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2

【China: GEF Dioxin Reduction from the Pulp and Paper Industry Project(P125528)】

Environmental Impact Assessment Report

for

Technical Upgrade of Pumiao Paper Mill, Nanning Sugar Manufacturing CO., LTD

Pumiao Paper Mill, Nanning Sugar Manufacturing CO., LTD

January 2012

Content

11. General Principles

11.1 Origin of the task

21.2 Aims of assessment

31.3 Basis of preparation

41.4 Assessment level and Scope

61.5 Assessment emphasis and methods

61.6 Environmental protection goals and sensitive points

91.7 Assessment standard

121.8 Procedure of assessment work

142. Alternative plan and technology upgrade project analysis

142.1 Nature and name of project

142.2 General situation before technology upgrade

472.3 Project analysis

682.4 The technology upgrade project complies with industrial and environmental protection policies and plans

703 Environmental situation of project construction site

703.1 Situation of natural environment

733.2 Social and economic situation

753.3 Situation of the general plan of construction site

773.4 Survey on the situation of major industrial pollution sources

804 Survey and assessment of current environment quality

804.1 Survey and analysis of current air quality

884.2 Survey and assement of current surface water quality

1024.3 Situation and assessment of sound quality

1055 Environmental impact predication and assessment

1055.1 Predication and assessment of impact on air

1105.2 Predication and assessment of impact on surface water

1185.3 Analysis and assessment of impact on sound quality

1195.4 Analysis of disposal and impact of solid waste

1205.5 Analysis of environmental impact during construction period

1256 Measures to mitigate impact

1256.1Measures to mitigate impact of pollution during construction period

1276.2Measures to mitigate impact during operation period

1297 Rationality analysis of site selection and general layout

1297.1 Rationality analysises of site selction

1307.2 Rationality analysises of general layout

1328 Clean production assessment and industrial policy evaluation

1328.1 Industrial policy analysis

1328.2 Clean production assement

1409 Environmental risk assessment

1409.1 Aims and focus of environmental risk assessment

1409.2 Assessment level

1439.3 Assessment Scope and content

1449.4 Procedures of Environmental risk assessment

1469.5 Risk identification

1589.6 Source item analysis and result calculation

1639.7 Environmental risk prevention and emergency response measures

1699.8 Emergency response plan

1749.9 Conclusion of risk assessment

17510 Public Participation

17510.1 Purpose and significance of public participation

17510.2 Work plan of ublic participation

17510.3 Release assessment information on environmental impact

17910.4 Public participation survey

18210.5 Summarize and analyze public opinions

18610.6 Sub-summary

18811 Economic Cost-benefit of Environmental Impact

18811.1 Economic benefit analysis

18811.2 Social Benefit Analysis

18911.3 Environmental benefit

18911.4 Economic Cost-benefit of Environmental protection

19412 Emission after meeting relevant requirements and total amount control

19412.1 analysis of emission after meeting relevant requirements

19512.2 Analysis of total amount control

19813 Environmental protection management and monitoring plan

19813.1 Setting of environmental protection organizations

19913.2 Environmental management measures

20013.3 Environment treatment measures

20213.4 Environmental monitoring measures

20613.5 Environmental monitoring plan

20913.6 Environmental supervision plan during construction period

21013.7 Existing situation of enterprise on implementation and certification of ISO 14000

21713.8 List of inspection and acceptance of “three at the same time” completion

21914 Assessment conclustion

21914.1Project situation

21914.2 Purpose and features of this project

21914.3 Comply with national industrial structure

22014.4 Conclusion of Rationality analysis of site selection and general layout

22014.5 Environmental impact predication and assessment results

22214.6 Conclusion on measures to mitigate and treat impact

22314.7 Conclusion on clean production and total amount control

22414.8 Conclusion on environmental risk

22514.9 Conclusion on public participation

22514.10 General conclusion

22514.11 Suggestions

1. General Principles1.1 Origin of the task

Pumiao Papermaking Factory, affiliated to Nanning Sugar Manufacturing CO., LTD is formerly called Pumiao Sugar Factory. Nanning Sugar Manufacturing CO., LTD conducted industrial structure adjustment according to market demand in 2000, and it decided to stop the production of sugar and concentrated on the production of ethyl alcohol and bleached bagasse pulp, thus to constructed bleached bagasse pulp production lines on the space in the factory. Pumiao Papermaking Factory finished construction of the first phase of 34 thousand tons of bleached bagasse pulp (absolutely dry) in 1999 and construction of the second phase of 68 thousand tons of bleached bagasse pulp (absolutely dry) in 2004, and put into operation. Pumiao Papermaking Factory conducted another exploration and technology upgrade after putting into operation, which was finished in 2007 and enabled the production capability expand from 68 thousand tons per year to 98 thousand tons per year.

The production line of 98 thousand tons per year of Pumiao Papermaking Factory after technology upgrade in 2007 uses chlorine as bleacher, which will generate dioxin, a kind of pollutant. The state issued “Discharge standard of water pollutants for pulp and paper industry” (GB3544-2008) in 2008, which improves the requirements for the discharge of waste water from pulp and paper industry. According to the requirements in “Reply of Guilin Environmental Protection Bureau on Environmental Impact Statement of Technology Upgrade Project of Pumiao Papermaking Factory, Nanning Sugar Manufacturing CO., LTD Concerning Expanding Annual Production Capability from 68 thousand tons to 98 thousand tons (Gui Huan Guan Zi [2008] No.268), the waste water from Pumiao Papermaking Factory, Nanning Sugar Manufacturing CO., LTD was emitted according to table 1 in GB3544-2008 before 2010 and according to table 2 in GB 3544-2008 after 2010.

Article 22 of “Paper Industry Development Policy” stipulates: “the technology of paper industry shall go towards the direction of high standard, low consumption and low pollution. The application of high yield pulping technology, biological technology, low pollution pulping technology, medium concentration technology, ECF or TCE bleaching technology, low consumption mechanical pulping technology is encouraged, ……” article 23 of “Paper Industry Development Policy” stipulates: “……the application of lime base pulping is prohibited and elemental chlorine bleaching technology on new projects is prohibited (current enterprise shall gradually phase out the application of elemental chlorine bleaching technology). The obsolete and backward pulp or paper making equipments are prohibited to import”. “Discharge standard of water pollutants for pulp and paper industry” (GB3544-2008) proposes stricter requirements for AOX (Absorbable Organic Halogen), benchmark waste water emission volume per unit product and emitted water quality for pulp and paper industry. In accordance with above stipulations and for the purpose of comprehensive utility of resource, expanding and improving the enterprise, strengthening of social and industrial awareness, we shall strictly comply with laws and regulations concerning environmental protection, resource conservation, labor security, safe production, etc, and gradually enter the construction of new mode of paper industry development which is resource conservation, environmental friendly, and development harmonious. In addition, in order to enable emitted waste water meet the requirements in table 2 of “Discharge standard of water pollutants for pulp and paper industry” (GB3544-2008), Pumiao Papermaking Factory shall specially upgrade its bleaching and waste water treatment technology. This technology upgrade project includes constructing a new bleaching system with annual treatment capacity of 98 thousand tons gabasse pulp using new ECF bleaching process to replace old No. 1 and No.2 CEH bleaching process which will reduce the generation of dioxin and AOX, and constructing a auxiliary 8 t/d chlorine dioxide preparation section; constructing an anaerobic wastewater treatment system with the capacity of 11000 m3/d to treat bagasse water; construct a deep waste water project with the capacity of 40000 m3/d.

In accordance with relevant stipulations in “Law on Environmental Impact Assessment” and “Regulations on the Administration of Construction Project Environmental Protection”, order of State Council of PRC [1998] No. 253, this technology shall conduct environmental impact assessment. The project is seeking GEF funding support, therefore, Pumiao Papermaking Factory, based on previous EIA Report Forms of bleaching process upgrade and anaerobic wastewater treatment, and tertiary wastewater treatment, prepared this EIA report to satisfy World Bank safeguard policy requirements. Based on the sorting of relevant materials and on site examination and monitoring, Pumiao Papermaking Factory predicts and analyzes the environmental problems of this project, prepares this environmental impact statement to submit to competent department.

