Environmental Impact Assessment
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Environmental Impact Assessment Project Number: 47051-002 August 2015 PRC: Chemical Industry Energy Efficiency and Emissions Reduction Project Prepared by ChemChina and CHC for the Asian Development Bank. This is the updated version of the draft of the draft posted in May 2015 available on http://www.adb.org/projects/documents/chemical-industry-energy-efficiency-and-emission- reduction-project-eia. CURRENCY EQUIVALENTS (as of 3 August 2015) Currency unit – yuan (CNY) CNY1.00 = $ 0.1610 $1.00 = CNY 6.2077 ABBREVIATIONS ADB – Asian Development Bank AP – Affected Person API – American Petroleum Institute ASL – Above Sea Level CCPS – Center for Chemical Process Safety CEMS – Continuous Emissions Monitoring System ChemChina – China National Chemical Corporation CHC – China Haohua Company CHP – Combined Heat and Power CNY – Chinese Yuan CSEMP – Construction Site Environmental Management Plan DCS – Distributed Control System EA – Executing Agency EHS – Environment, Health and Safety EHSS – Environment, Health and Safety Specialist EHSU – Environment, Health and Safety Unit EIA – Environmental Impact Assessment EMoP – Environmental Monitoring Plan EMP – Environmental Management Plan EMS – Environmental Monitoring Station EPB – Environmental Protection Bureau FSR – Feasibility Study Report Flor – Calcium fluoride (CaF2) or “fluorite” GDP – Gross Domestic Product GHG – Greenhouse Gas GIP – Good International Practice GRM – Grievance Redress Mechanism HDP – High Density Polyethylene IA – Implementing Agency IEE – Initial Environmental Examination IT – Interim Target LIC – Loan Implementation Consultant MEP – Ministry of Environmental Protection MSDS – Material Safety Data Sheet NG – Natural Gas OM – Operations Manual, ADB PCR – Physical Cultural Resources PLC – Process Logic Controller PPCU – Project Public Complaint Unit PPE – Personnel Protective Equipment PPTA – Project Preparatory Technical Assistance PRC – People’s Republic of China PTFE – PolyTetrafluoroethylene (It is called, “Teflon”) PUR – Polyurethane SPS – Safeguard Policy Statement, ADB SPEPB – Sichuan Province Environment Protection Bureau TA – Technical Assistance UPS – Uninterrupted Power Supply WB – World Bank WHO – World Health Organization WEIGHTS AND MEASURES AHF – Anhydrous hydrogen fluoride BOD5 – Biochemical Oxygen Demand, 5 days CaCO3 – Calcium Carbonate CaSO4 – Calcium sulfate CaF2 – Calcium Fluoride C2F3Cl – trifluorochloroethylene C2F4 – tetrafluoroethylene CaSO4 – Calcium sulfate C2F4 – tetrafluoroethylene C–C4F8 – Octafluorocyclobutane CHCl3 – trichloromethane CHClF2 – Difluorochloromethane CHF3 – Trifluoromethane C2H2F2 – Vinylidene Fluoride C2H3ClF2 – difluorochloroethane Cl2 – chlorine cm – Centimeter CO2 – Carbon Dioxide CO2e – Carbon Dioxide equivalent COD – Chemical Oxygen Demand dB(A) – A-weighted sound pressure level in decibels DO – Dissolved Oxygen GJ – Gigajoules GWh – Gigawatt Hour HF – Hydrogen fluoride ha – Hectare H2SO4 – Sulfuric acid H2SO4 XSO3 – Sulfuric acid fuming i–C4F8 – octafluoroisobutylene kg – Kilogram km – Kilometer kV – Kilovolt kWh – Kilowatt Hour Leq – Equivalent Continuous Noise Level m – Meter m/s – Meters per Second m³ – Cubic Meter mg/l – Milligrams per Liter mg/m3 – Milligrams per Cubic Meter MW – Megawatt Nm³ – Normal Cubic Meter NO2 – Nitrogen Dioxide NOx – Oxides of Nitrogen °C – Degrees Celsius pH – A measure of the acidity or alkalinity of a solution PM10 – Particulate Matter smaller than 10 micrometers PM2.5 – Particulate Matter smaller than 2.5 micrometers SO2 – Sulfur Dioxide t/h – Tons per hour TSP – Total Suspended Particulates NOTE In this report, "$" refers to US dollars. This environmental audit report 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. Your attention is directed to the “terms of use” section on ADB’s website. 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 EXECUTIVE SUMMARY i I. INTRODUCTION 1 A. The Project 1 B. Purpose of the Report 3 C. Structure of the Report 3 II. POLICY, LEGAL, AND ADMINISTRATIVE FRAMEWORK 5 A. Legal Framework of the PRC 5 B. PRC Environmental Impact Assessment Framework 6 C. Project Domestic EIA Report Approval Status 7 D. Relevant International Agreements 9 E. Other International Relevant Guidelines 9 F. Relevant Guidelines and Standards 9 G. Applicable ADB Policies, Regulations and Requirements 19 I. INTRODUCTION 22 A. The Subproject 22 B. The subproject rationale 22 C. Report Structure of Part I 23 II. ENVIRONMENTAL STANDARDS, GUIDELINES, AND REQUIREMENTS 26 III. ENVIRONMENTAL AUDIT OF CURRENT OPERARTIONS AT ZHONGHAO