Environmental Accident Prevention and Compliance Under Czech Law

Businesses are facing increasing pressure regarding environmental protection. It is no longer enough to have formal documentation; it is essential to establish a functional internal control system that stands up to real-time scrutiny. Proper prevention of environmental accidents requires a deep understanding of legal obligations and risk identification under Czech law. Our attorneys in Prague at ARROWS law firm know how to ensure compliance in this area and what specific risks to focus on.

Why environmental accident prevention is crucial for your business

Imagine a situation where a hazardous chemical leak occurs on your premises during a working day. Even if the leak is contained and no one is harmed, a subsequent inspection may reveal serious deficiencies. If it is found that you do not have an emergency plan in place or have failed to meet legal obligations under Czech law, the consequences for the company can be fatal.

A correctly implemented environmental accident prevention system protects your company, employees, and the environment itself. An entrepreneur with proper processes in place is not caught off guard by an inspection and can demonstrate due diligence. This minimizes the risk of penalties and potential criminal prosecution of the responsible managers under the Czech legal system.

Our attorneys in Prague at ARROWS regularly handle cases where companies have faced difficulties precisely because their control systems were poorly set up or non-existent. The consequences were often painful not only financially but also in terms of reputation and the trust of business partners.

Basic legal framework and entrepreneurial obligations in the Czech Republic

Act No. 224/2015 Coll., on the Prevention of Major Accidents (hereinafter the "PMA Act") is the key regulation for operations involving larger quantities of chemicals. This Czech act transposes the European directive and sets rules for handling hazardous substances. However, the PMA Act is not the only regulation you must monitor.

An operator cannot simply rely on the fact that they do not fall under the Prevention of Major Accidents Act and assume everything is in order. For most businesses in the Czech Republic, the Water Act is also fundamental, as it imposes the obligation to prepare an emergency plan in case of a leak of harmful substances. Furthermore, it is necessary to comply with the Act on Ecological Damage and the Waste Act.

Environmental legislation in the Czech Republic is multi-layered, and individual regulations complement each other. It is essential to view these obligations as a whole rather than in isolation.

Obligations of entrepreneurs handling chemical substances

The PMA Act establishes the basic obligation to conduct an inventory and assessment of the quantity of substances. Every operator of a facility containing selected hazardous chemical substances must compile a list specifying the type, quantity, and classification.

This calculation determines whether you fall under the regime of the Act or whether you are obliged to prepare a protocol of non-inclusion. Based on the list, you perform a summation of proportional quantities according to the formula in the annex of the Act.

An error in the calculation may mean that you unlawfully avoid obligations or, conversely, unnecessarily fulfill demanding requirements. The calculation requires the correct application of rules for various hazard classes under Czech commercial law.

Categorization of Groups A and B

Based on the calculated sum of proportional quantities, three situations may arise:

• Classification into Group A (when lower limits are exceeded).
• Classification into Group B (when higher limits are exceeded).
• Non-inclusion, meaning the facility is outside the regime of the Act.

Group A is regulated by more lenient requirements than Group B, but both groups require systematic safety management. If the quantity does not reach the limits for Group A but exceeds 2% of the limit quantity, you must have a protocol of non-inclusion prepared.

Our Prague-based attorneys can help you evaluate the situation correctly, including the risk of the so-called "domino effect" from neighboring enterprises. Each category brings different obligations and deadlines that must be strictly observed.

MicroFAQ: Basic concepts and obligations

1. Do I need to address the PMA Act even if I have a small warehouse?
Yes, if you store hazardous substances in quantities exceeding 2% of the limits specified in the Act, you must at least prepare a protocol of non-inclusion.

2. Which substances are included in the list?
The list includes substances and mixtures classified as hazardous according to the CLP Regulation that fall into the categories listed in the annex to the PMA Act.

3. Do I have to calculate the sum of proportional quantities myself?
The responsibility lies with the operator, but the calculation is technically demanding. We recommend using the services of a professional consultant or our Czech legal team at ARROWS.

