Environment Management Framework



Environment Management Framework

for the Closure of Small Coal-Fired Units

in Shanxi and Shandong Provinces

Supported by

the China Thermal Power Efficiency Project

(EMF)

November 17, 2008

National Project Management Unit

Shanxi Provincial Project Execution Unit

Shandong Project Management Unit

TABLE OF CONTENTS

1. Preface 4

2. Information about the GEF China Thermal Power Efficiency Project 5

2.1 Project Development Objective 5

2.2 Project Activities 6

2.3 Selection of Targeted Unit Closure with Support of the MCSU Pilot 7

3. Objective of the EMF 7

4. Relevant Legal Framework 7

4.1 Relevant Environmental Laws and Policies of China 7

4.1.1 Relevant laws of the Central Government 7

4.1.2 Important State Policy Documents 8

4.1.3 Relevant local regulations of project provinces 8

4.2 Safeguard policies of the World Bank 8

5. Lessons Learned 9

6. Major environment impacts 9

6.1 Identification of Potential environment impact of closure of small coal-fired units 9

6.2 Mitigation measures for potential environment impacts 11

7. Public participation and information disclosure 18

7.1 Public consultation 18

7.2 Information Disclosure 18

8. Environment safeguard mechanism 18

8.1 Organization and institutional arrangement 18

8.2 Institutional Arrangement for Implementation, Supervision, Monitoring and Reporting 19

8.3 Training for Capacity Building 21

8.4 Financing for Implementation of the EMF 21

8.5 Appeal mechanism 21

8.6 Monitoring and Reporting 21

Annex 1: Questionnaire for the power plant with small units to be closed 22

Acronyms

|CHP |Combined Heat and Power |

|EM |Environmental Management |

|EMF |Environmental Management Framework |

|EMP |Environmental Management Plan |

|EPB |Environmental Protection Bureau |

|ESD |Energy-Saving Dispatch |

|GEF |Global Environment Facility |

|GHG |Greenhouse Gas |

|GOC |Government of China |

|MCSU |Mechanism for the Closure of Small Units |

|M&E |Monitoring and Evaluation |

|MEP |Ministry of Environmental Protection |

|NDRC |National Development and Reform Commission |

|NGO |Non-government Organization |

|PCBs |Polychlorinated Biphenyls |

|PDC |Provincial Development Commission |

|PEC |Provincial Economic Commission |

|PEU |Project Execution Unit (Shanxi Province) |

|PMU |Project management Unit (Shandong Province) |

|TBD |To be determined |

1. Preface

In order to achieve improved efficiency in coal-fired power generation in China, the closure of inefficient small[1] coal-fired power generation units with replacement capacity by large and efficient coal-fired units is one of the critical measures for saving coal consumption and reducing environmental pollution in China and for building a “resource-saving and environmentally friendly” society persuaded by the Government of China (GOC).

In January 2007, China State Council issued a Notice on Speeding up Closure of Small Thermal Plant to deploy the assignment of the closure throughout the nation, targeting the closure of 50 GW small units during 2007-2010; and 10 GW was planned for 2007.

Following the State Council Notice, The National Development and Reform Commission (NDRC) issued a supplementary document Several opinions on Speeding up Closure of Small coal-fired units to specify the category that should be closed in the 11th Five-Year Plan period (2006-2010) as follows:

• Regular coal-fired units with single unit capacity under 50MW;

• Regular coal-fired units with single unit capacity under 100MW and having operating for 20 years;

• All units with single unit capacity under 200MW that served for full design years;

• All coal-fired units with coal consumption amount 10 percent higher than that of the average level of the province of the units, or 15 percent higher than that of the average level of the state;

• All units that cannot meet environmental emission criterions; and

• All units required by specific department of China State Council, or based on relevant laws, regulations.

The NDRC has signed agreements with 30 provincial governments and 7 major power generation companies for their closure goals by 2010. By the end of 2007, about 14.38 GW of small units were closed, exceeding the national 2007 target of 10 GW. However, most of the units closed belonged to large power generation companies which have the financial, institutional and technical capacity to address the financial and social impact of such closures. Those units remaining to be closed in 2009 and 2010 are smaller and mostly owned by municipal and county level small power companies. These companies are less likely to be able to address the financial and social impact of closure in the allotted time without additional financial support

As agreed with the GOC, the GEF China Thermal Power Efficiency Project (the GEF Project) will support, as part of its project activities, the closure of small coal-fired units in China. It will support the establishment and pilot operation of a transparent and effective financial incentive mechanism for the closure of small units (MCSU). The MCSU will provide additional support to the municipal and county level small power companies an ‘Output-based Payment” to each MW of small coal-fired units closed. It will be piloted in Shandong and Shanxi Provinces to support the closure in 2009 and 2010 to test the effectiveness and adequacy of the MCSU in facilitating achievement of their respective 2010 closure targets. A detailed MCSU Operational Manual, of which the Table of Content has been developed and agreed between GOC and the World Bank, will be developed to define eligible criteria for unit selection, rate of the Output-based Payment per MW closed, verification of closure, verification of compliance to social and environmental requirements, and application, approval and disbursement procedures.

The project involves multiple small units[2] dispersed in Shandong and Shanxi Provinces. The activities may include dismantling equipments, pulling down buildings or chimneys with explosion if necessary, site clearing and recovering sites, laying or taking down pipes, handling wastes, etc., within the plant facilities, and in some cases, outside the plant. For example, if a plant is to be entirely closed, the out-going power transmission line up to the nearest substation may also need to be dismantled. It may also involve follow-up activities for site restoration to meet the needs of intended uses and purposes of the site after the decommissioning.

