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World Bank Financed Shanxi Gas Utilization Project-- Yangcheng County Gas Utilization Sub-Project Environmental Impact Assessment Report Project Implementing Agency: Shanxi Provincial Guoxin Energy Development Group Co., Ltd. EA Agency: Institute of Coal Chemistry of Chinese Academy of Sciences February 2017, Taiyuan SFG3473 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

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  • World Bank Financed Shanxi Gas Utilization Project--

    Yangcheng County Gas Utilization Sub-Project

    Environmental Impact Assessment

    Report

    Project Implementing Agency: Shanxi Provincial Guoxin Energy Development Group

    Co., Ltd.

    EA Agency: Institute of Coal Chemistry of Chinese Academy of Sciences

    February 2017, Taiyuan

    SFG3473

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  • Name of Project: World Bank Financed Shanxi Gas Utilization Project-- Yangcheng

    County Gas Utilization Project

    Type of Document: Comprehensive Environmental Impact Assessment Report

    EA Agency: Institute of Coal Chemistry of Chinese Academy of Sciences

    Legal Representative: Wang Jianguo (Director, Research Fellow)

    Project Leader: Dong Guiyan (Senior Engineer)

    Wang Jianhua (Engineer)

  • Table of Contents

    1 Overvierw ................................................................................................................................ 1

    1.1 Project Background and Origin .................................................................................... 1

    1.2 Objectives of Environmental Impact Assessment ........................................................ 4

    1.3 Screening of Environmental Impact Assessment Factors ............................................ 5

    1.4 Assessment Scope ........................................................................................................ 8

    1.5 Assessment Period ........................................................................................................ 9

    1.6 Assessment Rating ....................................................................................................... 9

    1.7 Assessment Methods .................................................................................................. 10

    1.8 Key Points of Assessment .......................................................................................... 10

    1.9 Assessment Procedures .............................................................................................. 10

    1.10 Environmental Protection Objectives ....................................................................... 11

    2 Environmental Policies, Framework of Laws and Regulations and Basis for EA Preparation

    .................................................................................................................................................. 15

    2.1 Environmental Protection Laws and Regulations ...................................................... 15

    2.2 Local Regulations ....................................................................................................... 16

    2.3 Environmental Protection Technical Specifications .................................................. 16

    2.4 World Bank Safeguard Policies and EHS of World Bank Group .............................. 17

    2.5 Assessment Standards (Compared with EHS Standards) .......................................... 18

    2.6 Urban Planning, Atmospheric Pollution Regulation Planning and Environmental

    Functional District Planning Documents ......................................................................... 20

    2.7 Analysis of Conformity and Consistency of the Proposed Project with Relevant

    Regional Policies and Plans ............................................................................................. 21

    3 Project Description ................................................................................................................ 23

    3.1 Contents ...................................................................................................................... 23

    3.2 Construction Plan and Method ................................................................................... 27

  • 4 Environmental Situation ........................................................................................................ 31

    4.1 General Introduction of Natural Environment ........................................................... 31

    4.2 Overview of Eco-environment ................................................................................... 34

    4.3 Overview of Social-economic Environment .............................................................. 35

    4.4 Current Environmental Quality .................................................................................. 37

    4.5 Major Environmental Issues ....................................................................................... 38

    5 Environmental Impact Analysis and Environmental Protection Measures ........................... 40

    5.1 Analysis of Environmental Problems of Domestic Similar Projects ......................... 40

    5.2 Ambient Air Impact Analysis and Protective Measures ............................................ 43

    5.3 Water Environment Impact Analysis and Protection Measures ................................. 45

    5.4 Solid Waste Impact Assessment and Protective Measures ........................................ 47

    5.5 Acoustic Environmental Impact Assessment and Acoustic Environmental Protection

    Measures ........................................................................................................................... 49

    5.7 Social Environment Impact Assessment and Protective Measures ............................ 52

    5.8 Impacts on Physical Cultural Resources and Protective Measures ............................ 58

    6 Analysis of Regional Cumulative Environmental Impacts ................................................... 62

    6.1 Analysis of Cumulative Impacts on Ambient Air ...................................................... 62

    6.2 Analysis of Social Cumulative Impacts ..................................................................... 64

    6.3 Analysis of Culmulative Impacts of Risks of Gas Pipeline Network in Shanxi

    Province ............................................................................................................................ 64

    6.4 Measures to Address Cumulative Impacts ................................................................. 65

    7 Due Diligence Review .......................................................................................................... 71

    7.1 Due Diligence Review of Pipeline related projects ................................................... 71

    7.2 Due Diligence of Existing Gas Facilities Upgrading Project ..................................... 72

    8 Alternatives Analysis ............................................................................................................ 74

    8.1 Alternatives Analysis for “With” and “Without” the Project .................................... 74

  • 8.2Alternatives Analysis of Transmission and Distribution Pipeline Network ............... 75

    9 Environmental Risk Analysis and Mitigation Measures ....................................................... 81

    9.1. Environmental Risk Identification ............................................................................ 81

    9.2 Source Analysis .......................................................................................................... 83

    9.3 Analysis of Environmental Risk Consequences ......................................................... 84

    9.4 Protection and Mitigation Measures for Environmental Risks .................................. 85

    9.5 Emergency Preparedness Plan for Risks .................................................................... 86

    9.6 Summary .................................................................................................................... 91

    10 Analysis of Impacts of Land Acquisition and Relocation................................................... 93

    10.1 Land Acquisition and Its Impacts............................................................................. 93

    10.2 Resettlement Policies and Compensation Standard ................................................. 93

    10.3 Resettlement ............................................................................................................. 94

    10.4 Information Disclosure, Public Participation and Consultation ............................... 96

    10.5 Vulnerable Groups ................................................................................................... 97

    10.6 Institutional Setup .................................................................................................... 98

    10.7 Monitoring and Assessment ..................................................................................... 99

    10.8 Financing and Implementation Plan ......................................................................... 99

    11 Public Consultation and Information Disclosure .............................................................. 101

    11.1 Purpose of Public Consultation and Information Disclosure ................................. 101

    11.2 Methods for Public Consultation ............................................................................ 101

    11.3 Summary of Public Consultation Minutes, Opinions and Feedbacks .................... 106

    11.4 Information Disclosure ........................................................................................... 108

    12 Environmental Management Plan ..................................................................................... 110

    12.1 Purpose of EMP ..................................................................................................... 110

    12.2 Contents of EMP .................................................................................................... 110

  • 12.3 Environmental Management System ..................................................................... 110

    12.4 Environmental Management Agencies .................................................................. 116

    12.5 Environmental Management Training ................................................................... 121

    12.6 Environmental Management Regulations .............................................................. 122

    12.7 Environmental Protection Investment Estimate ..................................................... 123

    12.8 Environmental Reporting System .......................................................................... 139

    12.9 Public Complaint Mechanism ................................................................................ 140

    13 Conclusion of Environmental Impact Assessment ............................................................ 142

    13.1 Compliance with Relevant Policies and Plans ....................................................... 142

    13.2 Conclusion of Evaluation on Current Environmental Quality ............................... 143

    13.3 Conclusion of Environmental Impact Assessment ................................................. 143

    13.4 Mitigation Measures for Environmental Impacts ................................................... 144

    13.5 Conclusion of Environmental Benefit Analysis ..................................................... 146

    Annex A:Safety Management Plan ..................................................................................... 147

    Annex B: Physical Cultural Resources Management Plan .................................................... 165

    Annex C:Regulations on Management of Pipe Stacking During the Construction Period .... 168

    Annex D: Regulations on Management of Construction Camp of Pipeline network

    Component ............................................................................................................................. 170

    Annex E: ECOP Checklist ..................................................................................................... 174

    Annex F:Public Consultation and Information Disclosure ................................................. 193

    Figure 1: Geographical Location of Subprojects ................................................................... 198

    Figure 2: Schematic Diagram of “Building a Gas-fueled Shanxi” Project ............................ 199

    Figure 3:Yangcheng County Gas Network Planning .......................................................... 200

    Figure 4: Geographical Location and Noise Monitoring Points of Yangcheng Gas Utilization

    Sub-project ............................................................................................................................. 201

  • Preface

    World bank financed Shanxi Gas Utilization Project consists of 6 subprojects, and 2 of which

    are CHP subprojects, namey the Xiyang County CHP Subproject and Baode County CHP

    Subproject; 4of which are Urban Gas pipeline network subproject, namely the Changzhi

    County Gas Utilization Subproject, Xiangyuan County Gas Utilization Subproject, Tunliu

    County Gas Utilization Subproject and Qingxu County Gas Utilization Subproject. Shanxi

    Guoxin Energy Development Group Co., Ltd. is the Project loan subject responsible for the

    smooth implementation of the project.in the financing, project construction, staffing and other

    aspects.

