Guangdong Provincial Green Freight Demonstration Project by Grant of GEF

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Grant Project of Global Environment Facility (GEF) Guangdong Provincial Green Freight Demonstration Project by Grant of GEF Environmental Management Manual for the Project The Transport Department of Guangdong Province October 2010 E2573

2 Contents 1. Preface Brief Introduction to the Green Freight Project Overview of this project Composition of This Project Relevant Legal Framework Relevant Chinese Policies and Laws Relevant Laws Made by the Central Government Relevant Laws and Regulations Made by the Local Governments in Guangdong Province Important Documents Made by State Environmental Protection Administration of People s Republic of China The Safeguard Policies of the World Bank The World Bank Safeguard Policy Papers Relevant to This Project The World Bank Safeguard Policy Papers Irrelevant to This Project Environmental Impacts The Major Environmental Impacts of This Project Analysis on the Environmental Impacts Measures for Mitigating the Environmental Impacts Monitoring and Evaluation Measures for Guaranteeing the Environmental Security Arrangement of Relevant Organizations Task Division Training Analysis on Environmental Benefits Public Participation and Information Disclosure Regulations Made by Chinese Government Requirements of the World Bank Public Participation Information Disclosure Contents to be Disclosed Date of Information Disclosure Mode of Information Disclosure Information Feedback I

3 1. Preface Over the past 30 years since the reform and opening up of China, especially after China s entry into WTO, Guangdong Province has witnessed rapid economic development and the Pearl River Delta region has become the famous global factory. With the social and economic development, demand for road freight industry is constantly increasing. Transportation industry is one of the major causes for energy consumption and greenhouse gas emission, wherein road freight accounting for the larger part. Statistics show that in 2009, Guangdong province had completed 1,254,330,000 tons of road freight volume and billion of ton kilometers of freight turnover, accounting for 70% of the total freight volume of various transportation means in the whole province. However, due to the late start and the limitation of the development characteristics of the road freight industry in Guangdong Province, the energy efficiency in this industry remains low and there is hard work to do in order to save energy and reduce emission. In 2009, with the help of the World Bank, People s Government of Guangdong Province had successfully applied the Climate Change Grant Project of Global Environment Facility (GEF for short) Green Freight Project. GEF donates USD 5 million in this project. Australia Agency for International Development and the World Bank provide partial financial support. The Smartway Plan Center of US Environmental Protection Agency and the CAI-Asian Center provide advanced energy efficiency technical aids and creative policy consultation. This project, if well organized and implemented, can play an active and promoting role in further enhancing the energy efficiency of the road freight industry, changing the development pattern of this industry, improving the social environment and in accelerating the sustainable development of Guangdong Province. In order to avoid or minimize the adverse effect of this project on the environment, to ensure the quality of this project and the smooth carrying out of the relevant reforms as well as to promote the coordinated development of the society, economy and the environment, with the help of the working group from the World

4 Bank, the Green Freight Project Management Office organizes personnel to work out this Environment Management Manual for this project (hereinafter referred to as the Manual for short). In this Manual, the possible environmental effects of various sub-projects will be analyzed and corresponding mitigation measures will be proposed; the scientific nature and applicability of this Manual will be ensured through strengthening relevant training, monitoring and evaluation as well as intensifying the public participation and the popularization so as to reduce the adverse effects on the environment. While being in conformity with the relevant policies, laws and regulations made by the Chinese central and local governments, this Manual can also meet the requirements of the safeguard policies of the World Bank. 2. Brief Introduction to the Green Freight Project 2.1 Overview of this project The purpose of this project is to reduce the road freight emission in Guangdong Province by 10% within the following 3 to 4 years by learning the energy-saving and emission-reducing technology applicable for the road freight trucks and the creative transportation management means at home and abroad, and through the demonstration of the energy-efficiency truck technology, the drop and hoop transport and the logistics transaction information platform. The total investment of this project reaches USD 16,820,000 which mainly comes from the GEF donation and the funds from governments at all levels and enterprises. Among the total investment, GEF donates USD5, 000,000, accounting for 29.7% of the total amount while the governments and enterprises invest USD 11,820,000, accounting for 70.3% of the total. 2.2 Composition of This Project This project includes four sub-projects: demonstration of the green truck technology; demonstration of the green freight organization technique; organization

