Initial Environmental Examination Project Number: 50096-002 February 2018 People’s Republic of China: Air Quality Improvement in the Greater Beijing–Tianjin–Hebei Region—China National Investment and Guaranty Corporation’s Green Financing Platform Project (Laoling 2x35t/h Micro-fine Coal Atomization Steam Supply Subproject) Prepared by China National Investment and Guaranty Corporation for the Asian Development Bank. 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 this 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. CURRENCY EQUIVALENTS (as of 5 February 2018) Currency unit – Yuan (CNY) CNY1.00 = EUR0.1274 EUR1.00 = CNY7.8498 ABBREVIATIONS ACM Asbestos-Containing Material ADB Asian Development Bank AP Affected Person ASL Above Sea Level CSC Construction Supervision Company DCS Distributed Control System DI Design Institute EA Executing Agency EHS Environment, Health and Safety EIA Environmental Impact Assessment EMP Environmental Monitoring Plan EMS Environmental Monitoring Station EMU Environment Management Unit EPB Environmental Protection Bureau ETDZ Economic and Technological Development Zone FGD Flue Gas Desulfurization FSR Feasibility Study Report GHG Green House Gas GRM Grievance Redress Mechanism HES Heat Exchange Station IA Implementing Agency IEE Initial Environmental Examination Laoling Circular Economy Demonstration Industrial LCEDIP Park MEP Ministry of Environmental Protection NDRC National Development and Reform Commission PMO Project Management Office PPCU Project Public Complain Unit PPE Personnel Protective Equipment SCADA Supervisory Control and Data Acquisition SPS, ADB Safeguard Policy Statement, ADB TCE Tons coal equivalent US EPA United States Environmental Protection Agency WHO World Health Organization WEIGHTS AND MEASURES BOD5 Biochemical Oxygen Demand, five days cm Centimeter CO2 Carbon Dioxide COD Chemical Oxygen Demand dB(A) A-weighted sound pressure level in decibels DO Dissolved Oxygen GJ Gega Joule ha Hectare kcal Kilo calorie kg Kilogram km Kilometer kWh Kilowatt Hour m meter m/s Meters per Second m³ Cubic Meters mg/l Milligrams per Liter mg/m3 Milligrams per Cubic Meter mg/Nm3 Milligrams per Normal Cubic Meter MW Megawatt NH3-N Ammonia Nitrogen Nm3 Normal Cubic Meter NO2 Nitrogen Dioxide NOx Nitrogen Oxides °C Degrees Celsius pH A measure of the acidity or alkalinity of a solution PM Particulate Matter PM10 Particulate Matter smaller than 10 micrometers PM2.5 Particulate Matter smaller than 2.5 micrometers SO2 Sulfur Dioxide SS Suspended Solids TN Total Nitrogen TSP Total Suspended Particulates TABLE OF CONTENTS EXECUTIVE SUMMARY ...................................................................................................... i 1 POLICY, LEGAL AND ADMINISTRATIVE FRAMEWORK ......................................... 1 1.1 PRC Environmental Legal Framework .......................................................... 1 1.2 Relevant International Agreements ............................................................... 3 1.3 Applicable ADB Policies, Regulations and Requirements ............................. 4 1.4 World Bank EHS Guideline ............................................................................ 5 1.5 Applicable PRC standards ............................................................................. 5 1.5.1 Ambient Air Quality ................................................................................. 6 1.5.2 Water....................................................................................................... 7 1.5.3 Noise ....................................................................................................... 7 1.5.4 Boiler emissions ...................................................................................... 8 1.5.5 Wastewater Discharge ............................................................................ 9 1.5.6 Industrial noise emission ...................................................................... 10 1.6 PRC Environmental Impact Assessment Framework.................................. 10 1.7 Domestic EIA report ..................................................................................... 11 2 Project Description ................................................................................................... 13 2.1 Introduction .................................................................................................. 13 2.2 Project Background and Regional Steam Supply Status ............................ 13 2.3 Regional Heat Demand ............................................................................... 16 2.4 Main subproject content ............................................................................... 18 2.4.1 Subproject components ........................................................................ 18 2.4.2 Environmental Protection Investment................................................... 20 2.5 Current Status and Lay-out of the Subproject ............................................. 21 2.6 Heat source .................................................................................................. 21 2.7 Fuel .............................................................................................................. 21 3 Description of the environment .............................................................................. 25 3.1 Location ........................................................................................................ 25 3.2 Geography and Topography ........................................................................ 25 3.3 Climate ......................................................................................................... 25 3.4 Hydrogeology ............................................................................................... 26 3.5 Natural Resources ....................................................................................... 27 3.6 Environmental Baseline Monitoring ............................................................. 28 3.6.1 Ambient air ............................................................................................ 28 3.6.2 Surface water ........................................................................................ 30 3.6.3 Groundwater ......................................................................................... 32 3.6.4 Noise ..................................................................................................... 33 4 Environmental Impacts and Mitigation Measures ................................................ 35 4.1 Anticipated Positive Effects ......................................................................... 35 4.2 Identification of Potential Impacts ................................................................ 35 4.3 Anticipated Pre-construction Phase Impacts ............................................... 36 4.4 Anticipated Construction Phase Impacts and Mitigation Measures ............ 36 4.4.1 Soil Erosion ........................................................................................... 36 4.4.2 Wastewater ........................................................................................... 37 4.4.3 Air Pollution ........................................................................................... 37 4.4.4 Construction Noise ............................................................................... 38 4.4.5 Solid Waste ........................................................................................... 39 4.4.6 Hazardous Waste ................................................................................. 39 4.4.7 Impacts to Flora and Fauna.................................................................. 40 4.4.8 Community Disturbance and Safety ..................................................... 40 4.4.9 Occupational Health and Safety ........................................................... 40 4.4.10 Physical and Cultural Resources ......................................................... 41 During construction stage, no PCRs were encountered. ................................... 41 4.5 Anticipated Operation Phase Impacts and Mitigation Measures ................ 41 4.5.1 Exhaust Gas ......................................................................................... 41 4.5.2 Wastewater ........................................................................................... 50 4.5.3 Noise ..................................................................................................... 51 4.5.4 Storage, Transportation and Disposal of Ash, Slag and Desulfurization Gypsum ……………………………………………………………………………… 53 4.5.5 Occupational Health and Safety ........................................................... 54 4.5.6 Abnormal Operating Conditions ........................................................... 55 4.5.7 Adaptation to Climate Change ............................................................. 55 5 Analysis of Alternatives ..........................................................................................