China - Waigaoqiao Phase II Power Plant Project : environmental assessment

Environmental Assessment of the Waigaoqiao Phase II Power Plant Project Shanghai Municipality, PRC _~~~ I'repared for Shanghai Municipal Electric Power Company Shanghai,-| Preare B6 -d KBN Engineering and Applied Sciences, Inc. A Golder AssocJtLes Con7ony WVith Asswsanme Frorn May 1997 East China Electric Power Design Institute  * - s iF~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~  SHANGHAI WAIGAOQIAO PHASE II PROJECT ENVIRONMENTAL ASSESSMENT SUPPLEMENT Prepared For: Shanghai Municipal Electric Power Company 181 Nanjing Dong Road Shanghai 200002, P.R. China Prepared By: Golder Associates Inc. 6241 NW 23rd Street, Suite 500 Gainesville, Florida 32653-1500 May 1997 9651118C  a 41 U-  9651118C 5/30/97 TABLE OF CONTENTS (Page 1 of 4) LIST OF TABLES v LIST OF FIGURES viii EXECUTIVE SUMMARY ES-1 1.0 BACKGROUND 1-1 1.1 PURPOSE AND SCOPE OF THE ENVIRONMENTAL ASSESSMENT (EA) MISSION 1-2 1.1.1 WORLD BANK TREATMENT OF THERMAL POWER DEVELOPMENT 1-2 1.1.2 EA BY THE EAST CHINA ELECTRIC POWER DESIGN INSTITUTE (ECEPDI) AND KBN ENGINEERING AND APPLIED SCIENCES, INC. (KBN) 1-3 1.1.3 WAIGAOQIAO POWER PLANT GEOGRAPHIC SCOPE 1-4 1.2 ENVIRONMENTAL. LEGAL. AND REGULATORY FRAMEWORK FOR PROJECT DEVELOPMENT 1-4 1.2.1 PRC LEGAL AND REGULATORY FRAMEWORK 1-4 1.2.2 SHANGHAI MUNICIPAL ENVIRONMENTAL REQUIREMENTS 1-5 1.2.3 WORLD BANK REQUIREMENTS 1-6 1.3 WAIGAOOIAO PHASE H POWER PLANT PROJECT 1-6 1.3.1 INTRODUCTION 1-6 1.3.2 NECESSITY FOR WAIGAOQIAO PHASE II 1-8 1.3.3 WAIGAOQIAO PLANT DESCRIPTION 1-9 2.0 DESCRIPTION OF THE PHYSICAL ENVIRONMENT 2-1 2.1 PHYSICAL ENVIRONMENT 2-1 2.1.1 TOPOGRAPHY, PHYSIOGRAPHY, GEOLOGY AND SEISMICITY 2-1 2.1.2 AIR RESOURCES 2-2  9651118C 5130197 TABLE OF CONTENTS (Page 2 of 4) 2.1.3 WATER RESOURCES 2-7 2.2 ECOLOGICAL ENVIRONMENT 2-9 I 2.2.1 TERRESTRLAL RESOURCES 2-9 2.2.2 AQUATIC RESOURCES 2-10 2.3 SOCIAL. CULTURAL AND INSTITUTIONAL ENVIRONMENT 2-11 2.3.1 LAND USE 2-11 2.3.2 SOCIOECONOMICS 2-13 2.3.3 CULTURAL RESOURCES 2-16 3.0 ENVIRONMENTAL IMPACTS OF THE PROPOSED PROJECT 3-1 3.1 PHYSICAL ENVIRONMENT 3-1 3.1.1 AIR QUALITY 3-1 3.1.2 NOISE 3-11 3.1.3 WATER RESOURCES 3-15 3.2 ECOLOGICAL ENVIRONMENT 3-21 3.3 SOCIAL AND CULTURAL 3-23 3.3.1 CHANGES TO LAND USE 3-23 3.3.2 RESETTLEMENT 3-23 3.3.3 DEMOGRAPHICIEMPLOYMENT/ECONOMIC IMPACTS 3-24 3.3.4 TRANSPORTATION IMPACTS 3-25 3.3.5 CULTURAL RESOURCES 3-25 3.3.6 INDIGENOUS PEOPLES 3-25 3.3.7 OCCUPATIONAL HEALTH AND SAFETY 3-26 3.4 TRANSMISSION LINE 3-29 ii  9651118C 5/30/97 TABLE OF CONTENTS (Page 3 of 4) 3.4.1 CONSTRUCTION EFFECTS 3-30 3.4.2 OPERATIONAL EFFECTS 3-34 4.0 ANALYSIS OF PROJECT ALTERNATIVES 4-1 4.1 MANAGEMENT ALTERNATIVES 4-1 4.2 ALTERNATIVE DESIGNS 4-1 4.3 WATER SUPPLY AND TREATMENT 4-3 4.4 WASTEWATER TREATMENT AND DISCHARGE 4-3 4.5 ALTERNATIVE AIR POLLUTION CONTROL TECHNOLOGY 4-4 4.5.1 ALTERNATE PM EMISSION CONTROL TECHNOLOGIES 4-4 4.5.2 ALTERNATIVE SO2 EMISSION CONTROL TECHNOLOGIES 4-6 4.5.3 ALTERNATIVE NOx CONTROL TECHNOLOGIES 4-13 4.6 ASH DISPOSAL ALTERNATIVES 4-18 4.6.1 ASH HANDLING SYSTEMS 4-18 4.6.2 ASH DISPOSAL SITES 4-18 4.6.3 ASH YARD STABILIZATION 4-18 5.0 RECOMMENDED MITIGATION AND MONITORING 5-1 5.1 MITIGATION OF AIR IMPACTS 5-1 5.2 MITIGATION OF IMPACTS TO WATER RESOURCES 5-2 5.2.1 WATER USE 5-2 5.2.2 WATER DISCHARGE 5-3 5.3 MITIGATION FOR ASH DISPOSAL 5-4 5.4 RESETTLEMENT 5-4 5.5 MONITORING AND TRAINING PROGRAMS 5-6 . .  9651118C 5/30197 TABLE OF CONTENTS (Page 4 of 4) 5.5.1 AIR MONITORING 5-7 5.5.2 WATER QUALITY MONITORING 5-8 5.5.3 OCCUPATIONAL HEALTH MONITORING 5-9 5.5.4 RESETTLEMENT 5-9 5.5 RISK MANAGEMENT 5-il REFERENCES REF-I APPENDICES APPENDIX A SUMMARY OF CONTACTS - ENVIRONMENTAL ASSESSMENT WAIGAOQIAO PHASE II POWER PROJECT APPENDIX B AREA PHOTOGRAPHS APPENDIX C PUBLIC MEETING MINUTES APPENDIX D CERTIFICATION FROM SHANGHAI MUNICIPAL CULTURAL RELIC MANAGEMENT BUREAU - ARTIFACTS APPENDIX E FUGITIVE DUST EMISSION METHODOLOGY APPENDIX F THERMAL MODELING APPENDIX G CERTIFICATION FROM SHANGHAI ENVIRONMENTAL PROTECTION BUREAU- DUST CONCENTRATION/ DISCHARGE = 100 mg/Nm3 iv  9651118C/LOT-LOF 5/30/97 LIST OF TABLES (Page 1 of 3) 1.2-1 PRC Environmental Protection Legal Framnework 1-18 1.2-2 PRC Class II Air Quality Standards 1-19 1.2-3 PRC Water Quality Standards for Yangtze River Near Waigaoqiao 1-20 1.2-4 World Bank General Environmental Guideline for Power Projects 1-21 1.2-5 World Bank Air Emission Guidelines for Stationary Sources 1-22 1.2-6 World Bank Ambient Air Quality Guidelines 1-23 1.2-7 World Bank Reconmnended Noise Guidelines 1-24 1.3-1 Coal Characteristics for Waigaoqiao Power Project 1-25 1.3-2 Design Information for Phase I of Waigaoqiao Power Project 1-26 1.3-3 Design Information for Phase II and Phase HI of Waigaoqiao Power Project 1-27 1.3-4 Water Use for Waigaoqiao Power Project 1-28 1.3-5 Wastewater Discharge for Waigaoqiao Power Project 1-29 1.3-6 Quantity of Ash and Characteristics for Waigaoqiao Power Project 1-30 1.3-7 Stack and Emissions Data for Phase I of Waigaoqiao Power Project 1-31 1.3-8 Stack and Emissions Data for Phase II and Phase HI Waigaoqiao Power Project 1-32 2.1-1 Monthly Maximnum, Minimum, and Mean Temperatures, 1995: Gaoqiao Hydrological and Meteorological Station 2-17 2.1-2 Annual Summary of Air Quality Data in 1995 for Pudong Area 2-18 2.1-3 Tidal Elevations and Tidal Spectrum at the Gaiqiao Hydrologic Station 2-19 2.1-4 Tidal Characteristics 2-20 2.1-5 Water Temperature in the Yangtze River from 1985-1987 2-21 2.1-6 Water Quality in the Vicinity of the Plant Site 2-22 v  9651118CJLOT-LOF 5/30/97 LIST OF TABLES (Page 2 of 3) 2.1-7 Water Quality Monitoring Results Along the Zhuyuan Sewage Discharge Port in the Yangtze River (March 1994) 2-23 3.1-1 Stack, Operating, and Emission Data for the Coal-Fired Units at the Waigaoqiao Power Plant, Phases I, II, and m 3-39 3.1-2 Stack, Operating, and PM10 Emission Data for Material-Handling Operations at the Waigaoqiao Power Plant, Phases I, II, and III 340 3.1-3 Stack, Operating, and Emission Data for the Coal-Fired Units at the Sidongkou Power Plant 341 3.14 Comparison of Air Dispersion Model and Meteorological Preprocessor Input Requirements to Parameters Available from Meteorological Station at Gaoqiao 342 3.1-5 Maximum Predicted SO2, PM, and NOQ Concentrations for the Waigaoqiao Power Plant, Phases I, II, and III- Screening Analysis 343 3.1-6 Comparison of Maximum Predicted S02, PM, and NO2 Concentrations for the Waigaoqiao Power Plant, Phases I, II, and III, to Ambient Air Quality Standards and Guidelines- Refined Analysis Around Waigaoqiao Plant 3-44 3.1-7 Comparison of Maximum Predicted SO2 Concentrations for the Waigaoqiao Power Plant, Phases I, II, and III, to Ambient Air Quality Standards and Guidelines- Refined Analysis Around Sidongkou Plant 345 3.1-8 Summary of Source Input Data for the Noise Impact Analysis of the Shanghai Power Project 346 3.1-9 Summary of Temperature Rise at Intake Subject to Different Phases 349 3.1-10 Envelope Area of Temperature Diffusion Near Surface in the Course of the Tides 3-50 3.1-11 Slack Flood Tide, Phase [II Maximum Discharge Port Analysis 3-51 3.1-12 Average Flood Tide, Phase Il Discharge Port Analysis 3-52 3.1-13 Average Flood Tide, Phase III Maximum Discharge Port Analysis 3-53 3.3-1 Estimate of Crop Loss Due to Land Use Change 3-54 3.3-2 Summary of Land Acquisition for Waigaoqiao Therrnal Power Project 3-55 3.3-3 Summnary of Affected Structures 3-56 vi  9651118C/LOT-LOF 5/30/97 LIST OF TABLES (Page 3 of 3) 3.3-4 Summary of Affected Population 3-57 5.0-1 Mitigation Plan: Summary of Issues/Mitigating Measures 5-12 5.1-1 SO, Air Quality Impacts Associated with the