1.2 Aims of assessment

This assessment investigates and evaluates the ambient natural environment, social environment, air quality, surface water quality, noise, ecological environment quality to analyze the degree and scope of the impact of this project on ambient environment during construction period and operation period. In addition, this assessment analyzes emission situation at the pollution source after technology upgrade through monitoring pollution source and environmental protection measures, analyzes and argues the environmental protection measures as well the technical feasibility and economical rationality. Meanwhile, complying with the principles like “one control two standards”, “clean production”, etc, this assessment proposes operable rectification measures, compares and evaluates the impact before and after this project based on the principles of emission after meeting requirements in standard and amount control, thus to minimize the adverse impact of this project on environment and ensure sustainable development of regional economy.

1.3 Basis of preparation

1.3.1 Laws and regulations

(1) “Environmental Protection Law of the People's Republic of China”, implemented on December 26th, 1989;

(2) “Law of the People's Republic of China on Environmental Impact Assessment”, implemented on September 1st, 2003;

(3) “Law of the People's Republic of China on Prevention and Control of Water Pollution”, implemented on June 1st, 2008.

(4) “Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution”, implemented on September 1st, 2000;

(5) “Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes”, implemented on April 1st, 2005;

(6) “Law of the People's Republic of China on the Prevention and Control of Environmental Noise Pollution”, implemented on March 1st. 1997;

(7) “Water Law of the People's Republic of China”, implemented on October 1st, 2002;

(8) “Law of the People's Republic of China on Urban and Rural Planning” issued by National People’s Congress in January 2008;

(9) “Implementation Regulations on Law of Land Administration of the People's Republic of China” issued in 1993;

(10) “Law of Land Administration of the People's Republic of China” issued in 2004;

(11) “National Development and Reform Commission”, implemented on January 1st, 2003;

(12) “Paper Industry Development Policy” (National Development and Reform Commission [2007] No. 71);

(13) “Decision of the State Council on Implementing Scientific Viewpoint of Development and Strengthening Environmental Protection” (Guo Fa [2005] No. 39);

(14) “Notice of National Development and Reform Commission and State Environmental Protection Administration on Phasing out backward production capability of paper making, ethyl alcohol, monosodium glutamate, and citric acid industry” (Fa Gai Yun Xing [2007] No. 2775);

(15) “Regulations on the Administration of Construction Project Environmental Protection”, order of State Council of PRC [1998] No. 253 issued in November 1998.

(16) “New Classified Catalogue for Environmental Impact Studies” (Order of Ministry of Environmental Protection [2008] No. 2);

(17) “Interim Procedure on the Public Participating in Environmental Impact Assessment” , implemented on March 18th 2006;

(18) “Guidance Catalog for Adjustment of Industrial Structure (2011) ” issued by National Development and Reform Commission on June 1st, 2011.

“Discharge standard of water pollutants for pulp and paper industry” (GB3544-2008), jointly issued by Ministry of Environmental Protection and State Administration for Quality Supervision and Inspection and Quarantine on June 25th, 2008

(20) “Regulation of the Guangxi Zhuang Autonomous Region on Environmental Protection” issued by the Standing Committee of people’s Congress of the Guangxi Zhuang Autonomous Region in February 2006.

(21) “Interim Measures for Clean Production”, implemented on October 1st, 2004.

(22) “Law of the People's Republic of China on Circular Economy Promotion”

(August 29th, 2008)

(23) “Census Regulations on National Pollution Source” (October 10th, 2007)

(24) “Regulations on Collection and Usage of Sewage Fee” (January 2nd, 2003)

(25) “Regulations on Safety Management of Hazardous Chemicals”, implemented on December 1st, 2011.

(26) “Prevention and Control Measures of Nanning City on Sulfur Dioxide Pollution of Coal” (Order of Nanning Municipal Government No.43), implemented on February 1st, 2006.

Main domestic laws, regulations and revelant terms were shown in Table 1.3-1.

Table 1.3-1 Domestic Laws and Revelant Terms

Name

Relevant Terms

Environmental Protection Law of the People's Republic of China

Article 10 Any pollutant emission to the regions where have local standards on pollutant emission shall implement the local standards.

Article 13 The construction pollution projects must comply with the requirements of relevant national environmental management. The environmental impact report of construction projects must assess the pollution from construction projects and the impact to environment, regulate the prevention and control measures, and undergo the pre-specified procedure by project authorities and the approvement by the administrative department of environmental protection.

Article 18 In the scenic spots, nature reserve and other areas that need special protection demarcated by the state council and the competent department concerned of the state council and of the provinces, autonomous regions and municipalities directly under the central government, it is not allowed to construct industrial production facilities that could pollute environment. For other facilities construction, the pollutants shall not exceed the prescribed discharge standards. For the facility has been built, the pollutants in excess of the prescribed discharge standards shoul be under control within a time limit.

Article 19 At the same time of development and utilization of natural resources, measures must be taken to protect the ecological environment.

Article 24 The units which produce environmental pollution and other public hazards units must take the environmental protection work into their plans and establish responsibility system of environmental protection; effective measures shall be taken to prevent and control the environmental pollution and harm of the greenhouse gas emissions, waste water and waste residues, dust, malodorous gases, radioactive substances and noise, vibration, the electromagnetic wave radiation in the production and construction or other activities.

Article 25 New industrial enterprise and technical transformation of existing industrial enterprise shall use the equipment and technology of high resource utilization rate and little emission and carry out economic and reasonable technology of waste comprehensive utilization and pollutants processing.

Article 26 The facilities to prevent and control pollution in construction projects must be designed, constructed and put into use simultaneously with the main project. Only after the facilities of pollution prevention and control approved by the original approved the environmental impact statement to the competent administrative department of environmental protection of the acceptance, the construction project could be put into production or use.

Article 29 The enterprises and institutions caused severe environmental pollution shall be under control within a time limit.

Article 31 The units caused or likely cause pollution accidents due to accidents or other exigencies must immediately take measures, promptly inform the units and residents which may impacted by pollution hazards, and report to the local administrative department of environmental protection and the related department for investigation and settlement. The enterprises and institutions which likely cause severe pollution accident shall take measures to strengthen the prevention.

Article 33 The production, storage, transportation, sale and usage of toxic chemicals and materials containing radioactive substances must comply with the relevant state provisions so as to prevent environmental pollution.

Law of the People's Republic of China on Environmental Impact Assessment

Article 02 The “Environment Impact Assessment” in this law means the monitoring method and system to analyze, anticipate and assess the possible environment impacts after the implement of planning and construction projects, and raise the countermeasures and measures to prevent or alleviate adverse impacts on the environment.

Article 16 According to the environmental influence level of construction projects, the Nation implements classification management to environmental impact assessment of construction projects.

Article 21 Despite the circumstances that state regulates to be kept secret, for the construction project which possiblly have a significant impact on the environment and which shall prepare the environmental impact report, the construction unit shall hold discussion meeting, hearings, or take other forms, to ask for the opinions of relevant units, experts and public before the approval of the environmental impact report on the construction project.

Article 24 After the approval for the environmental impact assessment report on construction projects, if the nature, the construction scale, place, the production craft or prevent pollution, prevent to ecological destruction of the measures of the project have a significant change, the construction unit shall apply for the approval for the environmental impact assessment file of the construction projects again.

Article 27 When it is not in agreement with the approved of environmental impact assessment file during project construction and operation process, the construction unit shall organize the environmental impact pro-assessment, take measures for the improvement, and submitted to the original environment impact assessment documents for examination and approval departments and construction project examination and approval departments for the record; The original environment impact assessment documents for examination and approval department could also urge the construction unit to undergo the environment impact pro-assessment and take measures for the improvement.

Article 28 The competent administrative department of environmental protection of construction projects shall track and inspect the environmental impact of the construction projects put into production, and check out the reason and the responsibility to those cause serious environmental pollution or ecological destruction.

Law of the People's Republic of China on Prevention and Control of Water Pollution

Article. 03 Prevention and control of water pollution shall insist the principle of combining and comprehensive governance, priority of protection and drinking water sources, strictly control industrial pollution and urban life pollution, agricultural non-point source pollution prevention and control, and actively promote the construction project of ecological treatment to prevent, control and reduce the water environment pollution and ecological destruction.

Article 09 Where atmospheric pollutants are discharged, the concentration of the said pollutants may not exceed the national or local standards on water pollution emission and the total amount control guideposts on the key water pollution emission.

