Environmental Report for the Years 2017 – 2018

Environmental report

for the years 2017 – 2018

Table of Contents

Subject Page

Introduction 3

IEC policy on environmental protection 4

Promoting environmental awareness among employees 6

Free access for the public to information on environmental issues 7

Emissions to the environment 8

Emission of major pollutants to the air 9

The air pollution control project at coal-fired generation units of 14 Orot Rabin and Rutenberg sites

The IEC air monitoring system 15

Reduction of greenhouse gas emissions and climate change 19 mitigation

Transportation and IEC vehicles use 22

Water use and conservation 23

Coal combustion by-products 31

Hazardous materials and hazardous waste 33

Green purchasing 34

Solid waste 35

Noise reduction 39

Environmental aspects of electric and magnetic fields 40

IEC's influence on biodiversity 42

Biodiversity – land aspects 42

Biodiversity – marine aspects 44

List of tables

Subject Page

Table 1: Distribution rate of generation (in percentage) by the types of fuels that 10 have been used in the generation of electricity in the years 2012– 2018 Table 2: Comparison of actual air emissions reduction rates with the targets for 11 2020 Table 3: Emissions to the air as a result of fuel combustion for electricity 12 generation by the IEC in the years 2010 - 2018 [gram / kWh produced] Table 4: Emissions of pollutants to the air as a result fuel combustion for 13 electricity generation by the IEC in the years 2010 - 2018 [metric ton / year] Table 5: List of IEC's meteorology and air quality monitoring stations (updated in 16 2018) Table 6: The distribution of direct greenhouse gas emissions (Scope 1) by 20 sources, in 2018 Table 7: IEC's greenhouse gases emissions reported in the framework of the 21 voluntary mechanism reporting project to the Ministry of Environmental Protection for the years 2010 – 2018 Table 8: Summary of Fresh water amounts consumed by the IEC in the years 25 2013 – 2018 Table 9: Summary of poor quality water use by the IEC in the years 2013 – 2018 26

Table 10: Summary of the use of water from all sources by the IEC in the years 26 2013 – 2018 Table 11: Poor quality water use as percentage of total water consumption by 27 the IEC for the years 2013 – 2018 Table 12: Summary of seawater use for main cooling of IEC costal power stations 27 for the years 2013 – 2018 Table 13: Summary of treated industrial waste water effluents discharges to the 28 sea from IEC sites, according to Authorities' permits, for the years 2013 – 2018 Table 14: Summary of the amount of effluents used or discharged to the 29 environment during the period 2013-2018: Part A – Effluents of sanitary waste water treatment [m3] Table 15: Summary of the amount of effluents used or discharged to the 30 environment during the period 2013-2018: Part B - Treated industrial waste water effluents, boron-enriched water and concentrate water from demineralization production facilities [m3] Table 16: Total hazardous and non-hazardous waste transfers from the IEC 36 power station sites during 2018 [kg] Table 17: Total hazardous and non-hazardous waste transfers from the IEC 37 power station sites during 2017 [kg] Table 18: Total hazardous and non-hazardous waste transfers from the IEC 38 power station sites during 2016 [kg] Table 19: Sediment dwelling organisms' distribution into main groups as affected 49 by coal content in the sediment of the area of Orot Rabin coal pier, summer 2018 (average of 3 replicates)

Introduction

The IEC operates as an integrated and coordinated system that deals with all stages of the electricity chain, from the generation of electricity, through its transmission and transformation, to its sale and distribution to the customers. In addition, the company is involved in establishing the necessary infrastructure for these activities and serves as the power system manager through the system management unit. As a result, the electricity company considers itself committed to providing available and high-quality electricity from a variety of electricity sources available to the national electricity sector, both through the electricity company's production system and through the production structure of private electricity producers operating under the electricity law that came into effect in 1996.

The company has 3 main areas of activity along the electricity chain, which are divided into the following segments:

A. The generation segment - power generation system on the coast that includes steam power station sites, combined cycle and jet gas turbines [in Haifa, Hadera (Orot Rabin), Tel Aviv (Redding), Ashdod (Eshkol) and Ashkelon (Rutenberg)], as well as a national domestic generation system using combined cycle, industrial gas turbines and jet gas turbines (in Alon Tavor, Hagit, Gezer, Tzafit, Ramat Hovav, Atarot, Eilat, Kinnerot, Caesarea, Raanana, Hartuv & Eitan).

B. Transmission and Transformation segment - power transmission system from the generation sites through transmission lines at ultra and ultra-high voltages to the switching stations and substation and from there to the transformation stations (distribution / transformation transformers). In the switching stations, substations and transformers, the transformation operation changes the voltage levels from ultra-high to ultra-voltage, and from ultra to high voltage so that it can be safely supplied in the distribution segment (end- consumers).

C. The distribution segment - the power supply system for the customers from the substations using high voltage and low voltage lines. This structure also includes the stage of selling electricity to customers.

We are honored to present you the Annual Environmental Report for the years 2017 - 2018. This report has been voluntarily published since the year 2000.

The IEC's Sustainability Report is also published since 2013. The Environmental Report is a report that complements the main environmental aspects related to the IEC's activities and presents additional data.

IEC policy on environmental protection

The IEC operates in accordance with environmental protection policy principles that were first approved in 1997 and are updated from time to time. The principles include:

A. Incorporating environmental considerations into all areas of activity, including decision- making processes.

B. Designing and operating the facilities while ensuring continuous mitigation of the environmental impacts, taking into account existing development principles while adopting the best proven and economical technologies.

C. Adopting proven advanced environmental conduct rules.

D. Intelligent use of natural resources and raw materials: land, air, water and fuels.

E. Reduction and recycling of waste and by-products.

F. Incorporating scenic, regional and environmental considerations into the design of new facilities and maintenance of existing facilities.

G. Open and transparent dialogue with the public, with regard to plans that have environmental implications.

H. Reducing greenhouse gas emissions in the spirit of international treaties, which the State of Israel partners in, by increasing the efficiency of power stations, expanding the use of environmentally friendly fuels and energy sources, and encouraging electricity savings.

I. Joint activity with environmental, state, public and international entities, including participation in environmental research, and development of advanced technologies.

J. Implementing environmental values in the organizational culture, raising awareness and environmental commitment of company employees and integrating environmental issues into its activities in the local community.

In this context, the IEC carries out various operations, including:

 Implementing the policy as part of the company's organizational culture.  Installing facilities to prevent and reduce environmental impacts.  Use of natural gas which is characterized by relatively low emissions, as the main fuel in existing power stations.  Operation of production facilities using combined cycle technology that optimally utilizes the steam generated in the production process to produce additional energy.  Promote reuse of treated water and effluents at company sites.  Adopt the principle of "prudent avoidance" to reduce electric and magnetic fields in the electricity grid.  Fostering the awareness and commitment of company employees to environmental issues in the company's operations.  Allocating research and development budgets for environmental issues.  Monitoring and implementing new technologies.  Collaboration with research and academic institutions.  Integrating environmental parameters into work processes and key projects.  Expanding the use of environmentally friendly materials. 5

 Continuous monitoring and control operations of environmental impacts in land, air, water and sea.  Transfer real-time monitoring data and information transparency.  Implementing ISO 14000 quality standards and environmental management & control system.  Monitoring local and international legislation and regulations and examining future trends.  Reduce waste generation, recycling and disposal of waste properly.  Promoting the use of by-products: gypsum & coal ash.  Constant work to improve and nurture the appearance of existing facilities.  Ensure transparency of public information regarding activities with environmental implications.  Publication of a corporate sustainability report and periodic environmental accountability.

The environmental issue is now an integral part of the operation, maintenance, planning and development of IEC's facilities. The company's activities are subject to extensive regulation. The Company studies the implications of environmental laws, acts to prevent or minimize the environmental risks that may occur during its operations, prepares for the economic, legal and operational implications of environmental laws and allocates funds in its budget to comply with the environmental laws that apply to it and those that are expected to be applied.