Environmental Benefits and Impacts. Closure of small coal-fired units to be supported by the pilot MCSU will bring significant environmental benefits in coal consumption and emission reductions[3]. It will also bring negative impacts, for e.g. noise and dust during the dismantling and site restoration process and pollutions due to improper treatment of wastes. It may also result in some site-specific impacts. These impacts need to be identified and avoided or mitigated to acceptable levels.

Since specific units to be closed and supported by the pilot MCSU in the two provinces can not be identified until mid 2009, this Environment Management Framework (EMF) is to provide a stand-alone tool for, once the targeted units are selected, identification of potential negative impacts, preparation of mitigation measures and arrangements for implementation, supervision, internal and external monitoring, reporting and capacity building. It is expected that implementation of and compliance to this EMF will lead to satisfactory environmental management of the decommissioning of the targeted small units. Compliance with this EMF will be legally binding, both through the Legal Agreements (GEF Grant Agreement and Project Agreement) and the MCSU Operational Manual and will be a condition for approval of the output-based payment under the MCSU.

The EMF is developed following relevant policies, laws and regulations of the Chinese Central Government and the provincial governments and applicable safeguard policies of the World Bank.

2. Information about the GEF China Thermal Power Efficiency Project

2.1 Project Development Objective

The project development objective is to reduce coal consumption and GHG emission per unit of electricity production in selected provinces in China, through (i) mitigating the financial barriers of closing inefficient small-sized coal-fired units; (ii) demonstrating the viability of investments in efficiency improvements in existing mid-sized thermal units; and (iii) developing effective regulations to implement the pilot ESD programs and conducting studies to support the transition to efficient generation dispatch.

2.2 Project Activities

The project has five components to be implemented during 2009-2012: (i) mechanisms to support the closure of inefficient small coal-fired generation units; (ii) demonstration of power plant efficiency improvements; (iii) transition to efficient generation dispatch; (iv)technical assistance for project implementation; and (v) project management. The EMF is prepared exclusively for the GEF supported closure of small units as part of the activities under the Component 1, while safeguard measures for all other components, if needed, have been prepared separately in line with applicable GOC policies and regulations as well as World Bank Safeguard Policies. More detailed information regarding the Component 1, which is relevant to this EMF, is provided below:

Component 1: Mechanisms to Support the Closure of Inefficient Small Coal-fired Generation Units. This component will support the closure of inefficient small thermal units and GHG emission reduction in Shandong and Shanxi by 2010. The component will support: (i) the establishment and pilot operation of a transparent and effective financial incentive MCSU. This will assist the small county and municipal power companies in Shanxi and Shandong to recover part of the costs of closure, mainly the cost of addressing the social impact of the closure; (ii) establishing CHP On-line Monitoring Systems to facilitate enforcement of government regulations for CHP unit operation; (iii) establishment of bulletin systems to enable the trading of emission allowances entitled by small units closed on schedule. These revenues can be complementary to the MCSU to partially offset closure costs; and (iv) monitoring and evaluation (M&E) and knowledge sharing to facilitate replication of successful experiences in other provinces of China.

MCSU Pilot to Support the Closure of Small Coal-fired Units in Shandong and Shanxi Provinces. As agreed with NDRC, Shandong will close 4000 MW and Shanxi 2,671 MW by 2010. By the end of 2007, about 1,717 MW and 1,007 MW of small coal-fired units were closed in Shandong and Shanxi respectively. The GEF Project–supported MCSU pilot will provide support to, in an output-based payment per MW closed, Shandong and Shanxi not only to achieve their agreed 2010 closure targets on schedule, but also to exceed their targets by 300 MW and 200 MW respectively. The total capacity of small units to be closed with support of the MCSU pilot is 2,910 MW (see Table 1).

Table 1. Target and Schedule of Closing down Small Units in Shanxi and Shandong

Unit: MW

| | |2010 Target |2007 |2008 |2009 |2010 |Additional by 2010 |

|2 |Shandong |4,000 |1,717 |1000 |800 |483 |300 |

|Closure supported by the MCSU Pilot |1,422 |988 |500 |

|Sub-total |2,910 |

2.3 Selection of Targeted Unit Closure with Support of the MCSU Pilot

The MCSU Pilot will support closure of small coal-fired units in Shandong and Shanxi provinces in line with the MCSU Operational Manual. The specific units eligible for support by the MCSU pilot are to be selected and determined in 2009 and 2010 during the project implementation. According to information from the provincial governments, the closure of small units during the “11th Five-Year” period may involve over 350 units from 150 plants in Shandong and over 130 power plants in Shanxi province. However, the MCSU pilot will be selective among all the candidate units, which can meet the eligible criteria defined in the MCSU Operational Manual and are required to comply with this EMF to ensure that adverse environmental impacts and potential environmental risks are identified, avoided, minimized or mitigated to acceptable level.

3. Objective of the EMF

The EMF is designed to address exclusively and specifically the environmental impacts of the GEF Project supported closure of small coal-fired units, as part of its activities defined under the Component 1. The objectives of this EMF are to:

• Enhance positive and sustainable environment output;

• Ensure identification of potential negative environmental impacts through an adequate process;

• Ensure development and implementation of mitigation measures to avoid or mitigate the negative impacts to acceptable levels;

• Ensure adequate institutional arrangement for identification of negative impacts, preparation and implementation mitigation measures, supervision, internal and external monitoring, reporting and capacity building.

