83289 Environmental and Social Impact Assessment Executive Summary For Shanxi Gas Utilization Project (Final) Coal Chemistry Institute of China Academy of Sciences Oct. 2013 EXECUTIVE SUMMARY Shanxi Gas Utilization Project TABLE OF CONTENT 1. INTRODUCTION----------------------------------------------------------------------2 1.1 PROJECT BACKGROUND ----------------------------------------------------------------2 1.2 ENVIRONMENTAL POLICIES, LAWS AND REGULATIONS ------------------------------------------2 1.2.1 Laws and Regulations ------------------------------------------------------2 1.2.2 Safeguard Policies and EHS Guideline --------------------------------------2 1.2.3 Applicable Standards ------------------------------------------------------2 1.3 ASSESSMENT SCOPE, PERIOD AND KEY ISSUES ----------------------------------------------3 2. PROJECT DESCRIPTION---------------------------------------------------------------4 2.1 PROJECT COMPOSITION ---------------------------------------------------------------4 2.2 ELECTRICITY AND HEAT PRODUCTION TECHNOLOGY --------------------------------------------7 2.3 NOX CONTROL TECHNOLOGY AND STACK HEIGHT ----------------------------------------------7 2.4 COOLING WATER AND BOILER WATER ------------------------------------------------------7 2.5 GAS COMPOSITION AND CONSUMPTION -----------------------------------------------------7 3. ENVIRONMENTAL BASELINE------------------------------------------------------------7 3.1 GENERAL SETTING ------------------------------------------------------------------7 3.2 TOPOGRAPHY AND HYDROGEOLOGY --------------------------------------------------------7 3.3 CLIMATE -------------------------------------------------------------------------8 3.4 ECOLOGY -------------------------------------------------------------------------8 3.5 SOCIO-ECONOMY --------------------------------------------------------------------8 3.6 PHYSICAL CULTURAL RESOURCES --------------------------------------------------------8 3.7 CURRENT STATUS OF SPACE HEATING -----------------------------------------------------8 3.8 AMBIENT AIR QUALITY ---------------------------------------------------------------8 3.9 SURFACE WATER QUALITY -------------------------------------------------------------8 3.10 ACOUSTIC ENVIRONMENTAL QUALITY -----------------------------------------------------9 3.11 RADIATION ----------------------------------------------------------------------9 3.12 RESPIRATORY DISEASE STATUS --------------------------------------------------------9 3.13 AIR POLLUTION SOURCE -------------------------------------------------------------9 4. ENVIRONMENTAL IMPACT ASSESSMENT AND MITIGATION MEASURES --------------------------9 4.1 IMPACT ASSESSMENT AND MITIGATION MEASURE IN CONSTRUCTION PHASE ---------------------------9 4.2 IMPACT ASSESSMENT AND MITIGATION MEASURES IN OPERATION PHASE ----------------------------11 4.2.1 Impact on Air ------------------------------------------------------------11 4.2.2 Impact on Surface Water --------------------------------------------------12 4.2.3 Impact on Groundwater ----------------------------------------------------12 4.2.4 Impact of Solid Waste ----------------------------------------------------12 4.2.5 Impact of Noise ----------------------------------------------------------12 4.2.6 Impact on Ecology --------------------------------------------------------13 4.2.7 Impact of Radiation and Heat ---------------------------------------------13 4.2.8 Social Impact ------------------------------------------------------------13 4.2.9 Impact on Physical Cultural Resources ------------------------------------13 5. CUMULATIVE IMPACT----------------------------------------------------------------14 6. LAND ACQUISITION AND RESETTLEMENT -----------------------------------------------14 6.1 INTRODUCTION --------------------------------------------------------------------14 6.2 LAND ACQUISITION ----------------------------------------------------------------14 6.3 LIVELIHOOD RECOVERY --------------------------------------------------------------14 6.4 DISADVANTAGED GROUP --------------------------------------------------------------15 7. DUE DILIGENCE REVIEW-------------------------------------------------------------15 8. COMPARISON OF ALTERNATIVES -----------------------------------------------------15 8.1 INTRODUCTION --------------------------------------------------------------------15 8.2 WITH AND WITHOUT PROJECT SCENARIO --------------------------------------------------15 8.3 FUEL TYPE ----------------------------------------------------------------------15 8.4 LOCATION FOR CHP PLANTS ----------------------------------------------------------15 8.4.1 Alternative Locations for Baode CHP Plant --------------------------------15 8.4.2 Alternative Locations for Xiyang CHP Plant -------------------------------16 8.5 TECHNOLOGIES FOR NOX CONTROL ------------------------------------------------------16 8.6 SOURCE AND TREATMENT TECHNOLOGY FOR COOLING WATER--------------------------------------16 8.6.1 Source for cooling water -------------------------------------------------16 8.6.2 Cooling water treatment process ------------------------------------------16 8.7 ALIGNMENTS FOR GAS PIPELINE NETWORK -------------------------------------------------17 8.8 ALIGNMENTS FOR ASSOCIATED PIPELINES FOR CHP COMPONENTS ---------------------------------17 8.8.1 Alignment of pipelines for Baode CHP plant -------------------------------17 8.8.2 Alignment of pipelines for Xiyang CHP plant ------------------------------17 8.9 ALIGNMENT OF ELECTRICITY TRANSMISSION LINES AND LOCATION OF SUB-STATIONS.------------------17 9. RISK ANALYSIS--------------------------------------------------------------------17 10 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE ----------------------------------18 10.1 PUBLIC CONSULTATION -------------------------------------------------------------18 10.2 INFORMATION DISCLOSURE ----------------------------------------------------------18 11 ENVIRONMENTAL MANAGEMENT PLAN ---------------------------------------------------18 11.1 INSTITUTIONAL ARRANGEMENT --------------------------------------------------------18 11.2 MITIGATION MEASURES -------------------------------------------------------------19 11.3 ENVIRONMENTAL MONITORING PLAN AND SOIL CONSERVATION MONITORING PLAN AND COST ESTIMATE -----19 ANNEX 1 NOX DISPERSION GRAPHS ----------------------------------------------------22 ANNEX 2 MAIN MITIGATION MEASURES -------------------------------------------------23 ANNEX 3 INSTITUTIONAL ARRANGEMENT FOR CONSTRUCTION PHASE -------------------------28 1 EXECUTIVE SUMMARY Shanxi Gas Utilization Project 1. INTRODUCTION 1.1 Project Background This proposed project consists of construction of two heat and power cogeneration plants (CHP) in two counties and gas pipelines in four counties in Shanxi Province, including construction of CHP plants, power transmission lines, heating supply pipelines, gas supply pipelines and non-physical components regarding institutional strengthening and project management. The Province of Shanxi has been suffering from serious air pollution which is primarily caused by intensive use of coal in industrial and domestic sectors including space heating. In order to improve air quality, the Shanxi Provincial Government has proposed a series of initiatives for clean air in the province. The Shanxi Gasification Program (the “Program” hereinafter) is one of the action plans among the initiatives, which calls for promoting the use of gas to representing 7.5% of energy consumption in 2015 in the province. This project is an integral part of the Program and has been proposed by Shanxi Provincial Government for partial financing from the World Bank. This project has been classified into Category A, which requires Summary, EIA and EMP, collectively known as the EA documentation, An Environment Assessment (EA) was conducted for each physical component by the Coal Chemistry Institute of China Academy of Sciences. A Social Impact Assessment (SIA) has been prepared by Shanxi Academy of Social Sciences and Macro Research Institute of Shanxi DRC for this project with main findings and conclusions incorporated into the EA documentation. This document is a summary of the EA documentation and the SIA document. 1.2 Environmental Policies, Laws and Regulations 1.2.1 Laws and Regulations The basis of the EIA Reports includes national and local environmental laws, regulations, policies, and the World Bank’s environmental and social safeguard policies. The main applicable laws and regulations include:  Environmental Protection law of the People’s Republic of China, 1989  The Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution, 2000  The Law of the People's Republic of China on Prevention and Control of Water Pollution, 2008  The Law of the People's Republic of China on Prevention and Control of Pollution From Environmental Noise, 1996  The Law of Cultural Recourses Protection of the People's Republic of China, 2007  The Law of the People's Republic of China on Environmental Impact Assessment, 2003  Technical Specifications for Environmental Impact Assessment; and various applicable standards for air, water, and noise. 1.2.2 Safeguard Policies and EHS Guideline  OP 4.01 Environment Assessment;  OP 4.12 Involuntary Resettlement;  OP 4.11 Physical Cultural Resources;  EHS: General EHS Guideline;  EHS: Thermal Power Plants; and  EHS: Electric Power Transmission and Distribution; 1.2.3 Applicable Standards The most important assessment criteria and environmental discharge standards is the Air Pollutants Emission Standard for Thermal Power Plants (GB 13223-2011). During the EA development, this standard has been compared with the limits stipulated by EHS, and the standard with the most stringent requirements for air pollutants emission is then used for assessment for this project. Table 1-1 Air Pollutants Emission Standard Item Unit Air Pollutants Small Combustion Facilities Emission Standard for Emission Guidelines, 2 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Thermal Power Plants turbine, natural gas, =15MW (GB 13223-2011) to<50 MW PM mg/Nm3 5 N/A SO2 mg/Nm3 35 N/A NOx mg/Nm3 50 ( excess O2 15%) 25 ppm (equivalent to 51 mg/Nm3) (excess O2 15%) Blackness -- 1 N/A Thus the Air Pollutants Emission Standard for Thermal Power Plants (GB 13223-2011) is adopted for assessment for this project. Other applicable standards are included in Table 1-2. Table 1-2 Applicable Standards Category Ref. Name of standard Electric-magnetic Radiation Protection 1 Standard(GB8702-88) Environment 2 Groundwater Quality Standard (GB/T14848-93) quality standard 3 Surface Water Quality Standard (GB3838-2002) Acoustic Environment Quality Standard 4 (GB3096-2008) 5 Ambient Air Quality Standard (GB 3095-2012) Air Pollutants Emission Standard for Thermal 1 Power Plants (GB 13223-2011) 2 Limits for Radio Interference from Elevated High Voltage AC Transmission Line (GB 15707-1995) Pollution Control Standard for Storage and 3 Disposal of General Industrial Solid Waste (GB 18597-2001) Pollutant Pollution Control Standard