Environmental Assessment Report
Project Number: 44011-013 May 2017
PRC: Heilongjiang Energy Efficient District Heating Project
Addendum to the Initial Environmental Examination
Prepared by Wuhan Project Management Office Hubei Province, PRC
This environmental assessment report is a document of the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Director, 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.
ADDENDUM To the Initial Environmental Examination
Loan 2898-PRC May 2017
People’s Republic of China: Heilongjiang Energy Efficient District Heating Project (Project Scope Change – Hailin Subproject)
Prepared by the Heilongjiang Project Management Office on behalf of the Heilongjiang Provincial Government for the Asian Development Bank
Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
This addendum to the initial environmental examination is a document of the borrower. The views expressed herein do not necessarily represent those of 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.
i Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
CURRENCY EQUIVALENTS (Inter-bank average exchange rate as of 22 May 2016)
Currency Unit - Yuan (CNY) CNY 1.00 = US$ 0.145444 USD 1.00 = 6.8755 CNY (mid-rate)
NOTE
In this report, "$" refers to US dollars.
ii Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
ABBREVIATIONS
ACM asbestos-containing materials ADB Asian Development Bank AP affected person AQSIQ Administration of Quality Supervision, Inspection and Quarantine ASL above sea level CFB circulating fluidized bed CHP combined heat and power CSC construction supervision company DCS distributed control system DI design institute EA executing agency EHS environment, health and safety EIA environmental impact assessment EMP environmental management plan EMS environmental monitoring station EMU environmental management unit EPB Environmental Protection Bureau ESP electrostatic precipitator ETDZ Economic and Technology Development Zone FGD flue gas desulphurization FSR feasibility study report GHG greenhouse gas GRM grievance redress mechanism HES heat exchange station HHWDC Harbin Hazardous Waters Disposal Center HPG Heilongjiang Provincial Government HSP heat source plant IA implementing agency IEE initial environmental examination LIEC loan implementation environmental consultant MEP Ministry of Environmental Protection NDRC National Development and Reform Commission PLG provincial leading group PMO project management office PPCU project public complaints unit PPE personal protective equipment PPMO provincial project management office PRC People’s Republic of China SCADA supervisory control and data acquisition SCR selective catalytic reduction
iii Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
SPS Safeguard Policy Statement, ADB TA technical assistance TCE tons of coal equivalent US EPA United States Environmental Protection Agency WHO World Health Organization
WEIGHTS AND MEASURES
BOD5 biochemical oxygen demand, five days cm centimeter
CO2 carbon dioxide COD chemical oxygen demand dB(A) a-weighted sound pressure level in decibels DO dissolved oxygen DOD dissolved oxygen deficit GJ giga-joule ha hectare kcal kilo calories kg kilogram km kilometer kWh kilo watt hours M meter m/s meters per second m³ cubic meters mg/l milligrams per liter mg/m3 milligrams per cubic meter mg/Nm3 milligrams per standard cubic meter MW megawatt
NH3-N ammonia nitrogen Nm3 standard cubic meter
NO2 nitrogen dioxide
NOx nitrogen oxides oC degrees Celsius pH a measure of the acidity or alkalinity of a solution PM particulate matter
PM10 particulate matter smaller than 10 micrometers
PM2.5 particulate matter smaller than 2.5 micrometers