CHENGUANG RESEARCH INSTITUTE OF CHEMICAL INDUSTRY COMPANY LTD. 30 A. Approaches and Procedure of Environmental Audit 30 B. CGY Company Overview 33 C. CGY’s Products 34 D. Plant Location and Plant Layout (Study Area) 37 E. Description of Historic/Current Production Processes 39 F. Compliance for Standards, Approvals, and Permits Requirements 51 G. Environment, Health, and Safety Management 53 H. Emergency Management 67 I. Public consultation and grievance redress system at CGY 68 J. Areas of Concern 68 K. Conclusion of Environmental Audit of DSC 69 L. Proposed Corrective Actions 69 IV. ENVIRONMENTAL IMPACT ASSESSMENT OF CGY SUBPROJECT COMPONENTS72 A. EIA Scope and Approaches 72 B. Detailed Description of Project Components 72 C. The Location of Subproject Components and Description of the Environment 78 D. Environmental Baseline 81 E. Anticipated Impacts and Mitigation Measures 89 F. Alternative Analysis 106 G. Information disclosure and public consultation 108 H. Grievance Redress Steps at CGY 113 I. INTRODUCTION 117 A. The subproject 117 B. The rationale of the subproject 117 C. Report Structure of Part II 117 II. ENVIRONMENTAL STANDARDS, GUIDELINES, AND REQUIREMENTS 121 III. ENVIRONMENTAL AUDIT OF CURRENT OPERATIONS AT DEZHOU SHIHUA CHEMICAL CO., LTD 127 A. Approaches and procedure of environmental audit 127 B. Description of Dezhou Shihua Chemical Co., Ltd. (DSC) 129 C. Description of Current Production Processes 133 D. Compliance for Standards, Approvals, and Permits Requirements 137 E. Environment, Health, and Safety Management 137 F. Emergency Management 148 G. Areas of Concern 150 H. Conclusion of Environmental Audit of DSC 153 I. Proposed Corrective Actions 154 IV. ENVIRONMENTAL IMPACT ASSESSMENT OF DSC SUBPROJECT COMPONENTS160 A. EIA Scope and Approaches 160 B. Detailed Description of Project Components 160 C. The Location of Subproject Component and Description of the Environment 163 D. Environment Baseline 169 E. Anticipated Impacts and Mitigation Measures 186 F. Alternative Analysis 208 G. Information disclosure; public consultation; 209 H. Grievance Redress Steps at DSC 214 APPENDIX 1. THE DSC EMERGENCY RESPONSE PLAN 216 I. GRIEVANCE REDRESS MECHANISM OF THE FIL PROJECT 224 II. THE PROJECT ENVIRONMENTAL MANAGEMENT PLAN 226 A. Objectives 226 B. Implementation Arrangements 226 C. Institutional Strengthening and Capacity Building 229 D. Estimated Budget for the FIL Project Environmental Investment 229 E. CGY Subproject 234 F. DSC Subproject 250 G. Reporting Requirements 272 H. Performance Indicators 273 I. Mechanisms for Feedback and Adjustment 274 Table of Tables Table 1.Applicable PRC Environmental Laws ............................................................................ 5 Table 2. Applicable PRC Environmental Management and Assessment Guidelines .................. 5 Table 3. Relevant International Environmental Agreements ....................................................... 9 Table 4. Applicable PRC environmental standards ...................................................................10 Table 5. PRC Ambient air quality standards (GB3095-2012) and WHO/World Bank’s EHS guidelines on ambient air quality ...............................................................................................11 Table 6. The PRC’s Integrated Emission Standard of Air Pollutants (GB 16297-1996) on maximum concentration of source emissions ............................................................................12 Table 7. PRC emissions standards at site boundary .................................................................13 Table 8. Environmental Quality Standards for Surface Water in the PRC..................................14 Table 9. Quality Standards for Ground Water in the PRC .........................................................15 Table 10. Wastewater discharge standards in the PRC in comparison with the General EHS guidelines ..................................................................................................................................16 Table 11. Environmental Quality Standards for Noise (GB3096-2008) and relevant international guidelines ..................................................................................................................................17 Table 12. Air Emissions Standards Relevant to Plasmas Incineration .......................................27 Table 13.Chemical Industry Air Emissions Standards relevant to CGY .....................................28 Table 14. Relevant PRC Emission Standards of Air Pollutants for Coal-burning, Oil-burning, Gas-fired Boilers (GB 13217-2001) and relevant