Initial Environmental Examination Project Number: 52007-001 February 2021 People’s Republic of China: Air Quality Improvement in the Greater Beijing-Tianjin-Hebei Region: Henan Cleaner Fuel Switch Investment Program- Weishi County Cleaner Fuel Switch Subproject Prepared by the Yu-Tian New Energy Co. Ltd for the Asian Development Bank. CURRENCY EQUIVALENTS (as of 1 December 2020) Currency unit - yuan (CNY) CNY1.00 = US$ 0.1520 US$1.00 = CNY 6.5769 ABBREVIATIONS ADB Asian Development Bank AP Affected Person AQI Air Quality Index EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMA Environmental Monitoring Agency EMoP Environmental Monitoring Plan EMP Environmental Management Plan EPB Environmental Protection Bureau EPL Environmental Protection Law FSR Feasibility Study Report GDP Gross Domestic Product GHG Green House Gas GIP Good International Practice GIIP Good International Industrial Practice GRM Grievance Redress Mechanism IA Implementing Agency IEE Initial Environmental Examination I&G China National Investment and Guaranty Corporation IT Interim Target MAC Maximum Acceptable Concentration MEE Ministry of Ecology and Environment MEP Ministry of Environmental Protection PCR Physical Cultural Resources PIU Project implementation unit PPE Personnel Protective Equipment PRC People’s Republic of China SPS Safeguard Policy Statement, ADB WB World Bank WHO World Health Organization WWTP Wastewater treatment plant YTNEC Yu-Tian New Energy Co. Ltd ZYIHG Zhoungyuan Yuzi Investment Holding Group WEIGHTS AND MEASURES BOD5 Biochemical Oxygen Demand, five days CaCO3 Calcium Carbonate cm Centimeter CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen kg Kilogram km Kilometer kWh Kilowatt Hour Leq Equivalent Continuous Noise Level m Meter m/s Meters per Second m2 Square Meters m³ Cubic Meters mg/l Milligrams per Liter mg/m3 Milligrams per Cubic Meter µg/m3 Micrograms per Cubic Meter NOx Nitrogen Oxides oC Degrees Celsius O3 Ozone pH A measure of the acidity or alkalinity of a solution PM Particulate Matter PM10 Particulate Matter smaller than 10 micrometers PM2.5 Particulate Matter smaller than 2.5 micrometers SO2 Sulfur Dioxide t/h Tons per Hour TSP Total Suspended Particulates NOTES (i) In this report, "$" refers to US dollars and "€" refers to Euro. (ii) This document has been prepared following ADB’s Safeguard Policy Statement 2009. This 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. Your attention is directed to the “terms of use” section of the ADB 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 ............................................................................................................................ 1 A. Introduction .................................................................................................................................. 1 B. Environmental Baseline ............................................................................................................... 2 C. Anticipated Impacts and Mitigation Measures ............................................................................. 3 D. Public Consultation and Grievance Redress Mechanism ........................................................... 3 E. Environmental Management Plan ............................................................................................... 4 F. Risks and Assurances ................................................................................................................. 4 G. Conclusion ................................................................................................................................... 4 I. INTRODUCTION................................................................................................................................. 5 A. The Project ................................................................................................................................... 5 B. Report Purpose ............................................................................................................................ 6 C. Approach to Report Preparation .................................................................................................. 6 D. Report Structure ........................................................................................................................... 6 II. POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ................................................................ 8 A. Overview ...................................................................................................................................... 8 B. PRC Environmental Laws, Regulations, Guidelines, and Standards.......................................... 8 C. International Agreements ........................................................................................................... 11 D. Applicable ADB Polices and World Bank’s EHS Guidelines ..................................................... 11 E. Assessment Standards for Proposed Project Components ...................................................... 12 F. Applicable Requirements of Protection Zone ............................................................................ 16 G. Domestic EIA Preparation and Approval ................................................................................... 16 III. DESCRIPTION OF THE PROJECT ................................................................................................. 18 A. Rationale .................................................................................................................................... 18 B. Project Description ..................................................................................................................... 20 C. Associated and Existing Facilities ............................................................................................. 25 IV. DESCRIPTION OF THE ENVIRONMENT (BASELINE) .................................................................. 26 A. Location and Setting .................................................................................................................. 26 B. Henan Province Overview ......................................................................................................... 26 C. Topography and Geology ........................................................................................................... 27 D. Climate ....................................................................................................................................... 28 E. Ecological Values ....................................................................................................................... 30 F. Social and Economic Conditions ............................................................................................... 31 G. Environmental quality ................................................................................................................ 31 V. POTENTIAL ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES ................................ 35 A. Project Area of Influence and Sensitive Receptors ................................................................... 35 B. Pre-construction Phase ............................................................................................................. 40 C. Construction Phase ................................................................................................................... 41 D. Operation Phase ........................................................................................................................ 49 E. Anticipated Positive Operation Phase Impacts ......................................................................... 50 VI. ALTERNATIVE ANALYSIS ............................................................................................................... 52 A. No Project Alternative ................................................................................................................ 52 B. Alternative Methods of Pipeline Installation ............................................................................... 53 C. Pipeline Network ........................................................................................................................ 53 D. Overall Alternative Analysis ....................................................................................................... 54 VII. PUBLIC CONSULTATION AND INFORMATION DISCLOSURE .................................................... 55 A. PRC Requirements .................................................................................................................... 55 B. ADB Requirements .................................................................................................................... 55 A. Information Disclosure ............................................................................................................... 56 B. Public Consultation ...................................................................................................................