SO2 sulfur dioxide SS suspend solid TN total nitrogen TSP total suspended particulates
iv Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
TABLE OF CONTENTS MAPS I. INTRODUCTION ...... 1 A. PURPOSE OF THE ADDENDUM ...... 1 B. THE PROJECT AND ITS SCOPE CHANGE ...... 1 C. APPROACH TO ADDENDUM PREPARATION ...... 3 D. STRUCTURE OF THE ADDENDUM ...... 4
II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ...... 5 A. LEGAL FRAMEWORK OF THE PRC ...... 5 B. APPLICABLE ADB POLICIES, REGULATIONS AND REQUIREMENTS ...... 7 C. INTERNATIONAL AGREEMENTS ...... 8 D. OTHER RELEVANT GUIDELINES ...... 9 E. ASSESSMENT STANDARDS FOR URBAN DISTRICT HEATING SECTOR ...... 9 F. ADMINISTRATIVE FRAMEWORK ...... 9 G. EIA APPROVAL STATUS ...... 10
III. DESCRIPTION OF THE PROJECT ...... 11 A. PROPOSED PROJECT SCOPE ...... 11 B. BACKGROUND AND PRESENT HEATING SITUATION IN HAILIN ...... 12 C. HEATING HEAT INDEX AND HEAT LOAD ...... 14 D. SITE CONDITIONS AND THE GENERAL PLANT LAYOUT ...... 15 E. HEAT SOURCE ...... 19 F. BOILER FUEL ...... 19 G. AUTOMATIC CONTROL ...... 19 H. THERMAL SYSTEMS ...... 19 I. EMISSION CONTROL TECHNOLOGIES ...... 20 J. DISTRICT HEATING NETWORK ...... 20 K. SPECIAL FEATURES OF THE PROJECT ...... 21
IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) ...... 23 A. LOCATION AND SETTING ...... 23 B. GEOGRAPHY AND TOPOGRAPHY ...... 23 C. METEOROLOGY AND CLIMATE ...... 24 D. HYDROLOGY ...... 24 E. NATURAL RESOURCES ...... 24 F. SOCIAL AND ECONOMIC CONDITIONS ...... 24 G. ENVIRONMENTAL QUALITY (BASELINE) ...... 25
V. ANTICIPATED IMPACTS AND MITIGATION MEASURES ...... 31 A. EXPECTED POSITIVE IMPACTS ...... 31 B. SCREENING OF POTENTIAL IMPACTS ...... 31 C. POTENTIAL IMPACTS BEFORE CONSTRUCTION ...... 31 D. POTENTIAL ENVIRONMENT IMPACTS AND MITIGATION MEASURES DURING CONSTRUCTION ...... 32 E. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES DURING OPERATION ...... 40 F. ENVIRONMENTAL IMPACTS FROM SMALL BOILER DEMOLITION AND MITIGATION MEASURES ..... 53
VI. ANALYSIS OF ALTERNATIVES ...... 57 A. NO PROJECT ALTERNATIVE ...... 57
v Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
B. HEATING SOURCE ALTERNATIVES ...... 57 C. ALTERNATIVE FUELS ...... 58 D. ALTERNATIVE BOILER TECHNOLOGIES ...... 60
E. ALTERNATIVES OF SO2 EMISSION REDUCTION PROCESS ...... 61 F. ALTERNATIVES FOR FLUE GAS DUST REMOVAL ...... 63
VII. INFORMATION DISCLOSURE AND PUBLIC CONSULTATIONS ...... 65 A. INFORMATION DISCLOSURE ...... 65 B. PRC AND ADB REQUIREMENTS FOR PUBLIC CONSULTATION ...... 65 C. PUBLIC CONSULTATION FOR HAILIN SUBPROJECT ...... 66 D. FUTURE INFORMATION DISCLOSURE AND PUBLIC CONSULTATION PROGRAM ...... 68
VIII. GRIEVANCE REDRESS MECHANISM ...... 69 A. INTRODUCTION ...... 69 B. ADB’S GRM REQUIREMENTS ...... 69 C. CURRENT PRACTICE ...... 69 D. PROPOSED GRIEVANCE REDRESS MECHANISM FOR THE SUBPROJECT ...... 70 E. TYPES OF GRIEVANCES EXPECTED AND ELIGIBILITY ASSESSMENT ...... 70 F. GRM STEPS AND TIMEFRAME ...... 70
IX. CONCLUSIONS AND RECOMMENDATIONS ...... 73 A. EXPECTED PROJECT BENEFITS ...... 73 B. ADVERSE IMPACTS AND MITIGATION MEASURES ...... 73 C. RISKS AND ASSURANCE ...... 74 D. OVERALL CONCLUSIONS ...... 74
APPENDIX 1: APPROVAL OF DOMESTIC ENVIRONMENTAL IMPACT ASSESSMENT ...... 75 APPENDIX 2: ENVIRONMENTAL MANAGEMENT PLAN ...... 79
vi Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
Map: Hailin Subproject Location In Heilongjiang Province
Hailin
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MAP OF HAILIN CITY AND MUDANJIANG MUNICIPALITY
Hailin
Mudanjiang
viii Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
I. INTRODUCTION
A. Purpose of the Addendum