4. Relevant Legal Framework

There are no specific environmental laws and regulations for the decommissioning of coal-fired power plants or infrastructure in general in China. However, there are some environmental laws, regulations and relevant policy documents that are applicable to this type of activities that the decommissioning may involve, as described below.

4.1 Relevant Environmental Laws and Policies of China

4.1.1 Relevant Environmental laws and Regulations of China

• Environment Protection Law of the People’s Republic of China (December 1989);

• Law of Water Pollution Prevention in P.R.C.( Feb 2008);

• Law of Air Pollution Prevention in P.R.C. (April 2000);

• Law of Solid Waste Pollution Prevention in P.R.C. (Dec 2004);

• Law of Noise Pollution Prevention in P.R.C. (Oct 1996);

• Law of Radioactivity Pollution Prevention in P.R.C (June 2003);

• Urban Radioactivity Waste Management Regulation (1987 MEP)

• Hazardous Waste Transfer Management Regulation (June 22 1999, MEP)

• Hazardous Wastes License Management Regulation (May 30 2004, State Council);

• State Hazardous Waste Catalogue (June 6 2008, MEP, NDRC);

4.1.2 Relevant State and Local Governments’ Policy Documents

• Notice on Speeding up Closure of Small Thermal Plant. (January 12 2007, issued by China State Council);

• Several opinions on Speeding up Closure of Small Coal-fired Units (Issued by NDRC)

• Guidance on Speeding up Closure of Small Thermal Plant issued by Shandong Provincial Government on August 24, 2007

• Shanxi Provincial Precepts on Closure of Small Thermal Plant issued on May 18, 2007 by Shanxi Provincial Government.

• The plan on the closure and shut down of small thermal power units (May 2007 Shanxi Province);

4.1.3 Relevant local regulations of project provinces

• “Methods to implement ‘Law of Prevention of Solid Waste Pollution in P.R.C.’ in Shandong”;

• “Detailed rules of implementation of the law of prevention of noise pollution in Shandong Province”;

• “Shandong Provincial Water Pollution Prevention Rules”;

• “The 11th “Five Year (2006-2010)” environmental protection plan of Shandong Province”;

• “Management rules on air pollution prevention in Shanxi Province” (Dec. 1996);

← “Supervision rules on significant industrial pollution sources in Shanxi Province” (Oct. 2007);

4.2 Safeguard policies of the World Bank

Site-specific environmental impacts in additional to those listed in this EMF (see section below) may be identified for a specific closure project. Based on the nature, scale, and potential site-specific environmental impacts identified, an Environment Management Plan (EMP) may need to be prepared following the template provided in this EMF. The following World Bank Safeguard Policies are provided for reference during the identification of impacts and preparation and implementation of the EMP.

• OP 4.01 Environment Assessment

• OP17.50 Disclosure of safeguard documents

Table 2. Bank’s Safeguard Policies that Might be Applicable

|Safeguard Policy |Summary of Policy |

|OP 4.01 Environment |Environment assessment is a process whose breadth, depth, and type of analysis depend on the nature, |

|Assessment |scale, and potential environmental impact of the proposed project. Environment assessment examines project|

| |alternatives; identifies ways of improving project selection, sitting, planning, design, and |

| |implementation by preventing, minimizing, mitigating, or compensating for adverse environmental impacts |

| |and enhancing positive impacts; and environment assessment includes the process of mitigating and managing|

| |adverse environmental impacts throughout project implementation. |

|OP17.50 disclosure of |All projects must disclose critical information in the country and at the website of the World Bank. |

|safeguards documents | |

5. Lessons Learned

The GEF Project, with its Component 2, will also support conversion of the two 300 MW power generation units in Shandong Huangtai Thermal Power Plant to improve the overall plant efficiency for both heat and power supply. The plant is supply heat for industrial loads and district heating with its two combined heat and power (CHP) units, 100 MW each. As part of the Component 2 activities, the two sets of 300 MW units for power generation only will be retrofitted into CHP units so as to substitute the heat supply by the two smaller 100 MW units to save coal consumption to meet the same power and heat demand that the plant as a whole is supplying. This will result in decommissioning of the two 100 MW units.

Following the applicable government policies and regulations and the World Bank Safeguard Policies, a thorough environmental auditing and environment assessment were conducted for the Huangtai Project, covering the decommissioning of these two smaller 100 MW units. The impacts identified are presented in Table 3 below and could be examples for the typical impacts that decommissioning of small coal-fired units would result in, in the cases that partial units of a plant, not an entire plant, are to be decommissioned.

Table 3. Environmental Impacts of Closure of 100 MW Units

in Shandong Huangtai Power Plant

|Potential Impacts|Explanation |

|Dust |In the whole course of dismantling, explosion, materials laying down, transportation, loading and |

| |unloading, stacking disposal earth in the air, and etc. will produce dust and could become severe while |

| |in a dry and windy day. |

|Noise |Major noise sources are explosions, machines and vehicles |

|Surface water |Oil leakage, dripping, and running out and mechanical washing water and domestic wastewater from workers.|

|Solid wastes |Dismantled plant disposals and domestic garbage |

6. Major environment impacts

6.1 Identification of Potential environment impact of closure of small coal-fired units

Closure of small coal-fired units to be supported by the pilot MCSU will bring significant environmental benefits in coal consumption and emission reductions[4]. It will also bring negative impacts on environment due to all types of activities of the closure and subsequent dismantling and demolishing activities, which will inevitably deal with waste disposals, air pollution from dust and waste emission, noise, and temporary land occupation, traffic and so on, and even with radiation waste disposals in case some of the units that use radiation instruments in their operations.