    The project entered the implementation phase in 2014. In November 2016, Shanxi Guoxin

    Energy Development Group Co., Ltd. applied for interim adjustment to the bank's inspection

    team, planning to cancel the phase II projects of Changzhi, Xiangyuan, Tunliu pipeline

    network, and increase the Yangcheng county gas utilization project, with Shanxi Guoxin

    Zhonghaosheng Natural Gas Co., Ltd.as the main body of construction.

    The 3 Gas Utilization Subprojects of Changzhi County, Tunliu County and Xiangyuan

    County in the World Bank Financed Shanxi Gas Utilization Project are planning a total of

    $16.5 million for World Bank funds, the Feasibility study approved the design and

    construction of pipeline length of 222.3 kilometers, with the Changzhi County subproject 52.7

    kilometers (25 km in phase I, 27.7 km in phase II), Tunliu County subproject 86.4 kilometers

    (40 km, in phase I, 46.4 km in phase II), Xiangyuan County subproject 83.21 kilometers (44

    km, in phase I, 39.21 km in phase II). All 3 subprojects are planned to implement in two

    phases. At present, the first phase of the world bank project has completed all procurement

    bidding, using world bank loans funds of 62.44 million yuan.In recent years, the economic

    environment and market environment in Shanxi have changed greatly. The decline of coal

    industry, the decrease of resource utilization, the slow development of gas market, and the

    relocation of villages and towns have caused insufficient demand for gas market in Changzhi,

    Xiangyuan and Tunliu counties.For the rational allocation of world bank funds, to avoid

    waste of public resources, Coal Bed Methane (Natural Gas) Co., Ltd proposed to adjusted the

    phase II of the world bank project on a comprehensive basis: Cancel the construction of total

    of 113 kilometers pipeline of 3 subprojects in Changzhi, Xiangyuan and Tunliu, propose the

    Yangcheng County gas utilization project instead.

    At present, natural gas use in Yangcheng County has a good foundation, 60 thousand

    households and more than 200 industrial and commercial users and the public welfare

    institutions use natural gas in the 6 villages and towns of Yangcheng County.

    Yangcheng County gas utilization project will build a new urban medium pressure pipeline

    network 27.79 kilometers, and upgrade some of the arlier constructed gas facilitiese with

    hidden danger. The subproject construction unit is Shanxi Guoxin Zhonghaosheng Natural

    Gas Co., Ltd.

  • See Table 0-1 for the specific implementation and changes of World Bank Financed Shanxi

    Gas Utilization Project.

    The feasibility study report of Yangcheng Gas Utilization project is prepared by CCTEG

    Chongqing Engineering Co., Led. According to the requirements of the domestic

    environmental impact assessment laws and regulations and the world bank safeguard policies,

    Shanxi Guoxin Energy Development Group Co., Ltd. formally commissioned the Institute of

    Coal Chemistry of Chinese Academy of Sciences to carriy out the comprehensive

    environmental impact assessment work of World Bank Financed Shanxi Gas Utilization

    Project - Yangcheng Gas Utilization Subproject.

    The environmental impact assessment of the project includes the collection of relevant

    information on environmental impact assessment, Investigation on the sensitive factors of the

    surrounding environment of selection site of Yangcheng subproject, identification, selection

    and classification of environmental impact factors, public consultation and disclosure,

    environmental impact analysis and environmental protection measures, analysis of regional

    cumulative environmental impacts, Alternatives Analysis, environmental risk analysis and

    mitigation Measures. Meanwhile, the Yang Cheng subproject will be included in the

    environmental management plan of Shanxi Gas Utilization Project.

    Tabel 0-1 Subprojects and Distribution Areas

    No. Item Subproject Name Prefecture-level

    City or County

    Construction Unit

    Origin

    al

    project

    1

    CHP

    Xiyang County

    CHP Subproject

    Xiyang County, Jinzhong

    City

    Baode thermal power branch,

    Shanxi Natural gas Co., Ltd.

    2 Baode County

    CHP Subproject Baode County, Xinzhou City

    Xiyang thermal power

    branch, Shanxi Natural gas Co., Ltd.

    3

    Gas

    Utilization

    Subproject

    Qingxu Gas

    Utilization

    Subproject

    Qingxu County, Taiyuan City Qingxu County Kaitong

    Natural Gas Co., Ltd.

    Chang

    ed

    items

    in the

    origina

    l plan

    4

    Gas

    Utilization

    Subproject

    ChangzhiGas

    Utilization

    Subproject

    Changzhi County, Changzhi

    City Shanxi Coal Bed Methane

    (Natural Gas) Gathering and

    Transportation Co., Ltd. 5

    Tunliu Gas

    Utilization

    Subproject

    Tunliu County, Changzhi

    City

    6

    Xiangyuan Gas

    Utilization

    Subproject

    Xiangyuan County, Changzhi

    City

    Xiangyuan County

    Zhangjiang Coal Bed

    Methane (Natural Gas)

    Gathering and Transportation

    Co., Ltd.

    Additi

    onal

    project

    7

    Yangcheng county

    Gas Utilization

    Subproject

    Yangcheng County, Jincheng

    City

    Shanxi Guoxin

    Zhonghaosheng Natural Gas

    Co., Ltd.

  • 1

    1 Overvierw

    1.1 Project Background and Origin

    Lying in the heart of the Yellow River basin, Shanxi Province neighbors Hebei Province in

    the east with the Taihang Mountain as a natural barrier, faces Shaanxi and Henan Provinces in

    the west and south across the Yellow River, and adjoins Inner Mongolia Autonomous Region

    in the north with the Great Wall as the boundary. It is named for its location in the west of

    Taihang Mountain. The province covers a total area of 156,700km2, with a total population of

    36.108 million people. It has 119 counties in 11 prefecture-level cities, including 85 counties,

    11 county-level cities and 23 municipal districts.

    Shanxi Province’s main energy consumption lies on coal. The coal consumption takes up

    more than 98% of the total consumption. As either a major province of resources or a main

    province of energy consumption and emission that shoulders arduous energy conservation and

    emission reduction tasks, Shanxi Province has an urgent need for changing the energy

    consumption structure dominated by coal, and gradually achieving the diversification of

    energy consumption. To change the energy consumption structure and realize the leap from

    coal to gas, Shanxi vigorously carried out “Building a Gas-fueled Shanxi” project during the

    "12th Five-Year (2011 -2015)" period. As of August 2016, Shanxi province " Building a

    Gas-fueled Shanxi " project completed a total investment of 25.5 billion yuan, the cumulative

    gas supply reached 15.6 billion cubic meters, gasfueled area covering the province's 104

    counties (cities, districts), the gasification rate of 52%, far exceeding the national average.

    Successful implementation of Building a Gas-fueled Shanxi has played an important role to

    complet the state issued emission reduction targets, improve the environmental quality of

    Shanxi Province, and promote regional economic development in the "12th Five-Year"

    period.

    To continue to consolidate the results of the "12th Five-Year " period, the outline of the 13th

    Five-Year Plan (2016-2020) for National Economic and Social Development of Shanxi

    Province put forward that "Spare no efforts to promote green development.Adhere to the basic

    state policy of conserving resources and protecting the environment, adhere to sustainable

    development, and vigorously promote the energy revolution". The Outline also proposed to

    accelerate the construction of gas pipeline network, and strive to achieve full coverage of the

    province's network. By 2020, the total mileage of the provincial pipeline exceeded 15

    thousand kilometers".

    As the main force and leader in “Building a Gas-fueled Shanxi”, Guoxin Energy spares no

    effort in the Project under the context that transformation and comprehensive reform

    experimental areas are established in the province.So far, Guoxin Energy has been listed as

    one of the 12 key provincial-level pilot enterprises by CPC Shaanxi Provincial Committee

    and Shaanxi Provincial Government; the Project of “Building a Gas-fueled Shanxi” also has

    been listed as one of the key 30 provincial-levelprojects.

  • 2

    WB Financed SGUP is an important component of “Building a Gas-fueled Shanxi”. Upon

    completion, the Project will be conducive to improve the current energy consumption

    structure overly dependent on coal in the locality, turn the main energy consumption of

    resident and industrial users into clean energy gas and power, enhance the energy utilization

    efficiency, promote energy conservation and emission reduction, and improve the

    atmospheric environment, public quality of life and health level, and even plays an important

    role in the sustainable economic and social development of Shanxi Province.

    World Bank Financed Shanxi Gas Utilization Project was planning to built 2 CHP

    subprojects,and 4 Gas utilization subprojects. In recent years, the economic environment and

    market environment in Shanxi have changed greatly. The decline of coal industry, the

    decrease of resource utilization, the slow development of gas market, and the relocation of

    villages and towns have caused insufficient demand for gas market in Changzhi, Xiangyuan

    and Tunliu counties. The phase II of the three subprojects, Changzhi, Xiangyuan and Tunliu,

    no longer have the demand for gasification. For the rational allocation of world bank funds, to

    avoid waste of public resources, Guoxin Energy plan to cancel the phase II construction of 3

    subprojects, and propose to implement the Yangcheng County gas utilization project.

