Environmental Management

1. Sustainable Development Practice in China Environmental Management

2. Observation (general situation) The legal system Characteristics From project EIA to Planning EIA EIA storming

3. General Situation • China’s economy was negligible during “Cultural Revolution” so as environmental pollution; It was thought environmental pollution is the result only of capitalism and marketing economy… • China firstly noted environment in 1972. The next year in Beijing, the 1st national conference on environmental protection was organized. ~~~ the milestone of China in environmental protection, but actions were taken only after 1978;

4. Current situation of environmental management • Hierarchy of administration on environmental protection; • Comprehensive legal system with numerous laws, regulations, provisions, guidelines, standards, and methods …; • Monitoring on air and water quality, and polluting sources; • Annual status report, from central government to large cities; • Standards and monitoring; • Features • Polluter pays; Three simultaneities; and EIA; • EIA storming, from EIA to PEIA; • Regular measures taken: “close/stop/combine/change/move”, knocking down stacks, pollution control zones; • Special programs: “Zero Point” actions, “33211” project, “Water” Projects … • Weak points? • General weakness, …contradiction between development and environment; • MoEP is a part of the government; • Who support? … • Public participation, effectiveness of EIA, …unlawful and illegal activities …

5. Administration • Two important events happened in 1972: • China sent a delegation and attended the Stockholm Conference on Human Environment. • A large number of fishes died in GuanTing Reservoir. There was rumor said due to “class enemy”. Later it was found due to water pollution. A leading panel was set up on water resource protection for the reservoir that was the earliest government unit on environment • 1973, in State Council, Office of Environmental Protection • 1982, Environmental Protection Bureau, under Ministry of Urban and Rural Development and Environmental Protection (MURDEP); • 1984, National Environmental Protection Agency (NEPA), under MURDEP; • 1988, State Environmental Protection Administration (SEPA), directly under State Council; • 2008, Ministry of Environmental Protection • Corresponding departments are set up in local governments

6. Laws, regulations, provisions, standards, guidelines, methods, and programs For example, laws: • 1979-07-01 Administrative Punishment Law (excerpt) • 1982-08-23 Marine Environmental Protection Law • 1982-12-04 Constitution of China (environmental protection provisions) • 1986-03-19 Mineral Resources Law (1996 Revision) • 1986-06-25 Land Management Law (amended in 1998) • 1988-11-08 Wild Animal Protection Law • 1989-12-26 Environmental Protection Law • 1991-06-29 Soil and Water Conservation Law • 1993-07-02 Agriculture Law (excerpt) • 1996-10-29 Law on the prevention and control of environmental noise pollution • 1999-12-25 Marine Environmental Protection Law (revised) • 2000-03-20 Water Pollution Prevention Law • 2000-04-29 Air Pollution Control Act • 2000-10-31 Fisheries Law • 2001-10-29 Law on management of sea area use

7. Continued • 2002-10-01 Water Law • 2002-12-28 Grassland Law • 2002-12-28 Environmental Impact Assessment Law • 2003-06-28 Radioactive pollution prevention and control law • 2003-08-27 Law of Administrative Permission • 2003-12-03 Law of Sand Prevention and Management • 2004-12-29 Solid Waste Pollution Prevention Law • 2005-02-28 Renewable Energy Law • 2006-11-29 Law of Administrative Reconsideration (renewed) • 2006-11-29 Law of Administrative Procedural Law (renewed) • 2006-11-29 Law of Administrative Punishment (renewed) • 2007-10-30 Law of Energy Conservation • 2007-10-31 Law of Urban and Rural Planning • 2008-02-29 Law of Water Pollution Prevention • 2008-09-01 Law of Circular Economy Promotion • 2012-01-01 Law of Administrative Enforcement • 2012-06-07 Law of Clean Production Promotion