Installation of Flue Gas Desulfurization (FGD) at Sidongkou Plant 1 Units 1 and 2 and Waigaoqiao Phase II using Low Sulfur Fuel 5-14 5.5-1 Environmental and Training Programs for Waigaoqiao Power Plant Project 5-15 5.5-2 Labor Safety and Health Monitoring 5-16 vii  I A A  9651118C/LOT-4OF 5/30/97 LIST OF FIGURES 1.3-1 Locations of the Waigaoqiao Power Plant Site, Transmission System, and Sidongkou Power Plant Site 1-33 1.3-2 Waigaoqiao Power Project Phase II Plot Plan 1-34 1.3-3 Water Balance for Phase II 1-35 1.3-4 Schematic of Typical Transmission Tower Designs 1-36 2.1-1 Annual Windrose for Gaoqiao Station, January - December 1995 2-24 2.1-2 Air Monitoring Stations and Background Data 2-25 2.1-3 Waigaoqiao Power Plant Location and,Hydrologic Monitoring Stations 2-26 3.1-1 Annual Windrose for Miarni International Airport, 1987-1991 3-58 3.1-2 Maximum Predicted 24-hour SO2 Concentrations for Phase II 3-59 3.1-3 Predicted Annual Average S02 Concentrations for Phase II 3-60 3.1-4 Maximum Predicted 24-hour SO2 Concentrations for Phase III 3-61 3.1-5 Predicted Annual Average SO2 Concentrations for Phase III 3-26 3.1-6 Predicted Maximum 24-hour SO2 Concentrations with Sidongkou Power Plant's FGD System 3-63 3.1-7 Predicted Annual Average SO2 Concentrations with Sidongkou Power Plant's FGD System 3-64 3.1-8 Waigaoqiao Power Project Noise Isopleths (in dBA) Phase I 3-65 3.1-9 Waigaoqiao Power Project Noise Isopleths (in dBA) Phases I and II 3-66 3.1-I0 Waigaoqiao Power Project Noise Isopleths (in dBA) Phases 1, [I. and III 3-67 viii  I I *  9651118CIES-1 5/30/97 SHANGHAI WAIGAOQIAO PHASE II POWER PROJECT ENVIRONMENTAL ASSESSMENT EXECUTIVE SUMMARY INTRODUCTION NEED FOR THE PROJECT China is currently the world's second largest producer of electricity, its installed capacity having grown at an annual average rate of 8 percent between 1983 and 1994. The Shanghai Electric Power Grid (SEPG) is an important part of the East China Grid which covers the provinces of Jiangsu, Anhui, and Zhejiang and the Shanghai Municipality. Greater Shanghai is one of the main load centers of the East China Grid and is served by the Shanghai Municipal Electric Power Company (SMEPC). Shanghai, as the largest city and economic center in-China, will continue to experience electric growth. By the year 2000, the maximum load is expected to reach 11,600 MW, an annual average load growth of over II percent. By 2002, the maximum load is expected to be 13,750 MW. With planned additions through 2000, the maximum capacity will be 12,277 MW. To meet power demnands, SMEPC plans to add approximately 1,800 to 2,000 megawatts (MW) of generating capacity at the Waigaoqiao Power Plant as part of the second phase of development. Located in the Pudong New Area, 20 kilometers (kIn) from the city center, the Waigaoqiao facility has been planned in three phases (see Figure 1). Following the completion of the first phase of the Waigaoqiao Power Plant (four 300-MW units) in 1997, SMEPC plans to initiate the second phase of development of the site through the construction of two coal-fired supercritical units of 900 to 1,000 MW each, followed by a third and final phase of installation of another 1,800 to 2,000 MW for a total site development of about 5,200 MW. The capital cost for the Phase II project is estimated to be about $US 2 billion with funds from a World Bank loan, SMEPC, East China Electric Power Company, Shen Neng Electric Power Development Investment Company, local banks, and cofinancing. ENVIRONMENTAL REQUIREMENTS The World Bank has established guidelines for ensuring that borrowers have adequately characterized the environmental impacts of proposed actions, considered alternatives to a proposed project, developed measures that would mitigate unavoidable impacts, and identified training and monitoring requirements to assure implementation of those measures. Environmental assessment (EA) guidelines for the World Bank provide general guidance in the preparation of EA reports ES-1  529 YV. SIDONGKOU POWER , Clvongming o A 5 i /t A N~~~~~~~~~LAT SITE +/ z; $,g aul ~~~~~~~~~~~~~~~~~~~~~~~~~~~' -- / .,(t . ,km Yang ' Changxing ;) 2 s k m .. Islond 25 km WAIGAOQIAO POWER / ,' o - /*Pf>87 A > NT SITE Isl(I * -. i /Han gd u \ IFIy A sh D ispo s al), m | ' . I; 0-. , 0 ;.; ! 0 vX -= : ::: qsknn ! b fly Ash Dispsosl, 1 ' ~" (J , I Phose '7- I X '~~~~~~~~~~~~~~~~~~~ )(if roquirodi 2lm,,, .?0 * mI LEGEND 8km ) Shangmq ~\ _ _ nqqe I | Exislng 500 kV h,omi5,sii| Shani ~ ~ Ynga I.Linie \ -^- , ' * - - Plojitied 500kV lrujis,nissioii k ' ' j ; \ /--S 4Sn Liiie i ~~~~ } < *, -, 1. 1> ! . * S()t)-~~~~~~~~~~~~~~~~~~~~~~00kV Subolcjhl,ml Nole: Iranstvssion amle 1u,,aloiis ore 25 km'to Nanqino ? (- / 3B k,iOo Nnnqiao Uppfluxinole 500,kv Subsiation 50 =-kiSubslalion Figure 1 Locations of ihe Waigaoqiao Power Plant Site, Transmission System, and Sidongkou Power Plant Site t (RM __ _ _______-  9651118C/ES-3 5/30/97 and are supported by supplementary guidelines that address requirements for thermoelectric projects. Finally, Operational Policy Notes (OPN) assure treatment of topics of particular importance to the Bank, including possible impacts to biodiversity, indigenous peoples, wildlands, and wetlands. In the Peoples Republic of China (PRC), the Thermal Power Plant Project Preparatory Stage Environmental Protection Regulation (MOE, 1989) promulgated by the Ministry of Energy (MOE) requires an EA during the feasibility study stage of project development. For projects with an investment potential in excess of 200 million yuan (RMB), the EA should be submitted to MOE by the main administrative unit of the project. In the case of the Waigaoqiao Power Plant, this administrative unit is SMEPC. After previewing the document, MOE submits the EA to the national Environmental Protection Agency (EPA) for approval. The Shanghai Municipal Bureau of Environmental Protection (SMBEP) is primnarily responsible for overseeing the environmental quality of the greater Shanghai area. While SMBEP develops policies and programs aimed at decreasing levels of pollutants from a variety of sources, the organization defers to the PRC National Environmental Quality Standards for numerical guidance related to emissions and effluent as well as ambient conditions. SMBEP has primary responsibility for monitoring industries for compliance with these standards. Feasibility studies were carried out by the Beijing Economic Research Institute while technical designs and environmental impact assessments were conducted by the East China Electric Power Design Institute (ECEPDI). As result, a draft EA report has been prepared by ECEPDI and submitted to the World Bank. As a supplement to the ECEPDI draft EA report, this EA was prepared in collaboration with ECEPDI to address further the impacts of the proposed project, particularly as they relate to current and future power production at the Waigaoqiao facility. PROJECT DESCRIPIION PROJECT SCHEDULE The Waigaoqiao Phase II Power Plant project is an integral expansion of the Waigaoqiao Power Plant site. Construction for the four 300-MW Phase I units was initiated on November 25, 1992, with completion of all units expected by 1997. Units I and 2 of the Phase I project were in commercial operation at the end of 1994 and 1995, respectively. The Phase II project will consist ES-3  9651118C/ES-4 5/30/97 of two 1,000-MW (nominal) units that will be in commercial operation in 2002. The planning of the site also incorporated the addition of Phase m, which is expected to be simnilar in capacity as Phase II, i.e., two 1,000-MW (nominal) units. PLANT SITE The area designated for power plant development for all phases is 