Once a small unit is selected as the target for support of its closure, an environmental screening shall be carried out by a qualified environmental consultant or agencies to identify potential impacts. The identification process shall be well documented for internal and external review. The identification process shall include:

• Review the scope and types of activities for the closure of the small units;

• Going through the questionnaire to identify potential impacts

Base on the types of equipment, instrument, fuel handling and buildings that a typical small coal-fired unit is associated with, it is likely that the closure of all small units will result in the following generic dismantling construction activities related impacts:

(1) Regualr Solid wastes disposal will be the major issue during the closure process. All activities such as dismantling equipments, buildings and pipe works may produce large amount of construction waste, of which some are to be reutilized or recycled. Mismanagement of the waste handling and treatment may cause severe pollutions to the underground water.

(2) Noise will temporarily come with activities above-mentioned. High-noise machines like grab, bulldozer, chain block or lift, electric drill and so on will be used for dismantling, demolishing. Explosion if used will also result in high-level noise. The noise may affect local people’s life and work although the time may be short and temporary.

(3) Air pollution from flying dust and exhaust gas of transportation vehicle will come with activities during dismantling, demolishing, and conveying, explosion of cooling tower (happened in some cases of the closure of small units in Shandong and Shanxi).

(4) Water environment may be affected due to oil leakage from machineries, wastewater and domestic sewage during the closure process, which may pollute local surface water or city sewage nearby. However since the plants site will be carefully selected to avoid sensitive watershed, the impact can be slight and limited.

(5) Soil erosion may come with civil work of the closure. Large amount of materials may pile up at the sites to cause improper land occupation, and digging works also destroy the surface of the earth. Whereas, pricking up of soil and water loss happens only at the prophase of closure process, and is short-term.

Under specific case, the closure of small units may also involve following special impacts:

(6) Hazardous, dangerous or restricted use of material

(i) Radioactive waste handling at some power plants where radioactive instrument such as radiant sensing device may be used for plant operation; improper collection, transportation, handling or disposal may cause potential serious public health and safety danger;

(ii) Impacts due to PCBs leakage in case of a transformer is to be dismantled; improper collection, transportation and disposal of PCBs may cause serious soil, water environment pollution;

(iii) Impacts due to improper handling of chemical and explosive materials, including acid, alkali, and explosive gas (H2), fuel etc.

(7) Other site-specific impacts may be involved since unforeseen case may encounter, including:

(i) Impacts due to dismantling of transmission line outside the plant in case the entire plant is to be closed

(ii) Other site-specific impacts such as site restoration for different use of the land in case an entire plant is to be decommissioned and the land is to be restored for other purposes.

6.2 Mitigation measures for potential environment impacts

Mitigation measures for the above-mentioned environmental impacts from the closure of small coal-fired units to be supported by the MCSU pilot in Shandong and Shanxi are presented in Table 4 as below. The Table also including arrangements for:

• Budgeting the cost of mitigation measures;

• Institutional arrangement for implementation and supervision

• implementation of the mitigation measures; and

• internal and external supervision; and reporting.

Table 4. Summary Table for Major Environmental Impacts and Implementation of Mitigation Measures

|project activity |Major impacts |Mitigation Measures |Cost Estimation for |Implementation |Frequency of internal |Supervision Agencies |

| | | |Implementation of the Mitigation |arrangement |and external supervision| |

| | | |Measures | | | |

| |(2) Noise |(2) Noise pollution control | | | | |

| |Major noise comes from |Low-noise level machinery shall be used|Implementation for the mitigation|To be carried out by |Internal supervision as |Plant for internal |

| |machines and vehicles. |for closure and dismantling; |measures is to be defined in the |the contractor as part |frequently as needed, |supervision and reporting; |

| |However, since the |No dismantling activities are permitted|bidding document and/or contract |of its contractual |throughout the contract |Local environmental |

| |construction duration is |at night while reasonable timetable and|for the dismantling, and the |obligations |duration |management agencies; |

| |short, and the impact is |notice/bulletin to local residents is |contractor is required to include| |Supervision by local |Third-party for independent|

| |limited and small during |publicized; |the cost of mitigation in its | |environmental agencies |supervision; |

| |construction. |To separate the construction area from |contract price | |during dismantling |WB for periodic |

| | |local residents by fencing if needed. | | |process; |supervisions |

| | | | | |No monitoring will be | |

| | | | | |taken during | |

| | | | | |construction except | |

| | | | | |complains raised from | |

| | | | | |such issue. | |

| |(3) Air pollution |(3) Air pollution control |Implementation for the mitigation|To be carried out by |Internal supervision as |Plant for internal |

| |In the whole course of |To sprinkle, timely clear spare soils, |measures is to be defined in the |the contractor as part |frequently as needed, |supervision and reporting; |

| |construction, |and set up block boards, to cover |bidding document and/or contract |of its contractual |throughout the contract |Local environmental |

| |transportation, loading and |vehicles with canvas while |for the dismantling, and the |obligations |duration |management agencies; |

| |unloading, stacking disposal|transporting, and avoid loading and |contractor is required to include| |Supervision by local |Third-party for independent|

| |earth in the air, and etc. |unloading materials while it is windy. |the cost of mitigation in its | |environmental agencies |supervision; |

| |will produce dust and |monitor TSP at the sites if explosive |contract price | |during dismantling |WB for periodic supervision|