1. This addendum to the Initial Environmental Examination (IEE) for the Heilongjiang Energy Efficient District Heating Project (the Project) in Heilongjiang Province of the People’s Republic of China (PRC) summarizes the findings of the environment due diligence conducted for a change in project scope. 2. A change in scope of the project is required as four subprojects have dropped out the project and a replacement subproject, Hailin district heating subproject, is proposed to be added. Technical, social and environmental safeguards due diligence has been conducted for the new subproject. 3. This addendum to the IEE was prepared based on environment safeguards due diligence, which includes the following: (i) a review of the draft feasibility study report (FSR) for the Hailin subproject; (ii) a review of the domestic EIA report for the subproject; (iii) an assessment of the original IEE for the project which was disclosed on ADB website in May 2012; (iv) a site visit conducted by an ADB mission in October 2016; and (v) discussions with key project stakeholders, including amongst others, Hailin City Government, Hailin Environmental Protection Bureau and the Hailang Thermal Power Co. Ltd, the implementation agency (IA) of the proposed subproject. 4. ADB’s environmental safeguard requirements are specified in the Safeguard Policy Statement (SPS 2009). The Project was classified by ADB as Environment Category B. The proposed new subproject is the same as other subprojects in terms of the nature and seriousness of its environmental impacts. The overall environmental impact classification still remains as Category B. Thus, an addendum to the Initial Environmental Examination (IEE) including an environmental management plan (EMP) is required for the newly proposed subproject. This addendum to the IEE for the new subproject has been prepared in compliance with the ADB’s SPS requirements.
B. The Project and Its Scope Change
5. In 2012 the PRC received a US$150 million loan from the Asian Development Bank (ADB) to assist the implementation of the Project. The development objective of the Project is to support nine cities and towns in Heilongjiang Province to improve their district heating infrastructure and reduce air pollutions from small inefficient small heat-only boilers. 6. The original approved project consists of nine district heating subprojects in Heilongjiang Province. Four subprojects have been dropped out from ADB finance due to various reasons and they were constructed using domestic funds. Thus, the Heilongjiang Provincial Government (HPG) has requested to add a new subproject to fully utilize the remaining ADB loan. The four dropped out subprojects are as follows:
i) Yichun Xinqing District Heating Network Expansion Subproject. The subproject was planned to install 16.68 km of heating network, build 9 new HESs, rehabilitate 18 old HESs, and shutdown 48 scattered, low-efficiency small coal-fired
1 Heilongjiang Energy Efficient District Heating Project Addendum to the IEE
boilers.
ii) Jidong District Heating Network Expansion Subproject. The scope of the subproject is to install 6,980 m of pipeline network, build 11 new HESs, and rehabilitate 23 HESs.
iii) Raohe District Heating Expansion Subproject. The subproject was planned to construct a heat source plant with 3×14 MW CFB hot water boilers, install a primary heating network with a total length of 4,990 m, rehabilitate a heating network of 2,670 m, and remove 19 scattered, inefficient small coal-fired boilers.
iv) Jiagedaqi District Heating Subproject. The scope of the subproject is to install 21,000 m of the heating pipeline, build 30 new HESs and shutdown 68 inefficient small coal-fired boilers within the city.