144.4 hectares (ha); Phase II will occupy about 46 ha. To provide construction laydown for Phase II and site and construction laydown areas for Phase m, agricultural and residential areas adjacent to Phase I will be dedicated to the power plant. About 1,000 people currently using this land will be relocated. FUEL The fuel for all phases of the Waigaoqiao Power Plant will be bituminous coal from the Shenfu- Dongshen mining area located in the middle of Inner Mongolia. Coal will be transported by rail to a coastal port and then shipped to the Waigaoqiao Plant site in 35,000-ton shallow-draft coal ships. The coal pier constructed for Phase I can handle docking of two coal ships. A separate pier is planned for Phase II and will have a similar design as the Phase I pier. For Phase III, the Phase II coal pier will be used. WATER SUPPLY The Yangtze River is the principal source of cooling and service water for all phases of the Waigaoqiao Power Plant. The major use of water is for once-through condenser cooling. Phase I will ultimately use 45.3 cubic meters per second (m3/s) of Yangtze River water for condenser cooling Phases II and III will each utilize 74.2 m31s for condenser cooling during the summer. The intake and discharge designs for all phases are similar. Service water is used for the steam cycle, ash sluicing, and other plant uses. Yangtze River water used for boiler service is treated using clarification-sedimentation, reverse osmosis (RO), and mixed-bed resin demineralization. City water will be used for all potable water purposes. Wastewater generated for all phases will consist of boiler treatment regeneration wastewater (RO and demineralizer backwash), boiler cleaning, wash water, contact and non-contact rainfall runoff, excess bottom ash water, and sanitary sewage. The industrial wastewater is treated using neutralization and sedimentation. Any potential oil-contaminated wastewater is treated in an oil separator prior to discharge. Sewage wastewater is treated using biological treatment (aeration) and chlorination. The ES-4  9651118C/ES-S 5/30/97 wastewater for all phases is discharged to the once-through discharge system and the Yangtze River. BYPRODUCTS The byproducts from all phases of the Waigaoqiao Power Project primnarily consist of bottom ash (boiler slag) and fly ash. The bottom ash is sluiced from the boiler to a dewatering area. The bottom ash for all phases will be stored (or disposed) adjacent to the Yangtze River in an area of about 1.2 million m2. A bottom ash (slag) area has been constructed for Phase I and will be used for all phases depending on ash reuse. Fly ash will be transported from a separate ash pier and to ash barges. The barges will be transported to the Limin Ash Yard, which is located about 14 km downstream from the plant site. An area of 1.2 million m`2 has been constructed for Phase I and will be used for the other phases depending on ash reuse. The storage/disposal area for the fly ash has been constructed in the littoral area of the Yangtze River, about 800 m into the river and 1,000 m along the shoreline. A concrete outer berm separates the storage/disposal area from the river. The area just north of the ash storage/disposal area is being used for disposal of Haungpu River sediments which will be used by the Pudong New Area Municipality. If required for Phase II, the Phase I ash yard will be extended downstream. The ash characteristics for the Shenfu-Dongshen coal are a favorable quality for reuse in the construction industry. Currently all the ash generated from Phase I Units 1 and 2 is provided at nominal cost to the construction industry. Some bottom ash has been stored/disposed of in the bottom ash area, but it is largely open; the Limin Ash Yard has not been used. AIR EMISSIONS The air emissions from the combustion of coal for all phases of the Waigaoqiao Power Plant will be controlled using low-sulfur (0.43 percent) coal to limit emissions of sulfur dioxide (SO2), electrostatic precipitators (ESP) to limit emissions of particulate matter (PM), and boiler design and low-NO, combustors to limit emissions of nitrogen oxides (NO). An additional benefit of using Shenfu-Dongshen coal is the SO2 removal obtained from the high calcium content which studies using this coal in a similar unit has demonstrated an average SO2 removal of about 14 percent. ES-5  9651118CIES-6 5/30/97 With the implementation of Phase I, the Shanghai Municipal Government has implemented a requirement to install FGD systems for SO2 removal. The use of low-sulfur content Shenfu- Dongshen coal obviates the technical need to install FGD systems on Phase II units to meet air quality and emissions standards. The use of FGD would be costly for the planned 1,000 MW units and not necessary from an air quality perspective. Instead of installing FGD on Phase II units, SMEPC has requested and obtained approval from the Shanghai Municipality to offset the SO2 emissions from Phase II by installing FGD on two 300-MW (nominal) units using 1.8 percent sulfur coal at another power plant, i.e., the Sidongkou Power Plant. Fugitive dust that may be generated from the coal and ash handling systems will be controlled for all phases using enclosures, air pollution control devices, and watering. All phases of the Waigaoqiao Power Plant will meet or be lower than the World Bank, PRC, and Shanghai emissions guidelines and standards. TRANSMISSION LINES A 500-kV system will interconnect Phase II and Phase III with the SMEPC electric system. Currently, the electric power from Phase I is transmitted through a 230-kV system. The location for the 500-kV system has been under development since 1983 and confirmed in 1993 by the Shanghai Municipal government. The siting was coordinated with the Pudang New Area planning subdivision and other municipal agencies. Once the corridor is identified, construction will be controlled by the municipal government. The current land use of the line is open land or agricultural; any small buildings would be removed with resettlement under the Shanghai Municipal Resettlement Bureau. AFFECTED ENVIRONMENT AIR QUALITY The City of Shanghai, like all major industrialized urban areas, has many anthropogenetic sources of air pollution which have increased during the past decade due to growth. The SMBEP has monitored the ambient air quality that include parameters relevant to the Waigaoqiao Power Project: sulfur dioxide (SO2), nitrogen dioxide (NO,), and total suspended particulates (TSP). The monitoring data collected by SMBEP indicate that the ambient air quality standards for TSP are exceeded at all stations. The maximum daily TSP concentrations measured routinely exceeded both the World Bank 1988 guidelines and PRC Class II standards for particulates, which are 0.500 milligram per cubic meter (mg/im3) and 0.300 mg/m3, respectively. The source of the high ES-6  9651118C/ES-7 5/30/97 TSP concentrations are the result of the construction and industrial activities. The Shanghai Municipal Government has implemented plans for reducing the high TSP concentrations in the city. The maximum daily (24-hour) background SO2 concentrations in the area that would be impacted by emissions from the Waigaoqiao Power Plant are generally below both the World Bank and PRC Class 11 ambient air quality standards of 0.500 mg/m3 and 0.150 mg/rn3, respectively, for the maximum 24-hour and annual averaging times. The SO2 concentrations observed in central Shanghai and at Waigaoqiao exceed the PRC Class II guideline for the maximum 24-hour averaging times. The observed air quality for NO, is below the SMBEP and World Bank guidelines with the exception of several