supra note 78. 319 Interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; MEFCCE AIPEESI, supra note 33, at 18. 320 Interview with Senait Asaminew, supra note 78. 321 ESIA WWTPSLER KC, supra note 33, at 17. 322 Id. at 18. GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 2018] Introducing an Administratively Feasible 373 Environmental Tax System in Ethiopia Ethiopian law requires parties to pay an effluent tax for discharge permits and their subsequent renewal, alteration, and cancelation.323 The MWIEE is authorized to collect these taxes324 and to mitigate water resource degradation.325 Permit holders must pay an effluent tax to the MWIEE326 annually.327 However, in practice, the effluent tax is not effectively embedded328 in the law and the MWIEE329 does not currently have an effective effluent tax collection system.330 VI ADDIS ABABA ADMINISTRATION EMISSION TAX PERMIT SYSTEM At the federal level, the MEFCCE must formulate and enforce scientific and environmental principle-based gaseous emission standards.331 The MEFCCE approved air quality standards that specify appropriate air quality levels and emission rates.332 However, since the MEFCCE has delegated its permit issuance and renewal mandate for industrial, manufacturing, and service delivery organizations to the AAEPA,333 emission permit and renewal mandates in the AAA fall within the domain of the AAEPA. Under the MEFCCE, the AAEPA has a duty to issue permits based on the polluter-pays principle and to renew and enforce them in accordance with established gaseous emission standards.334 When parties request a permit to discharge air pollutants, the AAEPA is expected to consider negative environmental impacts, prior permits, and effects on outside stakeholders.335 Like the EIA system,336 the 323 EFWRMP, supra note 69, at arts. 20(1)(c)–(d). 324 Id. at arts. 20(3)–(4); EWRMR, supra note 71, at art. 30. 325 Gebregiorgs, supra note 2, at 33; Gebregiorgs, supra note 19, at 30–41. 326 EFWRMP, supra note 69, at arts. 22(1)–(2); EWRMR, supra note 71, at art. 32(1). 327 EWRMR, supra note 71, at art. 32(2). 328 Gebregiorgs, supra note 2, at 33; Gebregiorgs, supra note 19, at 30–41. 329 Because the two major rivers in AAA are tributaries of the transnational Awash River, they are subject to the federal effluent tax collection system. AFDD/AACG SWMSIR, supra note 33, at 4. 330 Interview with Kifle Alemayehu, supra note 58; interview with Zewdu Tefera, supra note 63; interview with Tesfaw Ashagrie, supra note 237; interview with Zebider Alemneh, supra note 297. 331 FPCP, supra note 22, at art. 6(1); PIPCMR, supra note 64, at art. 13(1). 332 FPCP, supra note 22, at art. 6(1); FSIPCE, supra note 58. 333 FDRE EPA L AAEPA, supra note 138; FDRE EPA L MTE, supra note 138. 334 PIPCMR, supra note 64, at arts. 13(2), 14; AAEPCR, supra note 76, at art. 15(1). 335 AAEPCR, supra note 76, at arts. 15(5)(a)–(c). GEBREGIORGS (DO NOT DELETE) 5/31/2018 12:23 PM 374 J. ENVTL. LAW AND LITIGATION [Vol. 33, 327 AAA’s emission permit program provides a legal framework for permit application procedure,337 granting or rejecting permits,338 determining the duration of permits, renewing or suspending permits,339 and cancelling permits.340 Even though the AAEPA has an air laboratory that enables emission standard-based evaluations, it has no air laboratory experts to analyze the results.341 Moreover, since the AAEPA has no qualified emission inspectors, emission-based inspections are not conducted.342 Therefore, the AAEPA does not currently have a functioning emission tax permit system.343 CONCLUSION This research assessed the administrative feasibility of environmental taxes in implementing a polluter-pays principle in the AAA of Ethiopia. In implementing a polluter-pays principle, this research has shown that while solid waste, landfill, sludge, and sewer taxes are, to some extent, administratively feasible to implement, effluent and emission taxes are not. This Article suggests that implementing administratively feasible solid waste, landfill, sludge, sewer, effluent, and emission taxes in the AAA of Ethiopia is contingent upon the realization of fiscal federalism, an increased reliance on environmental expertise, expansion of public-private partnership, as well as the improvement of existing environmental institutions and infrastructures. 336 FEIAP, supra note 60, at art. 3(3); AAEIAR, supra note 78, at art. 5(2). 337 AAEPCR, supra note 76, at art. 16. 338 Id. at art. 17. 339 Id. at arts. 18–19. 340 Id. at art. 20. 341 Effluent Tax Focus Group Discussion, supra note 211; interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; Haileslassie Sebhatu, supra note 58; Adugna Mekonnen, supra note 58. 342 Interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78. 343 Effluent Tax Focus Group Discussion, supra note 211; interview with Meseret Mengiste, supra note 58; interview with Shimelis Eshetu, supra note 78; Haileslassie Sebhatu, supra note 58; Adugna Mekonnen, supra note 58.