7. The new subproject proposed to replace these four subprojects is located in Hailin city of Mudanjiang Municipality, a city in the southeast of Heilongjiang Province. The new subproject is to construct a new combined heat and power (CHP) plant with three 130 t/h circulated fluidized-bed (CFB) hot water boilers with two units of B25 backpressure steam turbine-generators. The maximum design heating capacity is 196 MW and the heat-supply area will be 3.16 million m2. Moreover, 56 scattered and low efficiency coal-fired small boilers and about 10,000 home heating stoves will be removed upon construction of the subproject. The IA for the project is Hailang Thermal Power Co. Ltd., a private company.
Table 1-1: Summary of Key Parameters of Subprojects
Heating New Number of Heating Small SCADA Area Category Subproject Heating Heat Pipeline Boiler System (million Source Exchanger (km) Closure 2 m ) Harbin Taiping 2 x 116 40 Yes 22 18 4.0 HSP & DH MW CFB Jiamusi West _ 111 Yes 68 218 14.8 DH Subprojects being Qitaihe DH _ 33 Yes 30 15 7.6 implemented Tongjiang City 3 x 58MW 24 Yes 17 36 2.7 HSP& DH CFB Tangwanghe _ 22 Yes 27 16 1.5 DH Jiagedaqi DH _ 30 Yes 21 68 6.0 Jidong County _ 34 Yes 7 32 0.9 DH Raohe Town 3 x 14MW Subprojects 0 No 8 19 0.6 dropped HSP& DH CFB out Yichun City - Tangwanghe _ 27 Yes 17 48 2.7 DH 3 x 14MW Subtotal 91 - 53 167 10.2 CFB
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Proposed new Hailin City – 3 x130t/h 0 Yes 0 56 4.74 subproject CHP plant CFB CFB = circulated fluidized-bed, DH = district heating, HSP = heating source plant, CHP=combined heat and power, km = kilometer,m2 = square meter, MW = megawatt, SCADA = supervisory control and data acquisition, t/h = ton per hour. Sources: Subproject feasibility study reports.
C. Approach to Addendum Preparation
8. This addendum to the IEE report has been prepared based on domestic environmental impact assessment report (EIA) prepared for the subproject in compliance with the PRC’s environmental assessment requirements and regulatory framework at the national and local levels (see Chapter II for additional information on the domestic environmental assessment process). It was also supported by site visits, stakeholder consultations, and additional surveys undertaken by environmental consultants. Specifically, key data sources are summarized in the paragraphs below.
9. Project Description. Data sources include: i) subproject feasibility study report (FSR) prepared by a qualified domestic feasibility study institute; ii) domestic subproject EIA report prepared by the Heilongjiang Provincial Research Academy of Environmental Science; iii) Hailin Central Heating Plan (2014-2025) prepared by Heilongjiang Forestry Design & Research Institute; iv) due diligence undertaken by consultants, including environment and social specialists, and district heating technical specialist.
10. Climate. Data sources for local climate include data collected by the EIA institute from available databases.
11. Topography, Geology and Soil. Data sources include: i) subproject field surveys conducted by domestic EIA institute in 2012; and ii) subproject field surveys conducted by the environmental consultants from September to October 2016.
12. Terrestrial Ecological Resources. Data sources include: i) subproject ecological field surveys conducted by domestic EIA institute in 2012; and ii) subproject ecological field surveys conducted by the environmental consultants from September to October 2016.
13. Air Quality Baseline. Air quality data sources include: i) subproject specific air quality monitoring (PM10, SO2, and NO2) undertaken by Hailin Environmental Monitoring Station (EMS) on behalf of the subproject IA; and ii) data collected by the EIA institute from available existing databases.
14. Background Noise. Data sources for noise are from subproject specific noise monitoring undertaken by the EIA institute.
15. Water Resources. Samples were collected and analyzed during domestic EIA preparation process by the EIA institute. 16. Socioeconomic Status. Socioeconomic surveys and data were collected by the domestic EIA institute in 2012 and social specialist in September 2016. 17. Public Consultation and Information Disclosure. Public consultation was conducted through questionnaire surveys with community representatives, local village committees and local governmental divisions by domestic EIA institute in November 2012. Subproject information was disclosed on the local government’s website and newspaper in November and December 2012.