8. Air QualityMonitoring, daily reporting by 120 cities http://datacenter.mep.gov.cn/

9. Surface water quality monitoring, weekly report on the web of MoEP • SongHuaJiang River (松花江流域) • LiaoHe River (辽河流域) • HaiHe River (海河流域) • HuaiHe River (淮河流域) • HuangHe River (黄河流域) • ChangJiang River (长江流域) • ZhuJiang River (珠江流域) • Rivers in HaiNan Island (海南岛内河流) • Rivers in ZheJiang and FuJian (浙闽河流) • Southwest rivers (西南诸河) • Taihu Lake and rivers (内陆河流太湖流域) • CaoHu Lake and DianChi Lake (巢湖流域滇池流域) • Other large lakes (其他大型湖泊)

11. Onsite monitoring for heavy polluting sources are installed and controlled by local EPBs

12. Features • Three key policies • Prevention the priori, the measures to eliminate pollution and protect environment should be brought into consideration before the development actions is put into practice; • Polluters pay principle; and • Strengthening environmental management to practice harmonic approach of social economic development and environmental sustainability.

13. Management programs • Eight systems were developed in late 1970s for environmental management, when the socialism-planned economy was dominant in the country, in three categories. • Administrative commanding, including “Three synchronous implementation”, “Responsibility of the environmental protection objects”, “Zero point action” ~ pollutant emission control within prescribed time, “33211” ~ 3 rivers+3 lakes+2 control+1 Bay+ 1 City, and Quantitative examination on comprehensive rectification and harness of the city environment. • Economic tools, including “Polluters’ pay principles”, and License for pollutant discharge/emission. • Technological approaches, including “Environmental impact assessment” and “Mass loading control”.

14. Environmental Impact Assessment in China

15. About EIA • EIA: Environmental Impact Assessment • EIA is a legal system to incorporate environmental consideration into decision making. For this reason, EIA is a proactive management strategy. The goal of the system is to prevent significant negative impact caused by any development actions, including project, product, program, plan, policy and even legislative proposal.

16. Levels of Environmental Assessment Strategic environmental Assessment (SEA) Policy plan Program # Project EIA (environmental impact assessment) # Product EIA (environmental impact assessment)

17. The “Law of the People’s Republic of China on Environmental impact assessment (EIA)” was approved in Oct. 2002, and put into practice on Sep. 1, 2003. • The law provides the requirements of EIA for construction projects and plans (including the development plans of land utilization, regional development, river basins, and marine areas, and ten sectoral plans), as shown in the figure. • The sectoral plans include ten categories of plans e.g. industrial, agricultural, energy, transport, urban construction, natural resource exploitation, etc.

18. Construction projects may generate negative impacts to the surrounding (natural and social), so that the main objectives ofProject EIA • modify and improve project design; • ensure efficient resource use; • enhance social aspects; • identify key impacts and measures for mitigate them; • inform decision making and condition setting; • avoid serious and irreversible damage to the environment; • protect human health and safety.

19. Main contents of a detailed EIA report • Introduction: project description, legal documents, scale and scope, key factors to be analyzed; • Project analysis: industrial process, material, energy and water flows, pollutant generation • Analysis on current environmental situation; • Key environmental factor analysis and prediction; • Methods and models; • Data collection and analysis: natural conditions, pollutant source (surrounding and the project), ambient environment, social, and economic…; • Model predictions; • Analysis on proposed countermeasures on pollution control; • Environmental monitoring and management system • Social issues and public participation; • Alternatives for site selection and countermeasures • Conclusion

20. Legal actions related to EIA • 1972: China attended the Stockholm UN Conference on Human Environment • 1978: EIA concept was introduced in the report Key Issues in Environmental Protection by the State Council of China • 1979: EIA for construction project was firstly included in the Environmental Protection Law of P. R. China (For Trial Implementation) • 1981: In Regulations on Environmental Protection Management for Infrastructure Construction Projects by the State Council of China, the scope, tasks, and procedure of EIA were described, and with the “Three Simultaneities (design, construction, and evaluation)” principle enhanced EIA regulation. • 1982: In Law of Infrastructure Construction, EIA regulations were improved; • 1984: In Law of Water Pollution Prevention and Control, aquatic environmental impact assessment was juristically emphasized.