for Storage of 4 discharge Hazardous Waste (GB 18597-2001) standard Quality Standard for Wastewater to be discharged 5 to Municipal Sewers (CJ343-2010) Integrated Wastewater Discharge Standard (GB 6 8978-1996) Noise Limits on Boundaries of Construction Sites 7 (GB12523-2011) Noise Standard on Boundaries of Enterprises 8 (GB12348-2008) 1.3 Assessment Scope, Period and Key Issues The EA covers two kinds of components and the required scoping for each kind of component is: 1) full assessment for CHP components, and 2) partial assessment for gas pipeline network components. The period and, scope and key issues for CHP components and gas supply network components are summarized respectively in Table 1-3 and Table 1-4 below. Table 1-3 EA Scope for CHP Components Environment EA Scope index Construction Phase Operation Phase Air The CHP plants will be Within the square of 6 X6 km2 with located on green field. center on the stacks of the CHP The primary concern is plants and the physical cultural the air-borne dust to be resources to be affected generated from the construction activities. Noise The noise on the Noise on the boundary of the CHP boundary of the plants and the sensitive construction sites; receptors. sensitive receptors near the site and along the associated works (gas pipe, heating pipe, cooling water pipe and access roads) and the electricity transmission lines. Surface Water Construction Wastewater from the operation wastewater and domestic including the brine from the 3 EXECUTIVE SUMMARY Shanxi Gas Utilization Project wastewater demineralization process. Ecology and Site of the CHP plants, Crops within 200 m from the plant Soil Erosion towers for electricity boundary transmission lines and associated works. Solid Waste Construction and Solid waste including the sludge domestic solid waste and hazardous waste Social Land acquisition and Social implications on environment resettlement, affordability, gender issues, extensive social and public health impacts besides the land acquisition and resettlement. Electric-mag None Electric-magnetic impact on the netic operation staff within the CHP environment pants and the sensitive receptors along the electricity transmission line Risk -- Fire and explosion Physical Impacts on the physical Impacts on Diaoyutai Ancient Cultural cultural resources, Rock Cave and core area of Baode Resources* Diaoyutai Ancient Rock Vertebrate Fossil Protection Cave and Baode Area, including acid Vertebrate Fossil precipitation, landscaping and Protection Area, such aesthetic value, vibration. Etc. as vibration, dust, sabotage, etc. Note: *the proposed CHP plant in Baode County is located within the protection area of Diaoyutai Ancient Rock Cave with a distance of 500 m, and the whole territory of Baode County is classified as the Vertebrate Fossil Area protected at provincial level. Table 1-4 EA Scope for Gas Supply Network Components Works EA Scope Phase Air Noise Water Ecology Society Gas Constru Within Within 100 Surface Disused Residen pipeline ction 100 m m from the waters to land 6 m, tial from pipeline be dry settlem the crossed farnmlan ents to pipelin d 4 m, be e woodland affecte 3 m from d the pipeline Operati None None None None End on users Pressure Constru Within Within 100 None Within of gas adjustmen ction 100 m m from the 100 m t cabinet from cabinets from the the cabinets cabinet s Operati None Within 100 None None on m from the cabinets 2. PROJECT DESCRIPTION 2.1 Project Composition The project is intended to increase the gas share on energy consumption and reduce the discharge of air pollutants and GHG through the displacement of coal in Shanxi Province. The location of the Baode and Xiyang CHPs and the sensitive receptors is shown in Figure 2-1 and 2-2 below. The constituents of the project are summarized in Table 2-1 below. 4 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Table 2-1 Project Description CHP Component Composition Service Scope Components Electrici Indust Gas Heating supply Electricity Access ty and heat rial water Source transmission roads generation supply system CHP in (2X42+42) 6 km 10.6 km The heating supply pipe 10 km 680 m, 0.7 million Baode County MW combined- pipeline. pipeline, will be constructed to transmission 10 m wide m2 heating area in cycle units, Treated from the connect the off-site heat line, to Dongguan short term with using air for effluent initial exchange station, and the Transformer the heating load steam from Baode station in branch pipelines and Sub-station at of 33.6 MW; 1.2 condensation Municipal Baode County exchange stations will be 110 kV through million m2 heating WWTP will be under Shanxi constructed by Baode on-site 3X55 MVA area in long term used. Gas Company Construction Bureau booster station with the heating load of 57.6 MW. CHP in (2X42+42) 1.5 km 1 km The heating supply pipe 11 km 400 m 0.825 million Xiyang MW combined- pipeline. pipeline, will be constructed to transmission and 490 m m2 heating area, County cycle units, Treated from the connect the off-site heat line, to Huangyan respectivel with the heating using air for effluent Yangquan- exchange station, and the Transformer y load of 55.12 MW. steam from Xiyang Pingding- branch pipelines and Sub-station at connecting condensation Municipal Xiayang gas exchange stations will be 110 kV through the two WWTP will be trunk pipe constructed by Xiyang on-site 3X55 MVA gates of the used. under Shanxi Construction Bureau booster station plant Gas Company Gas Location Capacity Composition Gas source Service area Pipeline Network Components Xiangyuan Located in Annual New construction of 83.2 Tunliu-Xiangyua Main industries, commercial Gas Supply Xiangyuan County volume is km pipeline at 0.8 MPa; n pipeline under business and residents. The gas Network and connects each 6295X104 Nm3 11 pressure adjustment Shanxi Gas Company volume supplied to industrial towns and villages cabinets; users versus domestic users is auto-monitoring system 37:63. for gas network Qingxu Located in Annual New construction of 36 km The Gas Main industries, commercial Gas Supply Qingxu County and volume is pipeline at 0.4 MPa; transmission Station business and residents. The gas Network passes through Jiyi 217.23X104 Nm3 auto-monitoring system in Qingxu under Shanxi volume supplied to industrial Town, for gas network Gas COmpany users versus domestic users is 28:72. Changzhi Located in Annual New construction of 52.7 Jincheng-Changz Main industries, commercial Gas Supply Changzhi County and volume is km pipeline at 0.8 MPa; hi pipeline under business and residents. The gas Network connects each towns 8972.71X104 Nm3 12 pressure adjustment Sanjin New Energy volume supplied to industrial and villages cabinets; Development Company users versus domestic users is auto-monitoring system 70:30. 5 EXECUTIVE SUMMARY Shanxi Gas Utilization Project for gas network Tunliu Located in Annual New construction of 86.4 Tunliu-Xiangyua Main industries, commercial Gas Supply Tunliu County and volume is km trunk pipeline at 0.8 MPa; n pipeline under business and residents. The gas Network connects each towns 8486.62X104 Nm3 11 pressure adjustment Shanxi gas Company volume supplied to industrial and villages cabinets; users versus domestic users is auto-monitoring system 87:13. for gas network Dongguan 110KV Baode Baode transforme County Country Sewage XiYang Country · Xiyang County XiYang County Baode CHP County CHP Huangyan Subproject 220KV transforme r station First Station in Baode of Shanxi Natural Gas Company Lege nd Legend Power Gas transmi supp Electric Water ssion ly transmission supply line pipe Gas supply pipeli pipeline ne Vertebrate Project site paleontology Figure 2-1 Location of Baode CHP Figure 2-2 Location of Xiyang CHP 6 EXECUTIVE SUMMARY Shanxi Gas Utilization Project 2.2 Electricity and Heat Production Technology Combined-cycle technology is adopted to co-generate the electricity and heat which will burn gas in a combustion chamber, and the exhaust gas will be used to drive a turbine at a capacity of 42 MW. One waste heat boiler will be used to recover energy from the turbine exhaust gas from two combustion chambers for the production of steam, which will then be used to drive another turbine with a capacity of 42 WM. The heating efficiency of Baode CHP and Xiyang CHP is 57.05% and 55.06% respectively and the heating/electricity ratio for Baode CHP and Xiyang CHP is 30.198% and 30.89% respectively, which comply with the national requirements for development of thermal power plants using turbines. 2.3 NOx Control Technology and Stack Height Low NOx burner is adopted for NOx control to meet the NOx emission standard at source which is widely used and commercially proven, and cost-effective based on the alternative comparison process. One steel stack will be constructed for each combined-cycle unit at a height of 60 m, which has been confirmed by the calculation result based on the GIIP of EHS. 2.4 Cooling water and Boiler Water As Shanxi Province is located in an arid area, the relevant national strategy encourages the use of the treated effluent from local municipal WWTP as the source of water for industrial use in thermal power plants. The treated effluent from the municipal WWTP will be further treated with coagulation and sedimentation process in the on-site process water treatment station to the quality for the recycling cooling water. Advanced treatment technology based on the combination of membrane and electrodeionization (a variation of electrodialysis) will be adopted to process the part of the treated effluent from the on-site process water treatment station to the required quality for boilers. 2.5 Gas Composition and Consumption The main composition of the gases to be used for the CHP components is given in Table 2-2 and the projected consumption of gas for the two CHP components is given in Table 2-3 below respectively. Table 2-2 Gas Composition for CHP Components Composition Baode CHP Xiyang CHP CH4 93.41% 97.89% CO2 1.823% 1.395% SO2 0 0 H2S 0 0 N2 4.117% 1.860% Lower heating 32,500 32,630 Value (kJ/Nm3) Table 2-3 Gas Consumption for CHP Components Componen Item Unit Value Annual t Heating Non-heating Total period period Baode Gas consumption Nm3/h 13,028 12,118 -- CHP per unit per hour Gas consumption 100 0.93 0.50 1.43 per 2 units per million hour Nm3/a Xiyang Gas consumption Nm3/h 13,028 12,118 -- CHP per unit per hour Gas consumption 100 0.82 0.66 1.48 per 2 units per million hour Nm3/a 3. ENVIRONMENTAL BASELINE 3.1 General Setting Shanxi Province is in northern China within the range N 34O34’ and N 40O44’, and E 114O32’ and 1E 110O15’. The province of Shanxi covers an area of 156,700 km2 representing 1.6% of the total area of China, and the total population of the province is 36.108 million in the 11 municipalities and 119 counties. 