Promoting environmental awareness among employees

The IEC acts to raise environment and sustainability awareness, and provides training to its employees on a variety of levels:

 Developing and implementing environmental education curricula for company employees and managers with the aim of raising awareness of this subject and providing up-to-date knowledge.  As of 2005, there is the "Green – Blue – Orange" competition - the CEO's environment award. The award is intended to commemorate outstanding employees in environmental conservation. The competition encourages the assimilation and internalization of environmental values among employees, while accepting personal responsibility, initiating and leading to significant, measurable improvement in the areas of the environment and the rational use of resources, in the work environment and in general.  The publication of a "green page" in the internal newspaper of the IEC, which deals with environmental issues relevant to the company's activities.

Free access for the public to information on environmental issues

In accordance with the Free Access to Information Regulations - "Providing Environmental Information for Public Review, 2009", IEC publishes environmental information on its website.

One can look at the announcements published on the company's website (www.iec.co.il).

More information can be found on the IEC's website, among others, in the following publications:

- Annual Environmental Reports since year 2000 http://www.iec.co.il/environment/Pages/environmentalReports.aspx

- Reporting within the framework of voluntary mechanism on recording and reporting of greenhouse gas emissions, mainly as a result of fuel combustion for electricity generation. https://www.iec.co.il/environment/2017/טופס%20דיווח%20למנגנון%20הוולונטרי%2 %20-0פליטת%20גזי%20חממה%20-חברת%20החשמל%20-שנתpdf.%202017

- Carbon dioxide calculator, which allows electricity consumers to calculate the amount of carbon dioxide (CO2) emitted into the atmosphere as a result of electricity consumption for a given year, and to compare between different years. http://www.iec.co.il/environment/Pages/PollCalculator.aspx

- "Corporation Business Description" Report https://www.iec.co.il/investors/DocLib1/meshulav1217.pdf https://www.iec.co.il/investors/DocLib1/meshulav1218.pdf

- Air pollution monitoring reports

/https://www.iec.co.il/environment/2017ממצאי%20ניטור%20איכות%20אווירpdf.%202017

- Real-time air monitoring data from the Ministry of Environmental Protection website http://www.svivaaqm.net/

- Reports in accordance with emission permits https://www.iec.co.il/environment/2017/דוחות%20בהתאם%20להיתרי% 20פליטה%20-שנתpdf.%202017

Note: Similar reports for 2018 will only be available in the second half of 2019.

Emissions to the environment

The IEC sees and considers the importance of designing and operating its facilities, while taking care of a continuous reduction of environmental impacts, and taking into account the principles of sustainability development through adopting the best technologies from environmental and economic points of view.

In this section, we will review pollutants emission to air from the electricity generation sites, which is a major issue that the company deals with in the context of environmental emissions.

Further information can be found in the reports submitted to the Ministry of Environmental Protection according to the Environmental Protection Law (Releases and Transfers to the Environment - Reporting and Registering Obligations), 2012. According to this law, IEC submits annual Pollutant Release and Transfer Register (PRTR) reports for 17 IEC sites that require reporting, using a computerized form.

- PRTR reports at IEC website:

https://www.iec.co.il/environment/2017/prtr-2017-iec.pdf

- In addition, these reports are published on the Ministry of Environmental Protection website:

http://www.sviva.gov.il/PRTRIsrael/Pages/default.aspx

These reports include, inter alia, the quantities of pollutants emitted into the air, to water sources and to the soils (above the threshold values defined in technical manuals), the quantities of pollutants transferred in wastewaters to the environment routinely and during malfunctions, as well as the quantities of the different types of waste transferred off-site.

Emission of major pollutants to the air

During the electricity generation process, various types of gases are emitted to the atmosphere as a result of fuel combustion. The main gases emitted are: sulfur dioxide (SO2), nitrogen oxides (NOX), particulate matter (PM) and carbon dioxide (CO2).

There is a trend towards a continuous reduction of emissions into the air due to the following main factors:

• Expanding the use of natural gas whose sulfur content is negligible

• Successful completion of the air pollution control project at Orot Rabin coal fired power station

• Performing the air pollution control project at Rutenberg coal fired power station

• Operation of combined cycle generation units with an especially high efficiency

• Reducing the use of coal in accordance with the instructions of the Minister of Energy and in accordance with the emission permits instructions

• Using low-sulfur liquid fuel only for backup

Table 1: Distribution rate of generation (in percentage) by the types of fuels that have been used in the generation of electricity in the years 2012– 2018

The shift of electricity generation from coal and liquid fuels to natural gas can be seen. It contributed to a significant reduction in emissions air pollutants and greenhouse gases

Data from the financial statements of the IEC:

https://www.iec.co.il/investors/DocLib1/meshulav1218_nagish.pdf https://www.iec.co.il/investors/DocLib1/meshulav1217.pdf https://www.iec.co.il/investors/DocLib1/year2016.pdf https://www.iec.co.il/investors/DocLib1/ISA2015.pdf

Year Percentage of Percentage of Percentage of Percentage of Percentage of generation generation generation generation generation using coal using natural using LNG using diesel using heavy gas (Liquefied fuel fuel oil Natural Gas)

2012 63.4 14.3 0.0 15.2 7.1

2013 56.2 36.5 4.1 2.6 0.6

2014 58.2 41.1 0.6 0.1 0.0

2015 57.6 40.3 1.3 0.7 0.1

2016 49.6 46.3 3.6 0.4 0.1

2017 45.2 48.5 5.0 1.1 0.2

2018 43.0 49.1 7.4 0.4 0.1

Table 2: Comparison of actual air emissions reduction rates with the targets for 2020*

Air pollutant Emission reduction target Actual emissions reduction [metric ton / year]: [metric ton / year]: Year 2020 compared to Year 2018 compared to 2012 2012 Nitrogen oxides NOX - 60% -62%

Sulfur dioxide SO2 - 60% -71%

Carbon dioxide CO2 - 20% -37%

Carbon footprint CO2eq - 20% -37%

* The targets for 2020 were published in the 2018 Corporate Sustainability Report

Table 3: Emissions to the air as a result of fuel combustion for electricity generation by the IEC in the years 2010 - 2018 [gram / kWh produced]

Year Generated NOx SO2 Particulate CO2 CO2eq energy emissions emissions matter emissions emissions [thousands [gram / [gram / emissions [gram / [gram / of MWh] kWh kWh [gram / kWh kWh produced] produced] kWh produced] produced] produced] 702 2010 56,102 1.60 1.50 0.051 699

709 2011 57,146 1.70 1.60 0.053 707

757 2012 61,074 1.80 1.68 0.056 754

677 2013 57,119 1.59 1.47 0.047 674

661 2014 51,726 1.42 1.36 0.035 659

669 2015 50,641 1.32 1.34 0.046 667

637 2016 48,718 1.07 1.08 0.042 635

617 2017 48,788 0.92 0.77 0.038 614

608 2018 47,905 0.88 0.63 0.032 605

2018 vs 2012 -22% -51% -63% -43% -20% -20% 2018 vs -10% -16 % -45% -57% -32% -10% 2013 2018 vs -1% -2% -4% -18% -16% -1% 2017

Table 4: Emissions of pollutants to the air as a result fuel combustion for electricity generation by the IEC in the years 2010 - 2018 [metric ton / year]

Year Generated NOx SO2 Particulate CO2 CO2eq energy emissions emissions matter emissions emissions [thousands [metric [metric emissions [metric [metric of MWh] ton / ton / [metric ton / year] ton / year] year] year] ton / year] 39,375,206 2010 56,102 92,324 82,860 2,873 39,214,127

40,543,180 2011 57,146 95,419 93,051 3,028 40,373,568

46,240,061 2012 61,074 109,920 102,648 3,403 46,035,963

38,655,755 2013 57,119 90,680 84,167 2,661 38,500,369

34,207,232 2014 51,726 73,577 70,423 1,835 34,069,079

2015 33,757,748 33,893,752 50,641 66,925 67,636 2,336

2016 30,938,165 31,055,231 48,718 51,888 52,663 2,041

30,087,822 2017 48,788 44,800 37,592 1,856 29,978,814

2018 41,957 29,951 1,516 47,905 29,006,456 29,109,700

2018 vs -22% -62% -71% -55% -37% -37% 2012 2018 vs -16 % -54 % -64 % -43 % -25 % -25 % 2013 2018 vs -2% -6% -20% -18% -3% -3% 2017

The air pollution control project at coal-fired generation units of Orot Rabin and Rutenberg sites

In recent years, IEC has built air pollution control facilities at Orot Rabin site in Hadera, and is in advanced stages of establishing also air pollution control facilities at Rutenberg site in Ashkelon. This is a complex project that takes several years to build with a final cost of about NIS 7 billion (not including interest during the time of the construction).