    After acceptance of the EIA commission, in November 26, 2016 we conducted a detailed field

    investigation along the pipeline. On the basis of various types of relevant information, such as

    revised feasibility study reports, social evaluation reports and resettlement plans, etc.,

    reference of the comprehensive environmental impact assessment report of World Bank

    Financed Shanxi Gas Utilization Project, and continuous communication with related units,

    finally, completed the preparation of this report.

    1.1.1 Brief Description of the Project

    The implementation uint of Yangcheng Gas Utilization Project(hereinafter referred to as “the

    Yangcheng subproject”) is Shanxi Guoxin Zhonghaosheng Natural Gas Co., Ltd., which is a

    holding subsidiary of Shanxi Guoxin Energy Development Group Co., Limited.

    See Table1-1 for Yangcheng Gas Utilization Project details.

    Table1-1 Description of World Bank Financed Shanxi Gas Utilization Project-Yangcheng

    Gas Utilization Project

    Project Location PIU Capacity Composition

    Yangchen

    g Gas

    Utilizatio

    n Project

    Yangche

    ng

    County,

    Jincheng

    Shanxi

    Guoxin

    Zhonghaoshe

    ng Natural

    Gas Co., Ltd.

    Anyang gas distribution

    station-Dongye town urban

    gas pipeline: Total gas supply

    is 56.2798 million m3/a

    New construction of 20.2 km pipeline

    at 0.8 MPa;8 surge tanks;Road crossing

    26 times, river crossing twice, channel

    crossing once. After completion, it will

    supply gas for residents, commercial

    and some industrial users along the

    pipeline.

  • 3

    Lanhua151# valve wells

    -Yanli county urban gas

    pipeline

    New construction of 7.59 km pipeline

    at 0.8 MPa; 1 surge tanks; Road

    crossing 12 times. After completion, it

    will be the second gas source for

    residents, commercial business, and

    public construction in Yanli township

    Upgrading of existing gas

    facilities in Yangcheng

    To upgrade the membrane meters and

    26800 m pipeline behind the meter for

    the 13411 residents user of existing gas

    project in Yangcheng County.

    1.1.2 Development Objectives of the Project

    The development objectives of the Project are to enhance gas utilization rate and replace coal

    with gas to reduce air pollutants and greenhouse gas emission in Shanxi Province. Meanwhile

    to upgrad the existing gas facilities in Yangcheng County and eliminate the hidden dangers of

    existing gas facilities.

    1.1.3 Overview Of the Project Loan Subject and Construction Units

    1.1.3.1 Overview Of the Project Loan Subject

    Shanxi Guoxin Energy Development Group Co., Ltd. is the Project loan subject responsible

    for the smooth implementation of the project.in the financing, project construction, staffing

    and other aspects. Founded in 1981, Shanxi Provincial Guoxin Energy Development Group

    Co., Ltd. is a large modern state-owned multi-business energy enterprise group with gas and

    Chinese medicinal materials and trade as the dominance, owns the leading right to operate the

    95% of the province's mixed gas resources, and praised as the main force for “Building a

    Gas-fueled Shanxi” by the provincial government.By the end of 2015, the company has total

    assets of 32.885 billion yuan, 16 thousand employees on the job, including 48 subsidiaries of

    which is a listed companies, has 5 big gas company in gas sector: Shanxi gas company,

    Shanxi Natural Gas Co., Ltd., Shanxi compressed gas company, Shanxi Coal Bed Methane

    (Natural Gas) Co., Ltd., Shanxi Coal Bed Methane (Natural Gas) Co., Ltd., Taiyuan gas group

    and Shanxi gas industry group.

    In recent years,Guoxin Energy Corp adhere to the "five service" concept as: service of

    low carbon productivity, low carbon consumption, new industrial clusters, the construction of

    ecological civilization and the construction of new urbanization, vigorously implement the

    Building a gas fuled Shanxi strategy, has built up long distance pipeline 6100 km. So far,

    Guoxin Energy Group has built up long-distance transmission pipeline 3,004km, Urban

    pipeline 5220 km, total length of over 10 thousand km, 163 CNG/LNG gas stations, 8 gas

    peak regualation facilities, 1 gas cogeneration project and 1 carbon four deep processing

    project, the annual pipe transmission capacity of more than 28 billion cubic meters, Gas fule

  • 4

    covers18 million people of 5.5 million households in 104 counties (cities, districts) in the

    province, 2200 gas supply towns, 520 industrial users, 10000 commercial welfare users, 120

    thousand CNG/LNG vehicles, the gasification rate in the province reaches 52%.

    1.1.3.2 Overview of Construction Units

    The construction unit of the prposed new Yangcheng County Gas utilization Project is Shanxi

    Guoxin Zhonghaosheng Natural Gas Co., Ltd.. which is registered In January 2013 in

    Yangcheng County Administration for Industry and commerce registration, the registered

    capital of 60 million yuan, is jointly funded by the Jincheng ZhonghaoSheng Industry and

    Trade Co., Ltd.and Shanxi province Guoxin Energy Group Co., Ltd.. Among them, Shanxi

    province Guoxin Energy Group Co., Ltd. invested 30 million 600 thousand yuan, holds 51%

    of the equity, Jincheng ZhonghaoSheng Industry and Trade Co., Ltd. invested 29 million 400

    thousand yuan, holding 49% of the shares. ZhonghaoSheng Company has 3 wholly-owned

    subsidiaries, Yangcheng County Senzhong Gas Co., Ltd., Yangcheng County, Jinneng Energy

    Co., Ltd. and Yangcheng County Zhongtai Gas Co., Ltd. The company's main business is the

    investment, construction, operation and management of natural gas stations and natural gas

    pipeline network in the Yangcheng County area. As of September 2016, Zhonghaosheng

    company has invested nearly 300 million yuan, with the construction and operation of the

    urban medium and low pressure grade 2 pipe network of more than 1000 km. Pipeline

    network covering 120 villages and residential areas of 6 townships as Fengcheng, Tingdian,

    Xihe, Yan Li, Gu Long, Beiliu, serving more than 60,000 households of all types of users.

    The compant constructed more than 20 kilometers of gas supply line of Tingdian-Anyang

    Industrial Park. 1 Daning CNG compression base station is under construction and 1 Daning

    LNG/CNG combined stationi into operation soon. The Tingdian gas distribution (gathering,

    transportation, pressurization) station, and Qinshui-Tingdian Gas source filling pipe are under

    construction. As the main unit of "Gas fuled Yangcheng" project, the company has

    accumulated rich experience in project construction.。

    1.2 Objectives of Environmental Impact Assessment

    (1) Through environmental impact assessment on the proposed project, we have learned about

    the current natural and social environmental quality in the plant area and areas along the gas

    pipeline network, determined the regional impact scope and impact degree of project

    implementation, and demonstrated the rationality of the site and pipeline route selection plans

    from the perspective of environmental protection, so as to provide decision-making basis for

    the implementation of the Project.

    (2) An analytic demonstration is made on the feasibility and rationality of engineering

    contents proposed in the engineering design documents, in order to propose environmental

    protection measure plans and suggestions for mitigating and avoiding environmental harms.

    Meanwhile, considerations are given to strengthen or improve the plans or suggestions for

    positive environmental impacts of the Project, and provide feedback and guidance to

  • 5

    engineering design, so as to realize the synchronic development of the project construction

    and environmental protection measures, minimize the negative environmental impacts, and

    promote the harmonious development of the project construction in terms of economic benefit,

    environmental benefit and social benefit.

    (3) Efforts are made to assess positive and negative impacts arising from the project

    implementation, and encourage residents living along the pipeline to take an active part in the

    project demonstration by means of public investigation, public notification on journals and

    websites, publicity announcement, telephone consulting and symposium for public

    participation, encourage residents living along the pipeline to take an active part in the project

    demonstration, so as to make the demonstration process and assessment conclusion more

    democratic and scientific, and play a positive role in publicizing environmental protection

    laws and regulations and enhancing the public awareness in environmental protection.