Article 13 Those who discharge pollutants into any water body for which local standards have been established shall observe such local standards.

Article 17 New construction projects and expansion or reconstruction projects and other installations on water that directly or indirectly discharge pollutants to water bodies shall be subject to relevant State regulations governing environmental protection for such projects. The facilities for prevention and control of water pollution must be designed, constructed and put to use or into operation simultaneously with the main part of a construction project. Such facilities must be inspected by the environmental protection department. If they do not conform to the specified requirements, the said project shall not be permitted to be put into operation or to use.

Article 18 The State implement the regulation on total amount control to the key water pollution emission.

Article 20 The State implement the regulation on pollutant discharge permission.

Article 29 It is forbidden to discharge any oil, acid or alkaline solutions or deadly toxic liquid waste into any water body. It is forbidden to wash and clean in any water body any vehicles or containers which have been used for storing oil or toxic pollutant.

Article 33 It is forbidden to discharge or dump industry waste residues, urban refuse or other wastes into any water body.

Article 35 It is forbidden to discharge or dump waste water containing toxic pollutants or pathogens or other wastes into seepage wells or pits, crevices or karat caves.

Article 36 At places where no satisfactory impervious strata exist, it is forbidden to use ditches, pits or ponds devoid of safeguards against seepage for conveyance or storage of waste water containing toxic pollutants or pathogens, or of other wastes.

Article 40 The relevant departments under the state council and the local people's government at or above the county level shall be reasonable planning industrial layout, and require enterprises to update the technology and take the integrated prevention and control measures, improve utilization efficiency of water and decrease the discharge of waste water and pollutants.

Article 41 The State shall institute a system for eliminating outdated production techniques and equipment which seriously pollute the water environment. Manufacturers, sellers, importers and users must, within the time limit fixed by the competent department for comprehensive economic and trade affairs under the State Council together with the relevant departments under the State Council, stop manufacturing, selling, importing or using the equipment listed in the catalogue mentioned in the preceding paragraph. Users of the production techniques listed in the catalogue mentioned in the preceding paragraph must stop using such production techniques within the time limit fixed by the competent department for comprehensive economic and trade affairs under the State Council together with relevant departments under the State Council.

Article 42 The State shall forbid construction of any small enterprises, devoid of measures for prevention and control of water pollution, that seriously pollute the water environment, such as chemical pulp mills, printing and dyeing mills, dyestuff mills, tanneries, electroplating factories, oil refineries and pesticides manufacturers.

Article 43 Enterprises shall employ clean production techniques that facilitate high utilization efficiency of raw and semi-finished materials and reduced discharge of pollutants and improve management to decrease water pollutants.

Article 67 If a pollutant discharging unit, as a result of an accident or other exigency, discharges pollutants in excess of normal quantities and thus causes or may possibly cause a water pollution accident, it shall immediately take emergency measures, inform such units as are likely to be endangered or damaged by the water pollution and report the matter to the local environmental protection department.

Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution

Article 02 The State Council and the local people's governments at various levels must incorporate the protection of the atmospheric environment into their national economic and social development plans, make rational plans for the distribution of industrial layout, strengthen the scientific research on the prevention and control of atmospheric pollution, adopt preventive and curative measures against atmospheric pollution, and protect and improve the atmospheric environment.

Article 03 The State takes measures to control or gradually reduce, in a planned way, the total amount of the main atmospheric pollutants discharged in local areas. The local people's governments at various levels shall be responsible for the quality of the atmospheric environment under their own jurisdictions, making plans and taking measures to make the quality of the atmospheric environment under their own jurisdictions meet the prescribed standard.

Article 13 Where atmospheric pollutants are discharged, the concentration of the said pollutants may not exceed the standards prescribed by the State and local authorities.

Article 15 With regard to the regions not meeting the prescribed standards for the quality of atmospheric environment and the acid rain control areas and the sulfur dioxide pollution control areas designated as such with the approval of the State Council, the State Council or the people's government of provinces, autonomous regions and municipalities directly under the Central Government may delimit them as the major areas for the total emission control air pollutants. The concrete measures for the State Council shall prescribe the total emission control of major air pollutants. The local people's government concerned in the areas for the control of total emission of air pollutants shall check and approve the total emission of major air pollutants by enterprises and institutions and issue them licenses for emission of major air pollutants. It shall do this in accordance with the conditions and procedures provided by the State Council and in line with the principles of openness, fairness and impartiality. The enterprises and institutions obliged to control their total emission of air pollutants must emit their pollutants according to the checked and approved standards for the total emission of major air pollutants and the conditions of emission provided by the license.

Article 26 The State adopts economic and technical policies and measures conducive to the clean utilization of coal, encourages and supports the consumption of fine coal of low-sulfur or low-ash, and encourages and supports the development and popularization of the technology of coal cleaning.

Article 30 Where any newly built or expanded thermal power plants and other large or medium-sized enterprise that discharge sulfur dioxide more than the prescribed standards for pollutants discharge or the quota of total control allow, supporting facilities for desulphurization and dust removal must be installed or other measures for controlling the discharge of sulfur dioxide or for dust removal must be adopted. In the acid rain control areas or sulfur dioxide pollution control areas, if an existing enterprise discharges atmospheric pollutants more than the standards for pollutants discharge allow, the discharge of atmospheric pollutants of the enterprise shall be controlled within a time limit. This will be in accordance with the provisions of Article 48 of this Law. The State encourages enterprises to adopt advanced technology for desulphurization and dust removal. Enterprises shall gradually adopt measures to control the nitrogen oxide generated by the burning of fuel.

Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes

Article 03 The State shall, in preventing and controlling environmental pollution by solid waste, implement the principles of reducing the discharge of solid waste, fully and rationally utilizing solid waste, and making it hazardless through treatment.

Article 04 The State encourages and supports clean production and reduced discharge of solid waste. The State encourages and supports the comprehensive use of resources, full recovery and rational utilization of solid waste, and adopts economic and technical policies and measures that facilitate the comprehensive use of solid waste.

Article 05 The State encourages and supports adoption of measures for centralized treatment of solid waste in favor of environmental protection.

Article 20 Installations and sites built for storage or treatment of industrial solid waste must comform to the standards for environmental protection prescribed by the competent administrative department of environmental protection under the State Council.

Article 27 The competent department in charge of comprehensive administration of economic affairs under the State Council shall, jointly with other relevant departments under the State Council, organize the research, development and dissemination of the production techniques and equipment that will serve to reduce the discharge of industrial solid waste, and promulgate the list of backward production techniques and equipment that discharge industrial solid waste causing severe environmental pollution and that should be eliminated within a specified period of time. Producers, sellers, importers or users must stop producing, selling, importing or using the equipment included in the list stipulated in the preceding paragraph within the period of time specified by the competent department in charge of comprehensive administration of economic affairs in conjunction with other relevant departments under the State Council. Users of the production techniques must stop the process techniques included in the list mentioned in the preceding paragraph within the period of time specified by the competent department in charge of comprehensive administration of economic affairs jointly with other relevant departments under the State Council. Equipment eliminated in accordance with the preceding two paragraphs shall not be transferred to another for use.

Article 49 Units engaged in collection, storage and treatment of hazardous waste must apply to the competent administrative department of environmental protection of the people's government at or above the county level for the operation license. Specific measures for the administration thereof shall be prescribed by the State Council. It is forbidden to collect, store or treat hazardous waste without an operation license or against the provisions of the operation license. It is forbidden to supply or entrust hazardous waste to units that do not have the operation license for collection, storage and treatment.

Law of the People's Republic of China on the Prevention and Control of Environmental Noise Pollution

Article 13 Every project under construction, renovation or expansion must conform to the regulations of the State governing environmental protection. Where a construction project might cause environmental noise pollution, the unit undertaking the project must prepare an environmental impact statement which includes the measures it takes to prevent and control such pollution, and submit it, following the procedures prescribed by the State, to the competent administrative department for environmental protection for approval. The environmental impact statement shall include the comments and suggestions of the units and residents in the place where the construction project is located.

Article 14 Facilities for prevention and control of environmental noise pollution must be designed, built and put into use simultaneously with the main part of a construction project. Before a construction project is put into production or use, its facilities for prevention and control of environmental noise pollution must be inspected by the competent administrative department for environmental protection that originally approved the environmental impact statement; if such facilities fail to meet the requirements of the State, the construction project may not be put into production or use.