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18. Energy Efficiency and Emissions Reduction. Coal saving data is calculated by the consultants based on the domestic FSRs and energy conservation assessment reports for the new subproject. The environmental consultants conducted analysis on air pollutant emission reduction.
D. Structure of the Addendum
19. This addendum to the IEE report consists of nine chapters and an appendix. The chapters of the main report are summarized below.
20. Chapter I is the Introduction, which briefly introduces the subprojects for the scope change, report purpose, approach to addendum preparation, and the structure of the addendum.
21. Chapter II describes the policy, legal, and administrative framework and it also discusses PRC’s and ADB’s environmental assessment legal and institutional frameworks.
22. Chapter III provides the description of the newly proposed Hailin subproject. Chapter IV provides is the description of the baseline environment including current environmental conditions in the newly proposed subproject.
23. Chapter V provides anticipated impacts and mitigation measures, expected positive and negative environmental impacts of the newly proposed subproject during construction and operation. It further covers the proposed mitigation measures.
24. Chapter VI presents the results of alternative analysis for heat source, boiler technology and emission control technologies. Chapter VII discusses information disclosure and public consultations. It covers the public consultation activities of each new subproject. A grievance redress mechanism is presented in Chapter VIII.
25. The last chapter of the addendum, Chapter IX, summarizes the conclusions of various analyses. The approval of domestic environmental impact assessment is attached as Appendix 1. The original environmental management plan (EMP) has been updated based on this newly added subproject and new EMP is presented in Appendix 2 including environmental monitoring plan.
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II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK
26. This section of the addendum provides policy, legal and administrative framework applicable to the proposed Hailin subproject, which includes the PRC’s national and local environmental legal and institutional framework and environmental assessment requirements, as well as ADB safeguard policies, regulations, requirements, and procedures.
A. Legal Framework of the PRC
27. The environmental protection and management system in the PRC consists of a well-defined hierarchy of regulatory, administrative and technical institutions. At the top level the People’s Congress of the PRC has the authority to pass and revise national environmental laws; the Ministry of Environmental Protection (MEP) under the State Council promulgates national environmental regulations; the MEP either separately or jointly with the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) issues national environmental standards. The provincial and local governments can also issue provincial and local environmental regulations and guidelines in accordance with the national ones. In addition, national and local five-year environmental protection plans form an important part of the legal framework. 28. An EIA management procedure has been established in the PRC for over 20 years. Domestic EIA studies are required to be undertaken within the PRC national and local legal and institutional framework for new construction projects. The primary laws that govern the EIA study of the project are provided in Table 2-1. Table 2-1: Applicable Environmental Laws
No. Title of the Law Year Issued 1 Environmental Protection Law 1989 and last amended in 2014 2 Environmental Impact Assessment Law 2003 and amended in 2016 3 Water Law 1988 and last amended in 2016 4 Water Pollution Prevention and Control Law 1984 and amended in 2008 5 Air Pollution Prevention and Control Law 2000 and last amended in 2015 6 Noise Pollution Control Law 1996 7 Solid Waste Pollution Prevention and Control Law 2004 8 Water and Soil Conservation Law 1991 and last amended in 2010 9 Forest Law 1998 10 Wild Fauna Protection Law 2004 11 Cleaner Production Promotion Law 2002 12 Urban and Rural Planning Law 2008 13 Land Administration Law 1999 14 Energy Conservation Law 1997 and last amended in 2016 Management Provisions on the Reporting and 15 2005 Registration of Pollutant Discharges