    1.3 Screening of Environmental Impact Assessment Factors

    1.3.1 Identification of Environmental Impact Factors

    The project is relatively simple. Their negative environmental impacts are mainly

    concentrated in the construction stage. Because there are a smaller number of workers on the

    same site in the same period, the construction camp is not required. In the construction stage,

    their impacts include construction dust, materials transportation and storage, pipeline welding,

    tail gas of oil-fueled machines, and borrowed and discarded earth. The components have

    slight negative impacts on ambient air, land vegetation and nearby residents in the

    construction stage. Upon completion of the construction stage, these negative impacts will

    disappear. Despite such potential risks as explosion and fire disaster in the operation stage, the

    subprojects would still have positive environmental impacts as a result of replacing coal with

    gas. According to above analysis, a recognition matrix is developed for environmental

    impacts of the project. See Table 1-2 for details, and Table 1-3 shows the indentification

    results of environmental impact factors of the project

    Table 1-2 Assessment of Environmental Impact Factors of the Project in Different Stages

    Engineering Features

    Impact Factors

    The Construction Stage The Operation Stage

    Construct

    ion

    Site

    Cleaning

    Construct

    ion

    Site

    Cleaning

    Construct

    ion

    Site

    Cleaning

    Nat

    ura

    l

    En

    vir

    onm

    ent Ambient Air -○ -○ -○ -☆

    Surface Water -○

    Groundwater

    Acoustic

    Environment -☆ -○ -☆

    -☆

    Ec

    ol

    og ic al

    En

    vir on m en t

    Farm Crops -○ -○

  • 6

    Soil -○ -○

    Land

    Vegetation -○

    Land Use -○ -○ -○

    So

    cial

    En

    vir

    on

    men

    t

    Economic

    Development +☆ +○

    Expansion of

    Employment +○ +○ +○

    Occupational

    Health -○ -○

    -★

    Quality of

    Life

    -○ -☆

    Environmenta

    l Landscape -☆ -☆

    Note: + positive impact, - negative impact; ★ significant impacxt, ☆ moderate impact, ○ slight impact

    Table1-3 Indentification Results of Environmental Impact Factors of the Project

    Behaviors with

    Potential Impacts

    on Environmental

    Resources And

    Values

    Potential Damages

    or Benefits to

    Natural or Social

    Environment

    Basis for Impact

    Analysis

    Typical Mitigation

    Measures

    Identification

    of Potential

    Impact

    Factors

    1. Potential Environmental Problems of Components in the Construction Stage

    Land Occupation

    Caused by

    Temporary

    Storage of

    Building

    Materials

    Impacts on land use

    and production

    Land occupation

    area, purpose,

    location

    Supervise construction

    activities √

    Construction

    camp renting

    camp wastewater,

    solid waste, impacts

    on health and

    surrounding

    environment

    location, social

    impact,

    environmental

    impact

    Stipulate obligations of

    contractors

    Employment of

    Constructors

    Employment of

    local labor force

    could bring direct

    benefits to local

    residents, there is no

    cultural difference

    Predicted number of

    employees

    Stipulate obligations of

    contractors to Ensure

    the health and safety of

    constructors

    Elimination of

    Vegetation

    Damage to forest

    land and arable land

    Damaged vegetation

    type/area, economic

    value

    Elimination, Restoration

    and compensation, methods

    Earthworks Soil erosion and

    nutrient loss

    Location of

    excavation,

    backfilling and

    temporarily

    earthwork storage,

    natural water

    discharge mode

    Obligations of

    contractors

  • 7

    Temporary land

    occupation and

    damage to water

    conservancy

    facilities

    Location, scope,

    purpose of land

    occupation

    Contractors have the

    obligation to submit a

    “management plan for

    temporary land

    occupation and water

    conservancy facilities”

    Emission of

    particulate matters

    such as dust

    Location and

    distance of

    residential area,

    wind direction

    Form for engineering

    construction progress

    Obligations of

    contractors (watering in

    windy dusty weather)

    Transportation of

    Construction

    Materials and

    Engineering

    Equipment

    Particulate matters

    and noise

    Material volume,

    freight volume

    Prohibit unconcealed

    transportation √

    Use of

    Construction

    Equipment

    Impacts of noise and

    waste gas on nearby

    residents and

    physical cultural

    resources

    Required

    construction

    equipment,

    construction work

    plan

    Distance to the

    nearest residential

    area and its

    population density

    Wind direction and

    wind velocity

    Noise and waste gas

    emission standards

    Occupational health

    Prohibit construction

    operation of large

    equipment at night

    Inform nearby residents

    of the construction

    operation time

    Select low-noise

    equipment

    Obligations of

    contractors: execution

    of EMP

    Monitoring

    Generation of

    Solid Waste

    Pollution to air, soil

    and rivers

    Type and number of

    wastes: domestic

    waste, construction

    wastes, discarded

    earth

    Waste management and

    disposal plan

    Obligations of

    contractors: execution

    of EMP

    Project

    Completion

    Failure in

    recovering the

    construction site

    Location and area of

    temporary land

    occupation

    Equipment that is

    possibly used and

    wastes generated

    Contractors have the

    obligation to submit a

    “site recovery plan after

    completion”

    The recover plan shall

    include the recovery

    costs

    2. Potential Environmental Problems in the Components in the Operation Stage

    Gas Supply

    Substitute coal with

    gas to reduce

    emission of waste

    gas pollutants

    Reduce emission of

    pollutants —— √

    Upgrading of

    existing gas

    facilities

    Eliminate potential

    safety hazard and

    improve gas safety

    —— —— √

    1.3.2 Screening of Environmental Impact Factors

  • 8

    The work is based on environmental impact factors indentified in pollution source analysis for

    the project, environmental features of areas where the projects are located, relevant national

    and local environmental protection standards, control indicators listed in the regulations, and

    relevant World Bank requirements. See Table 1-4 for the assessment and screening results of

    the project.

    Table 1-4 Screenig Results of Assessment Factors of the Project

    Environmental Elements Assessment Factors

    Ambient Air Status Quo Assessment Normal pollutant: SO2, NO2, PM10

    Regional Surface

    Water

    Environment

    Status Quo Assessment CODCr, BOD5, NH3-N, petroleum

    Noise Ambient Noise LAeq

    Construction Noise LAeq

    Ecology Impact Analysis Vegetation, land use, water and soil erosion

    Solid Waste Impact Analysis of Solid Waste

    Disposal

    Domestic waste, borrowed and discarded earth,

    slurry, waste building materials, waste pipes and

    waste membrane meters

    Environmental

    Risk

    The operation stage: fire

    disaster, explosion Impact analysis of life, property safety

    Social Impact

    The construction stage: traffic

    congestion, stores with street

    frontage, schools, residents’

    quality of life, impact of land

    acquisition and relocation

    The operation stage: payment

    capacity, gender issues

    Impact analysis

    1.4 Assessment Scope

    This project is Yangcheng County gas utilization project. It includes the construction of two

    feeder lines and the upgrading of existing gas facilities. The evaluation scope is as follows:

    (1) Anyang gas distribution station-Dongye town urban gas pipeline: The total gas supply is

    56.2798 million m3/a, with 20.2 km pipeline at 0.8 MPa;8 surge tanks;road crossing 26 times,

    river crossing twice, channel crossing once. After completion, it will supply gas for residents,

    commercial and some industrial users along the pipeline.

    (2)Lanhua151# valve wells -Yanli county urban gas pipeline:The total gas supply is 2.62

    million m3/a, with 7.59 km pipeline at 0.8 MPa;1 surge tank ;road crossing 12 times. After

    completion, it will be the second gas source for residents and commercials in Yanli Township.

    (3)Upgrading of existing gas facilities in Yangcheng:To upgrade the membrane meters and

    26800 m pipeline behind the meter for the 13411 residents user of existing gas project in

    Yangcheng County.

  • 9

    In summary, pursuant to the impact scope, environmental elements, environmental

    protection objectives, the assessment scope is determined separately for the construction stage

    and the operation stage. See Table 1-5 for details.

    Table 1-5 Environmental Impact Assessment Scope of the Project

    Works

    Assessment Scope

    Stage Ambient Air

    Acoustic

    Environme

    nt,

    Vibration

    Water

    Environm

    ent

    Ecological

    Environment

    Physical

    Cultural

    Resources

    Social

    Environment

    Gas

    Supply

    Pipeline

    Constr

    uction

    Area within

    100m at both

    sides of the

    pipeline

    Area

    within

    100m at

    both sides

    of the

    pipeline

    Pass

    through

    partial

    water

    body

    Wasteland

    within 6m, dry

    land within

    4m, forest land

    within 3m and

    road within

    0.5m at both

    sides of the

    pipeline

    As per the

    protection

    requirements of

    Xingshan

    temple, the

    assessment

    scope is limited

    to the

    construction

    area where

    the gas pipeline

    through the

    Xingshan

    temple

    Affected urban

    area along the

    pipeline

    Operat

    ion None None None None

    None

    Surge

    Tank

    Constr

    uction

    Area within

    100m around

    surge tanks

    Area

    within 50m

    around

    surge tanks

    None

    Area within

    100m around

    surge tanks

    None

    Users within the

    gas supply scope

    Operat

    ion None

    Area

    within 50m

    around

    surge tanks

    None None None

    Upgradi

    ng of

    existing

    gas

    facilities

    Constr

    uction None

    Residents

    around

    membrane

    meters

    None None None Residents around

    membrane meters

    upgrading area Operat

    ion None None None None None

    1.5 Assessment Period

    According to the implementation progress of the Project, the assessment period is divided into

    the construction stage and the operation stage.

    1.6 Assessment Rating

  • 10

    According to the environmental impact assessment outline of the World Bank Financed

    Shanxi Gas Utilization Project(6 components), as well as the minutes of WB’s safety

    guarantee conference in the project concept stage, full assessment will be performed for the

    two CHP subprojects under the Project, whereas partial assessment will be performed for the

    four gas pipeline network subprojects. The project is a gas pipeline network subproject, and

    partial assessment performed.

