Environmental and Social Impact Assessment

Executive Summary

For

Shanxi Gas Utilization Project

(draft Final)

Coal Chemistry Institute of China Academy of Sciences

Oct. 2013

28

EXECUTIVE SUMMARY Shanxi Gas Utilization Project

TABLE OF CONTENT

1. INTRODUCTION 3

1.1 Project Background 3

1.2 Environmental Policies, Laws and Regulations 3

1.2.1 Laws and Regulations 3

1.2.2 Safeguard Policies and EHS Guideline 3

1.2.3 Applicable Standards 3

1.3 Assessment Scope, Period and Key Issues 4

2. PROJECT DESCRIPTION 5

2.1 Project Composition 5

2.2 Electricity and Heat Production Technology 8

2.3 NOx Control Technology and Stack Height 8

2.4 Cooling water and Boiler Water 8

2.5 Gas Composition and Consumption 8

3. ENVIRONMENTAL BASELINE 8

3.1 General Setting 8

3.2 Topography and Hydrogeology 8

3.3 Climate 9

3.4 Ecology 9

3.5 Socio-economy 9

3.6 Physical Cultural Resources 9

3.7 Current status of space heating 9

3.8 Ambient Air Quality 9

3.9 Surface Water Quality 10

3.10 Acoustic Environmental Quality 10

3.11 Radiation 10

3.12 Respiratory Disease Status 10

3.13 Air Pollution Source 10

4. ENVIRONMENTAL IMPACT ASSESSMENT and Mitigation Measures 10

4.1 Impact Assessment and Mitigation Measure in Construction Phase 10

4.2 Impact Assessment and Mitigation Measures in Operation Phase 12

4.2.1 Impact on Air 12

4.2.2 Impact on Surface Water 12

4.2.3 Impact on Groundwater 13

4.2.4 Impact of Solid Waste 13

4.2.5 Impact of Noise 13

4.2.6 Impact on Ecology 14

4.2.7 Impact of Radiation and Heat 14

4.2.8 Social Impact 14

4.2.9 Impact on Physical Cultural Resources 14

5. Cumulative Impact 15

6. Land Acquisition and Resettlement 15

6.1 Introduction 15

6.2 Land acquisition 15

6.3 Livelihood Recovery 15

6.4 Disadvantaged Group 16

7. Due Diligence Review 16

8. Comparison of Alternatives 16

8.1 Introduction 16

8.2 With and Without Project Scenario 16

8.3 Fuel Type 16

8.4 Location for CHP Plants 16

8.4.1 Alternative Locations for Baode CHP Plant 16

8.4.2 Alternative Locations for Xiyang CHP Plant 17

8.5 Technologies for NOx Control 17

8.6 Source and treatment technology for cooling water 17

8.6.1 Source for cooling water 17

8.6.2 Cooling water treatment process 17

8.7 Alignments for gas pipeline network 17

8.8 Alignments for associated pipelines for CHP components 18

8.8.1 Alignment of pipelines for Baode CHP plant 18

8.8.2 Alignment of pipelines for Xiyang CHP plant 18

8.9 Alignment of electricity transmission lines and location of sub-stations. 18

9. Risk Analysis 18

10 PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 18

10.1 Public Consultation 18

10.2 Information Disclosure 19

11 ENVIRONMENTAL MANAGEMENT PLAN 19

11.1 Institutional Arrangement 19

11.2 Mitigation Measures 20

11.3 Environmental Monitoring Plan and Soil Conservation Monitoring Plan and Cost Estimate 20

Annex 1 NOx Dispersion Graphs 22

Annex 2 Main Mitigation Measures 23

Annex 3 Institutional Arrangement for Construction Phase 27

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: GeneralEHS 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 Emission Standard for Thermal Power Plants (GB 13223-2011) / Small Combustion Facilities Emission Guidelines, turbine, natural gas, =15MW 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
Environment quality standard / 1 / Electric-magnetic Radiation Protection Standard(GB8702-88)
2 / Groundwater Quality Standard (GB/T14848-93)
3 / Surface Water Quality Standard (GB3838-2002)
4 / Acoustic Environment Quality Standard (GB3096-2008)
5 / Ambient Air Quality Standard (GB 3095-2012)
Pollutant discharge standard / 1 / Air Pollutants Emission Standard for Thermal Power Plants (GB 13223-2011)
2 / Limits for Radio Interference from Elevated High Voltage AC Transmission Line (GB 15707-1995)
3 / Pollution Control Standard for Storage and Disposal of General Industrial Solid Waste (GB 18597-2001)
4 / Pollution Control Standard for Storage of Hazardous Waste (GB 18597-2001)
5 / Quality Standard for Wastewater to be discharged to Municipal Sewers (CJ343-2010)
6 / Integrated Wastewater Discharge Standard (GB 8978-1996)
7 / Noise Limits on Boundaries of Construction Sites (GB12523-2011)
8 / Noise Standard on Boundaries of Enterprises (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 index / EA Scope
Construction Phase / Operation Phase
Air / The CHP plants will be located on green field. The primary concern is the air-borne dust to be generated from the construction activities. / Within the square of 6 X6 km2 with center on the stacks of the CHP plants and the physical cultural resources to be affected
Noise / The noise on the boundary of the construction sites; 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. / Noise on the boundary of the CHP plants and the sensitive receptors.
Surface Water / Construction wastewater and domestic wastewater / Wastewater from the operation including the brine from the demineralization process.
Ecology and Soil Erosion / Site of the CHP plants, towers for electricity transmission lines and associated works. / Crops within 200 m from the plant boundary