21. 1986: Regulations on Environmental Protection Management for Infrastructure Construction Projects revised; Regulations on Environmental Protection Management for Construction Projectswas issued, extended EIA requirements to all construction projects with environmental impacts; Regulations on EIA Practitioner Qualification was designed; EIA for economy open areas required in Provisional Regulations on Environmental Management for Economically Open Areas. • 1987: In Law of Air Pollution Prevention and Control, atmospheric environmental impact assessment was juristically emphasized • 1988:Comments onConstruction Project Environmental Management and Regulations on Environmental Protection Design for Construction Projects were issued. • 1989: In Law of Environmental Protection EIA system was juristically included; Principles and Methods for Making Charge Standards for Construction Project EIAs was issued and Regulations on EIA Practitioner Qualification was improved.

22. 1990:Procedure of Construction Project Environmental Protection Management was issued. • 1993: In On Improving Environmental Management for Construction Projects by NEPA, REIA (regional EIA) for economic development zones was officially required. • 1994:Technical Guidelines for Environmental Impact Assessment was issued by NEPA • 1995:China’s 21st Century Agenda, EIA concept, theory, and REIA • 1996:Law of Solid Waste Environmental Pollution Prevention and Control, EIA for solid waste • 1998:Regulations on Construction Project Environmental Protection Management promulgated by State Council; • 1999:Classification of Construction Project Environmental Protection Management was issued by SEPA • 2002: Law of Environmental Impact Assessment enforced on Sept 1, 2003, Plan EIA (PEIA) was included • 2003:Technical Guidelines for Environmental Impact Assessment”: General Guidelines;Technical Guidelines for Plan Environmental Impact Assessment(On trial) were issued.

23. 2009:Regulations on Plan Environmental Impact Assessment, approved by the State Council of China

24. However, EIA does not solve all problems. Therefore there were: EIA Storms 2005-2009

25. EIA Storms • 2005: Jan 18, 30 large scale construction projects were suspended. Almost all were power stations with billions RMB investments, distributed in 13 provinces, including a hydraulic power station on JinSha River. • 2006: Feb 7，SEPA ordered environmental inspection for 11 petrochemical enterprises located along large rivers; environmental risk analysis for 127 projects, and suspended 10 projects. • 2007: Jan 10 regional suspension of EIA approvals, “regional controls”, involving Hebei's Tangshan, Shanxi's Luliang, Guizhou's Liupanshui, and Shandong's Laiwu cities; and industrial groups such as large power firms Da Tang International, Huaneng Power International, China Huadian, and China Guodian Corporation, steel and iron, electricity, and metallurgy. • 2007: July 3, In view of the severe water pollution, SEPA ordered “basin suspension” of EIA approvals for the development projects of six cities, 2 counties and 5 industrial gardens in the basins of Changjiang River, Yellow River, Huai River, and Hai River. • 2009: June 11, Ludila hydraulic power station of Huadian and Longkaikou hydraulic power station of Huaneng were suspended.

26. Observation: • EIA is the most important tool to regulate economic development; and the most important measure for MoEP to implement its duty • However, conflicts exists between environmental protection and development • What can we do the next? • Implement PEIA • Promote “Ecological Civilization”

27. 3 PEIA • 2009:Regulations on Plan Environmental Impact Assessment, approved by the State Council • For plans: Land use plans, development plans for regions, basins, and coastal sea areas, and sectoral plans for industry, agriculture, stock raising, forestation, energy, irrigation, transportation, city infrastructure, tourism, and natural resource etc. • made by: state departments, governments and departments of cities administrating prefectures • to assess: • Integrated impacts on the ecological system of the region, basin and coastal sea areas; • Long-term impacts on the environment and human health; • Relationship of economic, social and environmental benefits, and the relationship of short-term and long-term benefits.