instances where the maximum 24-hour concentration is marginally above the SMBEP standard of 0.150 mg/Nm3. The annual NO, concentration in the area is below the SMBEP and the World Bank guidelines. The observed noise levels comply with the World Bank guidelines and the Shanghai Class HI and IV noise standards. WATER QUANTITY AND QUALITY The Yangtze River, also known as the Changjiang River, is the largest river system in China. The annual average discharge of the Yangtze River is about 30,200 m3/sec. The Yangtze River has been heavily degraded in recent decades, chiefly due to contamination from industrial wastes, ship-borne wastes, untreated municipal sewage, stormwater runoff, and vastly increased sediment loads due to upstream deforestation. SITE CHARACTERISTICS The site for the Phase II expansion of the Waigaoqiao Power Plant including coal pile expansion is located on land which has been previously cleared and impacted and used by small businesses, industry, and agriculture practices. The Limin Ash Yard has vegetation characteristic of weedy, open, previously cleared land The area is being used by local farmers to harvest shrimp and cattle grazing. No unusual plants or those considered rare by the International Union for Conservation of Nature and Natural Resources are in evidence at the plant site or ash yard. ES-7  9651118C/ES-8 5/30/97 The land allocated for the three phases of the Waigaoqiao facility at one time represented a combination of industrial, agricultural, and residential land uses. SMEPC has been allocated the land required for the three phases of the Waigaoqiao facility and its ancillary facilities such as the transmission line. ENVIRONMENTAL IMPACTS AND MITIGATION MEASURES AIR RESOURCES The air quality impacts of Phases I and II and Phases I, II and Im, without concentrations from other sources, are below the Shanghai Ambient Air Quality Standards (AAQS) and the World Bank guidelines. When other sources are considered, the annual average impacts for SO2 are less than the Shanghai AAQS, but the 24-hour impacts are predicted to be slightly higher than the AAQS. However, this assumes that the maximum impacts from other sources occur at the same time as Waigaoqiao, an unlikely result.. The S02 impacts are predicted to be less than the currently applicable World Bank guidelines. The maximum impacts for inhalable particulates are predicted to be above the Shanghai AAQS; the impacts would also be above the currently applicable World Bank guidelines. The existing high particulate load of the Shanghai area is the primary cause of the predicted exceedances. The maximum impacts due to the plant are small when compared to the Shanghai AAQS. The maximum annual impacts of NO2 are predicted to be less than the Shanghai AAQS and the World Bank guidelines. The installation of FGD on Sidongkou Plant 1, Stack No. 1, results in a substantial decrease in regional SO2 emissions and a decrease in annual and 24-hour concentrations around the Sidongkou Plant and in Central Shanghai. The emissions reduction from Sidongkou Plant Units 1 and 2 is expected to be about 48,000 tons per year. In contrast, the SO2 emissions from Waigaoqiao Phase II will be about 37,000 tons per year. Therefore, a net reduction of over 10,000 tons/year SO2 will result with the proposed strategy. For air quality, the decrease in 24-hour concentrations in the Sidongkou area is almost double the increase in the Waigaoqiao area. An increase in air quality concentrations occurs in the Waigaoqiao area due to the proximity of the plant and the distance of the Sidongkou plant from Waigaoqiao. However, there is a decrease in the maximum concentrations in Central Shanghai where the air quality is much poorer In the Central Shanghai area, both the annual and 24-hour maximum concentrations due to Sidongkou and Waigaoqiao are predicted to decrease. The 24-hour maximum concentrations from both plants would decrease by about 70 percent while the annual average would decrease by about 40 percent. An added benefit ES-8  9651118C/ES-9 5/30/97 of the FGD system is the reduction of particulate emissions which is estimated to be about 1,600 tons/year. The predicted noise levels are within the World Bank guidelines and Shanghai Class III daytimne standards for industrial land use areas. Impacts to commercial and residential areas will not occur. The Shanghai Class III and Class IV nighttime noise standards of 55 dBA may be exceeded at both the eastern and southern boundaries of the plant site, but the adjacent land uses are industrial with no residential areas nearby. Based on these results, no significant impact to public health and welfare from noise levels is predicted. Recommendations IUtilize low-sulfur (0.43 percent) coal in Phase II and III in conjunction with FGD on Sidongkou Plant 1. v Reduce particulate emissions rate to 100 mg/m3. * JUtilize low-NO, burners to reduce NOQ emission rate to World Bank guidelines. * Continue to monitor air quality in vicinity of power plants. * Continue control practices (e.g., watering) for fugitive dust emissions. WATER RESOURCES The volume of flow in the Yangtze River at Waigaoqiao is sufficient to accomnnodate once- through cooling. Service water will also be obtained from the Yangtze River. The water will be pretreated using chemical clarification, settling, and reverse osmosis. Boiler feedwater will be demineralized. The water treatment has been designed to reduce water use and wastewater discharges by recycling some process wastewater streams. The wastewater treatment and discharge system has been designed for the Waigaoqiao Phase II power project to minimize impacts. The treatment system will handle all water treatment wastes through neutralization and sedimentation. Potentially oily wastes generated in equipment washing operations will go through oil water separators. Water used for bottom ash will be recycled. The World Bank Guidelines for thermal discharges may be exceed in areas around the discharge. The maximum impacts under low flow conditions will be 33 hectares for Phases I and II and 72 ES-9  9651118CIES-10 5/30197 hectares for all phases. Under normal flow conditions the impacted area will be less than 7.5 hectares. Recommendations: * Utilize Yangtze River for once-through condenser cooling and service water. * Recycle lower quality water for ash handling and dust suppression. * Install and operate water treatment systems ECOLOGICAL RESOURCES The impact of constructing Phase II and Phase m of the Waigaoqiao Power Plant is expected to be minimal on the ecology, since the area has been impacted previously, and no significant habitats exist. The major potential impact for the bottom ash area is the removal of the introduced agricultural and wetland area created from the Yangtze River. This habitat provides locally useful grazing area and shrimp harvesting for local farrners. Use of the area for bottom ash disposal would prohibit these alternative uses. To assure the reuse of ash, SMEPC should develop a management plan for ash reuse and have dedicated staff to implement the reuse plan. Where possible, alternate uses should be developed (e.g., as a road base aggregate) for potential future plans. The economics favor reuse which avoids disposal costs such as land acquisition, ash yard construction, handling, and transportation. The intake and discharge of cooling water from the Yangtze River may have some impact on local fishery productivity since the area is estuarine and hence a nursery zone for early life stages. However, the temperature differences are not great and tidal and current velocities are such that any exposure will be transitory and