EIA for production capacity expansion

When a business must undergo an EIA during production expansion

You must address the EIA again if your change reaches at least 25% of the relevant threshold value and at the same time meets the threshold value for the given type of project set out in Annex No. 1 to the Act under Czech legislation. For example, if you have an existing paper production facility with a capacity of 150 tonnes per day and want to expand it to 220 tonnes per day, the change of 70 tonnes will meet the threshold value for Category II (over 200 tonnes/day) and a screening procedure will be required.

The environmental impact assessment process primarily concerns industrial projects listed in Annex No. 1 to the Act. Projects are divided into two categories. Category I includes the largest and riskiest projects that must always undergo the EIA process – for example, nuclear power plants, oil refineries, or motorways longer than 10 km. Category II then covers smaller projects, where a screening procedure first assesses whether they will have a significant environmental impact.

When is a production expansion considered a change to a project?

The law also defines changes to existing projects as subject to assessment. The decisive factor is whether the change itself, in terms of capacity or scope, reaches the relevant threshold value, or whether the technology, operational management, or method of use is significantly changed. In practice, this means the following situations:

Increase in production capacity by 25% or more – if your change increases the project's capacity by a quarter or more, it automatically becomes subject to a screening procedure and potentially the entire EIA process. This threshold also applies to sub-threshold projects located in specially protected areas.

Significant change in technology – even if you are not increasing production capacity, the introduction of a new production line, a change in the production process, or the installation of new equipment can represent a significant change that requires assessment.

Change in the scope of the project – the extension of production halls, expansion of storage space, or an increase in the built-up area can meet the threshold values for Category II.

What are the risks of ignoring the EIA

Failure to comply with the obligation to undergo the EIA process is among the most serious violations of environmental regulations. The Czech Environmental Inspectorate (ČIŽP) regularly inspects industrial operations and imposes heavy sanctions.

Fines range in the millions of Czech korunas. Companies operating facilities without a valid permit or in violation of it have received fines ranging from three to five million CZK. In one case, a company illegally used waste products at its hazardous waste landfill in violation of the Act on Integrated Prevention – the fine amounted to 3.5 million CZK.

Even worse than financial sanctions can be the suspension of operations. ČIŽP has the authority not only to impose heavy fines but also to order corrective measures and, in extreme cases, issue a decision to shut down operations, which can have devastating consequences for a company.

Operating without a valid EIA opinion is illegal, and all subsequent permits (zoning decisions, building permits) are defective. If the building authority issues a permit for a project that materially requires an EIA opinion, but this opinion was not used as a basis for the proceedings, it is an unlawful procedure. The entire proceedings can be annulled, and the project returns to the beginning.

Litigation and public objections can drag the entire process out for months or even years. Associations and affected municipalities have the right to challenge the procedures of the authorities if they believe that a project requiring an EIA was assessed insufficiently or not at all.

If you find that your planned change requires an EIA, do not hesitate to contact the Prague-based ARROWS law firm at consultation@arws.cz. Our Czech legal team will conduct a legal analysis of your situation and propose a course of action to protect your investment.

How the screening procedure works for production expansion

The screening procedure is a key phase in which it is decided whether your change is subject to a full EIA process or not. This process proceeds as follows:

Submission of project notification – you must submit a notification of the project change to the relevant authority (regional authority or the Ministry of the Environment), containing a description of the existing project, the planned changes, and their potential environmental impacts.

The notification must contain basic information about the notifier, characteristics of the project including its location, capacity, and technical design, a description of the current state of the environment, anticipated environmental impacts, and proposed measures to minimize them. It is recommended that the notification be prepared by an authorized person with the necessary expertise.

Publication and public comments – the relevant authority will publish information about the notification on its official notice board and in the EIA information system. The public, affected municipalities, and administrative authorities have 30 days to submit their comments.

Decision of the authority within 45 days – the relevant authority must complete the screening procedure no later than 45 days from the publication of the notification information. In justified complex cases, the period may be extended by a maximum of 25 days.

The authority will assess the project according to the criteria listed in Annex No. 2 to the Act, which include the characteristics of the project (size, accumulation with other projects, use of natural resources, waste production), the location of the project (sensitivity of the area, exceedance of environmental quality standards), and the characteristics of the potential impact (extent, probability, duration, and frequency).