This project is a milestone in the environmental investment of the IEC for the coming years and upon completion, Israeli residents will continue to enjoy reliable and available electricity, while enjoying cleaner air and more environmentally friendly electricity.

The projects at power stations Orot Rabin in Hadera and Rutenberg in Ashkelon include the upgrading of coal pulverizing and burning systems (primary methods), the installation of scrubbers to reduce sulfur dioxide emissions (FGD), and the installation of catalytic systems (SCR) to reduce nitrogen oxides emissions. The FGD scrubber operation is based on reaction of the sulfur dioxide in the flue gases with limestone and formation of wet gypsum. Due to the "wet" reaction process, the treated gases are saturated with water vapor and therefore a white smoke is observed at the top of the stack, which results from the wetness of the emitted gases.

The Flue Gas Desulphurization facility (FGD) could not be fitted and connected to the existing stacks at the sites, so new stacks were established at each site. The new stacks are used for generation units 5 and 6 at Orot Rabin and units 1 and 2 at Rutenberg site (a FGD facility already exists for units 3 and 4 at Rutenberg site).

At Orot Rabin site (units 5 and 6), the project was completed, all facilities were put into full operation, so the emissions were significantly reduced and the units meet now stringent emission values, in accordance with international standards. For the two units at Rutenberg site (units 1 and 2), the construction work has been completed and the air pollution control facilities are in the process of commissioning (the upgraded units and all the new systems), which will take several months. The by-product of the sulfur dioxide removal process is gypsum, with a quality suitable for the cement industry and the gypsum wall manufacturing industry.

The IEC air monitoring system

The IEC has established and operates an air quality monitoring system. In 2018, 31 air quality and meteorology monitoring stations were operated in various parts of the country. This monitoring system is part of a national air quality monitoring system, operating according to the Clean Air Law. The members of this monitoring system are Environmental Cities Associations (Haifa, Hadera, Ashdod, and Ashkelon), the Ministry of Environmental Protection, and the Israel Electric Company.

The IEC monitoring stations operate in the following areas:

Haifa area - 3 stations, Hadera area - 3 stations, Tel Aviv area - 7 stations, Ashdod area - 4 stations, Ashkelon area - 3 stations, Alon Tavor area - 3 stations, Gezer area - 4 stations, Ramat Hovav area - 2 stations and in Eilat area - 2 stations.

The air pollutants (all or part of them) measured by the IEC monitoring stations in 2017 and 2018 were: sulfur dioxide (SO2), nitrogen oxides (NOx), nitrogen dioxide (NO2), ozone (O3), and fine particulate matter. In addition, measurements of wind direction, wind speed and other meteorological parameters are performed at several Environmental Protection.

Findings from the air quality measurements obtained from the IEC monitoring stations in 2017 and 2018 show that the concentrations of SO2 (a typical pollutant for coal, heavy fuel oil or diesel fuel combustion) are in a downward trend and are significantly lower than the environmental standards fixed according to the "Clean Air Regulations (Air Quality Values), 2011". This is in line with the reduction in emissions by IEC power generation units, as described above.

For other air pollutants, in 2017 and 2018, IEC monitoring stations occasionally recorded concentrations of nitrogen oxides, nitrogen dioxide, ozone and fine particulate matter, which were relatively high and sometimes even higher than the air quality standards. These cases appear to be unrelated, or at least not directly related to emissions from the power stations. High concentrations of nitrogen oxides and nitrogen dioxide are associated with the transportation sector, high concentrations of ozone are attributed to photochemical processes in the atmosphere, and high concentrations of fine particulate matter were measured during haze events and dust storms coming from distant desert sources.

Below is the link to the air monitoring reports (IEC website):

/https://www.iec.co.il/environment/2017ממצאי%20ניטור%20איכות%20אווירpdf.%202017

During 2017 and 2018, the IEC conducted the upgrading of the monitoring devices, buildings and infrastructure at all existing monitoring stations. It ensures improvement of the data reliability and availability.

During 2018, the IEC's Air Monitoring Laboratory was Environmental Protection was certified to the ISO 17025 standard "general requirements for the competence of testing and calibration laboratories".

Table 5: List of IEC's meteorology and air quality monitoring stations (updated in 2018)

Station name Station address Coordinates Altitude Measured above sea parameters level (m) Haifa area Central Carmel Hugim High school, 4 SO NO NO O 745359/199596 74 (+20) 2 2 X 3 Yair Katz st. Haifa w/s w/d Carmel park Carmel park offices, SO NO NO O 738240/203748 507 2 2 X 3 Haifa PM 2.5 w/s w/d Einstein 135 Einstein st, Hafia 742591/200358 363 SO2 NO2 NOX O3 Hadera area Katzir Katzir community 390 SO NO NO O 710341/209295 2 2 X 3 locality PM10 w/s w/d Orot Rabin Orot Rabit power 13 (+13) 708318/190593 PM10 w/s w/d station site Caesarea Caesarea gas turbine 19 (+7) 711674/194127 PM10 w/s w/d site, opposite Or Akiva Tel Aviv area Yad Labanim Yad Labanim center, 15 Ma'ale Habanim st. 665082/183366 77 (+14) PM10 PM2.5 Ramat Gan Mechabey Esh Fire station, 13 Arieh Ben Elhazar st. Ramat 664059/184469 50 (+10) SO2 NO2 NOX O3 Gan Bitzaron Technical center, 7 663968/180958 17 (+16) w/s w/d kremenetski st. Tel Aviv Petach Tikva road Old central station, 13 SO NO NO O Petach Tikva road, Tel 663292/179119 28 (+20) 2 2 X 3 PM10 PM2.5 w/s w/d Aviv Antokolsky Community College, 4 SO NO NO O 665876/179731 34 (+20) 2 2 X 3 Antokolsky st. Tel Aviv PM2.5

Hamashtela Meteorological tower, NO2 NOX O3. National supervision, 670930/184444 65 (+10) SO2 Temp in 2 Ramat Hasharon heights + w/s w/d Shikun Lamed Aran school, 25 Burla 668562/180493 17 (+15) PM10 st. Tel Aviv Ashdod area SO O PM10 NO Nir Galim Nir Galim 637059/169869 20 2 3 2 NOX w/s w/d Rova Vav Clalit Health Service 633581/167406 25 (+10) w/s w/d clinic, Rova vav, Ashdod Gan Darom Gan Darom 634906/171874 45 SO2 NO2 NOX O3 Yavne (city) Clalit Health Service clinic, Hadekel st. 642748/175481 38 (+15) SO2 PM10 w/s w/d Yavne 17

Station name Station address Coordinates Altitude Measured above sea parameters level (m)

Ashkelon area Bat Hadar Ashkelon Coast SO NO NO O 617402/161860 59 (+4) 2 2 X 3 Regional council PM10

Kefar Menachem Tzafit high school, Kfar SO NO NO O 626333/184291 119 (+11) 2 2 X 3 Menachem w/s w/d SO NO NO O Luzit Dadon family, Luzit 621437/188931 189 2 2 X 3 w/s w/d Alon Tavor area Dovrat Kibbutz Dovrat next to 175 727792/23334 SO2 NO2 NOX the gas station SO NO NO O Giv'at Hamore Dehi, Giv'at Hamore 725030/233572 495 2 2 X 3 w/s w/d Ein Dor Kibbutz Ein Dor 728860/239079 126 SO2 NO2 NOX O3 Gezer area Beit Hashmonay Hertzog high school, 103 SO NO NO O 644094/192082 2 2 X 3 Beit Hashmonay w/s w/d PM10 Carmei Yosef Commercial center, 260 SO NO NO O 639384/192550 2 2 X 3 Carmei Yosef w/s w/d Modi'in Mekorot 2035 facility, 267 SO NO NO O 644504/199745 2 2 X 3 Modi'in PM10 w/s w/d Ahisemech Public shelter, 80 SO NO NO O 649145/191501 2 2 X 3 Ahisemech secretariat w/s w/d Ramat Hovav Atar Hashemen Giv'at Shemen, Ramat 386 SO NO NO O 561619/183662 2 2 X 3 Hovav w/s w/d SO NO NO Mahane Natan Natan Military base 569863/181430 280 2 2 X O3 w/s w/d Eilat Eilat office IEC regional office, Eilat 386589/194731 68 (+10) w/s w/d Eilat Goldwater Goldwater regional 49 (+15) SO NO NO 385205/194716 2 2 X school, Eilat O3 w/s w/d

Footnotes: SO2 - sulfur dioxide NOx - nitrogen oxides NO2 - nitrogen dioxide O3 - ozone PM10 and PM2.5 - fine particulate matter w/s - wind speed w/d - wind direction

IEC monitoring system of pollutants emitted through stacks

In accordance with the emission permit instructions, the IEC operates devices for continuous emission monitoring of pollutants emitted from the stacks of the generation units. The collected data are transmitted online and in real time to the Ministry of Environmental Protection. In addition, various operational data are transmitted.