Article 15 Enterprises and institutions that produce environmental noise pollution must maintain normal operation of the facilities for prevention and control of such pollution; whoever intends to dismantle or leave idle such facilities must report the matter in advance to the competent administrative department for environmental protection of the local people's government at or above the county level for approval.

Water Law of the People's Republic of China

Article 04 The development and utilization of water resources and the prevention and control of water disasters shall be carried out by comprehensive planning with all factors taken into consideration, and with emphasis on multipurpose use and on achieving maximum benefits so as to give full play to the multiple functions of water resources.

Article 08 The state strictly practises to save water, to push water conservation measures, to promote new technology and process of water saving, to develop industry, agriculture and service industry of water-saving,and to establish water-saving society. People's governments at various levels shall strengthen the management of the economical use of water. All units shall adopt advanced technology for the economical use of water, reduce water consumption and raise the frequency of the reuse of water. Units and individuals have the obligation to saving water.

Law of the People's Republic of China on Clean Production Promotion

Article 02 Cleaner production as used in this Law means the continuous application of measures for design improvement, utilization of clean energy and raw materials, the implementation of advanced processes, technologies and equipment, improvement of management and comprehensive utilization of resources to reduce pollution at source, enhance the rates of resource utilization efficiency, reduce or avoid pollution generation and discharge in the course of production, provision of services and product use, so as to decrease harm to the health of human beings and the environment.

Article 12 The nation shall implement a time-limited system for the elimination of obsolete or obsolescent production technologies, processes, equipment and products gravely hazardous to environments and wasteful of resources.

Article 18 New construction, construction renovation and expansion projects shall conduct environmental impact assessments with respect to analysis and assessment of use of raw materials, resource consumption, comprehensive utilization of resources, as well as generation of pollutants and their treatment; shall accord priority to adopting cleaner production technologies, processes and equipment, which maximize the resource utilization rate and generate few pollutants.

Article 19 Enterprises in the course of technological upgrades shall adopt the following cleaner production measures: (1) Adopting toxin-free, non-hazardous or low-toxin and low-harm raw materials to replace toxic and hazardous raw materials; (2) Adopting processes and equipment with high resource utilization rates and little pollutant-generation to replace processes and equipment with high resource consumption and significant generation of pollutants; (3) Comprehensive use or recycling of materials such as waste products, waste water and heat generated from production procedures; (4) Adopting pollution prevention and control technologies sufficient to permit the enterprises to comply with national or local pollution discharge standards and total volume control quotas for pollutants.

Article 28 Enterprises shall monitor resource consumption and generation of wastes during the course of production and provision of services, and conduct cleaner production audits with respect to production and service procedures according to need. Enterprises that exceed the national or local discharging standards or exceed the total volume control targets for pollutants set by the relevant local people's governments shall conduct cleaner production audits. Any enterprise using toxic and hazardous materials in production or discharging toxic and hazardous substances shall periodically conduct cleaner production audits, and report the audit results to the relevant administrative departments for environmental protection and the relevant departments for economic and trade under the local people's government at or above county level. The administrative procedures for conducting cleaner production audits shall be formulated by the relevant departments for economic and trade under the State Council jointly with the relevant administrative department for environmental protection under the State Council.

Interim Procedure on the Public Participating in Environmental Impact Assessment

Article 08 As for the construction projects in environment sensative region regulated in “Classified Catalogue for Environmental Impact Studies of Construction Projects”, which need the environment impact assessment report, the construction unit shall announce the following information to public, within a week after determining the institution for environment impact assessment: (1) The name and schema of construction project; (2) The name and contact of the construction unit for construction project; (3) The name and contact of the organization for environment impact assessment; (4) The procedure and main content of environment impact assessment; (5) The main terms to ask for public opinions; (6) The main methods for public to propose.

Article 12 After the information announcemennt and the abridged edition of environment impact assessment report published, the construction unit or the commited organization for environment impact assessment shall take measures of inquiry of public opinion, expert consultant, discussion meeting and hearing to ask for public opinion. The duration to ask for pubic opinion must be more than 10 days and the public related information must be kept public during the whole duration. The construction unit or the commited organization for environment impact assessment could reply the management status of the suggestion raised by public before environment impact assessment report sent to Administrative departments of environment protection to approve or re-approve.

Regulation of the Guangxi Zhuang Autonomous Region on Environmental Protection

Article 12 It is forbidden to pile up, dump or treat solid wastes, oil materials, pollutants including pathogens, and other hazardous and noxious pollutants in scenic or historic sites, nature protection zones, protection zones for drinking water sources, forest parks, fishery water bodies, the protection zones for farmland and other zones for special protection demarcated according to law. Where the piling up, dumping or treatment exist, shall eliminate with the time of limit.

Article 26 The pollutant discharging unit and individual shall carry out the registration of pollution to the local environmental protection authority, in accordance with the discharge of pollutants the relevant provisions on the administration of registration of declaration. If the type, quantity, concentration, strength discharge of pollutants have significant changes or the way to pollutant emissions change, afresh drainage for registration shall be dealt timely to the local environmental protection department.

Article 29 The construction project which has influence to environment shall implement “the facilities for environment protection must be designed, constructed and put to use or into operation simultaneously with the main part of a construction project”, according to related regulations of the state and autonomous region. The total investment for construction of the project shall ensure that the relevant pollution prevention and control of the construction of infrastructure investment. Construction projects before in trial-produce, its construction with environmental protection facilities shall be with the main body of the project and put into use. Pollution prevention and control facilities shall be the competent department of environmental protection of the acceptance, the construction project may be put to use.

Prevention and Control Measures of Nanning City on Sulfur Dioxide Pollution of Coal

Article 10 In the administrative areas of this municipality , it is forbidden to directly fuel the coal including more than 3% of sulphur content. If countries otherwise stipulated with the sulphur content of coal power, the provisions shall apply. For supply shortages, and other special reason, have already installed on-line monitoring device of more than 35 tons/hr when coal boiler, the desulfurization of supporting facilities desulfurization rate above 90%, and in the environmental protection department within the time limit prescribed by the sulphur content in peat can be directly not more than 5% of the coal.

Article 14 The unit and individual which discharge sulfur dioxide shall report the concentration of gas smoke, coal in sulfur removal efficiency, solid, and the related data to the local administrative department of environmental protection declaration of sulfur dioxide facilities (or method) and treatment facilities under normal operation conditions of sulfur dioxide emissions, and accept supervision and inspection of the administrative department of environmental protection. Sulfur dioxide smoke gas, concentration, sulphur content in coal desulfurization rate and solid, desulfurization facilities have significant change, it shall promptly declared. When coal boiler and sulfur dioxide pollution of the boiler more than 35 tons/hr, it shall be installed in accordance with provisions or the kiln of atmospheric pollutants on-line monitoring device, and with the competent administrative department of environmental protection monitoring system networking, real-time transmission air pollutant emission information data.

Law of the People’s Republic of China on Energy Saving

Article 03 The term "energy conservation" as used in this Law means: enhancing management in the use of energy; adopting measures which are technologically feasible, economically rational, and, by reducing loss and waste at every stage from production through to consumption of energy, environmentally and socially acceptable in order to use energy more efficiently and rationally.

Article 07 The State formulates industry policies in favor of energy conservation and environment protection, restrict the development of the industry with highly energy-consuming and highly environment pollution and develop the environment-friendly enterprise. The State Council and the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government shall strengthen their efforts in energy conservation; readjust in a rational way the industrial structure, pattern of enterprises, product mix and pattern of energy consumption; facilitate technological progress for energy conservation; reduce energy consumption per unit output value and per unit product; and improve the exploitation, processing, conversion, transmission and supply of energy so as to gradually increase the utilization rate of energy. The State encourages the development and utilization of new and renewable resources of energy.

Article 16 The State applies an elimination system for outdated and highly energy-consuming products and equipment. A catalogue of highly energy-consuming products and equipment to be eliminated shall be decided on by the administrative department for energy conservation under the State Council together with the relevant departments under the State Council and made known to the public. Units that manufacture energy-consuming products shall comply with the quota set for energy consumption per unit product according to law. Units that use energy exceeding the quota for energy consumption per unit product to a serious extent shall be required to solve the problem within a time limit.