5 development and capacity building; project tracing, monitoring and evaluation. The block diagram of this project is shown below. Demonstration of the green truck technology Demonstration of the drop and hoop transport organization technique Demonstration of the logistics transaction information platform Three demonstrations Demonstration of the green freight organization technique The green project by the Transport Department of Guangdong Province (Green freight management platform) Four supports Two measures Project management (fund appropriation, selection of demonstration enterprises ) Tracking & supervision and evaluation Public information platform for road freight in Guangdong Research on the green freight policies Training relevant to this green freight project Popularization and promotion Figure 1 Block diagram showing the framework of the green freight project in Guangdong Province This project, aiming at realizing the energy-saving and emission reduction of the road freight, does not need any construction work during its implementation. Except the demonstration of the green truck technology and track & monitoring which involve truck replacement, truck remolding or equipment installation or other links and may generate adverse effects on the environment during their implementations, other demonstration sub-projects of this project will not produce any pollutant. 3. Relevant Legal Framework 3.1 Relevant Chinese Policies and Laws Relevant Laws Made by the Central Government (1) Law of the People's Republic of China on Environmental Impact Assessment (Sep. 2003) (2) Environmental Protection Law of the People s Republic of China (Dec. 1989)

6 (3) Law of the People's Republic of China on the Prevention and Control of Water Pollution (revised in Mar. 2008) (4) Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution (revised in 2000) (5) Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Wastes (revised in Dec. 2004) (6) Law of the People s Republic of China on the Prevention and Control of Environmental Noise Pollution (1996) Relevant Laws and Regulations Made by the Local Governments in Guangdong Province (1) Regulation of Guangdong Province on Environmental Protection (Sep. 24, 2004); (2) Eleventh Five-Year Plan of Guangdong Province on Environmental Protection (2005); (3) Outline of the Environmental Protection Planning of Guangdong Province ( ) ; (4) Regulations of Guangdong Province on the Prevention and Control of the Environmental Pollution Caused by Solid Wastes (Jan. 14, 2004) (5) Regulations of Guangdong Province on the Prevention and Control of the Pollution Caused by Motor Truck Exhaust (Jul ) Important Documents Made by State Environmental Protection Administration of People s Republic of China Notice Concerning the Interim Measures of Public Participating in Environmental Impact Assessment (by State Environmental Protection Administration, in Mar. 2006)

7 3.2 The Safeguard Policies of the World Bank The World Bank Safeguard Policy Papers Relevant to This Project (1) Environmental Evaluation 0P 4.01; (2) Disclosure of the Safeguard Policy Papers 0P The main contents of the World Bank Safeguard Policy Papers relevant to this project and of the World Bank Policies as well as the corresponding work requirements are shown in table 1. Table 1 The World Bank Safeguard Policy Papers Safeguard Summaries of theses policies Policies 0P 4.01 The extent, depth and the analysis types of the potential Environmental environmental risks and impacts caused by a project can be Assessment evaluated according to the nature, scale and potential environmental impacts of the proposed project. It is necessary to check the alternate projects while making the environmental evaluation. It is also necessary to minimize, mitigate or compensate the negative environmental impacts and to strengthen the positive impacts by adopting preventative measures: the negative environmental impacts shall be mitigated and managed during the implementation of the project so as to determine the methods for improving the project 0P17.50 Disclosure of the Safeguard Policy Papers selection, site selection, planning, design and implementation. The information about all the projects shall be disclosed in the information stations of the country where the project is located and that of the Work Bank The World Bank Safeguard Policy Papers Irrelevant to This Project Other safeguard policies of the World Bank are not applicable to this project; these safeguard policed include: 0P4.04 Natural Habitats, 0P4.09 Pest Management, 0P4.10 Indigenous Peoples, 0P4.12 Involuntary Resettlement, 0P4.11Physical Cultural Resources, 0P4.36 Forests, 0P4.37 Safety of dams, 0P7.50 Projects on international Waterways and 0P7.60 Projects in disputed areas.