Mgr. Karel Huneš

associate

• hunes@arws.cz

JUDr. Tereza Snopková, Ph.D.

associate

• snopkova@arws.cz

Facility classification and risk categorization

If the calculation shows that you fall under the PMA Act regime, you must submit a proposal for facility classification to the Regional Office. Only then do the deadlines for fulfilling further obligations begin to run. Classification into Group A or B determines the extent of the administrative and technical burden for years to come.

Operators in Group A must develop a major accident prevention safety program. This includes a description of the safety management system and risk identification. The program must be submitted to the Regional Office for approval.

Group B and the strictest regime

If you belong to Group B, the obligations are the most extensive and include the preparation of a safety report. This involves a detailed assessment of risks and accident scenarios.

You must provide the Regional Office with documentation for determining the emergency planning zone and for the preparation of an external emergency plan. A crucial obligation is also the preparation of an internal emergency plan for managing situations within the premises.

Inspections for Group B take place at least once a year and are very thorough.

Errors in classification and their impacts

Our attorneys in Prague often encounter cases of incorrect classification, where a company acts as an entity outside the law even though it falls into Group B. The Czech Environmental Inspectorate qualifies such conduct as a serious breach of the law.

The consequences are severe and include high fines and corrective measures. In extreme cases, a proposal to suspend operations may be issued.

Internal control system in practice

How to set up a functional internal control system that ensures the fulfillment of obligations in reality? A Compliance Management System in the field of environmental protection must be a living process.

An effective system includes several key elements:

• Register of legal requirements.
• Responsibility matrix.
• Regular monitoring and inspections.
• Documentation management.
• Employee training.
• Corrective measures.

Register of Legal Requirements

The foundation is having an overview of the laws applicable to the company in the Czech Republic and the deadlines for revisions. The register should clearly state who is responsible for a given obligation and the current status of compliance.

Without such a tool, it is easy to get lost in the volume of legislative deadlines. Czech legislation changes frequently, and procedures that were valid in the past may no longer be sufficient today.

Documentation at Hand

The basic package for inspection includes a non-classification protocol, a safety program, emergency plans, and safety data sheets. Furthermore, you must have operating regulations, revision documents, and training records ready.

Our Prague-based attorneys at ARROWS help companies set up a documentation structure so that it is immediately available and defensible during an inspection. Proper record-keeping is key to proving compliance with Czech regulations.

MicroFAQ: Internal Control and Records

1. How often should internal audits be performed?
The Czech Major Accident Prevention (MAP) Act requires regular reviews of the safety management system. We recommend conducting a comprehensive internal audit at least once a year.

2. Who is responsible for internal control?
The statutory body bears ultimate responsibility. In practice, a qualified corporate ecologist or an external specialist should be appointed.

3. How long should documents be archived?
We recommend archiving records of inspections, training, and maintenance for at least 5 years in case of a retrospective audit by Czech authorities.

Safety Documentation

Safety documentation is the basis of prevention, but it must not remain just a file in a folder. A common problem is the discrepancy between what is stated in the documents and the actual state of operations.

Alignment of Paperwork and Reality

The Czech MAP Act requires that the safety program or report describes the actual state of the facility. If the documentation lists safety features that do not physically exist, it is a serious violation that inspectors in the Czech Republic can easily detect.

Updates During Changes

Any change in technology or increase in warehouse capacity may trigger the need for a documentation update. For Group A and B facilities, changes affecting the risk of an accident must be discussed with the relevant Czech Regional Office.

Our attorneys in Prague from ARROWS will ensure a review of your documentation and assess whether it corresponds to the current legal and factual state under Czech law.

Emergency Planning and Drills

Documentation is one thing, but an accident tests people's readiness. Emergency planning is not just about writing a document, but about practical response training.

Internal Emergency Plan and Emergency Plan

It is necessary to distinguish between an internal emergency plan under the MAP Act and an emergency plan under the Czech Water Act. A plan under the Water Act is required for anyone handling substances harmful to water on a larger scale.