| |exhaust, and become severe |is used for destroying chimney and | | |process; | |

| |while it is a dry and windy |cooling water tower; | | |Monitoring will be taken| |

| |day. However, since the |Spray water immediately after the | | |by local environmental | |

| |traffic is not heavy, the |explosion to control the TSP around the| | |monitoring station once | |

| |impact of vehicle operation |site. | | |during construction. | |

| |on the ambient air along the| | | | | |

| |road is minor. | | | | | |

| |(4) Temporary land |(4) Temporary land occupation control | | | | |

| |occupation |To put on notice for local residents to|Implementation for the mitigation|To be carried out by |Internal supervision as |Plant for internal |

| |It would be very short time |apologize for inconvenience and recover|measures is to be defined in the |the contractor as part |frequently as needed, |supervision and reporting; |

| |to occupy land nearby while |the land after activities. |bidding document and/or contract |of its contractual |throughout the contract |Local environmental |

| |the activities undertaken |The temporarily occupied land will be |for the dismantling, and the |obligations |duration |management agencies; |

| |while most activities will |immediately cleaned up after the |contractor is required to include| |Supervision by local |Third-party for independent|

| |be within the plant, so it |completion of the dismantle activity |the cost of mitigation in its | |environmental agencies |supervision; |

| |is limited, reversible, and | |contract price | |during dismantling |WB for periodic supervision|

| |acceptable. | | | |process; | |

| | | | | | | |

| |(5) Soil erosion |(5) water and soil conservation | | | | |

| |Earthwork digging and waste |To prepare earthwork digging and |Implementation for the mitigation|To be carried out by |Internal supervision as |Plant for internal |

| |soils stacking, vegetation |filling back reasonably during |measures is to be defined in the |the contractor as part |frequently as needed, |supervision and reporting; |

| |destroy will cause soil and |construction, to adopt appropriate |bidding document and/or contract |of its contractual |throughout the contract |Local environmental |

| |water loss during |measures at disposed soils sites, and |for the dismantling, and the |obligations |duration |management agencies; |

| |construction. |to avoid digging and filling at rain |contractor is required to include| |Supervision by local |Third-party for independent|

| | |days; |the cost of mitigation in its | |environmental agencies |supervision; |

| | |To stack earthwork reasonably to keep |contract price | |and also administrative |WB for periodic supervision|

| | |certain distance away from sewers and | | |sector of “water and | |

| | |river, and to cover materials and | | |soil conservation” | |

| | |disposed earth without shipping out | | |during dismantling | |

| | |duly when it is a rainstorm day; | | |process; | |

| | |To recover the sites for future use | | | | |

| | |timely after activities. | | | | |

| |(6) Pollution to surface |(6) Solid waste and Oil Leakage Control| | | | |

| |water and Ground water |Treatment of the solid waste shall |Implementation for the mitigation|To be carried out by |Internal supervision as |Plant for internal |

| |Improper treatment of solid |follow the mitigation measures stated |measures is to be defined in the |the contractor as part |frequently as needed, |supervision and reporting; |

| |waste, or leakage from |above in item; |bidding document and/or contract |of its contractual |throughout the contract |Local environmental |

| |machineries or plant |For control of oil leakage from |for the dismantling, and the |obligations |duration |management agencies; |

| |equipment during the |construction machineries, mitigation |contractor is required to include| |Supervision by local |Third-party for independent|

| |dismantling may result in |measures include: set up a station for |the cost of mitigation in its | |environmental agencies |supervision; |

| |pollution to surface water |machine or vehicles’ periodic |contract price | |during dismantling |WB for periodic supervision|

| |and/or ground water |maintenance and check, and a collecting| | |process; | |

| | |tank needed hereon for waste oil. | | | | |

|Site-Specific Impacts and arrangement for identification and mitigation | | | | |

|Dismantle of |(7) radioactive pollution |(7) Radiation prevention measures | | | | |

|Radioactive instrument |Improper handling will cause|Contact with relevant administrative |Additional budget will be needed |professional | |professional radioactivity |

| |danger and harm to local |agency responsible for the |for such handling. |radioactivity | |management agencies |

| |people. |radioactivity management, and report | |management agencies | | |

| | |the proposed dismantle activity; | | | | |

| | |Entrust professional radioactivity | | | | |

| | |agencies for proper handling | | | | |

|Dismantling of |(8) Liquid Waste |(8) Liquid Waste Treatment | | | | |

|transformers that |Old-fashioned transformer |Contact with wastes management agency |Additional budget will be needed |Certificated wastes | |Local environmental |

|contain transformer oil|oil contains poisonous PCBs,|of local EPB; |for such handling. |treatment agencies | |management agencies |

| |any improper treatment may |Entrust Certificated hazardous wastes | | | | |

| |contaminate the soil and |handling unit; | | | | |

| |water environment; and |( Certificated hazardous waste handling| | | | |

| |new-typed transformer oil is|unit handle or recycle transformer oil.| | | | |

| |usually to be recycled. | | | | | |

|decommissioning of an |(9) Chemical and explosive |(9) safety management for chemical and |( TBD. |(To be carried out by |(Internal supervision as|(Plant for internal |

|entire plant |materials |explosive materials | |Power plants with |frequently as needed, |supervision and reporting; |

| |(improper management of |(designate staff for the management of | |closure of units |( Local Safety |(supervised by local safety|

| |these materials may cause |the materials | | |Production Management |production management |

| |soil, water pollution, and |(consult with local fire brigade for | | |agencies |agencies; |