Solid Waste / Construction and domestic solid waste / Solid waste including the sludge and hazardous waste
Social environment / Land acquisition and resettlement, extensive social impacts besides the land acquisition and resettlement. / Social implications on affordability, gender issues, and public health
Electric-magnetic environment / None / Electric-magnetic impact on the operation staff within the CHP pants and the sensitive receptors along the electricity transmission line
Risk / -- / Fire and explosion
Physical Cultural Resources* / Impacts on the physical cultural resources, Diaoyutai Ancient Rock Cave and Baode Vertebrate Fossil Protection Area, such as vibration, dust, sabotage, etc. / Impacts on Diaoyutai Ancient Rock Cave and core area of Baode Vertebrate Fossil Protection Area, including acid precipitation, landscaping and aesthetic value, vibration. 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 pipeline / Construction / Within 100 m from the pipeline / Within 100 m from the pipeline / Surface waters to be crossed / Disused land 6 m, dry farnmland 4 m, woodland 3 m from the pipeline / Residential settlements to be affected
Operation / None / None / None / None / End users of gas
Pressure adjustment cabinet / Construction / Within 100 m from the cabinets / Within 100 m from the cabinets / None / Within 100 m from the cabinets
Operation / None / Within 100 m from the cabinets / None / None

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.

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EXECUTIVE SUMMARY Shanxi Gas Utilization Project

Table 2-1 Project Description

CHP Components / Component Composition / Service Scope
Electricity and heat generation system / Industrial water supply / Gas Source / Heating supply / Electricity transmission / Access roads
CHP in Baode County / (2X42+42)MW combined- cycle units, using air for steam condensation / 6 km pipeline. Treated effluent from Baode Municipal WWTP will be used. / 10.6 km pipeline, from the initial station in Baode County under Shanxi Gas Company / The heating supply pipe will be constructed to connect the off-site heat exchange station, and the branch pipelines and exchange stations will be constructed by Baode Construction Bureau / 10 km transmission line, to Dongguan Transformer Sub-station at 110 kV through on-site 3X55 MVA booster station / 680 m, 10 m wide / 0.7 million m2 heating area in short term with the heating load of 33.6 MW; 1.2 million m2 heating area in long term with the heating load of 57.6 MW.
CHP in Xiyang County / (2X42+42)MW combined- cycle units, using air for steam condensation / 1.5 km pipeline. Treated effluent from Xiyang Municipal WWTP will be used. / 1 km pipeline, from the Yangquan- Pingding- Xiayang gas trunk pipe under Shanxi Gas Company / The heating supply pipe will be constructed to connect the off-site heat exchange station, and the branch pipelines and exchange stations will be constructed by Xiyang Construction Bureau / 11 km transmission line, to Huangyan Transformer Sub-station at 110 kV through on-site 3X55 MVA booster station / 400 m and 490 m respectively connecting the two gates of the plant / 0.825 million m2 heating area, with the heating load of 55.12 MW.
Gas Pipeline Network Components / Location / Capacity / Composition / Gas source / Service area
Xiangyuan Gas Supply Network / Located in Xiangyuan County and connects each towns and villages / Annual volume is 6295X104 Nm3 / New construction of 83.2 km pipeline at 0.8 MPa;
11 pressure adjustment cabinets;
auto-monitoring system for gas network / Tunliu-Xiangyuan pipeline under Shanxi Gas Company / Main industries, commercial business and residents. The gas volume supplied to industrial users versus domestic users is 37:63.
Qingxu Gas Supply Network / Located in Qingxu County and passes through Jiyi Town, / Annual volume is 217.23X104 Nm3 / New construction of 36 km pipeline at 0.4 MPa;
auto-monitoring system for gas network / The Gas transmission Station in Qingxu under Shanxi Gas COmpany / Main industries, commercial business and residents. The gas volume supplied to industrial users versus domestic users is 28:72.
Changzhi Gas Supply Network / Located in Changzhi County and connects each towns and villages / Annual volume is 8972.71X104 Nm3 / New construction of 52.7 km pipeline at 0.8 MPa;
12 pressure adjustment cabinets;
auto-monitoring system for gas network / Jincheng-Changzhi pipeline under Sanjin New Energy Development Company / Main industries, commercial business and residents. The gas volume supplied to industrial users versus domestic users is 70:30.
Tunliu Gas Supply Network / Located in Tunliu County and connects each towns and villages / Annual volume is 8486.62X104 Nm3 / New construction of 86.4 km trunk pipeline at 0.8 MPa;
11 pressure adjustment cabinets;
auto-monitoring system for gas network / Tunliu-Xiangyuan pipeline under Shanxi gas Company / Main industries, commercial business and residents. The gas volume supplied to industrial users versus domestic users is 87:13.