The company also operates a manual sampling system in accordance with an internal "stack sampling manual" and a work plan approved by the Ministry of Environmental Protection. Manual sampling is also used to calibrate the continuous emission monitoring of air pollutants devices installed in the stacks.

This sampling work is carried out by the pollutant sampling laboratory of the IEC Environmental Department, which, as mentioned above, has undergone certification to the ISO 17025 standard.

Reduction of greenhouse gas emissions and climate change mitigation

Greenhouse gas emissions

Starting in 2010, IEC take an active part in the "voluntary mechanism reporting project" whose aim is recording and reporting greenhouse gas emissions. This voluntary reporting framework, which was established by the Ministry of Environmental Protection, allows companies involved to it to participate to the preparation of the project's regulatory document, as well as to get experience in gathering the necessary information and processing it for this reporting framework.

Details of the various calculation methodologies set out in the project can be found on the Ministry of Environmental Protection website: http://www.sviva.gov.il/subjectsEnv/ClimateChange/GHG/Documents/ghgdocs/IsraelGHGR egistry3.pdf

Since the year 2000, the IEC has reported continuously on the greenhouse gas emissions resulting from fuel burning during electricity generation, as part of its environmental reports. The emissions reported account for about 99.7% of direct greenhouse gas emissions resulting from the IEC's operations.

An updated report for 2018 in the framework of the voluntary mechanism can be found on the IEC's website. https://www.iec.co.il/environment/2017/טופס%20דיווח%20למנגנון%20הוולונטרי-%20 %20פליטת%20גזי%20חממה%20-חברת%20החשמל%20-שנתpdf.%202017

Carbon Dioxide Calculator (CO2)

Carbon dioxide (CO2) is considered to be the main greenhouse gas emitted into the atmosphere. In 2012, the company developed a carbon dioxide calculator, which allows electricity consumers to calculate the amount of carbon dioxide (CO2) emitted into the atmosphere as a result of electricity consumption for a given year, and to compare between different years. The calculator is based on fuel combustion emission coefficients.

The calculator is published on IEC website: http://www.iec.co.il/environment/Pages/PollCalculator.aspx

The following are IEC reports to the voluntary mechanism of the Ministry of Environmental Protection, updated to the year 2018: https://www.iec.co.il/environment/2017/טופס%20דיווח%20למנגנון%20הוולונטרי%2 %20-0פליטת%20גזי%20חממה%20-חברת%20החשמל%20-שנתpdf.%202018

Table 6: The distribution of direct greenhouse gas emissions (Scope 1) by sources, in 2018

According to the IEC report in the framework of the voluntary mechanism for 2018, it can be seen that the major portion of direct emissions of greenhouse result from fuel combustion to generate electricity

Source Amount Percentage of [metric tons direct CO2eq] emissions Total direct emissions (Scope 1) as a result of fuel 29,109,700 99.60% combustion for electricity generation Total direct emissions (Scope 1) except these as a result of fuel combustion for electricity generation - Mainly automobile fleet exhaust emissions, SF6 118,242 0.40% emissions, and CO2 emissions from the chemical process in the FGD scrubbers

Table 7: IEC's greenhouse gases emissions reported in the framework of the voluntary mechanism reporting project to the Ministry of Environmental Protection for the years 2010 – 2018

Year CO2eq emissions – CO2eq emissions – CO2eq emissions – Scope 1 Scope 2 SCOPE 1+ 2 [metric tons CO2eq] [metric tons CO2eq] [metric tons CO2eq] 2010 41,036,387 39,467,669 1,568,718

2011 42,220,506 40,661,709 1,558,797

2012 48,205,212 46,366,484 1,838,728

40,310,381 2013 38,762,789 1,547,592

36,124,476 2014 34,312,517 1,811,959

35,473,673 2015 33,997,496 1,476,177

32,581,761 2016 31,152,001 1,429,760

31,575,657 2017 30,188,779 1,386,878

30,577,640 2018 29,227,942 1,349,698

Transportation and IEC vehicles

The company works continuously to improve transport by IEC vehicles fleet and employee transportation. These actions are aimed, among other things, at reducing emissions of greenhouse gases and air pollutants, reducing road congestion, educating employees towards improved efficiency of the use of resources, from economic and environmental viewpoints, as well as at creating a working environment sensitive to these aspects.

Within this framework, various actions are carried out, including:

• Providing shared means of transportation to arrive to the work place (without using private vehicles), as well as encouraging public transport (with an emphasis on Israel Railways), for workers travels between the IEC work sites, thus to reduce the individual use of the company cars.

• Increasing use of video conferencing systems in order to reduce travels between the IEC work sites.

• Campaigning on correct tire pressure, which saves fuel consumption.

• Economical and ecological driving training.

• Publishing comparative information to company vehicle users regarding fuel consumption and driving ways, with the aim of raising their awareness on smart use of vehicles.

Water use and conservation

The IEC conducts intense activity for careful consumption of water in all its sites. Throughout 2017 and 2018, the careful use of water in the company's power stations and administrative sites continued. Water conservation is achieved, among other things, by improving the control of water use processes and by increasing the reuse of waste water effluents.

The IEC makes extensive use of low-quality water resources, from both internal and external origins, as detailed in the following tables. Regarding the consumption of drinking water, according to the law of the State of Israel, water sources' allowances (including the partition of water sources) are determined by the Water Authority. The fresh water supplied to the power stations through the national water supply system includes is constituted from aquifer water (wells), Sea of Galilee water (the national water carrier), desalinated seawater, desalinated brackish water and surface water from various sources.

The use of industrial waste water effluents and boron-enriched water in FGD facilities

As reported above, scrubbers to reduce sulfur dioxide emissions (FGD) have been installed at Orot Rabin and Rutenberg power stations, in order to reduce sulfur dioxide emissions.

The heart of the system is an absorber column in which sulfur dioxide is absorbed and separated from the flue gases. As mentioned above, the principle of the FGD operation is the reaction of the sulfur dioxide with a limestone suspension in the absorber column, when the reaction product is gypsum. Thus gypsum is the by-product of this treatment system, and the gypsum provided is suitable for the production of gypsum walls or for the cement industry. Part of the water remaining after removing the formed gypsum, is emitted through the stack, forming a white plume mainly constituted of water vapor, whereas the other part is conveyed to a dedicated waste water treatment plant, whose effluents are discharged to the sea, according to permits given by the Ministry of Environmental Protection.

Due to the nature of this wet desulphurization process, the FGD installation consumes huge amounts of water. As part of the national effort to save water resources, the IEC has checked the possibility to use for the process poor quality waters, instead of drinking water. As part of the effort to reduce the amounts of waste water effluent discharged to the sea, and to reduce the consumption of drinking water by the power station sites, the purified industrial waste water effluents are used in the FGD installations. In addition, boron- enriched water produced by desalination stations adjacent to the coal-fired power stations is used for the same purpose. It is originating from the final stages of the desalination process and considered as high quality water, which would be otherwise discharged to the sea since the high boron content can damage agricultural crops. But there is no fear to use this kind of water for an industrial use such as the FGD process at a power station.

In 2018, the consumption of poor quality water for use in the FGD installations, from internal source (i.e. purified industrial effluents from the power stations), and from external sources (boron water from the desalination station), amounted over 1 million m3.