The outcome of the screening procedure can be threefold. The authority will issue a conclusion that the project is subject to an EIA assessment and determine the scope of the documentation. Or, the authority will issue a conclusion that the project is not subject to assessment, and the project can proceed to subsequent proceedings without an EIA. Alternatively, the authority will set conditions under which the project will not have a significant environmental impact, and these must be incorporated into the project documentation.

When expanding production, it is necessary to expect that the authority will examine not only the change itself but also cumulative impacts with the existing operation. For example, if you have a permit for the production of 100 tonnes of products per year and want to add another line with a capacity of 50 tonnes, the authority will assess the overall impact of the operation with a capacity of 150 tonnes.

What a full EIA process involves and how long it takes

If the screening procedure decides that your production expansion is subject to an EIA assessment, you face a complex process that includes several phases and typically takes 12 to 24 months.

Preparation of EIA documentation – this documentation can only be prepared by an authorized person licensed by the Ministry of the Environment. The documentation describes the project in detail, the current state of the environment, assesses the impacts on individual environmental components (air, water, soil, noise, biodiversity, landscape), and proposes measures to minimize them.

The cost of preparing EIA documentation ranges from hundreds of thousands to several million CZK, depending on the complexity of the project. Preparation requires a number of specialized studies – noise studies, dispersion studies of emissions, hydrogeological surveys, biological surveys, and others. The entire process of preparing the documentation usually takes several months.

Preparation of an expert review of the documentation – after the documentation is submitted, the relevant authority will have an expert review prepared by an authorized person other than the one who prepared the documentation, to ensure an independent assessment. The reviewer will verify the completeness and correctness of the documentation, assess the proposed measures, and may request additions.

Public hearing – after the expert review is prepared, a public hearing is held, where the public, municipalities, and non-profit organizations have the opportunity to comment on the project and ask questions. This phase is very important, as objections that can influence the final opinion often emerge here.

Issuance of a binding EIA opinion – the entire process ends with the issuance of a binding opinion by the relevant authority, which summarizes the results of the assessment and sets conditions for the implementation of the project. This opinion is binding for all subsequent proceedings – zoning proceedings, building proceedings, integrated permit.

A binding EIA opinion is valid for 7 years from its issuance. If you do not start implementing the project or submit an application for subsequent permits within this period, you must apply for an extension of the opinion's validity. Without a valid EIA opinion, the project cannot be implemented, nor can the necessary permits be obtained.

During the preparation and implementation of projects, changes often occur compared to the assessed project. In such cases, it is necessary to apply for a so-called verification opinion, by which the relevant authority verifies whether the changes are in accordance with the assessed project. If the changes are significant, the authority may issue a negative opinion and require a new screening procedure or a full EIA process.

Relationship of EIA to the integrated permit (IPPC)

Many industrial operations are subject not only to EIA but also to the Integrated Pollution Prevention and Control (IPPC) regime. These are facilities listed in Annex No. 1 to Act No. 76/2002 Coll., such as fuel combustion plants, chemical plants, metal production, surface treatment of metals, or large paper mills.

An integrated permit sets binding conditions for the operation of a facility with regard to the protection of the environment as a whole. It replaces individual environmental permits in the areas of air protection, water protection, and waste management. For operators, this means a lower administrative burden, as all conditions are integrated into a single decision.

When expanding production in a facility with an integrated permit, it is necessary to assess whether the change requires an amendment to the integrated permit. The law obliges the operator to report any planned change to the facility to the regional authority. The authority will then assess whether it is a substantial change requiring a new or amended integrated permit.

A substantial change means, for example, an increase in production capacity, a change in technology, the installation of new pollution sources, or a significant increase in emissions. If the authority finds that it is a substantial change, it will invite the operator to submit an application for an amendment to the integrated permit. If the operator continues operations without the necessary permit amendment, they face a suspension of operations and heavy fines.

The process of amending an integrated permit is similar to issuing a new permit – the operator must submit an application describing the change, the authority evaluates compliance with the best available techniques (BAT), and issues a decision on the amendment. Best available techniques are defined in European BREF reference documents, which set technical standards for individual industrial sectors.

If the production expansion is subject to both EIA and IPPC, both processes must be coordinated. The binding EIA opinion is a basis for the integrated permit proceedings, as the conditions set in the EIA process must be incorporated into the integrated permit. It is often advantageous to submit the application for an integrated permit only after the binding EIA opinion has been issued, to avoid conflicting conditions.

The ARROWS law firm will help you prepare applications for integrated permits and their amendments, assess the compliance of your project with the best available techniques, and ensure coordination with the EIA process. Write to us at consultation@arws.cz.