| |lead to explosion accident |the safety disposal of explosive | | | | |

| | |materials; | | | | |

|Dismantling of |(10) additional impacts to |(10) An EMP might be needed | | | | |

|transmission line |be identified |Document the impacts identified and |TBD. The cost could be |To be carried out by |Internal supervision as |local professional |

|outside the plant |Impacts need to be |inform the PMU/PEU and the Bank; |site-specific and is to be |the contractor as part |frequently as needed, |electricity management |

| |identified by experienced |Impacts same as above shall follow the |determined (TBD) once the |of its contractual |throughout the contract |agencies |

| |consultants or agencies. |mitigation measures accordingly |planning and/or design of the |obligations |duration | |

| |Specific consideration shall|In case of impacts not listed above are|dismantling activities are | |Supervision by local |Third-party for independent|

| |be given to the |identified, depending on the nature and|completed; | |professional electricity|supervision; |

| |environmental conditions |scale of the impacts not covered above,|Implementation for the mitigation| |management agencies | |

| |along the route of the |and EMP may need to be prepared |measures is to be defined in the | |during dismantling |(WB for periodic |

| |transmission line to be |following the template |bidding document and/or contract | |process |supervision |

| |dismantled; |Professional electricity management |for the dismantling, and the | |(Twice by external | |

| | |department will be consulted for the |contractor is required to include| |monitoring – once during| |

| | |dismantling issue of transmission line |the cost of mitigation in its | |the process and once by | |

| | |and equipment |contract price | |the completion of the | |

| | | | | |dismantling | |

|Site Contamination: |(11) Impact of Site |(11) An EMP might be needed | | | | |

|Restoration of the site|Restoration |for the restoration of the site, i.e. |TBD. The cost could be |( To be carried out by |Supervision by local |Supervision by local |

|after decommissioning |Some special sites may need |coal storage/handling site, ash ground,|site-specific and is to be |the contractor as part |environmental agencies; |environmental agencies; |

|of an entire plant |to be restored or |depending on the final use purpose of |determined (TBD); |of its contractual | | |

| |rehabilitated, for instance,|the land restored; | |obligations | | |

| |the coal storage/handling | | | | | |

| |site, and ash ground. After | | | | | |

| |closure of entire plant, | | | | | |

| |these sites may cause | | | | | |

| |potential impacts on the | | | | | |

| |air, and water environment; | | | | | |

7. Public participation and information disclosure

Public participation and information disclosure should comply with relevant regulations or requirements of the World Bank and the Chinese Government.

7.1 Public consultation

Before the dismantling action starts, environmental staff of the plant should consult with nearby community for the potential impacts, and the proposed mitigation measures. The opinion and suggestion from nearby community should be incorporated into the dismantling plan.

Project management units will fully consider pubic opinions and reasonable suggestions will be taken while explanations will be offered to the public and NGOs for the excluded suggestions, until the satisfaction of the later.

In accordance with the stipulations of safeguard policy of the World Bank, survey of public participation will be conducted based on the requirements of this framework. The followings present the approaches of public participation:

Questionnaire survey. In line with the activities of project implementation in counties, public survey questionnaire will be developed, including major possible activities to be implemented, the potential environment and social impact and mitigation measures to be adopted, and public opinions will be solicited in these aspects. The questionnaire will be distributed to those who are directly related to the project, Views and opinions solicited should be consolidated.

Expert consultation. Experts in environment protection should be invited before the closure of small units or plant, to participate in the technical consultation meeting on the potential environment issues that might come up with the implementation of the project. It is also to understand the possible impacts the project might produce, issues that deserve special attention and corresponding mitigation measures to be adopted in the project.

7.2 Information Disclosure

The EMF will be disclosed through public media including major local newspaper and websites, and InfoShop of the World Bank.

8. Environment safeguard mechanism

8.1 Organization and institutional arrangement

In accordance with the institutional arrangement for implementation of the GEF project, the power plants are responsible for hiring contractors to decommission targeted small units and for associated environmental management, in both Shandong and Shanxi provinces. The contractors, under the supervision of the various government agencies, the third-party external monitor and the World Bank supervision missions, will be responsible for implementation of mitigation measures as part of its contractual obligations (see Figure 1). Shanxi Project Execution Unit (PEU) and Shandong Project Management Unit (PMU) will be responsible for overall coordination and support to ensure smooth functioning of various parties involved as illustrated in the Figure 1 and to ensure compliance with this EMF thus the MCSU Operational Manual and the Legal Agreements between the GOC, Shandong Province, Shanxi Province and the World Bank. The National PMU, established at the central government level, will oversee the entire process.

8.2 Institutional Arrangement for Implementation, Supervision, Monitoring and Reporting

The institutional arrangement for implementation of various project activities as illustrated in the Figure 1 below. Figure 2 shows the environmental management (EM) flow. And each responsibility is addressed as follows.