not significant. There are no benthic communities of significance (i.e., sessile communities), so overall impacts are expected to be minimal. The free residual chlorine of the cooling water discharge will be kept to 0.1 ppm or less which is below the World Bank guideline of 0.2 ppm. Recommendations: * Develop an ash reuse plan to mitigate use of ash disposal areas. * Limit and monitor chlorine usage for once-through cooling system. ES-10  9651118C/ES-11 5130/97 SOCIOCULTURAL RESOURCES Currently, 1,000 residents from Jiang Zhang Zhai, the nearest village, reside on portions of the land allocated for Phase II at Waigaoqiao and will need to be relocated to secure the land for the subsequent phases of the project. A resettlement plan is being developed by SMEPC in cooperation with World Bank consultants. Moreover, villagers are eager to move to the newly constructed housing units since they offer the advantages of indoor plumbing, contained sewage disposal, and a steady electricity source. In addition, the PRC and Shanghai governments require that all displaced persons be placed in gainfully employment and trained for these positions if necessary. SMEPC has committed to carrying out this requirement for all displaced persons. The power plant will employ 2,500 workers at its peak during construction. The workers will come from the greater Shanghai area. During operation, the facility will require a work force of about 800 skilled and unskilled labor. Similarly, these workers will reside in the greater Shanghai area, as well as specifically in the Pudong New Area. Therefore, there will be no need to construct worker colonies for either the construction or operational labor force. The aligrunent for the additional 50 kan transmission line has been secured by the Department of Roads and is currently unoccupied. The alignment for the transmission line, which has been developing for 11 years, follows a major highway for a significant portion of the route. Criteria for siting the remainder of the route included measures to avoid towns and existing buildings and collocating with existing linear facilities. No resettlement will be required for the construction of the additional 500-kV transmission line. Recommendations: * Implement resettlement program as prescribed by Shanghai Municipal Government. MONITORING PROGRAMS SMEPC has incorporated a comprehensive monitoring program for Phase I of the Waigaoqiao Power Project which will continue for Phases n and III. The program includes elements to measure the air, noise, water, ash, and occupational conditions. Initially, monitoring will be conducted to determine conformance with manufacturers' guarantees. The methods for determining contract conformance will be specified prior to their use and be based on methodologies recognized as valid and appropriate to measure environmental emissions and ES-11  9651118C/ES-12 5/30/97 discharges. Additionally, the potential exceedance of the World Bank thermal guideline during certain times suggest the need for thermal monitoring not currently performed. The monitoring programs recommended for Phases II and III are listed below. Recommendations: * Continue monitoring of stack emissions and fugitive dust emissions for plant equipment. * Continue to support SMBEP efforts to monitor ambient air quality in the vicinity to the power plants (Waigaoqiao and Sidongkou). * Continue water intake quantity and quality monitoring of the Yangtze River water. * Continue monitoring of water discharge quality for parameters relevant to the discharge characteristics and include total suspended and dissolved solids (TSS and TDS), pH, oil and grease, and chlorine residual. * Continue noise monitoring on a quarterly within and outside the plant a various locations. * Continue occupational training that is conducted on a regular basis with an established program. * Develop and Implement an ecological monitoring program to assess thermal impacts. Any significant thermal effects determined during Phase II would be the basis for mitigation developed during Phase IIl development. PUBLIC PARTICIPATION The Waigaoqiao Power Project has been under planning and development for more than 10 years with communications and input that involve various agencies of the Shanghai Municipal govermnent and Central governnent. Various stakeholders in the projects development and those that may be directly affected include: Shanghai Municipal Bureau of Enviromnental Protection, Shanghai City Planning Administration, Shanghai Municipal Real Estate Bureau, Shanghai Municipal Housing and Land Administration, Pudong New Area administration and village team leaders. On December 9, 1996 a public meeting was held at the Waigaoqiao Power Plant to discuss projects environmental impacts with the stakeholders. Representatives for SMEPC, SMBEP and ECEPDI presented a description of the Phase II project, its environmental impacts and mitigation, and the monitoring programs. About 40 representatives attended the meeting with nearby village team representative in attendance. ES-12  9651118C/I-J 5/28/97 1.0 BACKGROUND China is currently the world's second largest producer of electricity, its installed capacity having grown at an annual average rate of 8 percent between 1983 and 1994. Nevertheless, China's economic development continues to be restrained by electricity shortages, and Government plans indicate that generating capacity must increase by 17 to 20 gigawatts (GW) per year for the next 5 years to prevent more acute shortages. The Shanghai Electric Power Grid (SEPG) is an important part of the East China Grid which covers the provinces of Jiangsu, Anhui, and Zhejiang and the Shanghai Municipality. Greater Shanghai is one of the main load centers of the East China Grid and is served by the Shanghai Municipal Electric Power Company (SMEPC). The primary objectives of this project are to: i. Increase electricity supply to reduce the acute power shortages in Shanghai through development of two large coal-fired thermal units based on the most advanced technology; 2. Develop a program to apply for the first time in China the 'bubble concept' for cost- effective air quality management within Shanghai Municipality; 3. Support the ongoing power sector reform by restructuring SMEPC in line with the power sector reform strategy, encouraging private sector involvement through listing of the generation company, and rationalizing the tariff structure as well as adjusting the tariff level to accommodate the stricter sulfur dioxide emission standards; and 4. Promote an innovative and diversified financing model for a large infrastructure project and improve the access of power entities to international financial markets. To achieve these goals, SMEPC plans to add approximately 1,800 to 2,000 megawatts (MW) of generating capacity at the Waigaoqiao Power Plant as part of the second phase of development. Located in the Pudong New Area, 20 kilometers (km) from the city center, the Waigaoqiao facility has been planned in three phases. Following the completion of the first phase of the Waigaoqiao Power Plant (four 300-MW units) in 1997, SMEPC plans to initiate the second phase of development of the site through the construction of two coal-fired supercritical units of 900 to 1,000 MW each, followed by a third and final phase of installation of another 1.800 to 2,000 MW. 1-1  9651118C/1-2 5128/97 The capital cost for the Phase II project is estimated to be about $US 2 billion with funds from a World Bank loan, SMEPC, East China Electric Power Company, Shen Neng Electric Power Development Investment Company, local banks, and cofinancing. The generating