Most common mistakes made by companies during production expansion

In practice, we encounter many situations where companies underestimated the obligation to undergo the EIA process or obtain an integrated permit. The most common mistake is the so-called "salami slicing method" – the gradual expansion of production in small steps, which individually do not require assessment, but in total significantly change the operation.

Authorities and courts approach this practice very strictly. If they find that an investor purposefully split a project into smaller parts to avoid an EIA, they can assess the entire project as a single project and require its reassessment. In one case, the construction of a motorway was purposefully split into shorter sections to avoid the EIA process, which led to litigation and the cancellation of permits.

Another common mistake is the assumption that if you have an old EIA opinion, you can implement the project under it indefinitely. An EIA opinion has limited validity – currently 7 years. After this period, you must apply for an extension of validity or undergo a new EIA process.

Changes to the project during implementation are also a risky area. If you make changes during construction or after starting operations that were not assessed in the EIA process, the authority may issue a negative verification opinion and halt implementation. For example, if you increase production capacity beyond the limits allowed in the EIA opinion, or change technology that has different emissions than what was assessed.

Ignoring cumulative impacts is also problematic. Authorities do not only assess the individual change, but also its impact in combination with the existing operation and other projects in the vicinity. If multiple companies carry out different activities in an industrial zone, it must be assessed whether their combined impact is significantly negative.

Insufficient preparation of documentation leads to delays and the return of documents for completion. EIA documentation must be prepared by an authorized person with the appropriate license and must contain all requirements set by law. If the documentation does not contain the necessary data or specialized studies, the authority will return it for completion, which extends the process by months.

Neglecting the public interest and communication with the affected public can lead to objections and litigation. The public has the right to comment on the project at all stages of the EIA process and can submit objections that the authority must assess. If the investor does not sufficiently explain the project and its environmental protection measures to the public, they may face strong opposition and project delays.

How ARROWS helps companies with EIA during production expansion

The complexity of the EIA process and the volume of legal and technical requirements mean that without professional help, you risk making mistakes that can have serious consequences. The ARROWS law firm specializes in environmental impact assessments and integrated prevention, providing comprehensive legal services for industrial enterprises.

Our services include a legal analysis of the EIA obligation – we will assess whether your planned change requires a screening procedure or a full EIA process, or whether an amendment to the integrated permit will suffice. We will conduct an audit of your existing permits and identify risks.

Preparation of notifications and applications – we will help you prepare notifications for the screening procedure, applications for integrated permit amendments, or documentation for the EIA process. We will ensure coordination with authorized persons and expert consultants.

Representation in proceedings and communication with authorities – we will represent you in negotiations with the regional authority, the Ministry of the Environment, or the Czech Environmental Inspectorate. We handle all communication, submissions, and responses to authority requests.

Verification of project changes – if you already have a valid EIA opinion and want to make changes, we will prepare an application for a verification opinion and assess whether the changes are permissible or require a new assessment.

Defense against fines and ČIŽP inspections – if you face an inspection or administrative proceedings, we will provide immediate legal assistance, prepare a defense, and represent you in the proceedings.

Contractual documentation and negotiations – we will prepare or review contracts with authorized persons, project documentation contractors, and technology suppliers to ensure that all conditions of the EIA opinion and integrated permit are met.

Representation in court disputes – if municipalities or civic associations raise objections against your project, we will represent you in administrative justice and defend the legality of the procedure.

Our firm's portfolio includes more than 150 joint-stock companies, 250 limited liability companies, and 50 municipalities and regions. We pride ourselves on speed and the high quality of our services. Thanks to the ARROWS International network built over a decade, we can provide legal services even in cases with an international element, if your production supplies abroad or you have foreign owners.

ARROWS is insured for damages up to CZK 500,000,000, which means maximum security for you. We are also commonly partners to in-house corporate lawyers for resolving special matters such as EIA or IPPC.

If you are planning a production expansion, do not underestimate the EIA and IPPC processes. Early consultation with ARROWS lawyers can save you millions of CZK and years of delays. Contact us at consultation@arws.cz to obtain professional legal advice.

Production expansion and technology changes – practical situations

In practice, we encounter various types of production expansions and operational changes. Each case is specific and requires individual assessment. Below we present typical situations you may encounter.

Increase in production capacity on existing equipment – if you plan to increase production capacity by extending operating hours, increasing production cycle speed, or making more efficient use of existing lines, you must assess whether the increase reaches 25% of the threshold value. For example, if you have a permit for the production of 2,200 tonnes per year and want to increase it to 3,500 tonnes per year, this is an increase of almost 60%, which requires a screening procedure.