8 4. Environmental Impacts 4.1 The Major Environmental Impacts of This Project During the implementation of this project, only the sub-project demonstration of the green truck technology may generate some adverse impacts on the environment. This sub-project include the following items: energy-saving and emission-reduction driving skill, intelligent automobile operation system, air resistance-reduction technology, rolling resistance-reduction technology, truck mass-reduction technology, exhaust after-treatment technology, new energy automobile technology, and energy saving and emission-reduction new truck replacement, etc. During the process of technical modifications, environmental impacts to a certain extent will be generated; for example, exhaust gas, waste water, noise and solid wastes will be generated. 4.2 Analysis on the Environmental Impacts The derivative environmental pollutants that may be generated during the demonstration of the green truck technology include solid waste, noise, exhaust gas, waste water, and other pollutants which may harm people s health. The detailed analysis on the various pollutants is as follows: (1) Solid Waste When the truck is running, its tires will be worn due to the rolling resistance between tires and the road surface and when the tires are worn out, they become solid waste; the side skirt, separation fan covers and roof guide guards, when damaged and scrapped because their parts are worn, will become solid waste; when installing the tire pressure monitor, new special air taps for the tire pressure monitors will replace the old ones, the original gas will become a kind of waste gas; when new aluminum alloy wheel hubs are used, the old ones will become a kind of solid waste; when new trucks are purchased and the old ones replaced, the replaced ones will be out of service or scrapped to become a kind of solid waste.

9 (2) Noise Noises will be generated when doing drilling and knocking operations in order to install the side skirts, separation fan covers, roof guide guards, tire pressure monitors and aluminum alloy wheel hubs, etc. (3) Exhaust Gas Exhaust gases will be generated when electric welding or other means are used in order to install the side skirts, separate fan covers and the roof guide guards. (4) Waste Water The waste oil and waste water for washing may leak and cause environmental pollution during the installation and replacement of the aluminum alloy wheel hubs and other parts. (5) Other Electric welding is needed in order to install or maintain the side skirts, separation fan covers and the roof guide guards. The radiation, dust, and high temperature, etc generated during the electric welding process are environmental pollutants and may harm the health of the welders. 4.3 Measures for Mitigating the Environmental Impacts According to the above analysis on the environmental impacts, it is necessary to adopt different measures to mitigate the environmental impacts caused by solid waste, noise, exhaust gas, and waste water, etc. (1) Solid Waste The old tires, wheel hubs and trucks can be recycled and retreaded by professional recycling enterprises and then be put into used again. For those which can not be used for the time being or those which are regarded as useless, they shall be stored in the designated storage facilities and sites, or they shall be disposed by adopting harmless disposal measures. (2) Noises

10 Equipment installation shall be done at a professional location with a certain degree of sound insulation function; besides, the installation workers shall be required to wear protective apparatuses such as earplugs, etc. so as to reduce the impact of noises on the health of the workers. Check whether the tire pressure is normal or whether there is any uneven wear on a regular basis; repair and maintain the tires in a timely manner. The construction duration shall be put under strict control. (3) Exhaust Gas The purchased additives shall not damage the catalyst. Meanwhile, exhaust treatment technology shall be applied in order to reduce the waste gas emission. (4) Waste Water Pay attention to the reparation and maintenance of the trucks in order to ensure that the oil tanks of the trucks have sound leak tightness and to avoid any oil leakage. (5) Others Welders shall do the electric welding strictly according to the standard operation procedure and must wear necessary protective articles such as the protective masks or safety goggles, etc. The following table integrates the above analysis and measures. Name of the Source Pollutant Solid waste Noise 1. Scrapped and old tires 2. Scrapped side skirts, separation fan covers, and roof guides guards 3. Scrapped air taps. 4. Old wheel hubs. 5. Old trucks. 1. Noises generated during the process of equipment installation. 2. Noises generated due to the abnormal friction between the tires and the road surface. Mitigation Measures The old tires, wheel hubs and trucks can be recycled and retreaded by professional recycling enterprises and then be put into used again. For those which can not be used for the time being or those which are regarded as useless, they shall be stored in the designated storage facilities and sites, or they shall be disposed by adopting harmless disposal measures. Equipment installation shall be done at a professional location with a certain degree of sound insulation function; besides, the installation workers shall be required to wear protective articles such as earplugs, etc. so as to reduce the impact of noises on the health of the workers. Check whether the tire pressure is