units of the proposed project will be designed to burn good-quality coal produced at the Shenfu and Dongsheng mines in Shanxi Province and Inner Mongolia Autonomous Region. The plant will be connected to the SEPG through a 500-kilovolt (kV) transmission system. SMEPC has primary responsibility for the project. Feasibility studies were carried out by the Beijing Economic Research Institute while technical designs and environmental impact assessments were conducted by the East China Electric Power Design Institute (ECEPDI). As result, a draft Enviromnental Assessment (EA) report has been prepared by ECEPDI and submitted to the World Bank. This report was prepared in collaboration with ECEPDI to address further the impacts of the proposed project, particularly as they relate to current and future power production at the Waigaoqiao facility. Much of the information in this EA is based on the ECEPDI technical feasibility and environmental assessment which includes conceptual design information. Final design information including process flows will be developed after the international bidding process is completed for the importation of the super-critical units proposed for Phase II. Process flows will be developed for all mechanical, electrical, civil and environmental systems 1.1 PURPOSE AND SCOPE OF THE ENVIRONMENTAL ASSESSMENT (EA) MISSION 1.1.1 WORLD BANK TREATMENT OF THERMAL POWER DEVELOPMENT The World Bank has established guidelines for ensuring that borrowers have adequately characterized the environmental impacts of proposed actions, considered alternatives to a proposed project, developed measures that would mitigate unavoidable impacts, and identified training and monitoring requirements to assure implementation of those measures. Environmental assessment (EA) guidelines for the World Bank are specified in the World Bank Operational Directive (OD) 4:01 (1991); which provides general guidance in the preparation of EA reports. Via the Sourcebook series (1990), OD 4:01 is supported by supplementary guidelines that address sector specific issues. Specific environmental assessment guidelines exist for thermoelectric projects. 1-2  9651118C/1-3 S/28197 Finally, Operational Policy Notes (OPN) assure treatment of topics of particular importance to the Bank; including possible impacts to biodiversity, indigenous peoples, wildlands, and wetlands. During the identification phase, the World Bank screens projects with regard to their potential for causing adverse enviromnental impacts, assigning the projects to one of three categories: A, B, or C. Phase II of the Waigaoqiao Power Plant project, like virtually all thermal power projects, was rated as Category A, meaning that significant potential exists for adverse environmental impacts and that an EA must always be performed. 1.1.2 EA BY THE EAST CHINA ELECTRIC POWER DESIGN INSTITUTE (ECEPDI) AND KBN ENGINEERING AND APPLIED SCIENCES, INC. (KBN) The design of thermal power plants and associated facilities is the primary function of ECEPDI, a public organization located in Shanghai that provides technical assistance services to utilities. ECEPDI prepared an EA for the development of the Waigaoqiao Power Plant. World Bank review of the project regarding potential environmental issues led to the involvement of KBN Engineering and Applied Sciences, Inc. (KBN) in October 1996. Through KBN collaboration with SMEPC and ECEPDI, the World Bank desires information that: 1. Potential impacts from atmospheric pollution of all phases of the project are adequately assessed and mitigated, 2. Thermal impacts associated with proposed effluent discharge are adequately represented, 3. Fly ash waste disposal issues are adequately addressed, 4. Adequate public participation is sought, and 5. The OPN special topics are addressed. The objective for KBN's participation was to provide assistance to SMEPC and ECEPDI in the preparation of a final EA report that addresses these areas of particular World Bank interest and allows the timely execution of the Appraisal Mission. A three-person team of KBN scientists traveled to Shanghai in October-November 1996, visiting the Waigaoqiao site and surrounding areas, interviewing local officials and residents, and identifying additional data through a series of working meetings with SMEPC and ECEPDI staff. 1-3  9651118CI1-4 5/28/97 The 1996 EA document (ECEPDI, 1996) and information obtained from SMEPC and ECEPDI were used by the KBN team as an information reference during EA preparation. 1.1.3 WAIGAOQIAO POWER PLANT GEOGRAPHIC SCOPE The potential area of environmental impact is determined by the aggregate scope of construction and operational impacts. Construction Imnacts Construction impacts are derived principally from the occupation and alteration of land for power plant infrastructure, including the switchyard, power block, coal handling facilities, ash storage and disposal facilities, and water resource infrastructure. Additional impacts to local populations can be anticipated in the form of increased road and ship traffic, as well as from the influx of temporary labor. Operationa) ImRacts Operational impacts for thermal power projects can be derived from the discharge of atmospheric and aquatic pollutants, withdrawal of water from surface and underground sources, and the generation of other waste streams. These impacts were considered within a range of 15 to 25 Iam surrounding the power plant site. 1.2 ENVIRONMENTAL, LEGAL, AND REGULATORY FRAMEWORK FOR PROJECT DEVELOPMENT 1.2.1 PRC LEGAL AND REGULATORY FRAMEWORK 1.2.1.1 PRC Laws The principal laws and regulations related to environmental impacts of thermal power plants in China are provided in Table 1.2-1. According to the Thermal Power Plant Project Preparatory Stage Environmental Protection Regulation (MOE, 1989) promulgated by the Ministry of Energy (MOE), an EA is required during the feasibility study stage of project development. For projects with an investment potential in excess of 200 million yuan (RMB), the EA should be submitted to MOEP by the main administrative unit of the project. In the case of the Waigaoqiao Power Plant, this administrative unit is SMEPC. After previewing the document, MOEP submits the EA to the national Enviromnental Protection Agency (EPA) for approval. 1-4  9651118C/1-5 5/28/97 The appropriateness and sufficiency of the environmental mitigation proposed for the facility is the responsibility of MOEP according to Document DJ No. 131: Acceptance of Regulation for Thermal Power Plant Environmental Mitigation Devices after Completion (MOEP, 1988). The organizations responsible for monitoring the impacts associated with the project are determiined by MOEP according to regulations that specify in detail the monitoring organization, personnel, installations, duties, monitoring parameters, station locations, and monitoring periods, methodology to be used, among other details. PRC air and water quality standards applicable to the Phase II Project are sumunarized in Tables 1.2-2 and 1.2-3, respectively. 