3.2 Topography and Hydrogeology Shanxi Province is located on the Loess Plateau with a rolling terrain. Shanxi has a complex landform formed with a variety of mountains, low hills, plateaus, basins and terraces. As the province of Shanxi extends 7 EXECUTIVE SUMMARY Shanxi Gas Utilization Project along a narrow area, which slopes from north to south, between the Yellow River and Taihang Mountains, the mountain area accounts for over 70% of the total area of Shanxi Province. The groundwater layers are very deep, even in the alluvial areas the drilling exercise shows that the shallow aquifer is more than 30 m from the ground. 3.3 Climate Although Shanxi Province is not far from the sea, barriered by the high mountains, the temperate continental climate dominates. The annual temperature averages 3OC-14OC and the annual precipitation averages 400 mm-600 mm with 60% being distributed within the period from June to August The data collected from Baode and Xiyang counties show that the wind speed averages 2 m/s in Baode and 1.4 m/s in Xiyang, and the frequency of calm wind averages 27.7% in Baode County and 30.2% in Xiyang County. 3.4 Ecology Arid climate, strong rainfall in summer and less vegetative coverage in the province of Shanxi leads to severe situation of soil erosion. Baode County is classified into the area with high degree of soil erosion and Xiyang County falls into the area with moderate degree of soil erosion. The proposed project is located in the area already developed or disturbed by human activities, thus the artificial ecological characteristics dominate the project area. 3.5 Socio-economy There are 11 municipalities under the jurisdiction of Shanxi Province, the hometown of 36 million people. Shanxi Province is renowned for brilliant reserve of coal, aluminum ore and iron ore, particularly the total reserve of coal is as high as 267.38 billion ton, accounting for 20% of the national total. The industrial sector is centered on coal mining, coke production, metallurgy and electricity generation, which is being re-oriented by the industrial restructuring plan of the province toward the coal chemistry, mechanical equipment, new materials and tourism. In 2012 the disposable income per capita of urban residents is RMB 20,411 while the net income of rural residents being RMB 6,356. 3.6 Physical Cultural Resources This proposed project triggers the OP 4.11 because the whole territory of Baode County has been classified into the Vertebrate Fossil Area protected at provincial level and the Baode CHP plant will be located in the protection area of Diaoyutai Rock Cave protected at municipal level. Diaoyutai Rock Cave was built in 1645 on a rock mountain facing the Yellow River and was listed in the protected relics inventory by Xinzhou Municipality for its historic, architectural and aesthetical values. The protection area of Diaoyutai Rock Cave is 2,000 m from the center on its east, west and north, and 1,000 m on south. The proposed CHP plant is 500 m from the rock cave but with a high mountain between them. The whole territory of Daode County has been zoned for protection of Vertebrate Fossil by Shanxi Provincial Government at provincial level in 1961. The Daode CHP plant is on the edge of the county and 11.3 km from its core areas. In addition, Baode CHP component will involve 4 family tombs and Xiyang CHP components involving 11 family tombs. 3.7 Current status of space heating The district heating service covers only 48.9% of the area requiring space heating in the urban area of Baode County. Although Xiyang county uses district heating service to cover most of its urban area, quickly increasing demand for space heating resulting from urban upgrading process leads to big gap to be satisfied by district heating. The proposed CHP plants are planned to supply heating service to the western urban area of Baode County and the southeastern urban area of Xiyang County respectively where the residences are not connected to district heating service and currently heated by household coal-firing stoves. 3.8 Ambient Air Quality Local environmental monitoring stations were contracted to conduct the air quality monitoring program for heating season in early 2013 and late 2012. The monitoring results indicate that the SO2 concentration in Baode County failed to meet the required standard, while in other project counties the PM10 exceeding the standard. 3.9 Surface Water Quality The monitoring results show that the water quality in Songxi River where 8 EXECUTIVE SUMMARY Shanxi Gas Utilization Project the Xiyang CHP plant will discharge brine water meets the Class V of Surface Water Quality Standard, the lowest requirement for beneficial use of surface water. The water quality in other surface waters to be affected by the project via pipeline construction meet the required standard. 3.10 Acoustic Environmental Quality As the project is mainly located in a rural setting, the acoustic quality is fairly good. The monitoring results show that the noise on the site boundary for the two CHP plants meets the Class II standard while the noise on the sensitive villages meeting the Class I standard. The noise level in the four gas pipeline network components meet the required standard except for Xijia Primary School in Tunliu County where the traffic is very busy on the roads in close proximity of this school. 3.11 Radiation In order to understand the current situation of electric field intensity, magnetic induction intensity and radio interference level in the assessment area, an electromagnetic environment quality monitoring plan was undertaken during 9-11 July, 2012 for the CHP components, and the results show that the electromagnetic environment quality in the assessment area is good and meet the relevant standard. 3.12 Respiratory Disease Status The typical harm of air pollution to human health is respiratory diseases and physiological dysfunction. The statistical information for respiratory disease respectively for heating and non-heating seasons in the six project counties in the hospitals has been collected. The data show that the number of outpatients of respiratory diseases significantly increased in heating season against that in non-heating season. However the data also show a trend that the total number of outpatients of respiratory diseases decreased from 2008 to 2012 except that in Baode County. This is may be due to the continuous efforts paid by local governments to clean the air recently and this proposed project is expected to enhance such trend. 3.13 Air Pollution Source One of the primary causes for severe air pollution in Shanxi is the intensive consumption of coal. Coal is the fundamental energy source for Shanxi Province, offering 98% of total energy consumed in the province. The information of coal consumption in 2010 in Shanxi Province is given in Table 3-1 below. Table 3-1 Coal Consumption and Air Pollutants Emission in 2011 in Shanxi (unit 10,000 t) Secto Coal Consumed SO2 load NO2 load PM load emitted r emitted emitted Indus 27,098 127.87 121.94 66.86 try Resid 1,082 15.93 2.16 10.82 ent Total 28,180 143.80 124.10 77.68 The industrial sector consumed 96% of the coal used in the province, thus becoming the overriding source for air pollution. The four gas pipeline network components are intended to supply 80% of the total gas volume to the industries, hence helping speed up the energy re-structuring in the project counties. Although the residential sector only consumed a very minor percentage of the coal, a very good marginal environmental benefit will be achieved by replacing the coal-firing stoves for cocking and space heating with gas stove and district heating by the project. 4. ENVIRONMENTAL IMPACT ASSESSMENT and Mitigation Measures 4.1 Impact Assessment and Mitigation Measure in Construction Phase Potential adverse impacts of the project in the construction phase are summarized in Table 4-1. Table 4-1 Impacts and Mitigation Measure in Construction Phase No Issue Negative impacts .  In CHP components, it will be mainly caused by air-borne dust generated from site cleaning, Air excavation and refilling, and material 1 pollution transportation. The project will purchase commercial concrete thus eliminating the air pollution source of on-site mixing stations. In addition, the kitchens of 9 EXECUTIVE SUMMARY Shanxi Gas Utilization Project the workers’ camps will generate smoke. The affected area is within 50 m from the construction sites. The sensitive receptors, Gucheng Village is 368 m from the construction site boundary of Baode CHP, and the village in the closest proximity of Xiyang CHP plant site is 266 m from the site, therefore the impact of air pollution on sensitive receptors is minor.  In Gas Network Components, it will be caused mainly by air-borne dust and exhaust gas of equipment and welding of pipes. However the construction on each section is planned to be 1 or 2 days, and the impact on air quality will immediately disappear once after the construction is completed.  In CHP Components, the wastewater will be mainly generated from the workers’ camps, material and equipment washing. The quantity of the wastewater is small, estimated at 5 m3/d from the workers’ camps and 3 m3/d from construction activity. The wastewater will be well managed by providing collection and disposal methods for each type of wastewater: The construction wastewater will be settled to reduce SS before being reused on site, domestic wastewater will be discharged into temporary lavatories which will be cleaned routinely. 2 Wastewater  In Gas Network Components, the workers will rent the nearby residential houses in villages and the wastewater will be discharged into local sewerage system. The pressure testing of the pipeline will use air instead of water, avoiding the generation of wastewater. Directional drilling will be used to cross Zhang River avoiding the disturbance of the water in the river. The pipeline will cross the Xiangyu River where the riverbed is exposed in dry season. With good management and scheduling of the construction, such impacts on surface water quality will be mitigated to an acceptable level.  The shallow aquifer is deep in the project area. The 3 Groundwater wastewater from the construction will contain SS and oil which will not reach the groundwater aquifer through absorption by soil layer.  The construction solid waste and spoil will be generated from the excavation and domestic solid waste from the workers’ camps requiring disposal. The earth 4 Solid waste work has been carefully balanced in the CHP and pipeline network components, avoiding the need for borrow pits and the disposal of spoil. The mud generated from the directional drilling operation will be refilled with spoil for site grading.  In CHP components, the operation of the construction equipment and movement of vehicles are the main source for noise. The piling stage will have the most severe impact on the village nearby in night. However, prohibition of piling operation in night will avoid the severe impact on the villages. The combination of equipment will not cause the noise level exceed the 5 Noise standard in the closest village.  In Gas Pipeline Network Components, the number of operation equipment is much less than that used in CHP components, and the intensity of noise source is much weak. The period of the noise generation in each construction section is limited to 2 days. The noise impact is minor due to limited period.  