Use of treated sanitary wastewater effluents in the cooling towers of combined cycle power stations "Alon Tavor" and "Gezer"

At Alon Tavor and Gezer power stations, there are combined cycle units that are cooled by a wet cooling system (using cooling towers). This is a water-based cooling method, unlike the common air-based dry cooling method. The water source used for the cooling towers is wastewater effluents from regional sanitary wastewater treatment facilities. The use of effluents for this purpose saved the consumption of above 5 million m3 of fresh water.

Use of treated sanitary wastewater effluents and water demineralization concentrate for irrigation

In part of the power stations, sanitary wastewater is treated through an onsite treatment facility. The wastewater effluents can be used for the irrigation of gardening areas of these sites as a substitute to drinking water, in accordance with permits given by the Ministry of Health. In addition, in some power stations, "concentrates" rejected by reverse osmosis facilities used for the production of demineralized water can also be used for the irrigation of gardening areas. The use of sanitary effluents and concentrates for irrigation has allowed savings of hundreds of thousands m3 of fresh water.

Table 8: Summary of Fresh water amounts consumed by the IEC in the years 2013 – 2018*

Year Drinking water consumption at IEC sites [m3]

2013 5,096,584

2014 4,285,882

2015 4,866,935

2016 4,565,698

2017 4,797,440

2018 4,851,136

* Does not include water consumption in substations, switching stations and logistical and administrative sites.

Table 9: Summary of poor quality water use by the IEC in the years 2013 – 2018

Year Total poor Boron- Total treated Treated sanitary Treated sanitary quality water enriched industrial waste wastewater effluents from amount used water water effluents effluents reused external origin [m3] amount and concentrate for gardening used in cooling used [m3] water reused areas irrigation towers [m3] [m3] [m3] 2013 5,096,641 0 652,162 94,643 4,349,836

2014 4,850,895 0 536,563 101,850 4,212,482

2015 4,608,788 0 643,934 97,039 3,867,815

2016 4,820,337 0 649,884 102,502 4,067,951

2017 5,510,430 410,946 554,362 101,774 4,443,348

2018 6,599,836 637,867 686,161 103,140 5,172,668

Table 10: Summary of the use of water from all sources by the IEC in the years 2013 – 2018*

Year Total water use - from all sources [m3]

2013 10,193,225

2014 9,136,777

2015 9,475,723

2016 9,386,035

2017 10,307,870

2018 11,450,972

* Does not include seawater use for main cooling of costal power stations

Table 11: Poor quality water use as percentage of total water consumption by the IEC for the years 2013 – 2018

Year Use of poor quality water as percentage of the total water consumption [%]

2013 50

2014 53

2015 49

2016 51

2017 53

2018 58

Table 12: Summary of seawater use for main cooling of IEC costal power stations for the years 2013 – 2018

Year Seawater use for main cooling of IEC costal power stations [m3]

2013 6,471,656,527

2014 5,867,958,700

2015 5,588,037,522

2016 5,464,694,022

2017 5,499,841,484

2018 5,896,219,446

Table 13: Summary of treated industrial waste water effluents discharges to the sea from IEC sites, according to Authorities' permits, for the years 2013 – 2018

Year Amount of treated industrial effluents discharged to the sea [m3]

2013 485,595

2014 411,035

2015 400,092

2016 370,722

2017 389,054

2018 357,940

Table 14: Summary of the amount of effluents used or discharged to the environment during the period 2013-2018: Part A – Effluents of sanitary waste water treatment [m3]

2013 2014 2015 2016 2017 2018 Treated sanitary effluents from 4,349,836 4,212,482 3,867,815 4,067,951 4,443,348 5,172,668 external origin used in cooling towers Sanitary wastewater 395,640 382,620 371,130 357,240 357,060 344,280 total production Treated sanitary effluents from internal origin 94,643 101,850 97,039 102,502 101,774 103,140 reused for gardening areas irrigation

Total sanitary wastewater transferred 300,997 280,770 274,091 254,738 255,286 241,140 to offsite wastewater treatment plants

Table 15: Summary of the amount of effluents used or discharged to the environment during the period 2013-2018: Part B - Treated industrial waste water effluents, boron- enriched water and concentrate water from demineralization production facilities [m3]

2013 2014 2015 2016 2017 2018 Treated industrial wastewater and 1,137,757 947,598 1,044,026 1,020,606 943,416 1,044,101 concentrate water total production Treated industrial wastewater and concentrate 652,162 536,563 643,934 649,884 554,362 686,161 water – total amount reused Treated industrial wastewater 485,595 411,035 400,092 370,722 389,054 357,940 discharged to the sea Boron- enriched water from external 0 0 0 0 410,946 637,867 origin used in FGD facilities

Coal combustion by-products

Electricity generation in IEC coal-fired power stations leads to the production of two by- products: coal ash and FGD gypsum. Coal ash is formed from the mineral fraction in the coal that remains after burning it.

FGD gypsum is produced in the flue gas desulphurization facilities (FGD stations), as a result of the reaction of the sulfur dioxide found in the flue gas with limestone.

Production and uses of coal ash from Orot Rabin and Rutenberg power stations

Coal ash is a by-product of coal burning at Orot Rabin and Rutenberg power stations. About 88% of the ash produced is fly ash, composed of very fine particles and separated from the flue gases in filters called Electrostatic Precipitators, and the remaining 12% is bottom ash, composed of coarse particles which sink at the bottom of the boiler.

Since 1999, all the ash produced by the electric company has been supplied for industrial, infrastructure and agricultural uses. The main ways of using coal ash are cement and concrete production, which are also the most common and preferred uses in the developed countries in the world.

The use of coal ash is made on the basis of permits issued by the authorities, including the Ministry of Environmental Protection. The IEC monitors the environmental quality of coal ash, once every six months, since the beginning of the 1990's. The results meet the criteria for "coal ash fitted to use" according to the guidelines issued by the Ministry of Environmental Protection.

Fly ash is added to construction products in order to take advantage of the ash bonding properties (fly ash is a "pozzolanic material") and indeed fly ash addition leads to the improvement of concrete properties: increased strength, improved workability and better corrosion resistance. Environmentally, the use of ash as a raw material for the production of cement and concrete avoids the damages to the environment and to the landscape, which would result from the quarrying of raw materials that are replaced by the ash (in particular, sand for construction is becoming increasingly scarce in Israel).

According to studies carried out by various research institutions - the Israel Geological Survey, the Technion and the Agricultural Research Organization Volcani Center – in order to assess the environmental impacts of coal ash, there is no risk of contamination of the water sources as a result of the open uses of coal ash in the country. These results were confirmed by the groundwater monitoring conducted close to ash storage sites inside power station areas and near the first road embankment built with coal ash below Jasser-a-Zarqa access road.

Coal ash, like other geological materials, contains low concentrations of radioactive elements, similarly to coal ash produced in European countries. Coal ash is considered as a naturally occurring radioactive material (NORM). According to the International Standard of the International Atomic Energy Agency published in 2014 (International Basic Safety Standards, GSR Part 3), coal ash with radioactive elements' concentrations within the range known in Israel, should be "cleared" from the need of administrative control.

In Israel, as mentioned above, the use of ash is supervised by the Ministry of Environmental Protection through permits issued by it, as well as by the application of Israeli Standard 5098, which limits the content of radioactive elements in all construction products marketed in the State of Israel.

Production and use of flue gas desulphurization gypsum (FGD gypsum) at Orot Rabin and Rutenberg power stations

Flue gases generated in generation units 3 and 4 at Rutenberg site and generation units 5 and 6 at Orot Rabin site pass through Flue Gas Desulphurization (FGD) emission reduction facilities. The flue gases generated in the boiler from coal burning pass through the FGD system and are treated by a limestone suspension. In this facility the sulfur dioxide (SO2) reacts with calcium carbonate (CaCO3), and gypsum (CaSO4, 2 H2O) is the final product of the treatment process.

The gypsum obtained from this process is characterized by a quality similar to that of a natural gypsum, so it is suitable for use as a replacement for gypsum obtained from quarrying, which saves the mining of a natural resource, as well as the environmental damages associated with quarrying.

In Israel, the FGD gypsum produced by IEC is mainly supplied for use in the cement industry, as a setting time retarder.

Hazardous materials and hazardous waste

The IEC owns, uses and stores hazardous materials in some of its sites. The IEC is also continuously active to reduce the potential risk resulting from the use of hazardous materials and production of hazardous waste that accompany the electricity generation chain.