28. Strategic EIA but currently PEIA, including • city master plan • and Sectoral plans Regional Development Zone EIA From Project EIA to SEA, or PEIA InLaw of Environmental Impact Assessment, plan EIAs are required for city master plan, and various sectoral plans Construction Project EIA

29. Case Study: Environmental Impact Assessment for Mid and Long Term Development Plan of Petroleum Chemical Industry at Guangxi Coastal Area

30. background Petroleum industry development offers a good opportunity for the development in Guangxi. In the plan, not only the coastal cities are involved, but also three inland cities: Baise, Hechi, and Liuzhou. Petroleum industry induces threats to the environment and ecological system, and the natural conditions are somewhat vulnerable. PEIA is therefore important to identify and analyze the impacts, and recommend alternative designs/arrangements (schemes) of the plan. This PEIA is highlighted by MoEP. The draft report is under reviewing procedure.

31. Plan Description Based on 20 million tons ofraw oil processing (2 phases), to establish a series of projects, including 44 key projects and many more related projects: 1.2 million tons ethylene production 0.3 millions tons polyethylene production 0.6 million tons polypropylene production 0.6 million tons styrene 0.2 million tons acetic acid 0.1 million tons acetic ester 0.2 million tons acetic ethylene 0.1 million tons EVA and 0.05 million tons VAE 0.07 million tons polyethylene alcohol 0.75 million tons PTA …… Period: from 2006 to 2020, in two phases

32. The cities and industrial parks involved Beibu Gulf Location: This is Guangxi

33. This is the basic scheme (arrangement), park / cities

34. Features of PEIA Large scale: Large city, province, basin, … Long time period Complicated Environment /economy / social .. Consistency with other plans, policies Highly uncertain Plan > schemes/scenarios > projects Source strengths unknown, distribution uncertain Risk analysis Dependence on source and receptor distribution so as on schemes

35. Level Policies/Petro industry plan Scale reasoning State E. Saving & P. Reduc Petro. Industry Strate. Ind. chain & production Province Objectives of this work City develop. plan Carrying capacity Industry plan Plan arrangement City Park dev. objectives Industry/arrangement Infrastructure condition env. sensible issues Key proj. site Indus. park Logic framework Analysis Reference Objectives Develop. acceptable? How to develop better ?

36. Petroleum industry development in China Environment and development in target region Guangxi Province Relevant cities Relevant industrial parks 2 levels: cities / parks 5 views: plan consist.; resource; envir. Capacity & mass loading requirement; industry basis; natural & geo. conditions Limiting factors Assessment Road Map Background Assessment objectives and scope Legislative issues Methods Key issues Work Plan Current Status Design scenario Plans Clean production indicators National eco-ind. park indicators Euro. Ind. Sustain. Dev. Indicators Int. well-known Comp. Env. Indicators Recommended indicators by EIA guidelines Eco-city/county/district indicators Plan Analysis • Perform production chain analysis, with processes and current situation, 63 schemes were designed • Based on principles on product integrity, local product chain, plan consistency, resource limiting, pollutant mass loading etc., 9 schemes were selected including a basic scheme. With plan description Environmental reasonability / feasibility Consistency with State/Province/City/park Env. Impact identification, pol. src analysis Evaluation Indicator System Impact Predict. & Assessment Scope: 6 ind. parks & surroundings, city / province Sectors: air, water, ecology, solid waste, resource Subjects: present status, basic scheme, alternative schemes Methods: quantitative & qualitative Key issues: Beibu Gulf, marine environ. / ecology Social & economic impacts Public participation Environment & resource impact Environmental risk assessment Circular economy Circular economy capacity analysis for basic and alternative schemes Method: indicator Indicators: economic, energy, resource utilization Subject: Social/Econ. Inf. to province, sustainability, policy Methods: investment – benefit analysis, mainly qualitative Cost analysis: market risk, opportunity cost Scope: 6 ind. parks, surrounding 10km, road, sea route Subjects: risk source, sensible targets, comparison between basic and alternative schemes Methods: qualitative and semi-quantitative Comparison based on: Plan reasonability Plan consistency Acceptability of plan impacts Public opinion Ordering of the 9 schemes Methods: questionnaire/interview, internet, poster, meeting Target group: officers, planners, general public in plan/assessment Areas Base scheme assessment Plan reasonability Plan consistency Acceptability of plan implementation impacts Public opinion Comparison and optimization Conclusion Recommendations to basic scenario Measure to mitigate impacts