As CHP components are located in artificial ecology without presence of rare plants and big wild animals, the main impact on ecology is limited to soil erosion. 6 Ecology Site grading, temporary stockpiling of soil, construction of associated works and transmission lines will collectively cause the new loss of soil 1,386.23 t in Baode CHP and 952.33 t in Xiyang CHP respectively in construction and vegetative recovery 10 EXECUTIVE SUMMARY Shanxi Gas Utilization Project stage. A Soil Conservation Plan has been developed to mitigate and monitor the soil erosion caused in construction stage to ensure that the soil erosion be minimized and after 3-year recovery period the soil erosion will recover at least to the original status.  The Gas Pipeline Network Components will also cause soil erosion by disturbing soil and eliminating vegetation. However as the construction period of each section is very short, the impact on soil erosion is minor.  The associated works under the CHP components will avoid the villages and use pipe-jacking technique to cross the main roads, the small rural roads will be broken for laying pipeline which will take very short time, thus will not cause traffic congestion and not severely affect the daily activities of the residents.  One workers’ camp will be established on each of the construction site of CHP plant, which would cause spread of disease misconduct and conflict with host village. A Workers’ Camp Management Plan has been developed which include the codes of good behavior, 7. Socio-econo supply of sanitation and management of waste so that my the impact can be mitigated effectively.  The major social impact of Gas Pipeline Network Components includes the traffic blocking, interruption of infrastructure and agricultural irrigation facilities and safety of traffic, etc. The impacts will be addressed through careful scheduling of construction and cooperation with local departments on traffic control and infrastructure service.  The project will hire a number of local people in construction, increasing the job opportunity. Power  Construction of transmission lines will cause loss of 8 transmissio vegetation, and disturbance of soil, generation of n lines solid waste, dust and noise.  The construction of water pipelines will cause dust, solid waste, removal of vegetation, noise and wastewater;  The water pipeline for Baode CHP will be close to the Water Diaoyutai Rock Cave, vibration and solid waste and 9. potential misconduct of the construction staff may pipeline damage the rock cave. As the pipeline is small, and will be constructed without any mechanical equipment, the vibration impact will be avoided. The solid waste and conduct management requirements have been developed and included in the HCR Management Plan. An ECOP has been developed for mitigating the general impacts during the construction of the project and a site-specific mitigation plan developed for the sensitive receptors, and incorporated as an integral part of the EIA and EMP. 4.2 Impact Assessment and Mitigation Measures in Operation Phase 4.2.1 Impact on Air The air pollutant of primary concern in the operation stage of CHP plants is NOx. A steady-state dispersion model recommended in the EA Technical Guideline for Ambient Air (HJ2.2-2008) issued by the Ministry of Environmental Protection is used to predict the NOx concentration distribution within the assessment area. The modeling results show that the Max. hourly concentration of NOx for Baode CHP plant is 572.8397 μg/m3 on a disused land 1340 m WNW from the stack; for Xiyang CHP plant is 379.7832μg/m3 on a disused land 1780 m SE from the stack. The Max. daily and Max. yearly concentrations of NOx in the assessment area and the sensitive receptors comply with the required standard. The predicted NOx dispersion contour graphs for the two CHPs are attached in Annex 1. The project will bring primary benefits after the project becomes operational. The main positive impacts include saving of coal, reduction of air pollution loads and GHG. The air pollutants loads and GHG reduced by the project as a whole is estimated to be SO2: 2328 t/a; PM: 608 t/a; 11 EXECUTIVE SUMMARY Shanxi Gas Utilization Project NOx: 1892 t/a; and CO2: 1.05 million t/a. As the gas pipeline network components will not emit any waste gas, thus will not cause adverse impact on the ambient air quality. 4.2.2 Impact on Surface Water During the operation of CHP plant in Baode County, the brine water from demineralization process will be 4.05 t/h in heating season and 2.05 t/h in non-heating season respectively requiring treatment and disposal. The wastewater from other sections requiring treatment is 3.24 t/h. As Baode CHP is adjacent to the Yellow River, the local government requires that the wastewater be treated to Class 1 B quality before discharged into the municipal sewers and direct discharge of wastewater, even brine water from the CHP plant, into the Yellow River is not permitted. An on-site WWT station using A/O activated sludge process will be built to treat 3.24 t/h wastewater which will be discharged together with the brine water into the municipal WWTP for further treatment via sewers. The impact of brine water on the Baode Municipal WWTP receiving the wastetwaer and brine water from Baode CHP plant has been analyzed. The brine water will increase the TDS concentration in the municipal WWTP from 400 mg/l to 417.1 mg/l, thus will not affect the function of the activated sludge process of the municipal WWTP. In addition, the Baode CHP will only use 34.53% of the effluent from the municipal WWTP with the remaining to be discharged into the Yellow River, the impact of the accumulated TDS in the effluent on the demineralization process can be negligible. During the operation of CHP plant in Xiyang County, the brine water from the demineralization process will be 4.05 t/h in heating season and 2.05 t/h in non-heating season respectively requiring treatment. The wastewater from other sections requiring treatment is 3.24 t/h. The brine water will be discharged directly into the Songxi River, and the 3.24 t/h wastewater will be treated by the on-site WWT station to Class 1B quality and mixed with 3 t/h wastewater from the process water treatment section into the Xiyang Municipal WWTP via sewers. The wastewater from Xiyang CHP plant will only increase the flow to be treated by Xiyang municipal WWTP by 3.5%, thus the impact on the operation of the municipal WWTP is minor. As the Songxi River is zoned only for agricultural irrigation without any function sustaining aquatic environment, and the brine water from Xiyang CHP plant will only increase the TDS concentration by 1% in the river, it is thus expected that the brine water will not affect the function of the Songxi River. The gas pipeline network components will not generate wastewater during operation stage, thus will not cause any impact on surface waters. 4.2.3 Impact on Groundwater The domestic solid waste and waste lubricants may cause pollution to groundwater if they are not carefully collected and disposed of in the CHP plants. The domestic solid waste will be collected to the designated dustbins by full-time staff and the lined storage tanks will be established for waste lubricants on site. 4.2.4 Impact of Solid Waste The solid waste to be generated during the operation of the two CHP plants is summarized in Table 4-2 below. Table 4-2 Solid Waste from Two CHP Components Solid waste Quantity Type Disposal method (t/a) Domestic waste 14.4 General To be collected and disposed waste by local sanitation department Waste lubricants 0.40 Hazardous To be disposed of by qualified waste agency Waste cotton 0.06 Hazardous To be disposed of by qualified yarn waste agency Sludge from WWT 51 (98% General To be collected and disposed station moisture) waste by local sanitation agency Operation of gas pipeline network components will not generate any solid waste. 4.2.5 Impact of Noise The noise source of gas pipeline network components is only the cabinets which will generate the noise level less than 55 dB(A). It is estimated that the noise level at 3 m from the cabinets will meet the Class 1 standard. As the pressure adjustment cabinets are carefully located to keep the 12 EXECUTIVE SUMMARY Shanxi Gas Utilization Project distance at least 200 m from the villages, there will not be any impact on the acoustic quality in the sensitive receptors. The noise level on the site boundary and the sensitive receptors has been projected for the CHP components in operation stage: 1) For Baode CHP plant, the noise level on the boundary is lower than the standard by 4.8dB(A) to 6.2 dB(A), and the noise level on Gucheng Village, the closet receptor, is 43.8 dB(A) in day time and 44.3 dB(A) in night time, both meeting the standard for Class 1 area. The release of air from the boilers will cause burst noise with seconds of period but the frequency is very low. It is estimated that the overlapping effect of burst noise and routine noise on Gucheng Village will exceed the standard for night by 2.1 dB(A) but is still in compliance with the requirement that the incremental value by burst noise should not exceed the standard by 15 dB(A). 2) For Xiyang CHP plant, the noise level on the boundary is lower than the standard by 9.8dB(A) to 11.7 dB(A), and the noise level on Houzhuang Village and Houlongfengnao Village meet the standard for Class 1 area. The burst noise from boilers will increase the noise level on Houzhuang Village by 3.4 dB(A) and on Houlongfengnao Village by 2.0 dB(A) respectively. 4.2.6 Impact on Ecology The gas pipeline network components will not cause any impact on ecology. The main impact on ecology from the operation of the CHP plants is the effect of NOx on vegetation. It is estimated that the Max. yearly and Max. daily concentration of NOx is 0.014 mg/Nm3 and 0.071 mg/Nm3 respectively, much lower than the threshold for phytotoxicity of Nox at the range of 3-5 mg/Nm3. 4.2.7 Impact of Radiation and Heat It is estimated that the Max. value of electric field and the Max. value of magnetic field on the voltage booster, along the 110 kV transmission line and the sensitive receptors is 56.5 V/m and 0.071uT respectively. These values are in compliance with the applicable standards. The max. value of radio interference at 0.5 MHz is estimated at 41.0 dB(uV/m), which meet the applicable standard. Occupational exposure to heat occurs during operation and maintenance of combustion units, pipes, and related hot equipment will cause a number of health effects on the operating staff. The occupation impact of heat can be well managed through considering and implementing the recommendations of EHS Guideline for Thermal Power Plants. 4.2.8 Social Impact The positive social impacts to be presented by the operation of the project include: 1) improved living environment and quality for residents; 2) reduced burden of housework for women; 3) reduced morbidity and improved health condition for residents; 4) reduced expenditure for space heating; 5) increased employment opportunities; 6) promotion of pollution reduction for industries; and 7) increased awareness and capability of women in public affairs. The negative social impacts include 1) land acquisition and occupation;2) affordability for poor families; and 3) re-employment risk for women. 