    1.7 Assessment Methods

    (1) The model forecasting method is adopted for the atmospheric environmental impact

    assessment;

    (2) The analytical method is adopted for the water environmental impact assessment;

    (3) The model forecasting method is adopted for the acoustic environmental impact

    assessment;

    (4) The combined method of investigation and analogy analysis is adopted for the ecological

    environmental impact assessment;

    (5) The investigation and analysis method is adopted for the social environment and public

    consultation.

    1.8 Key Points of Assessment

    (1) Impacts of construction activities on nearby sensitive targets;

    (2) Disposal of construction waste and domestic waste in the construction stage;

    (3) Analysis of social environment impacts;

    (4) Alternatives Analysis;

    (5) Public consultation and information disclosure;

    (6) Risk analysis in the pipeline network operation stage (fire and explosion risks);

    (7) Impacts on public facilities;

    (8) Environmental management plan of the Project;

    (9) Due diligence for industrial users.

    1.9 Assessment Procedures

    Assessment Procedures see Figure 1-1

  • 11

    1.10 Environmental Protection Objectives

    According to the characteristics investigation of the surrounding environment along the

    pipeline, The project, Anyang gas distribution station-Dongye town urban gas pipeline will

    pass through Xingshan Temple. According to the investigation, it is not in the list of cultural

    relics protection in Yangcheng County. It is a local folk custom building built by the local

    villagers with raising funds.

    As the Project does not involve such sensitive targets as water resource protection area,

    natural protection area and scenic area, environmental protection targets of this assessment are

    residential areas along the pipelines, Xingshan Temple and the river crossed by the pipeline,

    etc.. See Table 1-6 for details.

  • 12

    Figure 1-1 Environmental Assessment Procedures of WB Financed SGUP

    Yangcheng Gas Utilization Subproject

    EA agency starts environmental assessment.

    Field visit

    November 2016 - December 2017

    Public participation Data collection

    Compilation of outline and

    report

    Public participation

    Data collection

    Project implementation unit and the project design unit provide the feasibility

    study report, relevant assessments and other materials.

    Completion of the report, EMP and Environmental

    Executive Summary

    Early December 2016 – February2017

    WB review

    Submission of the report to WB

    June 2017

    Translation of the

    report

    Modification

  • 13

    Table1-6 Environmental Protection Targets of Yangcheng Gas Utilization Project

    Item Sensitive

    Factor No. Period

    Protection

    Target Direction

    Distance

    to the

    Plant

    Boundary

    (m)

    Remarks A

    nyan

    g g

    as d

    istr

    ibuti

    on s

    tati

    on

    -Dongye

    tow

    n u

    rban

    gas

    pip

    elin

    e

    Ambient

    Air,

    Noise

    1

    Co

    nst

    ruct

    ion

    Hongshang

    Village S 5 Category 1 Standard in

    Acoustic Environment

    Quality Standards

    (GB3096-2008) is executed for the village

    area.

    Category 2 Standard in

    Acoustic Environment

    Quality Standards

    (GB3096-2008) is executed for the township

    areas.

    Category 4a Standard in

    Acoustic Environment

    Quality Standards

    (GB3096-2008) is executed for areas within

    30m at both sides of roads

    2 Laoquan

    Village E 84

    3 Qia Village W 7

    4 Baisang W 160

    5 Shangbaisang W 6

    6 Longzhang

    Village SW 60

    7 Shijiu

    Village W 24

    8 Beiyao

    Village N 68

    9 Nanyao

    Village S 49

    10 Zhaojia

    Village N 41

    11 Jianping

    Village S 138

    12 Dongye SE 17

    Cultural

    Relic 1

    Construction

    Xingshan

    Temple S 25

    Xingshan Temple is the

    local folk custom building

    built by the local villagers

    with raising funds.

    Surface

    Water 1

    Construction

    River Crosing

    Category IV Standard in

    Surface Water

    Environment Quality

    Standards (GB3838-2002)

    Ground

    water 1

    Construction

    Drinking

    water well

    Category III water quality

    standard in Groundwater

    Quality Standards

    (GB/T14848-93)

    Trans-

    boundary

    Works

    1

    Construction Provincial Rd S229(3 places),

    XiMang Road(1place),

    YangDong Road(4places),other

    roads(18places) Obtain approval from relevant management

    department

    2

    Construction

    Huoze River(1 place)

    Xiajie River(1 place)

    Ecology Along the

    pipeline

    Crops,

    vegetation

    Reduce the impact

    on crops

    Lanhua151#

    valve well

    Ambient

    Air, 1 Construction

    Huwuagou

    Village W 110

    Category 1 Standard in

    Acoustic Environment

  • 14

    -Yanli

    county

    urban gas

    pipeline

    Noise 2

    Guaipo

    Village E 105

    Quality Standards

    (GB3096-2008) is executed for the village

    area.

    Category 2 Standard in

    Acoustic Environment

    Quality Standards

    (GB3096-2008) is executed for the township

    areas.

    Category 4a Standard in

    Acoustic Environment

    Quality Standards

    (GB3096-2008) is executed for areas within

    30m at both sides of roads

    3 Xianyi

    Village W 193

    4 Shangqingchi

    Village NE 93

    5 Dongpo

    Village W 118

    6 Shangli

    Village N 58

    7

    Zhong

    Zhuang

    S 54

    Ground

    water 1

    Construction

    Drinking

    water source

    Category III water quality

    standard in Groundwater

    Quality Standards

    (GB/T14848-93)

    Trans-

    boundary

    Works

    1

    Construction Chongli Avenue(1 place

    Other road(11 places)

    Obtain approval from

    relevant management

    department

    Ecology Along the

    pipeline

    Crops,

    vegetation

    Reduce the impact

    on crops

  • 15

    2 Environmental Policies, Framework of Laws and Regulations

    and Basis for EA Preparation

    2.1 Environmental Protection Laws and Regulations

    1) Environmental Protection Law of the People’s Republic of China (December 26,

    1989);

    2) Environmental Impact Assessment Law of the People’s Republic of China (Jan 1,

    2016);

    3) Law of the People’s Republic of China on Atmospheric Pollution Prevention and

    Control (April 29, 2000);

    4) Law of the People’s Republic of China on Prevention and Control of Ambient

    Noise Pollution (October 29, 1996);

    5) Law of the People’s Republic of China on Water Pollution Prevention and

    Control (February 28, 2008);

    6) Law of the People’s Republic of China on Prevention and Control of

    Environmental Pollution Caused by Solid Waste (April 24, 2015);

    7) Law of the People’s Republic of China on Soil and Water Conservation

    (December 25, 2010);

    8) Law of the People’s Republic of China on Protection of Cultural Relics

    (Amendment adopted and implemented from December 29, 2007);

    9) Law of the People’s Republic of China on Promoting Clean Production (2012

    Amendment, came into force from July 1, 2012);

    10) Law of the People’s Republic of China on Energy Conservation (April 1, 2008);

    11) Renewable Energy Law of the People’s Republic of China (February 28, 2005);

    12) Regulations on Environmental Protection Administration of Construction

    Projects (November 29, 1998, No. 253 Decree of the State Council);

    13) Decisions of the State Council for Implementing the Scientific Development

    Paradigm and Strengthening Environmental Protection (Guo Fa [2005] No.39,

    December 3, 2005);

  • 16

    14) Interim Measures of the State Environmental Protection Administration for the

    Public Consultation and Information Disclosure of Environmental Impact Assessment

    (Huan Fa [2006] No. 28, implemented from March 18, 2006);

    15) Guiding Catalogue for Industrial Restructuring (2011) (amended in 2013);

    16) Notice on Strengthening Environmental Impact Assessment Management and

    Preventing Environmental Risks (Huan Fa [2005] No. 152, December 16, 2005);

    17) Opinions on Improving Industrial Water Conservation (No.1015 [2000] of the

    State Economic and Trade Commission, October 25, 2000);

    18) Law of the People’s Republic of China on Protection of Cultural Relics (October

    28, 2002).