37. Key issues Method: Regular method to the projects with clear descriptions Design schemes (scenario) for those with uncertain descriptions, consider environmental/resource limiting factors for scheme optimization Analysis: Plan reasonability analysis: industry policy, project arrangement, site selection, plan consistency, environmental functioning, environmental infrastructure, environmental capacity, clean production and circular economy etc.; Environmental Assessment: identify, predict, and assess environmental impacts respect to air, water, coastal marine and ecologic system, risk analysis and limiting conditions. Consider optimization, mitigation measures. Subjects: Current situation assessment and limiting factor analysis Plan consistency analysis Environmental and resource impact analysis Risk analysis and emergency response suggestions Scheme design, screening comparison and selection (63 schemes 9 schemes)

38. (1) Comparative assessment of 6 industrial parks Result: Suitable: Liuzhou (4.95) and Hechi (4.95); moderate: Qinzhou (4.10) and Baise (3.55) Unlikely: Nanning (3.45), Beihai (3.15)

39. (2) Plan consistency analysis

40. (3) Scheme design and screening • Based on production chain analysis and similar project combining principle, and the existing arrangement, 63 schemes were designed. • Based on product grouping, linking of the local industry, consistency, resource limiting, and mass loading requirement, 6 schemes emerged after screening. With the basic scheme and two collective schemes, 9 schemes were selcted for analysis.

41. Nine Schemes after screening Scheme 2 Scheme 5 Scheme 19 Scheme 21 Scheme 22 Scheme 24 Original Scheme Scheme 27 Scheme 28

42. Environmental Analysis Atmospheric environment: • SO2 and HCs • Annual average concentration distribution prediction by modeling • Pollutant emission source strength estimate and mass loading requirement • Comments on acid rain situation • Analysis of these factors for the schemes • Water environment: • Waste water and COD • Sewage network and waste water treatment plants • Impact on surface waters at the cities • Pollutant emission source strength estimate and mass loading requirement • Analysis and comparison between the schemes • Marine (coastal) environment: • COD and oil • Concentration distribution prediction by POM modeling • Pollutant emission source strength estimate and mass loading requirement • Result analysis for the schemes • Solid waste: • Domestic, industrial, and hazardous • Generation, management and disposal • Treatment infrastructure • Comparison between different schemes

43. Sample figures of annual SO2 concentration distribution

44. Sample coastal marine modeling For Qinzhou For Beihai

45. Ecological analysis: • Land use type, biodiversity, forest cover, sensible sites, petroleum-specific vulnerability • Current situation, sensible sites, vulnerability • Alternative schemes • Resource analysis: • Current situation inventory, carrying capacity analysis, prediction based on schemes; • Water • Water supply and demand • Water consumption efficiency • Requirement and attainment measures • Energy • Energy supply and demand • Energy consumption efficiency • Energy saving objectives and attainment measures

46. Ecological analysis: current situation

47. No1 No5 No19 No21 No22 No24 No27 No28 Basic Ecological impact based on schemes Impact on ecological system The Schemes in which ecological sensitive projects are put to less sensitive cities are highly scored and recommended.

48. Water supply and demand It is obvious that Qinzhou carries the heaviest burden (nearly 74% of supply amount in 2010, and 54% in 2020). It is highly recommended that Qinzhou should increase its water supply ability and keep good balance in the process of water allocation.

49. Water consumption efficiency Inefficient use of water resources is not beneficial to achieve the water-saving goals of Guangxi District.

50. Energy supply and demand Energy demand in this plan and possible supply of each city At park level, the petrochemical energy consumption accounted for 100% and 26.3% of the available energy in Qinzhou and Beihai park respectively. Qinzhou park’s energy supply can not meet the requirements of petroleum industry. What’s more , the future development of forest pulp and paper, steel and other industries which consume a mass of energy in the Tieshan Port Zone will strengthen the pressure of energy supply in Bei Hai.