Figure 1. Institutional Arrangement for Implementation of EMF

[pic]

i) Shanxi PEU and Shandong PMU will be responsible for preparation of the lists of small units to be supported by the MCSU in 2009 and 2010.

ii) National PMU will confirm the lists for 2009 and 2010 after endorsement by relevant central government authorities.

iii) Shandong Provincial Development Commission (PDC) and Shanxi Provincial Economic Commission (PEC) are responsible for ensuring and supervising the closure of small units.

iv) Each power plant with small units to be closed is responsible for, with assistance of experienced consultants or agencies as specified in Table 4 above, potential environmental impacts identification beforehand, fill in the questionnaire of the EMF, development/selection of mitigation measures, finalize the EMF and/or EMP, and incorporation of the entire EMF/EMP into the bidding document and contract for the units dismantling for implement by the contractor, in line with the EMF, using a standard contract condition:

“The Contractor shall fully implement the EMF/EMP, including the mitigation measures, internal monitoring and reporting. The cost of such implementation shall be incorporated as part of the bid price/contract value and be paid by the Plant to the Contractor upon verification of compliance with the EMF/EMP.”

v) Shanxi PEU and Shandong PMU will review, with assistance of the third-party consultant hired for external monitoring, the questionnaire prepared by each power plant, to identify the necessity of preparing of specific EMP for the closure and dismantling. The World Bank task team will carry out sample checks with site visits during its supervision missions.

vi) The dismantling contractors are responsible for implementation of all environmental prevention measures during the course of dismantling activities as part of its contractual obligations.

vii) As part of their routine functions, the Provincial Environment Protection Bureau (EPB) and the local EPB are responsible for supervising the environmental management (EM) for the dismantling to ensure compliance with relevant government laws and regulations;

viii) A third-party external monitor will be engaged by Shanxi PEU and Shandong PMU for (a) external monitoring on a regular basis as agreed; (b) preparation of regular external monitoring report; and (c) preparation of a final assessment of compliance to this EMF.

ix) World Bank task team will carry out regular environmental supervision.

Figure 2. Environmental Management Flow Chart for MCSU Pilot-supported Closure

[pic]

8.3 Training for Capacity Building

The environment safeguard system development will be mainstreamed in the training of the project. PMU, PEU and Power plants selected to be supported with the MCSU Pilot should offer relevant training to the contracted dismantling teams on the specify mitigation measures that should be taken.

8.4 Financing for Implementation of the EMF

The mitigation measures shall be specified in the bidding documents and/or contract for the unit dismantling. The cost of implementation of the mitigation measures shall be incorporated as part of the dismantling contract. Cost of external monitoring will be financed by the provincial PMU/PEU using the GEF Grant proceeds.

8.5 Appeal mechanism

In order to ensure the interests of the groups affected by the closure and dismantling project, efforts are needed to maintain clear channel for appeals. The purpose of setting up appeal procedures is to ensure that response will be given to the complaints of the people affected by the closure and dismantling project, and such complaints can be addressed without going to the cumbersome formal channels.

The appeal procedures are briefly presented below: anyone affected by the project in environment aspects can orally or submit appeal in writing to local EPB or government. Grassroots institutions should address the raised issues within two weeks of receiving the appeal. When the appealer is not content with the ruling of the grassroots organizations, he/she can file appeal to the Provincial PMU/PEU and/or the provincial EPB, which will respond and handle the appeal within two weeks after receiving the appeal. If the appealer is still not content with the ruling of the second stage, he/she can file civil lawsuits to the people’s court.

8.6 Monitoring and Reporting

The monitoring of environment impacts will be divided into internal and external monitoring.

The internal monitoring is part of the activities to be implemented by power plants selected and the contractors for dismantling, including the monitoring of the environment impacts during the entire process of project implementation, the post-evaluation and the assessment of the implementation of mitigation measures. Necessary adjustments to the original mitigation plans will be made in accordance with the nature and level of environment issues of the closure project.

For external monitoring, A qualified consultant will be engaged as the third-party independent monitor by the Provincial PMU/PEU. The external monitor will carry out external monitoring on regular basis, including interviewing, sampling, analysis, evaluation and thereafter advice on further mitigation measures or correction measures to be taken by the plant and/or the dismantling contractor. The external monitor will submit External Monitoring Report on a regular basis and final assessment on compliance to this EMF.

For reporting, both internal and external reports will be submitted to the World Bank through the Provincial PMU/PEU on a regular basis.

9. Compliance to the EMF

Compliance to this EMF is required in the MCSU Operational Manual as a condition for approval of the Output-based Payment for the MW closed under the MCSU pilot.

Annex 1: Questionnaire for the power plant with small units to be closed

|The table below is for two types of the WB funded project, please check it carefully, and answer corresponding questions. |

|General information: |

|name of the plant: |

|Project location: Zip Code: Tel: |

|Plant location: Suburb □ Urban □ the total area of the plant □ |

|Type of company: check with √ |

|State owned □ Collective □ Private □ Joint Venture □ |

|Will the small units be dismantled within the existing plant while other units operate continuously? □ if yes, please go to |

|answer questions 1-34 below. |

|Will all units and plants be dismantled, and shut down? □ if yes, please go to answer questions 1-48 below. |

| | |

|1. When was the plant constructed? | |

| | |

|2. How many years does the unit operate? | |

| | |

|3 Has it served its designed years? | |

| | |

|4. What is the unit’s capacity? (MW) | |

| | |

|5. What are the main equipments to be dismantled? | |

|Boil-type: capacity service year(s) | |

|Turbine: capacity service year(s) | |

|electricity generator: capacity service year(s) | |

|Others: | |

| | |

|6. Are there any environmental sensitive targets near the plant? check with √ | |

|School □ hospital □ community □ others □ | |

| | |

|7. Is there the river near the plant? | |

| | |

|8 Name of the river? The current water quality, check with √ | |

|Class Ⅱ□ III □ IV □ V □ | |

| | |

|9 Is there any flue gas treatment (FGD, etc.) or dust treatment facility to be dismantled at this time? | |