    2.2 Local Regulations

    1) Regulations of Shanxi Province on Environmental Protection (July 30, 1997);

    2) Regulations of Shanxi Province on the Prevention and Control of Atmospheric

    Pollution (September 3, 1996);

    3) Subproject of Shanxi Province on Regionalization of Surface Water Environment

    Management (Jin Huan Fa [2005] No. 208, May 16, 2005);

    4) Notice of the General Office of the People’s Government of Shanxi Province on

    Forwarding the Guiding Catalogue of Shanxi Development and Reform Commission

    for Industrial Investment (2006 Version) (Jin Zheng Ban Fa [2006] No. 1, January 6,

    2006);

    5) Notice on Printing the Interim Provisions of Shanxi Province on Strengthening the

    Environment Management of Development Projects (Jin Huan Fa [2011] No. 160, July

    6, 2011);

    6) Implementation Opinions of the General Office of the People’s Government of Shanxi

    Province on Accelerating the Comprehensive Treatment and Utilization of Coal-mine

    Gas (Jin Zheng Ban Fa [2007] No. 125, October 2007);

    2.3 Environmental Protection Technical Specifications

    1) Technical Guidelines on EIA of Construction project: General Prgramme (HJ

    2.1-2016)

    2) Technical Guidelines on EIA: Atmospheric Environment (HJ 2.2- 2008);

  • 17

    3) Technical Guidelines on EIA: Surface Water Environment (HJ/T2.3-93);

    4) Technical Guidelines on EIA: Acoustic Environment (HJ2.4-2009);

    5) Technical Guidelines on Assessment of Environmental Risks of Development Projects

    (HJ/T 169-2004);

    6) Technical Guidelines on EIA: Ecological Impacts (HJ19-2011);

    2.4 World Bank Safeguard Policies and EHS of World Bank Group

    (1)World Bank Safeguard Policies

    Anyang gas distribution station-Dongye town urban gas pipeline will pass through Xingshan

    Temple. It is a local folk custom building built by the local villagers, and no classification of

    cultural relics protection was carried out.

    According to the analysis of the sensitivity, environmental impact extent of the project, this

    subproject is an integral part of the Shanxi Gas Utilization Project which has been classified

    into Category A, hence the environmental impact assessment of this subproject will be carried

    out in accordance with the requirement of Category A. According to the analysis of the

    correlation between the Project and World Bank safeguard policy documents, policy

    documents applicable to the Project include OP4.01 (Environmental Impact Assessment),

    OP4.11 (Physical Cultural Resources) and OP4.12 (Involuntary Resettlement); please refer to

    Table 2-1 for details.

    Table 2-1 Analysis of Correlation between the Project and World Bank Safeguard Policy

    Documents

    No. World Bank Safeguard

    Policy Documents

    Correlated to

    the Project or

    not

    Remarks

    1

    OP4.01 Environmental

    Assessment Correlated

    The project construction would have some impacts on

    the surrounding environment, thus environmental

    assessment needs to be conducted. Yangcheng The

    project is to replace the 3 components of Changzhi,

    Xiangyuan, and Tunliu in the World bank finced

    SGUP(6 components), as the SGUP has been

    classified as a Category A project, the project will be

    assesed as Category A.

    2

    OP4.04 Natural

    Habitats Uncorrelated

    No natural reserves in the project areas. The Gas

    pipeline network cuts across some rivers, which have

    been listed as environmentally sensitive targets to

    ensure their safety during the flooding season. In most

    months of a year, there is no water in these rivers and

    relevant local authorities have confirmed that there are

    no rare or precious specicies in the rivers.

    3 OP4.09 Pest

    Management Uncorrelated

    The Project does not involve use or storage of

    pesticides

  • 18

    4 OP4.10 Indigenous

    Peoples Uncorrelated No indigenous peoples in the project areas.

    5

    OP4.11 Physical

    Cultural Resources Correlated

    The project, Anyang gas distribution station-Dongye

    town urban gas pipeline will pass through Xingshan

    Temple. It is a local folk custom building built by the

    local villagers with raising funds, not in the list of

    cultural relics protection.

    6 OP4.12 Involuntary

    Resettlement Correlated The Project does not involve land acquisition.

    7 OP4.36 Forestry Uncorrelated

    The Project does not involve forestation or

    commercial logging. Woods land where the Gas

    pipeline network Component cuts across is small plots

    of plantations scattering along the pipeline.

    8 OP4.37 Dam Safety Uncorrelated The Project does not involve dams.

    9 OP7.60 Projects in

    Disputed Areas Uncorrelated The Project is not located in any disputed area.

    10 OP7.50 International

    Waterways Uncorrelated The Project does not involve international waterways

    (2)EHS of World Bank Group

    International Finance Corporation: Environment, Health and Safety Guidelines (General

    EHS Guidelines), including atmospheric emissions and ambient air quality, energy

    conservation, wastewater and environmental water quality, waste management, noise;

    occupational health and safety, power transmission and Transformation.

    2.5 Assessment Standards (Compared with EHS Standards)

    For the purpose of this assessment, comparative analysis would be carried out according to

    applicable national standards, International Finance Corporation’s Environment, Health and

    Safety Guidelines (General EHS Guidelines)

    2.5.1 Environmental Quality Standards

    2.5.1.1 Ambient Air

    As China consumes large amount of coal, the ambient air quality standards shall be Chinese

    standards conforming to China’s national conditions. All 6 subprojects are located in zones

    mixed with rural areas, industrial districts and commercial districts, the ambient air functions

    of which belong to Category II areas, thus Category II standard in Ambient Air Quality

    Standards (GB3095-2012) shall be enforced, as detailed in Table 2-1.

    Table 2-1 Assessment Standards for Ambient Air Quality (Unit: ug/Nm3)

    Item Average time Ambient Air Quality Standards (GB3095-2012)

    Category II Standard (ug/m3)

    TSP Annual average 200

  • 19

    24-hour average 300

    1-hour average --

    PM10

    Annual average 70

    24-hour average 150

    1-hour average --

    PM2.5

    Annual average 35

    24-hour average 75

    1-hour average --

    SO2

    Annual average 60

    24-hour average 150

    1-hour average 500

    NO2

    Annual average 40

    24-hour average 80

    1-hour average 200

    NOx

    Annual average 50

    24-hour average 100

    1-hour average 250

    2.5.1.2 Surface Water

    Category IV Standard in Surface Water Environment Quality Standards (GB3838-2002)

    would be enforced for the project, see details in Table 2-3.

    Table 2-3 Assessment Standards for Surface Water

    No. Item Unit Standard Value Surface Water Standard

    1 CODCr mg/L ≤30 Category IV Standard GB3838-2002

    2 BOD5 mg/L ≤6 Category IV Standard GB3838-2002

    3 NH3-N mg/L ≤1.5 Category IV Standard GB3838-2002

    4 pH —— 6-9 Category IV Standard GB3838-2002

    5 Petroleum mg/L ≤0.5 Category IV Standard GB3838-2002

    2.5.1.3 Acoustic Environment Standards

    Category II Standard of Environmental Acoustic Quality Standards (GB3096-2008)

    would be enforced for noise at construction site boundary; Category I Standard of

    Environmental Acoustic Quality Standards (GB3096-2008) would be enforced for noise in

    sensitive spots; Category 4a Standard in Environmental Acoustic Quality Standards

    (GB3096-2008) would be enforced for traffic noise. Refer to Table 2-4 for standard values

    and noise level standards of EHS.

    As shown in the table, domestic noise level standards for residence, office, culture and

    education are the same as those in EHS enforced by World Bank; domestic noise level

    standards for industrial and commercial facilities are stricter than those in EHS enforced by

    World Bank; but there is no provision in EHS as to zones mixed with commercial and

    residential areas. Therefore, appropriate domestic standards would be enforced for the Project.

  • 20

    Table 2-4 Assessment Standards for Acoustic Environment (Unit: [dB(A)])

    Acoustic Environment

    Environmental Acoustic

    Quality Standards

    (GB3096-2008)

    Noise Level Standards of EHS

    Category Daytime Night Time Daytime

    (07:00~22:00)

    Night Time

    (22:00~07:00)

    Area along

    pipeline(zones mixed

    with commercial and

    residential)

    2 60 50 70 70

    Villages and schools at

    sensitive spots 1 55 45 55* 45

    Arterial traffic 4a 70 55 -- --

    Note: *--Residence, office, culture and education facilities.

    2.5.2 Pollutant Discharge Standards

    This project is a pipeline project, there is no waste gas and solid waste discharge during the

    operation stage.

    During the construction period, the Emission Standard of Ambient Noise at Construction Site

    Boundary (GB12523-2011) would be enforced for noise; for standard limit values, refer to

    Table 2-5.

    Table 2-5 Emission Standards for Ambient Noise at Construction Site Boundary

    Time Interval Daytime [dB(A) ] Night Time [dB(A) ] Scope of Application

    Standard value 75 55 All items

    2.6 Urban Planning, Atmospheric Pollution Regulation Planning and

    Environmental Functional District Planning Documents

    1) The 13th Five-Year Plan for National Environmental Protection (December 2011);

    2) Master Plan of Yancheng County, Jincheng City of Shanxi Province (2010-2030);

    3) Comprehensive Working Program of Shanxi Province for Energy Conservation and

    Emission Reduction in the 13th Five-Year Plan Period;

    4) Report of Yangcheng County on Ecological Economic Zoning;

  • 21

    5) Outline of the 13th Five-Year Plan (2016-2020) for National Economic and Social

    Development of Shanxi Province;

    6) The 13th Five-Year Plan for Environmental Protection of Shanxi Province (Jin Zheng

    Fa [2016] No. 66);

    7) Development Planning of Shanxi Province for the Industrial Integration of “Four

    Types of Gas” (November 2, 2009);

    8) Several Opinions of the General Office of the People’s Government of Shanxi

    Province on Accelerating and Promoting the Industrial Integration of “Four Types of

    Gas” in the Province (Jin Zheng Ban Fa [2010] No. 72);

    9) Outline of Guoxin Energy on Gas Industrial Development;

    2.7 Analysis of Conformity and Consistency of the Proposed Project with

    Relevant Regional Policies and Plans

    2.7.1 Plan of Shanxi Province on Emission Reduction of Atmospheric

    Pollutants

    According to the statistic of the13th Five-Year Plan for Environmental Protection of

    Shanxi Province. During the whole "12th Five-Year" period, Shanxi vigorously promoted the

    comprehensive treatment of environmental pollution. By the end of 12th Five-Year, the

    average annual concentration of ambient fine particulate matter (PM2.5) decreased by 27.3%

    compared with 2013, the average number of ambient air quality in 11 cities with districts

    increased by 70 days on average in 2013. Total emissions reduction of sulfur dioxide,

    nitrogen oxides, soot and industrial dust were 195.8%, 180.1%, 157.7% and 162.1%,

    respectively, of the reduction targets of 12th Five-Year plan, overall excess national and

    provincial emission reduction tasks, the overall ambient air quality has been improved.

