[Mainland China] On August 5, the General Office of the Changzhi Municipal People's Government issued the Changzhi Reclaimed Water Utilization Action Plan, proposing to raise the reclaimed water utilization rate in the main urban area to above 45% by the end of 2026, promote "full use" of reclaimed water by high-water-consumption industries such as steel, coal, power, and chemicals, and explore a reclaimed water rights trading mechanism. Aimed at easing water scarcity, improving the water ecological environment, and supporting ecological protection and high-quality development in the Yellow River basin, the plan systematically advances the large-scale, diversified, and market-oriented utilization of reclaimed water.

1. Policy Background: Implementing the "Clear Stream into the Yellow River" Major Initiative

The Changzhi Reclaimed Water Utilization Action Plan was formulated on the basis of documents including the Implementation Opinions of the General Office of the Shanxi Provincial People's Government on Strengthening Urban Reclaimed Water Utilization Across the Province (Jinzhengbanfa [2023] No. 91) and the Notice of the General Offices of the National Development and Reform Commission, the Ministry of Housing and Urban-Rural Development, and the Ministry of Water Resources on Issuing the Implementation Plan for the Three-Year Action to Advance Reclaimed Water Utilization in Key Cities (Fagai Ban Huanzi [2024] No. 194). It is the concrete implementation of Shanxi Province's major initiatives of "making strong progress on water affairs" and "bringing a clear stream into the Yellow River."

The plan upholds the "water conservation is pollution control" philosophy and explicitly proposes to build a reclaimed water utilization system that is "rationally allocated, well-equipped, widely applied, effectively supervised, and soundly institutionalized," based on improved facilities, expanded applications, and mechanism innovation. Its implementation principles emphasize:

• Plan-led, systematic advancement — strengthen the binding force of the special plan, coordinate reclaimed water production, conveyance, and utilization, and achieve plant-network coordination, quality-based water supply, and efficient utilization;
• Government-guided, market-driven — leverage the government's role in coordination and policy incentives, innovate investment and financing models, and actively guide private capital participation;
• Site-appropriate, priority-focused — in light of the main urban area's industrial layout and water resource endowment, give priority to industrial production and river ecological replenishment needs;
• Safe utilization, smart supervision — strictly control water quality throughout the process, strengthen smart monitoring and management, and ensure the safe and reliable use of reclaimed water.

2. Core Goal: Reclaimed Water Utilization Rate Above 45% by End of 2026

The plan sets clear quantitative goals: by the end of 2026, the reclaimed water utilization rate will steadily improve and pipe network coverage will continue to expand, with the main urban area's reclaimed water utilization rate reaching above 45% and a batch of reclaimed water intake points completed; key projects such as the main urban area and Changbei reclaimed water utilization projects will fully commence construction, forming a number of typical demonstration projects in industrial reuse, ecological replenishment, and municipal miscellaneous use.

In terms of implementation, the plan centers on four major tasks: first, strengthen unified allocation and management of reclaimed water resources, fully integrating reclaimed water into the main urban area's unified water resource allocation system with binding constraints; second, optimize the layout of reclaimed water production and conveyance facilities, accelerating equipment renewal and water quality improvement at existing urban domestic wastewater treatment plants to ensure effluent quality steadily meets the "three Class IV + Grade 1A" standard; third, expand diversified application scenarios for reclaimed water; and fourth, build a smart supervision and safety assurance system.

3. Key Measures: Binding Constraints Combined with Market Mechanisms

The plan is notable for its mechanism innovations, including:

• Rigid allocation — when issuing water withdrawal plans each year, set minimum utilization quotas for reclaimed water and other unconventional water sources for the main urban area and key water users; construction projects that could use reclaimed water but fail to fully utilize it shall not be approved for new water withdrawal permits;
• Industrial "full use" — prioritize reclaimed water as a water source for industrial production, promoting "full use" by high-water-consumption industries such as steel, coal, power, and chemicals;
• River ecological replenishment — give priority to using reclaimed water for ecological replenishment of the "Three Rivers and One Canal," Bitou River, and major urban rivers to maintain river ecological base flow;
• Comprehensive municipal miscellaneous use — vigorously promote reclaimed water use in road cleaning, landscaping, public toilet flushing, building construction, and other areas, with tap water and groundwater in principle no longer used within pipe network coverage;
• Energy utilization — encourage exploration of reclaimed water source heat pump technology for heating and cooling around reclaimed water plants and within pipe network coverage;
• Water rights trading — explore establishing a reclaimed water rights trading mechanism, clarify water rights ownership and trading rules, and revitalize the reclaimed water market.

4. Policy Funding and Industry Opportunities

On safeguards, the plan proposes to strengthen policy support and innovate investment and financing models, actively seeking central budget funds for reclaimed water utilization facility construction, ultra-long-term special government bonds for the "Two Priorities" and "Two Renewals," and other policy funds. It treats reclaimed water utilization facility construction as a key livelihood project, vigorously promotes the new public-private partnership (PPP) mechanism, standardizes concession operations in accordance with the law, and encourages private capital to participate in investment, construction, and operation.

For the water industry chain, the plan sends a clear market signal: reclaimed water production facility upgrades and expansions, conveyance and distribution network construction, smart water management platforms, and industrial and municipal reuse projects will see substantial project demand, bringing new market opportunities for wastewater treatment and water reuse equipment and engineering service enterprises.

TIANYI TECH Co., Ltd. specializes in wastewater treatment, water reuse (reclaimed water), and integrated water-environment management, providing municipal and industrial park customers with integrated solutions from process design, complete equipment supply, and project implementation to operation and maintenance, helping water-scarce regions achieve intensive, economical, and circular use of water resources.

Compiled from the notice of the Changzhi Reclaimed Water Utilization Action Plan issued by the General Office of the Changzhi Municipal People's Government.