1.2.1.2 PRC Environmental Protection Agencies Environmental protection in China is implemented on three principal levels: national (or state), provincial, and the municipal (or local). Therefore, there exists a national EPA, provincial EPA, and an EPA at the local level for the nearest city of significant size. The Waigaoqiao Power Plant is located within the administrative responsibility of Shanghai which, unlike smaller cities in China, reports administratively directly to Beijing rather than to a province. Therefore, the relevant environmental protection agencies include the national EPA and the Shanghai Municipal EPA. While the local and provincial EPAs are consulted as part of the EIS process, the ultimate decision on the approval of the EIS rests entirely with the national EPA. Moreover, the published envirownental regulations provide no detailed guidance on prioritization of impacts and how decisions on resource use are mnade. A list of all agencies contacted in the EIS process is provided in Appendix A. 1.2.2 SHANGHAI MUNICIPAL ENVIRONMENTAL REQUIREMENTS The Shanghai Municipal Bureau of Environrnental Protection (SMBEP) is primarily responsible for overseeing the environmental quality of the greater Shanghai area. SMBEP is comprised of 21 departments with a wide range of responsibilities related to environmental protection in Shanghai. While SMBEP develops policies and programs aimned at decreasing levels of pollutants from a variety of sources, the organization defers to the PRC National Enviromnental Quality Standards for numerical guidance related to emissions and effluent as well as amnbient conditions. 1-5  9651118C/1-6 5/28/97 SMBEP has primary responsibility for monitoring industries for compliance with these standards, a responsibilitv that is carried out through spot investigations, strategic ambient air and water quality monitoring, and technical support to industries. As SMBEP relates to the proposed project at Waigaoqiao, the organization has been consulted throughout development of the project to ensure that mitigation and monitoring proposed for the facility conforms with SMBEP policies and PRC environmental standards. Most relevant to Phase II of the Waigaoqiao facility, SMBEP has collaborated with SMEPC to develop an innovative approach to the Municipality requirement that all new coal-burning power plants be equipped with flue gas desulfurization (FGD). Since the Waigaoqiao Phase II units comply with PRC and World Bank emissions guidelines by using low-sulfur coal, the investment required to install FGD equipment on Phase II would be considerable and would be better applied to retrofit a facility at Sidongkou with FGD using much higher sulfur coal. This approach was developed to ensure that the installation of FGD produces the greatest econornic benefits while offsetting sulfur dioxide emissions of the project in the Shanghai airshed. As stated previously, formal enviromnental approval for the Waigaoqiao facility is received from the central rather than municipal governments. Nevertheless, SMEPC has worked closely with SMBEP to ensure their concerns regarding the enviromnental inpacts of the facility were adequately addressed. Moreover, SMBEP assisted with the organization and presentation during the public meeting on environmental issues. 1.2.3 WORLD BANK REQUIREMENTS In addition to PRC guidelines referenced in Section 1.1. 1, the World Bank also has specific industrial pollutant discharge and ambient environmental quality standards for the power sector, as detailed in Table 1.2-4. World Bank air quality guidelines applicable to power plants are presented in Tables 1.2-5 and 1.2-6. Noise guidelines are presented in Table 1.2-7. 1.3 WAIGAOOIAO PHASE II POWER PLANT PROJECT 1.3.1 INTRODUCTION In December 1996, an Economic Analysis for Waigaoqiao Coal Fired Thermal Power Plant Phase II was prepared by Beijing Economic Research Institute of Water Resources and Electric i -6  9651118C/1-7 5/28/97 Power. This analysis included a least cost scenario for satisfying the alarming electricity deficit expected in Shanghai as part of its economic growth. Currently, electricity to satisfy demand in Shanghai is imported from neighboring provinces, all of which are experiencing power shortages. Increasing the power supply to the Shanghai power grid was determined a priority in China's effort to improve its electricity deficit. A number of factors make Shanghai an optimal location for power development: 1. Shanghai has the largest population of any municipality in China with a per capita energy consumption higher than the national average. 2. Industrial energy demands are rapidly increasing, and 3. Energy utilization efficiency is high, with the potential for improvements in energy conservation. The specific site for development of Waigaoqiao Phase II was selected as part of a long-term planning effort by the PRC and Shanghai government. This planning was critical given the rapid growth and acute land shortage in Shanghai. A number of reasons made the existing Waigaoqiao site preferred for the development of Waigaoqiao Phase II: 1. The transmission distribution system in Shanghai is currently being upgraded, 2. Significant portions of the infrastructure required for the facility already exists through the development of Waigaoqiao Phase I, 3. Proximity to the Yangtze river facilitates delivery of coal and equipment to the site and the availability of cooling water, 4. A labor pool sufficient for the construction and operation of the facility exists in and around Shanghai, 5. Adequate land existed for the development of the Phase II with room for future expansion (In contrast, other land in Shanghai is not available), and 6. Sufficient room existed to construct large, high efficiency thermal units to improve efficiency of the overall system. The Waigaoqiao Phase nl Power Plant project is an integral expansion of the Waigaoqiao Power Plant site. Construction for the four 300-MW Phase I units was initiated on November 25. 1996, with completion of all units expected by 1997. Units I and 2 of the Phase I project were in commercial operation at the end of 1994 and 1995, respectively. Appendix B, Figure B-1, 1-7  9651118C/I-8 5128/97 presents a panoramic view of Phase I under construction. The Phase II project will consist of two 1,000-MW (nominal) units that will be in commercial operation in 2002. The planning of the site also incorporated the addition of Phase III, which is expected to be similar in capacity as Phase II, i.e., two 1,000-MW (nominal) units. The total capacity of the site is planned for a nominal 5,200 MW. While this EA focuses on the Phase II project, the evaluation of the project must incorporate the existing Phase I project and deternine the environmental impacts of adding Phase HI. Therefore, the project descriptions that follow present information on all phases of the Waigaoqiao Power Plant complex. 1.3.2 NECESSITY FOR WAIGAOQIAO PHASE II 1.3.2.1 Descrption of Existing Power System SMEPC provides the electric power for the Shanghai municipality with the exception of Chongming and Changxing islands. The Shanghai electric system is part of the East China Power Pool. The installed capacity of the SMEPC is 8,294 MW with a 1995 maximum load of 6,919 MW. The transmission system for the Shanghai system consists of 500-kV and 220-kV circuits. The 500-kV system consists of double-circuit transmission lines that form a half circuit around a major portion of Shanghai. The half loop is from the Sidongkou No. 2 Power Plant to Yanggao and to Yanghang (see Figure 1.3-1). The Sidongkou-Yanggao portion runs through Huangdu, Sijn, Nanqiao, and Shanling. As part of the Waigaoqiao Phase 11 project, the 500-kV loop will be completed from Yanghang to Yanggao with interconnection to Waigaoqaio Phase Dl Power Plant. 1.3.2.2 Load Forecast Shanghai, as the largest city and economic center in China, will continue to experience electric growth. By the year 2000, the maximum load is expected to reach 11,600 MW, an annual average load growth of over 11 percent. By 2002, the maximum load is expected to be 13,750 MW. With planned additions through 2000, the maximum capacity will be 12,277 MW. Waigaoqiao Phase II Power Plant is needed to provide the almost 1,500 MW increase in demand while providing an acceptable reserve margin. 