The IEC activity for that purpose includes the reduction of hazardous materials amounts used in the production processes (source reduction), the replacement of hazardous materials by lower risk materials, the search of environmentally friendly substitutes, training of workers, the search of alternative solutions to the disposal of hazardous waste to appropriate landfills, expanding the types of hazardous waste that receive dedicated treatment, etc.

As part of its statutory obligation, the IEC sends hazardous waste only to authorized sites.

Green purchasing

Green purchasing is another kind of activity with environmental benefit. It is reducing the environmental impact of the organization. The preference given to green products is expected to reduce the environmental footprint of the company, as well as reduce the risk of health impacts. In addition, examining the purchase of goods from its environmental aspects also enables a better knowledge of products and materials bought by the organization and the integration of sustainability in the purchasing processes. In recent years, IEC has been active to extend green purchasing to a variety of operations, such as: • Transition to computerized tenders • Using recycled paper as the main source of paper for the needs of the company • Selecting environmentally acceptable oils and greases as substitutes for those previously used • Use of green detergents • Use of water-based silicone • Use of environmentally friendly paints • Purchase of energy-saving air conditioners and lamps • Use of green materials to absorb oils • Promote multi-use packages in the warehouses A general inquiry has been made on IEC's website to get green purchasing proposals for various environmentally friendly products and services, with the objective of their integration in the green purchasing processes.

Solid Waste

The IEC treats waste generated as a result of its operations in the framework of the Total Waste Management approach. In this approach, a variety of activities are conducted at the different stages of the waste generation and treatment chain (prevention, reduction, collection and treatment) to reduce as far as possible waste environmental effects. Among other things, activities are conducted to reduce materials consumption and prevent waste generation (source reduction), and to reduce the amounts of waste disposed into landfills. For this objective, it is attempted to separate as far as possible between the different types of waste and increase the amounts transferred for reuse and recycling. All this activity depends on the development of the recycling markets in the State of Israel.

In addition, office waste reduction activities are carried out, which include:

Switching to the use of "printing centers". The innovative printing centers combines three different functions into one device (MFP - Multi Function Printer): printer, photocopier and scanner. These centers allow to save money and office space, as well as to protect the environment by saving resources, as paper, electricity, and other consumables. The default printing mode is two-sided printing. Purchasing only A4 recycled paper for all the company's offices. The use of recycled paper is an integrated part of green purchasing, contributes to unrecycled paper saving, as well as raises awareness of the company's employees for the importance of resource conservation. Reuse of wooden drums for the benefit of the community.

Table 16: Total hazardous and non-hazardous waste transfers from the IEC power station sites during 2018 [kg]*

Site name Hazardous waste Non-hazardous Hazardous and non- waste hazardous waste

Orot Rabin 349,007 539,897,374 540,246,381

Rutenberg 243,482 305,345,648 305,589,130

Haifa 1,190,641 314,338 1,504,979

Reading 21,872 299,221 321,093

Eshkol 4,889,847 1,070,494 5,960,341

Alon Tavor 7,220 70,321,480 70,328,700

Dovrat 0 3,096,420 3,096,420

Hagit 42,586,720 2,486,000 45,072,720

Gezer 201,034 4,922,982 5,124,016

Tzafit 8,712,780 4,423,834 13,136,614

Ramat Hovav 10,657,021 5,169,095 15,826,116

Eilat 44,330 81,900 126,230

Atarot 35,930 0 35,930

Kinarot 23,229 0 23,229

Caesarea 61,641 0 61,641

Hartuv 3,990 0 3,990

Eitan 8,920 0 8,920

Total 69,037,664 937,428,786 1,006,466,450

* Data reported as part of the Pollutant Release and Transfer Register (PRTR) report

Table 17: Total hazardous and non-hazardous waste transfers from the IEC power station sites during 2017 [kg]*

Site name Hazardous waste Non-hazardous Hazardous and non- waste hazardous waste

Orot Rabin 1,582,465 541,224,130 542,806,595

Rutenberg 184,740 354,310,350 354,495,090

Haifa 199,830 207,920 407,750

Reading 90,310 154,850 245,160

Eshkol 335,990 1,256,000 1,591,990

Alon Tavor 304,165 74,990,650 75,294,815

Dovrat 0 3,136,910 3,136,910

Hagit 28,370,719 2,528,340 30,899,059

Gezer 412,100 8,737,600 9,149,700

Tzafit 10,712,309 2,297,160 13,009,469

Ramat Hovav 12,722,687 422,550 13,145,237

Eilat 45,205 87,300 132,505

Atarot 0 10,400 10,400

Kinarot 17,940 0 17,940

Caesarea 95,220 3,530 98,750

Hartuv 7,950 0 7,950

Eitan 7,930 0 7,930

Total 55,089,560 989,367,690 1,044,457,250

* Data reported as part of the Pollutant Release and Transfer Register (PRTR) report

Table 18: Total hazardous and non-hazardous waste transfers from the IEC power station sites during 2016 [kg]*

Site name Hazardous waste Non-hazardous Hazardous and non- waste hazardous waste

Orot Rabin 145,298 471,347,380 471,492,678

Rutenberg 30,780 448,158,560 448,189,340

Haifa 224,280 223,780 448,060

Reading 103,230 215,890 319,120

Eshkol 2,627,610 1,347,860 3,975,470

Alon Tavor 275,930 52,937,180 53,213,110

Dovrat 0 3,179,620 3,179,620

Hagit 31,915,310 1,818,160 33,733,470

Gezer 402,260 8,151,290 8,553,550

Tzafit 11,966,690 12,120,500 24,087,190

Ramat Hovav 6,598,070 6,752,040 13,350,110

Eilat 0 0 0

Atarot 32,870 0 32,870

Kinarot 31,880 0 31,880

Caesarea 54,150 244,400 298,550

Hartuv 5,260 0 5,260

Eitan 33,150 7,800 40,950

Total 54,446,768 1,006,504,460 1,060,951,228

* Data reported as part of the Pollutant Release and Transfer Register (PRTR) report

Noise reduction

The power generation process and its supply can be a source of noise to the environment. Noise is mainly generated from equipment used to generate electricity at power stations, and to a lesser extent from transformers at substations or from insulators on transmission lines. This equipment is, for the most part, installed far away from inhabited places.

Other parts of the power transmission, transformation and distribution systems, which are adjacent to inhabited places (like power lines, distribution transformers and switches), are usually not a real source of noise.

The IEC is active to meet everywhere the permitted noise levels as specified in the governmental Prevention of Noise Nuisance Regulations, and also to fulfill requirements mentioned in the documents submitted during the licensing procedures for the building and operation of IEC facilities. Noise control is carried out throughout the life cycle of the equipment: from the design and purchase stages, through the initial operating phase, and during the routine operation, with the aim of allowing continuously operation without creating noise nuisances.

During the design phase of new electrical installations, the expected noise levels are predicted for inhabited places near the installation site. If necessary, these findings provide the basis for determining the noise mitigation measures that will be taken. The noise level prediction findings are submitted to the environmental Authorities as part of environmental impact assessments or other environmental licensing documents. On their basis, they issue environmental monitoring requirements and additional measures, if necessary.

Acoustic requirements are implemented at the purchase stage. These requirements will ensure compliance with the permitted noise levels near the facilities. In the initial operation of new facilities, noise measurements will be conducted around the site and near close inhabited areas in order to ensure compliance with the permit conditions, and to ensure that the regulatory thresholds are not exceeded. Afterwards during the routine operation stage, no augmentation above the noise levels measured during the initial operation phase is expected.

Inquiries about noise nuisances are handled through surveillance field visits, noise measurements and, if necessary, acoustic treatment to reduce noise from the facility.

Environmental aspects of electric and magnetic fields

Electric and magnetic fields – what is it?

Electrical energy passing through electrical installations creates electric and magnetic fields (EMF's) around them. The electric and magnetic field levels are determined mainly by the voltage and current level (respectively) for the installation as well as the distance from it.

These fields vary in their direction with a frequency of 50 cycles per second [50 Hz], a frequency that is considered to be extremely low [ELF – extremely low frequency]. The energy associated with this frequency is very low and in fact negligible.

Electric and magnetic field effects

Electric and magnetic fields may have short-term effects, which appear only at very high field levels, which do not exist in homes or accessible places near electricity installations.