11 Exhaust gas Waste Water Others Exhaust gases will be generated when electric welding or other means are used in order to install the side skirts, separate fan covers and the roof guide guards. The waste oil and the waste water for washing may leak and cause environmental pollution during the installation and replacement of the aluminum alloy wheel hubs and other parts. The radiation, dust, and high temperature, etc generated during the equipment installation or maintenance. normal or whether there is any uneven wear on a regular basis; repair and maintain the tires in a timely manner. The construction duration shall be put under strict control. The purchased additives shall not damage the catalyst. Meanwhile, exhaust treatment technology shall be applied in order to reduce the waste gas emission. Pay attention to the reparation and maintenance of the trucks in order to ensure that the oil tanks of the trucks have sound leak tightness and to avoid any oil leakage. Welders shall do the electric welding strictly according to the standard operation procedure and must wear necessary protective articles such as the protective masks or safety goggles, etc. 4.4 Monitoring and Evaluation In order to monitor, track and evaluate the demonstration project, to constantly adjust the demonstration scheme according to the energy-saving and emissionreduction effect of the demonstration project, and to realize the energy-saving and emission-reduction goal of this demonstration project, the trucks in the demonstration project shall be subject to real-time detection, tracking and monitoring during the implementation of the demonstration project; thus the energy-saving and emissionreduction effect of these trucks can be evaluated on a regular basis (See Annex 9 in the Proposal for Green Freight Project in Guangdong Province for the detailed monitoring and evaluation schemes). (1) Objects subject to monitoring

12 The objects that are subject to monitoring in this project include: The first batch of 350 trucks that participated in the green truck technology demonstration project; The first batch of 40 trucks in the drop and hoop transport demonstration project; The first batch of 160 trucks in the demonstration of the logistics transaction information platform. (2) Detection and monitoring indexes The detection and monitoring indexes mainly include: the running time, travelled distance, freight volume, and fuel consumption of the trucks. (3) Operation record Each single transport operation shall be recorded. The time when the transport volume is changed is regarded as the end of one transport operation and also the start of another one transport operation. When all the transport operations for a day are completed, the truck running log and table 3 shall be filled in. For the hybrid trucks, their power consumptions and electric-power travelled distances on the very day shall be stated in the Remarks Column of table 3. Table 3 Running Situations of the Trucks Basic information (the k th truck) Table No. Record date On-duty driver Rated Tonnage Working time License plate number General operation condition of a whole day Reading of milometer before dispatching Reading of milometer at closing Intraday operating Total transport weight Intraday fuel oil k k k distance S i G i consumption Q i Remark Intraday power consumption KWH; intraday electric mileage km Order of travel Fuel oil consumption Departure point Condition of single operation Destination Operating time Cargo weight Operating mileage

13 5 (4) According to different monitoring indexes, monitoring in this project can be conducted by manually filling in the relevant data and by adopting useful instruments and equipments such as the intelligent system or the GPS, etc. It is necessary to entrust the relevant intermediary agencies and functional departments to make sampling inspection of the freight volume and exhaust emission indexes. When the data filled in and reported by the enterprises are obviously different from the data from the statistics system, the Project Management Office shall entrust the intermediary agencies to make sampling inspection and monitoring. (5) Evaluation, analysis and reporting mechanisms According to the requirements of project study, the main evaluation indexes are as follows: oil consumption of the truck per hundred kilometers, oil consumption of truck per hundred ton kilometers, and decrement of CO2 emission. The Project Management Office shall entrust a qualified monitor unit to evaluate the energysaving and emission-reduction effects of the demonstration trucks on a regular basis. The monitor unit shall issue a monitoring report every month. The Project Management Office will collect and sort out the reports from the monitor unit every six months and submit the sorted reports to the World Bank. 5. Measures for Guaranteeing the Environmental Security 5.1 Arrangement of Relevant Organizations Implementation of the measures for guaranteeing the environmental security involves several units, including the Project Management Office (PMO), the Project Implementation Unit, the Product Suppliers and the Monitoring & Evaluation Unit, among which the Project Management Office has special environment management personnel who are responsible for checking the environment-involving contents in the