Article 30 The competent department in charge of energy conservation under the State Council shall, jointly with other relevant departments under the State Council, formulate the energy conservation policies of the main energy consuming industries of electric power, steel, nonferrous metal, building materials, oil processing, chemical, coal, and promote the energy technique update of enterprise,

Census Regulations on National Pollution Source

Article 03 The term "Pollution Source" as used in this regulation means: the premises, facilities, equipment which discharge pollutants to the environment due to production, life and other activities, and other pollution sources.

Article 08 The object for census on pollution sources is the units and individual businesses of the People's Republic of China, , which have pollution sources

Article 10 The scope of the census on polution sources includes: Industrial pollution, agricultural pollution sources, life source, centralized pollution treatment facilities and other generation, the discharge of pollutants facilities.

Article 11 The main content of the census on industrial pollution sources includes: basic registration information of enterprise the consumption of raw materials, product production conditions, produce pollution situation of the facilities, all kinds of pollutants, control and emissions and comprehensive utilization situation, all kinds of pollution control facilities construction, operation and so on.

Article 20 The large- and medium-sized industrial enterprise in the census scope shall appoint related institutions to be responsible to the work of flling and submit the census chart of pollution source inquiry, and other units shall designate personnel to take charge of this work.

Interim Measures for Clean Production

Article 02 Clean production check” as mentioned in these Measures shall mean the process of following certain procedures to investigate into and diagnose the production and service process so as to find out the causes of high energy consumption, high material consumption and heavy pollution and to render solutions for reducing the use and production of toxic or harmful materials and decreasing energy consumption, material consumption and wastes, and therefore to select the technically, economically and environmentally feasible clean production plans.

Article 03 This measure shall apply to the People's Republic of China all engaged in production and service activities units and related management activities in the department.

Article 08 In the following situation, it shall implement compulsory cleaner production check: the enterprise which use the poisonous and harmful material in production or discharging toxic and harmful material. Toxic and harmful materials or substances mainly means: virulent and strong corrosive, strong excitant, radioactive (not including nuclear power facilities and military nuclear facilities), cancer, teratogenic substances in the " The List of Dangerous Commodity " (GB12268), and "the Directory of Hazadous Chemicals”, “The National Hazardous Waste List" and "Poisonous Chemicals List”.

Regulations on Collection and Usage of Sewage Fee

Article 02 The unit and individual which directly discharge pollutants to the environment (referred to as the discharger) shall, in accordance with the provisions of these regulations pay the fees. The dischargers, who discharge to the facilities for central treatment of urban sewage discharge sewage and pay the fees for sewage treatment, shall not pay pollutant discharge fee again.

Article 06 The dischargers shall, in accordance of the regulation of environmental protection departments under the state council, declare the types, volume, and provide the relevant information to the competent administrative department, the local people's government at or above the county level to the competent administrative department of environmental protection of pollutants discharged.

Article 10 When dischargers use automatic monitoring instrument of state provisions cracks compulsory verification pollutant emission of pollutants for monitoring, the monitoring data shall be viewed as the basis of the types, volume of pollutants. The automatic monitoring instrument with installation of dischargers shall, in accordance with law, be regular checked.

Article 12 The dischargers shall pay the pollutants discharge fee in accordance of following rules: (2) In accordance with the provisions of “The Law of Water Pollution Prevention and Control”, who discharge pollutants, according to the types and the quantity of the discharge of pollutants, pay the fee; Who discharge pollutants in excess of the national or local the prescribed discharge standards, pay the fee proportional to the types and the quantity of the discharge of pollutants,

Regulations on the Administration of Construction Project Environmental Protection

Article 03 State standards and local standards for the discharge of pollutants must be complied with in building construction projects that generate pollution; requirements for aggregate control of discharge of major pollutants must be met in areas under aggregate control of discharge of major pollutants.

Article 04 Industrial construction projects should adopt clean production techniques with low energy consumption, low materials consumption and low pollutants generation, rationally exploit natural resources to prevent environmental pollution and ecological damage.

Article 05 Measures must be taken in reconstruction, expansion projects and technological transformation projects to treat original environmental pollution and ecological damage related to the said projects.

Article 07 The state practises classified control over construction project environmental protection in accordance with the extent of environmental impact of construction projects in pursuance of the following provisions: (1) a report on environmental impact should be compiled for a construction project that may cause major impact on the environment, giving comprehensive and detailed evaluation of the pollution generated and environmental impact caused by the construction project; (2) a statement on environmental impact should be compiled for a construction project that may cause light impact on the environment, giving analysis or special-purpose evaluation of the pollution generated and environmental impact caused by the construction project; (3) a registration form should be filled out and submitted for a construction project that has slight impact on the environment and necessitates no environmental impact evaluation.

Article 16 Simultaneous design, simultaneous construction and simultaneous going into operation with the main body project must be realized for matching environmental protection facilities construction which is required for the construction project.

Article 19 The construction unit shall, during the trial production of a construction project, monitor the operations of the environmental protection facilities and the environmental impact of the construction project.

Regulations on Safety Management of Hazardous Chemicals

Article 03 “Dangerous chemicals” as referred to herein include explosives, pressure gas, liquefied gas, inflammable liquid, inflammable solid, spontaneous combustible articles, combustible materials in case of moisture, oxidants, organic peroxide, toxic articles, corrosives, etc.

Article 04 The personnel chiefly in charge of units that manufacture, deal in, store, transport, and use the dangerous chemicals and dispose of the wasted dangerous chemicals (hereinafter referred to as the “units of dangerous chemicals”) must guarantee the safety control for their own dangerous chemicals satisfy provisions of the relevant laws, regulations, and rules, as well as requirements of the national standards, and be responsible for the safety of their own dangerous chemicals. The personnel engaging in the manufacture, operation, storage, transportation, use of dangerous chemicals or disposal of wasted dangerous chemicals of the units of dangerous chemicals must take part in the training for the relevant laws, regulations, rules, safety knowledge, professional skills, vocational safety protection, and emergency knowledge. Only those passing the examination may hold their posts.

Article 15 The production conductions of units engaging in the manufacture of dangerous chemicals must fulfill the national standards and the relevant provisions of the State, and these units shall obtain the corresponding licenses in accordance with the relevant laws and regulations of the State, must establish and strengthen the regulations and rules on the safety control over the use of dangerous chemicals, and guarantee the safe use and control over dangerous chemicals.

Article 16 Whoever manufactures, stores, or makes use of dangerous chemicals shall, according to the varieties and characteristics of dangerous chemicals, set up the corresponding safety facilities and equipment for monitoring, ventilation, burning resistance, tempering, fireproofing, fire control, explosion protection, pressure relief, antitoxin, disinfections, neutralization, moisture prevention, lightning protection, static electricity resistance, antisepsis, seep-proofing, reclamation dam protection, or isolated operation in the workshops and operating sites, maintain and protect them in accordance with the national standards and the relevant provisions of the State, and guarantee that they satisfy the requirements on safe operation.

Article 17 A unit that manufactures, stores, or makes use of hyper-toxic chemicals shall conduct safety evaluation of its own manufacturing or storage installations once a year. A unit that manufactures, stores, or makes use of other dangerous chemicals shall conduct the safety evaluation of its own manufacturing or storage installations once two years.

Article 18 Units that manufacture, store, and use dangerous chemicals shall set up the communication and alarming installations in the manufacturing, storage, and use places, and guarantee their normal applicable conditions under any circumstances.

1.3.2 Technical guidelines and specifications

(1) “Technical guidelines for environmental impact assessment”- general programme (HJ/T2.1-93);

(2) “Technical guidelines for environmental impact assessment”- atmospheric environment (HJ2.2-2008);

(3) “Technical guidelines for environmental impact assessment”-surface water (HJ/T2.3-93);

(4) “Technical guidelines for noise impact assessment”(HJ2.4-2009);

(5) “Technical guidelines for ecological impact assessment”- ecological environment (HJ19-2011);

(6) “Technical guidelines for environmental risk assessment on projects” (HJ/T169-2004);

(7) “Technical specifications requirements for monitoring of surface water and waste water” (HJ/T91-2002);

(8) “Technical requirements for monitoring of total amount of pollutants in waste water”

(HJ/T92-2002);

(9) “Technical specifications for environmental monitoring of ground water ” (HJ/T164-2004);

(10) “Manual methods for ambient air quality monitoring” (HJ/T194-2005);

(11) “Technical guidelines for fugitive emission monitoring of air pollutants” (HJ/T55-2000);

(12) “Principle and technical methods for regionalizing ambient air quality function”《 (HJ/14-1996);

(13) “Technical specifications to determinate the suitable areas for environmental noise of urban area”(GB/T15190-94);

(14) “Technical regulation on water and soil conservation plan of development and construction projects” (Ministry of Water Resources issued in February 1998);

(15) World Bank Group “Environmental, Health and Safety Guidelines-

Related technical guidelines and main content for domestic projects was shown in Table 1.3-2.