| | |

|10 Does the treatment effect compliance with environmental standards? | |

| | |

|11 How much solid wastes is disposed annually, and types, and treatment? | |

| | |

|12 Has coal ash comprehensively utilized? How? | |

| | |

|13 How much coal ash left unutilized? | |

| | |

|14 Is there particular site for disposal coal slag? If yes, and where? | |

| | |

|15 How much solid waste will be produced during dismantling? List the type, amount, disposal method. | |

| | |

|16 Is the transformer old-fashioned or new-typed? | |

| | |

|17 What is the plan for the treatment or disposal of the transformer oil? | |

| | |

|18 Who will be responsible for reuse, recycle, treatment or disposal of the transformer oil? | |

| | |

|19 Are they certificated by administrative agencies? | |

| | |

|20 Is there any radioactivity facility in the small unit or plant to be shut down? If yes, what is it? | |

| | |

|21 Who will be responsible for the disposal and how? | |

| | |

|22 What is the qualification of the agency responsible for the disposal? please provide this agency’s name | |

|and contact telephone number | |

| | |

|23 Will the chimney be dismantled for small units? The height of the stack, the diameter? | |

| | |

|24 Will explosive be used? | |

| | |

|25 What are the mitigation measures during explosive to mitigate the dust and noise? | |

| | |

|26 Will the cooling water tower dismantled? List the Height, diameter? | |

| | |

|27 Will the explosive be used for dismantling cooling tower? | |

| | |

|28 What are the mitigation measures during explosive to mitigate the dust and noise? | |

| | |

|29 Does local EPB know the closure of the plant or dismantle of small units? Or have local EPB been | |

|consulted? | |

| | |

|30 If yes, what is the EPB’s suggestion on mitigation measures? Is environmental monitoring required by EPB | |

|if the explosive used for dismantling chimney and cooling tower? | |

| | |

|31 Is there any transmission line outside the plant to be dismantled? | |

| | |

|32 Has the plan made? If yes, what is it? | |

| | |

|33 How much coal will be saved from the closure of small units? | |

| | |

|34 How much pollutant allowance will be saved from the closure of small units? | |

| | |

|35 Is there any wastewater treatment equipment included in the dismantling? If yes, simply describe the | |

|capacity, technical parameters and effect, etc. | |

| | |

|35. Where is the ash ground? And how far is it from the plant? | |

| | |

|36 What kind mitigation measures have been taken for the ash ground? | |

| | |

|37 What is the total area of the ash ground? | |

| | |

|38 Has the ash ground caused some environmental issues? What are they? | |

|39 Is there plan for the restoration/rehabilitation of ash ground? If yes, please describe? | |

| | |

|40 What are the chemical raw materials used in the plant? | |

| | |

|41 What are the measures taken for handling these chemical materials when closing the plant? (HCL, H2SO4, H2| |

|gas, NaOH, etc.) | |

| | |

|42 Are there any other hazardous or explosive materials? What are they? What are the measures for handling | |

|these materials? | |

| | |

|43 What is the storage and transporting method for these chemical materials, or other hazardous and | |

|explosive materials? Have they been handled safely? | |

| | |

|44 Is there any place for diesel storage? | |

| | |

|45 And will there be any oil leakage produced during dismantling? How to handle it? | |

| | |

|46 Where the area of the coal storage site? | |

| | |

|47 What kind of mitigation measures have been taken for the coal storage site? | |

| | |

|48 Is there plan for the restoration/rehabilitation of coal storage site? If yes, please describe. | |

| | |

|49 Will the closure of entire plant trigger dismantling of transmission line outside the plant? If yes, | |

|please describe what kind of mitigation measures were prepared? Who will implement these measures? | |

| | |

|50 Any other site specific issues may be involved but not addressed in this questionnaire? If yes, please | |

|explain | |

-----------------------

[1] Refers to units of 50 MW or smaller

[2] about 60 to 100 units, since most of the units are between 25 MW to 50 MW, making up the targeted 2,910 MW and involving 20 to 40 small power companies, as a rough estimation.

[3] Units to be closed cannot be installed in other provinces, as regulations only allow installing generation of size 300 MW or more.

[4] Units to be closed cannot be installed in other provinces, as regulations only allow installing generation of size 300 MW or more.

-----------------------

Provincial & local EPB, WB

Plant’s internal monitoring, reporting

Contractual obligation of Contractors

Independent External Monitor

Implementation of all the applicable mitigation measures listed in this EMF

External monitoring, reporting, final assessment

Routine EM supervision

[pic][5]%~‚¨©ª°¸¹ÂÄÊËÌèì 2 6 7 êÝе¨šµŠ}Ýpf\µR¨G?G?G?G

h•>PCJaJhNvh}IãCJaJh}IãCJPJaJhy#iCJPJaJhPMU/PEU supported by Independent External Monitor

Review the questionnaire to confirm if EMP needed

Power Plants / Consultants

Identification of environmental impacts and fill out questionnaires

Power Plants / Consultants

Finalize the pending items of the EMF or prepare EMP

Confirmation of the lists

National PMU

Preparation of the closure lists

Shandong PMU, Shanxi PEU

(incl. Provincial Development/Economic Commissions)

National PMU

Shandong PMU, Shanxi PEU

EMP not required

Local Env. Agencies

Provincial EPB

Supervision or coordination

Power Plants with Closure of Units

Implementation of the EMP

Administrative and/or contractual

Contractors

Third-party Monitor

EMP required & prepared

WB Team

Responsible Agency

EM Process

E1786

V11

................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download