4.2.9 Impact on Physical Cultural Resources Baode CHP plant is 11.3 km from the core area of the Vertebrate Fossil Area and 500 m from the Diaoyutai Rock Cave, the water supply pipeline will be constructed along the existing highway G249 with the closest distance to the cave at 20 m. During the construction of Baode CHP plant, it is expected that the vibration will not cause severe impact on the Diaoyutai Rock Cave. As the water supply pipeline is small requiring small quantity of earth work, the impact of dust and vibration is minor. In addition, A Physical Cultural Resources Management Plan has been prepared which includes the mitigation measures, institutional strengthening, the procedure of Chance Find will be applied throughout the construction stage of Baode CHP plant and its associated works, and monitoring plan. There is a high mountain between the CHP plant and the Diaoyutai Rock Cave, the image of the CHP plant will be barriered visually by the mountain for the visitors of the rock cave. Thus the impact on the landscape and aesthetical value of the Diaoyutai Rock Cave is minor. The modeling results for NOx precipitation on the Diaoyutai Rock Cave 13 EXECUTIVE SUMMARY Shanxi Gas Utilization Project and the core area of the Vertebrate Fossil Area show that the impact of acid precipitation on the two receptors is very small. Given that the Baode CHP will use gas to replace coal, the acid precipitation is much less than the coal-firing plants. The project will bring remarkable positive impact on the two physical cultural resources. The project will involve 15 family tombs. The compensation for the relocation of the tombs has been considered in the RAP. 5. Cumulative Impact Shanxi Province has developed an ambitious target for air pollution load reduction through its Twelfth Five Year Plan for Environmental Protection which calls for reduction of NOx, SO2 and PM by 172,499 t/a, 162,494 t/a and 116,820 t/a respectively during the 5 years. In response to the Plan, a series of action plans have been initiated including the SHanxi Gasification Program. This proposed project is an integral part of the Shanxi Gasification Program and contribution of the proposed project and the Program to the total mass load production targets of Shanxi Province are given in Table 5-1 below. Table 5-1 Contribution of the Project Program Air Pollution Load Contribution to the Target of Reduction (t/a) 12th Five Year Plan (%) Shanxi Gas SO2: 2,328 1.4 Utilization PM: 608 0.5 Project NOx: 1,892 1.1 CO2: 1，046，700 N/A Shanxi SO2: 69,189 42.5 Gasification PM: 23,387 23.4 Program NOx: 89,460 51.9 CO2: N/A N/A Another cumulative impact of concern is the safety and security of the whole gas network in the province with which the Project will be connected. Beijing Gas and Heating Engineering Design Institute has been contracted to conduct the safety and security assessment of the provincial gas network using TGNET model with the gas pressure and velocity being the limiting factors to model the safety situation when the whole provincial gas network is built. The main findings are that there will not be any explosion and leakage risk due to over-pressure; on the contrary, there will be some lower pressure areas on the gas network. This project will also cause social cumulative impacts, including the affordability issue and the gas supply balance within the whole province. However these impacts can be mitigated by subsidies for poor families and careful planning and design of the gas pipeline network. 6. Land Acquisition and Resettlement 6.1 Introduction According to the data collected by resettlement survey, the impacts area will cover 162 villages in 35 towns. The six components will neither involve land occupation in the natural reserves or forest parks, nor demolition of structures. 6.2 Land acquisition The land to be permanently acquired by this project is 210.6 mu in total, including 146.3 mu dry farmland and 45.21 mu non-cultivated land; 1.21 mu garden plots, 5 mu paddy field and 12.82 mu rural roads. In addition, construction stage will require the temporary occupation of land totally of 3501.06 mu, including 2228.5 mu dry farmland, 336 mu vegetable farm, 103.5 mu garden plots, 90 mu woods land, 136.71 mu urban roads, 37.5 mu rural roads, and 568.86 un-cultivated land. Totally the land acquisition will affect 4608 people in 1265 households, with 256 people in 80 households to be affected by permanent land acquisition, and 4352 people in 1185 households by temporary land occupation. All of the land, trees and other attachments will be compensated at the replacement cost. 6.3 Livelihood Recovery According to the survey, in Houzhuang Village 85 people in 34 households will be affected by permanent land acquisition; among them 30% of the 14 EXECUTIVE SUMMARY Shanxi Gas Utilization Project households will lose over 50% land, 70% households will lose 20%-30% land. In Gucheng Village, 171 people in 46 households will be affected by permanent land acquisition; among them 10% of the households will lose over 50% land, 90% households will lose 20%-30% land. None of the households will lose all of their land. The land acquisition will cause 46 households lose 5% of their annual income. Therefore the impact of land acquisition on the households’ income is minor under the CHP components. The households affected will invest most of the compensation funds into their business which would ensure that their livelihood will recover. The impact of land acquisition under the four gas pipeline network components is small and can be compensated by funds and construction stage will create more employment opportunities for the people to ensure their income no worse than before the project. 6.4 Disadvantaged Group According to the survey, there are no ethnic minorities to be affected by the project. The statistical survey indicates that the disadvantaged people is only 4.8% of the people surveyed under the four gas pipeline network components and 8.2% under the CHP component. The villages will allocate part of the compensation funds to support these disadvantaged families and the project owner will provide job opportunities to the families in construction phase. 7. Due Diligence Review A due diligence review has been conducted for the critical issues that would affect the performance of the project and the findings are as follows:  The Baode and Xiyang municipal WWTPs receiving the wastewater from the project, their environmental performance is in compliance with the domestic requirements;  The due diligence review on the small coal-firing boilers provides the findings that there are no small boilers to be dismantled within the service scope of the project.  The gas sources for the six components have been built and become operational except for the gate station for Xiangyuan Gas Pipeline Network Component which will be completed in Dec. 2013.  The facilities to receive and dispose of the sludge, domestic solid waste and hazardous wastes to be generated from this project are designed and constructed to the required environmental standards, and have adequate capacity to accommodate the wastes from the project. 8. Comparison of Alternatives 8.1 Introduction During project development, various alternatives have been screened and compared with technical, economic and environmental criteria. In terms of the environmental assessment of alternatives, the primary objective was to identify and adopt options with the least adverse environmental impacts. 8.2 With and Without Project Scenario The scenarios of With and Without Project have been considered and compared. Although the With Project scenario will cause environmental impacts on noise, water, solid waste, and ecology in the project area, these impacts can be mitigated to an acceptable level through carefully designed mitigation measures. The positive impact to be brought by the scenario of With Project obviously overweight the negative impacts and will promote the local economy and living standard of the people, as well as reduce the air pollution and GHG emission. 8.3 Fuel Type Two heating fuel options were considered and compared based on the above criteria. They are Option1- coal and Option 2- natural gas. Option 1 is considered to be the preferred option because it is clean energy which is in line with the national economy restructuring plan while causing much less environmental impacts than coal firing plants in terms of air pollutants emission, land occupation, and capital and option cost. 8.4 Location for CHP Plants 8.4.1 Alternative Locations for Baode CHP Plant The urban planning of Baode County is intended to expand the county toward the west, and the associated urban heating planning thus requires that the heating sources be located respectively on the west end and east end 15 EXECUTIVE SUMMARY Shanxi Gas Utilization Project of the county to ensure the convenient connection of the service scopes. Baode County has already built a district heating source on its northeast servicing the eastern part of the county. This proposed Baode CHP plant is planned to provide district heating service to the western part of the county. However, the urban planning requires that the new heating source be located outside of the urban planning area. Therefore the alternative locations for the proposed Baode CHP plant has to be selected out of the urban planning area of the county. The northwest boundary of the urban planning area is the Yellow River which is also the province boundary between Shanxi Province and Shaanxi Province. The southeastern part to the urban planning area is a mountain region with highly rolling terrain which would cause severe soil erosion, geo-risk and irreversible ecological damage, and tremendous capital investment if the CHP is located here. The eastern boundary of the protection area of Diaoyutai Rock Cave coincides with the western boundary of the urban planning area of the county. Thus the alternative locations for the CHP plant have to be selected within the protection area of Diaoyutai Rock Cave. Based on consultation with relevant experts and departments, two alternative locations have been selected for further comparison: Option 1-Gucheng Village (368 m south west to Gucheng Village); Option 2-Jiaonigeda Village (500 m west to Jiaonigeda Village). Option 1 is considered to be the preferred option because it will cause less soil erosion and less occupation of farmland, no need for high site grading and no impact on the landscaping and aesthetical value of Diaoyutai Rock Cave. 8.4.2 Alternative Locations for Xiyang CHP Plant Two alternative locations were seleceted for further comparison: Option 1-Houzhuang Village (266m northeast to Houzhuang Village); and Option 2 –flooding plain of Songxi River. Option 1 is considered to be the preferred option because it will require less farmland and less capital investment, cause less soil erosion and no need for high site grading. 