1-8  9651118C/I-9 5/28/97 1.3.3 WAIGAOQIAO PLANT DESCRITION 1.3.3.1 Plant Site The Waigaoqiao plant site is located in Northeast Pudong New Area along the Yangtze River (see Figure 1.3-1). The site is located abotit 20 km from the Shanghai city center. The site is bounded on the west by Gang-dian Road and on the south by Haixu Road. The Waigaoqiao New Harbor Zone is located west of the plant. The eastem boundary currently consists of agricultural area with residential. The area designated for power plant development for all phases is 144.4 hectares (ha) (see Figure 1.3-2). Phase II will occupy about 46 ha. To provide construction laydown and areas for Phase III, the agricultural and residential areas will be designated to the power plant. About 1,000 people will be relocated. 1.3.3.2 Fuel Handlin! and Storaae, Fuel Ouality The fuel for all phases of the Waigaoqiao Power Plant will be bituminous coal from the Shenfu- Dongshen mining area. The Shenfu-Dongshen mining area is located in the middle of Inner Mongolia, south of the Yellow River near Baotou City in the northern part of Shanxi Province. Available coal reserves for this area is about 1.7 billion tons. Coal will be transported by rail to the Port of Qinhuangdao in Hebie Province and then shipped to the Waigaoqiao Plant site in 35,000-ton shallow-draft coal ships. The coal pier constructed for Phase I can handle docking of two coal ships. The Phase I pier is located 250 meters (m) into the Yangtze River at a depth of about 10 rn (see Figure 1.3-2). A separate pier is planned for Phase II and will have a similar design as the Phase I pier. The Phase II coal pier will be located about 300 m into the Yangtze River at a depth of 10 m. For Phase III, the Phase II coal pier will be used. Coal is unloaded using bucket unloaders and transferred by conveyors to coal storage areas. The Phase I unloading system has a capacity of 2,000 tons per hour (TPH), and the Phase II conveying system has a capacity of 3,500 TPH. All conveyors are covered, except a small portion of the pier unloaders and the stacker-reclaimer. For Phases I and II, the pier and unloading systems will be separate. With Phase III, the conveying system will integrated, i.e., coal can be unloaded at either coal pier and provided to each phase's storage areas (see Figure 1.3-2). For Phase I, there are two stacker-reclaimers which will be the sarne for Phase II. Phase III may have up to four stacker-reclaimers due to the shorter storage length. 1-9  9651118C1-10 5/28/97 The storage area for Phase I is designed to store 260,000 tons in an area of about 600 square meters (m2). This is sufficient for about 25 days' fuel usage. Phase II will store about 415,000 tons in an area of about 800 M2; the same amount of coal and area is planned for Phase III. The Phase I storage area is partially covered with a drying shed; similar sheds will be used for Phases II and III. Coal is conveyed from the storage area or directly from the coal pier through the conveyor system to coal crushers where its size is reduced. From the coal crushers, the coal is conveyed to coal bunkers. See Appendix B, Figures B-2 and B-3, for photographic views of the existing coal handling areas for Phase I and the areas to be used for Phases II and Im. Shenfu-Dongshen coal is a low-sulfur (0.43 percent) bituminous coal with a lower heating value of 22,760 kiloJoules per kilogram (kJ/kg) [9,806 British thermal units per pound (Btu/lb)]. Ultimate and proximate analyses of coal quality are presented in Table 1.3-1. An evaluation of long-term coal quality related to the Shenfu-Dongshen coal used in Phase I was conducted by ECEPDI (1997). Over a 14 month period (January 1996 through February 1997), the average sulfur content of coal was 0.42 percent with a standard deviation of 0.023 percent. The maximnum sulfur content was 0.457 and the lowest was 0.384. The net heating value over the same period was 22,930 kJ/kg slightly higher (0.7 percent) than the design value. The ash content averaged 8.44 percent compared to the design value of 11 percent. The results of this study demonstrate the ability to meet the design coal quality. 1.3.3.3 Power Block Phase I - The power block for Phase I will ultimately consist of four 300-MW (nominal) subcritical units; Units 1 and 2 are in commercial operation, and Units 3 and 4 are still under construction (as of November 1996). The boilers are constructed domestically using licensed design technology from Combustion Engineering (CE)-ABB. Coal is delivered from the coal bunkers to pulverizes. The pulverizes feed tangential burners that are fired at a design rate of about 130 TPH per boiler and have a annual coal consumption of 845,100 tons per year (TPY) per unit. The turbine generators are hydrogen cooled operating at 3,000 revolutions per minute (rpm), 50 hertz (Hz), 20 kilovolts (kV). Design parameters and fuel usage rates for Phase I are presented in Table 1.3-2. 1-10  9651118C1I-11 5128/97 Phase II - The power block for Phase II will consist of two 1,000-MW (nominal) super-critical units. The boilers will be of foreign design since this technology is not currently available in China. The SMEPC operational staff will receive training specific to super-critical unit operation including the use of a simulator. The operational training, performed by the supplier, will also include safety training associated with the specific characteristics of the super-critical units. Coal is delivered from the coal bunkers to pulverizes. The pulverizes feed low-NO, burners that are fired at a design rate of about 780 TPH per boiler and have a annual coal consumption of 5,083,000 TPY per unit. The turbine generators are hydrogen-cooled operating at 3,000 rpm and 50 Hz. A discussion on the selection of the technology proposed for Phase II is presented in Section 4.0. Design parameters and fuel usage rates for Phase II are presented in Table 1.3-3. Phase III - The design for Phase HI is anticipated to be a slide-along version of Phase H with similar design and capabilities. Heavy equipment for the plant will be transported to the Shanghai Wharf in the Waigaoqiao Free Trade Zone by barge or ship. After unloading, the equipment will be transported to the site by truck on roads with sufficient structural capability for the integrated loads. No reinforcement will be necessary. 1.3.3.4 Water Use. SuDPIlV. and Treatment The Yangtze River is the principal source of cooling and service water for all phases of the Waigaoqiao Power Plant. The major use of water is for once-through condenser cooling. Phase I will ultimately use 45.3 cubic meters per second (m3/s) of Yangtze River water for condenser cooling. Phases H and Im will each utilize 74.2 m3/s for condenser cooling during the summer. The intake and discharge designs for all phases are similar. Each phase will have dual intake structures that take water at about 8 m depth and are located about 250 m from the river bank (see Figure 1.3-2). Intake velocities are about 0.25 to 3 meters per second (m/s). Trash screens are located at the intake and prior to the plant. Traveling screens are used prior to condenser cooling. Chlorine at 1 to 3 parts per million (ppm) is used for biological growth control; the residual free chlorine is kept to 0.1 ppm. Figure B-4 is a photograph of the Phase I intake structure. The discharge is located along the shore about 40 m from the river bank (see Figure 1.3-2). The discharge velocity is 0.5 to 1 m/s The temperature rise resulting from the once-through 1-11  9651118C/1-12 5/28/97 condenser cooling is 8 to 9 degrees Celsius (