14 implementation scheme of the demonstration project and responsible for the routine monitoring of the environment management in this project. The relationships among the above said involved parties are shown as follows: Product Supplier Providing environmentfriendly installation instructions Selection Project Management Office Project Implementation Unit Providing operation data Evaluation of the emission Feedback the conditions concerning emissions Selection The party in charge of monitoring and evaluation Figure 1 Diagram Showing the Relationships among the Parties Involved in the Implementation of the Environmental Security Guaranteeing Measures 5.2 Task Division 1. Project Management Office The Project Management Office is responsible for investigating the environmental impact of the project; the Project Coordination Group Office is responsible for inspecting, supervising and manage the environment impact of the project. It is necessary to analyze the environmental impact of the project before it is started and to publish the implementation scale and manners of the project as well as the possible pollutant to be generated and the corresponding preventative measures (see the Public Participation & Information Disclosure in section 8 for details). 2. Project Implementation Unit The Project Implementation Unit shall operate, use, repair and maintain the products strictly according to the product descriptions, operation specifications and installation & use guide. 3. Product Supplier Product Suppliers shall provide the product descriptions, operation specifications and installation & use guide. 4. Monitoring & Evaluation Unit

15 The Monitoring & Evaluation Unit shall evaluate the emission behaviors of the demonstration trucks on a regular basis according to the data provided by the Project Implementation Unit; it shall also give necessary feedbacks to the Project Management Office. 5.3 Training In order to enhance the environmental protection awareness and energy saving skills of the road freight market subjects, during the project demonstration phase, the Product Supplier shall train the enterprises participated in the product demonstration project in order to teach them the product operation & application technologies. During the implementation of the project, the Product Supplier shall work out different training contents and modes for different training objects; the training contents shall include environmental protection, energy saving & emission-reduction, relevant policies, laws and regulations, and advance experiences both domestic and abroad. It is necessary to work out training materials and the energy-saving driving guide; with the training materials, the Project Management Office will carry out energy-saving & emission-reduction training to the management personnel in the road freight industry, the road freight enterprises and the drivers. The Environment Management Manual of this project should be incorporated into the training contents. It is predicted that the training in this project will cost about USD 1,013,000 (see Annex 7 in Proposal for Green Freight Project in Guangdong Province for detailed training scheme). 6. Analysis on Environmental Benefits This project has three sub-projects; during the demonstration period, this project can realize the environmental benefit of directly reducing165,989 tons of CO2e emission each year. Among the 165,989 tons, 38,650 tons are reduced through the demonstration of green freight truck technology, 55,270 tons of reduction volume is realized through the drop and hoop transport project, and 72,069 tons of emission

16 reduction is realized through the logistics transaction information platform. (see Annex 10 in Proposal for Green Freight Project in Guangdong Province for the analysis on concrete environmental benefits). 7. Public Participation and Information Disclosure The green freight international grant project is the first demonstrative grant project which is under the charge of the World Bank and introduces advanced technologies from other countries in order to improve the energy saving performance of the trucks. In order to fully absorb the views and suggests of the interest groups on this project, to avoid or minimize the adverse environmental and social impacts generated by this project, and to ensure the quality of this project and the smooth implementation of the relevant reforms, during the design and implementation processes of this project, public participation and information disclosure will be carried out according to the relevant regulations or requirements by Chinese governments and the World Bank. 7.1 Regulations Made by Chinese Government According to the Notice Concerning the Interim Measures of Public Participating in Environmental Impact Assessment issued by State Environmental Protection Administration (State Environmental Protection Administration, in Mar. 2006), this project is not within the category which allows public participation and investigation. 7.2 Requirements of the World Bank As to the A type and B type of investment conducted for future actions, the executive agencies will carry out public participation in order to allow the groups and non-governmental local organizations which are affected by the project to discuss the issues concerning the environmental and social impacts of this project. The executive agencies will take into consideration the views of those affected groups and organization. The executive agencies will carry out the public participation plan and