    During 13th Five-Year, the environmental protection targets for air:in the "Shanxi

    provincial environmental protection planning" is, by 2020, the quality air environment in

    Shanxi will be phased improved, and the total amount of major pollutants discharged will

    complete national and provincial emission reduction tasks, and the environmental risks will

    be effectively controlled. The average annual concentration of PM2.5 in 11 municipalities

    with districts dropped by20%. The proportion of urban air quality in good days reached

    75.4%. The main pollutants SO2, NOx will complete the state assigned total emission

    reduction task in "13th Five-Year". Smoke and dust emissions decreased by 10% compared

    with 2015. The pollutant emission reduction target of Shanxi Province has been decomposed

    to the prefecture level, and all pollutant emission reduction projects are being gradually

    promoted and implemented. After the implementation of the Project,the utilization of coal of

    the residents, industrials, commercials and public buildings along the pipeline will be replaced,

  • 22

    and the emission of atmospheric pollutants will be reduced in Shanxi Province.

    Implementation of the Project conforms to the atmospheric pollutant emission reduction plan

    of Shanxi Province.

    2.7.2 Analysis of Conformity and Consistency of the project with Relevant

    Regional Policies and Plans

    According to the National Energy Administration's "energy development strategy action

    plan" (2014-2020 years), in these six years, the energy sector will vigorously develop green

    low-carbon strategy, gradually reduce the proportion of coal consumption, increase the

    proportion of natural gas consumption. By 2020, the proportion of natural gas will reach more

    than 10%, and the proportion of coal consumption should be less than 62%. Implementation

    of gasification urban livelihood projects. New natural gas should be given priority to protect

    residents' living and replace the scattered coal use, and organize the implementation of the

    clean utilization plan for urban residents. By 2020, urban residents had access to natural gas.

    The overall plan of the county town of Yangcheng County also puts forward the development

    target of adopting clean energy and increasing gas ratio.

    The project is Yangcheng Gas Utilization Project,includes construction of gas pipelines

    and upgrading of existing gas facilities.The construction of the project will help improve the

    network system in Yangcheng County, increase the capacity of gas supply and expand the

    scope of gas supply.After the completion of the project, it will help reduce the amount of coal

    consumed in the region, improve the environment, reduce regional air pollution, and the

    project complies with the relevant planning.

  • 23

    3 Project Description

    3.1 Contents

    3.1.1 Basic Information

    The main contents of this project include two natural gas pipeline networks(Anyang gas

    distribution station-Dongye town urban gas pipeline and Lanhua151# valve well -Yanli

    county urban gas pipeline)and the construction of relevant facilities, the renovation of the

    residents gas meter and the pipe behind the meter.

    Anyang gas distribution station-Dongye town urban gas pipeline, starts from the Anyang gas

    distribution station on the southwest side of the Anyang village of Yangcheng Town, and the

    pipeline is laid to the South after connected to the gas station, it goes by the west side of

    Hongshang Village, through the industrial park, after setting valve wells and regional

    regulator cabinet in Hongshang village, it goes through Laoquan village to Baisang, setting

    setting valve wells and regional regulator cabinet then goes by the west side of Zhangzhuang

    to Shangbaisang, setting valve wells and regional regulator cabinet at Shangbaisang, then it

    goes southward, setting valve wells and regional regulator cabinet in the north of Longzhang

    Village, then set truncated split valve well and regional pressure regulating cabinet to the

    north of Shijiu Village, it goes southward, setting valve wells and regional regulator cabinet in

    the west of Nanyao village, goes through the the middle land of the village, setting valve well

    and regional pressure regulating cabinet in the north of Jianping Village, then goes across Jian

    river, reaches Dongye Township, setting valve wells and regional regulator cabinet to the west

    of the end point Dongye Township.

    Lanhua151# valve well -Yanli county urban gas pipeline connect the pressure lever exitt of

    the Lanhua151# gas well then lays to the southeast, it goes by Huwagua Village to Xianyi

    Village, then cross the road after Shangqingchi Village to the southeast side of Yanli

    township. It will provide gas supply for the resident and commercial users in Yanli Township.

    The gas pipeline planning see Figure 4.

    The location, scale and main contents of the project are shown in Table 3-1. The route of the

    project is shown in figure 4.

    3.1.2 Investment and Funding Source

    The total investment of the Project is approximately RMB 65.2277 milion yuan, and the fund

    consists of self-owned funds of enterprises and loans from the World Bank and domestic

    commercial bank.

    3.1.3 Project construction period

  • 24

    The final design period of the project pipe network is to the end of 2030.

    Since 2031, the gas supply will reach the design capacity of this project. The project

    construction schedule is as follows: April 2017 to August 2018, complete the installation of

    the main pipeline network and pressure adjustment and metering facilities; September 2018 to

    the end of 2030, complete branch pipeline laying step by step, and complete installation and

    commissioning of gas transmission and distribution automation monitoring and management

    system in different stages.

    3.1.4 Gas Consumption

    The construction of the pipeline network can realize the gasification of the villages and towns,

    new rural residential areas and major industries in the county area. Table 3-4 shows the gas

    consumption of the project.

  • 25

    Table 3-1 Project Composition

    Item

    Project

    Location and

    surrounding

    environment

    Capacity Composition Gas source Service area

    Yangcheng

    pipeline

    network

    Anyang gas

    distribution

    station-Dongye

    town urban gas

    pipeline

    New

    construction of

    gas

    transmission

    and distribution

    system, with

    annual gas

    supply of

    5627.98×104N

    m3

    1) New construction of 20.2 km hypo-high pressure pipeline

    at 0.8 MPa; with diameter of D323.9×6.3. The buried

    depth of pipeline (depth from pipe top to surface

    ground covering soil) shall be carried out according to

    the Code for Design of Urban Gas (GB50028-2006),

    specifically: Buried in the roadway: ≥1.2m; Buried in

    the roadway under non: ≥1.0m. Pipeline

    crossingProvincial Rd S229(3 places)Xi-Mang Road

    (1 place),Yang-Dong Road(4 places),other road

    (18 places);Huoze river crossing once,Jian river

    crossing once, Channel crossing once.

    2) 8 surge tanks;

    3) 7 Single valve well(DN150),1 Double valve well

    (DN200、DN300),135 of Mark piles, Mileage stake,

    Cross pile, Corner piles and 58 warning signs;

    4) Auto-monitoring system for gas network Tin

    gdia

    n b

    oo

    ster

    sta

    tion,

    co

    nst

    ruct

    ion h

    as b

    een c

    om

    ple

    ted

    Along the pipeline

    network, county residents,

    commercial business in

    Yangcheng County, and

    township residents,

    commercial business, new

    rural residents and the

    surrounding industrial gas

    users etc. within the county

  • 26

    Lan

    hua1

    51# v

    alve

    wel

    l -Y

    anli

    county

    urb

    an g

    as

    pip

    elin

    e

    New

    construction of

    gas

    transmission

    and distribution

    system, with

    annual gas

    supply of

    262×104Nm3

    1) New construction of 7.59 km hypo-high pressure

    pipeline at 0.8 MPa; with diameter of D219.1×5.6.

    The buried depth of pipeline (depth from pipe top to

    surface ground covering soil) shall be carried out

    according to the Code for Design of Urban Gas

    (GB50028-2006), specifically: Buried in the roadway:

    ≥1.2m; Buried in the roadway under non: ≥1.0m.

    Pipeline crosses Chongli Avenue once, other road 11

    places.

    2) 1 surge tanks;

    3) 1 Single valve well(DN200), 51 of Mark piles,

    Mileage stake, Cross pile, Corner piles and 24

    Warning signs;

    4) Auto-monitoring system for gas network

    Lan

    hua1

    51# g

    as w

    ell

    in X

    ihe

    tow

    nsh

    ip,

    Yan

    gch

    eng C

    ounty

    , co

    nst

    ruct

    ion h

    as b

    een

    com

    ple

    ted Second gas source for

    residents, commercial

    business, and public

    construction in Yanli

    township

    Upgrading of

    existing gas

    facilities in

    Yangcheng

    Replacement of

    gas meter and

    pipeline behind

    the meter in the

    resident

    houshold

    To upgrade the membrane meters and 26800 m pipeline behind the

    meter for the 13411 residents user of existing gas project in

    Yangcheng County.