The plan must be practical and understandable for employees in a stressful situation. It must contain clear instructions on whom to call, what to shut down, and where to evacuate.

Emergency Drills

The MAP Act requires Group B facilities to conduct practical emergency drills at intervals specified in the plan. Even for other operations, practice is key to verifying the functionality of set processes.

A written record must exist for every drill, including an evaluation of deficiencies. The goal of the drill is to find errors and eliminate them, not just to formally fulfill an obligation under Czech law.

Physical Security and Equipment

The inspection also includes the physical condition of equipment, such as emergency sumps and sorbents. Furthermore, it is necessary to check the functionality of safety showers and the legibility of hazardous substance labeling.

Auditing and Improvement

The prevention system does not end with implementation; it must be regularly audited. An internal audit should verify compliance with legislation and internal directives and should be independent.

Many companies use ISO 14001 systems, which assist in meeting legal requirements in the Czech Republic. An external auditor provides an independent perspective that can reveal deficiencies overlooked during routine operations.

Our Prague-based attorneys at ARROWS can perform an audit focused on legal compliance and risk identification from the perspective of the liability of statutory bodies. Contact us at office@arws.cz.

Most Common Practical Errors

Based on our practice, we identify the most common mistakes companies make. Often, it is an underestimation of the classification obligation, where a company assumes the law does not apply to them.

Another mistake is outdated documentation containing invalid data or describing non-existent technologies. Formal training without practical demonstrations and the absence of records of performed inspections are also common issues.

Key Risks and How to Solve Them

Conclusion

Prevention of environmental accidents is a complex discipline requiring the integration of technical knowledge with legal certainty. Underestimating this area under Czech law can be costly, not only in terms of fines but also in the costs of remediating environmental damage.

Businesses with a correctly established system gain a competitive advantage and the assurance that they will succeed before Czech authorities in the event of a problem. Functional prevention protects business continuity and minimizes reputational risks.

Our attorneys at ARROWS law firm in Prague are ready to assist you with an audit of your obligations and the setup of your processes. If you are unsure whether your company meets all obligations under Czech legislation, contact us at office@arws.cz.

FAQ – Most frequent legal questions regarding environmental accident prevention in the Czech Republic

1. I have a small office building; does the Act on the Prevention of Major Accidents apply to me?
Most likely not. The thresholds for inclusion under the Czech Prevention of Major Accidents Act are set so that standard office operations do not fall under it. However, if you have, for example, a diesel generator or a paint warehouse, obligations under the Czech Water Act may apply to you.

2. What fine do I face if I do not have an approved safety program?
If you fall into Group A and do not have an approved safety program, or fail to update it, you face a fine of up to CZK 5,000,000 under Czech law.

3. How often does legislation in the field of accident prevention change?
Environmental legislation in the Czech Republic is very dynamic. Changes in substance classification (CLP), amendments to the Water Act, or the Prevention of Major Accidents Act occur regularly; therefore, we recommend monitoring legislative changes.

4. What should I prepare if the Czech Environmental Inspectorate (CEI) comes for an inspection?
Prepare all documentation, such as the classification decision, emergency plans, revisions, and training records. Be cooperative, but do not provide information beyond your legal obligations without consulting a Prague-based attorney.

5. Does our company need to have ISO 14001?
Czech law does not mandate this; it is a voluntary standard. However, an established ISO 14001 system is a signal to Czech state authorities that you are systematically dedicated to environmental protection.

6. What are the most common causes of sanctions?
Most often, these are administrative errors, such as missing documentation or unperformed revisions, combined with technical deficiencies. Prevention consists of regular legal and technical audits.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue. Although we ensure maximum accuracy of the content, legal regulations and their interpretation in the Czech Republic evolve over time. To verify the current wording of regulations and their application to your specific situation, it is necessary to contact ARROWS law firm in Prague directly (office@arws.cz). We bear no responsibility for any damages or complications arising from the independent use of information from this article without our prior individual legal consultation and professional assessment. Every case requires a tailored solution; therefore, do not hesitate to contact us.