Over the past forty years, many institutions in the world have examined deeply and widely the connection between long-lasting exposition to magnetic fields resulting from external electrical devices or home appliances and the prevalence of illnesses, particularly pediatric leukemia.

Details of their findings can be found in the following publications:

 World Health Organization [WHO] report updated in August 2016

"Extremely Low Frequency Fields Environmental Health Criteria Monograph No.238" www.who.int/peh-emf/publications/elf_ehc/en/

 International Committee for Non-Ionizing Radiation Protection [ICNIRP] report, from November 2010

"Guidelines for limiting exposure to time-varying electric and magnetic fields (1Hz - 100 kHz)" http://www.icnirp.de/documents/LFgdl.pdf

These organizations concluded that it is not possible to establish a causal link between low- level magnetic field and biological changes or increase in morbidity. In addition, the findings suggested that the possibility of link between magnetic fields and pediatric leukemia were too weak to establish a causal relationship. In general, the public health implications, if any, are limited and uncertain.

Extensive laboratory tests on animals and tissues were also described as "unsatisfactory" and "unsuitable" to prove any carcinogenic effects.

The International Agency for Research on Cancer [IARC], which is controlled by the World Health Organization, classifies magnetic fields in the Class 3 "not classifiable as to its carcinogenicity to humans". This level also includes emissions from gasoline engines or hot drinks. More information can be found in the following IARC Summary Report: http://monographs.iarc.fr/ENG/Monographs/vol80/index.php 41

Legislation and policy in Israel

The Non-Ionizing Radiation Act (2006) requires that the builder or operator of any electricity installation to obtain establishment and operation permits from the "radiation supervisor" at the Ministry of Environmental Protection.

In addition, this law stipulates that regulations will be established on maximum permissible levels for the exposure of humans to non-ionizing radiation sources, with the approval of the Ministries of Energy and Finance, and until they are adopted, the conditions in the permits will be based on recommendations of the "Electricity Magnetic Fields Expert Committee" appointed by the Ministry of Environmental Protection. The committee report can be found at: http://www.sviva.gov.il/subjectsEnv/Radiation/Electrical_Facilities/Documents/vadat_mum chim_1.pdf

Key recommendations of the committee are following the World Health Organization policy:

A. Adopting the ICNIRP threshold value of 1,000 milligauss (according to ICNIRP guidelines at the date of the committee report publication) as a single threshold value.

B. Adoption of the precautionary principle, i.e. reducing the magnetic fields to which the public is exposed, with reasonable costs and current technical measures.

The committee also detailed the measures appropriate to implement recommendations under the precautionary principle in various electrical installations, mainly the removal of magnetic field sources from inhabited places and the implementation of design measures that reduce the level of magnetic field around the facility.

IEC Activities

The IEC operates in accordance with the Non-Ionizing Radiation Act and holds building and operating permits for new and existing facilities, and is also active in implementing the precautionary principle in accordance with the report of the expert committee. The company publishes information and responds to the inquiries from the public, the Ministry of Environmental Protection and other various institutions.

Influences on the biodiversity

IEC installations, which are infrastructure facilities sometimes located in open and unaffected land areas (natural land areas) or close to those land areas, may have an influence on the biodiversity. This influence is due to the occupation of this area itself and also environmental influences derived from the regular operation of the facilities.

As part of environmental impact statements (EIS) and other environmental documents prepared for IEC projects, the impact of IEC facilities on the natural life and landscape has been examined for many years. More recently, in parallel with the global developments connected to preservation of biodiversity, the scope of subjects that are reviewed in this context was extended. Deepening and extending the ecologic review allows to improve the management of effects of existing and planned IEC facilities on the biodiversity.

When examining alternative locations of new facilities and electricity lines, the need to reduce the passage through rich biodiversity areas is considered, in attempt to minimize their impact on these land areas. Biodiversity – land aspects

When performing ecologic surveys as part of IES preparation and stipulating instructions in the land development plan, in the framework of licensing new IEC projects which are planned in ecologic sensitive areas, the impact on the biodiversity is considered. Reviewing the impact on biodiversity includes preparation of surveys to characterize the ecological value in terms of the relevant habitats and ecosystems, to identify species of plants and animals, and characterizing the risk level for them. Based on these findings, and in function of the project's type and location, the appropriate measures that are recommended to minimize and prevent the project's impact at construction and operation stages, are summarized and included in the land development plan submitted to the relevant authority. For example, regarding sub-stations instructions are if relevant given to protect habitats and high ecological value species, to restore landscape using native species, for treatment or eradication of invasive species, to reduce light pollution etc. Regarding power lines, instructions are given to shield electricity poles in order to prevent bird collisions in sensitive areas, for treatment or eradication of invasive species etc.

There is a well-established cooperation with nature protection organizations on the subject of birds' injury potential. In addition to the "Spread Wings" project (see below), since 2013 there is cooperation between the IEC, the Israeli Society for the Protection of Nature, National Parks Authority and the Ministry of Environmental Protection, on "calls for research proposals" aimed to include biodiversity considerations in company management. Two projects were carried out by the IEC during 2018:

1. In October 2018, was finished a pilot project, started in 2016 and first of its kind in Israel, on reducing the potential risk of bird collisions in electricity poles and wires. It was implemented on an existing power line which passing through a high sensitivity areas and continued during two years with the following objectives: quantifying the extent of bird collisions in electrical poles; checking the effect of land use on the number of collisions; checking the efficiency of anti-collision elements on the electricity wires; improvement of the monitoring. The pilot project included comparative monitoring of the collisions occurrences before and after the 43

installation of the anti-collision elements. The findings of the pilot showed that, among others, there was a high rate of bird collisions with the tested electricity line, as comparison with findings reported in the world professional literature. 2. Following the findings of the above pilot, another research project was started on January 2018. Its goals are mapping the potential risk of bird collisions in electricity poles and wires on the national level, and present recommendations and priorities in the treatment of this subject. The mapping is based on a GIS model which integrates the environmental data (like sensitive areas and land uses), with bird population characteristics (sensitive species) and electricity lines data. The model is supposed to serve as a tool for IEC for adopting and implementing an improved policy on this subject for existing and new electricity lines.

In addition, the IEC is active in increasing the awareness of its workers to this subject. Since 2014, such activities take place in the framework of internal training courses of the company workers and managers. More dedicated training courses are given to the relevant workers.

The "Spread Wings – adopting vultures and raptors" project

From the beginning of the eighty's the IEC documents data regarding electrocution of vultures and other large birds that used the electricity poles as viewpoint, for night sleep or temporary standing place (for example to dry their wings after bathing in water). The greatest risk exists for birds with a wingspan of over 2 m and body length larger than 1 m. This is because their wings touch one electrical wire and one pole, or two electrical wires simultaneously, occurrences which cause the closure of an electrical circle and their electrocution.

The goals of the project were:

 Recovery and rehabilitation of the vultures and raptors population and return extinct species back to nature.  Significant reducing of electrocution events of vultures and raptors.  Creating alternative food sources for the vultures and raptors in order to reduce the risk of poisoning.  Creating reproductive nucleus with aim to return species to wildlife and rehabilitate their population.  Identifying other factors that may endanger the vultures and reducing their hazard.  Monitoring the status of populations of endangered species.  Performing information and educational activities to increase the public awareness to the subject.

Reducing electrocution of large birds

In order to decrease the electrocution of large birds, the IEC had developed a variety of shielding elements types that are appropriate for high and ultra-high voltage electrical poles, each according to its characteristics. This shielding method was developed by IEC engineers in cooperation with the "Raychem Company" and the professional team of the "Spread Wings" and to our best knowledge constitutes a sole development of its kind in the world. The shields contain special landing plates installed on the top of the poles and allow safe 44

landing for the birds without any contact with the electrical wires, as well as isolation sleeves produced from a material used for the electrical wires, special spikes to prevent landing on dangerous places and more. The landing plates and the protecting sleeves were developed and installed after a simulation using captive vultures. The IEC has already invested millions of NIS on the project since the beginning of the project. Biodiversity - Marine aspects

The power stations located on the coast line are using sea water for cooling the steam that drives the turbines in the electricity production process. As a result of pumping sea water to the cooling systems, heating it and discharging it back to the sea, there are influences on biodiversity in the pipes and condensers of the cooling system, as well near the outlets of the hot sea water discharged from the power stations back to the sea. The IEC performs detailed monitoring and follow-up on biodiversity in the cooling water outlets area.

