Act No. 7 on hygiene and pollution prevention.

The purpose of this Act is to create healthy living conditions for Icelanders and to protect the values inherent in a healthy and unpolluted environment. Furthermore, the aim of the law is to prevent or reduce emissions into the atmosphere, water, and soil, and to prevent the formation of waste in order to protect the environment.
The Act contains the following chapters: I. Objectives, definitions and implementation; II. Operating license; III. Special provisions for incinerators; IV. Special provisions for activities using organic solvents; V. Special provisions for plants producing titanium dioxide; VI. Special provisions for business operations for research and production of hydrocarbons; VII. Environmental information; VIII. Ecolabel; IX. Air quality; X. Greenhouse gas emissions; X-A. Carrying bags; XI. Obligations of the operator; XII. Board, appointments and employees; XIII. Environment Agency; XIV. Supervision of business operations; XV. Accreditation and internal control; XVI. Municipal statutes; XVII. Jurisdiction and coercive measures; XVIII. Procedure and rulings; XIX. Penalties; XX. Entry into force. In addition, it contains five Annexes, which among other things, specify the activities for which the Environment and Food Agency and the Health Committee shall issue an operating license.
Article 4 and 5 empowers the Executive to adopt general regulations on a variety of subject, including: pest control and destruction of pests; restaurants; animal hospitals and veterinary clinics; operating license for all economic activities that may cause pollution; eco-labels on products and services; numerical targets for the use of plastic bags; assessment of the potential risk of pollution; water and sea treatment in commercial activities; sewers and sewage; protection against water pollution; air pollution; soil pollution; etc.
Articles 38-42 describe the obligations of business operators. Their activities shall be conducted in accordance with the following principles: a) that all appropriate measures are taken to prevent pollution; b) that the best accessible technology is used; c) that the activity does not lead to significant pollution; d) to prevent the formation of waste in accordance with the Act on waste treatment; e) that the waste generated is re-used, recycled, recovered; f) that energy is well utilized; g) that the necessary measures are taken to prevent accidents or limit the consequences of the accidents that may occur; h) that the necessary measures are taken when the activity is permanently stopped in order to avoid any risk of pollution.
The Health Committee shall be the responsible entity for enforcing the provisions of this Act and regulations issued in accordance with it, the ordinances issued by municipalities, and the provisions in special laws or rules which the Committee is or may be entrusted with. The Committee shall also work to improve health surveillance, provide education to the public, and strengthen co-operation with other authorities and entities working on these issues. The Environment and Food Agency shall supervise the implementation of this Act.
Municipalities are authorised to make their own statutes on matters not covered by regulations unde this Act and to provide further details for individual requirements, provided that they fall under the Act.