17 the matters concerned as soon as possible and will provide the relevant materials which are prepared in such a way that they can be easily understood by the public before the implementation of public participation so as to ensure that public participation has material meanings. As to A type and B type projects, the executive agencies will provide the public participants with an outline of the environmental impact evaluation report. Besides, the executive agencies will make public the draft report in order to make the affected groups and non-governmental organization understand the report. According to the classification standard of the World Bank, this project belongs to category C. 7.3 Public Participation In order to ensure the scientific nature and applicability of the project design, according to the requirements of project study, the Project Management Office will carry out various kinds of investigation & research activities to allow the relevant interest groups to participate in. The investigation & research activities take the following concrete forms: Paper questionnaire. Organize personnel to work out questionnaires for the competent departments and enterprises in the road freight industry in order to carry out the early-stage research and investigation for the project design in 21 prefecturelevel cities throughout the province. The research and investigation shall include the following items: the current situation of the road freight industry, problems in promotion of green freight, relevant suggestions and the environmental conditions in different regions. Through timely collecting and sorting out the questionnaires and forms, the reasonable views and suggestions of the people who answer the questionnaires can be fully taken into consideration when doing the project design. On-the-spot investigation. The Project Management Office and the design unit of the project proposal shall carry out on-the-spot investigation in the prefecturelevel cities and enterprises with relatively good development level in energy-saving &

18 emission-reduction road freight in order to get in-depth knowledge about their advanced experience and the obstructions as well as their demands. Symposium. The Project Management Office and the Design Unit of the project will hold special symposiums for the personnel from the Project Coordination Group, the Department of Finance of Guangdong Province, Guangdong Economy and Information Technology Commission, Department of Environmental Protection of Guangdong Province, and other units as well as China Minsheng Banking Corp, Ltd. in order to make in-depth discussion with them on the matters concerning the governmental supportive policies, informatization construction of the road freight industry, the environmental conditions in Guangdong Province, the environmental protection policies and the corresponding measures. Expert consultation. Experts from the World Bank, CAI-Asia, colleges and universities in China and the Trade Association, etc., to carry out special technical consultation, study and discussion on the key points, difficult points, matters need special attentions and the recommended corresponding measures to be taken, as well as other issues. 7.4 Information Disclosure Contents to be Disclosed (1) The current situation of the project. (2) The project proposal (3) The monitoring reports on this project on a regular basis (4) The Environment Management Manual of this project (5) The Environmental Benefit Report of this project (6) Project Evaluation Report (7) Contact ways for the public to feedback information.

19 7.4.2 Date of Information Disclosure (1) The following items shall be disclosed before the project is started regularly: the current situation of the project, the project proposal, the Environment Management Manual of this project, and the contact way for the pubic to feedback information. (2) The monitoring report on this project shall be worked out after the demonstration project is carried out for a period of time; in principle, the latest monitoring results shall be disclosed on a monthly basis. (3) The environmental benefit report of this project shall be worked out after the demonstration project has been carried out for six months; the environmental benefit reports shall be disclosed every six months in principle. (4) The evaluation report of this project shall be worked out and disclosed when this project is completed Mode of Information Disclosure The project information which needs to be disclosed shall be published via some public media such as the Public Website of the Transport Department of Guangdong Province, Guangdong Province Road Transportation Information Management Website, the Green Freight Website on the Public Information Platform of Guangdong Province Road Freight, etc.. Part of the project information may be published on the World Bank website Information Feedback The Project Management Office will collect and sort out the feedback information from the public and will take into consideration the reasonable suggestions.

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