Biodiversity in power station cooling systems

The cooling systems are pumping large amounts of sea water. The cooling water contains also tiny organism which pass through the filters. Among these organisms are planktonic larvae (the young stage of marine animals), which find the cooling water system pipes and walls as a good settling place and other planktonic organism that constitute a food for the settled animals and accelerate their development. Animals that grow on artificial objects are called marine fouling. The water that is flowing in the cooling systems of the power stations speed up the growth of marine fouling which includes animals that are adapted to the water flow such as bivalves and barnacles. The marine fouling causes a lot of operational problems, mostly reducing the efficiency of electricity production and even blockages that can cause shutdown of production units.

In order to prevent settling and accumulation of fouling in the cooling systems there is a need to add to the sea water a settling-preventive product (anti-fouling product) at low concentrations (concentrations are dictated by the Ministry of Environmental Protection). The IEC is active in finding ways to reduce the use of these materials. Another method to keep the main cooling system clean is by using silicone-based anti-fouling paints which by their own composition prevent settling, without any change or impact whatsoever on the sea water. These paints are applied in most cooling units of the coastline power stations. As can be seen in Illustrations 1A and 1B, the condenser is almost completely clean after two years of work. It can also be seen according to Illustration 1C that the condenser stayed clean as a result of the anti-fouling paint, as a reference unpainted condenser is covered with fouling that blocks the piping.

Illustration 1 - A) Walls of main condenser painted with silicone anti-fouling after two years of operation *. B) Piping wall of main condenser painted with silicone anti-fouling, opened for cleaning after two years of operation. C) Piping wall of a condenser which was not painted, blocked by bivalves and barnacles

*Picture taken on 26/2/19 during renovation of unit No. 4 at Orot Rabin power station (representative of the efficiency of the anti-fouling paint in the years 2017-2018, since the last cleaning session that was performed on 6/4/17)

C B

Follow-up on plankton concentration in cooling sea water

This activity includes an estimation regarding the settlement season of the fouling organisms and the expected rate of their development. The following illustrations present the plankton concentration (No. of specimens / 50 l) at the inlet and outlet of the cooling water system at Rutenberg and Orot Rabin power station sites (Orot Rabin - units 5-6, cooling water flow of approximately 160,000 m3/hour). In 2017 and 2018 it can be seen that the high plankton abundance (above 50 specimens / 50 l sea water) begins at the end of the spring and reaches its highest values during the summer months and the beginning of autumn when sea water temperatures are at their highest (July – September). In the winter season, plankton abundance is low, reaching its lowest level at the end of the winter season (March). In 2018 this trend was less clear, especially for Orot Rabin power station where the plankton concentrations remained low during the whole summer and even increased, slightly, during the winter.

Similarly, it can be seen that during the summer months, the number of larvae exiting the cooling systems is higher than those entering, whereas in the winter months the trend is reversed. The period of warm sea water temperatures in the summer is optimal for these animals, leading to reproduction of specimens living in the cooling system and adding larvae to this population. Regarding the holoplankton population (organisms which stay planktonic throughout their lifecycle), it can be seen that the number of specimens entering the cooling system is sometimes much larger than the exiting specimens. Passing through the cooling water system may cause the reduction of plankton abundance as a result of mechanical impacts, exposure to heat and the usage of anti-fouling products. Nevertheless, if we consider the rapid regeneration ability of the plankton in the open sea, it can be concluded that on the whole the circulation of sea water in the cooling systems does not reduce the plankton mass in the sea.

Illustration 2: Seasonal cycles of plankton abundance in Rutenberg site in the years 2017/2018

* HP – Holoplankton (Organisms which stay planktonic throughout their lifecycle) 47

Illustration 3: Seasonal cycles of plankton abundance in Orot Rabin site in the years 2017/2018

These results are used by IEC for implementation of methods to reduce marine fouling phenomenon in order to keep high efficiency of electricity production together to use a minimal amount of anti-fouling materials.

Marine biodiversity in the coal pier area of Orot Rabin and Rutenberg power stations as affected by coal falling into the sea during unloading operations

Monitoring the invertebrate's population on the sea floor (Benthos):

As part of the marine environmental monitoring program performed according to the requirements of the Ministry of Environmental Protection, once every five years monitoring is performed on the sea floor benthic fauna (organisms living in the sediment) near the coal unloading piers of Rutenberg and Orot Rabin coal power stations (on two consecutive years for the two power stations). According to monitoring results, the weight percentage of coal in the sediment is very low at all the sampling points. The monitoring findings show that the benthic community in the area of Orot Rabin power station is not affected by the low percentage of coal falling on the sea floor and that the weight percentage of the coal is nearly insignificant as it does not exceed a few tenth of one percent at the nearest points to the unloading area, and a few hundredth or thousandth of one percent at the more distant points.

Illustration 4 – A) Sea urchin Enchinocardium cordatum. B) The skeleton of this sea urchin as seen often on the seashore. C) Bivalve Tellivana ferruginosa

A B C

Illustration 5: Sampling points for coal weight percentage measurement in sediment, and checking composition of sediment dwelling organisms population (Benthos) in the area of Orot Rabin coal pier in summer 2018*

*The map includes all the sampling points from previous monitoring (2004 – 2015). The points that are not marked with an "X" are the points sampled in 2018 according to the instructions of the Ministry of Environmental Protection 49

Table 19: Sediment dwelling organisms' distribution into main groups as affected by coal content in the sediment of the area of Orot Rabin coal pier, summer 2018 (average of 3 replicates)

Point Polychaeta Crustacea Mollusca Nematoda % coal Depth

1 25.3 57.0 8.7 67.0 0.014 23.0

1b 28.3 73.7 5.7 121.3 0.006 21.0

2 30.3 52.0 4.0 112.0 0.257 23.5

2a 27.7 132.7 12.3 40.0 0.017 28.0

2b 19.3 52.3 2.0 70.7 0.015 15.0

3 27.7 59.0 14.7 54.7 0.112 23.0

3a 40.3 140.0 5.3 41.3 0.015 29.5

3b 20.3 34.0 0.7 106.0 0.008 17.0

4 36.7 79.7 4.3 176.0 0.047 23.5

5 42.3 66.3 13.0 96.7 0.173 25.0

9 34.3 85.3 25.0 60.0 0.044 24.0

Illustration 6: Average abundance of sediment dwelling organisms, divided into main groups, depths of sampling points and weight percentage of the coal, in the area of Orot Rabin coal pier, summer 2018

200 1

180

160

140 0.1 120

100

80 % coal 0.01 60

20 number of specimens, depth (m) depth specimens, of number 0 0.001 1 b1 2 2a 2b 3 3a 3b 4 5 9

Nematoda Crustacea Polychaeta Mollusca depth coal

The populations living underneath the coal pier of Orot Rabin power station

Underneath the coal unloading pier of Orot Rabin power station, is found waste such as cables, beams and pipes. That waste was discarded decades ago at the time of the pier building. During this period a rich habitat of fish and invertebrates was created on this substrate. This habitat is similar in its composition and diversity to an ecologic population of a rocky shore habitat in a nature reserve.

Illustration 7: The waste area underneath the unloading pier conveyor at Orot Rabin power station

Left picture: bare snail (nudibranch) on the cables. On the background can be seen sponges (in orange) and Bryosoa, on which the bare snail climbs

Right picture: Three individuals of Atlantic Seriol, a big pelagic predator fish attracted by areas rich of fish

Left picture: Sea ray (Dasyatis pastinaca) hovering over garbage

Right picture: school of Russet squirrelfish (Sargocentron rubrum) finding shelter within a cable pile, in the background orange sponges covering the cables

In 2016, after a shared dive conducted by IEC representatives and the marine ecologist of the Ministry of Environment, it was decided that the major waste mass, such as cable piles, large beams etc. will stay at its place due to its contribution for creating settlement and hideaway niches for fish, and the small and additional waste which does not have any ecologic contribution, will be piled into 3-dimensional structures that will also provide hiding and settling places for organism communities. The IEC has implemented these instructions according to the requests of the Ministry of Environmental Protection.