8.5 Technologies for NOx Control The criteria for selection and comparison of the alternative technologies for NOx control is as follows: Achieving emissions levels based on commercially proven and widely used technologies; Reducing mass loading to the environment to acceptable levels; Following current regulatory and technology trends; Being proven cost-effective; Promoting the use of cleaner fuels and good management practices; and Supporting competitive bidding. Based on the above criteria and the EHS Guideline, two alternative technologies were selected for further comparison: Option 1-Dry Low N burner; Option 2-Selective Catalytic Reduction. As Option 2 will cause high capital and operation cost, and high risk of on-site storage of liquefied NH3 leading to emission of fugitive NH3 and catalyst; but Option 1 will avoid all of the adverse impacts of the option 2. Option 1 is therefore considered to be the preferred option. 8.6 Source and treatment technology for cooling water 8.6.1 Source for cooling water Shanxi Province is located in an arid place; the water resource per capita is only 466 m3, 17% of the national average and 4% of the world average. The sector policy developed by the State DRC requires that in the arid regions of China, for new or expended thermal power plants, abstraction from groundwater be forbidden, abstraction of surface water be restricted and reuse of treated effluent from municipal WWTP be encouraged. Thus two alternatives of cooling water sources were developed for further comparison: Option 1- treated effluent from municipal WWTP; and Option 2-municipal fresh water. Option 1 is considered to be the preferred option because it is in compliance with the national sectoral policy and in dry season the water quantity can be guaranteed. 8.6.2 Cooling water treatment process Two alternative processes for cooling water were developed for further comparison. Option 1-coagulation and settlement and filtration in on-site treatment station with partial effluent to be used as recycling cooling water, and partial effluent will be further processed with carbon filtration + ultra filtration + RO + EDI to the quality for boiler water; 16 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Option 2-oagulation and settlement and filtration in on-site treatment station with partial effluent to be used as recycling cooling water, and partial effluent will be further processed with carbon filtration + ultra filtration + RO + ion resin exchange to the quality for boiler water. Option 1 is considered to be the preferred option, because it requires less land and cost, and easy operation without discharge of wastewater from regeneration of resin. 8.7 Alignments for gas pipeline network Two alternative alignments for gas pipeline network were developed for further comparison: Option 1-brached system; and Option 2-ring system. Option 1 is considered to be the preferred option because it requires less land occupation thus causing less soil erosion, shorter period of construction and less cost. 8.8 Alignments for associated pipelines for CHP components 8.8.1 Alignment of pipelines for Baode CHP plant As there is an existing high way G249 passing through the project area. The associated waster pipelines will be laid along this highway, so as to minimize the impact of soil erosion. Otherwise the pipelines have to be constructed though the mountain area causing severe ecological impact. Thus it is the sole option for Baode component. 8.8.2 Alignment of pipelines for Xiyang CHP plant Two alternative alignments for the associated water pipelines were developed for comparison. The Option 1 is considered to be the preferred option due to less people to be affected and less temporary occupation of land, and less soil erosion than Option 2. The gas trunk pipe from Yangquan to Xiyang has preserved a joint valve for Xiyang CHP plant. This joint valve is only 1 km from the plant. Therefore the alignment of the gas pipeline is the sole option. 8.9 Alignment of electricity transmission lines and location of sub-stations. The options for alignment of electricity transmission lines for the two CHP plants were developed and both are to be connected to the existing sub-stations. Comparison of the options recommends the preferred option with the least land occupation, least cost and soil erosion. 9. Risk Analysis Beijing Dafei Risk Assessment Company has been contracted to prepare the Risk Assessment Report for domestic approval. This chapter only includes the main content, findings and recommendations of this report. The procedures for risk assessment required by risk assessment guideline of China has been followed. In the risk screening procedure, the potential risks associated with the CHP plants and gas pipelines have been identified respectively to be occupational damages, and leakage of pipelines due to the quality control problem in construction stage; The guideline only identifies the gas storage tank with a volume of over 10 tons, and the larger gas pipelines within public areas rather than within plant boundary, as well as the bigger waste gas boilers, as the critical sources of risk in operation phase. Because the project CHP plants will not incorporate gas storage tanks, the critical sources for the risks are the waste gas boilers under the CHP components and the gas pipeline with DN more than 200 mm under the gas network components. The probabilities of the risks and the radius of buffer area have been estimated. Based on the layout of the CHP plants and the alignments of the gas pipelines under the pipeline network components, the aftermath of the risks have been estimated also. A Safety Management Plan has been prepared to cope with these potential risks which include the institutional arrangement, mitigation measures and management system, emergency response plan, training plan, community awareness and education program and monitoring plan. 17 EXECUTIVE SUMMARY Shanxi Gas Utilization Project 10 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 10.1 Public Consultation In accordance with the requirements of the China’s EA Law and the World Bank, two rounds of public consultation were conducted by the EIA team. The first round focused on environmental screening to define public concerns, to assist identification of key environmental issues and to draw public response and comments on the initially developed mitigation measures for the potential adverse impacts identified before EA TOR finalization. The second round was designed to ensure public awareness of the EA effort and final project definition and mitigation by presenting a draft EA report to the public through information disclosure procedures. Details of the two rounds of public consultation undertaken are presented in Table 10-1. Table 10-1 Implementation of the Public Consultation Round Timing Participants Form Organizer People from sensitive receptors Questionnaire 1 April 2013 and s, interview representati and public ves of meeting relevant departments Coal Chemistry Institute of China People from Academy of Sciences sensitive receptors Questionnaire 2 Aug. 2013 and s, interview representati and public ves of meeting relevant departments Through the consultation, it is understood that the public strongly support the project as they think it would be a good approach to improving the air quality. It is also understood that the main concern of the public is the impact of traffic blocking and safety issues. Responding to the public consultation, the public concerns have carefully considered in the impact assessment and development of mitigation measures. As a result, the public who raised the concerns are satisfied with the conclusion and mitigation measure. In accordance with the OP 4.11, the relevant departments and experts have been consulted as a part of the public consultation. The relevant departments have confirmed the significance of the Diaoyutai Rock Cave and the Baode County Vertebrate Fossil Area and agreed to the location of the Baode CHP Plant, and required that the chance find procedure be included in the mitigation measures. During the second-round consultation, these relevant departments and experts are satisfied with the physical cultural resources management plan. 10.2 Information Disclosure Information on the project information has been disclosed to the public throughout the public consultation. An advertisement has been placed on Shanxi Economy Daily on Aug. 6 2013 to invite the public to express their concerns about the project, and to inform the public the place to assess to the draft EIA report. In addition, the draft EIA report and other project related information, including project environmental information, have been placed in the villages to be affected by the project. In addition to the advertisement on newspaper, the information of the project as well as the draft EIA report is available at the internet address: www.sxgxny.com/jituangongshi/shihanggongshi/ 11 ENVIRONMENTAL MANAGEMENT PLAN 11.1 Institutional Arrangement The institutional arrangement and responsibilities of relevant agencies and organizations for environmental management in implementation and operation stages are as follows:  Guoxin Energy Group will take the ultimate responsibility for environmental protection and management in the project 18 EXECUTIVE SUMMARY Shanxi Gas Utilization Project implementation. This organization is the project owner, with the responsibility for supervising the engaging environmental supervisors and monitoring agencies by each County PMO, reporting the EMP implementation to the Bank and conducting the training plan;  Environmental Supervisors, to be engaged by each County PMO, will be responsible for supervising the day to day environmental management during the construction phase against the contracts and the checklists. Their responsibilities will include response to environmental monitoring reports and developing appropriate mitigation actions. They will also handle any environmental events which may occur during construction;  Each county PMO is the project executing unit and responsible for supervising the implementation of the EMP, ensuring the ECOPs and mitigation measures be included in the bidding documents and contracts for contractors, and reporting and filing management during the construction and operation period;  Shanxi Provincial EPB will be responsible for enforcement of environmental regulations and standards and review of environmental monitoring reports;  Monitoring Stations, to be engaged by each county PMO, will undertake environmental monitoring of air quality, noise, water quality, and soil erosion, and other impacts on the environment in the project construction and operation; and  Contractors will be responsible for implementing the mitigation measures in implementation phase. Detailed institutional arrangement for the construction phase is attached in Annex 3. A training program will be undertaken during project implementation for management and technical staff from the above organizations. Training course contents will include environmental regulations, environmental monitoring, mitigation measures, and handling and responses to environmental incidents. 