    ——

    Residents of the existing

    gas pipeline network of

    Yangcheng with the

    membrane meters and

    pipeline behind it to be

    upgraded.

  • 27

    Table 3-2 Gas Consumption

    NO. User type

    Daily Gas

    Consumption

    (103m3/d)

    Annual Gas

    Consumption

    (104m3/a) Proportion(%)

    Yangcheng gas Utilization:gas consumption proportion of industrial use to civil use is

    88:5.7

    1 Residential

    users 0.88 322.85 5.74

    2 Commercial

    users 0.19 70.22 12.48

    3 Industrial

    users 13.75 4950.00 87.95

    4 Unforeseen

    consumption 0.78 284.91 5.06

    5 Total 16.42 5627.98 100

    3.2 Construction Plan and Method

    This is a natural gas pipeline project, no need for the the gate station, regional regulator

    station engineering. The construction site should be cleaned up before pipeline construction;

    The excavation of pipeline ditch adoptes single side dump, assembling and welding should be

    done on the top of ditch. After the completion of the trench excavation, road crossing, river

    crossing and other basic work, in accordance with the construction specifications, the pipeline

    will be sent to the site for welding, pressure testing, interface corrosion prevention, and then

    lowered down into the pipe trench.

    The project adopts directional drilling to cross the ditch due to the stone masonry slope

    protection, and adoptes direct excavation to cross the river. Concrete pressure block shall be

    added to the pipe section to stabilize the pipe. The buried depth of the pipeline is in the stable

    layer of the river bottom; The buried depth of pipe top is about 1m below scouring layer; The

    Pipe jacking should be adopted to cross roads.

    After the above construction is completed, the pipeline pressure test will be carried out.

    The project uses clean water for atmospheric pressure test, and then backfill soil, clean up the

    site, restore the landscape, and restore the vegetation.

    3.2.1 List of Construction Methods

    The construction methods of the project see Tabel 3-3.

  • 28

    Table3-3 Construction Methods

    Project Subproject Pipelin construction Y

    angch

    eng

    pip

    elin

    e

    Anyang gas distribution

    station-Dongye town urban gas

    pipeline

    New construction of 20.2 km pipeline at 0.8 MPa; 8 surge

    tanks;

    Pipeline crossing Provincial Rd S229(3 place)Xi-Mang

    Road(1 places),Yang-Dong Road(4 places),other road

    (18 places); The pipeline of the project crosses Huoze River once and

    Jina river once, ditch once.。 Use pipe jacking when crossing roads

    Use dry excavation to cross river

    Directional drilling is adopted for canal and ditch crossing.

    Lanhua151# valve well -Yanli

    county urban gas pipeline

    New construction of 7.59 km pipeline at 0.8 MPa;

    1 surge tanks;

    Pipeline crosses Chongli Avenue once, other road 11 places.

    Use pipe jacking when crossing roads

    Upgrading of existing gas

    facilities in Yangcheng.

    To upgrade the membrane meters and pipeline behind the

    meter for the 13411 residents user of existing gas project in

    Fengcheng toenship,Yangcheng County.

    3.2.2 Construction Methods

    During the pipeline laying of the project, the direct excavation method is adopted to lay the

    crossing works including river, channel crossing and highway crossing. The construction

    methods are stated as follows:

    1、Roads Crossing

    Roads the pipeline engineering goes across include national roads, provincial roads and rural

    roads. The engineering for crossing roads adopt the pipe jacking method. The pipe jacking

    method doesn’t destroy the road pavement, or block traffic, with small perturbed surface and

    slight environmental impacts. The construction method and machinery of pipe jacking method

    are as follows:

    (1) Construction method: first of all, set up the pedestal and install hydraulic jack in the

    operation pit to penetrate tool pipe or heading machine through the earth to the receiving pit

    and lift up them by using the propulsive force of main jack oil tank, pipeline room and relay

    room; and then follow the tool pipe or heading machine to jack the prefabricated section of

    pipe into the ground and bury the pipe between the two pit.

    (2) Construction machinery: head (including small oil jack), oil press, main jack oil tank,

    bridge crane (hoisting machine), resistance box and other power-supply units, electric welder,

    measuring apparatus, pipe-like track, jacking block and back.

    2、Channel Crossing

  • 29

    The project pipeline goes across the channel once. The pipeline construction adopts the direct

    excavation method. As for Zhujiachuan River, Songxi River and Zhanghe River, the crossing

    engineering adopts the directional drilling method, which is featured by short construction

    period, small site disturbance and slight impacts on surroundings and can ensure the buried

    depth of the pipeline. Construction method and machinery of directional drilling are as

    follows:

    (1) Construction method: first, make use of existing roads to transport equipment to the

    construction site, and then conduct the excavation of slurry pond in drill site; meanwhile,

    calibrate the position of main equipment with gray lines, and then place main equipment in

    correct place at time of equipment access; start the construction of guide hole according to the

    requirements of codes and design, and then start the construction of pre-reaming hole and

    pipeline back dragging in order; after crossing, put equipment in order, clean the construction

    site; after mud sedimentation, conduct clean-water discharge and backfill mud with earth to

    restore landscape.

    (2) Construction machinery and material: drill and drilling bit, back reamer, drill stem and

    other accessory equipment, clay, power generator, blender and water pump.

    3、River Crossing

    (1) Construction method: The pipeline of the project crosses Huoze River once and Jina river

    once, both are seasonal small rivers. Pipeline construction adopts the excavation method when

    crossing river, and in the first, dry season shall be selected, rainy season shall be avoided; If

    there is water flow in the river during construction, the river should be cleaned first, then one

    side should be enclosed for diversion and the other side be excavated. After completion of the

    whole construction, the river channel should be cleaned.

    (2) Construction machinery

    Excvavtors, cutting machine and shovels.

    4、General routes

    Pipe construction adopts the excavation method, which is featured by simple and direct

    construction and low construction cost and has no impacts on revegetation and land

    reclamation after earth backfilling. Therefore, general pipe section of the subproject adopts

    the excavation method. As for excavation method, the Pipeline trench shall be excavated

    according to the plane position and elevation stated in the design. In case of manual

    excavation without Groundwater, the reservation value of trench bottom shall be 0.05-0.10m;

    in case of mechanical excavation with Groundwater, the reservation value of trench bottom

    shall be not less than 0.15m. Conduct manual bottom cleaning to elevation before pipeline

    installation, and then start pipeline construction.

  • 30

    (1) Pipe trench backfilling

    The pipe trench backfilling shall adopt fine earth to fill the pipe bottom and both sides of the

    pipeline first, and then backfill the pipeline to 0.5m above the top of the pipe. The backfilling

    soil on both sides of the pipe and 0.5m above the top of pipe shall not include gravel, brick,

    litter and other sundries and shall not use frozen soil. The backfilling soil shall be tamped

    layer by layer, with the layer thickness of 0.2-0.3m. The backfilling soil on both sides of the

    pipe top and 0.5m above the pipe top must be tamped manually. When the height of

    backfilling soil exceeds 0.5m of pipe top, small machinery shall be used for tamping. Each

    layer of loose soil shall be 0.25-0.4m in thickness.

    (2) Construction machinery

    Excvavtors, cutting machine and shovels.

    3.2.3 Construction Camp

    The gas facilities renovation project is located in Yangcheng County, and the construction

    workers are all local staff, no need for setting up construction camps. The two pipe network of

    the project will be constructed in sections. The design takes 5km as a section, each section has

    a construction period of about 50 days, and there will be no more than 8 people during the

    peak construction period. Construction camps use the the nearby village rental housing, the

    use of local living facilities, set up canteens, the largest number of people eating in the

    canteen will be no more than 8. Clean fuel canned liquefied gas should be selected for the

    onstruction personnel canteen, coal is strictly prohibited; Workers will produce some

    domestic waste, garbage collection barrels will be set, regularly collected and disposed by the

    sanitation department; The hand wash water should be spilled to suppress the dust, other

    small amount of living water be collected into the bucket, after precipitation, use the upper

    clean water to spray the dust and the bottom dregs be dumped into the trash bin. Construction

    workers are recruited local personnel, there is no cultural difference. Through the villages

    along the pipe network, drinking water is the same as the local villagers, all of which are in

    line with the drinking water standard.

  • 31

    4 Environmental Situation

    4.1 General Introduction of Natural Environment

    4.1.1 Geographic Location

    4.1.1.1 Geographic Location of Shanxi Province

    Located in the Loess Plateau in northern China, Shanxi Province is of a mountainous plateau

    covered by loess in principle. Standing in the heart of the Yellow River basin, i