Table 1.3-2 List of Related Technical Guidelines in China

Name

Content

Technical Guidelines for Environmental Impact Assessment- General Programme

(HJ/T 2.1-93)

This guideline demonstrated general principles, methods, contents and requirements for the environmental impact assessment of construction projects. The applicability of this guideline includes environmental impact assessment of corporations, enterprise and other institutions. Environment impact assessment of other construction projects can also refer to the basic principles and methods of this guideline.

Technical Guidelines for Environmental Risk Assessment on Projects

(HT/T 169-2004)

This guideline demonstrated purpose, basic principles, contents, procedures and methods for environmental risk assessment of the construction projects. The applicability of this guideline includes that environmental risk assessment of the newly built, rebuilt, expansion and technical renovation programs, involving production, use, storage and transportation of poisonous and harmful and flammable materials. The projects of new construction, alteration, extension and technical transformation, mainly referred to chemical raw materials and chemical manufacturing, oil and natural gas production and refining, chemical manufacturing, chemical fiber information manufacturing, smelting non-ferrous metal processing, mining, building materials, and other newly built, rebuilt, expansion and technical reconstruction project in “The List for Environmental Protection of Construction Projects” issued by the state environmental protection administration.

Technical Guidelines for Environmental Impact Assessment-Surface Water

(HJ/T2.3-93)

This guideline demonstrated the principles, methods and requirements for environment impact assessment of the surface water. The applicability of this guideline includes surface water enviroment of corporations, enterprise and other institutions. Environment impact assessment of other construction projects can also refer to the basic principles and methods of this guideline. Evaluation work could be divided into 3 grades. This guideline presented necessary water quality terms, especially for pulp and paper industry, including ph value (or alkalinity), COD, BOD, suspended matter, water temperature, volatile phenol, sulfide, lead, mercury, lignin, chroma.

Technical Guidelines for Environmental Impact Assessment”- Atmospheric Environment

(HJ 2.2-2008)

This guideline demonstrated general principles, methods, contents and requirements for the atmospheric environmental impact assessment of construction projects. The applicability of this guideline includes atmospheric environmental impact assessment of construction projects. Atmospheric environment impact assessment of regions and plannning area can also refer to the basic principles and methods of this guideline

Technical Specifications Requirements for Monitoring of Surface Water and Waste Water

(HJ/T 91-2002)

This guideline demonstrated contents including points and sampling of the surface water and wastewater monitoring, monitoring project and the corresponding monitoring analysis method, the basin monitoring, data processing and report, sewage flow measurement methods, quality guarantee for water quality monitoring, material reorganized, etc. In addition, it also provides the basic method of the pollution total amount control monitoring construction project, sewage treatment facilities completion acceptance of environmental protection monitoring and emergency monitoring. This guideline presented necessary detecting iterms of paper and paper industry, including acidity (or alkalinity), COD, BOD5, can remove organic halide (AOX), pH, volatile phenol, suspended matter, chroma, sulfide. The optional iterms are lignin and the oil.

Technical Specifications Requirements for Monitoring of Ambient Air Quality (Trial Implementation)

(State Environmental Protection Administration No.4, 2007)

This specification demonstrated the requirements for the design of environmental air quality monitoring network and monitoring sites set, the method and technical requirements for environmental air quality manual and automatic monitoring, and management and processing requirements for the environmental air quality monitoring data. The applicability of this specification is environment air quality monitoring activities of national and local competent administrative department of environmental protection to confirm air environmental quality condition and prevention and control of air pollution.

Technical Specifications Requirements for Monitoring of Soil Environment

(HJ/T 166-2004)

This specification demonstrated the technical content including sampling and points of soil environmental monitoring, sample preparation, analysis methods, results characterization, statistics and quality evaluation. The applicability of this specification is monitoring for national and regional soil background, farmland soil environment, construction project soil environmental assessment, soil pollution accident, and other types.

Environmental, Health and Safety Guidelines-Pulp and Paper Mills

(World Bank Group, December 10th, 2007)

The guidelines for pulp and paper technology made an environment-friendly selection,the main environmental impact of pulp and paper was divided into water, gas and slag; the technology was definited and recommended;

And the classification parameters for practicality and applicability were given. It includes methods and management that were frequently used and proved to be effective, and that could actually reduce damage degree for environment. The guideline also gave the guidance parameters for pollutants emission control and energy consumption, and considered the possibility and effectiveness for the cost control. In the practice, it provided a bigger flexibility. It provided available reference and guidance for the best feasibility of practice and management in environment, health and production of the manufacturing.

1.4 Assessment level and Scope

1.4.1 Assessment period

Based on the characteristics of this technology upgrade, the assessment is divided into two periods: construction period and operation period.

1.4.2 Assessment level

Refer to table 1 for the determination of level of project environmental impact assessment prepared on the basis of project construction scope, characteristics of project, regional environmental characteristics, the degree and scope of impact of this project on environment during construction period and operation period, and based on the classification method of assessment level in “Technical guidelines for environmental impact assessment”.

Table 1: Assessment level

Assessment content

Level

Basis

Actual situation of project construction

Surface water

II

According to HJ/T2.3-93, the amount of emitted waste water > 20000 m3/d. the waste water is simple in content. The surface water is river water with the quality of level III.

the amount of emitted waste water is 15967m3/d(Excluding Mei Heng An Xing Co,Ltd.). the major pollutants in waste water is Non-POPs and the there are three pollution factors requiring concentration prediction which are COD、BOD5、DO

Air environment

III

According to HJ2.2-2008,the pollutant Pi < 2.5 × 108 m3/h. Hill area.

SO2:Q=0.098t/h

C=0.50 mg/m3

Pi =1.96×108m3/h

Noise

III

According to HJ/T2.4-2009, the area where project locates is level III area. This project is medium scale with the increase of noise level before and after construction no more than 3 dB(A), and little change in impacted population.

The assessment area complies with “Environmental quality standard for noise” and there are mainly industrial enterprises, villages and cultural and education agencies in assessment area.

Risk

II

According to” Technical guidelines for environmental risk assessment on projects” (HJ/T169-2004), there is no major danger source.

The hazardous objects of this project are not major danger source

Ecological environment

III

According to HJ19-2011,the impact scope of this project shall <2km2,and there is no targets requiring special protection in project area.

The new added land of this project is 0.05km2, with no basic farm land. the impact scope of this project shall <2km2,and there is no targets requiring special protection in project area.

1.4.3 Assessment Scope

(1) Air environment

The major waste gas pollution sources of this technology upgrade are odorous gas and methane generated from waste water treatment station. The air assessment scope shall be centered with project site and expand to 3000 m near the factory.

(2) Surface water

There is one waste water outlet-outlet No. 1-on Yongjiang River. The waste water is emitted through 1#outlet after treatment in waste water station and meeting the requirements of standards.

The scope of this surface water assessment is:

From 500 m upstream above 1#outlet and 18 km downstream under 1# outlet of Yongjiang, with the length of 18.5 km.

(3) Noise

Sensitive points shall be set in factory and within 300 m from the factory.

(4) Ecological environment

According to “Technical guidelines for ecological impact assessment”- ecological environment (HJ19-2011), the impact of this project on ecological environment shall be conducted within the scope of within 1 km from this project.

1.5 Assessment emphasis and methods

(1) Discuss emission plan for waste water, conduct technical and economic discussion on waste water treatment measures, and propose reasonable suggestions through monitoring and analyzing the degree and scope of impact of generated waste water on accepting water body.

(2) Implement the principles of clean production. Assess, discuss and analyze the advance of production technique and completion of environmental protection measures with the indicators of material consumption, energy consumption and pollutant emission per unit product as well as water reuse rate of the whole factory on the basis of sufficient investigation, thus to propose measures of clean production.