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No. Title of the Law Year Issued Measures for the Disclosure of Environmental 16 2007 Information Management Measures on Automatic Monitoring and 17 2005 Inspection of Pollution Sources Measures on Supervision and Management of Energy 18 Conservation of Specialized Equipment with High 2009 Energy Consumption 19 National Catalogue of Hazardous Wastes 2016 Regulations on Hazardous Chemical Safety 20 2011 Management Norms on Hearing Protection for Workers at Industrial 21 1999 Facilities Measures on Management of Pollution Sources 22 1999 Monitoring 23 Regulations on National Pollution Source Survey 2007
Source: Consultants. 29. The implementation of environmental laws and regulations is supported by a series of associated management and technical guidelines and some of them are listed in Table 2-2. Table 2-2: Applicable Environmental Assessment Guidelines
No. Guideline Code/Year 1 Guideline for Technical Review of EIA on Construction Projects HJ 616-2011 2 Management Guideline on EIA Categories of Construction Projects 2008 Further Enhance the Management of EIA and Preventing 3 2012 Environmental Risks Guideline on Jurisdictional Division of Review and Approval of EIAs for 4 2009 Construction Projects 5 Guideline on EIA Categories of Construction Projects 2008 6 Interim Guideline on Public Consultation for EIA 2006 7 Technical Guidelines for EIA – General Program HJ 2.1-2011 8 Technical Guideline for EIA – Atmospheric Environment HJ 2.2-2008 9 Technical Guideline for EIA – Surface Water HJ/T 2.3-1993 10 Technical Guideline for EIA – Acoustic Environment HJ 2.4-2009 11 Technical Guideline for EIA – Groundwater Environment HJ 610-2016 12 Technical Guideline for EIA – Ecological Impact HJ 19-2011 Technical Guidelines for Environmental Risk Assessment for 13 HJ/T 169-2004 Construction Projects 14 Technical Guidelines for Fugitive Emission Monitoring of Air Pollutants HJ/T 55-2000 15 Code of Practice for Selection of Personal Protective Equipment GB/T 11651-2008 16 Safety Signs and Guideline for the Use GB2894-2008 Guidelines for Enterprises to Develop Emergency Response Plan for 17 AQ/T 9002-2006 Work Place Accidents
Source: Consultants.
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30. The environmental quality standard system that supports and evaluates the implementation of the environmental protection laws and regulations in the PRC is classified into two categories by function (i.e., pollutant emission/discharge standards and ambient environmental standards). The relevant main standards applicable to the project are shown in Table 2-3. Table 2-3: Applicable Environmental Standards
No. Standard Code 1 Surface Water Quality Standard GB 3838-2002 2 Urban Ambient Acoustic Quality Standard GB 3096-2008 3 Ambient Air Quality Standard GB 3095-2012 4 Integrated Emission Standard of Air Pollutants GB 16297-1996 5 Integrated Wastewater Discharge Standard GB 8978-1996 6 Underground Water Quality Standard GB/T 14848-93 7 Domestic Drinking Water Quality Standard GB 5749-2006 Emission standard of environment noise for boundary of construction 8 GB 12523-2011 site 9 Emisson standard for industrial enterprises noise at boundary GB 12348-2008 10 Emission standard of air pollutants for thermal power plants GB13223-2011 11 Emission standard of air pollutants for boiler GB 13271-2014 Standard for Pollution Control on the Storage and Disposal Site for 12 GB 18599-2001 General Industrial Solid Wastes 13 Standard for Pollution Control on Hazardous Waste Storage GB 18597-2001 14 Safety Regulation for Dust Explosion Prevention GB 15577-2007 15 Discharge Standard for Municipal Wastewater CJ 3082-1999 Discharge standard of pollutants for municipal wastewater treatment GB18918-2002 16 plant
Source: Consultants.
B. Applicable ADB Policies, Regulations and Requirements
31. The major applicable ADB policies, regulations, requirements and procedures for environmental impact assessment of projects are the Environmental Safeguards–A Good Practice Sourcebook (2012), and the Safeguard Policy Statement (SPS 2009), which provides the basis for this addendum. The SPS promotes good international practice as reflected in internationally recognized standards such as the World Bank Group’s Environmental, Health, and Safety Guidelines (EHS Guidelines)1. More stringent pollution prevention and abatement standards will be adopted in case there are differences between the PRC regulations and EHS Guidelines. 32. The domestic EIA is prepared initially for the PRC approval processes, which are required to adopt PRC standards for the quality of water, air, noise, etc. This addendum