Installation of a new production line – adding another production line to an existing site usually means an increase in overall production capacity. The authority will assess the overall operation, not just the new line. If the new line brings new types of emissions or waste that were not assessed in the original EIA opinion, a new assessment will likely be required.

Extension of production halls and warehouses – expanding the built-up area can meet the threshold values for industrial zones (over 20 ha) or warehouse complexes (over 10,000 m² of built-up area). In such a case, a screening procedure is required.

Change in production program or technology – if you plan to change the manufactured products or introduce a new technology, this can mean a significant change to the project. For example, transitioning from mechanical machining to chemical surface treatment of metals changes the nature of the operation and its environmental impacts.

Transition to new raw materials or fuels – changing input raw materials can affect air emissions, waste production, or wastewater quality. For example, transitioning from coal to biomass for combustion sources may require an amendment to the integrated permit.

In each of these situations, it is necessary to assess whether the change meets the conditions for a screening procedure or an amendment to the integrated permit. The ARROWS law firm will provide you with a legal analysis of your specific situation and recommend the optimal procedure. We have experience with projects of various sizes and sectors – from small manufacturing plants to large industrial complexes. Contact us at consultation@arws.cz.

Time and financial demands of the EIA process

The EIA process is time-consuming and financially demanding, and this must be taken into account when planning production expansion. The overall length of the process depends on the complexity of the project, the speed of preparing the documentation, and the scope of public comments.

The screening procedure usually takes 45 to 70 days from the submission of the notification. During this period, the authority must evaluate all comments and decide on the next steps.

The preparation of EIA documentation can take several months to a year, depending on how many specialized studies need to be prepared and how quickly the authorized person drafts the documentation. The cost of preparing the documentation ranges from hundreds of thousands of CZK for smaller projects to several million for large industrial projects.

The expert review, public hearing, and binding opinion take another 6 to 12 months. In the case of complicated projects or extensive public objections, the process can take even longer.

Overall, a duration of 12 to 24 months should be expected from the start of the screening procedure to the issuance of the binding EIA opinion. To this, the duration of subsequent proceedings – zoning proceedings, building proceedings, or integrated permit proceedings – must be added.

Financial costs include not only the preparation of documentation by an authorized person, but also the costs of specialized studies (noise, dispersion studies, hydrogeology, biology), legal advice, administrative fees, and potentially the costs of measures to minimize environmental impacts.

For a medium-sized industrial project, total costs in the range of several million CZK should be expected. However, these costs can be significantly lower if the process runs smoothly and without complications, or conversely, significantly higher if litigation or repeated additions to the documentation occur.

The ARROWS law firm will help you minimize both time and financial costs by ensuring high-quality preparation of documents, coordination with authorized persons, and preventing errors that would lead to the return of documentation or rejection of the project. For an immediate solution to your situation, write to us at consultation@arws.cz.

Summary: when a business must undergo an EIA during production expansion

The EIA process is complex and requires specialized legal and technical knowledge. Key is an early assessment of whether your planned change requires a screening procedure or a full EIA process. Decisive factors are an increase in production capacity by 25% or more, a significant change in technology, or an expansion of the built-up area that meets the threshold values.

Ignoring the obligation to undergo an EIA can have catastrophic consequences – fines in the millions, suspension of operations, and cancellation of permits. Conversely, timely and high-quality preparation of the EIA process will provide you with legal certainty and protect your investment.

The process is time-consuming and typically takes 12 to 24 months. High costs for preparing documentation and specialized studies must be expected. At the same time, it is necessary to coordinate the EIA process with the integrated permit (IPPC) if your facility is subject to this regime.

The ARROWS law firm specializes in environmental impact assessments and provides comprehensive legal services for industrial enterprises. Our services include legal analysis of the EIA obligation, preparation of notifications and applications, representation in proceedings, verification of project changes, defense against fines, and court representation.

We have extensive experience with projects of various sizes and sectors. Our portfolio includes more than 150 joint-stock companies, 250 s.r.o. companies, and 50 municipalities and regions. Thanks to the ARROWS International network, we can provide legal services even in cases with an international element. ARROWS is insured for damages up to CZK 500,000,000.

If you do not want to risk errors, damages, or fines, you can safely leave the entire matter to the ARROWS law firm. Simply contact the firm at consultation@arws.cz.