(3) Conduct technical and economic discussion on waste gas treatment measures propose reasonable suggestions through analyzing effective dioxin reduction amount, monitoring the degree and scope of impact of fugitive odorous gas on ambient air and ecological environment.

(4) Pollutant emission after meeting requirements in standards and total amount control. On the basis of understand regional total amount control quotation plan, analyze the feasibility of Pollutant emission after meeting requirements and propose pollutant total amount control plan through pollutant source monitoring with combination of plan design of Technology Upgrade Project of New Bleaching Technique and Energy-conservation and Emission-reduction.

1.6 Environmental protection goals and sensitive points

1.6.1 Environmental protection goals

There are no scenic spots and natural reserves within 1 km from the factory and no sensitive points and targets such as cultural relics and historic sites are found.

The determination of project environmental protection goals shall take into consideration of factors such as population, social economy, historical and cultural background, and environmental quality. Refer to table 2 for specific environmental protection goals of this assessment.

Table 2: Environmental protection goals

Environmental medium

Environmental protection goals

Protection level

Surface water

Water quality in Bachi River and Yongjiang River

Level III

Air

Resident areas around the factory

Level II

Noise

Resident areas around the factory

Level II

1.6.2 Environmental sensitive points

There are eight environmental sensitive points such as Nanning No. 43 Senior School around the factory. Refer to attached Diagram 3 (p. 228) for the details of distribution of sensitive points near the factory. Refer to table 3 for general situations of each sensitive point.

Table 3: General situations of sensitive points around the factory

No.

Name of sensitive point

Relative direction with the factory and shortest straight-line distance from the factory (km)

Relative direction with bagasse storage yard and shortest straight-line distance from bagasse storage yard (km)

Relative direction with the waste water treatment station and shortest straight-line distance from the boundary of waste water treatment station (km)

General situations

1

Dormitory area of the factory

North, side upwind, 0.1km

North, side upwind, 0.3km

North west,side downwind, 0.4km

Located at the north of production area with Yongheng Road between them. There are hills on the north and a small market in front of the dormitory area.

2

Nanning No. 43 Senior School

West,downwind, 0.4km

West,downwind, 0.4km

West,downwind, approximately 0.7km

There is Yongheng Road in front of the school with large traffic flow. The land is flat. There are about 3400 students and teacher in the school

3

Nail village

South,side upwind, 2km

South,side upwind, 2km

South,side upwind, 2.2 km

There are open field around the village with flat land and population of 220.

4

Social welfare institute of Yongning District

North, side upwind, 0.1km

Northeast, side upwind, 0.7km

North, side upwind, 0.2km

It is located at a slope with Yongheng Road in front. There are about 70 people including staffs, the seniors and orphans.

5

Dormitory of security personnels

Northwest, side downwind 0.8km

Northwest, side downwind 0.9km

Northwest, side downwind, approximately 1.2km

There is Dormitory area of the factory to the southeast and production area and hills on the north with good vegetation. The land level is relatively high.

6

Nanning the first National Normal School

West,downwind, 2.3km

West,downwind, 2.3km

West,downwind, approximately 2.5km

The land is open. There are several teaching and dormitory buildings and about 900 students and teachers.

7

Pumiao Town

Northwest, side downwind, 2km

Northwest, side downwind, 2.1km

Northwest, side downwind, approximately 2.3km

The county town area with dense population of 123 thousand.

8

Namei village

southwest by west, side downwind, 1.6km

southwest by west, side downwind,1.6km

southwest by west, side downwind,1.8km

There are open field around the village with flat land and population of 420.

1.7 Assessment standard

1.7.1 Environmental function zoning

Air quality: ensure the air quality in assessment scope meet the requirements for level II in “Ambient air quality standard (GB 3095-1996)”.

Surface water quality: the area from Yongning Bridge to Niuwan Bridge on Yongjiang River is industrial and agricultural, landscape and shipping area which shall comply with the requirements for level III to level IV in “Environmental quality standards for surface water (GB3838-2002)”. The area from Niuwan Bridge to Liujing is industrial and agricultural and shipping area which shall comply with the requirements for level III in “Environmental quality standards for surface water (GB3838-2002)”.

Noise: level II in “Environmental quality standards for noise (GB3096-2008)”

1.7.2 Environmental quality standards

(1) The air quality shall comply with the requirements for level II in “Ambient air quality standard (GB 3095-1996)” and its revised version. Refer to table 4 for detailed limitation.

Table 4: Concentration limit for each pollutant in “Ambient air quality standard (level II)” (extract)

Pollutant

Period of value

concentration limit (mg/m3)

SO2

Daily mean

0.15

Hourly mean

0.50

TSP

Daily mean

0.30

NO2

Daily mean

0.12

Hourly mean

0.24

Fluoride

Daily mean

0.007

Hourly mean

0.02

(2) The quality of surface water shall comply with the requirements for III in “Environmental quality standards for surface water (GB3838-2002)”.

Refer to table 5 for details.

Table 5: Environmental quality standards for surface water unit: mg/L, no dimension for pH value

Item

Level III of (GB3838-2002)

Item

Level III of (GB3838-2002)

pH value

6~9

Hg

0.0001

DO≥

5

Cd≤

0.005

COD≤

20

Pd≤

0.05

BOD5≤

4

Zn≤

1.0

NH3-N≤

1.0

Cr-VI≤

0.05

SS*≤

30

As≤

0.05

Fluoride (calculated as F—)≤

1.0

Petroleum ≤

0.05

Sulphide ≤

0.2

Sulphate ** (以 SO42- 计)≤

250

Fe**≤

0.3

Mn**≤

0.1

Note: “*” means to take reference to “Quality standards for surface water resources” (SL63-94); “**” means to take reference to the limits in table 2 in “Environmental quality standards for surface water (GB3838-2002)”

(3) The noise quality shall comply with the requirements for level III area in “Environmental quality standards for noise (GB3096-2008)”. The area within 35 m from the traffic road shall comply with the requirements for level 4a. Refer to Table 6 for details.

Table 6: Environmental quality standards for noise (GB3096-2008) unit: dB(A)

Classification

Day

Night

Noise limit (level III)

65

55

Noise limit (level 4a)

70

55

1.7.3 Pollutants emission standard

(1) The emitted waste water from pulp and paper industry shall comply with the requirements in table 2 “pollutants concentration limit in waste water from new constructed enterprise for pulp industry” of “Discharge standard of water pollutants for pulp and paper industry” (GB3544-2008).

Table 7: Emission standard of waste water from paper industry unit: mg/L, except pH value, color degree and dioxin

Table 2 in GB3544-2008 for pulp industry

Emission amount

pH

Color degree

SS

BOD5

CODCr

Ammonia nitrogen

Total nitrogen

Total phosphorus

AOX

Dioxin

50t/t pulp

6~9

50

50

20

100

12

15

0.8

12

30(pgTEQ/L)

Note: in case that production amount of bleached non-wood pulp accounts for more than 60% of the total pulp use amount, the benchmark waste water emission volume per unit product is 60 t/t pulp.

Using the maximum allowed wastewater discharge per ton of air dry pulp produced as indicated in the GB3544-2008, an initial comparison can be made between GB3544-2008 and EHS effluent guidelines, as is shown in Table 7a.

Table 7a Comparison between EHS effluent guidelines and GB3544-2008 (Table 2) discharge standards

Parameters

Units

GB3544-2008

Non-wood

World Bank EHS Guidelines

Non-wood, Annex B-Table 1(l)

pH

6~9

6~9

color

Times

50

/

TSS

kg/Adt

1.62

2

BOD5

kg/Adt

1.08

2

CODcr

kg/Adt

4.86

30

NH3-N

kg/Adt

0.43

/

T-N

kg/Adt

0.65

0.5

T-P

kg/Adt

0.04

0.05

AOX-Workshop

kg/Adt

0.65

Dioxin-Workshop

TEQ ng/Adt

1.62

Wastewater discharge

t/Adt

54

50

It is noted that in the EHS Guidelines, cooling water and other clean water is not included, while they are included in the GB3544-2008. The cooling water and other clean water is actually recycled in the paper mill, resulting dischare only about 1-2m3/ADt, which will not substantially change the quantity and quality of the total discharge. Therefore the basis for the comparision is basically identifcal. The comparision shows the EHS effluent guidelines non-wood pulping process does not have requirements on dioxins and AOX. Because the main manufacture of Pumiao Paper Mill is pulping, without paper making, it was derived from pulping. EHS standard is pulp with air drying, however, Chinese standard is absolute drying. When converse Chinese standards to air drying pulp, the conversion coefficient is 1/0.9. In the Chinese standards, AOX and Dioxin are both detected at workshop exit.

