Yap Renewable Energy Development Project (RRP FSM 44469) Linked Document 12 Initial Environmental Examination Federated States of Micronesia: Strengthening the Capacity of Pacific Developing Member Countries to Respond to Climate Change (Phase 1) - Yap Renewable Energy Project Prepared for the Asian Development Bank ABBREVIATIONS ADB – Asian Development Bank CO2e – carbon dioxide equivalent EHS – environmental, health, and safety EIA – environmental impact assessment EMP – environmental management plan GHG – greenhouse gas HPO - Historic Preservation Office IEE – initial environmenal examination PMU – project management uffice USFS - US Forest Service YSO - Yap Statistical Office YSPSC - Yap State Public Service Corporation WEIGHTS AND MEASURES M – meter m2 – square meter m3 – cubic meter m3/h – cubic meter per hour mm – millimeter mg/l – milligram per liter mg/m3 – milligram per cubic meter Mt/y – million ton per year MW – megawatt The initial environmental examination report is a document of the borrower. The views expressed herein do not necessarily represent those of the ADB’s Board of Directors, management, or staff, and may be preliminary in nature. In preparing any country program or strategy, financing any project, or by making any designation of or reference to a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area. Table of Contents I. INTRODUCTION AND BACKGROUND 1 A. Background .............................................................................................................. 1 B. Policy, Legal and Institutional Arrangements ............................................................ 1 C. Environmental, Health, and Safety Guidelines .......................................................... 3 II. DESCRIPTION OF THE PROJECT 4 A. Project Overview ....................................................................................................... 4 B. Development Context ............................................................................................... 4 C. Subproject Descriptions ............................................................................................ 5 D. Area of Influence ....................................................................................................... 9 E. Study Area .............................................................................................................. 11 III. DESCRIPTION OF THE ENVIRONMENT—BASELINE 12 A. Regional Environmental Setting .............................................................................. 12 B. Subproject Localities Environmental Setting ........................................................... 17 IV. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES 24 A. Positive Impacts and Environmental Benefits.......................................................... 24 B. Impacts and Mitigation during the Design and Pre-construction Phase ................... 26 C. Impacts and Mitigation Measures during the Construction Phase ........................... 28 D. Impacts and Mitigation Measures during the Operational Phase ............................. 29 E. Environmental, Health, and Safety (Construction and Operational Phases) ............ 35 V. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE 36 A. Framework for Public Consultation ......................................................................... 36 B. Public Consultation ................................................................................................. 36 C. Information Dissemination....................................................................................... 36 D. Interview Questionnaire .......................................................................................... 37 E. Future Public Consultation ...................................................................................... 39 VI. GRIEVANCE REDRESS MECHANISM 40 A. Proposed Mechanism ............................................................................................. 40 VII. ENVIRONMENTAL MANAGEMENT PLAN 42 A. Introduction ............................................................................................................. 42 B. Responsibilities for Implementation ......................................................................... 42 C. Summary of Potential Impacts ................................................................................ 42 D. Mitigation Measures ................................................................................................ 43 E. Environmental Management Costs ......................................................................... 46 F. Environmental Monitoring ....................................................................................... 47 G. Monitoring Management ......................................................................................... 48 H. Monitoring Costs ..................................................................................................... 48 VIII. FINDINGS AND CONCLUSIONS 49 I. Benefits ................................................................................................................... 49 J. Impacts ................................................................................................................... 49 K. Climate Change ...................................................................................................... 50 L. Risks ....................................................................................................................... 50 M. Assurances ............................................................................................................. 50 N. Follow-Up Monitoring and Environmental Management Requirements ................... 50 O. Conclusion .............................................................................................................. 50 APPENDIX 1: REFERENCES 52 APPENDIX 2: FLORA AND FAUNA SURVEY 53 APPENDIX 3: REPORT ON THE HISTORIC RESOURCES WITHIN THE PROPOSED WINDMILL FARM ON YAP ISLAND 82 EXECUTIVE SUMMARY Yap State and ADB EIA Requirements This Project, to support the Yap State Public Service Corporation (YSPSC) in its efforts to reduce its use of diesel fuel for electricity generation, has three primary technical divisions: (i) generation using solar energy; (ii) generation using wind energy; and (iii) improved fuel efficiency through the use of a modern diesel engine of a size that is best suited to the base load seen by YSPSC. The purpose of this IEE is to ensure that the project will be environmentally acceptable. The environmental impact assessment of these developments falls under the provisions of the Yap State Environmental Protection Agency Regulations issued by the Chairperson of the Yap EPA the Yap State Environmental Protection Act (YSL 3-73). The regulations require that all projects require a Preliminary Environmental Impact statement (PEIS), unless exempted. The purpose of a PEIS is to determine whether environmental impacts associated with a project are sufficiently significant that a full Environmental Impact Statement is required. The PEIS also ensures that projects without significant environmental impacts are still provided with appropriate impact mitigation and impact minimilisation measures. Under the ADB classification system, which reflects the significance of a project’s potential environmental impacts, the Yap Renewable Energy Project has been assigned Category B. A project is classified as category B if its potential adverse environmental impacts are site- specific, few if any of them are irreversible, and in most cases can be successfully mitigated. For a category B Project, an Initial Environmental Examination (IEE) is required. This IEE has been prepared under the provisions of the ADB’s safeguard policy It has been determined by the PPTA team that a Project IEE prepared under the provisions of the ADB’s safeguard policy would also satisfy all the requirements under the Yap State Environmental Protection Agency Regulations. The Findings of the Assessment The major findings of the IEE are that the proposed project is an environment-friendly project which will result in substantial energy saving and GHG emission reduction and improve the energy infrastructure of Yap State. The energy savings have been estimated and are shown in the table below. In addition to the significant total savings in gallons of fuel per year is the prevention of associated pollutants from combustion of fossil fuels entering the local airshed. Energy Savings Equivalent Fossil Fuel Renewable Energy Subproject Saving 57,467 gals/a New diesel generator at Power - Plant (savings through increased fuel efficiency) Phase 1 (2 turbines) 805 MWh 58,333 gals/a Wind turbine installation Phase 2 (5 turbines (2 from Phase 1 plus 2,127 MWh 154,130 gals/a an additional 3) Solar Panels 462 MWh 33,478 gals/a Source: PPTA team from data provided by YSPSC. A range of potential impacts have been identified along with measures to avoid or minimize them. Impacts identified during the design and feasibility stages have been minimized through design revisions and will continue through site adjustments to avoid significant flora and fauna elements and items of historical heritage (World War II relics) in situ. These will be mandated by the EMP and supported by a range of other environmental management prescriptions. In particular, the retention of