11.2 Mitigation Measures ECOPs and site-specific management plan, as well as the soil conservation plan have been developed and incorporated into the EIA and the EMP. 11.3 Environmental Monitoring Plan and Soil Conservation Monitoring Plan and Cost Estimate An environmental monitoring plan and soil conservation monitoring plan are incorporated into the EMP, which includes the monitoring location, monitoring parameters, methods, frequency and cost estimate. Table 11-1 Cost Estimate for EMP Subproject Items Measures Cost name (RMB 10,000) Construction Phase dust System type color plate for fencing, dust proof 25 screen, dust cloth covering, dust screen, watering Wastewater Construct collecting basin, construction material 2 storage place is provided with anti-seepage area Baode County Water conservation engineering measure expense, Soil vegetation measure expense, temporary engineering CHP erosion measure expense, independent expense, basic reserve 268.29 Subprojec t cost, water and soil conservation compensation Completion acceptance monitoring 1.7 Noise monitoring in construction period 0.3 System type color plate for fencing, dust proof dust screen, dust cloth covering, dust screen, watering 25 Xiyang County Construct collecting basin, construction material CHP Wastewater 2 storage place is provided with anti-seepage area Subprojec t Water conservation engineering measure expense, Soil vegetation measure expense, temporary engineering 345.37 erosion measure expense, independent expense, basic reserve cost, water and soil conservation compensation 19 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Subproject Cost name Items Measures (RMB 10,000) Completion acceptance monitoring 1.7 Noise monitoring in construction period 0.3 Urban Network Soil Subprojec erosion Compensation from crop damage due to the excavation 30 t Operation phase Wastewater One sewage treatment station 88.8 Except for reusing, clean wastewater is discharged into Baode County Sewage Treatment Station 3 Foundation vibration reduction, house sound Noise insulation, silencer, plant needle-point vegetations 300 at the side nearby Gucheng Village to form natural sound barrier Waste oil and waste cotton yarn are packed with special Solid waste container and stored in temporary hazardous waste 20 warehouse to be handled by qualified unit Baode County Domestic waste is provided with waste can at the fixed Domestic point to be uniformly removed by the sanitation 3 CHP waste Subprojec department t Construct one 5 m3 gas turbine accident oil pool, one 25 m3 steam turbine accident oil pool, two 48 m3 and Accident one 45 m3 transformer accident oil pools and collection 15 pool systems, accident pools are taken with anti-seepage treatment Greening Make greening compensation for plant and grow green 50 plants at exposed side slope for slope protection Environment al monitoring Waste gas, wastewater and noise monitoring in 14.05 expenses in operation period operation period Wastewater One sewage treatment station 89 Except for reusing, clean wastewater is discharged into Baode County Songxi River 2 Noise Foundation vibration reduction and house sound 300 insulation Waste oil and waste cotton yarn are packed with special Solid waste container and stored in temporary hazardous waste 20 warehouse to be handled by qualified unit Xiyang Domestic Domestic waste is provided with waste can in fixed County waste point to be uniformly removed by the sanitation 3 CHP department Subprojec Construct one 5 m3 gas turbine accident oil pool, one t Accident 25 m3 steam turbine accident oil pool, two 48 m3 and pool one 45 m3 transformer accident oil pools and collection 15 systems, accident pools are taken with anti-seepage treatment Greening Make greening compensation for plant 50 Environment al monitoring Waste gas, wastewater and noise monitoring in 14.05 expenses in operation period operation period Implementat Gas ion of pipeline public Provide lectures on gas use, distribute handbooks and playing cards on safe gas use, and inspect gas network awareness facilities of households and communicate knowledge on 20 Subprojec and ts education safe gas use on a regular basis plan Total Cost 1,708.56 20 EXECUTIVE SUMMARY Shanxi Gas Utilization Project 21 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Annex 1 NOx Dispersion Graphs NOx hourly concentration for Baode CHP NOx hourly concentration for Xiyang CHP NOx daily concentration for Baode CHP NOx daily concentration for Xiyang CHP NOx yearly average for Baode CHP NOx yearly average for Xiyang CHP 22 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Annex 2 Main Mitigation Measures No. Issue Mitigation Measures Design Phase  The scale schemes and site selection schemes shall be analyzed, compared and selected comprehensively from perspectives including environmental protection, social demands, technical Site economy, engineering and geological exploration and local Selection and planning; Scale 1  The best scale and site selection schemes shall be selected and be approved by competent government authorities at city and county levels and by the project owner.  Reasonably select routes to avoid places where residents and business concentrate for transmission lines.  Whenever possible, choose low-noise equipment and technology during design, and set noise limits for manufacturers according to design code for power projects; Acoustic  Raise noise limits to manufacturers during tendering for air Environment cooling fans and choose ultra-low-noise fans. 2  In general layout of the plant area, optimize general layout according to the distribution of noise-sensitive facilities near the plant area, arrange equipment and facilities with high noise in the center of the plant area or the side far from villages, and try to use distance decay of noise to satisfy noise control standards. Atmospheric Environment  Choose equipment and manufacturers with low pollutant discharge 3 and mature and reliable low NOx combustion technology. Ecological  Whenever possible, occupy fertile land as little as possible while Environment making site selection and plane layout; 4  Reasonably provide greening in the plant area. Water and Soil  Optimize balance of earth-rock excavation and filling, and site Conservation selection design for abandoned dreg site and topsoil temporary 5 storage site.  Make full use of existing infrastructure, choose reasonable sources of water supply and discharge methods in combination with specific conditions of domestic sewage treatment plants in project districts/counties, and ensure the quality of water supplied Water comply with relevant requirements and water discharge agrees with Environment relevant laws and standards; 6  Whenever possible, make use of gravity flow in water treatment process design to save energy and reduce consumption;  On the premise of satisfying technological requirements, adopt cyclic utilization and comprehensive utilization to increase the ratio of water reuse.  Choose equipment with low radiation and capacity of resisting Magnetic and disturbance, set grounding for lightening device, use cables with electric a shielding layer which is connected to the earth; environment 7  Metal components in the plant area, such as suspension clamps, protection rings, protection angles, gaskets, joints and switch blades, shall be smooth-surfaced and have no burr, if possible. Construction Phase  Avoid simultaneous operation of high-noise equipment. Prohibit pile driver operations during night time.  Build 2.2m-high walls before construction.  Reasonably arrange the construction site, keep noise equipment away from sensitive targets, and avoid placing many dynamical machines at one place.  Reasonably arrange the construction site, keep noise equipment away from sensitive targets, and avoid placing many dynamical machines at one place.  Whenever possible, use advanced low-noise equipment, provide regular repair and maintenance, and keep the machines lubricated 1 Noise to prevent mechanical noise due to poor equipment performance and reduce impacts on environmentally sensitive points. The building material transportation vehicles must be regularly repaired and maintained, reduce speed to 20km/h near sensitive points, and do not sound horn within construction boundaries.  Shut machines immediately when they are idle.  When using high-noise equipment like power generator, use fixed or mobile soundproof cover or screen for partial shielding.  Operate machines according to operating regulations, follow operation regulations when dismantling baffles and brackets, do not throw objects from high, and reduce collision noise. 23 EXECUTIVE SUMMARY Shanxi Gas Utilization Project No. Issue Mitigation Measures  Surface water environment: Process productive wastewater by sort;  Use dry toilets at construction sites and no mixing with other kinds of wastewater. The feces will be cleared for fertilization by villagers nearby, and the dry toilets shall be buried after construction is finished;  A 10 m3 temporary collecting tank shall be built to collect all 2 Waste wastewater which, after precipitation, will be used for sprinkling water at construction sites to suppress dust;  Kitchen wastewater shall be treated at oil separation tank and then go to the collecting tank. Domestic wastewater shall be discharged directly to the collecting tank.  After precipitation, productive wastewater will be reused for dust suppression at construction sites.  Spoil during construction shall be piled up at fixed positions in a reasonable manner and be provided with temporary protective measures like covering and sprinkling, and be timely transported to earth filling areas to be reused for land use works.  Waste welding joints shall be collected in a centralized manner and salvage stations will buy and process them in a unified manner.  Set construction waste dump at construction sites, designate special personnel to collect construction waste every day and Solid cover them, and send construction waste to places designated by 3 Waste public sanitation departments.  Set domestic waste garbage cans at construction sites, collect domestic waste and send domestic waste to places designated by public sanitation departments.  Use dry toilets at construction camps and set the toilets far from the dining hall and at the downwind direction of construction camps. Public sanitation departments will clear the feces regularly. After construction is completed, disinfect the toilets with lime and then bury the toilets.  Temporarily occupied land mainly refers to land occupied by construction areas. Reasonable planning shall be made during construction to occupy as little farmland as possible. Set materials yards and temporary construction camps in non-farmland Ecological areas to reduce farmland occupation. After construction is Environmen completed, backfill earthwork and reclaim land as soon as possible 4 t to reduce farmers’ losses.  