The results also show that generally the Chinese GB3544-2008 standards are more stringent than the EHS effluent guidelines, except that the total nitrogen (TN) and discharge slightly surpass the EHS guidelines. Mill-specific analysis on wastewater is presented in clean production nand impact analysis chapters in this report.

(2) The odorous pollutants generated from this technology upgrade project shall comply with the requirements in “Emission standards for odor pollutants” (GB 14554-1993): the concentration of odorous gas for new and expanded projects ≤20. The particulate matters shall comply with the requirements of level II for new pollution source in “Integrated emission standard of air pollutants” (GB16297-1996). Refer to table 8 for details.

Table 8: Level II of “Integrated emission standard of air pollutants”

Pollutant

Maximum acceptable emission concentration (mg/m3)

maximum acceptable emission rate (kg/h)

Concentration limit for

fugitive emission

Exhaust funnel (m)

Level II

Level III

Monitoring point

Emission concentration (mg/m3)

particulate matter

120(other)

15

3.5

5.0

The point with the highest concentration outside the factory

1.0

The executive standards for boiler waste gas are shown in Table 9.

Table 9: Limit Value for Pollution Discharge Executive Standards of Boiler Waste Gas

Name

Dust or Particles(mg/m3)

SO2

(mg/m3)

NOx

(mg/m3)

The Standards for Atmospheric Pollutants Discharge of Power Plant (GB13223-2003) The 2nd Period(75t/h Boiler)

200*

800*

650

The Standards for Atmospheric Pollutants Discharge of Boiler(GB13271-2001)Zone 2, the 2nd Period, (Alcohol incinerator)

200

900

--

The Standards for Atmospheric Pollutants Discharge of Industrial furnaces(GB9078-1996)Secondary standard(Chemical recovery boiler)

200

--

--

The Standards for Atmospheric Pollutants Discharge of Boiler(GB13271-2001)Zone 2, the 1st Period(25t/h Boiler)

250

1200

--

*: Standards for coal gangue reutilization in boilers. There no specific domestic NOx requirements for 25t/h boiler and alkali recovery boiler due to their small size. But monitoring of the NOx has been conducted regularly to the two boilers by Nanning Enviornmental Monitoring Station.

Mill-specific analysis on air emissions is presented in clean production nand impact analysis chapters in this report.

(3) The noise of this project during construction period shall comply with the requirements in “Noise limits for construction site” (GB12523-1990), refer to Table 10 for details. And the noise of this project during operation period shall comply with the requirements for level III in “Emission standard for industrial enterprise noise at boundary” (GB12348-2008), refer to Table 11 for details.

Table 10: Noise limit for construction site at different construction phase Leq[dB(A)]

Construction phase

Major noise source

Noise limit

Day

Night

Earth and stone work

Bulldozer, excavator, loader, etc

75

55

Pile driving

All kinds of pile driver

85

Construction prohibited

Structure

concrete mixer, vibrator, electric saw etc

70

55

Fitting

Crane, lifter etc

65

55

Table 11: Emission standard for industrial enterprise noise at boundary Leq:dB

Classification

Day

Night

Application scope of this project

Level III in GB12348-2008

standard

65

55

Area around this project

Mill-specific analysis on noise is presented in clean production nand impact analysis chapters in this report.

(4) The storage and disposal of industrial solid waste shall comply with “Standard for pollution control on the storage and disposal site for general industrial solid wastes” (GB 18599-2001).

1.7.4 Other standards

(1) “Hygienic standards for the design of industrial enterprises” (TJ36-79);

(2) “Occupational Exposure Limit for Hazardous Agents in the Workplace” (GBZ 2.1-2007);

(3) “Identification of major hazard installation for dangerous chemicals”

(GB18218-2009);

(4) “Identification standards for hazardous waste-general specifications” (GB

5085.7-2007)。

1.8 Procedure of assessment work

Refer to figure 1 for the EIA procedure of this technology upgrade project.

Figure 1: Procedure of environmental impact assessment of this technology upgrade project

Constrction unit proposes approved

project design plan

Determine the type of environmental impact assessment documents

based on “New Classified Catalogue for Environmental Impact Studies”

1.study national and local laws, regulations and standards concerning environmental protection

2.study technical and other documents related to construction construction

3.conduct preliminary environmental situation investigation and preliminary project analysis

Determine assessment emphasis through environmental

impact identification and assessment factor selection

Determine the level of environmental

impact assessment of each item

environmental impact prediction

assess environmental impact of construction project

1.propose assessment conclusion on environmental feasibility of construction project

2.propose measures and suggestion on environmental protection

3.prepare this statment

Environmental

current situation

investigation

Engineering analysis

of project

Main domestic

laws, regulations

and revelant terms

public participation

the

first

stage

the

second

stage

the

third

stage

If significant changes

are found compared

with preliminary

environmental situation

investigation

if major changes are

found compared with

preliminary project

analysis

2. Alternative plan and technology upgrade project analysis

2.1 Nature and name of project

Project name: Technology Upgrade Project of New Bleaching Technique and Energy-conservation and Emission-reduction of Pumiao Papermaking Factory, Nanning Sugar Manufacturing CO., LTD

Construction site: in Pumiao Papermaking Factory, Nanning Sugar Manufacturing CO., LTD at Yongning District, Nanning city, Guangxi Zhuang Autonomous Region

Project analysis: Technology Upgrade Project

Construction content: construct a new bleaching system with annual treatment capacity of 98 thousand tons bagasse pulp to replace the old No.1 and No.2 bleaching system and a auxiliary 8 t/d chlorine dioxide preparation section; construct an anaerobic wastewater treatment system with the capacity of 11000 m3/d to treat bagasse water. The bleaching system and anaerobic wastewater treatment system have been built in early 2011, and are being commissioned at the moment. The project will construct a deep waste water project with the capacity of 40000 m3/d.

Work system: the working days of the whole year is 340 days. The production workshop is three-shift system. The repair workshop and management department use normally daily work system.

Fixed number of staffs needed: the needed staffs shall be chosen from current staffs after the finish of this project, thus no staffs shall be added.

2.2 General situation before technology upgrade

2.2.1 General situation before technology upgrade

(1) Production technique of 98 thousand tons pulp

Pulp making production line shall be expanded on current production line of 68 thousand tons pulp, the production technique is as following:

(a) Pulp making process

The washed gabasse from material preparation workshop is sent to cooking-ball for cooking trough belt conveyer and the cooked pulp material is sprayed to blow tank and then enter pulp washing section for washing. Coarse pulp from cooking section is washed counter-currently in drum type vacuum pulp washer (four-stage) and extracted black liquor, and the washed coarse pulp is sent to pressure knotter for knot removal and then to high concentration sand separator for sand removal, and then sent to the first stage pressure screen for screening. The good pulp from the first stage pressure screen is sent to vacuum pulp washer for further washing and concentration and stored temporarily in pulp tower after screening waiting for bleaching section. The tail pulp from the first stage pressure screen is sent to the second stage pressure screen for another screening. The good pulp from the second stage pressure screen is sent to the first stage pressure screen in order to reduce fiber loss, and tail pulp from the second stage pressure screen is sent to vibrating flat screen together with tailings from knotter for reuse. The pulp residues can be sold out or burned as fuel. The extracted black liquor is sent to alkali recovery and evaporation section after filtration of black liquor filter.

The concentrated pulp material from washing and screening section is diluted and then sent to pre-bleaching pulp adjustment pool to adjust concentration, and then sent to up-flow chlorination tower after mixture with chlorine in pulp-chlorine mixer. The chloridized pulp is sent to drum type vacuum pulp washer for washing, and the washed pulp enters double shaft mixer. Add NaOH at the spiral part of outlet of pulp washer and add H2O2 and steam at double shaft mixer. Mix well with soup and heat to reaction temperature. The mixed pulp is then sent to alkalization tower for alkalization treatment. Alkalized pulp after dilution is sent to vacuum pulp washer for washing, then the washed pulp with added bleach