Implement ecological compensation, especially in directly affected areas and periphery. Make reasonable plane layout, strengthen greening in plant areas, and build green belts on both sides of the access roads.  Pay attention to the protection of buildings that reflect local culture along pipelines.  If cultural relics are found in CHP project areas during construction, suspend construction and report to cultural relics protection authorities according to the Law of the Peoples Republic of China on Protection of Cultural Relics, and resume construction after unearthing of cultural relics and issuance of building commission. See the Management Plan for Material and Cultural Resources for details.  Ifpalaeontological fossils are found during construction, sus pend construction and report to competent authority of palaeo nlogical fossils according to the Law of the Peoples Republic of China on Protection of Cultural Relics and the Notice of Shanxi Provincial People’s Government on Further Strengthening the Protection of Fossils of Paleovertebrates, and resume construction after unearthing of the fossils and issuance of building permission. Cultural  Observe local cultural customs, strictly manage construction Resources personnel, and prevent acts conflicting with local cultural 5 customs during construction. See the Regulations on Management of Construction Camps for details.  Mechanical equipment should not be used in the construction of the water pipelines near the Diaoyutai Rock Cave, the soils excavated should be stockpiled along the side of the highway.  Chance find procedure should eb adopted throughout the construction: The construction should be stopped immediately once any physical cultural heritages are discovered and the local cultural department and specialist should be report;  The construction should be stopped immediately once any physical cultural heritages are discovered and the local cultural department and specialist should be report;  The site should be protected by the contractor and should not construct until the local cultural department issued a permit. 24 EXECUTIVE SUMMARY Shanxi Gas Utilization Project No. Issue Mitigation Measures Land Acquisitio  Establish feedback mechanism to collect opinions of affected n and people in land acquisition period. 6 Relocation  Establish reasonable compensation for targets of land acquisition in the relocation period Life of  Take mitigation measures to reduce impacts of noise and air-borne Residents dust on residents during the construction period; 7  Reduce damage to farmland and minimize impacts on residents nearby during the construction period.  Stress safety rules to drivers;  Drivers shall improve their driving skills and must hold driving license;  Restrict driving time and work out a driver shift schedule to prevent the drivers from being too tired;  Avoid dangerous roads and driving in dangerous periods of the day to reduce the possibility of accidents;  Regularly maintain vehicles and use parts authorized by manufacturers to avoid serious accidents due to equipment failure or premature failure of parts;  Try to prevent pedestrian and construction vehicles from using Traffic roads at the same time; Safety  Cooperate with local communities and competent authorities to 8 improve road signs, increase visibility, and enhance overall road safety, especially roads near schools and other areas with children. Carry out traffic education and pedestrian safety education jointly with local communities (such as publicity activities at schools);  Coordinate with emergency handling personnel to ensure proper first aid treatment when accidents happen;  Whenever possible, use materials which can be locally purchased to shorten transportation distance; build relevant facilities (such as workers’ dormitory) close to project sites and carry workers using buses so as not to increase traffic flow;  Take traffic safety control measures and use road signs and signalmen to warn people and vehicles of dangers. Operation Phase  Install muffler noisy for combustion engine exhaust inlet and set sound insulating wall with enough height and thickness near the exhaust inlet to ensure noise at the exhaust inlet satisfy environmental protection requirements.  Set acoustic panel in windbreak of the air cooling fan; add deflector-type muffler under the air cooling fan; lay cobblestones on the ground.  Add muffler to the diffuser of combustion engine.  Choose low-noise fans for roof exhaust fan in the main power house to reduce impacts on boundary noise at environmentally sensitive side  Adopt low-noise fan for recirculation evaporative cooling fan in auxiliary equipment system.  Consider vibration mitigation measures for large-scale equipment foundation, reasonably choose pipe support and hanger forms and make reasonable arrangements to reduce air flow and vibration noise.  In the design of air and flue gas ducts, ensure reasonable arrangements and smooth flow and consider vibration mitigation measures; reasonably choose pipe support and hanger forms and make Acoustic reasonable arrangements to reduce air flow and vibration noise; Environmen  Arrange parts with periodic mechanical vibrations and other parts t separately. Set shock-absorbing devices for all ventilation 1 equipment, connect equipment with air pipe and water pipe using flexible coupling to reduce system shock.  In factory building design, choose materials with good sound insulation and absorbing effects for walling, increase sound insulation of outer protective structure, and paste sound absorbing materials inside factory building to reduce reflection of noise inside factory building; determine a reasonable window opening ratio, and whenever possible, close workshops with loud noise to reduce noise radiation.  Set major equipment like combustion turbine, steam turbine and power generator inside the main power house, and arrange power distribution equipment and auxiliary equipment indoor. Provide necessary noise reducing materials for outer protective structure of major noise source workshops or thicken the outer protective structure; use acoustic materials with good sound insulating effects for walls of main power house and other high-noise workshops; reduce window opening ratio on walls; and use double-layer sound-insulation doors and windows. Choose totally-enclosed waste heat boiler, and install double-layer doors and windows for the control room and production office building.  Strengthen greening for noise reduction and prevention, dust 25 EXECUTIVE SUMMARY Shanxi Gas Utilization Project No. Issue Mitigation Measures proofing, dust stabilization, air purification and environment beautifying. Plant trees near wall of the plant area; strengthen power plant operation management to reduce impacts of unexpected and abnormal noise on the surroundings.  Because noise control is difficult in places where equipment with high acoustic power concentrates, to ensure a normal working environment, set well sound-insulated attended control room and require staff working in high-noise environment to wear protective ear muffs and take other personal protection measures. For air compressor with loud noise, set a closed factory building, add silencing hood, and use wall materials with good sound absorbing performance for interior wall, to reduce environmental impacts of air compressor house.  For booster station, use closed factory building and choose materials with good sound insulation and absorbing effects for internal noise reduction  Arrange production area and office area separately and provide certain protection distance. Atmospheri c Environmen  Dry low NOx (DNL) combustion technology is proposed for combustion 2 t turbine to realize low NOx and CO emission and stable and reliable operation.  Surface water environment: adopt an underground domestic sewage treatment station, and discharge domestic wastewater and Water miscellaneous water from steam engine room to urban wastewater Environmen treatment plant after grille, effluent regulating reservoir, t anoxic tank, sedimentation tank and disinfection pool 3 successively；  Strengthen management of wastewater treatment station and ensure its normal running.  Hazardous wastes shall be classified and collected in special containers by components according to national standards. Waste oil from the project shall be collected with dedicated closed containers.  According to the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2001), CHP projects shall set a warehouse for hazardous wastes. The warehouse shall be protected against seepage, and be provided with isolation facilities, warning devices, and protective facilities against wind, sunshine and rain. Places storing inflammable and explosive hazardous wastes shall be provided with firefighting equipment.  Hazardous wastes shall be transported with dedicated vehicles that Solid waste carry special marks.  The transfer of hazardous wastes shall strictly follow the 4 Management Regulation on Hazardous Wastes Manifests (Decree No.5 of the Ministry of Environmental Protection).  Collect and barrel waste engine oil from combustion turbine, temporarily keep it in the hazardous waste warehouse, and then send it to qualified unit for recycling.  Set oil scuppers around oil containing machines, and connect oil gathering pits, oil scuppers and accident oil pool.  Send waste cotton yarn to qualified units for recycling.  Public sanitation departments will regularly pump sludge in the project’s effluent treatment stations.  Domestic waste shall be piled in designated places within plants and be cleared and treated in a unified manner according to regulations of project localities.  Set well sound-insulated attended control room in places where equipment with high acoustic power concentrates;  Operating person subject to long-time exposure to loud noise shall wear earplugs and receive regular examination of hearing;  Regularly organize staff activities to reduce their pressure and bring them physical and psychological pleasure;  Adopt rotating shit system, job transfer and other reasonable management means to reduce noise impacts on health;  Regularly check and maintain pressure vessels and high-pressure pipelines;  Take adequate ventilation measures in working areas to reduce Occupatio temperature and humidity; 5 nal health  Reduce operating time in high-temperature environment and guarantee drinking water supply;  Take preventive measures on surfaces where workers will have close contact with high-temperature equipment, including generating equipment and pipelines;  Set warning signs near high-temperature surface and offer proper personal protection equipment, including heat-insulating gloves and shoes.  Provide staff training on identification of occupational exposure to electromagnetic fields and dangers;  Limit the time of staff exposure to electromagnetic fields by reasonable rotation; 26 EXECUTIVE SUMMARY Shanxi Gas Utilization Project No. Issue Mitigation Measures  Increase distance between electromagnetic radiation sources and operating personnel as much as possible. 27 EXECUTIVE SUMMARY Shanxi Gas Utilization Project Annex 3 Institutional Arrangement for Construction Phase 28